Title
Keater Huang vs. Associated Realty Development Co., Inc.
Case
G.R. No. L-26421
Decision Date
Oct 29, 1966
Plaintiffs appealed exclusion of P206.85 attachment bond premium from costs; Supreme Court ruled it non-taxable under Rule 142, dismissing appeal as frivolous.

Case Summary (G.R. No. L-26421)

Procedural Background

On February 2, 1966, the plaintiffs submitted an "amended bill of costs" requesting that the costs be assessed against the defendant and for an alias writ of execution to satisfy the said costs. The Clerk of the Court issued a "taxation of costs" on March 23, 1966, but excluded a specific sum of P206.85 for the premium on an attachment bond, prompting the plaintiffs to appeal to the judge of Branch III of the Court. The judge denied inclusion of this premium in his order dated May 30, 1966, leading to an appeal by the plaintiffs after a motion for reconsideration was denied.

Appeal and Arguments

The defendant’s counsel filed a motion on September 20, 1966, to dismiss the appeal, arguing that the order in question was not appealable, referencing specific sections of the Revised Rules of Court. The court observed that the order appealed from definitively ruled on certain allowable costs, indicating that the litigation had effectively concluded with regard to that issue.

Court's Ruling on Appealability

The court found the appeal valid, stating that the order was not interlocutory, as it explicitly ruled out the premium on the attachment bond from being considered a recoverable cost. The court reiterated that the order put an end to litigation on that specific matter, allowing for appeal as it concluded the discussion regarding those costs.

Taxability of Attachment Bond Premium

The main legal issue under consideration was whether the premium paid for the attachment bond could be deemed taxable as costs. The court ruled against this contention, citing the specific provisions of section 10 of Rule 142 of the Revised Rules of Court, which delineates the allowable recoverable costs. The costs are explicitly enumerated and do not include premiums paid for bonds as costs recoverable by the winning party.

Relevant Comparisons and Precedents

The court noted the irrelevance of the case Hunter, Kerr & Co. vs. Murray that the appellants relied on, stating that the costs recoverable under the insolvency proceedings cited were not applicable to the current case. The court emphasized the necessity for a clear legal framework for costs recovery, indicating that no provisions within the applicable rules allowed for the recovery of the bond premium in ordinary civil proceedings.

Con

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