Philippine British Assurance Co., Inc. v. Intermediate Appellate Court
NEW DOCTRINEFacts
The Antecedents: Private respondent Sycwin Coating & Wires, Inc. filed a complaint for collection of a sum of money against Varian Industrial Corporation. During the pendency of the suit, Sycwin attached Varian's properties upon posting a supersedeas bond. Varian, in turn, posted a counterbond amounting to P1,400,000.00 through petitioner Philippine British Assurance Co., Inc., leading to the release of the attached properties. Procedural History: The Regional Trial Court (RTC) rendered a decision in favor of Sycwin, ordering Varian to pay the principal obligation, interest, liquidated damages, exemplary damages, attorney's fees, and costs. Varian appealed the decision to the Intermediate Appellate Court (IAC). Sycwin then filed a motion for execution pending appeal with the IAC. The IAC granted the motion, but the writ of execution was returned unsatisfied as Varian failed to deliver the previously attached personal properties upon demand. Sycwin then petitioned the IAC to order the surety (petitioner) to pay the value of its bond. The IAC granted this petition. The Petition: Petitioner Philippine British Assurance Co., Inc. filed a Petition for Review on certiorari of the IAC's Resolution granting private respondent's motion for execution pending appeal and ordering the issuance of a writ of execution on the counterbond. The Supreme Court issued a temporary restraining order enjoining the respondents from enforcing the questioned order.
Issue(s)
Whether an order of execution pending appeal of a judgment may be enforced on a counterbond posted to lift an attachment. Whether a motion for reconsideration is a prerequisite for filing a petition for certiorari when special circumstances warrant immediate action.
Ruling
The petition is dismissed for lack of merit, and the restraining order issued is dissolved.
Ratio Decidendi
On the issue of whether an order of execution pending appeal may be enforced on a counterbond posted to lift an attachment: The Court held that a counterbond posted to lift an attachment, executed in accordance with Section 5, Rule 57 of the Rules of Court, is intended to secure the payment of "any judgment" that the attaching creditor may recover. Section 17 of the same rule provides that if the execution is returned unsatisfied, the surety on the counterbond becomes charged and is bound to pay the judgment creditor upon demand. The Court emphasized the principle of ubi lex non distinguish nec nos distinguere debemos (where the law does not distinguish, we should not distinguish). Since the law does not make any distinction nor intend to make any exception when it speaks of "any judgment" that may be charged against the counterbond, it should be interpreted to refer not only to a final and executory judgment but also to a judgment pending appeal. The counterbond's provisions, as well as the rules, do not limit its application to a final and executory judgment; rather, they specify that it applies to "any judgment" that may be recovered by the plaintiff. Therefore, an execution of any judgment, including one pending appeal, if returned unsatisfied, may be charged against such a counterbond. On the issue of whether a motion for reconsideration is a prerequisite for filing a petition for certiorari: The Court reiterated the general rule that a motion for reconsideration is a condition sine qua non for granting a writ of certiorari. However, this rule does not apply when special circumstances warrant immediate or more direct action. The Court cited previous rulings where a motion for reconsideration may be dispensed with in cases where execution had been ordered and the need for relief was extremely urgent. In this case, the need for relief was urgent, justifying the direct filing of the petition for certiorari without a prior motion for reconsideration.
Main Doctrine
A counterbond posted to lift an attachment, executed in accordance with Section 5, Rule 57 of the Rules of Court, is liable for the payment of any judgment, including a judgment pending appeal, that is returned unsatisfied in whole or in part.