EXECUTION AND SATISFACTION OF JUDGMENT

• 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.

• The dispositive portion “fallo” of the judgment is that part which is subject to execution under
Rule 39

◦Jurisprudence considers this portion of the judgment as that which finally invests rights
upon the parties, sets conditions for the exercise of those rights, and imposes the
corresponding duties and obligations. Hence, if there is a conflict between the dispositive
portion of the decision and the body thereof, the dispositive portion controls irrespective
of what appears in the body

• Execution is a matter of right upon the expiration of the period to appeal and no appeal
was perfected from a judgment or order that disposes of the action or proceeding.

◦Once a judgment becomes final and executory, the prevailing party can have it executed
as a matter of right, and the issuance of a writ of execution becomes the ministerial duty of
the court, compellable by mandamus.

• The trial court need not even pronounce the finality of the order as the same becomes final
by operation of law.

• HOW EXECUTION SHALL ISSUE:

◦Execution shall issue on motion

‣ even in judgments which are immediately executory

‣ a motion for the issuance of a writ of execution must contain a notice to the
adverse party, otherwise considered as a pro forma motion

‣ Execution shall be applied for in the court of origin

• If an appeal has been duly perfected and finally resolved, the execution may
be applied for also in the court of origin on motion of the judgment obligee

• Movant only has to attach the certified true copies of (a) the judgment of the
appellate court, and (b) the entry of the said judgment with notice to the
adverse party (Sec. 1, Rule 39, Rules of Court) even if the records have not as
yet been remanded to the court of origin.

‣ If for whatever reason, execution cannot be had with dispatch in the court of origin,
the new rules likewise afford, he may file a motion with the appellate court to direct
the court of origin, in the interest of justice, to issue the writ of execution

• CONTENTS:

◦ issued in the name of the Republic of the Philippines and shall state

‣ (a) the name of the court which granted the motion,

‣ (b) the case number and title,

‣ (c) the dispositive portion of the judgment or order subject of the execution, and

‣ (d) shall require the sheriff or other proper officer to whom it is directed to enforce the
writ according to its terms

• Writ of execution should conform to the dispositive portion of the judgment

◦ execution is void if it is in excess of and beyond the original judgment or award

• The trial court may refuse to have the judgment executed in certain cases, as:

◦When the judgment has already been executed by the voluntary compliance of the parties

◦When the judgment has been novated by the parties ( by compromise)

◦When a petition for relief is filed and a preliminary injunction is granted or when execution of
the judgment is enjoined by a higher court;

◦When the judgment sought to be executed is conditional or when the judgment sought to be

◦executed is incomplete

◦When facts and circumstances transpire which would render execution inequitable or unjust

◦When execution is sought more than five (5) years from its entry without the judgment having
 been revived

◦When refusal to execute the judgment has become imperative in the higher interest of justice

• No appeal from an order of execution

‣ However, when errors be committed prejudicial to the rights of a party and do call for
correction by a superior court. That mode of elevation may be either by appeal (writ of
error or certiorari) or by a special civil action of certiorari, prohibition, or mandamus.

‣ EXTRAORDINARY CIRCUMSTANCES WHICH ALLOWS PREVENTION OF THE

EXECUTION OF A JUDGMENT OR ALLOWS QUASHAL OF A WRIT OF EXECUTION

• when the writ of execution varies the judgment;

• when there has been a change in the situation of the parties making execution
inequitable or unjust;

• when execution is sought to be enforced against property exempt from execution;

• when it appears that the controversy has never been submitted to the judgment of
the court;

• when the terms of the judgment are not clear enough and there remains room for
interpretation thereof;

• when it appears that the writ of execution has been improvidently issued;

• when it appears that the writ of execution is defective in substance, or is issued

against the wrong party, or that the judgment debt has been paid or otherwise
satisfied, or the writ was issued without authority

• A sheriffs duty in the execution of the writ is purely ministerial

• TWO MODES OF EXECUTION OF A JUDGMENT:

‣ (a) execution by motion if the enforcement of the judgment is sought within five (5) years
from the date of its entry; and

• Delays attributable to the defendant have the effect of suspending the running of
the prescriptive period for the enforcement of the judgment

• In computing the time limit for enforcing a final judgment, the general rule is that the
time when execution is stayed, either by agreement of the parties for a definite
time, by injunction, or by the taking of an appeal or writ of error shall not be
included.

‣ (b) execution by independent action if the five-year period has elapsed and before it is
barred by the statute of limitations

• done by filing an independent action for revival of judgment

• here, the judgment is reduced to a mere right of action which must be enforced by
the institution of a complaint in the regular form.

