DIAMOND BUILDERS CONGLOMERATION, ROGELIO S. ACIDRE, TERESITA P. ACIDRE, GRACE C. OSIAS, VIOLETA S. FAIYAZ and EMMA S.

CUTILLAR, Petitioners, - versus COUNTRY BANKERS INSURANCE CORPORATION, Respondent.

G.R. No. 1718 ! Present: YNARES-SANTIAGO, J., Chairperson, CHICO-NAZARIO, VE ASCO,! NACH"RA, #nd REYES, JJ. Pro$u%&#ted: 'e(e$)er *+, ,--.

x------------------------------------------------------------------------------------x DECISION NAC"URA, J.#

/e0ore us is # petition 0or revie1 on certiorari to #nnu% t2e 'e(ision3*4 o0 t2e Court o0 Appe#%s 5CA6 in CA-G.R. C.V. No. 789-+, 12i(2 reversed t2e 'e(ision3,4 o0 t2e Re&ion#% Tri#% Court, /r#n(2 ., :#ni%# 5RTC :#ni%#6 in Civi% C#se No. ;,-9,-,; #nd &r#nted respondent Countr< /#n=ers Insur#n(e Corpor#tion>s 5Countr< /#n=ers>6 pr#<er 0or # su$ o0 $one< #&#inst t2e petitioners. T2e (ontrovers< ori&in#ted 0ro$ # (ivi% (#se 3+4 pendin& )e0ore t2e Re&ion#% Tri#% Court, /r#n(2 *,?, C#%oo(#n Cit< 5RTC C#%oo(#n6 0i%ed )< :#r(e%i#no /or@# 5/or@#6 #&#inst Ro&e%io S. A(idre 5Ro&e%io6 0or t2e %#tter>s )re#(2 o0 2is o)%i&#tion to (onstru(t # residenti#% #nd (o$$er(i#% )ui%din&. Ro&e%io is t2e so%e proprietor o0 petitioner 'i#$ond /ui%ders Con&%o$er#tion 5'/C6.

To put #n end to t2e 0ore&oin& %iti&#tion, t2e p#rties entered into # Co$pro$ise A&ree$ent374 12i(2 provided, in p#rt:
CO:PRO:ISE AGREE:ENT *. AAA

#. In %ieu o0 res(ission, t2e p#rties 2#ve $utu#%%< #&reed, su)@e(t to t2e provisions 2ereunder, to 0u%%< i$p%e$ent t2e )ui%din& (ontr#(t d#ted O(to)er *, *;;- #nd supp%e$ented on O(to)er ,, *;;1it2 #n #ddition#% s(ope o0 1or= $#r=ed #s AnneA BAC o0 t2e (o$p%#int #nd t2e etter-A&ree$ent d#ted Nove$)er *9, *;;* si&ned )< t2e 3petitioner Ro&e%io4 #nd p%#inti00>s son5,6 Derdin#nd A. /or@#, $#r=ed #s AnneA B/C o0 t2e (o$p%#int, 12i(2 reEuired 0u%% (o$p%i#n(e o0 t2e stru(tur#% desi&n o0 En&r. R#$os #nd eAp%i(it re$inders in t2e (onstru(tin& o0 t2e residenti#%F(o$$er(i#% )ui%din& #nd t2e #ddition#% 1or=s t2erein spe(i0ied 0or t2e #dded (onsider#tion o0 P*--,---.-- #s #%%e&ed in p#r#&r#p2s , #nd + o0 t2e (o$p%#int, AnneA BCC 2ereo0. ). 3Petitioner Ro&e%io4 #d$its 0u%% p#<$ent o0 p%#inti00 to 2i$ t2e #$ount o0 P*,?+-,---.-- %e#vin& t2e )#%#n(e o0 P?.-,---.-- o0 t2e (ontr#(tu#% pri(e o0 P,,*--,---.-- 0or t2e (onstru(tion o0 t2e )ui%din&s #0ore$entioned. (. 3Petitioner Ro&e%io4 #&rees to 0u%%< (o$p%ete t2e (onstru(tion o0 t2e residenti#%F(o$$er(i#% )ui%din& $entioned in p#r#&r#p2 * 2ereo0 provided p%#inti00 1ou%d p#< to 2i$, su)@e(t to 2ereunder ter$s, t2e #0ores#id #$ount o0 P?.-,---.--. d. T2e p%#inti00 #&rees to p#< 3petitioner Ro&e%io4 t2e #$ount o0 P?.-,---.-- su)@e(t to t2e ter$s 2ereunder set 0ort2 #nd su)@e(t stri(t%< to t2e (ondition t2#t 3petitioner Ro&e%io4 1i%% 0inis2 t2e )ui%din& #)ove-des(ri)ed pursu#nt to t2e #&ree$ents 3AnneA5es6 BAC #nd B/C4 set 0ort2 in p#r#&r#p2 * 2ereo0. e. P%#inti00 s2#%% p#< 3petitioner Ro&e%io4 t2e #$ount o0 P?.-,---.-- #s 0o%%o1s: i. P$7!,!!!.!! % &'( )&' da* +,o- a..,o/a0 o+ &'12 3o-.,o-12( a4,((-(n& 5* &'12 "ono,a50( Co6,&

