EXECUTION AND SATISFACTION OF JUDGMENT

A. Meaning of execution

- Execution is the remedy afforded for the satisfaction of a judgment. Its object being to
obtain satisfaction of the judgment on which the writ is issued (Cagayan de Oro Coliseum v. CA,
320 SCRA 731, 754).
- It is the fruit and end of the suit, and is the life of the law ( Ayo v. Violago-Isnani, 308 SCRA
543, 551).

B. Difference between finality of judgment for purposes of appeal; for purposes of

execution

Finality of judgment for purposes of appeal refers to the distinction or

difference between final judgments/orders and interlocutory orders. The latter
cannot be appealed according to Sec. 1(b) of Rule 41.

Judgment is final
- if it disposes of the action (as distinguished from an interlocutory order
which leaves something to be done with respect to the merits of the case)
- examples:
1) Adjudication on the merits
2) A judgment or order that dismisses an action on the ground, for instance,
of res judicata or prescription.

Finality of judgment for purposes of execution refers to the judgment being

“final and executory” upon the lapse of the appeal period if no appeal is taken, upon
which execution shall issue as a matter of right according to Sec. 1 of Rule 39.

Judgment is executory
- if the period to appeal has expired and no appeal is taken

C. When execution shall issue

General rule (execution as a matter of right):

Upon judgment or order that disposes of the action or proceeding and upon the
expiration of the period to appeal therefrom if no appeal has been duly perfected
(Sec. 1, Rule 39).
Remember that execution shall issue as a matter of right on motion. Therefore,
there is a need to file a motion before the issuance of a writ of execution.

Note: If the appeal has been duly perfected and finally resolved, the execution
may be applied for by the judgment obligee in the court of origin (must submit
certified true copies of the judgment/final order sought ti be enforced and of the
entry thereof, with notice to the adverse party).
 Exception (immediately executory without the expiration of the period to appeal):
Judgments in actions for
1) Injunction, receivership, accounting and support, and such other judgments
as are now or hereafter be declared to be immediately executory.
2) Forcible entry or unlawful detainer rendered against the defendant

Decision of
3) RTC in civil cases governed by the Rules on Summary Procedure
4) Labor Arbiter reinstating an illegally dismissed employee

Note:

A) Even in judgments which are immediately executory there must be a motion

to that effect and a hearing called for the purpose. (Lou v. Siapno, 335 SCRA 181)

B) Under Supreme Court Circular No. 24-94, a motion for issuance of a writ of
execution must contain a notice to the adverse party. (Pallada v. RTC of Kalibo, Br.
1, 304 SCRA 440, 446)

C) In a recent case the Supreme Court held that it was wrong for a petitioner’s
counsel to argue that since the decision approving the parties’ compromise
agreement was immediately executory, there was no need to file a motion for
execution. (Ilaw Buklod Mangggagawa Nestle Philippines, Inc. Chapter Ice Cream
and Chilled Products Division v. Nestle Philippines, GR No. 198675, September 23,
2015)

Exception to the exception:

The appellate court in its discretion may make an order suspending, modifying,
restoring or granting the injunction, receivership, accounting or award of support
support. The stay of execution shall be upon such terms as to bond or otherwise as
may be considered proper for the security or protection of the rights of the adverse
party.

D. How a judgment is executed

1) Execution by motion or by independent action

On/by motion, when done:

- Within 5 years from the date of entry of judgment

By independent action, when done:

- After the lapse of 5 years and before it is barred by the statute of
limitations (10 years)

Note:
a) This is properly called action for revival of judgment.
 b) A revived judgment is deemed a new judgment, separate and
distinct from the original judgment. It is not a continuation. (PNB v. Bondoc,
GR No. L-20236)

2) Issuance and contents of a writ of execution

The issuance of the writ of execution is issued in the name of the Republic of
the Philippines and shall state:
a) the name of the court
b) the case number and title
c) the dispositive part of the subject judgment or order
d) require the sheriff or other proper officer to whom it is directed to enforce the
writ according to its terms

3) Execution of judgments for money

a) Immediate payment on demand, how done:

1) The officer shall demand from the judgment obligor the immediate
payment of the full amount stated in the writ of execution and all lawful fees.
2) The judgment obligor shall pay in cash, certified bank check payable to
the judgment obligee, or any other form of payment acceptable to the latter, the
amount of the judgment debt under the proper receipt directly to the judgment
obligee or his authorized representative if present at the time of payment.

Note:
If the judgment obligee or his authorized representative is not present
to receive payment, the judgment obligor shall deliver the aforesaid
payment to the executing sheriff. Within the same day the sheriff will
turnover the amounts to the clerk of court of the court that issued the writ or
if the same is not practicable, deposit the said amounts to a fiduciary
account in the nearest government deposit bank of the RTC of the locality.

