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88
SUPREME COURT REPORTS ANNOTATED
Aboitiz & Company, Inc. vs. Cotabato Bus Company, Inc.
No. L-35990. June 17, 1981.*
ABOITIZ & COMPANY, INC., HONORABLE VICENTE N. CUSI, JR., Judge of the Court of First
Instance of Davao, and the PROVINCIAL SHERIFF OF DAVAO DEL SUR, petitioners, vs.
COTABATO BUS COMPANY, INC., respondent.
Attachment; Insolvency is not a proper ground for issuance of a writ of attachment.Going
forthwith to this question of whether insolvency, which petitioners in effect claims to have
been proven by the evidence, particularly by companys bank account which has been
reduced to nil, may be a ground for the issuance of a writ of attachment, the respondent
Court of Appeals correctly took its position in the negative on the strength of the explicit
ruling of this Court in Max Chamorro & Co. vs. Philippine Ready Mix Concrete Company, Inc.and Hon. Manuel P. Barcelona.
Same; Facts of this case do not warrant issuance of the writ of attachment.It is an
undisputed fact that, as averred by petitioner itself, the several buses attached are nearly
junks. However, upon permission by the sheriff, five of them were repaired, but they were
substituted with five buses which were also in the same condition as the five repaired ones
before the repair. This cannot be the removal intended as ground for the issuance of a writ of
attachment under Section 1(e), Rule 57, of the Rules of Court. The repair of the five buses
was evidently motivated by a desire to serve the interest of the
______________
* SECOND DIVISION.
89
VOL. 105, JUNE 17, 1981
89
Aboitiz & Company, Inc. vs. Cotabato Bus Company, Inc.
riding public, clearly not to defraud its creditors, as there is no showing that they were not
put on the run after their repairs, as was the obvious purpose of their substitution to be
placed in running condition.
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Same; Same.Moreover, as the buses were mortgaged to the DPB, their removal or disposal
as alleged by petitioner to provide the basis for its prayer for the issuance of a writ of
attachment should be very remote, if not nil. If removal of the buses had in fact been
committed, which seems to exist only in petitioners apprehensive imagination, the DBP
should not have failed to take proper court action, both civil and criminal, which apparently
has not been done.
Same; Same.The dwindling of respondents bank account despite its daily income of from
P10,000.00 to P14,000.00 is easily explained by its having to meet heavy operating expenses,
which include salaries and wages of employees and workers. If, indeed the income of the
company were sufficiently profitable, it should not allow its buses to fall into disuse by lack
of repairs. It should also maintain a good credit standing with its suppliers of equipment and
other needs of the company to keep its business a going concern. Petitioner is only one of the
suppliers.
Same; Same.It is, indeed, extremely hard to remove the buses, machinery and other
equipments which respondent company have to own and keep to be able to engage andcontinue in the operation of its transportation business. The sale or other form of disposition
of any of this kind of property is not difficult of detection or discovery, and strangely,
petitioner has adduced no proof of any sale or transfer of any of them, which should have
been easily obtainable.
Aquino, J., separate opinion:
Action; Judges; Judge Cusi was improperly joined as a co-petitioner.In the result. Judge Cusi
was improperly joined as a co-petitioner.
APPEAL by certiorari from the decision of the Court of Appeals.
The facts are stated in the opinion of the Court.
90
90
SUPREME COURT REPORTS ANNOTATED
Aboitiz & Company, Inc. vs. Cotabato Bus Company, Inc.
DE CASTRO, J.:
The instant petition stemmed from Civil Case No. 7329 of the Court of First Instance of Davao
(Branch I) in which a writ of preliminary attachment was issued ex-parte by the Court on the
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strength of an affidavit of merit attached to the verified complaint filed by petitioner herein,
Aboitiz & Co., Inc., on November 2, 1971, as plaintiff in said case, for the collection of money
in the sum of P155,739.41, which defendant therein, the respondent in the instant case,
Cotabato Bus Co., owed the said petitioner.
By virtue of the writ of preliminary attachment, the provincial sheriff attached personal
properties of the defendant bus company consisting of some buses, machinery and
equipment. The ground for the issuance of the writ is, as alleged in the complaint and the
affidavit of merit executed by the Assistant Manager of petitioner, that the defendant has
removed or disposed of its properties or assets, or is about to do so, with intent to defraud its
creditors.
Respondent company filed in the lower court an Urgent Motion to Dissolve or Quash Writ of
Attachment to which was attached an affidavit executed by its Assistant Manager, Baldovino
Lagbao, alleging among other things that the Cotabato Bus Company has not been selling or
disposing of its properties, neither does it intend to do so, much less to defraud its creditors;
that also the Cotabato Bus Company, Inc. has been acquiring and buying more assets. Anopposition and a supplemental opposition were filed to the urgent motion. The lower court
denied the motion stating in its Order that the testimony of Baldovino Lagbao, witness for
the defendant, corroborates the facts in the plaintiffs affidavit instead of disproving or
showing them to be untrue.
A motion for reconsideration was filed by the defendant bus company but the lower court
denied it. Hence, the defendant went to the Court of Appeals on a petition for certiorari
alleging grave abuse of discretion on the part of herein respondent Judge, Hon. Vicente R.
Cusi, Jr. On giving due course to the
91
VOL. 105, JUNE 17, 1981
91
Aboitiz & Company, Inc. vs. Cotabato Bus Company, Inc.
petition, the Court of Appeals issued a restraining order restraining the trial court from
enforcing further the writ of attachment and from proceeding with the hearing of Civil Case
No. 7329. In its decision promulgated on October 3, 1971, the Court of Appeals declared nulland void the order/writ of attachment dated November 3, 1971 and the orders of December
2, 1971, as well as that of December 11, 1971, ordered the release of the attached
properties, and made the restraining order originally issued permanent.
The present recourse is an appeal by certiorari from the decision of the Court of Appeals
reversing the assailed orders of the Court of First Instance of Davao, (Branch I), petitioner
assigning against the lower court the following errors:
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ERROR I
THE COURT OF APPEALS ERRED IN HASTILY AND PERFUNCTORILY RENDERING, ON OCTOBER 3,
1971, A DECISION WITHOUT CONSIDERING MOST OF THE EVIDENCE SUCH THAT
1) EVEN AN IMPORTANT FACT, ESTABLISHED BY DOCUMENTARY EVIDENCE AND NOT DENIED BY
RESPONDENT, IS MENTIONED ONLY AS A CLAIM OF PETITIONER COMPANY;
2) THE DECISION CONTAINS NO DISCUSSION AND APPRECIATION OF THE FACTS AS PROVED,
ASSEMBLED AND PRESENTED BY PETITIONER COMPANY SHOWINGIN THEIR TOTALITYTHAT
RESPONDENT HAS REMOVED, DIVERTED OR DISPOSED OF ITS BANK DEPOSITS, INCOME AND
OTHER LIQUID ASSETS WITH INTENT TO DEFRAUD ITS CREDITORS, ESPECIALLY ITS UNSECURED
SUPPLIERS;
3) THE DECISION IGNORES THE SIGNIFICANCE OF THE REFUSAL OF RESPONDENT TO PERMIT,
UNDER REP. ACT NO. 1405, THE METROPOLITAN BANK & TRUST CO. TO BRING, IN COMPLIANCEWITH A SUBPOENA DUCES TECUM, TO THE TRIAL COURT ALL THE RECORDS OF RESPONDENTS
DEPOSITS AND WITHDRAWALS UNDER ITS CURRENT AND SAVINGS ACCOUNTS (NOW NIL) FOR
EXAMINATION BY PETITIONER COMPANY FOR THE PUR-
92
92
SUPREME COURT REPORTS ANNOTATED
Aboitiz & Company, Inc. vs. Cotabato Bus Company, Inc.
POSE OF SHOWING DIRECTLY THE REMOVAL, DIVERSION OR DISPOSAL OF RESPONDENTS
DEPOSITS AND INCOME WITH INTENT TO DEFRAUD ITS CREDITORS.
