URBAN BANK vs PEÑA

8/12/2019 URBAN BANK vs PEA

1/81

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URBAN BANK vs PEAonDecember 7, 2012

READ CASE DIGEST HERE.

Republic of the Philippines

SUPREME COURT

Manila

SECOND DIISION

G.R. No. 145817 Octobe! "#$ %&""

URBAN BANK, INC,Petitioner$

vs'

MAGDALENO M. PEA,Respondent'

( ) * ) * ) * ) * ) * ) * ) * ) * ) * ) * ) * *(

G.R. No. 145822 Octobe! "#$ %&""

DELFIN C. GONZALEZ, JR., BENJAMIN L. DE LEON, !" ERIC L. LEE, Petitioners$

vs'

MAGDALENO M. PEA,Respondent'( ) * ) * ) * ) * ) * ) * ) * ) * ) * ) * ) * *(

G.R. No. 1#25#2 Octobe! "#$ %&""

MAGDALENO M. PEA,Petitioner$

vs'

URBAN BANK, INC., TEODORO BORLONGAN, DELFIN C. GONZALEZ, JR., BENJAMIN L. DE

LEON, P. SIER$O %. DIZON, ERIC L. LEE, BEN T. LIM, JR., CORAZON BEJASA, !" ARTURO

MANUEL, JR., Respondents'

D E C I S I O N

SERENO, J.:

+hese consoli,ate, petitions be-an as a si.ple case fo! pa/.ent of se!vices !en,e!e, an, fo!

!ei.bu!se.ent of costs' +he case spun a 0eb of suits an, counte!*suits because of1 2"3 the si4e of the
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2/81

a0a!, fo! a-ent5s fee !en,e!e, in favo! of Att/' Ma-,aleno Pe6a 2Pe6a3 ) PhP%7$&&&$&&& ) !en,e!e, b/

the t!ial cou!t8 2%3 the cont!ove!sial e(ecution of the full 9u,-.ent a0a!, of PhP%:$;&&$&&& 2a-ent5s fee

plus !ei.bu!se.ent fo! costs an, othe! ,a.a-es3 pen,in- appeal8 an, 2a, the fou! atten,ant ci!cu.stances not afflicte, the o!i-inal case$ it 0oul, have been an open*an,*shut

!evie0 0he!e this Cou!t$ appl/in- even 9ust the .ini.u. e?uitable p!inciple a-ainst un9ust en!ich.ent

0oul, have easil/ affi!.e, the -!ant of fai! !eco.pense to Att/' Pe6a fo! se!vices he !en,e!e, fo! U!ban

Ban= if such ha, been o!,e!e, b/ the t!ial cou!t'

+hat Att/' Pe6a shoul, be pai, so.ethin- b/ U!ban Ban= is not in ,ispute ) the Cou!t of Appeals 2CA3

an, the Re-ional +!ial Cou!t 2R+C3 of Ba-o Cit/$ a-!ee, on that' @hat the/ ,isa-!ee, on is the basis an,

the si4e of the a0a!,' +he t!ial cou!t clai.s that the basis is an o!al cont!act of a-enc/ an, the a0a!,

shoul, be PhP%:$;&&&$&&&8 0hile$ the appellate cou!t sai, that Att/' Pe6a can onl/ be pai, un,e! the

le-al p!inciple a-ainst un9ust en!ich.ent$ an, the total a0a!, in his favo! shoul, onl/ a.ount to

PhP


3/81

,epa!tu!e of unautho!i4e, sub*tenants in t0ent/*th!ee co..e!cial establish.ents in an ente!tain.ent

co.poun, alon- Ro(as Bouleva!,' It involve, the filin- of e9ect.ent suits a-ainst the.$ Pe6a5s pe!sonal

,efense in the counte!*suits file, a-ainst hi.$ his settle.ent 0ith the. to the tune of PhP"$;&&$&&&$

0hich he a,vance, f!o. his o0n fun,s$ an, his !etention of secu!it/ -ua!,s an, e(pen,itu!e fo! othe!

costs a.ountin- to .o!e o! less PhP"$;&&$&&&' +he!e is no clai. b/ Att/' Pe6a of an/ se!vice be/on,

those' >e clai.s ,a.a-es f!o. the th!eats to his life an, safet/ f!o. the an-!/ tenants$ as 0ell as a

ve(atious collection suit he ha, to face f!o. a c!e,ito!*f!ien, f!o. 0ho. he bo!!o0e, PhP


4/81

O!,ina!il/$ the final !esolution b/ the Sup!e.e Cou!t of an appeal f!o. a t!ial cou!t ,ecision 0oul, have

auto.atic$ -ene!all/*un,e!stoo, conse?uences on an o!,e! issue, b/ the t!ial cou!t fo! e(ecution pen,in-

appeal' But this is no o!,ina!/ case$ an, the .a-nitu,e of the ,isp!opo!tions in this case is too .in,*

bo--lin- that this Cou!t .ust e(e!t e(t!a effo!t to co!!ect 0hateve! in9ustices have been occasione, in this

case' +hus$ ou! ,ispositions 0ill inclu,e ,etaile, inst!uctions fo! seve!al 9u,icial officials to i.ple.ent'

At co!e$ these petitions can be !esolve, if 0e ans0e! the follo0in- ?uestions1

"' @hat is the le-al basis fo! an a0a!, in favo! of Pe6a fo! the se!vices he !en,e!e, to U!ban Ban=G

Shoul, it be a cont!act of a-enc/ the fee fo! 0hich 0as o!all/ a-!ee, on as Pe6a clai.sG Shoul, it be the

application of the Civil Co,e p!ovisions on un9ust en!ich.entG O! is it to be base, on so.ethin- else o! a

co.bination of the le-al fin,in-s of both the R+C an, the CAG >o0 .uch shoul, the a0a!, beG

%' A!e the office!s an, ,i!ecto!s of U!ban Ban= liable in thei! pe!sonal capacities fo! the a.ount clai.e,

b/ Pe6aG


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+0o 0ee=s befo!e the lease ove! the Pasa/ p!ope!t/ 0as to e(pi!e$ ISCI an, U!ban Ban= e(ecute, a

Cont!act to Sell$ 0he!eb/ the latte! 0oul, pa/ ISCI the a.ount of PhP%7"$"%$&&& in install.ents fo! the

Pasa/ p!ope!t/'"#Both pa!ties a-!ee, that the final install.ent of PhP%;$&&&$&&& 0oul, be !elease, b/

the ban= upon ISCI5s ,elive!/ of full an, actual possession of the lan,$ f!ee f!o. an/ tenants' %&In the

.eanti.e$ the a.ount of the final install.ent 0oul, be hel, b/ the ban= in esc!o0' +he esc!o0 p!ovision

in the Cont!act to Sell$ thus$ !ea,s1

+he SEFFER 2ISCI3 a-!ees that f!o. the p!ocee,s of the pu!chase p!ices of the sub9ect P!ope!t/ 2Pasa/

p!ope!t/3$ the BUJER 2U!ban Ban=3 shall 0ithhol, the a.ount of P>P %;$&&&$&&&'&& b/ 0a/ of esc!o0

an, &(( 0(00 *&' o+!* *o *&0 SELLER o!(3 +o! '* "0('03 *o *&0 BU6ER o/ *&0 /+(( !"

