520 Phil. 502
PANGANIBAN, CJ:
"WHEREFORE, upon the premises, the petition is GRANTED. The Order dated 10 December 2002, the Writ of Execution [P]ending Appeal dated 11 December 2002 and the Notices of Garnishment issued pursuant to said Writ are NULLIFIED and SET ASIDE."Respondent judge is hereby ordered to act with dispatch and resolve [respondents'] Notice of Appeal and Motion to Fix Bond without delay." [4]
"[Petitioner] PAL Employees Savings and Loan Association, Inc. (PESALA) is a savings and loan association whose members are employees of petitioner Philippine Airlines, Inc. (PAL). PESALA accepts deposits and contributions from its members and lends money to them, payment of which is effected through PAL's payroll deductions. Aside from PESALA and other government agencies and insurance companies, various employee unions and associations in PAL also collect dues and other charges from their members through salary deductions x x x.
"Due to numerous deductions requested by the aforementioned entities, a 'zero-net' situation often occurred where some PAL employees went home empty-handed. To remedy the situation, PAL decided in July 1997 to limit salary deductions to not more than forty percent (40%) of the employees' pay effective August 1, 1997. PESALA objected to the 40% percent limit on salary deductions. Thus, on August 7, 1997, it filed the herein complaint for Specific Performance, Damages or Declaratory Relief with a Prayer for Temporary Restraining Order and Injunction against PAL and Jose C. Blanco, Officer-in-[C]harge of PAL Labor Affairs Department, with the Regional Trial Court, Pasay City, Branch 118, docketed as Civil Case No. 97-1026.
"On September 3, 1997, the then Presiding Judge of RTC, Pasay City, Branch 118 issued an Order 'enjoining PAL and Jose Blanco and all other persons or officials acting under them from implementing the 40% limitation on salary deductions pertaining to the loan repayments, capital contributions and deposits authorized by the PESALA members which will be remitted to PESALA, and to maintain the status quo ante litem and to strictly enforce the payroll deductions in favor of plaintiff's posting of a credible injunction bond in the amount of One Million (P1,000,000.00) Pesos."
"On October 24, 1997, PESALA filed a Manifestation and Motion x x x. [It] prayed that an Order [be] issue[d] directing the [respondents] to immediately remit to PESALA the total undeducted amount of P12,262,719.02 and to enforce full deduction in the succeeding pay periods in accordance with the deduction advice of the latter.
"On December 18, 1997, PESALA filed a similar Manifestation and Motion. On February 19, 1998, it filed a Second Supplemental Manifestation and Motion alleging that for the pay period September 1-15, 1997 up to February 1-15, 1998, it was deprived of its rightful remittances from [respondents] in the total amount of P44,488,760.41 corresponding to the loan repayments, capital contributions and deposits of its members. It prayed that an Order [be] issue[d] directing [respondents] to immediately remit to PESALA the now total undeducted amount of P44,488,760.41.
"On March 11, 1998, Presiding Judge Nelson B. Bayot issued an Order directing PAL and Jose Blanco to remit to PESALA the total undeducted amount of P44,488,716.41 x x x, and to cause the deductions in full in the succeeding pay periods x x x. PESALA then filed a Motion for Execution of the aforesaid Order dated 11 March 1998. In an Order dated 2 July 1998, Judge Bayot denied PESALA's Motion for Execution x x x [for being interlocutory].x x x x x x x x x
"Meanwhile, [respondent] filed a petition for certiorari before [the CA] x x x assailing the Order dated 11 March 1998 on [the] ground of grave abuse of discretion. However, the petition was dismissed in a Resolution dated 14 May 1999 because the certification against forum-shopping was not signed by [respondent] but by [respondent's] counsel, and true copies of pertinent pleadings and papers were not attached to the petition. The said Resolution became final and executory on June 17, 1999 per [CA's] Entry of Judgment.x x x x x x x x x
"On January 10, 2000, PESALA filed [a] Petition for Indirect Contempt against Jose C. Blanco, Avelino L. Zapanta and Andrew A. Huang docketed as Civil Case No. 00-0016, alleging that the latter deliberately disobeyed the lawful orders of RTC, Pasay City, Branch 118. Answering the contempt charge, [respondents] Zapanta and Huang argued that they were in no position to comply with the Order dated 11 March 1998 since they were not even parties in Civil Case No. 97-1026; that they were not yet the President and Chief Financial Officer of PAL at that time; and that PAL is under receivership and the Securities and Exchange Commission had issued orders declaring all claims for payment against PAL suspended, and prohibited PAL from paying any amounts in respect of liabilities it incurred prior to the 23rd day of June 1998 without approval of the Commission.