• action must be filed within ten (10) years from the date the judgment became final
which is now the date of its entry.

◦It was held that if the writ of execution was issued and the levy made within five years from
the entry of the judgment, the auction sale may be made even after the five- year period. The
sale of the property and the application of the proceeds are merely the means to carry out
the writ of execution and a levy already validly made. The sale must, however, be made
within ten years during which the judgment can be enforced.

◦THE PERIODS DO NOT APPLY TO: (a) special proceedings, such as land registration and
cadastral cases, wherein the right to ask for a writ of possession does not prescribe (b)
judgments for support which do not become dormant and which can always be executed by
motion despite lapse of the five-year period because the obligation is a continuing one and
the court never loses jurisdiction to enforce the same

• Revival of Judgment in SEC. 6 RULE 39 v. SEC. 34 RULE 39

◦In the latter rule, the revival of judgment is not sought for by the judgment obligee or the
prevailing party. It is sought for by the purchaser of a real property that was sold in an
execution sale. Despite being the purchaser, he was not able to acquire possession of the
 property bought by him or if he ever did acquire possession, he was evicted therefrom for
one reason or another as when the judgment under which the sale was con-ducted was
reversed, or the property sold to him was actually exempt from execution, or there was a
rightful claimant to the property.

‣ The purchaser, under such situation, is allowed by the Rules to file a motion in the same
action or in a separate action for the purpose of recovering from the judgment obligee
the price he paid (including interest) for the property in the execution sale. He may, as an
option, also file a motion to revive the judgment in his name to recover the price with
interest.

◦In Sec. 34, the judgment has actually been executed unlike in Sec. 6 where the judgment has
not been executed on motion within the five-year period.

• When a judgment is revived under Sec. 6 of Rule 39, such revived judgment may also be
enforced by motion within five (5) years from the date of its entry and thereafter by action also
before it is barred by the statute of limitations.

‣ The action to revive the judgment is a new action and results in a new judgment
constituting a new cause of action with a new period of limitations.

‣ Hence, the ten (10) year period to revive the revived judgment shall commence to run
from the date of the finality of the revived judgment and not from the date of finality of
the old, original judgment.

‣ GEN: Revival is an action by nature are incapable of pecuniary estimation (RTC)

• EX: The action filed to revive a judgment in a labor case, regular courts are bereft of
jurisdiction to entertain disputes involving employer-employee relationships is in the
NLRC.

‣ VENUE:

• IF the action for revival of judgment affects title to or possession of real property, or
interest therein ➡ then it is a real action that must be filed with the court of the
place where the real property is located.

• IF such action does not fall under the category of real actions, it is then a personal
action that may be filed with the court of the place where the plaintiff or defendant
resides.

• GEN: an appeal perfected in due time stays the execution of a judgment.

◦EXCEPTION:

‣ Those judgments which by express provision of the rules are immediately executory and
are not stayed by an appeal, such as:

◦judgment for injunction;

◦judgment for receivership;

◦judgment for accounting; and

◦judgment for support

◦judgment rendered in an action for forcible entry and unlawful detainer (motion
for execution with notice and hearing)

• EXCEPTION TO THE EXCEPTION:

◦Court is authorized to order otherwise

◦The appellate court in its discretion may make an order, suspending,

modifying, restoring or granting the injunction, receivership, accounting or
award of support

‣ Those judgments that have become the object of discretionary execution

• It is exception to the general rule that a judgment cannot be executed before the
lapse of the period for appeal or during the pendency of an appeal

• Not a matter of right but of judicial discretion

• A discretionary execution does not require a final and executory judgment but
simply a “final” judgment or order.

 • REQUISITIES OF A DISCRETIONARY EXECUTION:

◦there must be a motion filed by the prevailing party notice to the adverse party

◦there must be a hearing of the motion for discretionary execution;

◦the motion 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;

◦Bond

◦there must be good reasons to justify the discretionary execution;

◦the good reasons must be stated in a special order

‣ What constitutes a good reason, is left to the sound exercise of judicial

discretion. Examples:

◦Insolvency of debtor

◦Prevent irreparable injury

◦Goods subject of the judgment will perish or deteriorate during

the pendency of the appeal

◦Failure to post a supersedeas bond

◦The failure in an unlawful detainer case to make the required

periodic deposits to cover the amount of rentalsdue under the
contract or for payment of the reasonable value of the use

‣ Good reasons consist justifying immediate execution. The circumstances

must be superior, outweighing the injury or damages that might result
should the losing party secure a reversal of the judgment.