)*+( o0'o! !" )o!*o( o/ *&0 S+0)* Po0*3, /00 /o *0!!*, o))+!*, 9+**0 o

o*&0 *+)*+0 o /o !3 ('0!, 0!)+!)0, 000!* o !3 o*&0 o*+)*'o! o

'0"'0!* *o *&0 /00 +0 !" o))+!)3 3 *&0 +30 o/ *&0 +0)* Po0*3 o '* 0:0)'0 o/

*&0 '-&* *o o;!0&' o0 *&0 +0)* Po0*3$ 0ithin a pe!io, of si(t/ 2&3 ,a/s f!o. the ,ate of

pa/.ent b/ the BUJER of the pu!chase p!ice of the sub9ect P!ope!t/ net of the a.ounts autho!i4e, to be

,e,ucte, o! 0ithhel, un,e! Ite. II 2a3 of this Cont!act' %"2E.phasis supplie,3

ISCI then inst!ucte, Pe6a$ 0ho 0as its ,i!ecto! an, co!po!ate sec!eta!/$ to ta=e ove! possession of the

Pasa/ p!ope!t/%%a-ainst the tenants upon the e(pi!ation of the lease' ISCI5s p!esi,ent$ M!' En!i?ue '

Montilla III 2Montilla3$ fa(e, a lette! to Pe6a$ confi!.in- the latte!5s en-a-e.ent as the co!po!ation5s a-ent

to han,le the eviction of the tenants f!o. the Pasa/ p!ope!t/$ to 0it1 %ales, Cr-,%nc-'*8 P8)-)) per sare'** 7,)))

Benamin - de

eon

One !lub "are in.anila Polo !lub 1wit

Associate .embersip2

35o- )8+9:'*9

De eons "are wasestimated at P . for te

sare and P'-)8 . for te

associate membersip-'*0 8,)8),)))

5otice of "ale onE?ecution on Personal

Property dated 78

Au#ust 7)))'*+

One !lub "are in

."!% 1"tock

!ertificate 5o- A6

'982'9)De eons sare was

estimated at P8),)))-'9' 8),)))

One !lub "are inBa#uio !ountry

!lub 1887(2'97

As of )* December '+++,one sare was sellin# at

least P09),)))-'9( 09),)))

P- "ier4o &-

Di>on

5o records a4ailable as

to properties le4ied,

#arnised or e?ecuted

pendin# appeal-


16/81


17/81

On %% Octobe! %&&"$ U!ban Ban=$ 0ith !espect to its pen,in- Rule 7; Petition in this Cou!t$ .ove, fo! the

app!oval of its PhP7&$&&&$&&& supe!se,eas bon, "#%an, !e?ueste, that the Cou!t sta/ the e(ecution

pen,in- appeal'"#


18/81


19/81

p!ohibite, f!o. t!ansfe!!in- petitione! U!ban Ban=5s MSCI club sha!es to the 0innin- bi,,e!s in the

e(ecution sale hel, on Octobe! ""$ %&&"'%%#2E.phasis supplie,3

On Dece.be! %&&%$ Pe6a .ove, that the Cou!t5s Resolution be !ecalle,$ because he 0as not -iven

an oppo!tunit/ to be hea!, on U!ban Ban=5s Motion fo! Cla!ification$ 0hich 0as sent to a ,iffe!ent

counsel'%


20/81

Inte!veno! Uni.e-a then !e?ueste, that a 0!it of possession be issue, in its favo! cove!in- the "&

con,o.iniu. units sol, ,u!in- the public auction'%7%+he Cou!t !e?ui!e, the pa!ties to file thei! co..ents

on the !e?uest'%7


21/81

@hethe! o! not an a-enc/ has been c!eate, is ,ete!.ine, b/ the fact that one is !ep!esentin- an, actin-

fo! anothe!'%;


22/81


23/81


24/81

+he se?uence of fast*.ovin- ,evelop.ents$ e,-e, 0ith a sense of panic$ 0ith !espect to the ,ecision of

the R+C*Pasa/ Cit/ to !ecall the te.po!a!/ !est!ainin- o!,e! an, issue a b!ea=*open o!,e! on "#

Dece.be! "##7 in the i!st In9unction Co.plaint$ is hi-hl/ enli-htenin- to this Cou!t'

i!st$ Pe6a alle-e,l/ calle, up the p!esi,ent of ISCI$ Montilla$ 0ho$ acco!,in- to Pe6a$ confi!.e, to hi.

that the Pasa/ p!ope!t/ ha, in,ee, been sol, to U!ban Ban='

Secon,$ Pe6a alle-e,l/ tol, Montilla that he 2Pe6a3 0oul, be 0ith,!a0in- his -ua!,s f!o. the p!ope!t/

because of the b!ea=*open o!,e! f!o. the R+C*Pasa/ Cit/'

+hi!,$ Montilla !e?ueste, Pe6a to suspen, the 0ith,!a0al of the -ua!,s 0hile ISCI -ets in touch 0ith

U!ban Ban='

ou!th$ appa!entl/ in vie0 of Montilla5s effo!ts$ Be9asa$ an office! of U!ban Ban= calle, Pe6a an,

acco!,in- to the latte!$ tol, hi. that U!ban Ban= 0oul, continue !etainin- his se!vices an, fo! hi. to

please continue 0ith his effo!t to secu!e the p!ope!t/'

ifth$ this state.ent of Be9asa 0as not enou-h fo! Pe6a an, he insiste, that he be enable, to tal= 0ith no

less than the P!esi,ent of U!ban Ban=$ Bo!lon-an' At this point$ Be9asa -ave hi. the phone nu.be! of

Bo!lon-an'

Si(th$ i..e,iatel/ afte! the conve!sation 0ith Be9asa$ Pe6a calls Bo!lon-an an, tells Bo!lon-an that

violence .i-ht e!upt in the p!ope!t/ because the Pasa/ Cit/ police.en$ 0ho 0e!e s/.pathetic to the

tenants$ 0e!e th!eatenin- to fo!ce thei! 0a/ th!ou-h the p!ope!t/'

At this point$ if in,ee, this conve!sation too= place$ 0hich Bo!lon-an contests$ 0hat 0oul, have been the

!esponse of Bo!lon-anG An/ p!u,ent p!esi,ent of a ban=$ 0hich has 9ust pu!chase, a PhP%7&$&&&$&&&

p!ope!t/ pla-ue, b/ unautho!i4e, an, un!ul/ sub*tenants of the p!evious o0ne!$ 0oul, have sou-ht to

continue the possession of ISCI$ th!u Pe6a$ an, he 0oul, have a-!ee, to the !easonable !e?uests of

Pe6a' Bo!lon-an coul, also have sai, that the p!oble. of havin- the sub*tenants e9ecte, is co.pletel/

ISCI5s an, ISCI shoul, !esolve the .atte! on its o0n that 0ithout bothe!in- the ban=$ 0ith all its othe!

p!oble.s' But the specte! of violence$ especiall/ as ni-ht 0as app!oachin- in a ne0l/*bou-ht p!ope!t/ of

U!ban Ban=$ 0as not so.ethin- that an/ publicl/*liste, ban= 0oul, 0ant publici4e,' +o the e(tent that the

violence coul, be p!evente, b/ the p!esi,ent of U!ban Ban=$ it is e(pecte, that he 0oul, opt to have it

p!evente,'


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26/81

petitione!*!espon,ent ban=$ the latte! ,i, not inte!pose an/ ob9ection o! .ove to ,is.iss the co.plaint on

the basis of his lac= of autho!it/ to !ep!esent its inte!est as the o0ne! of the p!ope!t/' @hen he

successfull/ ne-otiate, 0ith the tenants !e-a!,in- thei! ,epa!tu!e f!o. its Pasa/ p!ope!t/$ still no p!otest

0as hea!, f!o. it' Afte! possession 0as tu!ne, ove! to the ban=$ the tenants accepte, PhP"$;&&$&&&

f!o. Pe6a$ in full an, final settle.ent of thei! clai.s a-ainst U!ban Ban=$ an, not a-ainst ISCI' %:

