Enforcement of Judgment

Upon judgment or Final Order

Rule 39, Section 1 Execution shall issue as a matter of right, on motion, upon a judgment or order that disposes of the action or proceeding upon the expiration of the period to appeal therefrom if no appeal has been duly perfected.

If the appeal has been duly perfected and finally resolved, the execution may forthwith be applied for in the court of origin, on motion of the judgment obligee, submitting therewith certified true copies of the judgment or judgments or final order or orders sought to be enforced and of the entry thereof, with notice to the adverse party.
The appellate court may, on motion in the same case, when the interest of justice so requires, direct the court of origin to issue the writ.

 The general rule is that execution is a matter of right.

Issuance of a writ of execution becomes a ministerial duty of the court once a decision becomes final and executory. Judgments and orders become final and executory by operation of law in to aspects: A) For purposes of binding effect, finality arises when the reglementary period for appeal lapses , and no appeal is perfected within such period. B) For purposes of appeal, an order is final if it disposes of the action, when nothing is left to be done in the trial court with respect to the merits of the case.

 There is therefore a need to file a motion for the issuance of a writ of execution.
Even in judgments which are immediately executory, there must be a motion to that effect and a hearing called for the purpose.

Once an appeal has been duly perfected and resolved, the prevailing party can do the following:
1. 2. 3. secure certified true copies of the judgment or final order of the appellate court; and the entry thereof, and submit the same to the court of origin with and to justify his motion for a writ of execution.

The prevailing party need not wait anymore for the records of the case to be remanded to the court of origin.

 That motion must contain a notice to the adverse party. A motion which does not contain a notice of hearing of the time and place for the hearing of the motion is a worthless piece of paper which the court has no right to receive and which the court has no authority to act upon. The Appellate Court also has the power to require execution and can direct the issuance of the writ of execution. But this is only in cases when the interest of justice so requires.

Effect of Judgment
Section 46, Rule 39: Judgment rendered against a SURETY PRINCIPAL IS ALSO BOUND from the time that he has (a) notice of the action or proceeding and (b) an opportunity at the suretys request to join in the defense. Judgment rendered against a PRINCIPAL SURETY CAN BE BOUND ONLY IF HE IS IMPLEADED in the action or given the opportunity to be heard. Otherwise, the writ of execution will be void against the surety.

Section 47, Rule 39 (A) Rule on RES JUDICATA in judgments in rem - CONCLUSIVE: If the judgment or final order is on a specific thing, the same is conclusive upon the title to the thing. If the judgment or final order is in respect to the probate of a will, or the administration of the estate of a deceased person, the same is conclusive upon the will or administration (but not a conclusive presumption of death). If the judgment or final order is in respect to the personal, political or legal condition or status of a particular person or his relationship to another, the judgment or final order is conclusive upon the condition, status or relationship.

(B) Rule of res judicata in judgments in personam (bar by prior judgment): In other cases, if the judgment be with respect to the matter directly adjudged or as to any other matter that could have been raised in relation thereto, the judgment or final order is conclusive between the parties and their successors in interest by title subsequent to the commencement of the action or special proceeding, litigating for the same thing and under the same title and in the same capacity. (C) Rule of conclusiveness of judgment: In any other litigation between the same parties or their successors in interest, that only is deemed to be adjudged in a former judgment or final order which appears upon its face to have been so adjudged, or which was actually and necessarily included therein or necessary thereto.

Section 48, Rule 39 Rule on foreign judgments: Foreign judgments are conclusive if in rem and presumptive if in personam.
The judgment of a foreign tribunal cannot be enforced by execution in the Philippines. It is necessary that a civil action be filed in our courts, primarily to allow the losing party an opportunity to challenge the judgment on any of the following grounds provided by the rules which includes:
want of jurisdiction, want of notice to the party, collusion, fraud, and clear mistake of law or fact.

Discretionary Execution Pending Appeal

Sec. 2 of Rule 39 The court may allow an execution even before the expiration of the period for appeal or pending appeal when there is compliance of the following requisites:
1. There must be a motion filed by the prevailing party with notice to the adverse party; 2. There must be a hearing of the motion for discretionary execution. 3. There must be good reasons to justify the discretionary execution. 4. The good reasons must be stated in a special order.

 The good reasons are what confer discretionary power upon the court to issue a writ of execution pending appeal. Examples of what constitutes good reasons from jurisprudence include:
a) proven insolvency of the judgment debtor, b) prevention of irreparable injury, c) the fact that goods subject of the judgment will perish or deteriorate during the pendency of the appeal, a fact which would render the judgment in favour of the prevailing party ineffective d) Section 19, Rule 70 (1) failure in an unlawful detainer case to make the required periodic deposits to cover the amount of rentals due under the contract or for payment of the reasonable value of the use and occupation of the premises or the (2) failure to post a supersedeas bond

Ong v CA
In Ong v CA, the Supreme Court did not consider as good reasons that a) that the appeal was frivolous and dilatory, and that b) sufficient bond required by the court had been posted. A) Deprivation of the right to appeal. The authority to disapprove an appeal rightfully pertains to the appellate court. B) . . . to consider the mere posting of a bond a "good reason" would precisely make immediate execution of a judgment pending appeal routinary, the rule rather than the exception. not intended by law (it should be discretionary)

 A motion for discretionary execution must be filed in the trial court while it has jurisdiction over the case and is in possession of either the original record or the record on appeal as the case may be. After the trial court has lost jurisdiction, the motion for execution pending appeal may be filed in the appellate court.

Universal Far East v CA

Trial court had jurisdiction to issue the order of execution pending appeal because the motion for execution was filed before Ching had perfected his appeal and it was resolved before the trial court which on Ching's appeal elevated the record to the Appellate Court. The Court reasoned that while it may be argued that the trial court should dispose of the motion for execution within the reglementary fifteen-day period, such a rule would be difficult, if not impossible, to follow.
The motion for execution has to be set for hearing. The judgment debtor has to be heard. The good reasons for execution pending appeal have to be scrutinized. These things cannot be done within the short period of fifteen days.