and &o 3o1n31d( 781&'9 &'( 2&a,& o+ &'( 7) da*2 +o, :.(&1&1on(, Ro4(01o; &o 3o-.0(&( &'( 3on2&,63&1on o+ &'( 5610d1n4. ii. P,--,---.-- G H2en t2e #0oredes(ri)ed )ui%din& is 0u%%< (onstru(ted pursu#nt to #&ree$ents st#ted in p#r#&r#p2 * 2ereo0. iii. Sa1d 5610d1n4 -62& 5( +600* +1n12'(d .6,26an& &o &'( a4,((-(n& 2&a&(d 1n .a,a4,a.' 1 '(,(o+ 81&'1n 7) da*2 7(<306d1n4 S6nda*2 and "o01da*29 3o6n&(d +,o- ,(3(1.& o+ .a*-(n& o+ P$7!,!!!.!!. T2e d#te o0 re(eipt to )e issued )< 3petitioner Ro&e%io4 1i%% (ontro%. T2e .?t2 d#< 1i%% )e *,:-- noon o0 t2e .?t2 d#<. iv. F,o- ,(3(1.& o+ &'( a+o,(2a1d a-o6n& o+ P$7!,!!!.!!, :.(&1&1on(, Ro4(01o; 2'a00 265-1& 1n +a/o, o+ .0a1n&1++ a .(,+o,-an3( o, 26,(&* 5ond 1n &'( (=61/a0(n& a-o6n& o+ P$7!,!!!.!! % &o an28(, o, 1nd(-n1+* .0a1n&1++ 1n &'( (/(n& &'( 5610d1n4 12 no& +1n12'(d on &'( 7)&' da*. v. In t2e event t2e )ui%din& is 0inis2ed 1it2in .? d#<s #s 2ereto0ore st#ted #nd pursu#nt to t2e #&ree$ents set 0ort2 in p#r#&r#p2 * 2ereo0, in #ddition to t2e #$ount o0P,--,---.--, t2e p%#inti00 s2#%% #%so p#< 3petitioner Ro&e%io4 t2e #$ount o0 P;-,---.-- )< 1#< o0 3)onus4. "o8(/(,, 1n &'( (/(n& :.(&1&1on(, Ro4(01o; 2'a00 +a10 &o +600* 3o-.0(&( &'( 3on2&,63&1on o+ &'( 5610d1n4 .6,26an& &o &'( a4,((-(n&2 2(& +o,&' 1n .a,a4,a.' 1 '(,(o+ 81&'1n 7) da*2 a2 '(,(&o+o,( 2&a&(d, :.(&1&1on(, Ro4(01o; 2'a00 no& 5( (n&1&0(d &o an* +6,&'(, .a*-(n&2 and &'( .(,+o,-an3( o, 26,(&* 5ond a5o/(>-(n&1on(d 2'a00 5( +600* 1-.0(-(n&(d 5* 8a* o+ .(na01?1n4 :.(&1&1on(, Ro4(01o; and@o, a2 a8a,d +o, da-a4(2 1n +a/o, o+ .0a1n&1++. AAAA 0. AAA

&. T2#t t2e (onstru(tion 2erein (onte$p%#ted s2#%% not eAtend )e<ond .? d#<s. S#id period s2#%% (o$$en(e 0ive d#<s 0ro$ t2e d#te o0 t2e 0in#% #pprov#% 2ereo0 )< t2is Honor#)%e Court. i. T'a& an* /1o0a&1on and@o, a/o1dan3( o+ &'( &(,-2 and 3ond1&1on2 o+ &'12 Co-.,o-12( A4,((-(n& 5* (1&'(, o+ &'( .a,&1(2 '(,(1n 2'a00 +o,&'81&' (n&1&0( &'( a44,1(/(d .a,&* &o an 1--(d1a&( (<(36&1on '(,(o+ and &o &'( n(3(22a,* and 3o,,(2.ond1n4 ,(01(+2 and ,(-(d1(2 &'(,(+o,(. 5E$p2#sis supp%ied.6

T2e RTC C#%oo(#n #pproved t2e Co$pro$ise A&ree$ent #nd rendered # 'e(ision3?4 in #((ord#n(e 1it2 t2e ter$s #nd (onditions (ont#ined t2erein. In (o$p%i#n(e 1it2 t2e Co$pro$ise A&ree$ent, Ro&e%io o)t#ined # Suret< /ond 0ro$ Countr< /#n=ers in 0#vor o0 t2e spouses /or@#. 3.4 In t2is re&#rd, Ro&e%io #nd 2is spouse, petitioner Teresit# P. A(idre, to&et2er 1it2 '/C e$p%o<ees Gr#(e C. Osi#s, Vio%et# S. D#i<#I #nd E$$# S. Cuti%%#r 5t2e ot2er petitioners 2erein6, si&ned #n Inde$nit< A&ree$ent 384 (onsentin& to t2eir @oint #nd sever#% %i#)i%it< to Countr< /#n=ers s2ou%d t2e suret< )ond )e eAe(uted upon.
394