In all these instances$ petitione!*!espon,ent ban= ,i, not !epu,iate the actions of Pe6a$ even if it 0as full/

a0a!e of his !ep!esentations to thi!, pa!ties on its behalf as o0ne! of the Pasa/ p!ope!t/' Its tacit

ac?uiescence to his ,ealin-s 0ith !espect to the Pasa/ p!ope!t/ an, the tenants spo=e of its intent to

!atif/ his actions$ as if these 0e!e its o0n' Even assu.in- a!-uen,o that it issue, no 0!itten autho!it/$

an, that the o!al cont!act 0as not substantiall/ establishe,$ the ban= ,ul/ !atifie, his acts as its a-ent b/

its ac?uiescence an, acceptance of the benefits$ na.el/$ the peaceful tu!nove! of possession of the

p!ope!t/ f!ee f!o. sub*tenants'

Even if$ ho0eve!$ Pe6a 0as constitute, as the a-ent of U!ban Ban=$ it ,oes not necessa!il/ p!eclu,e that

a thi!, pa!t/ 0oul, be liable fo! the pa/.ent of the a-enc/ fee of Pe6a' No! ,oes it p!eclu,e the le-al fact

that Pe6a 0hile an a-ent of U!ban Ban=$ 0as also an a-ent of ISCI$ an, that his a-enc/ f!o. the latte!

neve! te!.inate,' +his is because the autho!it/ -iven to Pe6a b/ both ISCI an, U!ban Ban= 0as co..on

) to secu!e the clean possession of the p!ope!t/ so that it .a/ be tu!ne, ove! to U!ban Ban=' +his is an

o!,ina!/ le-al pheno.enon ) that an a-ent 0oul, be an a-ent fo! the pu!pose of pu!suin- a sha!e, -oal

so that the co..on ob9ective of a t!ansfe!o! an, a ne0 t!ansfe!ee 0oul, be .et'

In,ee,$ the Civil Co,e e(p!essl/ ac=no0le,-e, instances 0hen t0o o! .o!e p!incipals have -!ante, a

po0e! of atto!ne/ to an a-ent fo! a )oo! *!)*'o!'%#+he a-enc/ !elationship bet0een an a-ent

an, t0o p!incipals .a/ even be consi,e!e, e(tin-uishe, if the ob9ect o! the pu!pose of the a-enc/ is

acco.plishe,'%&In this case$ Pe6a5s se!vices as an a-ent of both ISCI an, U!ban Ban= 0e!e en-a-e, fo!

one sha!e, pu!pose o! t!ansaction$ 0hich 0as to ,elive! the p!ope!t/ f!ee f!o. unautho!i4e, sub*tenants

to the ne0 o0ne! ) a tas= that Pe6a 0as able to achieve an, is entitle, to !eceive pa/.ent fo!'

+hat the a-enc/ bet0een ISCI an, Pe6a continue,$ that ISCI is to shoul,e! the a-enc/ fee an,

!ei.bu!se.ent fo! costs of Pe6a$ an, that U!ban Ban= neve! a-!ee, to pa/ hi. a "& a-enc/ fee isestablishe, an, suppo!te, b/ the follo0in-1

i!st$ the initial a-enc/ !elationship bet0een ISCI an, Pe6a pe!siste,' No p!oof 0as eve! offe!e, that the

lette! of % Nove.be! "##7 of M!' Montilla of ISCI to Pe6a$ fo! the latte! to i..e,iatel/ !ecove! an, ta=e

possession of the p!ope!t/ upon e(pi!ation of the cont!act of lease on %# Nove.be! "##7 0as


27/81

te!.inate,' It is a(io.atic that the appoint.ent of a ne0 a-ent fo! the sa.e business o! t!ansaction

!evo=es the p!evious a-enc/ f!o. the ,a/ on 0hich notice the!eof 0as -iven to the fo!.e! a-ent' %"If it is

t!ue that the a-enc/ !elationship 0as to be bo!ne b/ U!ban Ban= alone$ Pe6a shoul, have ,e.onst!ate,

that his p!evious a-enc/ !elationship 0ith ISCI is inco.patible 0ith his ne0 !elationship 0ith U!ban Ban=$

an, 0as thus te!.inate,'

Secon,$ instea,$ 0hat is on the !eco!, is that ISCI confi!.e, the continuation of this a-enc/ bet0een

Pe6a an, itself an, co..itte, to pa/ fo! the se!vices of Pe6a$ in its lette! to U!ban Ban= ,ate, "#

Dece.be! "##7 0hich !ea,s1

In line 0ith ou! 0a!!anties as the Selle! of the sai, p!ope!t/ an, ou! un,e!ta=in- to ,elive! to /ou the full

an, actual possession an, cont!ol of sai, p!ope!t/$ f!ee f!o. tenants$ occupants o! s?uatte!s an, f!o.

an/ obst!uction o! i.pe,i.ent to the f!ee use an, occupanc/ of the p!ope!t/ b/ U!ban Ban=$ ;0 &0

0!--0" *&0 0')0 o/ A**3. M-"(0!o M. P0 *o &o(" !" '!*'! o0'o! o/ *&0 o0*3

!" *o 00!* *&0 /o0 *0!!* o o))+!* /o 0!*0'!- o 0*+!'!- *o *&0 0'0.In vie0

of the t!ansfe! of the o0ne!ship of the p!ope!t/ to U!ban Ban=$ it .a/ be necessa!/ fo! U!ban Ban= to

appoint Att/' Pe6a li=e0ise as its autho!i4e, !ep!esentative fo! pu!poses of hol,in-.aintainin- continue,

possession of the sai, p!ope!t/ an, to !ep!esent U!ban Ban= in an/ cou!t action that .a/ be institute, fo!

the above.entione, pu!poses'

I* ' +!"0*oo" *&* !3 **o!03 /00, )o* o/ ('*'-*'o! !" !3 o*&0 )&-0 o 0:0!0 *&*

3 0 '!)+0" 0(*'0 *o *&0 0:0)'0 3 A**3. P0 o/ &' o00!*'o!0" "+*'0 &(( 0 /o

*&0 ))o+!* o/ I0( S+- Co!3an, an/ loss o! ,a.a-e that .a/ be incu!!e, to thi!, pa!ties

shall be ans0e!able b/ Isabela Su-a! Co.pan/'%%2E.phasis supplie,3

+hi!,$ Pe6a has neve! sho0n an/ 0!itten confi!.ation of his "& a-enc/ fee$ 0hethe! in a note$ lette!$

.e.o!an,u. o! boa!, !esolution of U!ban Ban=' An a-enc/ fee a.ountin- to PhP%7$&&&$&&& is not a

t!iflin- a.ount$ an, co!po!ations ,o not -!ant thei! p!esi,ents unilate!al autho!it/ to bin, the co!po!ation to

such an a.ount$ especiall/ not a ban=inco!po!ation 0hich is closel/ supe!vise, b/ the BSP fo! bein- a

business se!iousl/ i.bue, 0ith public inte!est' +he!e is nothin- on !eco!, e(cept the self*se!vin-

testi.on/ of Pe6a that Bo!lon-an a-!ee, to pa/ hi. this a.ount in the cont!ove!te, telephone

conve!sation'

ou!th$ 0hile o!,ina!il/$ uncont!a,icte, testi.on/ 0ill be acco!,e, its full 0ei-ht$ 0e cannot -!ant full

p!obative value to the testi.on/ of Pe6a fo! the follo0in- !easons1 2a3 Pe6a is not a c!e,ible 0itness fo!

testif/in- that he onl/ lea!ne, of the sale of the p!ope!t/ of "# Dece.be! "##7 0hen the acts of ISCI$ of