Where Discretionary Exectuion is Reserved or Annulled

Section 5, Rule 39 Trial court, may on motion, issue such order of restitution or reparation for the damages as equity and justice may warrant under the circumstances.

1. RESTITUTION - the property itself must be returned to the judgment debtor, if the same is still in the possession of the judgment creditor, plus compensation to the former for the deprivation and use of the property.
2. REPARATION

If RESTITUTION not possible REPARATION by the JUDGMENT CREDITOR : If purchaser at the public auction is the judgment creditor, - Pay the value of the property at the time of its seizure, plus interest thereon; If the purchaser at the public auction was a third person, - Pay the judgment debtor the amount realized from the sale of said property at the sheriffs sale, with interest thereon; If the judgment award was reduced on appeal, - Return the excess which he received over and above what he was entitled to with interest thereon.

Stay of Execution
Section 4, Rule 39: General rule : An appeal perfected in due time stays the execution of judgment. Exceptions: Those judgments which by express provision of the rules are immediately executory and not stayed by an appeal as provided for in Section 4, Rule 39 which include a) judgment for injunction, b) judgment for receivership, c) judgment for accounting, and d) judgment for support. NOT AN ABSOLUTE RULE because the court is authorized to order otherwise. The stay of the execution of the above judgments, if ordered by the trial court, shall be upon such terms as to bond or otherwise as may be considered proper for the security of the protection of the rights of the adverse party.

 And those judgments that have become the object of discretionary execution.
Section 3, Rule 39: Discretionary execution may also be stayed but only upon approval by the proper court of a sufficient supersedeas bond filed by the party against whom it is directed, conditioned upon the performance of the judgment or order allowed to be executed in case it shall be finally sustained in whole or in part. The bond thus given may be proceeded against on motion with notice to the surety.

Modes of Execution
Rule 39, Section 6 By motion - within five (5) years after the date of entry of the final judgment or order By independent action or action for revival of judgment after the lapse of the 5-year period, but within ten (10) years after date of entry of final judgment or order

By Motion
When is the 5-year period interrupted? Delay caused by the judgment obligor or for his benefit When the execution is stayed by: - by the parties agreement for a definite time - by injunction - by taking an appeal

Venue for action for revival of judgment (Rule 39, Sec. 6)

Is it a real or personal action? (Infante vs. Aran Builders, Inc., 2007)

When the 5 and 10-year period do not apply

Special proceedings Judgment for supports which do not become dormant because it is a continuing obligation

Revival of Judgment Section 6 vs. Section 34

- sought by judgment obligee - sought by the purchaser of real property that was sold in an execution sale - Judgment not executed - Judgment actually on motion executed - independent action - motion

Execution in case of death of a party Rule 39, Section 8

Death of judgment obligee: Execution NOT prevented application by executor, administrator or successor in interest Death of judgment obligor: Execution NOT prevented a. before levy: issued against executor or administrator or enforcement of a lien b. after levy: property may be sold for the satisfaction of the judgment obligation - any surplus is returned to the executor or administrator

Forms and Contents of Writ

1. Issued in the name of the Republic of the Philippines from the court which granted the motion 2. State the name of the court, case number and title, the dispositive part of the subject judgment or order; and 3. Require the sheriff or other proper officer to whom it is directed to enforce the writ according to its terms, in the manner provided below.

a. b.

c.

d.

Against the property of the judgment obligor: to satisfy the judgment out of the real or personal property of such judgment obligor, with interest; Against real or personal property in the hands of personal representatives, heirs, devisees, legatees, tenants, or trustees of the judgment obligor: to satisfy the judgment out of such property, with interest; For the sale of real or personal property: to sell such property, describing it, and apply the proceeds in conformity with the judgment, the material parts of which shall be recited in the writ of execution; For the delivery of the possession of real or personal property: to deliver the possession of the same, describing it, to the party entitled thereto, and to satisfy any costs, damages, rents, or profits covered by the judgment out of the personal property of the person against whom it was rendered, and if sufficient personal property cannot be found, then out of the real property.

The writ of execution shall specifically state: a. b. c. d. e. the amount of the interest, costs, damages, rents, or profits due as of the date of the issuance of the writ, aside from the principal obligation under the judgment.

Thus, the motion for execution shall specify the amounts of the foregoing reliefs sought by the movant.

Form 17. Order of Execution.

To the Sheriff (or his deputy)

Province of _____________
You are hereby commanded that, of the goods and chattels of ____________ (defendant), you cause to be made the sum of __________ pesos for damages, together with interest thereon from the date of this execution until the date of payment, at the rate of six per centum per annum; and the further sum of ___________ pesos for costs of suit, together with your lawful fees for the service of this execution, all in the Philippine currency, which ____________ (plaintiff) recovered in our Regional Trial Court of

________ on the____ day of _______, 20__, against _________ (defendant) for damages, interest, and costs, and that you render the same to the said _________ (plaintiff) aside from your own fees on this execution, and do you likewise return this writ into court within _____ days from date, with your proceedings endorsed thereon. But, if sufficient personal property cannot be found whereof to satisfy this execution and lawful fees thereon, then you are commanded that the lands and buildings of the said defendant you make the said sums of money in the manner required by the Rules of Court, and make return of your proceedings with this writ within ______ days from date.
Witness the Honorable ________ Judge of said court, this __ day of ______, 20__.

3 Types of Awards depending on the Relief Sought

Execution for judgments of money (Rule 39, Section 9) Execution of Judgments from Specific Act (Rule 39, Section 10)

Execution of Special Judgments (Rule 39, Section 11)

A. Execution for judgments of money (Rule 39, Section 9)

a. immediate payment on demand, Section 9 (a) b. satisfaction by levy, Section 9 (b)
c. garnishment of debts and credits, Section 9 (c)

a. Immediate Payment on Demand

Section 9 (a) Sheriff demands from the judgment obligor the immediate payment of the full amount stated in the judgment and all lawful fees in: a. cash b. certified check payable to the judgment obligee or c. any other form of payment acceptable to such judgment obligee.