On Apri% ,+, *;;,, Countr< /#n=ers re(eived # :otion 0or EAe(ution3;4 o0 t2e suret< )ond 0i%ed )< /or@# 1it2 t2e RTC C#%oo(#n 0or Ro&e%io>s #%%e&ed vio%#tion o0 t2e Co$pro$ise A&ree$ent. ConseEuent%<, Countr< /#n=ers, in # %etter3*-4 d#ted :#< *+, *;;,, #dvised petitioners t2#t in t2e event it is (onstr#ined to p#< under t2e suret< )ond to /or@#, it s2#%% pro(eed #&#inst petitioners 0or rei$)urse$ent. In turn, petitioners 1rote Countr< /#n=ers in0or$in& t2e %#tter o0 t2e 0i%in& o0 #n Opposition to /or@#>s :otion 0or EAe(ution. 3**4 In spite o0 t2e opposition, 3*,4 2o1ever, t2e RTC C#%oo(#n issued # Hrit o0 EAe(ution on :#< ,?, *;;,. Petitioners t2en 0i%ed # $otion 0or re(onsider#tion. On :#< ,;, *;;,, S2eri00 Per(ever#ndo P#n&#n o0 RTC C#%oo(#n served Countr< /#n=ers # (op< o0 t2e 1rit. Post2#ste, Countr< /#n=ers, in 1ritin&, reEuested S2eri00 P#n&#n 0or # *--d#< &r#(e period 1it2in 12i(2 to sett%e t2e (%#i$.3*+4

Su)seEuent%<, Ro&e%io 0i%ed #n "r&ent O$ni)us :otion3*74 to suspend t2e Hrit o0 EAe(ution #nd to reso%ve t2e :otion 0or Re(onsider#tion d#ted June +, *;;,. "pon re(eipt o0 t2e O$ni)us :otion, Countr< /#n=ers 0ort21it2 1rote S2eri00 P#n&#n #nd reEuested t2#t t2e i$p%e$ent#tion o0 t2e Hrit o0 EAe(ution )e 2e%d in #)e<#n(e so #s not to render $oot #nd #(#de$i( t2e RTC C#%oo(#n>s reso%ution on t2e O$ni)us :otion.3*?4 Nonet2e%ess, on June ;, *;;,, Countr< /#n=ers 1#s served # Noti(e o0 ev<FS2eri00>s S#%e3*94 1it2 # %ist o0 its person#% properties to )e so%d #t t2e s(2edu%ed pu)%i( #u(tion on June *?, *;;,. T2e neAt d#<, or on June *-, *;;,, Countr< /#n=ers veri0ied 1it2 t2e RTC C#%oo(#n t2e st#tus o0 petitioners> O$ni)us :otion. It 1#s in0or$ed t2#t t2e $otion 2#d <et to )e #(ted upon. On t2e s#$e d#te, S2eri00 P#n&#n #rrived #t Countr< /#n=ers> o00i(e, #nd t2e %#tter 1#s t2us (onstr#ined to p#< t2e #$ount o0 t2e suret< )ond.3*.4 Si&ni0i(#nt%<, on June ,,, *;;,, t1e%ve 5*,6 d#<s #0ter t2e s#tis0#(tion o0 @ud&$ent in Civi% C#se No. C-*7.7?, Ro&e%io 0i%ed # Petition 0or Certiorari #nd Pro2i)ition 1it2 Pre%i$in#r< In@un(tion #nd Restr#inin& Order 3*84 1it2 t2e CA, do(=eted #s CA-G.R. SP No. ,8,-?. A%t2ou&2 t2e #ppe%%#te (ourt issued # Te$por#r< Restr#inin& Order 5TRO6, t2e petition 1#s eventu#%%< denied due (ourse #nd dis$issed outri&2t 0or )ein& fait accompli, #s 12#t it sou&2t to en@oin or pro2i)it 2#d #%re#d< )een 0u%%< s#tis0ied #nd eAe(uted.3*;4 In t2e $e#nti$e, #0ter Countr< /#n=ers 1#s (o$pe%%ed to p#< t2e #$ount o0 t2e suret< )ond, it de$#nded rei$)urse$ent 0ro$ t2e petitioners under t2e Inde$nit< A&ree$ent.3,-4 Ho1ever, petitioners re0used to rei$)urse Countr< /#n=ers. In #ddition, upon t2e dis$iss#% o0 t2eir petition in CA-G.R. SP No. ,8,-?, petitioners 1rote Countr< /#n=ers #nd in0or$ed t2e %#tter t2#t t2e vo%unt#r< p#<$ent o0 t2e )ond e00e(tive%< prevented t2e$ 0ro$ (ontestin& t2e v#%idit< o0 t2e issu#n(e o0 t2e Hrit o0 EAe(ution.3,*4

As # resu%t, Countr< /#n=ers 0i%ed # (o$p%#int 0or su$ o0 $one< #&#inst t2e petitioners 12i(2, #s previous%< st#ted, t2e RTC :#ni%# dis$issed. It disposed o0 t2e (#se, t2us:
HHEREDORE, #nd (onsiderin& t2e 0ore&oin&, @ud&$ent is 2ere)< rendered: *. 'is$issin& t2e (o$p%#int 0or %#(= o0 $eritK

,. On t2e (ounter(%#i$, orderin& 3Countr< /#n=ers4 to p#< 3petitioners4 #ttorne<>s 0ees o0 P?-,---.--, p%us t2e (osts o0 suit. SO OR'ERE'.