• Where the sole reason given by the trial court in allowing execution is
that the appeal is frivolous and dilatory, execution pending appeal
cannot be justified because the authority to disapprove an appeal
pertains to the appellate court

• To consider the mere filing of a bond a good reason would precisely

make immediate execution of a judgment

• The fact that the prevailing party is in financial distress is also not in
itself a good reason to justify execution pending appeal

‣ Although ascertainment of the special reasons for execution pending

appeal lies within the sound discretion of the trial court, and the appellate
Court should not normally disturb such finding, intervention by the
appellate court may be proper, if it is shown that there has been an abuse
of discretion.

‣ Certiorari will lie against an order granting execution pending appeal

where the same is not founded upon good reasons

• Discretionary execution is to be strictly construed

• WHERE TO FILE:

◦Trial Court while (a) it has jurisdiction over the case and while (b) it is in
possession of either the original record or the record on appeal.

◦Appellate Court - after the trial court has lost jurisdiction thereof

• Remedy where the judgment subject to discretionary execution is reversed or

annulled: the trial court may, on motion, issue such orders of restitution or
reparation of damages as equity and justice may warrant under the
circumstances

• The death of the judgment obligee will not prevent the execution of the judgment.

‣ execution may issue upon the application of his executor, administrator or

successor in interest

• The death of the judgment obligor will not prevent execution of the judgment.

‣ execution shall issue against his executor or administrator or successor in interest, if

the judgment be for the recovery of real or personal property, or the enforcement of a
 lien thereon

‣ If the death occurs after execution is actually levied upon any of his property, the
same may be sold for the satisfaction of the judgment obligation. If there be any
surplus after the sale, the officer making the sale shall account to the corresponding
executor or administrator

• Remedy when the judgment is unsatisfied

◦When the return of the writ of execution shows that the judgment is unsatisfied, the
judgment obligee is entitled to an order from the court which rendered the judgment,
requiring the judgment obligor to appear and be examined concerning his property and
income before the court or a commissioner appointed by the court.

◦A person, corporation, or other juridical entity, indebted to the judgment debtor may
be required to appear before the court or a commissioner appointed by it, at a time
and place within the province or city where such debtor resides or is found, and be
examined concerning the same

• Effects of Final Judgments

A. Execution of Judgments for Money

IMMEDIATE PAYMENT
• Steps to be taken by the Sheriff in the execution

◦Demand from the judgment obligor the immediate payment of the full amount stated
in the judgment including the lawful fees in cash, certified check payable to the judgment
obligee or any other form of payment acceptable to him

◦If the judgment obligor cannot pay all or part of the obligation in cash, certified
check or other mode of payment, the officer shall levy upon the properties of the
judgment obligor.

‣ The judgment obligor shall have the option to choose which property, not exempt,
or part thereof may be levied upon.

‣ If the judgment obligor does not exercise the option, the officer shall first levy on
the personal properties, if any, and then on the real properties if the personal
properties are insufficient to answer for the personal judgment but the sheriff shall
sell only so much of the property that is sufficient to satisfy the judgment and
lawful fees.

‣ If the judgment obligor makes a prior admission that he cannot pay the amount
stated in the writ of execution and that he agrees to the levy of his properties
so long as the auction sale would not be set earlier than a certain set by the judgment
obligor, such admission provides a reasonable basis for the sheriff to forego a prior
demand to pay and to levy on the properties right away

LEVY ON PROPERTY

• A levy is the act whereby the sheriff sets apart or appropriates a part of the whole of the
properties of the judgment obligor to satisfy the command of the writ

• Money judgments are enforceable only against property of judgment debtor

‣ Property belonging to third persons cannot be levied upon.

‣ In a contract of mortgage, the debtor retains beneficial interest over the property
notwithstanding the encumbrance, since the mortgage only serves to secure the
fulfillment of the principal obligation. Indeed, even if the debtor defaults, this fact
does not operate to vest in the creditor the ownership of the property; the creditor
must still resort to foreclosure proceedings. Thus, a mortgaged property may still be
levied upon by the sheriff to satisfy the judgment debtor’s obligations

‣ The encumbrance will not affect the right of the judgment debtor over the property or
exempt the property from the levy if made prior to foreclosure of any mortgage
constituted on the property. Even the pendency of a proceeding for replevin would
not serve to prevent the sheriff from levying on the property

• EFFECT OF LEVY AND SALE: title over the subject property is vested immediately in the
purchaser subject only to the right to redeem the property within the period provided for
by law.

‣ The right acquired by the purchaser at an execution sale is inchoate and does
not become absolute until after the expiration of the redemption period without
the right of redemption having been exercised.