Judgment debt and lawful fees

At the time of payment, judgment obligee or his duly authorized representative may either be:
- present - Not present

b. Satisfaction by Levy Section 9 (b)

Levy on execution is the writ issued by the court after judgment by which the property of the judgment obligor is taken into custody of the court before the sale of the property on execution for the satisfaction of a final judgment.

b. Satisfaction by Levy Section 9 (b)

What properties may be levied upon? Real property Stocks Shares Debts Credits And other personal property, or any interest therein, which may be disposed of for value and not otherwise exempt from execution

b. Satisfaction by Levy Section 9 (b)

Judgment obligor: chooses which of his properties would be levied
Otherwise, sheriff shall first levy on his: a. Personal properties b. If (a) is insufficient, then, real properties

c. Garnishment of Debts and Credits Section 9 (c)

Garnishment is a kind of attachment in which the plaintiff seeks to subject either the property of the defendant in the hands of a third person called the garnishee, to his claim or the money which said third person owes the defendant.

c. Garnishment of Debts and Credits Section 9 (c)

How made? by serving notice upon the third person having in possession or control of the credits in favor of the judgment obligor written report within 5 days from service of notice stating WON amount held is sufficient a. Sufficient: deliver cash or certified check to judgment obligee within 10 working days from service of notice; lawful fees directly paid to court b. Insufficient: report the amount held

B. Execution of Judgments from Specific Act, Rule 39, Section 10

1. Conveyance, delivery of deeds, or other specific acts; vesting title 2. Sale of real or personal property 3. Delivery or restitution of real property 4. Removal of improvements on property subject of execution 5. Delivery of personal property

Execution of special judgments (Rule 39, Sec. 11)

Judgment requires performance of any act other than those in Sec. 9 (money judgments) and Sec. 10 (sale or delivery of property) A certified copy of the judgment is attached to the writ of execution and served upon the party against whom the judgment is rendered, or upon any other person required to obey the same The party may be punished for contempt for disobeying the judgment

Return of writ of execution (Rule 39, Sec. 14)

Judgment has been satisfied in part or in full - The writ is returnable to the court issuing it immediately

Return of writ of execution (Rule 39, Sec. 14)

Judgment cannot be satisfied in full within 30 days from receipt by the officer - The officer shall report to the court and state the reason for failure to satisfy the judgment - The officer shall make a report to the court every 30 days on the proceedings taken until the judgment is satisfied in full, or until its effectivity expires

Return of writ of execution (Rule 39, Sec. 14)

Returns or periodic reports - Shall set forth the whole of the proceedings taken - Shall be filed with the court - Copies shall be promptly furnished the parties

Property exempt from execution (Rule 39, Sec. 13)

Except as otherwise expressly provided by law, the properties enumerated, and no other, shall be exempt from execution The properties enumerated are not exempt from execution if the judgment is for the recovery of the price of said properties or upon a foreclosure of mortgage thereon

Property exempt from execution (Rule 39, Sec. 13)

Family home or homestead in which the judgment obligor resides, and land necessarily used in connection therewith - The family home is the dwelling house where the family reside, and the land on which it is situated (Art. 152, FC) - It is exempt from execution except as provided by the Family Code and to the extent of the value allowed by law (Art. 153, FC)

Property exempt from execution (Rule 39, Sec. 13)

Family home or homestead in which the judgment obligor resides, and land necessarily used in connection therewith - The family home is exempt from execution, except: (1) for non-payment of taxes; (2) for debts incurred prior to the constitution of the family home; (3) for debts secured by mortgages on the premises before or after its constitution; and (4) for debts arising from the construction of the building (Art. 155, FC)

Property exempt from execution (Rule 39, Sec. 13)

Family home or homestead in which the judgment obligor resides, and land necessarily used in connection therewith - The actual value of the family home shall not exceed P300,000 in urban areas, and P200,000 in rural areas, or such amounts as may be fixed by law - If the value of currency changes after the adoption of the FC, the value most favorable for the constitution of a family home shall be the basis of evaluation (Art. 157, FC)

Property exempt from execution (Rule 39, Sec. 13)

Family home or homestead in which the judgment obligor resides, and land necessarily used in connection therewith - If the claim is not among those mentioned in Art. 155, FC, and the creditor has reasonable grounds to believe that the actual value of the family home is more than the maximum amount fixed, the creditor may apply to the court for an order directing the sale of the property under execution - The minimum amount of bid to be considered is the value allowed for a family home (Art. 160, FC)

Property exempt from execution (Rule 39, Sec. 13)

Ordinary tools and implements personally used in trade, employment or livelihood 3 horses, or cows, or carabaos, or other beasts of burden, such as the judgment obligor may select necessarily used in ordinary occupation Necessary clothing and articles for ordinary personal use, excluding jewelry Household furniture and utensils necessary for housekeeping, of a value not exceeding P100,000

Property exempt from execution (Rule 39, Sec. 13)

Provisions for individual or family use sufficient for 4 months Professional libraries and equipment of professionals, value not exceeding P300,000 1 fishing boat and accessories owned by a fisherman, used for livelihood, value not exceeding P100,000 Salaries, wages, earnings for personal services within 4 months preceding the levy as are necessary of the support of his/her family

Property exempt from execution (Rule 39, Sec. 13)

Lettered gravestones Monies, benefits, privileges, annuities accruing or growing out of any life insurance Right to receive legal support, or money or property obtained as support, or any pension or gratuity from the Government

Property exempt from execution (Rule 39, Sec. 13)

