Title
Supreme Court
City Government of Tacloban vs. Court of Appeals
Case
G.R. No. 221554
Decision Date
Feb 3, 2021
Tacloban City's withdrawal of ratification of a compromise agreement for land acquisition was invalid; the agreement, approved by the court, remained enforceable, and res judicata barred relitigation.

Case Summary (G.R. No. 259469)

Factual Background

The Spouses Sacramento owned parcels of land in Barangay Sto. Niño, Tacloban City, specifically Lot No. 4144. The City Government of Tacloban sought to acquire a portion of Lot No. 4144 for use as an access road to the city’s dumpsite. On September 8, 2008, the parties entered into a Compromise Agreement which stipulated the payment of compensation for the land and included provisions for the dismissal of the case with prejudice. The RTC approved the Compromise Agreement on September 18, 2008, and it was ratified by the Sangguniang Panlungsod on September 24, 2008.

Withdrawal of Ratification

However, on November 19, 2008, the Sangguniang Panlungsod issued a resolution withdrawing its ratification of the Compromise Agreement, rendering it null and void. The Spouses Sacramento then moved for the enforcement of the agreement, which the RTC initially denied due to the withdrawal of ratification. Following a motion for reconsideration, the RTC ordered enforcement of the Compromise Agreement on June 4, 2009, resulting in the issuance of a Writ of Execution on July 1, 2009.

Legal Proceedings and Rulings

The City Government of Tacloban challenged the RTC's enforcement of the Compromise Agreement through a petition for certiorari (CA-G.R. SP No. 04526), but the Court of Appeals dismissed the petition, affirming the validity of the Writ of Execution. The decision declared that a compromise agreement, once judicially approved, is immediately executory and has the effect of res judicata.

Subsequent Attempts to Quash the Writ

The City Government of Tacloban later attempted to quash the Writ of Execution and lift related notices of attachment but faced further opposition when the RTC continued to enforce the writ. A new petition for review on certiorari was filed as CA-G.R. SP No. 07675, where the City Government contested Judge Lilagan’s implementation of the Writ of Execution, which had previously been quashed.

Court of Appeals' Decision

On April 30, 2015, the Court of Appeals dismissed the second petition based on the doctrine of res judicata, indicating overlapping issues and parties concerning the prior case (CA-G.R. SP No. 04526). The court emphasized that all necessary elements for res judicata were present, given that both cases involved the same parties and similar subjects.

Supreme Court Ruling

Upon appeal, the Supreme Court found the petition unmeritorious, upholding the application of the compromise agreement under the principles of res judicata. The Court reiterated that the compromise agreement, once approved judicially, becomes binding and executory, thus the City Government could not evade compliance due to changed positions by the city council.

Legal Principles Applied

The case elucidated several

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