Title
Jalandoni vs. Philippine National Bank
Case
G.R. No. L-47579
Decision Date
Oct 9, 1981
Jalandoni's heirs won as PNB's levy expired after 10 years; Supreme Court canceled the stale embargo, upholding judgment enforcement limits.

Case Summary (G.R. No. L-47579)

Applicable Law

This case is analyzed under the provisions of the 1976 Civil Code of the Philippines, which governs the rules of prescription and enforcement of judgments, particularly Articles 1144, 476, and 478. Additionally, Rule 39 of the Revised Rules of Court, particularly Section 6, addresses the execution of judgments.

Relevant Facts

On March 31, 1959, a judgment was rendered against Eduardo Jalandoni, ordering him to pay the Philippine National Bank a sum of PHP 63,297.53, along with interest and attorney's fees. Following the entry of this judgment, and within the prescribed five-year period, a levy was undertaken on March 9, 1964, against a specific parcel of land owned by Jalandoni. Despite the levy, no execution sale was conducted, as the bank failed to initiate this step.

Actions Taken

On April 22, 1974, over ten years post-levy, Jalandoni's heirs filed a petition for the cancellation of the levy, arguing it had become ineffective due to the passage of time without an execution sale. The bank opposed this petition, asserting the validity of the levy. In subsequent proceedings, the trial court ruled that Jalandoni needed to seek a quash of the writ of execution from the Manila court before pursuing his petition.

Court Decisions

On June 15, 1977, the trial court dismissed the heirs' complaint to quiet title, leading to an appeal under Republic Act No. 5440. The heirs contended that the levy could not be enforced after the ten-year enforcement period had expired, relying on the precedent set in Ansaldo vs. Fidelity and Surety Co. of the P.I., where it was established that levied properties must be sold within the ten-year period for enforcing a judgment.

Jurisprudential Basis

The court's analysis referenced the Ansaldo ruling, emphasizing that execution involves both levy and sale. It reinforced that the right to enforce a judgment through execution must be acted upon within the set time frame. The distinction was made between the validity of a levy and the necessity of conducting a sale within the ten-year limitation for enforcement.

Negligence and Laches

In the present case, the Philippine National Bank's delay in conducting an execution sale was characterized as negligence, rendering the levy ineffectual. The essence of legal doctrines establishing prescription and laches underscores the importance of due diligence by creditors in enforcing their ri

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