Properties specially exempted by law - RA 4917 Retirement benefits received by officials and employees of private firms in accordance with a reasonable private benefit plan, subject to the conditions provided

Effect of levy on execution (Rule 39, Sec. 12)

Levy on execution shall create on the property a lien in favor of the judgment obligee over the right, title and interest of the judgment obligor in such property The lien in favor of the judgment obligee is subject to liens and encumbrances existing at the time of levy

THIRD PARTY CLAIMS

When Available
Sheriff erroneously levies on and seizes property of a third person in which said defendant holds no right or interest

Remedies Available
to a 3rd Party Claimant or any 3rd Person

1. Terceria
In same court where execution judgment had

2. Filing of a separate action (by 3rd-Party Claimant)

distinct and separate from that in which judgment is being enforced

3. Filing of claim for damages (by a judgment obligee)

Proceedings to be undertaken (Terceria)

Third party claimant to execute an Affidavit stating grounds of such title or right of possession over property levied copy must be served upon 1) officer making levy 2) judgement obligee

EFFECT of FILING (Terceria)

a) (Levying) Officer shall not be bound to keep the property, unless
judgment obligee upon demand of the officer files a bond (indemnity bond)
approved by the Court to indemnify 3rd party claimant in sum not less than value of property levied on

but Sheriff has discretion to dispense with indemnity bond

EFFECT of FILING (Terceria)

b. No claim for damages for the taking or keeping of the property may be enforced against the bond unless action therefor is filed within 120 days from date of filing of the bond

EFFECT of FILING (Terceria)

c. Officer not liable for damages for the taking or keeping of the property, to the 3rd party claimant, if such bond is filed.

When FILING of Separate Action

Available by 3P Claimant
Purposes :
a) to recover possession of property seized by Sheriff b) damages resulting from wrongful seizure and detention thereof despite 3rd-party claim c) may be brought against Sheriff and such other parties who may have colluded with him in wrongful execution proceedings (i.e., judgment creditor himself)

When FILING by a Judgment Obligee Available

Frivolous and plainly spurious claim was filed by a 3rd-Party Claimant filed in a) same court where 3rd-party claim is pending; or b) in a separate action for damages Purpose: in order for Court to require filing of proper pleadings and hold trial, so as to give parties to submit their respective evidence

EXECUTION SALE

Notice of sale of property on execution required

(a) Perishable Property

posting of written notice of time & place of sale in 3 public places preferably conspicuous areas of - municipal/city hall - post office - public market of municipality/city where sale to take place for such reasonable time considering character and condition of property

Notice of sale of property on execution required

(b) Personal property
posting of written notice of time & place of sale in 3 public places preferably conspicuous areas of - municipal/city hall - post office - public market of municipality/city where sale to take place for not less than 5 days

Notice of sale of property on execution required

(c) Real Property
posting of written notice of time & place of sale - particularly describing property - stating where property is to be sold - if assessed value exceeds P50K, publish copy of notice
once a week for 2 consecutive weeks in newspaper of general circulation in city/municipality selected by raffle

in 3 public places preferably conspicuous areas of - municipal/city hall - post office - public market of municipality/city where sale to take place for 20 days

Notice of sale of property on execution required

In all cases, 1) written notice to be given to judgment obligor
at least 3 days before the sale except, in case of (a) perishable property in same manner as personal service of pleadings and other papers as provided by Sec 6, Rule 13

Notice of sale of property on execution required

2) place, date and exact time of sale, w/c should be between 9 A.M.-2 P.M. must be specified
a. real property not capable of manual delivery
parties may agree on place of sale absent which, sale shall be held in OCC, RTC/MTC which issued writ or designated by appellate court

b. personal property capable of manual delivery

sale shall be held in place where property located

Penalty for Sale without Notice

Recoverable by motion in the same action P5,000.00 punitive damages due to any person injured thereby actual damages

Penalty for Defacing Notice

What is penalized willfully removing or defacing notice posted if done before the sale or before satisfaction of judgment if it be satisfied before the sale Recoverable by motion in the same action P5,000.00 punitive damages due to any person injured thereby actual damages

Execution Sale, how prevented

at any time before sale of property on execution judgment obligor may prevent sale by paying amount required by execution plus costs incurred

Execution Sale: Proceedings

All sales of property under execution must 1. be made at public auction 2. to highest bidder 3. to start at exact time fixed in the notice 4. after sufficient property has been sold to satisfy the execution
no more shall be sold Any excess property/sale proceeds to be promptly delivered to judgment obligor/authorized rep

Execution Sale: Order of Sale

1. Real Property consisting of several known lots a) must be sold separately b) when portion claimed by a 3rd person,
he may require it to be sold separately

Execution Sale: Order of Sale

1. Personal Property consisting capable of manual delivery a) must be sold within view of those attending sale b) in such parcels as are likely to bring highest price
he may require it to be sold separately

Execution Sale: Who May Direct Manner and Order of Sale

Judgment obligor, if present at sale, may direct order of sale of real or personal property
when such property consists of several know lots or parcels which can be sold to advantage separately

Execution Sale: Who are Prohibited to Purchase

Neither the 1.Officer conducting the execution sale or 2.his deputies

can become purchaser nor be interested directly or indirectly in any purchase at such sale

Execution Sale: Refusal of Purchaser to Pay

If purchaser refuses to pay amount bid by him, Officer may again sell property to highest bidder shall not be responsible for any loss occasioned thereby may thereafter reject any subsequent bid of such refusing purchaser but court may order refusing purchaser to pay into the court amount of such loss and punish him for contempt of court if he disobeys order

Execution Sale: Refusal of Purchaser to Pay

To whom amount of such payment due 1. person entitled to proceeds of execution
unless execution has been fully satisfied, otherwise, to

2. judgment obligor

Execution Sale
when judgment obligee is purchaser and no 3rd party claim has been filed he need not pay amount of bid - provided, it does not exceed amount of his judgment - if it exceeds, need pay only the excess

Execution Sale: Adjournment

1. by agreement of judgment obligor and
obligee written consent to any date and time agreed upon

2. may adjourn from day to day

if it becomes necessary to do so for lack of time to complete sale on day fixed in notice or day to which it was adjourned

Execution Sale: Conveyance to Purchaser

1. Purchaser of Personal Property capable of manual delivery
Officer making sale must deliver property and if desired, execute and deliver to him a Certificate of Sale

Sale conveys to purchaser all rights which judgment obligor had in such property as of date of levy on execution.