U!ban Ban= an, his o0n up to that point all in,icate, that he .ust have =no0n about the sale to U!ban


28/81

Ban=8 an, 2b3 it is inc!e,ible that U!ban Ban= 0ill a-!ee to a,, anothe! PhP%7$&&&$&&& to the cost of the

p!ope!t/ b/ a-!eein- to the a-enc/ fee ,e.an,e, b/ Pe6a' No p!u,ent an, !easonable pe!son 0oul,

a-!ee to e(pose his co!po!ation to a ne0 liabilit/ of PhP%7$&&&$&&& even if$ in this case$ a !efusal 0oul,

lea, to the Pasa/ Cit/ police.en an, unautho!i4e, sub*tenants ente!in- the -ua!,e, p!ope!t/ an, 0oul,

possibl/ e!upt in violence'

Pe6a5s account of an o!al a-!ee.ent 0ith U!ban Ban= fo! the pa/.ent of PhP%7$&&&$&&& is 9ust too .uch

fo! an/ cou!t to believe' @hateve! .a/ be the a-!ee.ent bet0een Pe6a an, ISCI fo! co.pensation is not

befo!e this Cou!t' +his is not to sa/$ ho0eve!$ that U!ban Ban= has no liabilit/ to Pe6a' It has' Pa/.ent to

hi. is !e?ui!e, because the Civil Co,e ,e.an,s that no one shoul, be un9ustl/ en!iche, at the e(pense

of anothe!' +his pa/.ent is to be .easu!e, b/ the stan,a!,s of ?uantu. .e!uit'

Amount of CompensationA-enc/ is p!esu.e, to be fo! co.pensation' But because in this case 0e fin, no evi,ence that U!ban

Ban= a-!ee, to pa/ Pe6a a specific a.ount o! pe!centa-e of a.ount fo! his se!vices$ 0e tu!n to the

p!inciple a-ainst un9ust en!ich.ent an, on the basis of ?uantu. .e!uit'

Since the!e 0as no 0!itten a-!ee.ent 0ith !espect to the co.pensation ,ue an, o0e, to Att/' Pe6a

un,e! the lette! ,ate, "# Dece.be! "##7$ the Cou!t 0ill !eso!t to ,ete!.inin- the a.ount base, on the

0ell*establishe, !ules on ?uantu. .e!uit'

A-enc/ is p!esu.e, to be fo! co.pensation' %


29/81


30/81


31/81

II

T&0 )oo*0 o//')0 !" "'0)*o o/ U! B! 0 !o* o('"'(3 o 0o!((3 ('(0 ;'*& *&0'

o0*'0 /o *&0 )oo*0 (''('*3 o/ U! B! *o A**3. P0.

+he obli-ation to pa/ Pe6a5s co.pensation$ ho0eve!$ falls solel/ on U!ban Ban=' Absent an/ p!oof that

in,ivi,ual petitione!s as ban= office!s acte, in ba, faith o! 0ith -!oss ne-li-ence o! assente, to a patentl/

unla0ful act$ the/ cannot be hel, soli,a!il/ liable to-ethe! 0ith the co!po!ation fo! se!vices pe!fo!.e, b/

the latte!5s a-ent to secu!e possession of the Pasa/ p!ope!t/' +hus$ the t!ial cou!t ha, in,ee, co..itte,

-!ave abuse of ,isc!etion 0hen it issue, a !ulin- a-ainst the ei-ht in,ivi,ual ,efen,ant ban= ,i!ecto!s an,

office!s an, its Decision shoul, be absolutel/ !eve!se, an, set asi,e'

A co!po!ation$ as a 9u!i,ical entit/$ .a/ act onl/ th!ou-h its ,i!ecto!s$ office!s an,

e.plo/ees'%:Obli-ations incu!!e, as a !esult of the acts of the ,i!ecto!s an, office!s as co!po!ate a-ents

a!e not thei! pe!sonal liabilities but those of the co!po!ation the/ !ep!esent' %:+o hol, a ,i!ecto! o! an

office! pe!sonall/ liable fo! co!po!ate obli-ations$ t0o !e?uisites .ust concu!1 2"3 the co.plainant .ust

alle-e in the co.plaint that the ,i!ecto! o! office! assente, to patentl/ unla0ful acts of the co!po!ation$ o!

that the office! 0as -uilt/ of -!oss ne-li-ence o! ba, faith8 an, 2%3 the co.plainant .ust clea!l/ an,

convincin-l/ p!ove such unla0ful acts$ ne-li-ence o! ba, faith' %::+o hol, a ,i!ecto!$ a t!ustee o! an office!

pe!sonall/ liable fo! the ,ebts of the co!po!ation an,$ thus$ pie!ce the veil of co!po!ate fiction$ ba, faith o!

-!oss ne-li-ence b/ the ,i!ecto!$ t!ustee o! office! in ,i!ectin- the co!po!ate affai!s .ust be establishe,

clea!l/ an, convincin-l/'%:#

Pe6a faile, to alle-e an, convincin-l/ sho0 that in,ivi,ual ,efen,ant ban= ,i!ecto!s an, office!s assente,

to patentl/ unla0ful acts of the ban=$ o! that the/ 0e!e -uilt/ of -!oss ne-li-ence o! ba, faith' Cont!a!/ to

his clai.$ the Co.plaint%#&in the lo0e! cou!t neve! alle-e, that in,ivi,ual ,efen,ants ac?uiesce, to an

unla0ful act o! 0e!e -!ossl/ ne-li-ent o! acte, in ba, faith' %#"Neithe! is the!e an/ specific alle-ation of

-!oss ne-li-ence o! action in ba, faith that is att!ibutable to the in,ivi,ual ,efen,ants in pe!fo!.ance of

thei! official ,uties'

In an/ event$ Pe6a ,i, not a,,uce an/ p!oof that the ei-ht in,ivi,ual ,efen,ants pe!fo!.e, unla0ful acts

o! 0e!e -!ossl/ ne-li-ent o! in ba, faith' Asi,e f!o. the -ene!al alle-ation that the/ 0e!e co!po!ate

office!s o! .e.be!s of the boa!, of ,i!ecto!s of U!ban Ban=$ !o 0)'/') )* ;00 ((0-0" !" o0"

*o ;!* /'!"'!- o/ o('"3 (''('*3' At .ost$ petitione!s Bo!lon-an$ Be9asa an, Manuel 0e!e

i,entifie, as those 0ho ha, p!ocesse, the a-enc/ a-!ee.ent 0ith Pe6a th!ou-h thei! telephone

conve!sations 0ith hi. an,o! 0!itten autho!i4ation lette!'

Asi,e f!o. Bo!lon-an$ Be9asa an, Manuel$ Att/' Pe6a in the co.plaint pointe, to no specific act o!

ci!cu.stance to 9ustif/ the inclusion of Delfin C' on4ale4$ H!'$ Ben9a.in F' ,e Feon$ P' Sie!vo >' Di4on$


32/81

E!ic F' Fee$ an, Ben +' Fi.$ H!'$ e(cept fo! the fact that the/ 0e!e .e.be!s of the Boa!, of Di!ecto!s of

U!ban Ban= at that ti.e' +hat the five othe! .e.be!s of the Boa!, of Di!ecto!s 0e!e e(clu,e, f!o.

