Title
Santos vs. Sibug
Case
G.R. No. L-26815
Decision Date
May 26, 1981
A jeepney accident led to a legal dispute over ownership and liability under a "kabit" arrangement, with courts ruling against the secret owner due to illegal registration practices and jurisdictional interference.

Case Summary (G.R. No. L-26815)

Factual Background and Legal Proceedings

Prior to the accident, Santos was the owner of a passenger jeep but lacked the required public convenience certificate; thus, he transferred ownership of the jeep to Vidad to operate it under Vidad’s certificate. Following the accident, Sibug filed a complaint for damages against Vidad and Gragas in Branch XVII of the Court of First Instance of Manila, resulting in a judgment on December 5, 1963, where both were ordered to pay Sibug damages.

Actions Taken by Santos

On April 10, 1964, the Sheriff of Manila levied upon the motor vehicle registered in Vidad’s name, intending to auction it. Santos filed a third-party claim asserting actual ownership over the jeep, alleging that the registration was merely a means to operate under Vidad's license. Following this, Santos initiated an action for damages and injunction against Sibug, Vidad, and the Sheriff in Branch X, aiming to prevent the public auction of his vehicle.

Judicial Actions and Orders

On May 11, 1964, Branch X issued a Restraining Order against the Sheriff, which was deemed wrongful as it violated Section 17 of Rule 39 of the Rules of Court, indicating that a Sheriff’s authority cannot be restrained by another branch of the same court. Branch X subsequently affirmed Santos's ownership, ordering the return of the vehicle and awarding damages against Sibug.

Challenges and Appeals

Sibug appealed the judgment from Branch X, asserting that Branch X lacked jurisdiction to intervene in the judgment of Branch XVII. In November 1965, Branch X authorized immediate execution, considering its jurisdiction to restrain a sale of a vehicle not belonging to the judgment creditor. Ultimately, the Court of Appeals intervened, nullifying Branch X's decision, stating that it improperly encroached on the jurisdiction of Branch XVII.

Legal Principles and Rulings

The appellate court maintained that registered ownership is legally significant, indicating that third-party claims of ownership must be vindicated in a separate action rather than interfering with another court's pro

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