64.

PERLA COMPANIA DE SEGUROS, INC V RAMOLETE

G.R. No. L-60887 | November 13, 1991

Facts: A PUJ owned by Nelia Enriquez which was insured with TPL to Petitioner,
collided with a private jeep owned and driven by Calixto Palmes (husband of
Primitiva Palmes) who died due to said accident. Primitiva sued Nelia and her
driver before the CFI of Cebu. The CFI ruled in favor of Primitiva which became
final and executory. A writ of execution was issued, which however, returned
unsatisfied. Palmes then filed a motion for garnishment praying that an order of
garnishment be issued against the insurance policy issued by petitioner in favor of
the judgment debtor. Respondent Judge then issued an Order directing the
Provincial Sheriff to garnish the TPL insurance policy. Petitioner filed for MR and
quashal of the writ of garnishment on the ground that Perla was not a party to the
case. The trial court denied petitioners motion.
Issue: Whether or not TPL insurance policy may be subject to garnishment?
Held: Yes. Garnishment has been defined as a species of attachment for reaching
any property or credits pertaining or payable to a judgment debtor. In legal
contemplation, it is a forced novation by the substitution of creditors: the judgment
debtor, who is the original creditor of the garnishee is, through service of the writ
of garnishment, substituted by the judgment creditor who thereby becomes creditor
of the garnishee. Garnishment has also been described as a warning to a person
having in his possession property or credits of the judgment debtor, not to pay the
money or deliver the property to the latter, but rather to appear and answer the
plaintiffs suit.
In order that the trial court may validly acquire jurisdiction to bind the
person of the garnishee, it is not necessary that summons be served upon him.
The garnishee need not be impleaded as a party to the case. All that is
necessary for the trial court lawfully to bind the person of the garnishee or
any person who has in his possession credits belonging to the judgment debtor
is service upon him of the writ of garnishment.