ERROR II
THE COURT OF APPEALS ERRED IN NOT APPRECIATING THE FACTS THAT RESPONDENTS BANK
DEPOSITS ARE NIL AS PROOF WHICHTOGETHER WITH RESPONDENTS ADMISSION OF AN
INCOME OF FROM P10,000.00 to P14,000.00 A DAY AND THE EVIDENCE THAT IT CANNOT
PRODUCE P634.00 WITHOUT USING A PERSONAL CHECK OF ITS PRESIDENT AND MAJORITY
STOCKHOLDER, AND OTHER EVIDENCESHOWS THE REMOVAL OR CHANNELING OF ITS INCOME
TO THE LATTER.
ERROR III
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THE COURT OF APPEALS ERRED IN NOT APPRECIATING THE RESCUE AND REMOVAL BY
RESPONDENT OF FIVE ATTACHED BUSES, DURING THE PENDENCY OF ITS MOTION TO DISSOLVE
THE ATTACHMENT IN THE TRIAL COURT, AS A FURTHER ACT OF REMOVAL OF PROPERTIES BY
RESPONDENT WITH INTENT TO DEFRAUD PETITIONER COMPANY, FOR WHOSE BENEFIT SAID
BUSES HAD BEEN ATTACHED.
The questions raised are mainly, if not solely, factual revolving on whether respondent bus
company has in fact removed its properties, or is about to do so, in fraud of its creditors. This
being so, the findings of the Court of Appeals on said issues of facts are generally considered
conclusive and final, and should no longer be disturbed. However, We gave due course to the
petition because it raises also a legal question of whether the writ of attachment was
properly issued upon a showing that defendant is on the verge of insolvency and may no
longer satisfy its just debts without issuing the writ. This may be inferred from the emphasis
laid by petitioner on the fact that even for the measly amount of P634.00 payment thereof
was made with a personal check of the respondent com-
93
VOL. 105, JUNE 17, 1981
93
Aboitiz & Company, Inc. vs. Cotabato Bus Company, Inc.
panys president and majority stockholder, and its debts to several creditors, including
secured ones like the DBP, have remained unpaid, despite its supposed daily income of an
average of P12,000.00, as declared by its assistant manager, Baldovino Lagbao.1
Going forthwith to this question of whether insolvency, which petitioners in effect claims to
have been proven by the evidence, particularly by companys bank account which has been
reduced to nil, may be a ground for the issuance of a writ of attachment, the respondent
Court of Appeals correctly took its position in the negative on the strength of the explicit
ruling of this Court in Max Chamorro & Co. vs. Philippine Ready Mix Concrete Company, Inc.
and Hon. Manuel P. Barcelona.2
Petitioner, however, disclaims any intention of advancing the theory that insolvency is a
ground for the issuance of a writ of attachment,3 and insists that its evidence is intended to
prove his assertion that respondent company has disposed, or is about to dispose, of itsproperties, in fraud of its creditors. Aside from the reference petitioner had made to
respondent companys nil bank account, as if to show removal of com-panys funds,
petitioner also cited the alleged non-payment of its other creditors, including secured
creditors like the DBP to which all its buses have been mortgaged, despite its daily income
averaging P12,000.00, and the rescue and removal of five attached buses.
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It is an undisputed fact that, as averred by petitioner itself, the several buses attached are
nearly junks. However, upon permission by the sheriff, five of them were repaired, but they
were substituted with five buses which were also in the same condition as the five repaired
ones before the repair. This cannot be the removal intended as ground for the issuance of a
writ of attachment under section 1 (e), Rule 57, of the Rules of Court. The repair of the five
buses was evidently motivated by a desire to serve the interest of the riding public, clearlynot to
_____________
1 p. 24, Appellants Brief.
2 94 Phil. 1005.
3 pages 8-9, Appellants Reply Brief.
94
94
SUPREME COURT REPORTS ANNOTATED
Aboitiz & Company, Inc. vs. Cotabato Bus Company, Inc.
defraud its creditors, as there is no showing that they were not put on the run after their
repairs, as was the obvious purpose of their substitution to be placed in running condition.
Moreover, as the buses were mortgaged to the DBP, their removal or disposal as alleged by
petitioner to provide the basis for its prayer for the issuance of a writ of attachment should
be very remote, if not nil. If removal of the buses had in fact been committed, which seems
to exist only in petitioners apprehensive imagination, the DBP should not have failed to take
proper court action, both civil and criminal, which apparently has not been done.
The dwindling of respondents bank account despite its daily income of from P10,000.00 to
P14,000.00 is easily explained by its having to meet heavy operating expenses, which include
salaries and wages of employees and workers. If, indeed the income of the company were
sufficiently profitable, it should not allow its buses to fall into disuse by lack of repairs. It
should also maintain a good credit standing with its suppliers of equipment and other needs of
the company to keep its business a going concern. Petitioner is only one of the suppliers.
It is, indeed, extremely hard to remove the buses, machinery and other equipments which
respondent company have to own and keep to be able to engage and continue in the
operation of its transportation business. The sale or other form of disposition of any of this
kind of property is not difficult of detection or discovery, and strangely, petitioner, has
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adduced no proof of any sale or transfer of any of them, which should have been easily
obtainable.
In the main, therefore, We find that the respondent Court of Appeals has not committed any
reversible error, much less grave abuse of discretion, except that the restraining order issued
by it should not have included restraining the trial court from hearing the case, altogether.
Accordingly, the instant petition is hereby denied, but the trial court is hereby ordered to
immediately proceed with the hearing of Civil Case No. 7329 and decide it in accordance with
the law and the evidence. No special pronouncement as to costs.
95
VOL. 105, JUNE 17, 1981
95
Aboitiz & Company, Inc. vs. Cotabato Bus Company, Inc.
SO ORDERED.
Barredo (Chairman), Guerrero*, and Abad Santos, JJ., concur.
Aquino, J., in the result. Judge Cusi was improperly joined as a co-petitioner.
Concepcion Jr., J., took no part.
Petition denied.
Notes.Where there are no third parties involved and the non-registration of the notice of
levy has not impaired the rights of the judgment debtor, the subsequent registration of the
certificate of absolute sale amounted to the filing of notice of levy. (Valenzuela vs. De
Aguilar, 8 SCRA 212).
The mere garnishment of funds belonging to a party upon order of the court does not have
the effect of delivering the money garnished to the sheriff or to the party in whose favor the
attachment is issued. (De la Rama vs. Villarosa, 8 SCRA 413).
Plaintiffs claim for damages for the discharge of attachment upon giving counter-bond is
premature where the case is still pending appeal. (Dizon vs. Valdez, 23 SCRA 200).
A writ of garnishment on the salary of a married woman for a judgment debt on which she
alone is liable is illegal when it is proved that said salary is not sufficient for her expenses and
that of her family. (Avendao vs. Alikpala, 12 SCRA 537). The interest of an heir in the estate
of a deceased person may be attached for purposes of execution even if the estate is in the
process of settlement before the courts. (Reganon vs. Imperial, 22 SCRA 80).
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A writ of preliminary attachment is provisional remedy issued upon an order of the court
where an action is pending, to
______________
*Justice Guerrero is designated in place of Justice Conception.
96
96
SUPREME COURT REPORTS ANNOTATED
Aboitiz & Company, Inc. vs. Cotabato Bus Company, Inc.
be levied upon the property or properties of the defendant therein, the same to be held
thereafter by the sheriff as security for the satisfaction of whatever judgment might be
secured by the attaching creditor against the defendant. (Militante vs. Edrosolano, 39 SCRA
473).
The plaintiff who secures a favorable judgment does not need to file a supplemental pleading
the finality of the judgment in order to claim payment from the surety on a counter-bond
filed by the defendant who failed to satisfy the judgment. (Vanguard Assurance Corporation
vs. Court of Appeals, 64 SCRA 148).
