RULE 39 EXECUTION, SATISFACTION, EFFECTS A. Kinds of execution 1. Execution upon final judgments/FO (sec. 1) 1.

. Before trial court - Only final judgment, EXCEPT Interlocutory order of support. - even if appeal is still available to the other party 1. Judgment against the defendant under Rule 70 2. Judgments not stayed by appeal: injunctions, receivership, accounting and support unless the court directs otherwise (Sec. 4, Rule 39) 3. Judgments by QJA, appealable to the CA (Rule 43, Sec. 12) 2. Discretionary execution (Sec. 2, Rule 39) 1. Pending appeal. (trial court or appellate court) By motion with notice to the adverse party while trial court has still jurisdiction (appellate court if jurisdiction is lost), while trial court has possession of the records or record on appeal, upon good reasons to be stated in a special order. (Maceda, Jr. v. DBP, 372 Phil. 107, 1999) Good reasons for execution: 1) appeal was for delay (appellate court determines the frivolity of the appeal); 2) support is urgent; 3) insolvency of the judgment debtor; BUT 1) posting a bond is not good reason to justify execution pending appeal; 2) only on actual or compensatory damages, but not on award of moral and exemplary damages; deterioration of (Yasuda v. CA, GR 112569, 4/12/00) vessel-

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A corporation which obtained a favorable judgment cannot move for execution pending appeal on the ground of impending bankruptcy unlike individuals. (Diesel Construction Co.,Inc. v. Jollibee Foods Corp. ,GR 136805, 1/28/00) Court of Appeals cannot order execution pending appeal of its own decision, because it is not provided in the rules. ( Heirs of the late Justice Jose B.L. Reyes v. CA, GR 135180-81, 8/16/00)

2. Several, Separate and partial judgment-if appeal is allowed, execution may issue in proper cases. Stay of discretionary execution- sufficient supersedeas bond (Sec. 3, Rule 39); or a resort to Certiorari under Rule 65. Effect of reversal of executed judgment- restitution or reparation (Sec. 5) BUT : Since there is no right to redeem personal property, the rights of ownership are vested to the purchaser at the foreclosure (or execution) sale and are not entangled in any suspensive condition that is implicit in a redemptive period. (Paray v. Rodriguez, G.R. No. 132287, January 24, 2006, 479 SCRA 571, 580) B. Modes of Enforcing Execution of a judgment 1) By motion within 5 years from entry. 2) By Independent Action after 5 years from entry, but before judgment is barred by prescription. Suspension of the five or ten year periods: Period is suspended by agreement of the parties

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Institutions of proceedings supplementary to execution under Sec. 36; The delay was caused by debtors initiatives. (CENTRAL SURETY vs. PLANTERS PRODUCTS, GR 149053, 3/07/07) Notes: The levy was validly made within the 5 year period, the sale may be made even after, but should be within the ten year period. Judgment for support does not prescribe or become dormant, and may be executed by motion, except as to accrued support (installments) which may prescribe. Does not apply to special proceedings like land registration cases or the right to ask for writ of possession.(TING vs. HEIRS OF DIEGO LIRIO, GR 168913, 3/14/07; see Sta. Ana v. Menla, 111 Phil. 947, 1961) Venue- personal action, but if real property is involved, the action should be brought at the situs of the property.

C. Execution in case of death of party (Sec.7) a. b. Death of judgment obligee, upon application of executor/administrator or successor-in-interest Death of judgment obligor- if the judgment is for recovery of real/personal property or enforcement of lien thereon - execution may be enforced against his executor or administrator or successorin-interest Death of judgment obligor AFTER ACTUAL LEVY upon any of his property, the same may be sold for the satisfaction of the judgment obligation.

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(NOTE: If death comes BEFORE LEVY, the judgment is submitted as money claim in the estate) D. ISSUANCE, FORM and CONTENTS OF A WRIT OF EXECUTION E. HOW ENFORCED: Judgments for money a) immediate payment upon demand cash, certified bank check payable to judgment obligee (not to the sheriff) or any other form acceptable to him deliver directly to the judgment obligee or his representative if present; If NOT to the Clerk of Court within same day "a sheriff is not required to give the judgment debtor some time to raise cash [since] if time be given, the property may be placed in danger of being lost or absconded". (Villarin vs. Munasque, GR 169444, 9/17/08, citations omitted.)

b) satisfaction by levy judgment obligor has option to choose what to be levied upon In case the option is not exercised, sheriff to levy personal properties first and then real properties

c) garnishment of debts & credits (not capable of manual delivery) in possession and control of third parties Notice

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Garnishee submits a report within 5 days stating sufficient credits with him. IF not sufficient, state the amount in his possession. Notice to deliver to the judgment obligee within 10 days from such notice. If two or more garnishee holding sufficient credits, the choice belongs to the obligor if present, if not, the obligee.

