RULE 60 DBP vs. Carpio, February 1, 2017
RULE 60 DBP vs. Carpio, February 1, 2017
RULE 60 DBP vs. Carpio, February 1, 2017
Section 10
Facts:
Abad, et al filed a complaint for delivery of certificate of titles, damages and attorney’s fee as
against DBP and Guarantee Fund for SME (GFSME) which they alleged that the certificates was
unlawfully detained by DBP and GFSME that supposed to be for safekeeping pursuant to the loan
agreement they entered into with DBP. These certificates were turned over to GFSME by DBO since it is
the guarantee on the loan that became due and demandable based on the guarantee agreement
between DBP and GFSME.
RTC issued a Writ of Seizure but later on quashed due to the granted omnibus motion and
dismissed the case for improper venue which was filed by DBP. Subsequently, Abad, et al filed a petition
for certiorari and prohibition with the court praying for the nullification and reversal of the order,
however, dismissed the petition. Afterwards, a Writ of Execution was issued by the RTC which was filed
by DBP but Abad, et al failed to deliver the certificates of title. Then, DBP filed a motion to call on
plaintiff’s surety bond which was denied by RTC and CA, hence, this petition.
Issue:
Whether or not the CA erred in its blind adherence and strict application of Section 20 of Rule
57 of the Rules of Civil Procedure in relation to Rule 60 shall be implemented.
Ruling:
No. The Supreme Court ruled that CA did not commit reversible error when it applied the rules
of procedure in resolving the issue at hand. Under Section 10, Rule 60 of the Rules of Court provides that
in replevin cases, as in receivership and injunction cases, the damages to be awarded to either party
upon any bond filed by the other shall be claimed, ascertained, and granted in accordance with Section
20 of Rule 57 provides for the Claim for damages on account of illegal attachment.
In other words, to recover damages on a replevin bond or on a bond for preliminary attachment,
injunction or receivership, it is necessary (1) that the defendant-claimant has secured a favorable
judgment in the main action, meaning that the plaintiff has no cause of action and was not, therefore,
entitled to the provisional remedy of replevin; (2) that the application for damages, showing claimant's
right thereto and the amount thereof, be filed in the same action before trial or before appeal is
perfected or before the judgment becomes executory; (3) that due notice be given to the other party
and his surety or sureties, notice to the principal not being sufficient; and (4) that there should be a
proper hearing and the award for damages should be included in the final judgment.