Under Section 17, an order that the judgment creditor might recover from the surety on the
counter bond, it is necessary (1) that execution be first issued against the principal debtor
and that; such execution was returned unsatisfied in whole or in part; (2) that the creditor
made a demand upon the surety for the satisfaction of the judgment; and (3) that the surety
be given notice and a summary hearing in the same action as to his liability for the judgment
under his counter bond. (Towers Assurance Corporation vs. Ororawa Supermart, 80 SCRA 262).
o0o
97 [Aboitiz & Company, Inc. vs. Cotabato Bus Company, Inc., 105 SCRA 88(1981)]
694
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SUPREME COURT REPORTS ANNOTATED
Miailhe vs. De Lencquesaing
No. L-67715. July 11, 1986.*
WILLIAM ALAIN MIAILHE and THE HON. FELIX V. BARBERS, in his capacity as Presiding Judge,RTC of Manila, Branch XXXIII, petitioners-appellants, vs. ELIANE M. DE LENCQUESAING and
HERVE DE LENCQUESAING, respondents-appellees.
Remedial Law; Special Civil Actions; Attachment; Sec. 1, par. (f), Rule 57 of the Rules of
Court, referring to an action against a party who resides out of the Philippines, applies where
plaintiffs claim is for liquidated damages, not to unliquidated damages.While it is true that
from the aforequoted provision attachment may issue in an action against a party who
resides out of the Philippines, irrespective of the nature of the action or suit, and while it is
also true that in the case of Cu Unjieng et al v. Albert, 58 Phil. 495, it was held that each of
the six grounds treated ante is independent of the
_______________
8 Article 63(2), Revised Penal Code.
* SECOND DIVISION.
695
VOL. 142, JULY 11, 1986
695
Miailhe vs. De Lencquesaing
others, still it is imperative that the amount sought be liquidated.
APPEAL by certiorari to review the decision of the Intermediate Appellate Court.
The facts are stated in the opinion of the Court.
PARAS, J.:
This petition is an appeal by certiorari from the Decision of the Intermediate Appellate Court
in AC-G.R. SP. No. 01914 which declared null and void, the Order of the Hon. Judge Felix V.
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Barbers, issued in Civil Case No. 83-16829, dated April 14, 1983, granting petitioners
application for the issuance of a writ of preliminary attachment and the Order dated
September 13, 1983 denying respondents motion to lift said attachment.
The pertinent facts that gave rise to the instant petition are as follows:
Petitioner William Alain Miailhe, his sisters Monique Miailhe Sichere, Eliane Miailhe de
Lencquesaing and their mother, Madame Victoria D. Miailhe are co-owners of several
registered real properties located in Metro Manila. By common consent of the said co-owners,
petitioner William Alain has been administering said properties since 1960. As Madame
Victoria D. Miailhe, her daughter Monique and son William Alain (herein petitioner) failed to
secure an out-of-court partition thereof due to the unwillingness or opposition of respondent
Elaine, they filed in the Court of First Instance of Manila (now Regional Trial Court) an action
for Partition, which was docketed as Civil Case No. 105774 and assigned to Branch XXX
thereof, presided over by Judge Pedro Ramirez. Among the issues presented in the partition
case was the matter of petitioners account as administrator of the properties sought to be
partitioned. But while the said administrators account was still being examined, respondentElaine filed a motion praying that the sum of P203,167.36 which allegedly appeared as a cash
balance in her favor as of December 31, 1982, be ordered delivered to her by petitioner
William Alain. Against the opposition of petitioner and the other co-owners, Judge
696
696
SUPREME COURT REPORTS ANNOTATED
Miailhe vs. De Lencquesaing
Pedro Ramirez granted the motion in his Order dated December 19, 1983 which order is now
the subject of a certiorari proceeding in the Intermediate Appellate Court under AC-G.R. No.
SP-03070.
Meanwhile however, and more specifically on February 28, 1983, respondent Elaine filed a
criminal complaint for estafa against petitioner William Alain, with the office of the City
Fiscal of Manila, alleging in her supporting affidavit that on the face of the very account
submitted by him as Administrator, he had misappropriated considerable amounts, which
should have been turned over to her as her share in the net rentals of the common properties.Two days after filing the complaint, respondent flew back to Paris, the City of her residence.
Likewise, a few days after the filing of the criminal complaint, an extensive news item about
it appeared prominently in the Bulletin Today, March 4, 1983 issue, stating substantially that
Alain Miailhe, a consul of the Philippines in the Republic of France, had been charged with
Estafa of several million pesos by his own sister with the office of the City Fiscal of Manila.
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On April 12, 1983, petitioner Alain filed a verified complaint against respondent Elaine, for
Damages in the amount of P2,000,000.00 and attorneys fees of P250,000.00 allegedly
sustained by him by reason of the filing by respondent (then defendant) of a criminal
complaint for estafa, solely for the purpose of embarrassing petitioner (then plaintiff) and
besmirching his honor and reputation as a private person and as an Honorary Consul of the
Republic of the Philippines in the City of Bordeaux, France. Petitioner further chargedrespondent with having caused the publication in the March 4, 1983 issue of the Bulletin
Today, of a libelous news item. In his verified complaint, petitioner prayed for the issuance of
a writ of preliminary attachment of the properties of respondent consisting of 1/6 undivided
interests in certain real properties in the City of Manila on the ground that respondent-
defendant is a non-resident of the Philippines, pursuant to paragraph (f), Section 1, Rule 57,
in relation to Section 17, Rule 14 of the Revised Rules of Court.
This case for Damages was docketed as Civil Case No. 83-
697
VOL. 142, JULY 11, 1986
697
Miailhe vs. De Lencquesaing
16829 of the Regional Trial Court of Manila, Branch XXXIII presided over by the Honorable
Felix V. Barbers.
On April 14, 1983, Judge Barbers granted petitioners application for preliminary attachment
upon a bond to be filed by petitioner in the amount of P2,000,000.00. Petitioner filed said
bond and upon its approval, the Writ of Preliminary Attachment was issued on April 18, 1983
which was served on the Deputy Clerk of Court of Branch XXX before whom the action for
Partition was pending.
On May 17, 1983, respondent thru counsel filed a motion to lift or dissolve the writ of
attachment on the ground that the complaint did not comply with the provisions of Sec. 3 of
Rule 57, Rules of Court and that petitioners claim was for unliquidated damages. The motion
to lift attachment having been denied, respondent filed with the Intermediate Appellate
Court a special action for certiorari under AC-G.R SP No. 01914 alleging that Judge Barbers
had acted with grave abuse of discretion in the premises.
On April 4, 1934, the IAC issued its now assailed Decision declaring null and void the aforesaid
Writ of preliminary attachment. Petitioner filed a motion for the reconsideration of the
Decision but it was denied hence, this present petition which was given due course in the
Resolution of this Court dated February 6, 1985.
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We find the petition meritless. The most important issue raised by petitioner iswhether or
not the Intermediate Appellate Court erred in construing Section 1 par. (f) Rule 57 of the
Rules of Court to be applicable only in case the claim of the plaintiff is for liquidated
damages (and therefore not where he seeks to recover unliquidated damages arising from a
crime or tort).
In its now assailed decision, the IAC stated
We find, therefore, and so hold that respondent court had exceeded its jurisdiction in
issuing the writ of attachment on a claim based on an action for damages arising from delict
and quasi delict, the amount of which is uncertain and had not been reduced to judgment
just because the defendant is not a resident of the Philippines. Because of the uncertainty of
the amount of plaintiffs claim it can-
698
698
SUPREME COURT REPORTS ANNOTATED
Miailhe vs. De Lencquesaing
not be said that said claim is over and above all legal counterclaims that defendant may have
against plaintiff, one of the indispensable requirements for the issuance of a writ of
attachment which should be stated in the affidavit of applicant as required in Sec. 3 of Rule
57 or alleged in the verified complaint of plaintiff. The attachment issued in the case was
therefore null and void.
We agree.