Pe6a5s co.plaint hi-hli-hts the peculia!it/ of thei! inclusion' @hat is .o!e$ the co.plaint .ista=enl/

inclu,e, B0! 6. L', J'$ 0ho ha, not even been a .e.be! of the Boa!, of Di!ecto!s of U!ban Ban=' In

an/ case$ his fathe! an, na.esa=e$ Ben +' Fi.$ S!'$ 0ho ha, been a ,i!ecto! of the ban= at that ti.e$ ha,

al!ea,/ passe, a0a/ in "##'

In !ulin- fo! the soli,a!/ liabilit/ of the othe! ban= ,i!ecto!s$ the ,ecision of the t!ial cou!t hin-e, solel/ on

the pu!po!te, a,.ission of A!tu!o Manuel$ H!'$ that the t!ansactions 0ith Att/' Pe6a 0e!e app!ove, b/ the

Boa!, of Di!ecto!s1

In this case$ plaintiff testifie, as to the pe!sonal pa!ticipation of ,efen,ants +e, Bo!lon-an an, Co!a4on

Be9asa in the sub9ect t!ansaction' On the othe! han,$ 0ith !espect to the othe! ,efen,ants$ it 0as the

,efen,ants the.selves$ th!ou-h 0itness A!tu!o Manuel$ H!'$ ;&o "'**0" *&* (( *&0 *!)*'o!

'!o(0" '! *&' )0 ;00 o0" 3 *&0 o" o/ "'0)*o ' +hus$ the cou!t has sufficient basis to

hol, the ,i!ecto!s 9ointl/ an, seve!all/ liable 0ith ,efen,ant U!ban Ban=$ Inc' %#%2E.phasis supplie,3

+he Decision of the R+C*Ba-o Cit/ .ust be utte!l/ !e9ecte, on this point because its conclusion of an/

cause of action$ .uch less actual le-al liabilit/ on the pa!t of U!ban Ban=5s co!po!ate office!s an,

,i!ecto!s a!e sho!n of an/ factual fin,in-' +hat the/ assente, to the t!ansactions of the ban= 0ith !espect

to Att/' Pe6a5s se!vices 0ithout an/ sho0in- that these co!po!ate actions 0e!e patentl/ unla0ful o! that

the office!s 0e!e -uilt/ of -!oss ne-li-ence o! ba, faith is insufficient to hol, the. soli,a!il/ liable 0ith

U!ban Ban=' It see.s absu!, that the t!ial cou!t 0ill hol, the i.plea,e, selecte, .e.be!s of the Boa!, of

Di!ecto!s onl/$ but not the othe!s 0ho also pu!po!te,l/ app!ove, the t!ansactions' Neithe! is the !eason

behin, the fin,in- of soli,a!iness 0ith U!ban Ban= in such liabilit/ e(plaine, at all' It is voi, fo!

co.pletel/ bein- ,evoi, of facts an, the la0 on 0hich the fin,in- of liabilit/ is base,'

+he Cou!t of Appeals co!!ectl/ !e9ecte, the clai. of pe!sonal liabilit/ a-ainst the in,ivi,ual petitione!s

0hen it hel, as follo0s1

+he plaintiff*appellee5s co.plaint befo!e the cou!t a ?uo ,oes not point to an/ pa!ticula! act of eithe! one

o! all of the ,efen,ants*appellants that 0ill sub9ect the. to pe!sonal liabilit/' >is co.plaint .e!el/ asse!ts

that ,efen,ant Bo!lon-an an, Att/' Be9asa acte, fo! an, in behalf of U!ban Ban= in secu!in- his se!vices

in p!otectin- the ban=5s ne0l/ ac?ui!e, p!ope!t/' >ence$ @e cannot allo0 the sa.e' %#ence$ onl/ U!ban Ban=$ not in,ivi,ual ,efen,ants$ is liable to pa/ Pe6a5s co.pensation fo! se!vices he

!en,e!e, in secu!in- possession of the Pasa/ p!ope!t/' Its liabilit/ in this case is$ ho0eve!$ 0ithout

p!e9u,ice to its possible clai. a-ainst ISCI fo! !ei.bu!se.ent un,e! thei! sepa!ate a-!ee.ents'

III

Co!'"0'!- *&0 o(+*0 !+(('/')*'o! o/ *&0 *'( )o+* D0)''o!, *&0 o)00"'!- ''!- /o

*&0 0:0)+*'o! 0!"'!- 0( 0" o! *&0 '" D0)''o! ' ('0;'0 )o(0*0(3 )*0".

Since the t!ial cou!t5s .ain Decision a0a!,in- PhP%:$;&&$&&& in favo! of Pe6a has been nullifie, above$

the e(ecution pen,in- appeal atten,ant the!eto$ as a !esult$ no lon-e! has an/ le- to stan, on an, is thusco.pletel/ vacate,'

+o !ecall$ p!io! to the filin- of U!ban Ban= of its notice of appeal in the .ain case$ %#Pe6a .ove, on &

Hune "### fo! e(ecution pen,in- appeal%#of the Decision$%#:0hich ha, a0a!,e, hi. a total of

PhP%:$;&&$&&& in co.pensation an, ,a.a-es'%##In suppo!tin- his p!a/e! fo! ,isc!etiona!/

e(ecution$ P0 )'*0" !o o*&0 0o! *&! *&0 0!"'!- 0*0 )''( )*'o! /o )o((0)*'o! /'(0"

-'!* &' 3 )0"'*o$ 0ho 0as ,e.an,in- pa/.ent of a PhP


34/81

officio she!iff$ e(pe,itiousl/ issue, a @!it of E(ecution on the sa.e ,a/'


35/81

effect' In fact$ the Rules of Cou!t e(p!essl/ p!ovi,e fo! the possibilit/ of !eve!sal$ co.plete o! pa!tial$ of a

final 9u,-.ent 0hich has been e(ecute, on appeal'


36/81


37/81

0ithin co.petence of the t!ial cou!t$ in !esolvin- a .otion fo! e(ecution pen,in- appeal$ to !ule that the

appeal is patentl/ ,ilato!/ an, !el/ on the sa.e as its basis fo! fin,in- -oo, !eason to -!ant the .otion'

Onl/ an appellate cou!t can app!eciate the ,ilato!/ intent of an appeal as an a,,itional -oo, !eason in

uphol,in- an o!,e! fo! e(ecution pen,in- appeal 0hich .a/ have been issue, b/ the t!ial cou!t fo! othe!

-oo, !easons$ o! in cases 0he!e the .otion fo! e(ecution pen,in- appeal is file, 0ith the appellate cou!t

in acco!,ance 0ith Section %$ pa!a-!aph 2a3$ Rule


38/81

0'!- 'o0" 3 *&0 )0"'*o *o *&0 0+"')0 o/ ('!*'//.Secon,l/$ a p!eli.ina!/ attach.ent has

al!ea,/ been issue, an, this 0oul, !est!ict the plaintiff f!o. f!eel/ e(e!cisin- his !i-hts ove! his p!ope!t/

,u!in- the pen,enc/ of the case'

In thei! opposition$ ,efen,ants clai. that plaintiff5s in,ebte,ness is a !use$ ho0eve!$ ,efen,ants faile, to

a,,uce evi,ence to suppo!t its clai.'