Execution Sale: Conveyance to Purchaser

2. Purchaser of Personal Property not capable of manual delivery
Officer making sale must execute and deliver a Certificate of Sale

Sale conveys to purchaser all rights which judgment obligor had in such property as of date of levy on execution.

Execution Sale: Conveyance to Purchaser

3. Purchaser of Real Property Officer making sale must give to purchaser a Certificate of Sale containing:
particular description of real property price paid for each distinct lot/parcel whole price paid statement that right of redemption expires 1 yr from date of registration of certificate of sale

Certificate must be registered in registry of property of deeds of place where property situated.

Execution Sale: Recovery of Price

If purchaser of real property sold on execution or his successor-in-interest
1. fails to recover possession thereof 2. or is evicted therefrom

in consequence of
1. irregularities in sale proceedings 2. judgment has been reversed/set aside 3. property sold exempt from execution 4. a 3rd person has vindicated his claim to the property

Execution Sale: Recovery of Price

he may, 1. on motion in same action, or 2. in separate action, recover from judgment obligee price he paid w/ interest or so much thereof as has not been delivered to judgment obligor 3. or have original judgment revived in his name for the whole price w/ interest or so much thereof as has not been delivered to judgment obligor

Execution Sale: Recovery of Price

Judgment so revived shall have same force and effect as an original judgment would have as of the date of revival and no more.

(Rule 39, Sec. 34)

Execution Sale: Right to contribution

When property liable to an execution against several persons is sold thereon

and more than a due proportion of judgment is satisfied out of proceeds of sale of the property of one of them or one of them pays, without a sale, more than his proportion he may compel a contribution from the others (Rule 39, Sec. 35)

Execution Sale: Right to reimbursement

When a judgment is upon an obligation of one of them

as security for another And the surety pays the amount, or any part thereof Either by sale of his property or before sale he may compel repayment from the principal (Rule 39, Sec. 35)

Redemption from Execution Sale

Rule 39 Section 27. Who may redeem real property so sold. Real property sold, or any part thereof sold separately, may be redeemed by the following: (a) Judgment obligor or his successor in interest
successor in interest include:
Person to whom he has transferred his right of redemption One to whom he has conveyed his interests in the property for purposes of redemption One who succeeds to his property by operation of law Person with joint interest in the property Spouse or heirs

(b) Redemptioner creditor having a lien by virtue of an attachment, judgment or mortgage on the property sold or any part thereof, subsequent to the lien under which the property was sold.
If lien of a creditor is prior to the judgment under which the property was sold, not a redemptioner.

Redemption from Execution Sale

Rule 39 Section 28. Time and manner of, and amounts payable on, successive redemptions; notice to be given and filed.

Time: Redemption of property from the purchaser at any time within one (1) year from the date of the registration of the certificate of sale Amounts Payable: Amount of purchase Additional one per centum per month interest up to the time of redemption Amount of any assessment or taxes paid after purchase and interest at same rate If purchaser is also a creditor having a prior lien, amount of such other lien with interest

Redemption from Execution Sale

Rule 39 Section 28. Time and manner of, and amounts payable on, successive redemptions; notice to be given and filed. Successive Redemption: Property so redeemed may again be redeemed within 60 days after the last redemption Amounts Payable:
Sum paid on last redemption with additional two per centum thereon Amount of any assessment or taxes paid after purchase and interest Amount of any liens held by last redemptioner prior to his own with interest

Redemption from Execution Sale

Rule 39 Section 28. Time and manner of, and amounts payable on, successive redemptions; notice to be given and filed. Notice: Notice of the following to be given to the officer who made the sale and duplicate filed with the registry of deeds of the place:
any redemption payment of any assessments or taxes by the redemptioner any lien acquired other than that upon which the redemption was made

If no notice filed, property may be redeemed without paying such assessments, taxes or liens

Redemption from Execution Sale

Rule 39 Section 29. Effect of redemption by judgment obligor, and a certificate to be delivered and recorded thereupon; to whom payment on redemption made. If judgment obligor redeems: must make same payments as required to effect a redemption by a redemptioner
No further redemption allowed and he is restored to his estate.

Person to whom redemption payment is made: must execute and deliver a certificate of redemption acknowledged before a notary public or authorized officer
Certificate must be filed and recorded in the registry of deeds of place where the property is situated Registrar of deeds must note the record thereof on the margin of the record of the certificate of sale.

Redemption payments may be made to the following:

Purchaser Redemptioner Officer who made the sale (for the purchaser/redemptioner)

Redemption from Execution Sale

Rule 39 Section 30. Proof required of redemptioner.
A redemptioner must produce to the officer, or person from whom he seeks to redeem, and serve notice to the officer, the following:
Copy of judgment of final order under which he claims the right to redeem, certified by the clerk of court wherein the judgment or final order is entered; or, If redeems upon a mortgage or other lien, a memorandum of record thereof, certified by the registrar of deed; or, Original or certified copy of any assignment necessary to establish his claim; and Affidavit executed by him or his agent showing the amount actually due on the lien.

