Case Digest (G.R. No. 148980)
Facts:
On June 16, 1994, PCI Leasing & Finance, Inc., Petitioner, loaned Spouses George M. Dai and Divina Dai, Respondents P3,352,892 evidenced by a promissory note secured by a chattel mortgage over the fishing vessel F/B Sea Doll; respondents defaulted on installments and petitioner filed an action for replevin (CEB-16691) on October 27, 1994 seeking seizure or, alternatively, judgment for the indebtedness and attorneys' fees. Petitioner extrajudicially foreclosed and bought the vessel at public auction on January 13, 1995; the RTC dismissed both parties' damage claims in a February 3, 1997 decision, petitioner later filed a deficiency-judgment suit (CEB-22585) on August 26, 1998 which the RTC dismissed as barred by prior judgment and the Court of Appeals affirmed; the Supreme Court denied petition for review.
Issues:
- Did the judgment in the replevin case bar a subsequent action for deficiency judgment?
- Does *Section 9, Rule 60* of the 1997 Rules of Civil Procedure preclude a court in a replevin action from adjudicating a deficiency after foreclosure?
Ruling:
Petitioner's petition was denied. The Court held that the subsequent suit for deficiency judgment was barred by res judicata because the earlier replevin action contained an alternative in personam prayer for payment that could have encompassed the deficiency and was finally adjudicated; costs were imposed on petitioner.
Ratio:
The Court explained that replevin is a mixed action—in rem as to recovery of specific chattels and in personam as to damages or alternative monetary relief—so a replevin judgment may embrace claims for value or payment. Because petitioner had foreclosed before pre-trial yet failed to raise the deficiency claim in the replevin case, the matters were such as could have been adjudicated therein; under Section 49, Rule 39 (1964 Rules), now Section 47, judgments are conclusive as to matters actually decided or which could have been raised, thus barring the later suit under the requisites of res judicata.
Doctrine:
- *Res judicata* bars a subsequent action when there is a final judgment on the merits, by a court with jurisdiction, and identity of parties, subject matter, and cause of action.
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