Section 1 of Rule 57 of the Rules of Court provides
SEC. 1. Grounds upon which attachment may issue.A plaintiff or any proper party may, at
the commencement of the action or at any time thereafter, have the property of the adverse
party attached as security for the satisfaction of any judgment that may be recovered in the
following cases:
(a) In an action for the recovery of money or damages on a cause of action arising from
contract, express or implied, against a party who is about to depart from the Philippines withintent to defraud his creditors;
(b) In an action for money or property embezzled or fraudulently misapplied or converted to
his own use by a public officer, or an officer of a corporation or an attorney, factor, broker,
agent, or clerk, in the course of his employment as such, or by any other person in a fiduciary
capacity, or for a willful violation of duty;
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(c) In an action to recover the possession of personal property unjustly detained, when the
property, or any part thereof, has been concealed, removed, or disposed of to prevent its
being found or taken by the applicant or an officer;
(d) In an action against a party who has been guilty of a fraud in contracting the debt or
incurring the obligation upon which the action is brought, or in concealing or disposing of the
property for the taking, detention or conversion of which the action is brought;
(e) In an action against a party who has removed or disposed of his property, or is about to do
so, with intent to defraud his creditors;
(f)In an action against a party who resides out of the Philippines, or on whom summons may
be served by publication. (italics supplied)
While it is true that from the aforequoted provision attachment may issue in an action
against a party who resides out
699
VOL. 142, JULY 11, 1986
699
Guzman vs. National University
of the Philippines, irrespective of the nature of the action or suit, and while it is also true
that in the case of Cu Unjieng et al v. Albert, 58 Phil. 495, it was held that each of the six
grounds treated ante is independent of the others, still it is imperative that the amountsought be liquidated.
In view of the foregoing, the Decision appealed from is hereby AFFIRMED.
SO ORDERED.
Feria (Chairman), Fernan, Alampay and Gutierrez, Jr., JJ., concur.
Decision affirmed.
Notes.A special civil action of certiorari and prohibition which may be filed within a
reasonable period, no time frame for its filing having been fixed by Rule 65, Rules of Court.(Cubar vs. Mendoza, 120 SCRA 768).
Certiorari is proper where trial court already issued a writ of execution of questioned
judgment. Issuance of writ of execution is a question of law. (Vda. de Sayman vs. Court of
Appeals, 121 SCRA 650).
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The writ of certiorari may not be availed of to make up for the loss, through omission or
oversight, of the right to appeal. (Lobete vs. Sundiam, 123 SCRA 185).
o0o [Miailhe vs. De Lencquesaing, 142 SCRA 694(1986)]
110
SUPREME COURT REPORTS ANNOTATED
Mabayo Farms, Inc. vs. Court of Appeals
G.R. No. 140058. August 1, 2002.*
MABAYO FARMS, INC., herein represented by its President MRS. RORAIMA SILVA, petitioner, vs.
HON. COURT OF APPEALS and ANTONIO SANTOS, respondents.
Remedial Law; Injunction; As an ancillary or preventive remedy, a writ of preliminary
injunction may therefore be resorted to by a party to protect or preserve his rights and for no
other purpose during the pendency of the principal action; It is not a cause of action in itself
but merely a provisional remedy, an adjunct to a main suit; A person who is not a party in the
main suit, cannot be bound by an ancillary writ.A preliminary injunction is an order granted
at any stage of an action prior to final judgment, requiring a person to refrain from a
particular act. As an ancillary or preventive remedy, a writ of preliminary injunction may
therefore be resorted to by a party to protect or preserve his rights and for no other purpose
during the pendency of the principal action. Its object is to preserve the status quo until the
merits of the case can be heard. It is not a cause of action in itself but merely a provisional
remedy, an adjunct to a main suit. Thus, a person who is not a party in the main suit, like
private respondent in the instant case, cannot be bound by an ancillary writ, such as the writ
of preliminary injunction issued against the defendants in Civil Case No. 6695. He cannot beaffected by any proceeding to which he is a stranger.
Same; Actions; Intervention; Intervention in an action is neither compulsory nor mandatory
but only optional and permissive; Requisites to warrant intervention.First, Private
respondent had no duty to intervene in the proceedings in Civil Case No. 6695. Intervention in
an action is neither compulsory nor mandatory but only optional and permissive. Second, to
warrant intervention, two requisites must concur: (a) the movant has a legal interest in the
matter in litigation, and (b) intervention must not unduly delay or prejudice the adjudication
of the rights of the parties nor should the claim of the intervenor be capable of being
properly decided in a separate proceeding. The interest, which entitles a person to intervene
in a suit, must involve the matter in litigation and of such direct and immediate characterthat the intervenor will either gain or lose by the direct legal operation and effect of the
judgment.
______________
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* SECOND DIVISION.
111
VOL. 386, AUGUST 1, 2002
111
Mabayo Farms, Inc. vs. Court of Appeals
PETITION for review on certiorari of a decision of the Court of Appeals.
The facts are stated in the resolution of the Court.
Don P. Porciuncula for petitioner.
Oscar L. Karaan for private respondent.
R E S O L U T I O N
QUISUMBING, J.:
This petition for review seeks to reverse the decision1 promulgated on August 27, 1999, of the
Court of Appeals in CA-G.R. SP No. 51375. The appellate court enjoined the enforcement of
the writ of preliminary injunction dated April 14, 1998, issued by the Regional Trial Court ofBalanga, Bataan, Branch 1, in Civil Case No. 6695 against private respondent, Antonio Santos.
The factual antecedents of this case are as follows:
On August 22, 1969, the Bureau of Lands declared Francisco Domingo, Reynaldo Florida,
Cornelio Pilipino and Severino Vistan, lawful possessors of Lot 1379 of the Morong, Bataan
Cadastre. Lot 1379 consists of 144 hectares. Domingo, Florida, Pilipino and Vistan through
their forebears and by themselves had been in open, notorious, and exclusive possession of
portions of Lot 1379 since 1933 in the concept of owners. The Bureau then directed them to
confirm their titles over the property by filing the appropriate applications for the portions of
the property respectively occupied by them.
In October 1970, petitioner bought the respective portions of Domingo, Florida, Pilipino and
Vistan, totaling 69,932 square meters and entered into a compromise settlement with six
other persons occupying the property, whose applications had been rejected by the Bureau.
Petitioner then filed an application for land registration docketed as LRC Cad. Rec. No. N-209
with the then Court of First Instance of Bataan, Branch 1. The application was con-
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1 Rollo, pp. 92-97.
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SUPREME COURT REPORTS ANNOTATED
Mabayo Farms, Inc. vs. Court of Appeals
tested by several oppositors, among them the heirs of one Toribio Alejandro.
On December 20, 1991, the trial court decided the land registration case in petitioners favor.The losing parties appealed to the Court of Appeals, where the case was docketed as CA-G.R.
CV No. 40452. On March 14, 2000, the appellate court affirmed the lower courts decision.2
In June 1997, a group of occupants entered the land, destroyed the fences and drove away
livestock owned by petitioner.
On October 9, 1997, petitioner filed a complaint for injunction with damages, with a prayer
for a temporary restraining order, docketed as Civil Case No. 6695, with the RTC of Balanga,
Bataan. Named as defendants were Juanito Infante, Domingo Infante, Lito Mangalidan, Jaime
Aquino, John Doe, Peter Doe, and Richard Doe.
The trial court issued the temporary restraining order (TRO) and on January 16, 1998, the
sheriff served copies on the defendants. The sheriff accompanied petitioners president to
the property where they found five (5) persons cultivating the land. The latter refused to give
their names or receive copies of the TRO. They claimed that they were only farm workers of a
certain Antonio Santos who allegedly owned the land.3
On April 14, 1998, the trial court issued a writ of preliminary injunction restraining the
defendants or persons acting on their behalf from entering and cultivating the disputed
property. The aforementioned writ was also served upon respondent who was occupying a
portion of Lot No. 1379.4
On February 24, 1999, private respondent filed a special civil action for certiorari docketed as
CA-G.R. SP No. 51375 with the Court of Appeals. Private respondent averred that he only
learned about the writ of preliminary injunction on February 16, 1999, when he secured a
copy of the order. He claimed that he was an innocent purchaser for value of the property
from Francisco, Armando, and Conchita, all surnamed Alejandro and the injunc-
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5 Id., at p. 97.
