Title
Tay Chun Suy vs. Court of Appeals
Case
G.R. No. 91004-05
Decision Date
Aug 20, 1992
Dispute over vessel Sta. Clara I: Tay Chun Suy, as auction purchaser, contested writ of attachment by Trigon Shipyard for maritime lien; SC upheld attachment, deemed him indispensable party.

Case Summary (G.R. No. 91004-05)

Filing and Denial of Petition

Joseph Tay Chun Suy initiated a special civil action for certiorari and prohibition with the Court of Appeals, contesting the six orders issued by the respondent judges in Civil Case No. CEB-5162. The Court of Appeals dismissed the petition on August 28, 1989, and subsequently denied the petitioner's motion for reconsideration on November 7, 1989. The petitioner appealed this dismissal.

Background of the Dispute

On March 26, 1984, a judgment was rendered by Judge Mariano C. Tupas of the Regional Trial Court of Davao, which ordered Sta. Clara Lumber Co., Inc. to pay Suy the sum of ₱181,194.90. This judgment became final and led to a writ of execution which resulted in the sale of the motor vessel Sta. Clara I to the petitioner for ₱317,000. Following this transaction, the Philippine Trigon Shipyard Corporation filed a complaint in Cebu, claiming a maritime lien against the vessel based on alleged overdue repair costs and unjust detention.

Issuance of Writ of Preliminary Attachment

On July 21, 1986, Judge Valeriano P. Tomol, Jr. issued a writ of preliminary attachment against the vessel as part of the remedy sought by Trigon. This writ was based upon the plaintiff’s allegations that Suy, and the sheriff in Davao, acted knowingly and in bad faith regarding the ownership and detention of the vessel. The sheriff allegorically attached the vessel as well as Suy’s bank accounts.

Petitioner’s Arguments Against Attachment

Suy invoked Rule 57, Section 1, of the Revised Rules of Court, arguing that there were no grounds that justified the issuance of the order of attachment. He contested the claims made by Trigon and contended that he was an indispensable party to the suit given his prior acquisition of the vessel. Moreover, he argued that he had not been afforded a chance for a hearing before the preliminary attachment was issued.

Legal Justifications for Attachment

In rejecting Suy's appeal, the Court highlighted that the claims made by Trigon, particularly regarding unjust detention, provided sufficient justification for the writ of attachment. It noted that Suy's questionable acquisition of the vessel from a non-owner justified Trigon’s action in seeking a remedy for an alleged maritime lien, making Suy’s presence necessary in the proceedings.

Grounds for Writ of Attachment Upheld

The Court confirmed that the trial court’s decision to issue the writ was based on sufficiently detailed allegations presented by Trigon. The Court also rejected Suy’s argument concerning the necessity of notifying the custodian of the vessel before the attachment, emphasizing the presumptive regularity of official duties performed.

Authority of Judges on Ex Parte Issuances

The Court ruled that the issuance of the writ of attachment ex parte, without prior hearing, was valid given the potential risk that Suy might abscond with the vessel.

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