Redemption from Execution Sale

Rule 39 Section 31. Manner of using pending redemption; waste restrained. Manner of Using pending redemption:
Until the expiration of the time allowed for redemption, court may restrain the commission of waste on the property by injunction, on the application of the purchaser or the judgment obligee

Not waste for a person in possession of property at time of sale, or entitled to possession afterwards, during the period allowed for redemption to undertake the following:
to continue to use it in the same manner in which it was previously used; to use it in the ordinary course of husbandry; or to make the necessary repairs to buildings thereon while he occupies the property

Redemption from Execution Sale

Rule 39 Section 32. Rents, earnings and income of property pending redemption. Purchaser or redemptioner: not entitled to rents, earnings and income of property sold on execution, or value of the use and occupation thereof when property is in possession of a tenant. Judgment obligor: entitled to all rents, earnings and income derived from the property until expiration of period of redemption

Redemption from Execution Sale

Rule 39 Section 33. Deed and possession to be given at expiration of redemption period; by whom executed or given. Judgment obligor has entire period of 1 year from date of registration of the certificate of sale to redeem the property. If no redemption made within 1 year from date of registration of certificate of sale: purchaser entitled to conveyance and possession of property.

If redeemed whenever 60 days have elapsed and no other redemption made at expiration of redemption period: last redemptioner entitled to conveyance and possession.
Upon expiration of right of redemption, purchaser or redemptioner substituted to and acquire all rights, title, interest and claim of judgment obligor to the property as of the time of the levy. Officer making the sale or his successor in office to execute the deed of conveyance and possession. Possession to be given to purchaser or last redemptioner unless a third party is actually holding the property adversely to the judgment obligor.

Case 1: Josefina B. Cenas and The Provincial Sheriff of Rizal, petitioners, vs. Spouses Antonio P. Santos and Dra. Rosario M. Santos and Hon. Pedro C. Navarro, Presiding Judge, CFI-Rizal, Branch III, respondents (G.R. No. L-49576, 21 November 1991)
Facts: In May 1976, spouses Pulido mortgaged to Pasay City Savings and Loan Association their land to secure a loan of P10,000.00. Mortgage was registered with the Registry of Deeds and annotated in the title of the property. City Sheriff levied on the mortgaged land pursuant to a writ of execution issued by CFI-QC in a civil case involving Pulido (wife). Land was sold to petitioner Cenas who was the highest bidder in the execution sale. Loan Association assigned to petitioner Cenas all its rights, interests and participation to the said mortgage for the sum of P8,110.00 representing the unpaid obligation of Pulidos. In July 1977, private respondent Dra. Santos redeemed the property, paying a sum of P15,718.00. The City Sheriff issued a Certificate of Redemption. In April 1978, petitioner Cenas filed with the Office of the Provincial Sheriff of Rizal a verified petition for extra-judicial foreclosure of mortgage. Property was advertised for auction sale. Apprised of the impending auction sale, private respondents Santoses filed an affidavit of adverse claim with the Provincial Sheriff and a verified Petition for Prohibition with Preliminary Injunction with the respondent court to enjoin the Provincial Sheriff from proceeding with the auction sale. CFI rendered judgment in favor of private respondents, holding that the redemption of property by the private respondents wiped-out and extinguished the mortgage in favor of the loan association.

Redemption from Execution Sale

Redemption from Execution Sale

Case 1: Josefina B. Cenas and The Provincial Sheriff of Rizal, petitioners, vs. Spouses Antonio P. Santos and Dra. Rosario M. Santos and Hon. Pedro C. Navarro, Presiding Judge, CFI-Rizal, Branch III, respondents (G.R. No. L-49576, 21 November 1991) Issue: Whether or not the redemption of the subject property by the private respondents wiped-out and extinguished the pre-existing mortgage obligation of the judgment debtor.

Held: NO. Under Section 30, Rule 39 of the Rules of Court, if the purchaser is also a creditor having a prior lien to that of the redemptioner, other than the judgment under which such a purchase was made, the redemptioner has to pay, in addition to the prescribed amounts, such other prior lien of the creditor-purchaser with interest. Petitioner Cenas, as assignee of the mortgage constituted over the subject property, is also a creditor having a prior lien to that of Dra. Santos. The acceptance of the redemption amount by the petitioner, without demanding payment of her prior lien cannot wipe out and extinguish said mortgage obligation. The mortgage directly and immediately subjects the property upon which it is imposed, whoever the possessor may be, to the fulfillment of the obligation for whose security it was constituted (Article 2126, Civil Code). A mortgage creates a real right which is enforceable against a whole world.

Redemption from Execution Sale

Case 1: Josefina B. Cenas and The Provincial Sheriff of Rizal, petitioners, vs. Spouses Antonio P. Santos and Dra. Rosario M. Santos and Hon. Pedro C. Navarro, Presiding Judge, CFI-Rizal, Branch III, respondents (G.R. No. L-49576, 21 November 1991) Issue: Whether or not the redemption of the subject property by the private respondents wiped-out and extinguished the pre-existing mortgage obligation of the judgment debtor. Held: NO. Private respondents redeemed the property in question as successor in interest of the judgment debtor. They are deemed subrogated to the rights and obligations of the judgment debtor and bound by exactly the same condition that bound the judgment debtor. Considering the lapse of time and erroneous belief of the private respondents that the property was freed from any lien after redemption, equity dictates that the foreclosure be allowed after they be given the chance to settle the mortgage obligation

Case 2: Hi-Yield Realty, Inc. petitioner, vs. Court of Appeals, Honorable Mauricio Rivera as Presiding Judge of RTC-Antipolo City, Branch 73, and Noli Francico, respondents (G.R. No. 138978, 12 September 2002)
Facts: In August 1987, private respondent Francisco, as attorney-in-fact of spouses Carawatan , mortaged a property owned by the spouses in Cainta to petitioner Hi-Yield Realty to secure a loan of P100,000.00 from the realty. Private respondent failed to pay despite repeated demands by petitioner. Petitioner extrajudicially foreclosed the property. The property was sold for P285,000.00 with petitioner as the highest bidder. A Certificate of Sale was issued to the petitioner which was registered on 13 August 1992. On 13 August 1993, private respondent filed a petition with RTC Antipolo praying that the petitioner be ordered to have the property be redeemed by private respondent after paying the amount of P285,000.00 plus 1% interest per month. Private respondent claimed that he offered to redeem the property twice prior to expiration of redemption period but petitioner refused to accept the offer but instead demanded more than P1.5 million redemption price. On 15 March 1994, RTC ordered the petitioner to submit an updated statement of account as basis for the payment of the redemption price and for private respondent to pay the redemption price within 15 days from receipt of the order. Petitioner submitted a detailed computation. Private respondent received his copy on 24 March 1994 and had until 8 April 1994 to pay the redemption price. Private respondent failed to pay on said date. Instead, he filed an Urgent Motion for Extension of Time asking for a 45-day extension because he did not have sufficient money to tender.