+he cou!t fin,s that the pen,enc/ of the case fo! collection of .one/ a-ainst plaintiff is a -oo, !eason fo!

i..e,iate e(ecution'


39/81

appeal 0he!ein petitione!s 0e!e able to secu!e an a,.ission f!o. hi. that he has so.e assets 0hich

coul, be attache, b/ Robe!to I-nacio an, that he 0oul, p!obabl/ have othe! assets left even afte! the

attach.ent'


40/81

allo0 e(ecution pen,in- appeal$ since the liabilit/ fo! the a0a!, to Pe6a 0as .a,e 2albeit$ .ista=enl/3

soli,a!il/ liable to-ethe! 0ith the ban= office!s'

In le(o Manufactu!in- Co!p' v' Colu.bus oo,$ Inc'$ an, Pacific Meat Co.pan/$ Inc'$ ence$ ha, the 9u,-.ent been uphel, on

appeal$ Att/' Pe6a coul, have ,e.an,e, pa/.ent f!o. an/ of the nine ,efen,ants' +hus$ it 0as a

.ista=e fo! the Cou!t of Appeals to have affi!.e, e(ecution pen,in- appeal base, solel/ on the

!eceive!ship of U!ban Ban=$ 0hen the!e 0e!e ei-ht othe! in,ivi,ual ,efen,ants$ 0ho 0e!e soli,a!il/ liable

but 0e!e not sho0n to have been insolvent' Since U!ban Ban=5s co*,efen,ants 0e!e not foun, to have

been insolvent$ the!e 0as no -oo, !eason fo! the Cou!t of Appeals to i..e,iatel/ o!,e! e(ecution


41/81

pen,in- appeal$ since Att/' Pe6a5s a0a!, coul, have been satisfie, b/ the ei-ht othe! ,efen,ants$

especiall/ 0hen the ,e Feon !oup file, its supe!se,eas bon,'

It see.s incon-!uous fo! Att/' Pe6a to be acco!,e, the benefit of e!!oneousl/ i.plea,in- seve!al ban=

,i!ecto!s$ 0ho ha, no ,i!ect han, in the t!ansaction$ but at the sa.e ti.e$ concent!atin- solel/ on U!ban

Ban=5s inabilit/ to pa/ to 9ustif/ e(ecution pen,in- appeal$ !e-a!,less of the financial capacit/ of its othe!

co*,efen,ants' @o!se$ he capitali4e, on the insolvenc/ an,o! !eceive!ship of U!ban Ban= to lev/ o!

-a!nish p!ope!ties of the ei-ht othe! in,ivi,ual ,efen,ants$ 0ho 0e!e neve! sho0n to have been

incapable of pa/in- the 9u,-.ent ,ebt in the fi!st place' +he ,isposition on the e(ecution pen,in- appeal

.a/ have been ,iffe!ent ha, Att/' Pe6a file, suit a-ainst U!ban Ban= alone .inus the ban= office!s an,

the sa.e ban= 0as foun, solel/ liable fo! the a0a!, an, late! on ,ecla!e, un,e! !eceive!ship'

In a,,ition$ a 9u,-.ent c!e,ito! of a ban=$ 0hich has been o!,e!e, b/ the BSP to be sub9ect of!eceive!ship$ has to fall in line li=e eve!/ othe! c!e,ito! of the ban= an, file its clai. un,e! the p!ope!

p!oce,u!es fo! ban=s that have been ta=en ove! b/ the PDIC' Un,e! Section


42/81

*'/)*'o! o/ *&0' "0*, !" )!!o* 0 //o"0" 0)'( *0*0!* 3 ! 0:0)+*'o! 0!"'!-

0( ;'*& 00)* *o *&0 ! 0*.


43/81

i!st$ cont!a!/ to the -ene!al !ules on e(ecution$ no oppo!tunit/ 0as -iven to U!ban Ban= o! the othe! co*

,efen,ants to pa/ the 9u,-.ent ,ebt in cash o! ce!tifie, chec='


44/81

pen,in- appeal ove! thei! p!ope!ties' In fact$ even U!ban Ban= ten,e!e, a sepa!ate supe!se,eas bon, of

e?ual a.ount 0ith this Cou!t$ fo! a total of PhP:&$&&&$&&& to secu!e an/ 9u,-.ent to be a0a!,e, to Att/'

Pe6a' +hat e(ecution sales ove! the p!ope!ties of 9u,-.ent ,ebto!s p!ocee,e, ,espite the th!ee*fol,

value of secu!ities co.pa!e, to the a.ount of the a0a!, in,icates ba, faith$ if not .alice$ 0ith !espect to

the con,uct of the e(ecution pen,in- appeal'

Inas.uch as the R+C Decision has al!ea,/ been vacate, an, an in,epen,ent fin,in- has been .a,e b/

this Cou!t of the co.plete nullit/ of the o!,e! -!antin- e(ecution pen,in- appeal$ it follo0s that all acts

pu!suant to such o!,e! an, its 0!it a!e also voi,' It ,oes not follo0 ho0eve!$ that the Cou!t5s Decision in

Co v' Silla,o!$en!/ +!ocino of R+C*Ba-o

Cit/$ 0ho issue, the Special O!,e! an, ha, supe!viso!/ autho!it/ ove! the p!ocee,in-s of the e(ecution

pen,in- appeal$ 0oul, have been inclu,e, un,e! such a,.inist!ative investi-ation b/ the Office of the

Cou!t A,.inist!ato!$ 0e!e it not fo! his !eti!e.ent f!o. the 9u,icial se!vice'

)he Courts Suspension Order o E3ecution Pending ppe&

Actin- on Att/' Pe6a5s O.nibus Motion ,ate, Dece.be! %&&%


45/81

supe!se,eas bon, file, 0as sufficient an, consi,e!in- the subse?uent fin,in- that the sai, e(ecution

pen,in- appeal lac=s an/ sufficient -!oun, fo! the -!ant the!eof'

As to the theo!/ of Att/' Pe6a that the actuations of Hustice Ca!pio$ the then ponente of this case$ in

,!aftin- the ?uestione, O!,e! shoul, positivel/ i.pact his .otion fo! !econsi,e!ation of the sa.e$ the

Cou!t fin,s this a!-u.ent utte!l/ ,evoi, of .e!it'

In the fi!st place$ that ?uestione, O!,e! 0as not the ,ecision of onl/ a sin-le .e.be! of the Cou!t$ Hustice

Ca!pio$ but of the enti!e ,ivision to 0hich he belon-e,$ then co.pose, of !eti!e, Chief Hustice >ila!io

Davi,e$ Hustices Hose itu-$ Consuelo Jna!es*Santia-o an, A,olfo A4cuna' +his O!,e! 0as affi!.e, b/

the sa.e Division as its ,ul/*p!o.ul-ate, o!,e!' In !elation to this$ the affi!.ation b/ the Division of this

O!,e! ,e.onst!ates that the!e is no t!uth to Att/' Pe6a5s clai. that Hustice Ca!pio fab!icate, the O!,e!'

In the secon, place$ Att/' Pe6a5s clai. of un,ue inte!est a-ainst Hustice Ca!pio specificall/ 0ith !espectto the latte! havin- the instant case t!ansfe!!e, to his ne0 Division$ is base, on i-no!ance of the s/ste.

of assi-n.ent of cases in the Sup!e.e Cou!t' @hen a !eo!-ani4ation of the Cou!t ta=es place in the fo!.

of a chan-e in the co.position of Divisions$ ,ue to the !eti!e.ent o! loss of a .e.be!$ the Hustices ,o not

the!eb/ lose thei! case assi-n.ents but b!in- the latte! 0ith the. to thei! ne0 Divisions'


46/81


47/81

0ho. have not been foun, in,ivi,uall/ o! soli,a!il/ liable$ a!e entitle, to full !estitution of all thei!

p!ope!ties levie, upon an, -a!nishe,$ since the/ have been e(one!ate, f!o. co!po!ate liabilit/ 0ith

!espect to the ban=5s a-enc/ !elationship 0ith Pe6a'

Consi,e!in- the .oneta!/ a0a!, to Pe6a an, the lev/ on an, e(ecution of so.e of its p!ope!ties pen,in-

appeal$ U!ban Ban=$ no0 EIB$ .a/ satisf/ the 9u,-.ent in the .ain case an, at the sa.e ti.e full/

!ecove! all the p!ope!ties e(ecute, o0in- to the co.plete !eve!sal of the t!ial cou!t5s a0a!,e, ,a.a-es' It