6 SEC. 11. Misjoinder and non-joinder of parties.Neither misjoinder nor non-joinder ofparties is ground for dismissal of an action. Parties may be dropped or added by order of the
court on motion of any party or on its own initiative at any stage of the action and on such
terms as are just. Any claim against a misjoined party may be severed and proceeded with
separately.
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Mabayo Farms, Inc. vs. Court of Appeals
private respondent. Since the latter personally received the injunctive order on June 5, 1998,
he was already forewarned to intervene in Civil Case No. 6695 if he had any right or interest
to protect in the disputed property. This he failed to do. Since private respondent did not
then take the opportunity to present his side, he cannot now claim that he was denied due
process when the writ was enforced against him.
In his comment, private respondent counters that he was not legally bound nor required by
law to file his pleadings in Civil Case No. 6695 as he was not a party in said case. Likewise, hewas not required to act on or protest the injunctive writ in the aforementioned civil case.
Private respondent avers that what petitioner wants is to have a continuing writ in its favor,
to include not only the defendants in Civil Case No. 6695 but also all those who may
subsequently intrude into the land dispute. Private respondent submits that the court a quo
committed no error in describing petitioners posture as a violation of the fundamental rights
to notice and hearing.
We have minutely scrutinized the order granting the writ of preliminary injunction and are
unable to say that the writ applied to private respondent. The order merely stated [L]et a
writ of preliminary injunction be issued enjoining and restraining the defendants or any
person or persons acting in their place or stead from further entering and cultivating the said
land of the plaintiff subject matter ofthis case until further order from the Court.7 The
persons specifically enjoined in the order were the defendants in Civil Case No. 6695 or
persons acting in their stead. Petitioner itself admitted that private respondent was not a
defendant in Civil Case No. 6695 since at the institution of the case in 1997, he (private
respondent) did not have a right over any portion of petitioners lot.8 Neither was he a
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trespasser then.9 Also, nothing in the records indicate that private respondent was acting on
behalf of any of the defendants. Taking all these into consideration, we
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7 CA Rollo, p. 20.
8 Rollo, p. 21.
9 Ibid.
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Mabayo Farms, Inc. vs. Court of Appeals
must hold that the writ of preliminary injunction thus cannot be made to apply to private
respondent.
A preliminary injunction is an order granted at any stage of an action prior to final judgment,
requiring a person to refrain from a particular act.10 As an ancillary or preventive remedy, a
writ of preliminary injunction may therefore be resorted to by a party to protect or preserve
his rights and for no other purpose during the pendency of the principal action.11 Its object is
to preserve the status quo until the merits of the case can be heard.12 It is not a cause of
action in itself but merely a provisional remedy, an adjunct to a main suit.13 Thus, a person
who is not a party in the main suit, like private respondent in the instant case, cannot be
bound by an ancillary writ, such as the writ of preliminary injunction issued against the
defendants in Civil Case No. 6695. He cannot be affected by any proceeding to which he is a
stranger.14
Second, petitioner contends that the Court of Appeals erred when it observed that petitioner
should have impleaded private respondent as defendant in Civil Case No. 6695 pursuant to
Section 11, Rule 3 of the 1997 Rules of Civil Procedure.15 Instead, private respondent should
have intervened in Civil Case No. 6695 to protect his rights. Petitioner avers that at the time
the injunctive writ was issued, it had already rested its case and to require it to amend its
complaint to include private respondent was too late.
Private respondent counters that there was no reason why Section 11, Rule 3 of the 1997
Rules of Civil Procedure should not be
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10 1997 RULES OF CIVIL PROCEDURE, Rule 58, Sec. 1.
11 China Banking Corporation v. Court of Appeals, G.R. No. 121158, 333 Phil. 158, 173; 265
SCRA 327 (1996), citing Bengzon v. Court of Appeals, No. L-82568, 161 SCRA 745, 749 (1988)
and Calo & San Jose v. Roldan, No. L-252, 76 Phil. 445, 451-452 (1946).
12 Rava Development Corporation v. Court of Appeals, G.R. No. 96825, 211 SCRA 144, 154
(1992), citing Avila v. Tapucar, G.R. No. 45947, 201 SCRA 148 (1991).
13 Lopez v. Court of Appeals, G.R. No. 110929, 322 SCRA 686, 691 (2000).
14 Matuguina Integrated Wood Products, Inc. v. Court of Appeals, G.R. No. 98310, 263 SCRA
490, 505-506 (1996).
15 Supra, note 6.
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SUPREME COURT REPORTS ANNOTATED
Mabayo Farms, Inc. vs. Court of Appeals
made to apply to Civil Case No. 6695. He argues that contrary to petitioners posture, his
inclusion as a defendant in Civil Case No. 6695 is procedurally correct since no final judgment
had yet been rendered in said case. Moreover, he avers that petitioner cannot insist that
private respondent be vigilant in protecting his rights by intervening in Civil Case No. 6695.
We agree with private respondent. First, private respondent had no duty to intervene in the
proceedings in Civil Case No. 6695. Intervention in an action is neither compulsory nor
mandatory but only optional and permissive.16 Second, to warrant intervention, two
requisites must concur: (a) the movant has a legal interest in the matter in litigation,17 and
(b) intervention must not unduly delay or prejudice the adjudication of the rights of the
parties18 nor should the claim of the intervenor be capable of being properly decided in a
separate proceeding.19 The interest, which entitles a person to intervene in a suit, must
involve the matter in litigation and of such direct and immediate character that the
intervenor will either gain or lose by the direct legal operation and effect of the judgment.20
Civil Case No. 6695 was an action for permanent injunction and damages. As a stranger to the
case, private respondent had neither legal interest in a permanent injunction nor an interest
on the damages to be imposed, if any, in Civil Case No. 6695. To allow him to intervene would
have unnecessarily complicated and prolonged the case.
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We agree with the Court of Appeals that to make the injunctive writ applicable against
private respondent, petitioner should have impleaded the latter as an additional defendant in
Civil Case No. 6695. Petitioners insistence that it had rested its case and hence was too late
to include defendant finds no support in Section 11.
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16 Cruzcosa, et al. v. Hon. H. Concepcion, et al., No. L-11146, 101 Phil. 146, 150 (1957).
17 Batama Farmers Cooperative Marketing Association, Inc., et al. v. Hon. Rosal, et al., G.R.
No. L-30526, 149 Phil. 514, 518 (1971).
18 Balane v. De Guzman, No. L-21281, 20 SCRA 177, 179 (1967).
19 Pfleider v. Cordova de Britanico, et al., No. L-19077, 120 Phil. 1008, 1010, 12 SCRA 222
(1964).
20 Garcia v. David, No. 45454, 67 Phil. 279, 284 (1939).
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Dayrit vs. Philippine Bank of Communications
The rule categorically provides that Parties may be dropped or added by order of the court
on motion of any party or on its own initiative at any stage of the action (stress supplied) and
on such terms as are just.21 We find it inexplicable why petitioner pointedly resisted the
advice of the appellate court to implead private respondent as an additional defendant in
Civil Case No. 6695.
WHEREFORE, the instant petition is DENIED and the assailed decision of the Court of Appeals
in CA-G.R. SP No. 51375 AFFIRMED. No pronouncement as to costs.
SO ORDERED.
Bellosillo (Chairman), Mendoza and Corona, JJ., concur.
Petition denied, judgment affirmed.
Note.Injunction whether preliminary or final is not designed to protect contingent or future
rights. (Ortaez-Enderes vs. Court of Appeals, 321 SCRA 178 [1999])
o0o [Mabayo Farms, Inc. vs. Court of Appeals, 386 SCRA 110(2002)]
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356
SUPREME COURT REPORTS ANNOTATED
The Senate Blue Ribbon Committee vs. Majaducon
G.R. No. 136760. July 29, 2003.*
THE SENATE BLUE RIBBON COMMITTEE, represented by its Chairman, SENATOR AQUILINO Q.