Judgments for specific acts a) conveyance, delivery of deeds, or other specific acts; vesting title act may be done by another party directed by the court if the party disobeys the judgment conveyance of property, in lieu of deed, may be ordered by the court divesting title from one and confer it to the party entitled. CONTEMPT is not the remedy b) sale of real property c) Delivery or restitution of real property -demand to vacate within 3 working days -place the judgment obligee in possession d) Removal of improvements on property subject of execution -shall demolish, destroy or remove only by SPECIAL ORDER issued upon motion, due hearing and after reasonable period is given to the party affected. -demolition may be effected beyond the 5-year period as long as the notice was served within the 5-year period.

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e) Delivery of Personal property Execution of special judgments -writ of execution with the certified copy of the decision -failure to obey the judgment is punishable by contempt Garnishment cannot be used to enforce a special judgment (NEA vs. Morales, GR 154200, 7/24/07)

F. EFFECT, EXEMPT PROPERTIES, RETURN, NOTICE 1. persons EFFECT OF LEVY on Execution as to 3rd

-creates a lien binding against 3rd persons subject to any existing lien 2. 13) o Family home/ homestead o Ordinary tools in trade, employment, livelihood o Three horses, cows, carabaos or beast of burden judgment obligor may select necessarily used in ordinary occupation o Necessary clothing, articles for ordinary personal use o Household furniture (not exceeding P100k) o Family or individual provisions for 4 months o Professional libraries and equipment- not exceeding P300k o One fishing boat and accessories of a fisherman not to exceed P100k o Salaries, wages, or earnings for his personal services within 4 months preceding the levy as necessary for support of his family o Lettered gravestones o Life insurance proceeds PROPERTIES EXEMPT from EXECUTION (Sec.

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o Right to receive support, support money or pension /gratuity from government. o Properties exempt by law BUT does not apply for recovery of the price of article or upon a judgment upon foreclosure of mortgage thereon. 3. RETURN OF THE WRIT (Sec. 14) -within 30 days -report every 30 days NOTICE OF SALE ON EXECUTION (Sec. 15) o Posting (3 conspicuous public places, preferably, Municipal/city hall, public market, post office o Personal Reasonable time perishable Others- at least 5 days o Real property (20 days posting) Publication (if assessed value of real property exceeds P50k); once a week for two consecutive weeks o With written notice to the judgment debtor o The requirements of posting and/or publication are essential to the validity of the sale

4.

G. PROCEEDINGS - PROPERTY IS CLAIMED BY THIRD PERSONS Remedies of a third party- (cumulative) 1. Affidavit of third party claimant, setting forth the basis of his claim o The sheriff is not bound to keep the property unless the judgment obligee posts a bond equal the value (determined by the court in case of disagreement) of the property o If the bond is posted, the sheriff shall not be liable

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The husband is a proper third party claimant over a conjugal property levied upon in a case against the wife (BUADO vs. COURT OF APPEAL, G.R. No. 145222, April 24, 2009).

2. Proceed against the bond within 120 days from filing 3. Separate Action (note: appeal or certiorari cannot be resorted since third party claimant is stranger to the case; intervention is allowed only before judgment) Prior filing of terceria or third party claim not necessary in filing a separate action. (Naguit v. CA., GR 137675, 12/5/00) Remedies of judgment obligee 1. post a bond 2. Sue the third party in the same or separate action a frivolous or plainly spurious third party claim. H. SALE: (Sec. 19) How property sold. Who directs manner and order of sale? (Sec. 20) Refusal of purchaser to pay (Sec. 21) Judgment obligee as purchaser (Sec. 22) Adjournment of sale (Sec. 23, 24, 25) Conveyance of personal property (capable and not capable of manual delivery) and real property. NOTES: o The certificate of sale of real property is merely a memorial of the fact of sale and does not confer ownership. It is the final deed of sale executed after the lapse of the redemption period which is effective conveyance of the property.

