Title
Banco Filipino Savings and Mortgage Bank vs. EspiNo., Jr.
Case
G.R. No. 162922
Decision Date
Jan 31, 2007
Dispute over Banco Filipino's eviction for unpaid rent; Supreme Court nullified execution of earlier ruling, citing subsequent resolution absolving rent payment but upheld eviction due to lease expiration.
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Case Digest (G.R. No. 162922)

Facts:

    Background and Parties

    • Banco Filipino Savings and Mortgage Bank (petitioner) and Tala Realty Services Corporation (private respondent) entered into several similarly-worded contracts of lease for branch office properties.
    • The dispute centered on the alleged non-payment of rent for the leased properties.
    • The case involved a complaint for ejectment filed by Tala Realty Services Corporation against Banco Filipino Savings and Mortgage Bank before the Municipal Trial Court (MTC) in Iloilo City, Branch 2.
    • Public respondent involved in the case was Hon. Amalik P. Espinosa, Jr., Presiding Judge of the MTC in Iloilo City, Branch 2.

    Court Proceedings and Decisions in Lower and Higher Courts

    • In Civil Case No. 51-95, Tala Realty Services Corporation sought to eject the Bank from its branch in Iloilo City for non-payment of rent.
    • The Third Division of the Supreme Court rendered a Decision on June 25, 2001, ordering:
    • The petitioner to vacate the subject premises.
    • The petitioner to pay a monthly rental of P21,100 from April 1994 up to the time of vacation.
    • This decision was modified by a Resolution on July 24, 2002, which imposed an additional six percent (6%) annual interest on the monthly rental for the period in question.
    • A motion for reconsideration was filed by the petitioner regarding the July 24, 2002 Resolution.
    • Pending the motion for reconsideration, a separate Supreme Court En Banc decision on November 22, 2002 (in a similar case involving the Bank’s branch in Malolos, Bulacan) held:
    • The Bank was not liable for unpaid rentals because both parties were in pari delicto.
    • The expiration of the 20-year lease contract gave Tala Realty Services Corporation the right to eject the Bank on the ground of expiration of the contract.
    • On September 3, 2003, the petitioner's motion for reconsideration in G.R. No. 132051 was granted, applying the En Banc pronouncement that:
    • The Bank was not liable to pay rent during the disputed period.
    • Tala Realty Services Corporation should not be allowed to collect said rental payments.
    • Despite these developments, a motion for execution was later filed by Tala Realty Services Corporation with the MTC, seeking enforcement of the June 25, 2001 Decision.
    • At a hearing on February 26, 2004:
    • The petitioner verbally opposed the motion, asserting that the June 25, 2001 Decision had already been superseded by later resolutions.
    • The presiding judge (public respondent) granted the motion for execution based on the June 25, 2001 Decision.
    • Subsequent motions for reconsideration by the petitioner challenging the execution order were denied by the public respondent.
    • The writ of execution was issued on April 6, 2004, leading to the eviction of Banco Filipino Savings and Mortgage Bank from its Iloilo branch.

    Jurisprudential Principles and Procedural Context

    • The case raised questions on whether a court or judge may order the execution of a decision that has not become final due to subsequent modifications.
    • It involved the interpretation of Section 1 of Rule 39 of the Rules of Court regarding the execution of judgments.
    • Emphasis was placed on the concept of jurisdiction, overstepping legal authority, and grave abuse of discretion in the context of judicial execution orders.
    • The proper specification of amounts due under a writ of execution, as required by Rule 39, Section 8(e), was also contested.

Issue:

    Jurisdiction and Authority

    • Whether the public respondent, Hon. Amalik P. Espinosa, Jr., acted without or in excess of his jurisdiction by ordering the execution of the June 25, 2001 Decision in G.R. No. 132051.
    • Whether the order for execution was valid given that subsequent resolutions (July 24, 2002 and September 3, 2003) had modified and set aside key elements of the June 25, 2001 Decision.

    Grave Abuse of Discretion

    • Whether public respondent’s action in granting the motion for execution amounted to a grave abuse of discretion.
    • Whether the public respondent’s decision was arbitrary, capricious, or whimsical given the petitioner’s arguments and the changes in the resolution of the case.

    Procedural Due Process

    • Whether the petitioner was deprived of an adequate opportunity to be heard regarding the motion for execution.
    • Whether the dismissal of the petitioner’s written opposition and motion for reconsideration violated procedural rules or principles of due process.

    Specificity in the Execution Order

    • Whether the failure to specify the amount due as required by Rule 39, Section 8(e) constituted an additional ground of invalidity in the execution order.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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