Redemption from Execution Sale

Case 2: Hi-Yield Realty, Inc. petitioner, vs. Court of Appeals, Honorable Mauricio Rivera as Presiding Judge of RTC-Antipolo City, Branch 73, and Noli Francico, respondents (G.R. No. 138978, 12 September 2002)
Facts: RTC denied the motion and recognized the right of petitioner to consolidate the title to the property in its name. Private respondent moved to reconsider, offering to pay the amount of P510,000.00 (managers check) and P38,872.93 (personal check). RTC issued an order contradicting its previous order. It ordered the private respondent to pay petitioner the redemption price of P548,872.93 plus 1% interest per month within 5 days from receipt of the order. Petitioner was ordered to accept the payment. When petitioner refused to accept the tender of payment, private respondent filed a motion to consign the redemption price. Petitioner moved to reconsider arguing that the period of redemption could not be extended as it is fixed by law. Trial court denied the motion for reconsideration but granted the motion to consign the redemption price. Petitioner filed a petition for certiorari with the CA. CA denied the petition ratiocinating that the oneyear redemption period should be reckoned from 13 August 1992. The filing of the action within the redemption period is equivalent to a formal offer to redeem. Francisco was able to effectively exercise his right of redemption on 13 August 1993.

Redemption from Execution Sale

Redemption from Execution Sale

Case 2: Hi-Yield Realty, Inc. petitioner, vs. Court of Appeals, Honorable Mauricio Rivera as Presiding Judge of RTC-Antipolo City, Branch 73, and Noli Francico, respondents (G.R. No. 138978, 12 September 2002) Issue: Whether or not the extension of the redemptive period by the trial court was well within private respondents preserved right to redeem. Held: NO. Pursuant to Section 28, Rule 39 of the Rules of Court, the right of redemption should be exercised within the specific time limit, which is one year from the date of registration of the certificate of sale. Moreover, the redemptioner should make an actual tender in good faith of the full amount of the purchase price (auction price of property plus legitimate expenses such as taxes, registration fees, etc.) In case of disagreement on the redemption price between the parties, the redemptioner may preserve his right of redemption through judicial action which must be filed within the one year period of redemption. The filling of action, being equivalent to a formal offer to redeem, would have the effect of preserving his redemptive rights and freezing the expiration of the one year period. This is a fair interpretation provided the action is filed on time and in good faith, the redemption price is finally determined and paid within a reasonable time, and the rights of the parties are respected.

Redemption from Execution Sale

Case 2: Hi-Yield Realty, Inc. petitioner, vs. Court of Appeals, Honorable Mauricio Rivera as Presiding Judge of RTC-Antipolo City, Branch 73, and Noli Francico, respondents (G.R. No. 138978, 12 September 2002) Issue: Whether or not the extension of the redemptive period by the trial court was well within private respondents preserved right to redeem. Held: NO. Had private respondents act of filing a suit for redemption really been in good faith, private respondent could have at least consigned or deposited what he thought to be the correct amount simultaneously with the filing of the action to redeem on 13 August 1993 to show not only good faith but also his intention and capability of paying in full what he believed to be the reasonable price. For failure of private respondent to redeem the property within the period set by the trial court in its order dated 15 March 1994, the petitioner is allowed to consolidate the title to the property in its name.

Proceedings Supplementary to Execution

Rule 39 Section 36. Examination of judgment obligor when judgment unsatisfied.

When return of a writ of execution against property of a judgment obligor or any one of several obligors shows that judgment remains unsatisfied:
Judgment obligee entitled to an order from court that rendered judgment requiring judgment obligor to appear and be examined concerning his property and income Examination of judgment obligor made by the court or an appointed commissioner at a specified time and place
Judgment obligor cannot be required to appear before a court or commissioner outside the province or city in which he resides or is found.

Proceedings may thereupon be had for the application of the property and income of the judgment obligor

Proceedings Supplementary to Execution

Rule 39 Section 37. Examination of obligor of judgment obligor. When return of a writ of execution against property of a judgment remains unsatisfied in whole or in part: Upon proof to the satisfaction of the court that issued the writ, may require a person, corporation, or other juridical entity that has property of the judgment obligor or is indebted to him to be examined regarding the same

Examination made before a court or commissioner at a time and place within the province or city where the debtor resides or is found
Order binds all credits, money, property due the judgment obligor

Proceedings Supplementary to Execution

Rule 39 Section 38. Enforcement of attendance and conduct of examination.

Court may compel, by an order or subpoena, a party or other person to attend and testify as provided in Sections 36 and 37.
Failure to obey order or subpoena, to answer as witness, or to subscribe his deposition is punishable with contempt. Examination shall not be unduly prolonged but may be adjourned from time to time until completed. Examination before a commissioner in writing and certified to the court. Examination under oath and corporation/juridical entity represented by an authorized officer or agent.