3) The lawful fees shall be handed under proper receipt to the executing
sheriff who shall turn over the said amount within the same day to the clerk of
court of the court that issued the writ.

b) Satisfaction by levy

Levy
- the act whereby a sheriff/officer sets apart or appropriates, for the
purpose of satisfying the command of the writ, a part of the whole of the
judgment debtor’s property (Fiestan v. CA, GR No. 81552)

Condition before satisfaction by levy may be done:

If the judgment obligor cannot pay all or part of the obligation in cash,
certified bank check or other mode pf payment acceptable to the judgmnet
obligee.
 Procedure of satisfaction by levy:

1) Set apart properties of the judgment obligor, of every kind and

nature whatsoever, which may be disposed of for value and not otherwise
exempt from judgment.
The officer shall give the judgment obligor the option to choose which
property or part thereof may be levied upon, sufficient to satisfy the
judgment.
If the judgment obligor shall not exercise the option, the officer shall
levy on the personal properties first and if still insufficient to answer for the
judgment, real properties.

2) Sell the properties of the judgment obligor which has been levied
upon, sufficient to satisfy the judgment.

c) Garnishment of debts and credits

Garnishment
- the process of levying the judgment obligor‘s money, stocks or other
incorporeal property in the hands of third persons

What may be garnished:

1) Debts due the judgment obligor
2) Other credits including
a) Bank deposits
b) Financial interests
c) Royalties
d) Commissions
e) Other personal property not capable of manual delivery in the
possession or control of third parties

Note:
Garnishment merely sets apart such funds but does not constitute the
creditor as owner of the garnished property (De la Rama v. Villarosa, GR
No. L-19727).

Procedure
1) Serve a notice upon the person owing such debts or having in his
possession or control such credits to which the judgment obligor is entitled.

Note: It shall cover only such amounts as will satisfy the judgment
and all lawful fees.

2) The garnishee (bank or third person) shall make a written report to

court within 5 days from service of the notice of garnishment stating
whether or not the judgment obligor has sufficient funds or credits to satisfy
the amount of the judgment. If not, the report shall state how much funds or
credits the garnishee holds for the judgment obligor.
 3) The garnished amount in cash or certified bank check issued in the
name of the judgment obligee, shall be delivered directly to the judgment
obligee within 10 working days from service of notice on said garnishee
requiring such delivery, except lawful fees which shall be paid directly to the
court.

4) In the event there are 2 or more garnishees holding deposits or

credits sufficient to satisfy the judgment, the judgment obligor, if available,
shall have the right to indicate the garnishee or garnishees who shall be
required to deliver the amount due; otherwise, the choice shall be made by
the judgment obligee.

5) The executing sheriff shall observe the same procedure under Sec.
9(a), Rule 39 (refer to the Immediate Payment on Demand procedure
above) with respect to the delivery of payment to the judgment obligee.

4) Execution of judgments for specific acts

a) Conveyance, delivery of deeds, or other specific acts

Procedure:

1) A party is directed by the court to execute conveyance of land or to

deliver deeds or other documents, or to perform any other specific acts in
connection therewith but which acts can be performed by persons other
than said party. If the party fails to comply within a specified time, the court
may direct the act to be done at the cost of the disobedient party by some
other person appointed by the court and the act when so done shall have
like effect as if done by the party.

2) If the real or personal property is situated within the Philippines, the court
may, by an order, divest the title of any party and vest it in others, which
shall have the force and effect of a conveyance executed in due form of
law.

Note:
It is only when reconveyance is no longer feasible (e.g. passed on to a
buyer for value in good faith, dissipated, etc.) that the judgment obligor
should pay the judgment obligee the fair market value of the property
(Raymundo v. Galen Realty and Mining, GR No. 191594).

b) Sale of real or personal property

If the judgment be for the sale of real or personal property, to sell such
property, describing it, and apply the proceeds in conformity with the
judgment.

c) Delivery or restitution
 Procedure:

1) The officer shall demand of the person against whom the judgment
for the delivery or restitution of real property is rendered and all persons
claiming rights under him to peaceably vacate the property within 3 working
days, and restore possession thereof to the judgment obligee.

2) If the above is not complied with, the officer shall oust all such
persons therefrom with the assistance, if necessary, of appropriate peace
officers, and employing such means as may be reasonably necessary to
retake the possession of such property.

3) Any costs, damages, rents or profits awarded by the judgment shall

be satisfied shall be satisfied in the same manner as a judgment for money.

d) Removal of improvements on property subject of execution

Special order of demolition

- an order from the court authorizing the sheriff to destroy, demolish or
remove improvements on property subject of execution; issued upon
motion of the judgment obligee after hearing and reasonable notice, and
after the judgment obligor has failed to remove the same within a
reasonable time fixed by the court

e) Delivery of personal property

The officer shall take possession of the same and then deliver it to the party
entitled thereto and satisfy any judgment for money as provided in the
judgment.