PIMENTEL, JR., petitioner, vs. HON. JOSE S. MAJADUCON, Presiding Judge of Branch 23,
Regional Trial Court of General Santos City, and ATTY. NILO J. FLAVIANO, respondents.
G.R. No. 138378. July 29, 2003.*
AQUILINO Q. PIMENTEL, JR., petitioner, vs. THE HONORABLE JOSE S. MAJADUCON, in his
capacity as Presiding Judge of Branch 23, Regional Trial Court, General Santos City,
respondent.
Remedial Law; Certiorari; There is grave abuse of discretion when the respondent acts in a
capricious, whimsical, arbitrary or despotic manner in the exercise of his judgment as when
the assailed order is bereft of any factual and legal justification.There is grave abuse of
discretion when the respondent acts in a capricious, whimsical, arbitrary or despotic manner
in the exercise of his judgment, as when the assailed order is bereft of any factual and legal
justification. In this case, the assailed resolution of respondent Judge Majaducon was issued
without legal basis.
Same; Same; The Regional Trial Court of General Santos City or any court for that matter had
no authority to prohibit the Committee from requiring respondent to appear and testify
before it.The principle of separation of powers essentially means that legislation belongs to
Congress, execution to the Executive, and settlement of legal controversies to the Judiciary.
Each is prevented from invading the domain of the others. When the Senate Blue Ribbon
Committee served subpoena on respondent Flaviano to appear and testify before it in
connection with its investigation of the alleged misuse and mismanagement of the AFP-RSBS
funds, it did so pursuant to its authority to conduct inquiries in aid of legislation. This is
clearly provided in Article VI, Section 21 of the Constitution, thus: The Senate or the House of
Representatives or any of its respective committees may conduct inquiries in aid of legislation
in accordance with its duly published rules of procedure. The rights of persons appearing in or
affected by such inquiries shall be respected. Hence, the Regional Trial Court of General
Santos City, or any court for that matter, had no authority to prohibit the Committee from
requiring respondent to appear and testify before it.
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* EN BANC.
357
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The Senate Blue Ribbon Committee vs. Majaducon
Same; Same; No basis for the respondent Judge to apply the ruling in Bengzon.In the instant
case, the complaint against respondent Flaviano regarding the anomaly in the sale of Lot X,
MR-1160 was still pending before the Office of the Ombudsman when the Committee served
subpoena on him. In other words, no court had acquired jurisdiction over the matter. Thus,
there was as yet no encroachment by the legislature into the exclusive jurisdiction of another
branch of the government. Clearly, there was no basis for the respondent Judge to apply the
ruling in Bengzon. Hence, the denial of petitioners motion to dismiss the petition for
prohibition amounted to grave abuse of discretion.
Same; Same; Statement that respondent Judge was grossly ignorant of the rules of law andprocedures does not constitute improper conduct that tends to impede, obstruct or degrade
the administration of justice.Finally, the statement that respondent Judge was grossly
ignorant of the rules of law and procedure does not constitute improper conduct that tends to
impede, obstruct or degrade the administration of justice. As correctly argued by petitioner,
the phrase gross ignorance of the rules of law and procedure is ordinarily found in
administrative complaints and is a necessary description to support a petition which seeks the
annulment of an order of a judge wherein basic legal principles are disregarded.
PETITIONS for review of the resolutions of the Regional Trial Court of Gen. Santos City, Br.
23.
The facts are stated in the opinion of the Court.
Eddie U. Tamondong, Jose S. Songco, Abelardo de Jesus and Felipe R. Fragante for
petitioner.
Flaviano, Canja, Oclarit & Associates for private respondent Atty. N. J. Flaviano.
YNARES-SANTIAGO, J.:
For resolution are two consolidated petitions: (a) G.R. No. 136760, for certiorari, prohibition,
mandamus and preliminary injunction, assailing the resolution dated November 11, 1998 of
Judge Jose S. Majaducon of the Regional Trial Court of General Santos City, Branch 23, which
denied the Senate Blue Ribbon Committees motion to dismiss the petition for prohibition,
injunction with writ of preliminary injunction filed by private respondent Atty. Nilo J.
Flaviano; and (b) G.R. No. 138378, for review of the resolution dated April 15, 1999 of
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respondent Judge Majaducon declaring petitioner Senator Aquilino Q. Pimentel, Jr. guilty of
indirect contempt of court.
358
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SUPREME COURT REPORTS ANNOTATED
The Senate Blue Ribbon Committee vs. Majaducon
The antecedent facts are as follows:
G.R. No. 136760:
On August 28, 1998, Senator Blas F. Ople filed Senate Resolution No. 157 directing the
Committee on National Defense and Security to conduct an inquiry, in aid of legislation, intothe charges of then Defense Secretary Orlando Mercado that a group of active and retired
military officers were organizing a coup detat to prevent the administration of then
President Joseph Estrada from probing alleged fund irregularities in the Armed Forces of the
Philippines.1
On the same date, Senator Vicente C. Sotto III also filed Resolution No. 160, directing the
appropriate senate committee to conduct an inquiry, in aid of legislation, into the alleged
mismanagement of the funds and investment portfolio of the Armed Forces Retirement and
Separation Benefits System (AFP-RSBS) x x x.2
The Senate President referred the two resolutions to the Committee on Accountability ofPublic Officers and Investigations (Blue Ribbon Committee) and the Committee on National
Defense and Security.
During the public hearings conducted by the Senate Blue Ribbon Committee (hereafter called
the Committee), it appeared that the AFP-RSBS purchased a lot in General Santos City,
designated as Lot X, MR-1160, for P10,500.00 per square meter from private respondent Atty.
Nilo J. Flaviano. However, the deed of sale filed with the Register of Deeds indicated that the
purchase price of the lot was only P3,000.00 per square meter.
The Committee thereafter caused the service of a subpoena to respondent Atty. Flaviano,
directing him to appear and testify before it. Respondent refused to appear at the hearing.Instead, he filed a petition for prohibition and preliminary injunction with prayer for
temporary restraining order with the Regional Trial Court of General Santos City, Branch 23,
which was docketed as SP Civil Case No. 496.
On October 21, 1998, the trial court issued a Temporary Restraining Order directing the
Committee to CEASE and DESIST
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1 Rollo for G.R. No. 136760, p. 51.
2 Id., at p. 54.
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The Senate Blue Ribbon Committee vs. Majaducon
from proceeding with the inquiry in P.S. 160 particularly in General Santos City and/oranywhere in Region XI or Manila on matters affecting the patenting/titling and sale of Lot X,
MR-1160-D to AFP-RSBS, and from issuing subpoenas to witnesses from Region XI,
particularly from General Santos City, pending the hearing of the petition for prohibition and
injunction.3
On November 5, 1998, the Committee filed a motion to dismiss the petition on the grounds of
(a) lack of jurisdiction, and (b) failure to state a valid cause of action. It further argued that
the issuance of the Temporary Restraining Order was invalid for violating the rule against ex-
parte issuance thereof; and that the same was not enforceable beyond the territorial
jurisdiction of the trial court.
On November 11, 1998, the trial court denied petitioners motion to dismiss and granted the
writ of preliminary injunction, thus:
WHEREFORE, PREMISES CONSIDERED, the motion to dismiss is DENIED, and the WRIT OF
PRELIMINARY INJUNCTION is hereby issued against respondent. It is enjoined from enforcing
its subpoenas to petitioner in Region XI to appear and testify before it in any of its inquiry or
investigation anywhere in the Philippines regarding the acquisition by the AFP-RSBS of Lot X,
MR-1160-D, located in General Santos City. The bond of petitioner filed on October 21, 1998,
for P500,000.00 for the TRO also serves as his bond in this injunction.
