Case Digest (G.R. No. L-25921)
Facts:
Vanguard Assurance Corporation v. Hon. Court of Appeals and Jalwindor Manufacturing, Inc., G.R. No. L-25921, May 27, 1975, Supreme Court First Division, Esguerra, J., writing for the Court.
Petitioner Vanguard Assurance Corporation (the surety) seeks review of the Court of Appeals' dismissal of its appeal from a judgment enforcing liability on a counterbond given in an attachment proceeding commenced by respondent Jalwindor Manufacturing, Inc. against defendant Felipe Hernandez in the Court of First Instance of Manila. Jalwindor sued Hernandez for P30,000 and obtained a writ of preliminary attachment after filing the required bond.
On May 28, 1964 Hernandez moved to dissolve the attachment and posted a counterbond in the amount of P30,000 with Vanguard Assurance Corporation as surety; the counterbond bound Hernandez and the surety jointly and severally to redeliver the released property or to pay its value if plaintiff recovered judgment. The trial court approved the counterbond and lifted the attachment.
Thereafter the parties entered into a court‑approved compromise in which Hernandez agreed to pay P26,000 in three monthly installments; the compromise expressly provided that the counterbond would remain in full force, and the court rendered judgment on the compromise on October 28, 1964. Execution issued on December 22, 1964 but only P5,000 was realized; the balance of P21,000 plus costs remained unpaid.
Jalwindor demanded payment from Vanguard as surety; demand was ignored, and Jalwindor moved in the trial court under Section 17 of Rule 57 of the Rules of Court to recover the unpaid balance from the counterbond after a notice and summary hearing. Vanguard answered by asserting two defenses: (1) that the proper remedy to fix the surety’s liability was a supplemental complaint filed before the judgment became final; and (2) that Vanguard never became liable because the property had not, in fact, been attached. After summary hearing the trial court ordered the surety to pay P21,000.
Vanguard appealed to the Court of Appeals. Before briefs were filed Jalwindor moved to dismiss the appeal; the Court of Appeals granted the motion and, in its December 17, 1965 decision, dismissed the appeal...(Subscriber-Only)
Issues:
- Is Jalwindor’s claim on the counterbond barred for failure to file a supplemental pleading before the finality of the judgment that fixed Hernandez’s liability?
- Did the Court of Appeals err in dismissing Vanguard’s appeal before the parties filed briefs and were h...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)