‣ Entitled to protection and must be respected until extinguished by redemption.

• EXECUTION SALE

◦Execution sale must be preceded by a valid levy

◦Notice of sale is required before the property levied upon is sold on execution

◦All sales of property under execution must be made at public auction to the highest
bidder

◦After sufficient property has been sold to satisfy the execution, no more shall be sold

◦Any excess property or proceeds of the sale shall be delivered to the judgment obligor

 ◦If the purchaser at the auction refuses to pay the amount bid by him, the officer may
again sell the property to the highest bidder and the court may require such
purchaser to pay unto the court the amount of whatever loss, with costs occasioned
by his refusal to pay and if he disobeys the order, may punish him for contempt. Any
subsequent bid by such purchaser may be refused by the officer conducting the bidding

◦The judgment obligee may bid and if said party is the purchaser and there is no
third party claim, he need not pay the amount of the bid if it does not exceed the amount
of his judgment. If it does, he shall only pay the excess.

◦If the purchaser of personal property capable of manual delivery pays the purchase
price, the officer making the sale must deliver the property to the purchaser and, if
desired, shall execute a certificate of sale. The sale conveys to the purchaser all the
rights which the judgment obligor had in such property as of the date of the levy on
execution or preliminary attachment

◦When the purchaser of any personal property not capable of manual delivery pays the
price, the officer making the sale must execute and deliver to the purchaser a
certificate of sale. Such certificate conveys to the purchaser all the rights which the
judgment obligor had in such property as of the date of the levy on execution or
preliminary attachment

• LEVY UPON REAL PROPERTY BY OFFICER

◦ filing with the Register of Deeds a copy of the order, description of the attached
property and notice of attachment; and

◦leaving with the occupant of the property copy of the same order, description and
notice.

• REDEMPTION OF REAL PROPERTY

◦Upon a sale of real property, the officer must give to the purchaser a certificate of
sale. Such certificate must be registered in the registry of deeds of the place where the
property is situated.

◦The real property sold may be redeemed from the purchaser, at any time within one
(1) year from the date of the registration of the certificate of sale. If there are other
creditors having a lien on the property, the property so redeemed may again be
redeemed within sixty (60) days from the last redemption. The property may again, and
as often as a redemptioner is so disposed, be redeemed from any previous redemptioner
within sixty (60) days after the last redemption.

◦The property may be redeemed by the judgment obligor, or his successor in interest or
by a creditor having a lien by virtue of an attachment, judgment or mortgage on the
property sold, subsequent to the lien under which the property was sold. Such
redeeming creditor is called a redemptioner

• EFFECT IF NO REDEMPTION IS MADE

◦If no redemption is made within one (1) y ear from the date of the registration of the
certificate of sale, the purchaser is entitled to a conveyance and possession of the
property; or if so redeemed whenever sixty (60) days have elapsed and no other
redemption has been made, and notice thereof given, the last redemptioner is entitled to the
conveyance and possession of the property

◦Upon the expiration of the right of redemption, the purchaser or redemptioner shall
be substituted to and acquire all the rights, title, interest and claim of the judgment
obligor to the property as of the time of the levy

• All rents, earnings and income derived from the property pending redemption shall belong to
the JUDGMENT OBLIGOR until the expiration of his period of redemption

GARNISHMENT OF DEBTS AND CREDITS

• MAY BE MADE BY:

 ◦ serving notice upon the third person having in possession or control of the credits in
favor of the judgment obligor;

◦the third person or garnishee shall make a written report to the court within five (5)
days from service of the notice of garnishment stating whether or not the judgment
obligor has sufficient funds to satisfy the judgment.

◦If sufficient, the garnishee shall deliver the amount in cash or certified check shall be
delivered directly to the judgment obligee within ten (10) working days from service of
notice on said garnishee.

‣ The lawful fees shall be directly paid to the court.

◦ If the amount is insufficient, the garnishee shall make a report as to the amount he
holds for the judgment obligor

B. Execution Of A Judgment for The Performance Of A Specific Act

• If the judgment requires a person to perform a specific act, said act must be performed

‣ if the party fails to comply within the specified time, the court may direct the act to
be done by someone at the cost of the disobedient party and the act when so
done shall have the effect as if done by the party

• If the judgment directs a conveyance of real or personal property, and said property is in the
Philippines, the court in lieu of directing the conveyance thereof, 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.

C. Execution Of a Judgment For The Delivery Or Restitution Of Real Property

• EJECTMENT: the officer shall give the defendant notice of such writ and demand from the
judgment obligor to comply therewith within a reasonable period, normally from three (3) to
five (5) days, and it is only after such period that the sheriff is to enforce the writ by the bodily
removal of the defendant and his belongings.

