G.R. No. 194995 - Montilla, Jr. vs. G Holdings, Inc.

On April 12, 2002, the Regional Trial Court (RTC) of Kabankalan City, Branch 61, issued a decision in Civil Case No. 142 (96-5488) granting Emilio D. Montilla, Jr.'s Demanda for Complimiento de Contrato, Rendecion de Cuentas con Daños y Perjuicios (Compliance for Contracts, Submission of Accounts with Damages).
The RTC declared the rescission of the "1938 Contract" involving several parties, including San Remigio Mines Inc., Real Copper, and Marinduque.
It ordered defendants to render an accounting and deliver specific shares and mining rights to Montilla, Jr. The decision also declared certain contracts null and void based on fraud.
The decision imposed moral and exemplary damages, attorney’s fees, and cost of the suit.

Montilla, Jr. moved for the execution of the judgment, resulting in the issuance of a writ of execution.
A Sheriff’s Report indicated that the properties involved were no longer owned by Marinduque Mining and Industrial Corporation (MMIC), but by G Holdings, Inc. (GHI), which bought the properties through a foreclosure sale.
Montilla, Jr. then moved for an amended writ of execution to include properties belonging to San Remigio Mines Inc. and its assigns, including GHI.
The RTC denied the motion on July 9, 2004, ruling that GHI was not a party to the original case and enforcing the decision against it would violate due process and unlawfully modify the final judgment.
Montilla, Jr. filed a motion for reconsideration, which was denied in November 2004.

Montilla, Jr. filed a petition for certiorari to the CA contesting the RTC’s amended order.
The CA denied the petition in a decision dated July 30, 2010, affirming the RTC’s ruling that GHI, not being a party, could not be bound by the judgment. The CA rejected Montilla’s assertion that GHI and MMIC were the same entity.
Montilla moved for reconsideration, arguing that GHI was a transferee pendente lite and a mere alter ego of Maricalum, warranting piercing of the corporate veil. The CA denied the motion in December 2010.

Montilla, Jr. elevated the case to the Supreme Court via a Petition for Review on Certiorari.
He reiterated that GHI, by acquiring Maricalum’s mining claims and assets, succeeded to the liabilities of Maricalum and thus should be bound by the judgment.
He maintained the argument that GHI was a mere transferee pendente lite, having actual and constructive knowledge of the claims.

Whether the Court of Appeals erred in affirming the RTC’s denial of Montilla, Jr.’s motion for the issuance of an amended writ of execution to include G Holdings, Inc., a non-party to the original case.