Case Digest (G.R. No. L-62943)
Facts:
In Municipality of Makati v. Court of Appeals et al. (G.R. Nos. 89898-99, October 1, 1990), petitioner Municipality of Makati initiated expropriation proceedings on May 20, 1986 (Civil Case No. 13699, RTC Makati, Branch CXLII) against private respondents Admiral Finance Creditors Consortium, Inc., Home Building System & Realty Corporation and Arceli P. Jo for a parcel of land and improvements in San Antonio Village, Makati (TCT No. S-5499). Pursuant to Presidential Decree No. 42, Makati opened PNB Buendia Branch Account No. 265-537154-3 with P417,510.00. After appraisal hearings, the RTC fixed just compensation at P5,291,666.00 by decision of June 4, 1987, ordering payment less P338,160.00 advanced earlier. The judgment became final; private respondent secured a writ of execution, and sheriff Pastrana garnished the PNB account on January 14, 1988, only to find a “hold code” placed thereon. Private respondent moved to enforce the writ; Makati sought to lift the garnishment, claimCase Digest (G.R. No. L-62943)
Facts:
- Initiation and valuation of expropriation proceedings
- On May 20, 1986, the Municipality of Makati filed Civil Case No. 13699 for eminent domain against Admiral Finance Creditors Consortium, Home Building System & Realty Corp., and Arceli P. Jo over a parcel at Mayapis St., San Antonio Village, Makati (TCT No. S-5499). A P417,510 deposit was made into PNB Buendia Branch (Acct. S/A 265-537154-3) pursuant to Presidential Decree No. 42.
- After hearings and appraisal reports, the RTC rendered a decision on June 4, 1987 fixing the property’s value at P5,291,666.00 and ordering payment of the balance (after crediting an earlier P338,160.00 advance).
- Garnishment, title changes, and compromise agreement
- Following finality of the decision, private respondent obtained a writ of execution and writ of garnishment (Jan. 14, 1988) served on PNB. A “hold code” prevented immediate disbursement.
- Petitioner moved to lift the garnishment, while private respondent pressed for bank compliance.
- Petitioner informed the court that Philippine Savings Bank (PSB) had acquired title via extrajudicial foreclosure (Apr. 20, 1987). PSB and private respondent then entered into a compromise to split the compensation.
- On Sept. 8, 1988, the RTC approved the compromise, ordered PNB to release P4,953,506.45 to PSB, and directed PSB and private respondent to convey the property to Makati.
- Post-judgment motions, contempt, and appellate proceedings
- Petitioner’s motion for reconsideration was denied (Dec. 21, 1988); the RTC held the PNB manager in contempt for non-compliance.
- Separate certiorari petitions by petitioner and the bank manager were dismissed by the Court of Appeals (June 28, 1989), upholding RTC’s authority to levy on the expropriation account.
- The Supreme Court issued a temporary restraining order on Nov. 20, 1989 enjoining enforcement of the RTC’s Dec. 21 order.
- In this petition, Makati alleged for the first time two PNB accounts:
- Acct. No. 265-537154-3 — exclusively for expropriation, balance P99,743.94.
- Acct. No. 263-530850-7 — municipal funds for statutory obligations, balance P170,098,421.72.
Issues:
- Whether the RTC and the Court of Appeals properly exercised jurisdiction to garnish and levy on petitioner’s expropriation-specific PNB account.
- Whether the funds in petitioner’s second PNB account (earmarked for municipal obligations) are exempt from garnishment and execution absent a specific appropriation ordinance.
- What remedy is available to private respondent or PSB if the municipality refuses or fails to appropriate funds to satisfy a final money judgment.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)