On #ppe#%, t2e CA reversed #nd set #side t2e de(ision o0 t2e RTC :#ni%#, to 1it:
HHEREDORE, pre$ises (onsidered, t2e Appe#% is GRANTE' #nd t2e 'e(ision d#ted Nove$)er ,, *;;, o0 /r#n(2 . o0 t2e Re&ion#% Tri#% Court o0 :#ni%# is 2ere)< REVERSE' #nd # ne1 one entered, orderin& 3petitioners4 to p#< 3Countr< /#n=ers4 t2e su$ o0 THREE H"N'RE' SEVENTY THO"SAN' PESOS 5P+.-,---.--6, #s rei$)urse$ent or #(tu#% d#$#&es, p%us interest t2ereon #t t2e r#te o0 *,L per #nnu$ (o$puted 0ro$ t2e d#te o0 @udi(i#% de$#nd, or 0ro$ Ju%< ,7, *;;,, t2e d#te o0 0i%in& o0 t2e (o$p%#int unti% t2e s#id #$ount 2#s )een 0u%%< p#id. SO OR'ERE'.

In reversin& t2e tri#% (ourt, t2e CA ru%ed t2#t Countr< /#n=ers, #s suret< o0 Ro&e%io>s %o#n o)%i&#tion, did not e00e(t vo%unt#r< p#<$ent on t2e )ond. T2e #ppe%%#te (ourt 0ound t2#t 12#t Countr< /#n=ers p#id 1#s #n o)%i&#tion %e&#%%< due #nd de$#nd#)%e. It de(%#red t2#t Countr< /#n=ers #(ted upon (o$pu%sion o0 # 1rit o0 eAe(ution, 12i(2 #ppe#rs to 2#ve )een re&u%#r%<, #nd v#%id%< issued, #nd, )< its ver< n#ture, is i$$edi#te%< en0or(e#)%e. Hen(e, t2is #ppe#% positin& # so%e issue 0or our reso%ution, to 1it:
H2et2er petitioners s2ou%d inde$ni0< Countr< /#n=ers 0or t2e p#<$ent o0 t2e suret< )ond.

In 0ine, petitioners (ontend t2#t Countr< /#n=ers is not entit%ed to rei$)urse$ent 12en it vo%unt#ri%< p#id t2e suret< )ond (onsiderin& it =ne1 0u%% 1e%% t2e re$edies #v#i%ed o0 )< petitioners to st#< t2e eAe(ution o0 t2e (o$pro$ise

@ud&$ent. T2us, Countr< /#n=ers $ust )e#r t2e %oss or d#$#&e #risin& 0ro$ its vo%unt#r< #(t. He den< t2e #ppe#% #nd #00ir$ t2e #ppe%%#te (ourt>s ru%in&. Countr< /#n=ers s2ou%d )e rei$)ursed 0or t2e P+.-,---.-- it p#id to /or@# under t2e suret< )ond. In i$pu&nin& t2e CA>s de(ision, petitioners invo=e t2eir pendin& O$ni)us :otion to st#< t2e eAe(ution o0 t2e (o$pro$ise @ud&$ent. Petitioners> t2eor< is t2#t, #%t2ou&2 t2e RTC C#%oo(#n 2#d #%re#d< issued # 1rit o0 eAe(ution #nd Countr< /#n=ers 2#d )een served # Noti(e o0 ev<FS2eri00>s S#%e o0 its properties #t t2e i$pendin& pu)%i( #u(tion, t2e p#<$ent $#de )< Countr< /#n=ers to /or@# is # vo%unt#r< #(t. Petitioners pus2 t2eir t2eor< even 0urt2er, #nd dei&n to su&&est t2#t Countr< /#n=ers s2ou%d 2#ve itse%0 intervened in t2e pro(eedin&s )e0ore t2e RTC C#%oo(#n to st#< t2e 1rit o0 eAe(ution. He re@e(t t2is preposterous su&&estion. Petitioners ou&2t to )e re$inded o0 t2e n#ture o0 # @ud&$ent on # (o$pro$ise #nd # 1rit o0 eAe(ution issued in (onne(tion t2ere1it2. A (o$pro$ise @ud&$ent is # de(ision rendered )< # (ourt s#n(tionin& t2e #&ree$ent )et1een t2e p#rties (on(ernin& t2e deter$in#tion o0 t2e (ontrovers< #t 2#nd. Essenti#%%<, it is # (ontr#(t, st#$ped 1it2 @udi(i#% i$pri$#tur, )et1een t1o or $ore persons, 12o, 0or preventin& or puttin& #n end to # %#1suit, #d@ust t2eir di00i(u%ties )< $utu#% (onsent in t2e $#nner 12i(2 t2e< #&ree on, #nd 12i(2 e#(2 o0 t2e$ pre0ers in t2e 2ope o0 &#inin&, )#%#n(ed )< t2e d#n&er o0 %osin&. 3,,4 "pon (ourt #pprov#% o0 # (o$pro$ise #&ree$ent, it tr#ns(ends its identit< #s # $ere (ontr#(t )indin& on%< upon t2e p#rties t2ereto, #s it )e(o$es # @ud&$ent t2#t is su)@e(t to eAe(ution in #((ord#n(e 1it2 Ru%e +; o0 t2e Ru%es o0 Court.3,+4 Ordin#ri%<, # @ud&$ent )#sed on (o$pro$ise is not #ppe#%#)%e. It s2ou%d not )e distur)ed eA(ept upon # s2o1in& o0 viti#ted (onsent or 0or&er<. T2e re#son 0or t2e ru%e is t2#t 12en )ot2 p#rties enter into #n #&ree$ent to end # pendin& %iti&#tion #nd reEuest t2#t # de(ision )e rendered #pprovin& s#id #&ree$ent, it is on%< n#tur#% to presu$e t2#t su(2 #(tion (onstitutes #n i$p%i(it, #s undeni#)%e #s #n eApress, 1#iver o0 t2e ri&2t to #ppe#% #&#inst s#id de(ision. 3,74 T2us, # de(ision on #