‣ three (3)-day notice to the defendant is indispensable

‣ After the lapse of the period given and the judgment obligor refuses to vacate,
then the sheriff may enforce the writ by ousting the judgment obligor and all the
persons claiming a right under him, with the assistance, if necessary, of
appropriate peace officers, and employing such means as may be reasonably
necessary to retake possession and place the judgment obligee in possession of

‣ Contempt is not a remedy

• The writ of possession was not directed to the judgment debtor but to the sheriff
who was directed to deliver the property to the prevailing party

• What the officer should do is to dispossess him of the property and if after the
dispossession, the judgment debtor should execute acts of ownership or
possession or in any manner disturb the possession of the judgment creditor,
then and only then may he be punished for contempt

• Removal of improvements on the property subject of execution

◦ These acts may only be done by the officer upon a special order by the court,
issued upon motion by the judgment obligee, and after hearing and only after the
judgment obligor fails to remove them within a reasonable time fixed by the court

PROPERTY EXEMPT FROM EXECUTION:

A. The judgment obligor’s family home as provided by law, or the homestead in which he
resides, and the land necessarily used in connection therewith;

B. Ordinary tools and implements personally used by him in his trade, employment, or
livelihood;

C. Three horses, or three cows, or three carabaos, or other beasts of burden, such as
 the judgment obligor may select necessarily used by him in his ordinary occupation;

D. His necessary clothing and articles for ordinary personal use, excluding jewelry;

E. Household furniture and utensils necessary for housekeeping, and used for that purpose by
the judgment obligor and his family, such as the judgment obligor may select, of a
value not exceeding one hundred thousand pesos

F. Provisions for individual or family use sufficient for four months;

G. The professional libraries and equipment of judges, lawyers, physicians, pharmacists,

dentists, engineers, surveyors, clergymen, teachers, and other professionals, not
exceeding three hundred thousand pesos in value;

H. One fishing boat and accessories not exceeding the total value of one hundred
thousand pesos owned by a fisherman and by the lawful use of which he earns his
livelihood;

I. So much of the salaries, wages, or earnings of the judgment obligor for his personal
services within the four months preceding the levy as are necessary for the support of
his family;

J. Lettered gravestones;

K. Monies, benefits, privileges, or annuities accruing or in any manner growing out of any life
insurance;

L. The right to receive legal support, or money or property obtained as such support, or
any pension or gratuity from the government; and

M. Properties specially exempted by law

• Property mentioned above is not exempt from execution when it is subject of execution because
of a

◦judgment for the recovery of the price or

◦ upon a judgment of foreclosure of a mortgage upon the property

REMEDY OF THIRD PERSONS

A. Terceria

◦A person, not a party to the action, claiming a property levied upon may execute an
affidavit of his title or right of possession over the property. Such affidavit must state the
grounds of such right or title. The affidavit shall be served upon the officer making a levy
and a copy thereof must also be served upon the judgment obligee

‣ The officer served with the affidavit of the claiming third person shall not be bound
to keep the property subject of the claim

• Unless the judgment obligee, on demand of the officer, files a bond

approved by the court to indemnify the claimant in a sum not less than the
value of the property levied upon. The officer shall not be liable to any third-
party claimant for damages for the taking or keeping of the property, if such
bond is filed

‣ No claim for damages for the taking or keeping of the property may be enforced
against the bond unless the action therefor is filed within one hundred twenty
(120) days from the date of the filing of the bond

B. Action to Nullify The Levy With Damages

◦ totally separate and distinct action from the former case

C. Summary Hearing

◦ for the purpose of determining whether the sheriff has acted rightly or wrongly in the
performance of his duties in the execution of the writ of attachment, more specifically
if he has indeed levied on attachment and taken hold of property not belonging to
the plaintiff. If so, the court may then order the sheriff to release the property from the
erroneous levy and to return the same to the third person.

◦the court does not and cannot pass upon the question of the title to the property with
 any character of finality.

D. Action For Recovery Of the Possession Of the Property Seized

◦distinct and separate from that in which the judgment is being enforced

◦ it may be brought against the sheriff, of course, and such other parties as may be
alleged to have colluded with the sheriff in the supposedly wrongful execution
proceedings, such as the judgment creditor himself.

• The above- mentioned remedies are cumulative and any one of them may be resorted to by
one third-party claimant without availing of the other remedies.

• When a frivolous and plainly spurious claim was filed by a third-party claimant, Judgment
Obligee may file his claim for damages in the same court where the third-party claimant filed
his third-party claim or to file a separate action