.ust i..e,iatel/ an, full/ pa/ the 9u,-.ent ,ebt befo!e the enti!e lot of levie, p!ope!ties$ sub9ect of the

e(ecution pen,in- appeal$ is !esto!e, to it'


48/81


49/81

!o* 30* 00! *!/00"' +he thi!,*pa!t/ pu!chase! shall$ ho0eve!$ be entitle, to !ei.bu!se.ent f!o.

the 9u,-.ent c!e,ito!$ 0ith inte!est'

Consi,e!in- the fo!e-oin- points$ the Cou!t a,opts 0ith .o,ification the !ules of !estitution e(poun,e, b/

!eti!e, Hustice lo!en4 D' Re-ala,o in his se.inal 0o!= on civil p!oce,u!e$


50/81

esc!o0 fo! the benefit of Isabela Su-a! Co.pan/$ Inc' +he Co.plaint a-ainst the ei-ht othe! in,ivi,ual

petitione!s$ na.el/ +eo,o!o Bo!lon-an 23$ Delfin C' on4ales$ H!'$ Ben9a.in F' ,e Feon$ P' Sie!vo '

Di4on$ E!ic F' Fee$ Ben J' Fi.$ H!'$ Co!a4on Be9asa$ an, A!tu!o Manuel$ H!'$ is he!eb/ DISMISSED'

+he P0*'*'o! /o R0'0; o! C0*'o'file, b/ petitione!s U!ban Ban= 2' R' No' "7;:"3 an,

Ben9a.in F' ,e Feon$ Delfin on4ale4$ H!'$ an, E!ic F' Fee 2' R' No' "7;:%%3 a!e

he!eb/ GRANTEDun,e! the follo0in- con,itions1

a' U!ban Ban=$ +eo,o!o Bo!lon-an$ Delfin C' on4ale4$ H!'$ Ben9a.in F' ,e Feon$ P' Sie!vo >' Di4on$ E!ic

F' Fee$ Ben J' Fi.$ H!'$ Co!a4on Be9asa$ an, A!tu!o Manuel$ H!'$ 2!espon,ent ban= office!s3 shall be

!esto!e, to full o0ne!ship an, possession of all p!ope!ties e(ecute, pen,in- appeal8

b' If the p!ope!t/ levie, o! -a!nishe, has been sol, on e(ecution pen,in- appeal an, Att/' Ma-,aleno

Pe6a is the 0innin- bi,,e! o! pu!chase!$ he .ust full/ !esto!e the p!ope!t/ to U!ban Ban= o! !espon,ent

ban= office!s$ an, if actual !estitution of the p!ope!t/ is i.possible$ then he shall pa/ the full value of the

p!ope!t/ at the ti.e of its sei4u!e$ 0ith inte!est8

c' If the p!ope!t/ levie, o! -a!nishe, has been sol, to a thi!, pa!t/ pu!chase! at the public auction$

an, *'*(0 *o *&0 o0*3 & !o* 00! ('"(3 !" *'0(3 *!/00" *o *&0 !0 o/ *&0 *&'" *3 $

the o0ne!ship an, possession of the p!ope!t/ shall be !etu!ne, to U!ban Ban= o! !espon,ent ban=

office!s$ sub9ect to the thi!, pa!t/5s !i-ht to clai. !estitution fo! the pu!chase p!ice pai, at the e(ecution

sale a-ainst the 9u,-.ent c!e,ito!8

,' If the pu!chase! at the public auction is a thi!, pa!t/$ an, *'*(0 *o *&0 o0*3 & (0"3 00!('"(3 !" *'0(3 *!/00" *o *&0 !0 o/ *&* *3 $ Att/' Pe6a .ust pa/ U!ban Ban= o!

!espon,ent ban= office!s the a.ount !eali4e, f!o. the she!iff5s sale of that p!ope!t/$ 0ith inte!est f!o. the

ti.e the p!ope!t/ 0as sei4e,'

+he O.nibus Motion ,ate, Dece.be! %&&% file, b/ Att/' Pe6a an, Motion fo! Reconsi,e!ation ,ate,

"& Dece.be! %&&% file, b/ Uni.e-a 0ith !espect to the Cou!t5s O!,e! ,ate, "< Nove.be! %&&% is

he!eb/ DENIED'

+he Office of the Cou!t A,.inist!ato! is o!,e!e, to con,uct an investi-ation into the possible

a,.inist!ative liabilities of Att/' Hosephine Mutia*>a-a,$ the then R+C*Ba-o Cit/5s Cle!= of Cou!t$ an,Allan D' Silla,o!$ the then Deput/ She!iff of Ba-o Cit/$ fo! the i!!e-ula!ities atten,in- the e(ecution

pen,in- appeal in this case$ inclu,in- all 9u,icial office!s o! she!iffs in the va!ious places in 0hich

e(ecution 0as i.ple.ente,$ an, to sub.it a !epo!t the!eon 0ithin "%& ,a/s f!o. !eceipt of this Decision'


51/81

+he Office of the Cou!t A,.inist!ato! is also ,i!ecte, to .a=e !eco..en,ations fo! the p!evention of

abuses of 9u,icial p!ocesses in !elation to e(ecutions$ especiall/ those pen,in- appeal$ 0hethe! th!u

a,.inist!ative ci!cula!s f!o. this Cou!t o! th!u a !evision of the Rules of Cou!t$ 0ithin


52/81

VVA,,itional .e.be! vice H' Bienveni,o F' Re/es pe! Raffle ,ate, " Octobe! %&""'

VVVA,,itional .e.be! vice H' Hose P' Pe!e4 pe! S'O' No' """7'

"+he actual ceilin- a.ount fo! the levie,$ -a!nishe, o! e(ecute, p!ope!ties pen,in- appeal is unce!tain

because of the ,ea!th of !eco!,s' It see.s that the fi-u!e coul, tu!n out to be ve!/ hi-h$ consi,e!in- that

the enti!e U!ban Ban= Pla4a locate, in Sen' il Pu/at Avenue$ co!ne! Chino Roces Avenue$ Ma=ati Cit/

in the na.e of U!ban Ban= 0as app!aise, at a value of PhP%$:


53/81

sub*lease the 0hole o! substantiall/ all of the lease p!e.ises Pasa/ p!ope!t/ to an/ sin-le thi!, pa!t/$

0ithout the FESSOR5s ISCI5s consent in 0!itin-8 Q 2Cont!act of Fease ,ate, %# Nove.be! "#:7$ pa!' ;

at %8 !ollo 'R' No' "%;%$ ol' "$ at %#3

"7R+C Decision ,ate, %: Ma/ "###$ at "8 !ollo 2' R' No' "%;%3$ ol' "$ at ;&;'

";Bein- the P!esi,ent$ I fin, it p!ope! to info!. /ou about the non*!ene0al of the lease bet0een /ou as

lessee an, ou! co.pan/ as lesso! ove! the co.pan/5s p!ope!t/ situate, at Pasa/ Cit/$ 0hen the lease

e(pi!es on Nove.be! %#$ instant' 2ISCI5s Fette! ,ate, &7 eb!ua!/ "##78 !ollo ' R' No' "%;%$ ol' "$

at %:


54/81


55/81

specificall/$ !est!ainin- ,efen,ants 2tenants3 an, all pe!sons actin- in thei! behaves 2sic3$ f!o. ha!assin-

an, th!eatenin- plaintiff5s pe!sonnel an, f!o. fo!cefull/ an, unla0full/ inte!fe!in- 0ith plaintiff5s

possession of the p!ope!t/ until fu!the! o!,e!s f!o. this Cou!t' Q 2R+C O!,e! ,ate, "< Dece.be! "##7

in Civil Case No' #7*"%;8 E(hibit E* to E**c$ R+C !eco!,s$ ol'