Proceedings Supplementary to Execution

Rule 39 Section 39. Obligor may pay execution against obligee. After a writ of execution against property has been issued, a person indebted to judgment obligor may pay to the sheriff holding the writ the amount of debt or so much to satisfy the judgment (following Section 9 of Rule 39). Sheriffs receipt sufficient discharge for the amount paid by the judgment obligee on the execution

Proceedings Supplementary to Execution

Rule 39 Section 40. Order for application of property and income to satisfaction of judgment. Court, may order any property/money of judgment obligor, not exempt from execution, in his hands or another person, corporation or juridical entity, to be applied to the satisfaction of the judgment, subject to any prior rights over the property. Upon investigation and it appears that judgment obligors earnings are more than necessary for family support, court may order judgment obligor to pay in fixed monthly installments.
Failure to pay installment without good excuse punishable by indirect contempt.

Proceedings Supplementary to Execution

Rule 39 Section 41. Appointment of receiver. Court may appoint a receiver of the property of the judgment obligor Court may also forbid transfer or other disposition or any interference with property not exempt from execution. Jurisprudence: Rule 59 (Receivership) applicable to this Section.

Proceedings Supplementary to Execution

Rule 39 Section 42. Sale of ascertainable interest of judgment obligor in real estate. If interest of judgment obligor in a real estate (as mortgagor or mortgagee or otherwise) in the place of proceedings can be ascertained, receiver may be ordered to sell and convey real estate or interest therein.

Proceedings for sale subject to approval by the court before the execution of the deed.

Proceedings Supplementary to Execution

Rule 39 Section 43. Proceedings when indebtedness denied or another person claims the property. A person or corporation alleged to have property of the judgment obligor or indebted to him, claims an interest in the property adverse to him or denies the debt: By court order,
- judgment obligee may be authorized to institute an action against such person or corporation for the recovery of such interest or debt - forbid transfer or other disposition within 120 days from notice of order - punish disobedience of order as for contempt.

Order may be modified or vacated by court that issued it or court which action is brought

Proceedings Supplementary to Execution

Case: The Economic Insurance Company, Inc., petitioner, vs. Judge Guillermo E. Torres of CFI-Rizal; Visayan Marketing Corporation; and the Sheriff of the Province of Rizal, respondents (G.R. No. L-28488, 02 October 1977)
Facts:

Private respondent Visayan Marketing filed a motion for examination of petitioner The Economic Insurance to determine whether it had property or money belonging to I-Feng Enamelling Co. (Phil.), Inc, who was adjudged in a civil case filed with CFI-Rizal to owe private respondent a sum of money. Judgment in said case was only partially satisfied. The President of petitioner company was examined and denied that any sum of money was due to I-Feng. The record discloses that petitioner insurance company was the second mortgagee under a chattel mortgage executed by I-Feng over its personal properties as security of an obligation of P300,000.00. The Philippine Bank of Communication (PBC) was the first chattel mortgagee of I-Feng to secure an obligation of P202,512.57. When PBC sought to foreclose the first mortgage, Economic Insurance paid off the bank in the sum of P202,512.57 becoming the sole chattel-mortgagee. Petitioner Economic Insurance executed an assignment of mortgage in favor of Atlas Glass & Enamelling Co. for a total consideration of P523,000.00. Subsequently, Atlas Glass foreclosed the chattel mortgages and took possession of the properties.

Proceedings Supplementary to Execution

Case: The Economic Insurance Company, Inc., petitioner, vs. Judge Guillermo E. Torres of CFI-Rizal; Visayan Marketing Corporation; and the Sheriff of the Province of Rizal, respondents (G.R. No. L-28488, 02 October 1977) Facts: Respondent Visayan is contending that since petitioner Economic Insurance realized an amount of P52,987.43 in excess of its mortgage credit against I-Feng, Economic Insurance is bound under the chattel mortgage law to turn over the excess to mortgagor I-Feng. Respondent Judge ordered the Economic Insurance to deliver to Visayan Marketing the amount of P52,987.43 as partial satisfaction of the unsatisfied judgment-credit with legal interest from date of filling of action and P1,000 attorneys fees and costs. Petitioner is contending that there was grave abuse of discretion since no action was filed against it by respondent Visayan as required by Section 45 of Rule 39 , that the amount due from it was arbitrarily fixed, and that it did not foreclose the chattel mortgage.

Case: The Economic Insurance Company, Inc., petitioner, vs. Judge Guillermo E. Torres of CFI-Rizal; Visayan Marketing Corporation; and the Sheriff of the Province of Rizal, respondents (G.R. No. L-28488, 02 October 1977) Issue: Whether or not the petitioner is liable to deliver the alleged property of the judgment debtor. Held: NO. It is clear from Section 45, Rule 39 that if a person is alleged to have a property of the judgment debtor or to be indebted to him claims in interest in the property adverse to him or denies the debt, the court may only authorize the judgment creditor to institute an action against such person for the recovery of such interest or debt. Said section does not authorize the court to make a finding that the third person has in his possession property belonging to the judgment debtor or is indebted to him and to order said third person to pay judgment creditor. Contention that profit made by petitioner in assigning its chattel mortgage rights to Atlas Glass belongs to judgment debtor has no merit. Chattel mortgage was foreclosed by Atlas Glass not by the petitioner.

Proceedings Supplementary to Execution

Satisfaction of Judgment
Rule 39 Section 44. Entry of satisfaction of judgment by clerk of court. Entry of satisfaction of judgment shall be entered by the clerk of court in the court docket and execution book on the bases of the following:
- Upon return of writ showing full satisfaction of judgment; or - Upon filing of an admission to the satisfaction of judgment executed and acknowledged in the same manner as a conveyance of real property by judgment obligee or his counsel; or - Upon endorsement of admission by judgment obligee or counsel on the face of the record of judgment

Satisfaction of Judgment
Rule 39 Section 44. Entry of satisfaction with or without admission. Whenever a judgment is satisfied in fact:
- Judgment obligee or counsel must execute and acknowledge or indorse an admission of the satisfaction (Section 43), and after notice and upon motion, the court may order either the judgment obligee or counsel to do so; or, - Court may order the entry of satisfaction even without such admission.