(o$pro$ise #&ree$ent is 0in#% #nd eAe(utor<, #nd is (on(%usive )et1een t2e p#rties.3,?4 It is )e<ond (#vi% t2#t i0 # p#rt< 0#i%s or re0uses to #)ide )< # (o$pro$ise #&ree$ent, t2e ot2er p#rt< $#< eit2er en0or(e t2e (o$pro$ise or re&#rd it #s res(inded #nd insist upon 2is ori&in#% de$#nd. 3,94 Do%%o1in& t2is $#nd#tor< ru%e, t2e RTC C#%oo(#n &r#nted /or@#>s $otion, #nd su)seEuent%< issued #n order to t2e s2eri00 to eAe(ute t2e (o$pro$ise @ud&$ent. Not1it2st#ndin& t2e 0ore&oin&, petitioners sti%% $#int#in t2#t sin(e t2e< 2#d t#=en steps to st#< t2e eAe(ution o0 t2e (o$pro$ise @ud&$ent, Countr< /#n=ers, 1it2 0u%% =no1%ed&e o0 t2eir #(tive opposition to t2e eAe(ution t2ereo0, s2ou%d not 2#ve re#di%< (o$p%ied 1it2 t2e RTC C#%oo(#n Order. Petitioners> #r&u$ent (onte$p%#tes # )r#Ien de0i#n(e o0 # v#%id%< issued (ourt order, 12i(2 2#d not )een restr#ined )< t2e #ppe%%#te (ourt or t2is Court. T2e #r&u$ent is un#((ept#)%e. T2e Co$pro$ise A&ree$ent )et1een /or@# #nd Ro&e%io eAp%i(it%< provided t2#t t2e %#tter>s 0#i%ure to (o$p%ete (onstru(tion o0 t2e )ui%din& 1it2in t2e stipu%#ted period3,.4s2#%% (#use t2e 0u%% i$p%e$ent#tion o0 t2e suret< )ond #s # pen#%t< 0or t2e de0#u%t, #nd #s #n #1#rd o0 d#$#&es to /or@#. Durt2er$ore, t2e Co$pro$ise A&ree$ent (ont#ined # de0#u%t eAe(utor< (%#use in (#se o0 # vio%#tion or #void#n(e o0 t2e ter$s #nd (onditions t2ereo0. T2ere0ore, t2e p#<$ent $#de )< Countr< /#n=ers to /or@# 1#s proper, #s 0#i%ure to p#< 1ou%d 2#ve #$ounted to (ontu$#(ious diso)edien(e o0 # v#%id (ourt order. C%e#r%<, even 1it2out t2e #0ores#id de0#u%t (%#use, t2e (o$pro$ise @ud&$ent re$#ined eAe(utor< #s #&#inst Ro&e%io, #s t2e prin(ip#% o)%i&or 5(o-de)tor6, #nd Countr< /#n=ers #s suret< o0 t2e o)%i&#tion. Se(tion 7, Ru%e +; o0 t2e Ru%es o0 Court provides:
SEC. 7. Judgments not stayed by appeal. G Jud&$ents in #(tions 0or in@un(tion, re(eivers2ip, #((ountin& #nd support, #nd su(2 ot2er @ud&$ents #s #re no1 or $#< 2ere#0ter )e de(%#red to )e i$$edi#te%< eAe(utor<, s2#%% )e en0or(e#)%e #0ter t2eir rendition #nd s2#%% not )e st#<ed )< #n #ppe#% t#=en t2ere0ro$, un%ess ot2er1ise ordered )< t2e

tri#% (ourt. On #ppe#% t2ere0ro$, t2e #ppe%%#te (ourt in its dis(retion $#< $#=e #n order suspendin&, $odi0<in&, restorin& or &r#ntin& t2e in@un(tion, re(eivers2ip, #((ountin&, or #1#rd o0 support. T2e st#< o0 eAe(ution s2#%% )e upon su(2 ter$s #s to )ind or ot2er1ise #s $#< )e (onsidered proper 0or t2e se(urit< or prote(tion o0 t2e ri&2ts o0 t2e #dverse p#rt<.