56/81


57/81


58/81

#7+he Co.plaint file, a-ainst Pe6a 0as a civil action fo! collection of PhP


59/81

"&Petitione!s5 Co..entOpposition ,ate, "7 Ap!il %&&&8 !ollo 2' R' No' "7;:"3$ ol' "$ at


60/81

""#+he Special o!.e! Special +0elfth Division 0as co.pose, of Hustices Bienveni,o F' Re/es$ Robe!to

A' Ba!!ios$ an, Pe!lita H' +!ia +i!ona 2ponente3'

"%&CA Resolution ,ate, i-hlan,s Inte!national olf Club is

sellin- at PhP;&$&&& http1000'--aclubsha!es'co. last visite, " Octobe! %&""'3


61/81


62/81

"7#R+C O!,e! ,ate, ol,in-s$ Co!p'$ ,ate, & Dece.be! "###8 !ollo 2' R'

No' "7;:%%3$ ol' "$ at &:' 2At p!esent$ Ma=ati Spo!ts Club Sha!es A an, B a!e no0 sellin- at

P%&&$&&& an, P%


63/81

""Notice of Sale on E(ecution of Pe!sonal P!ope!t/ ,ate, Octobe! %&&&8 !ollo 2' R' No' "7;:%%3' ol'

%$ at %;%


64/81

""U!ban Ban=5s Manifestation an, Motion ,ate, %& Septe.be! %&&;$ at


65/81

":"R+C O!,e! ,ate, "# Dece.be! %&&&8 !ollo 2' R' No' "7;:%%3$ ol' %$ at %;;&*%;;%8 U!ban Ban=5s

Manifestation an, Motion ,ate, %& Septe.be! %&&;$ at 78 !ollo 2' R' No' "7;:"3$ ol' %$ at "%%'

":%Petitione! U!ban Ban=5s Manifestation an, Motion ,ate, %& Septe.be! %&&;$ at i-hlan,s Int5l ol, Club sells at PhP;&$&&&' http1000'--aclubsha!es'co. last visite, " Octobe!

%&""3

":


66/81

"#


67/81

%""Petitione! Bo!lon-an !oup$ co.p!ise, of in,ivi,ual ban= ,i!ecto!s an, office!s +eo,o!o Bo!lon-an$

Co!a4on M' Be9asa$ A!tu!o Manuel$ H!'$ Ben J' Fi.$ H!'$ an, P' Sie!vo >' Di4on$ 0as then !ep!esente, b/

the Pobla,o! Bautista W Re/es Fa0 Offices'

%"%Petitione! Bo!lon-an !oup5s Petition fo! Revie0 on Ce!tio!a!i ,ate, %" Nove.be! %&&&8 !ollo 2' R'

No' "7;:%%3$ ol' "$ at ::*#;&'

%"


68/81


69/81

auction sale' 2Petitione! U!ban Ban=5s Opposition ,ate, %# Ap!il %&&ei!s of Ra.os$ ' R' No' ";%%$ "7 Hul/ %&&;$ 7< SCRA 7&:$ citin- icto!ias Millin- Co'$

Inc' v' CA$


70/81

%;;@>EREORE$ in vie0 of the fo!e-oin- consi,e!ations$ the Ma/ %:$ %&&& Decision sic an, the

Octobe! "#$ %&&& sic Special O!,e! of the R+C of Ba-o Cit/$ B!anch %$ a!e he!eb/ ANNUFFED AND

SE+ ASIDE' >o0eve!$ the plaintiff*appellee in CA R C No' ;; is a0a!,e, the a.ount of P< Million

as !ei.bu!se.ent fo! his e(penses as 0ell as !easonable co.pensation fo! his effo!ts in clea!in- U!ban

Ban=5s p!ope!t/ of unla0ful occupants' +he a0a!, of e(e.pla!/ ,a.a-es$ atto!ne/5s fees an, costs of

suit a!e ,elete,$ the sa.e not havin- been sufficientl/ p!oven' +he petition fo! In,i!ect Conte.pt a-ainst

all the !espon,ents is DISMISSED fo! utte! lac= of .e!it' 2CA Decision CA R SP No' %#: W C No'

;; ,ate, & Nove.be! %&&


71/81

a!isin- f!o. the closu!e of the Aust!alian Club locate, in the fo!.e! Inte!national oo, Co.ple( alon-

Ro(as Bouleva!,$ Pasa/ Cit/$ Met!o Manila' 2Receipt ,ate, %: Ap!il "##;8 E(hibit BB$ R+C !eco!,s$

ol'e!.an Ponce an, Hulie Aba,8 E(hibit ;$ R+C

!eco!,s$ ol' 7$ at :"%'

%e!nan,e4$ ' R' No' "#$ "% eb!ua!/ %&&$ ;"; SCRA ;"8 Bach v' On-=i=o Kala0

Manhit W Aco!,a Fa0 Offices$ ' R' No' "&


72/81

collect f!o. hi. onl/ the p!incipal loane, a.ount$ he 0oul, still be entitle, to at least P


73/81


74/81


75/81


76/81


77/81

the "& con,o.iniu. units sol, to inte!veno! Uni.e-a$ an a.ount that is .o!e than th!ee*fou!ths of the

a0a!, in the .ain case'


78/81

sale of these con9u-al p!ope!ties con,ucte, b/ She!iff Silla,o!' She!iff Silla,o! 0as foun, to foun, -uilt/

of si.ple ne-lect of ,ut/ an, suspen,e, fo! a pe!io, of " .onth 0ithout pa/ 0ith a ste!n 0a!nin- that a

!epetition of the sa.e o! si.ila! acts 0ill be ,ealt 0ith .o!e seve!el/' 2Co' v' Silla,o!$ i,'3


79/81

Antonio B' Nachu!a3 ,ate, " Dece.be! %&&8 "&' Motion fo! Inhibition 2Re1 Hustice Pan-aniban3 ,ate,

%: Dece.be! %&&78 ""' Reite!ato!/ Motion to Recuse ,ate, &< Ma!ch %&& 2Re1 Hustice Pan-aniban38

"%' Motion to Inhibit 2Re1 Hustice Nachu!a3 ,ate, & Hanua!/ %&&:8 "


80/81

of an appeal$ but then$ evi,entl/ to avoi, in9ustice$ Section ; of the sa.e Rule p!ovi,es1 \@hen the

9u,-.ent e(ecute, is !eve!se, totall/ o! pa!tiall/ on appeal$ the t!ial cou!t$ on .otion$ afte! the case is

!e.an,e, to it$ .a/ issue such o!,e! of !estitution as e?uit/ an, 9ustice .a/ 0a!!ant un,e! the

ci!cu.stances'5 I a. a0a!e of no bette! p!inciple than that un,e!l/in- this p!ovision that can be applie, to

the case at ba!$ fo! he!e$ as in the case befo!e Us$ the o!,e! of i..e,iate e(ecution is conce,e,l/

autho!i4e, 0hen issue,$ but it is consi,e!e,$ in effect$ as losin- its le-al basis afte! the e(ecute, ,ecision

is !eve!se, o! .o,ifie,$ hence the necessit/ of e?uitable !estitution to the pa!t/ p!e9u,ice, b/ the

p!e.atu!e e(ecution' 2Dissentin- Opinion of Hustice Antonio P' Ba!!e,o in Ja!cia v' Cit/ of Ba-uio$ ' R'

No' F*%;%$ %# Ma/ "#&$


81/81

situation$ 0oul, .ean that the appeal 0as onl/ ,ilato!/ in cha!acte!' 2Inte!veno! Uni.e-a5s Repl/ ,ate,

%% Ma/ %&&

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URBAN BANK vs PEÑA

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