Case Digest (G.R. No. 255252)
Facts:
This case involves petitioner Governor Gwendolyn Garcia-Codilla and respondent Hongkong and Shanghai Banking Corp., Ltd. (HSBC). Garcia, doing business as GGC Enterprises and GGC Shipping, a sole proprietorship, availed a credit facility with HSBC via Documentary Credit Line No. DPCCEB960015 dated November 19, 1996, for USD 900,000.00 to finance the purchase of a cargo barge from Sam Whan Phils. Trading Co. Ltd. HSBC was obligated to pay in five installments from October 15, 1997 to October 15, 1999. Garcia secured the credit with a real estate mortgage, a trust receipt, and a surety agreement but failed to pay HSBC for installments made. The debt as of March 31, 2020 stood at USD 720,000 plus interest and attorney's fees.HSBC filed a complaint before the RTC for sum of money with prayer for preliminary attachment, resulting in a writ and judgment ordering Garcia and her husband to pay HSBC. The Court of Appeals affirmed with modifications including lowered damages and interes
Case Digest (G.R. No. 255252)
Facts:
- Background of the Transaction and Credit Facility
- Petitioner Governor Gwendolyn Garcia-Codilla (Garcia), doing business as GGC Enterprises and GGC Shipping (GGC), a sole proprietorship, availed of a credit facility with respondent Hongkong and Shanghai Banking Corp., Ltd. (HSBC).
- On November 19, 1996, HSBC opened Documentary Credit Line No. DPCCEB960015 for USD 900,000.00 in favor of Sam Whan Phils. Trading Co. Ltd (Sam Trading), to finance GGC's purchase of a light cargo transit barge.
- HSBC was obligated to pay Sam Trading the purchase price in five installments of USD 180,000.00 each from October 15, 1997, to October 15, 1999.
- To secure payment, Garcia, with her husband's consent, executed a Real Estate Mortgage on two parcels of land, a Trust Receipt over the barge, and a General Surety Agreement in favor of HSBC.
- Non-Payment and HSBC's Actions
- Garcia and GGC failed to reimburse HSBC for payments paid to Sam Trading.
- HSBC terminated Garcia and her husband’s dollar time deposit of USD 200,000.00, applied proceeds to the outstanding obligations, and demanded delivery of the barge, which was unheeded.
- As of March 31, 2020, Garcia’s outstanding debt to HSBC was USD 720,000 plus interest of USD 103,522.91.
- Litigation History
- HSBC filed a Complaint for sum of money with prayer for preliminary attachment against Garcia and her husband docketed as Civil Case No. 00-863 before the RTC of Makati City.
- The RTC issued the writ of preliminary attachment and declared Garcia and her husband in default for failure to file responsive pleading.
- RTC Decision dated December 21, 2001, ruled in favor of HSBC awarding:
- USD 890,347.92 actual damages;
- PHP 1,000,000 as moral and exemplary damages;
- PHP 960,765.48 as actual costs.
- On appeal, CA in CA-G.R. CV No. 75861 affirmed RTC’s ruling with modifications reducing damages and deleting moral damages.
- Garcia’s motion for reconsideration was denied and she appealed to the Supreme Court.
- Supreme Court's Minute Resolution on August 22, 2012, denied the petition but modified the costs and interest reckoning date.
- Denial of motion for reconsideration by SC on February 25, 2013 made the ruling final and executory.
- Execution Proceedings
- HSBC filed a motion for issuance of a Writ of Execution which the RTC granted on September 20, 2013, ordering collection of USD 1,877,148.50 plus costs from Garcia and her husband.
- Sheriffs attempted personal service of the Writ and Notice of Demand to Pay to Garcia at Batasan Pambansa Complex, Quezon City but failed twice; on the third attempt copies were left with her Protocol Officer and Head of Operations.
- HSBC filed an urgent ex-parte motion for the issuance of an Alias Writ of Execution on February 22, 2018, granting this on February 23, 2018, directing the collection of USD 2,825,636.79 plus costs.
- Garcia moved to quash the Alias Writ asserting violation of due process since the motion was not set for hearing; RTC denied the motion and its reconsideration.
- Garcia filed a petition for certiorari with the Court of Appeals (CA) which denied her petition on June 30, 2020 and also denied her motion for reconsideration on January 7, 2021.
Issues:
- Whether the Court of Appeals erred in finding no grave abuse of discretion on the part of the RTC in issuing the Alias Writ of Execution without a hearing.
- Whether Garcia’s constitutional right to due process was violated by the issuance of the Alias Writ without the opportunity to oppose the motion or participate in computation of obligations.
- Whether the service of the Writ of Execution and Alias Writ was proper.
- Whether the Alias Writ should have stated the facts and law on which it was based pursuant to Article VIII, Section 14 of the 1987 Constitution.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)