Ot2er @ud&$ents in #(tions de(%#red to )e i$$edi#te%< eAe(utor< #nd not st#<ed )< t2e 0i%in& o0 #n #ppe#% #re 0or: 5*6 (o$pro$ise, 3,84 5,6 0or(i)%e entr< #nd un%#10u% det#iner,3,;45+6 dire(t (onte$pt,3+-4 #nd 576 eApropri#tion.3+*4 i=e1ise, Se(tion ;, p#r#&r#p2 5#6,3+,4 o0 t2e s#$e Ru%e out%ines t2e pro(edure 0or eAe(ution o0 @ud&$ents 0or $one<, t2us:
SEC. ; Execution of judgments for money, how enforced . G (a) Immediate payment on demand. G T2e o00i(er s2#%% en0or(e #n eAe(ution o0 # @ud&$ent 0or $one< )< de$#ndin& 0ro$ t2e @ud&$ent o)%i&or t2e i$$edi#te p#<$ent o0 t2e 0u%% #$ount st#ted in t2e 1rit o0 eAe(ution #nd #%% %#10u% 0ees. T2e @ud&$ent o)%i&or s2#%% p#< in (#se, (erti0ied )#n= (2e(= p#<#)%e to t2e @ud&$ent o)%i&e, or #n< ot2er 0or$ o0 p#<$ent #((ept#)%e to t2e %#tter, t2e #$ount o0 t2e @ud&$ent de)t under proper re(eipt dire(t%< to t2e @ud&$ent o)%i&e or 2is #ut2oriIed represent#tive i0 present #t t2e ti$e o0 p#<$ent. T2e %#10u% 0ees s2#%% )e 2#nded under proper re(eipt to t2e eAe(utin& s2eri00 12o s2#%% turn over t2e s#id #$ount 1it2in t2e s#$e d#< to t2e (%er= o0 (ourt o0 t2e (ourt t2#t issued t2e 1rit.

As Ro&e%io>s o)%i&#tion under t2e (o$pro$ise #&ree$ent, #nd #pproved )< t2e RTC C#%oo(#n, 2#d # pen#% (%#use 3++4 12i(2 is $onet#r< in n#ture,3+74 t2e 1rit o0 eAe(ution #v#i%ed o0 )< /or@#, #nd p#id )< Countr< /#n=ers, stri(t%< (o$p%ied 1it2 t2e ru%es on eAe(ution o0 $one< @ud&$ents. It is true t2#t t2e petitioners did not dire(t%< Euestion t2e (o$pro$ise @ud&$ent. H2#t 1#s pendin& )e0ore t2e C#%oo(#n RTC 1#s petitioners> O$ni)us :otion pr#<in& 0or # st#< in t2e i$p%e$ent#tion o0 t2e 1rit o0

eAe(ution. Ho1ever, t2e )otto$ %ine issue r#ised in t2e O$ni)us :otion is, #(tu#%%<, # Euestion on t2e (o$pro$ise @ud&$ent, sin(e its reso%ution 1ou%d reEuire #n inEuir< into t2e stipu%#tions (ont#ined in t2e Co$pro$ise A&ree$ent, p#rti(u%#r%< t2e provision on i$$edi#te eAe(ution. T2us, 12en t2e RTC :#ni%# ru%ed t2#t t2e p#<$ent on t2e )ond $#de )< Countr< /#n=ers 1#s vo%unt#r<, t2e %o1er (ourt e00e(tive%< disre&#rded t2e ru%e on t2e non-#ppe#%#)%e n#ture #nd t2e i$$edi#te%< eAe(utor< (2#r#(ter o0 # @ud&$ent on # (o$pro$ise. :oreover, it 2#s not es(#ped our #ttention t2#t petitioners )e%#ted%< 0i%ed # Petition 0or Certiorari #nd Pro2i)ition 1it2 pr#<er 0or # TRO 1it2 t2e CA, ostensi)%< to stop t2e eAe(ution o0 t2e (o$pro$ise @ud&$ent. Not on%< 1#s t2e 0i%in& t2ereo0 %#te, it 1#s done t1e%ve 5*,6 d#<s #0ter t2e s#tis0#(tion o0 t2e (o$pro$ise @ud&$ent. He #re, t2ere0ore, perp%eAed 12<, despite t2e ur&en(< o0 t2e $#tter, petitioners $ere%< )#n=ed on # pendin& $otion 0or re(onsider#tion to st#< t2e en0or(e$ent o0 #n #%re#d< issued 1rit o0 eAe(ution. Petitioners> tot#% re%i#n(e t2ereon 1#s (ert#in%< $isp%#(ed. Ad$itted%<, t2e &ener#% ru%e is t2#t certiorari 1i%% not %ie un%ess # $otion 0or re(onsider#tion is 0irst 0i%ed )e0ore t2e respondent tri)un#% to #%%o1 it #n opportunit< to (orre(t t2e i$puted errors.3+?4 Nonet2e%ess, t2e ru%e #d$its o0 eA(eptions, t2us:
5#6 12ere t2e order is # p#tent nu%%it<, #s 12ere t2e court a uo 2#s no @urisdi(tionK 5)6 where the uestions raised in the certiorari proceedings ha!e been duly raised and passed upon by the lower court, or are the same as those raised and passed upon in the lower court" 5(6 12ere t2ere is #n ur&ent ne(essit< 0or t2e reso%ution o0 t2e Euestion #nd #n< 0urt2er de%#< 1ou%d pre@udi(e t2e interests o0 t2e Govern$ent or o0 t2e petitioner or t2e su)@e(t $#tter o0 t2e #(tion is peris2#)%eK

