Case Summary (G.R. No. 72005)
Background of the Case
Sycwin Coating & Wires, Inc. filed a complaint for the collection of a monetary sum against Varian Industrial Corporation in the Regional Trial Court of Quezon City. During this litigation, Sycwin obtained an attachment on certain properties of Varian, which was subsequently lifted when Varian posted a counterbond of P1,400,000. The trial court ruled in favor of Sycwin, awarding it P1,401,468 plus additional damages, and Varian appealed the decision. Sycwin pursued a motion for execution pending appeal, which was granted, but the writ of execution came back unsatisfied due to Varian's failure to comply with the court’s orders.
Legal Proceedings
Upon receiving the court's order for execution pending appeal, Sycwin petitioned for the surety, Philippine British Assurance Co., to pay the value of the bond. The petitioner, Philippine British Assurance Co., subsequently filed a comment in response to this motion. The Intermediate Appellate Court, in its resolution on September 12, 1985, granted Sycwin's petition, resulting in the filing of the present petition for review.
Issues Presented
The central legal issue at stake is whether an order for execution pending appeal can be enforced against the counterbond posted by the petitioner. Sycwin contended that the issuance of certiorari without a prior motion for reconsideration is impermissible, while the petitioner argued for the urgency and appropriateness of this course of action given the nature of the case.
Examination of the Counterbond and Applicable Law
The court reviewed the provisions of Sections 5, 12, and 17 of Rule 57 of the Revised Rules of Court, emphasizing that the counterbond was designed to ensure payment for "any judgment" that the attaching creditor might recover. The Supreme Court concluded that the lack of limitation within the counterbond's application implies that an execution stemming from either a final judgment or an appealable decision, if returned unsatisfied, would indeed be charged against the counterbond.
Conclusion on the Applicability of t
...continue readingCase Syllabus (G.R. No. 72005)
Case Background
- The case revolves around a Petition for Review on Certiorari filed by Philippine British Assurance Co., Inc. against the Resolution of the Intermediate Appellate Court dated September 12, 1985.
- The core issue is whether an order of execution pending appeal of a judgment can be enforced against a counterbond.
- A temporary restraining order was issued by the Supreme Court on September 25, 1985, to prevent the enforcement of the order from the Intermediate Appellate Court.
Procedural History
- Sycwin Coating & Wires, Inc. filed a complaint against Varian Industrial Corporation for the collection of a sum of money in the Regional Trial Court of Quezon City.
- During this suit, Sycwin attached properties of Varian after posting a supersedeas bond. Varian posted a counterbond amounting to P1,400,000.00 through Philippine British Assurance Co., Inc. to release the attached properties.
- On December 28, 1984, the trial court ruled in favor of Sycwin, ordering Varian to pay a total of P1,401,468.00 plus additional damages and costs.
- Varian appealed the decision, and Sycwin subsequently petitioned for execution pending appeal, which was granted by the Intermediate Appellate Court despite Varian’s failure to respond.
Key Legal Issues
- The primary legal question is whether the surety (Philippine British Assurance Co., In