Title
Cordero vs. Go
Case
G.R. No. 149754
Decision Date
Sep 17, 2002
Trial court lost jurisdiction after appeal perfection; execution pending appeal set aside by Court of Appeals, affirmed by Supreme Court.
breach of contract
appellate court
appeal
A

Case Digest (G.R. No. 149754)

Facts:

  • Judgment and Parties
    • On May 31, 2000, the Regional Trial Court (RTC), Branch 85 in Quezon City, rendered a default judgment in Civil Case No. Q-98-35332 entitled Mortimer F. Cordero v. Alan G. Go (doing business as ACG Express Liner) et al., for breach of contract awarding damages amounting to P19,291,352.04.
    • The parties involved were:
      • Petitioner: Mortimer F. Cordero.
      • Respondents: Alan G. Go, Felipe Landicho, Vincent Tecson, and Tony Robinson.
  • Service and Initial Motions
    • Petitioner received a copy of the judgment on June 19, 2000, while respondents received theirs on June 29, 2000.
    • Prior to receiving the judgment copy, on June 14, 2000, petitioner filed a motion for execution pending appeal.
    • Respondents opposed this motion by filing a motion for a new trial, alleging that their default appearance at the pre-trial conference was due to their counsel’s negligence.
  • RTC’s Orders and Subsequent Court Actions
    • On July 28, 2000, the RTC granted petitioner’s motion for execution pending appeal and denied respondents’ motion for a new trial.
      • The order cited several reasons including:
        • An admission by defendants’ counsel of an impending bankruptcy proceeding against Tony Robinson, which might render the judgment ineffective.
ii. The dire financial needs arising from a valid, binding obligation. iii. Evidence that respondents were allegedly attempting to evade judgment by disposing of or encumbering their properties.
  • Respondents filed a motion for reconsideration on August 1, 2000, which the trial court denied on August 18, 2000.
  • On August 21, 2000, a writ of execution was issued, resulting in the garnishment of respondents’ bank accounts and the levy of six parcels of land belonging to respondent Go.
  • A notice of sale of the levied properties was subsequently issued on November 8, 2000, with the sale scheduled for December 14, 2000.
  • Execution was stayed on September 29, 2000, due to a temporary restraining order (TRO) issued by the Court of Appeals (CA) in CA G.R. SP No. 60354.
  • Respondents filed a notice of appeal on August 8, 2000. Initially, the RTC denied due course to this appeal due to non-payment of docket fees but later reconsidered and admitted the appeal on November 29, 2000 (CA G.R. CV No. 69113).
  • Additional Petitioner Motions and Further Developments
    • Petitioner filed several motions, including:
      • Ex-Parte Motion for Break Open Order.
      • Ex-Parte Motion for Encashment of Check.
      • Ex-Parte Motion to Proceed.
      • Ex-Parte Motion to Appoint Cebu City Sheriff Jessie A. Belarmino as Special Sheriff.
    • Due to the TRO and the loss of jurisdiction after the perfection of respondents’ appeal, the RTC canceled its earlier order for the release of garnished funds and the notice of sale.
    • On December 18, 2000, the RTC denied petitioner’s motion for reconsideration regarding the order giving due course to respondents’ appeal and directed the parties to reiterate the issues before the CA.
  • Court of Appeals Action
    • On January 29, 2001, the Court of Appeals set aside the RTC’s order of execution pending appeal.
    • The CA held that:
      • Although the RTC had jurisdiction when it initially granted the motion for execution pending appeal, it lost said jurisdiction upon perfection of the appeal and the elevation of the case records to the CA.
      • The TRO, which was still in force until its expiration on December 4, 2000, enjoined the enforcement of the RTC’s order.
      • As a result, actions taken by the RTC on execution pending appeal, even if temporarily valid, were moot after the appellate intervention.
    • Petitioner then appealed, asserting that the RTC retained residual jurisdiction when his motion was filed and that the CA improperly granted due course to respondents’ appeal.
    • Ultimately, the CA rejected petitioner’s arguments after reviewing the procedural history and technical allegations related to respondents’ petition.

Issues:

  • Jurisdiction and Timing
    • Whether the RTC retained jurisdiction to order execution pending appeal given that:
      • Petitioner’s motion was filed within the 15‑day appeal period.
      • The RTC was still in possession of the case records at the time of the filing.
    • Whether the subsequent perfection of respondents’ appeal automatically terminated the RTC’s jurisdiction over the case.
  • Effect of the Temporary Restraining Order (TRO)
    • Whether the TRO issued by the CA effectively enjoined the implementation of execution pending appeal.
    • Whether the expiration of the TRO could revive the RTC’s authority to execute its earlier order.
  • Procedural and Technical Defects in Respondents’ Petition
    • The impact of alleged defects such as:
      • Improper service of the petition.
      • Non-compliance with Rule 13 requiring a written explanation for not resorting to personal service.
      • The lack of verification in the petition.
    • Whether these defects justified not giving due course to respondents’ appeal.
  • Discretionary Execution and Pending Motions
    • Whether the RTC’s exercise of discretionary power to order execution pending appeal was proper given the circumstances.
    • Whether the multitude of pending motions filed by petitioner should have been ruled upon by the RTC or deferred to the CA after loss of jurisdiction.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)
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