Case Digest (G.R. No. 76322)
Facts:
Foto-Quick, Inc. v. Hon. Nicolas P. Lapena, Jr., G.R. No. 76322, March 11, 1991, Supreme Court Second Division, Padilla, J., writing for the Court. Petitioner is Foto-Quick, Inc.; respondents are Hon. Nicolas P. Lapena, Jr., Provincial Sheriff of Rizal (as court officer executing process) and private respondent Rustico Claveria, plaintiff in the underlying action.On 23 April 1978, private respondent Claveria filed with the Philippine Patent Office a petition to cancel Certificate of Registration No. 24381 for the trade name "FOTO-QUICK." While that administrative proceeding was pending, Claveria on 1 June 1978 sued Foto-Quick, Inc. in the Regional Trial Court (RTC) of Pasig for unfair competition and secured a preliminary injunction (Civil Case No. 29674). After trial the RTC (Branch 167) rendered judgment on 17 March 1986 dismissing Claveria's complaint, lifting the preliminary injunction, and awarding attorney's fees of P20,000 to the defendant; the defendant's counterclaim for damages was dismissed.
Claveria moved for reconsideration and/or new trial on 4 April 1986, invoking newly discovered evidence — a 14 January 1985 Patent Office decision cancelling the registration. The RTC granted the motion for new trial, and on 26 September 1986 entered a new judgment finding Foto-Quick guilty of unfair competition, awarding P100,000 actual/compensatory damages, P50,000 attorneys' fees, making the earlier preliminary injunction permanent, and ordering costs against the defendant.
Claveria then filed a motion for execution pending appeal alleging (A) information that Foto-Quick was transferring assets to frustrate execution, (B) the debtor's assets consisting mainly of depreciated, broken or unserviceable photo-vending machines that would be worthless if execution were delayed, and (C) that the debtor had no visible operations and was in danger of insolvency. Foto-Quick opposed the motion and timely appealed the 26 September resolution. On 23 October 1986 the trial judge granted execution pending appeal conditioned on posting by Claveria of a P150,000 bond; a writ of execution issued 29 October 1986 and the deputy sheriff seized seven machines on 30 October 1986.
Following the seizure, a third-party claim was filed by Virginia Ong (treasurer of Island-Photo Center) asserting ownership of the machines. Foto-Quick sought relief in the Supreme Court by petition for certiorari under Rule 65, alleging grave abuse of discretion by the trial judge and praying for a writ of preliminary injunction/TRO. On 17 November 1986 the Court issued a Temporary Restraining Order enjoining enforcement of the 23 October 1986 order. The ...(Pro-only)
Issues:
- Did the respondent judge commit grave abuse of discretion amounting to lack or excess of jurisdiction in granting execution pending appeal?
- Was the special civil action of certiorari under Rule 65 a proper remedy to attack the order for execution pending appeal?
- Does the posting and approval of a bond, by itself, constitute a sufficient reason to o...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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