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o Remedy against an irregular sale is a motion to vacate the sale in the same court and in the same case. I. REDEMPTION: (no redemption in judicial sales of personal property) o Right of redemption may be conveyed/ sold, BUT cannot be attached by the judgment creditor so as to deprive the debtor further right over the property. NOTE: The filing of a case to fix the redemption money must be in good faith. It requires the consignation of the redemption money. Otherwise, the filing of the case will not toll the expiration of the redemption period. (Hi-Yield Realty, Inc. vs. CA, et al., 9/12/02) Who may redeem (Sec. 27) o Judgment obligor or successor-in-interest o Creditor having a lien by virtue of an attachment, judgment or mortgage, subsequent to the lien under which the property was sold. (redemptioner) Time and manner of, and amounts on, successive redemptions; notice to be given and filed. (Sec. 28) o Redemption period is one year from registration of the sale; If the parties agree on different period, the legal redemption period is converted into a conventional redemption. o In case of redemption by the judgment obligor, no further redemption is allowed. (Sec. 29) o Proof required of the redemptioner (Sec. 30)

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o Income of property pending redemption belongs to the judgment obligor (Sec. 32) o Upon expiration of redemption (60 days after last redemption of a redemptioner or one year from registration of the sale in case of the judgment obligor), conveyance and possession is given to the redemptioner or purchaser. Possession shall be given unless a third party is holding the property adversely to the judgment obligor. The rights over the property retroacts to the date of levy. A purchaser from the mortgagor cannot be considered holding the property adversely against the mortgagor. Roxas v. Buan, G.R. No. L-53798, 8 November 1988, 167 SCRA 43 o (sec. 34, Recovery of price if sale not effective; revival of judgment J. SUPPLEMENTARY PROCEEDINGS TO EXECUTION (1) Examination of judgment obligor (Sec. 36) -must be within the City or Province where the obligor resides (2) Examination of the obligor of the judgment obligor (Sec. 37) -must be within the City or Province where the obligor resides Order for application of property and income to satisfaction of judgment. Order payment in installments and failure may be punished for indirect contempt (Sec. 40) Appointment of receiver over property of judgment obligor; or

(3)

(4)

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Forbid a transfer or disposition of, or any interference with, the property of the judgment obligor not exempt from execution (Sec. 41) (5) (6) Sale of ascertainable interest of judgment obligor in real estate (Sec. 42) Proceedings when indebtedness is denied or another person claims the property (Sec. 43) -authorize creditor to institute action and forbid the transfer of the property 120 days from notice -if the indebtedness is NOT denied or no person claims the property, then the remedy is EXECUTION. K. SATISFACTION OF JUDGMENT 1) Upon return of execution satisfied 2) Filing of admission under Sec. 44 Entry of satisfaction 3) Upon indorsement of such admission on the face of the record of the judgment 4) Upon order of the court after notice and motion

When principal bound by judgment against surety-principal bound by judgment from time he had notice -if both are sued, the surety may file a cross claim in the same case -if principal sued only, he has no cause of action against the surety L. EFFECTS OF JUDGMENT 1). Rendered by Phil. Court with jurisdiction 1) IN REM Conclusive -vs. specific thing, -probate, administration of estate

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-in respect to the personal, political or legal condition or status, the judgment is conclusive upon the title to the thing; the will or administration; or condition, status; BUT only prima facie evidence of the death of the testator or intestate2) OTHER CASES: (res judicata; in personam) -final judgment or order shall be conclusive between the parties and their successor in interest by title subsequent to the commencement of the action with respect to-matters directly adjudged -or matter that could have been raised in relation thereto 3) In any other litigation between the same parties or successor in interest, that only is deemed to have been adjudged in a former judgment which appears upon its face to have been so adjudged, or which was actually an necessarily included therein or necessary thereto. (conclusiveness of judgment; in personam, there may be identity of subject matter, but not cause of action) Petition to reconstitute a title declared to be void by final judgment- an example of operation of conclusiveness of judgment (LAYOS vs. FIL-ESTATE, GR 150470, 8/6/08)

Requisites of res judicata 1. Final and executory judgment or order 2. Jurisdiction over the subject matter and/or parties 3. Former judgment is on the merits

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4. Identity of-parties, -subject matter -cause of action Law of the case-This principle is defined as "a term applied to an established rule that when an appellate court passes on a question and remands the cause to the lower court for further proceedings, the question there settled becomes the law of the case upon subsequent appeal." (AGUILAR vs. MANILA BANKING CORP., GR 157911, 9/19/06) 2). FOREIGN JUDGMENT o Cannot be enforced by execution o Merely creates a right of action o Judgment may be repelled by want of jurisdiction, notice, collusion, fraud or clear mistake of law or fact. o Effect- in case of judgment against a thing, it is conclusive against the thing; in case of personal judgment, it is only presumptive evidence of a right between the parties. Asivest Merchant Bankers (M) Berhad v. Ca, GR 110263, 7/20/01; Garcia v. 10/2/01 Recio, GR No. 138322,