5) Execution of special judgments

When a judgment requires the performance of any act other than those
mentioned (execution of judgments for money, conveyance/delivery of deeds,
sale of real/personal property, delivery/restitution of real property, removal of
improvements on property subject of execution, delivery of personal property):
a) a certified copy of the judgment shall be attached to the writ of execution
b) shall be served by the officer upon the party against whom the same is
rendered, or upon any other person required thereby, or by law
c) such party or person may be punished for contempt if he disobeys such
judgment

6) Effect of levy on third persons

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

Terceria or third party claim

 - a remedy afforded to a third party with a claim to the property levied,
attached or seized by virtue of court a court order, wherein the third party makes
an affidavit of his title or right of possession to the property and serves the
affidavit upon the obligee

BAR QUESTIONS

Suggested answers by Manuel Riguera

2008 Bar

a) The writ of execution was returned unsatisfied. The judgment obligee

subsequently received information that a bank holds a substantial deposit
belonging to the judgment obligor. If you are the counsel of the judgment obligee,
what steps would you take to reach the deposit to satisfy the judgment.?

b) If the bank denies holding the deposit in the name of the judgment obligor
but your client’s informant is certain that the deposit belongs to the judgment
obligor under an assumed name, what is your remedy to reach the deposit?

Suggested Answer:

a) If I were the counsel of the judgment obligee, the step I would take to reach the
deposit to satisfy the judgment is to have the sheriff serve a notice of garnishment upon
the bank. The bank in such a case must make a written report to the court stating
whether or not the judgment obligor has sufficient funds to satisfy the judgment amount.

b) If the bank denies holding the deposit in the name of the judgment obligor, my remedy
to reach the deposit is to file a motion with the court to require the bank or officer thereof
to appear before the court or its appointed commissioner for examination under oath.
Under the Rules of Civil Procedure, the obligor of the judgment may be examined
under oath.

2009 Bar

Cresencio sued Dioscoro for collection of a sum of money. During the trial,
but after the presentation of evidence, Dioscoro died. Atty. Cruz, Dioscoro’s
counsel, then filed a motion to dismiss the action on the ground of his client’s
death. The court denied the motion to dismiss and, instead, directed counsel to
furnish the court with the names and addresses of Dioscoro’s heirs and ordered
that the designated administrator of Dioscoro’s estate be substituted as
representative party.
 After trial, the court rendered judgment in favor of Cresencio. When the
decision had become final and executory, Cresencio moved for the issuance of a
writ of execution against Dioscoro’s estate to enforce his judgment claim. The
court issued the writ of execution. Was the court’s issuance of the writ of
execution proper? Explain.

Suggested Answer:

The courts issuance of the writ of execution was not proper.

Under the Rules of Civil Procedure, a favorable judgment in a contractual money

claim shall be enforced in the manner especially provided in the Rules for prosecuting
claims against the estate of a deceased person. Under Rule 86 if the Rules of Court, a
judgment for money should be filed as a money claim with the probate court. The
Supreme Court has held that a money claim cannot be enforced by a writ of execution
but should instead be filed as a money claim.

2010 Bar

VI (b) Suppose there was no counterclaim and Benjamin’s complaint was not
dismissed, and judgment was rendered against Mercedes for P1M. The judgment
became final and executory and a writ of execution was correspondingly issued.
Since Mercedes did not have cash to settle the judgment debt, she offered her
Toyota Camry model 2008 valued at P1.2M. The sheriff, however, on request of
Benjamin, seized Mercedes’ 17th century ivory image of the La Sagrada Familia
estimated to be worth over P1M. Was the sheriff’s action in order?

Suggested Answer:

The sheriff’s action was not in order.

Under the Rules of Civil Procedure, the officer making the levy shall give the
judgment obligor the option to immediately choose which property or part thereof may
be levied upon, sufficient to satisfy the judgment.

Here, the sheriff did not give such option to Mercedes. Hence, the sheriff’s action
was not in order.

2012 Bar

(b) Briefly discuss/differentiate the following kinds of attachment: preliminary

attachment, garnishment, levy on execution, warrant of seizure and warrant of
distraint of distraint and levy.

Suggested answer:
Preliminary attachment

It is the provisional remedy wherein at the commencement of the action or at any

time before entry of judgment, a plaintiff or any proper party may have the property of
the adverse party taken into the custody of the court as security of the satisfaction of any
judgment that may be recovered.

Garnishment

The process in which money or goods in the hands of a third person which are due
to the defendant, are attached by the plaintiff.

Levy on Execution

The attachment issued to enforce a judgment which has become final and
executory.

Warrant of Seizure

This is the character of a search warrant which authorizes not only the search of a
person or place but the seizure of personal property described particularly in the warrant.

Warrant of distraint and Levy

Remedy available to local governments and the BIR in tax cases to seize personal
property for auction sale in order to satisfy delinquencies in estate and real property
taxes.

Where and how will you appeal the following: an order of execution issued by the
RTC.

Suggested Answer:

An order if execution is not appealable. The remedy of an aggrieved party is to file

the appropriate civil action under R65 with the Court of Appeals within 60 days from
notice of the order or of the order denying the motion for reconsideration if one was filed.