5d6 where, under the reconsideration would be useless"

circumstances,

motion

for

5e6 12ere petitioner 1#s deprived o0 due pro(ess #nd t2ere is eAtre$e ur&en(< 0or re%ie0K 506 12ere, in # (ri$in#% (#se, re%ie0 0ro$ #n order o0 #rrest is ur&ent #nd t2e &r#ntin& o0 su(2 re%ie0 )< t2e tri#% (ourt is i$pro)#)%eK 5&6 12ere t2e pro(eedin&s in t2e %o1er (ourt #re # nu%%it< 0or %#(= o0 due pro(essK 526 12ere t2e pro(eedin&s 1#s ex#parte or in 12i(2 t2e petitioner 2#d no opportunit< to o)@e(tK #nd 5i6 12ere t2e issue r#ised is one pure%< o0 %#1 or 12ere pu)%i( interest is invo%ved.3+94

Evident%<, it 1ou%d not 2#ve )een pre$#ture 0or petitioners to 2#ve 0i%ed # petition )e0ore t2e CA, upon t2e issu#n(e )< t2e RTC C#%oo(#n o0 # 1rit o0 eAe(ution, )e(#use t2e RTC C#%oo(#n #%re#d< denied t2eir Opposition to /or@#>s :otion 0or EAe(ution on t2e suret< )ond. I0, #s petitioners insist, t2e< 2#d # $eritorious (2#%%en&e to t2e s#tis0#(tion o0 t2e 1rit o0 eAe(ution, t2e< s2ou%d 2#ve i$$edi#te%< 0i%ed # Petition 0or Certiorari 1it2 t2e CA #nd t2erein #%%e&ed t2e eA(eption#% (ir(u$st#n(e 1#rr#ntin& t2e non-0i%in& o0 # $otion 0or re(onsider#tion. Petitioners s2ou%d not 2#ve persisted on 1#itin& 0or t2e reso%ution o0 t2eir O$ni)us :otion. He 2#ve (onsistent%< ru%ed t2#t #n order 0or t2e issu#n(e o0 # 1rit o0 eAe(ution is ordin#ri%< not #ppe#%#)%e. T2e re#son 0or t2is is t2#t t2e $erits o0 t2e (#se s2ou%d not )e de%ved into #ne1 #0ter # deter$in#tion 2#s )een $#de t2ereon 1it2 0in#%it<.3+.4 Ot2er1ise, t2ere 1ou%d )e pr#(ti(#%%< no end to %iti&#tion sin(e t2e %osin& p#rt< 1ou%d #%1#<s tr< to t21#rt eAe(ution )< #ppe#%in& 0ro$ ever< order &r#ntin& t2e 1rit. In t2is (#se, t2is #p2oris$ s2ou%d #pp%<. Ro&e%io, #0ter #&reein& to #n #$i(#)%e sett%e$ent 1it2 /or@# to put #n end to t2e (#se )e0ore t2e RTC C#%oo(#n, (#nnot 0%out (o$p%i#n(e o0 t2e (ourt order o0 eAe(ution )< re0usin& to

rei$)urse Countr< /#n=ers, t2e suret< o0 2is o)%i&#tion in t2e (o$pro$ise #&ree$ent. Sti%%, petitioners stu))orn%< re0use to p#< Countr< /#n=ers, (ontendin& t2#t t2e CA itse%0, in CA-G.R. SP No. ,8,-?, de(%#red t2#t t2e p#<$ent e00e(ted 1#s vo%unt#r<. He #re not persu#ded. Arti(%e ,-7. o0 t2e Civi% Code spe(i0i(#%%< (#%%s 0or t2e #pp%i(#tion o0 t2e provisions on so%id#r< o)%i&#tions to suret<s2ip (ontr#(ts. In p#rti(u%#r, Arti(%e *,*. o0 t2e Civi% Code re(o&niIes t2e ri&2t o0 rei$)urse$ent 0ro$ # (o-de)tor 5t2e prin(ip#% (o-de)tor, in (#se o0 suret<s2ip6 in 0#vor o0 t2e one 12o p#id 5 i.e., t2e suret<6.3+84 In (ontr#st, Arti(%e *,*8 o0 t2e Civi% Code is de0initive on 12en rei$)urse$ent is un#v#i%in&, su(2 t2#t on%< t2ose p#<$ents $#de a+&(, &'( o5014a&1on 'a2 .,(23,15(d o, 5(3a-( 100(4a0 s2#%% not entit%e # so%id#r< de)tor to rei$)urse$ent. No12ere in t2e invo=ed CA 'e(ision does it de(%#re t2#t # suret< 12o p#<s, )< virtue o0 # 1rit o0 eAe(ution, is not entit%ed to rei$)urse$ent 0ro$ t2e prin(ip#% (o-de)tor. T2e CA 'e(ision 1#s (on0ined to t2e $ootness o0 t2e issue presented #nd petitioners> pre(%usion 0ro$ t2e re%ie0 it pr#<ed 0or, i.e., # st#< o0 t2e 1rit o0 eAe(ution, (onsiderin& t2#t t2e 1rit 2#d #%re#d< )een s#tis0ied. :ore i$port#nt%<, t2e Inde$nit< A&ree$ent si&ned )< Ro&e%io #nd t2e ot2er petitioners eAp%i(it%< provided 0or #n in(ontest#)i%it< (%#use on p#<$ents $#de )< Countr< /#n=ers. T2e s#id (%#use re#ds:
INCONTESTA/I ITY OD PAY:ENTS :A'E /Y THE CO:PANY: - An< p#<$ent or dis)urse$ent $#de )< 3Countr< /#n=ers4 on #((ount o0 t2e #)ove-$entioned /ond, its rene1#%s, eAtensions, #%ter#tions or su)stitutions eit2er in t2e )e%ie0 t2#t 3Countr< /#n=ers4 1#s o)%i&#ted to $#=e su(2 p#<$ent or in t2e )e%ie0 t2#t s#id p#<$ent 1#s ne(ess#r< or eApedient in order to #void &re#ter %osses or o)%i&#tions 0or 12i(2 3Countr< /#n=ers4 $i&2t )e %i#)%e )< virtue o0 t2e ter$s o0 t2e #)ove$entioned /ond, its rene1#%s, eAtensions, #%ter#tions, or su)stitutions, s2#%% )e 0in#% #nd s2#%% not )e disputed )< t2e undersi&ned, 12o 2ere)< @oint%< #nd sever#%%< )ind t2e$se%ves to inde$ni0< 3Countr< /#n=ers4 o0 #n< #nd #%% su(2 p#<$ents, #s st#ted in t2e pre(edin& (%#uses.