SO ORDERED.4
Hence, the instant petition for certiorari which was docketed as G.R. No. 136760, alleging
that respondent Judge Majaducon committed grave abuse of discretion and/or acted without
or in excess of jurisdiction when he:
I. DENIED PETITIONERS MOTION TO DISMISS THE PETITION FOR PROHIBITION AND PRELIMINARY
INJUNCTION FILED BY PRIVATE RESPONDENT, ATTY. NILO J. FLAVIANO, AGAINST THE
PETITIONER IN SP. CIVIL CASE NO. 496.
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II. ISSUED (1) A TEMPORARY RESTRAINING ORDER EXPARTE FOR A PERIOD OF TWENTY (20)
DAYS AGAINST THE PETITIONER ON OCTOBER 21, 1998, AND (2) A WRIT OF PRELIMINARY
INJUNCTION ON NOVEMBER 11, 1998 ENJOINING THE PETI
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3 Rollo for G.R. No. 136760, p. 37.
4 Id.,at pp. 35-36.
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SUPREME COURT REPORTS ANNOTATED
The Senate Blue Ribbon Committee vs. Majaducon
TIONER FROM ENFORCING ITS SUBPOENAS TO PRIVATE RESPONENT IN REGION XI.
III. APPLIED THE RULING OF BENGZON VS. SENATE BLUE RIBBON IN GRANTING INJUNCTIVE
RELIEF TO PRIVATE RESPONDENT.5
G.R. No. 138378:
On January 13, 1999, the newspaper, The Philippine Star published a news report on the filing
by the Committee with this Court of the petition for certiorari which was docketed as G.R.
No. 136760. The news report quoted portions of the petition filed by the Committee, alleging
that Regional Trial Court Judge Majaducon was guilty of gross ignorance of the rules and
procedures when he issued the temporary restraining order and the writ of preliminary
injunction because, under the principle of separation of powers, courts cannot interfere with
the exercise by the legislature of its authority to conduct investigations in aid of legislation.6
Reacting to the aforesaid news report, respondent Judge Majaducon motu proprio initiated a
charge for indirect contempt of court against Senator Aquilino Q. Pimentel, Jr., news reporter
Perseus Echeminada, Philippine Star publisher Maximo Soliven, editor-in-chief Ramon J.Farolan, and executive editor Bobby G. dela Cruz, which was docketed as Special Civil Case
No. 496. Judge Majaducon averred that the news report created in the minds of the reader
the impression that he violated the separation of powers clause of the Constitution and that
he was guilty of gross ignorance of the rules and procedures.
After the respondents submitted their respective answers, a decision was rendered on April
15, 1999 finding petitioner Pimentel guilty of indirect contempt.
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Hence, the instant petition based on the following grounds:
I. THE EXPRESSION GROSS IGNORANCE OF THE RULES OF PROCEDURE OR GROSS
IGNORANCE OF THE LAW IN REFERENCE TO THE RESPONDENTS EX-PARTE ISSUANCE OF
INJUNCTIVE RELIEF IS NOT PEJORATIVE AS TO CONSTITUTE A GROUND FOR INDIRECT
CONTEMPT.
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5 Id.,at pp. 11-12.
6 J. Bernas, The 1987 Constitution of the Republic of the Philippines: A Commentary, p. 603
(1996 edition).
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The Senate Blue Ribbon Committee vs. Majaducon
II. THIS HONORABLE COURT ITSELF USES GROSS IGNORANCE OF THE LAW AND OTHER
EXPRESSIONS OF SIMILAR FORCEFUL IMPORT IN DESCRIBING GROSS AND PALPABLE ERRORS OF
JUDGES.
III. BY UPHOLDING HIS CONTEMPT CHARGE AGAINST THE PETITIONER, THE RESPONDENT
JUDGE HAS, IN EFFECT, PREEMPTED THIS HONORABLE COURT IN RESOLVING THE ISSUES
RAISED AGAINST HIM IN G.R. NO. 136760.
IV. THE PUBLICATION BY PHILIPPINE STAR OF THE BLUE RIBBON PETITION IN G.R. NO. 136760,
OR EXCERPTS THEREOF WAS A LEGITIMATE EXERCISE OF FREEDOM OF EXPRESSION AND OF THE
PRESS.
The two petitions, namely G.R. No. 136760 and G.R. No. 138378, were ordered consolidated
on December 11, 2000.
The issues for resolution in these joint petitions are: (a) whether or not respondent JudgeJose Majaducon committed grave abuse of discretion when he dismissed petitioners motion
to dismiss the petition for prohibition and issued the writ of preliminary injunction; and (b)
whether or not respondent Judge erred in convicting petitioner Pimentel of indirect contempt
of court.
On the first issue, petitioner Committee contends that courts have no jurisdiction to restrain
Congress from performing its constitutionally vested function to conduct investigations in aid
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of legislation, following the principle of separation of powers. Moreover, the petition filed by
respondent Flaviano before the trial court failed to state a cause of action considering that
the legislative inquiry did not deal with the issuance of the patent and title to Lot X, MR-
1160-D in the name of AFP-RSBS, which is well within the courts jurisdiction, but with the
anomaly in the purchase thereof, which falls squarely within the ambit of Senate Resolutions
Nos. 1577 and 160.8
On the other hand, respondent Flaviano contends that the trial court may properly intervene
into investigations by Congress pursuant to the power of judicial review vested in it by the
Constitution. He avers that he has a valid cause of action to file the petition for prohibition
considering that the Committees investigation will
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7 Supra,note 1.
8 Supra,note 2.
362
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SUPREME COURT REPORTS ANNOTATED
The Senate Blue Ribbon Committee vs. Majaducon
delve into the validity of the patenting and titling of Lot X, MR-1160-D which, as admitted by
petitioner, falls within the competence of judicial courts. In fact, the validity of the purchase
by AFP-RSBS of the subject lot is already the subject of a pending action before the Regional
Trial Court of General Santos City and the Ombudsman of Mindanao. Finally, he cites the case
of Bengzon v. Senate Blue Ribbon Committee,9 and argues that preliminary injunction may
issue in cases pending before administrative bodies such as the Ombudsman or the Office of
the Prosecutor as long as the right to self-incrimination guaranteed by the Bill of Rights is in
danger. Furthermore, an information against him has been filed with the Sandiganbayan.
We find for petitioner. There is grave abuse of discretion when the respondent acts in a
capricious, whimsical, arbitrary or despotic manner in the exercise of his judgment, as whenthe assailed order is bereft of any factual and legal justification.10 In this case, the assailed
resolution of respondent Judge Majaducon was issued without legal basis.
The principle of separation of powers essentially means that legislation belongs to Congress,
execution to the Executive, and settlement of legal controversies to the Judiciary. Each is
prevented from invading the domain of the others.11 When the Senate Blue Ribbon
Committee served subpoena on respondent Flaviano to appear and testify before it in
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connection with its investigation of the alleged misuse and mismanagement of the AFP-RSBS
funds, it did so pursuant to its authority to conduct inquiries in aid of legislation. This is
clearly provided in Article VI, Section 21 of the Constitution, thus:
The Senate or the House of Representatives or any of its respective committees may conduct
inquiries in aid of legislation in accordance with its duly published rules of procedure. The
rights of persons appearing in or affected by such inquiries shall be respected.
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9 G.R. No. 89914, 20 November 1991, 203 SCRA 767.
10 Ban Hua Flores v. Office of the Ombudsman and Atty. Enrique L. Flores, Jr., G.R. No.
136769, 17 September 2002, 389 SCRA 127.
11 Bernas, The 1987 Constitution of the Republic of the Philippines: A Commentary, p. 603
(1996 ed.).
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The Senate Blue Ribbon Committee vs. Majaducon
Hence, the Regional Trial Court of General Santos City, or any court for that matter, had no
authority to prohibit the Committee from requiring respondent to appear and testify before
it.
The ruling in Bengzon, cited by respondent, does not apply in this case. We agree with
petitioner Committee that the factual circumstances therein are different from those in the
case at bar. InBengzon, no intended legislation was involved and the subject matter of the
inquiry was more within the province of the courts rather than of the legislature. More
specifically, the investigation in the said case was an offshoot of the privilege speech of then
Senator Enrile, who urged the Senate to look into a possible violation of the Anti-Graft and
Corrupt Practices Act by the relatives of then President Corazon Aquino, particularly Mr.