In (#se 3Countr< /#n=ers4 s2#%% 2#ve p#id, sett%ed or (o$pro$ised #n< %i#)i%it<, %oss, (osts, d#$#&es, #ttorne<>s 0ees, eApenses, (%#i$s, de$#nds, suits, or @ud&$ents #s #)ove-st#ted, #risin& out o0 or in (onne(tion 1it2 s#id )ond, #n ite$iIed st#te$ent t2ereo0, si&ned )< #n o00i(er o0 3Countr< /#n=ers4 #nd ot2er eviden(e to s2o1 s#id p#<$ent, sett%e$ent or (o$pro$ise, s2#%% )e pri$# 0#(ie eviden(e o0 s#id p#<$ent, sett%e$ent or (o$pro$ise, #s 1e%% #s t2e %i#)i%it< o0 3petitioners4 in #n< #nd #%% suits #nd (%#i$s #&#inst 3petitioners4 #risin& out o0 s#id )ond or t2is )ond #pp%i(#tion.

Ine%u(t#)%<, petitioners #re o)%i&#ted to rei$)urse Countr< /#n=ers t2e #$ount o0 P+.-,---.--. Din#%%<, petitioners desper#te%< #tte$pt to invei&%e out o0 t2is )urden, 12i(2 is o0 t2eir o1n $#=in&, )< i$putin& # %#(= o0 initi#tive on Countr< /#n=er>s p#rt to intervene in t2e eAe(ution pro(eedin&s )e0ore t2e RTC. T2is (ontention, #s 1it2 t2e rest o0 petitioners> #r&u$ents, deserves s(#nt (onsider#tion. Su00i(e it to st#te t2#t Countr< /#n=ers is # suret< o0 t2e o)%i&#tion 1it2 # pen#% (%#use, (onstituted in t2e (o$pro$ise @ud&$entK it is not # @oint #nd so%id#r< (o-de)tor o0 Ro&e%io. In t2e re(ent (#se o0 Esca$o !. %rtigas,3+;4 1e e%u(id#ted on t2e distin(tion )et1een # suret< #s # (o-de)tor under # suret<s2ip #&ree$ent #nd # @oint #nd so%id#r< (o-de)tor, t2us:
5A6s indi(#ted )< Arti(%e ,-7., # suret<s2ip reEuires # prin(ip#% de)tor to 12o$ t2e suret< is so%id#ri%< )ound )< 1#< o0 #n #n(i%%#r< o)%i&#tion o0 se&re&#te identit< 0ro$ t2e o)%i&#tion )et1een t2e prin(ip#% de)tor #nd t2e (reditor. T2e suret<s2ip does not )ind t2e suret< to t2e (reditor, in#s$u(2 #s t2e %#tter is vested 1it2 t2e ri&2t to pro(eed #&#inst t2e 0or$er to (o%%e(t t2e (redit in %ieu o0 pro(eedin& #&#inst t2e prin(ip#% de)tor 0or t2e s#$e o)%i&#tion. At t2e s#$e ti$e, t2ere is #%so # %e&#% tie (re#ted )et1een t2e suret< #nd t2e prin(ip#% de)tor to 12i(2 t2e (reditor is not priv< or p#rt< to. T2e $o$ent t2e suret< 0u%%< #ns1ers to t2e (reditor 0or t2e o)%i&#tion (re#ted )< t2e prin(ip#% de)tor, su(2 o)%i&#tion is eAtin&uis2ed. At t2e s#$e ti$e, t2e suret< $#< see=

rei$)urse$ent 0ro$ t2e prin(ip#% de)tor 0or t2e #$ount p#id, 0or t2e suret< does in 0#(t B)e(o$e su)ro&#ted to #%% t2e ri&2ts #nd re$edies o0 t2e (reditor.C

A"EREFORE, t2e Petition is DENIED. T2e 'e(ision o0 t2e Court o0 Appe#%s in CA-G.R. C.V. No. 789-+ is 2ere)< AFFIRMED. Costs #&#inst t2e petitioner. SO ORDERED.