Ricardo Lopa, in connection with the alleged sale of 36 to 39 corporations belonging to
Benjamin Romualdez. On the other hand, there was in this case a clear legislative purpose, as
stated in Senate Resolution No. 160, and the appropriate Senate Committee was directed to
look into the reported misuse and mismanagement of the AFP-RSBS funds, with the intention
of enacting appropriate legislation to protect the rights and interests of the officers and
members of the Armed Forces of the Philippines. Further, in Bengzon, the validity of the sale
of Romualdezs corporations was pending with the Sandiganbayan when the Senate Blue
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Ribbon Committee decided to conduct its investigation. In short, the issue had already been
pre-empted by the court.
In the instant case, the complaint against respondent Flaviano regarding the anomaly in the
sale of Lot X, MR-1160 was still pending before the Office of the Ombudsman when the
Committee served subpoena on him. In other words, no court had acquired jurisdiction over
the matter. Thus, there was as yet no encroachment by the legislature into the exclusive
jurisdiction of another branch of the government. Clearly, there was no basis for the
respondent Judge to apply the ruling in Bengzon. Hence, the denial of petitioners motion to
dismiss the petition for prohibition amounted to grave abuse of discretion.
In G.R. No. 138378, petitioner, Senator Aquilino Pimentel, Jr., contends that respondent
judge erred in finding him, as representative of the Committee, guilty of indirect contempt of
court under Rule 71, Section 3(d) of the 1997 Rules of Civil Procedure. According to Pimentel,
the phrase gross ignorance of the rules of law and
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procedure, which the Committee used in the petition, is not depreciatory, but merely a
description of normal usage in petitions where the acts of lower courts are challenged before
higher judicial bodies. In fact, this Court often uses the phrase in its decisions to describe
judges who commit gross and palpable mistakes in their interpretation and application of the
law. Petitioner further maintains that when the Committee used the phrase, it did so without
malice. Rather, it was only to stress the unfamiliarity of or disregard by the respondent Judge
of a basic rule of procedure, and to buttress its arguments in support of its petition for
certiorari.
Petitioner Pimentel also contends that he had no participation in the publication in the
Philippine Star of excerpts from the Committees petition for certiorari. Even assuming
arguendo that it was within his control, he pointed out that he could not have prevented the
editors and writers of the newspaper from publishing the same, lest he violate their
constitutional right of free expression. Indeed, the report by the Philippine Star of the filingof the petition and the reproduction of its contents was a legitimate exercise of press
freedom.
Respondent Judge counters that Pimentel was guilty of indirect contempt of court, first,for
causing the publication of the Committees petition in the Philippine Star notwithstanding
that the same was subjudice; second, for making derogatory remarks in the petition itself
which affected the honor and integrity of the respondent judge and degraded the
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administration of justice; and third, for making it appear that an administrative complaint
was filed against respondent Judge for gross ignorance of the law. These, he said, constituted
malicious and false report which obstructed the administration of justice.
Rule 71, Section 3(d) of the 1997 Rules of Civil Procedure provides:
Section 3. Indirect contempt to be punished after charge and hearing.After a charge in
writing has been filed, and an opportunity given to the respondent to comment thereon
within such period as may be fixed by the court and to be heard by himself or counsel, a
person guilty of any of the following acts may be punished for indirect contempt:
xxx xxx xxx
d) Any improper conduct tending, directly or indirectly, to impede, obstruct, or degrade the
administration of justice; x x x.
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The Senate Blue Ribbon Committee vs. Majaducon
After deliberating on the parties arguments, we find that petitioner Pimentel is not guilty of
improper conduct which obstructs or degrades the administration of justice.
Verily, it does not appear that Pimentel caused the publication in the Philippine Star of the
fact of filing of the petition for certiorari by the Committee and the reproduction of excerpts
thereof. He had no right to choose which news articles will see print in the newspaper.
Rather, it is the publisher thereof which decides which news events will be reported in the
broadsheet. In doing so, it is allowed the widest latitude of choice as to what items should
see the light of day so long as they are relevant to a matter of public interest, pursuant to
its right of press freedom.12
Respondent Judges allegation that petitioner made it appear that an administrative
complaint was filed against him is without basis. From a careful perusal of the records, it
appears that while the Committee prayed for the imposition of administrative sanctions
against respondent Judge Majaducon for gross ignorance of the law, no formal administrativecomplaint was instituted separately from the petition for certiorari.
Finally, the statement that respondent Judge was grossly ignorant of the rules of law and
procedure does not constitute improper conduct that tends to impede, obstruct or degrade
the administration of justice. As correctly argued by petitioner, the phrase gross ignorance
of the rules of law and procedure is ordinarily found in administrative complaints and is a
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necessary description to support a petition which seeks the annulment of an order of a judge
wherein basic legal principles are disregarded.
In Spouses Bacar v. Judge De Guzman, Jr.,13 it was held that when the law is so elementary,
not to know it or to act as if a judge does not know it, constitutes gross ignorance of the law.
In this case, there was no showing that petitioner Pimentel, as representative of the
Committee, used the phrase to malign the trial court. Rather, it was used to express what he
believed as a violation of the basic principle of separation of powers.
In this connection, it bears stressing that the power to declare a person in contempt of court
must be exercised on the preservative, not vindictive principle, and on the corrective and not
retaliatory
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12 Lopez v. Court of Appeals, 145 Phil. 219; 34 SCRA 116 (1970).
13 338 Phil. 41; 271 SCRA 328 (1997).
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idea of punishment.14 This was aptly expressed in the case of Nazareno v. Barnes:15
A judge, as a public servant, should not be so thin-skinned or sensitive as to feel hurt or
offended if a citizen expresses an honest opinion about him which may not altogether be
flattering to him. After all, what matters is that a judge performs his duties in accordance
with the dictates of his conscience and the light that God has given him. A judge should never
allow himself to be moved by pride, prejudice, passion, or pettiness in the performance of his
duties. He should always bear in mind that the power of the court to punish for contempt
should be exercised for purposes that are impersonal, because that power is intended as a
safeguard not for the judges as persons but for the functions that they exercise.
WHEREFORE, in view of the foregoing, the petitions docketed as G.R. Nos. 136760 and 138378
are GRANTED. The resolution of the Regional Trial Court of General Santos City, Branch 23, in
Special Civil Case No. 496 dated November 11, 1998, which denied the Senate Blue Ribbon
Committees motion to dismiss, is REVERSED and SET ASIDE. The Writ of Preliminary
Injunction issued by the trial court on November 11, 1998 is DISSOLVED. The resolution dated
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April 15, 1999, which declared Senator Aquilino Q. Pimentel, Jr. guilty of indirect contempt
of court, is REVERSED and SET ASIDE. The petition for indirect contempt is ordered DISMISSED.
SO ORDERED.
Davide, Jr. (C.J.), Bellosillo, Puno, Vitug, Panganiban, Quisumbing, Carpio, Austria-
Martinez, Corona, Carpio-Morales, Callejo, Sr., Azcuna and Tinga, JJ., concur.
Sandoval-Gutierrez, J., On Official Leave.
Petitions granted, resolution dated November 11, 1998 reversed and set aside, writ of
preliminary injunction dissolved. Resolution dated April 15, 1999 reversed and set aside,
petition for indirect contempt dismissed.
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14 Oclarit v. Paderanga, G.R. No. 139519, 24 January 2001, 350 SCRA 260, 264-265.
15 220 Phil. 452; 136 SCRA 57 (1985).
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People vs. Soriano
Note.Certiorari lies where a court has acted without or in excess of jurisdiction or with
grave abuse of discretion. (Miranda vs. Abaya, 311 SCRA 617 [1999])
o0o [The Senate Blue Ribbon Committee vs. Majaducon, 407 SCRA 356(2003)]