"Sometime in August 2001, Judge Nelson B. Bayot retired from service thus Civil Case Nos. 97-1026 and 00-0016 were transferred to [the] pairing court of Branch 118 Branch 119, presided over by x x x Judge Pedro De Leon Gutierrez.
After trial, x x x Judge Gutierrez issued a Consolidated Decision dated 6 November 2002, the dispositive portion of which reads:"WHEREFORE, the foregoing premises considered, judgment is hereby rendered in favor of the plaintiff/petitioner and against defendants/ respondents:"On November 8, 2002, [respondents] filed a Notice of Appeal and paid the appeal docket fees. On November 11, 2002, they filed a Motion to Fix Bond praying that the amount of the bond to stay the execution of the decision, insofar as the Indirect Contempt is concerned, be fixed and that the enforcement of paragraph (d) of the said decision be held in abeyance.'a. Ordering the defendants and all other officials, persons or agents acting under them to strictly comply with and implement the arrangement between the parties whereby defendants deduct from the salaries of the members of PESALA through payroll deductions the loan repayments, capital contributions and deposits of said members and to remit the same to plaintiff immediately giving full priority to plaintiff's deduction as contained in the Clarificatory Order dated May 19, 2000;
'b. Making the writ of preliminary injunction earlier issued as permanent;
'c. Ordering the defendants to pay the plaintiff attorney's fees of P259,000.00;
'd. Declaring the herein respondents Jose C. Blanco, Avelino L. Zapanta in his capacity as President of the Philippine Airlines and Andrew L. Huang, in his capacity as Senior Vice President and Chief Financial Officer of the Philippine Airlines, Inc., as guilty of indirect contempt for their contemptuous refusal and failure to comply with the lawful Orders dated March 11, 199 [8] which have already become final and executory as the petition for certiorari of defendants on the Order of this Court dated March 11, 199 [8] had been denied by the Court of Appeals per its entry of Judgment in CA-GR SP 48654 dated May 14, 1999. Hence, respondents are hereby ordered to remit/turn over to plaintiff/petitioner the amount of P44,480,716.41 within three (3) days from receipt hereof otherwise, their arrest and detention shall be ordered immediately.
'e. Ordering the defendants/respondents to pay the cost of this suit.'
"On November 13, 2002, PESALA filed a Motion for Execution Pending Appeal alleging that the RTC Order dated 11 March 199 [8] and CA Resolution dated 4 December 1998 had already become final and executory.
"On December 10, 2002, [RTC] judge issued the first of the assailed Orders granting the motion for execution x x x.x x x x x x x x x
"On December 11, 2002, [RTC] judge issued the assailed Writ of Execution pending appeal. Pursuant to said writ, x x x Deputy Sheriff Severino D.C. Balubar, Jr. issued Notices of Garnishment addressed to the depositary banks of PAL x x x. On December 13, [respondents] filed an Urgent Motion for Reconsideration, To Quash Writ of Execution Pending Appeal and to Lift Notices of Garnishment setting the motions for hearing on December 17, 2002.
"On December 16, 2002, [the trial court] sheriff issued an Order of Delivery of Money addressed to the Allied Banking Corporation requesting the latter to deliver to him the sum of P44,480,716.41 for the satisfaction of the writ of execution pending appeal. On December 17, 2002, [respondents'] counsel Atty. Nelson M. Reyes allegedly went to the court and learned that the motions were not calendared for hearing; that [RTC] judge wanted to talk to him; that when asked as to when the PAL motions would be resolved, [the] judge answered that he would study the same; and that [the] judge wanted them to settle the case for the sum of P20,000,000.00. On December 18, 2002, PAL, through its General Counsel Eduardo R. Ceniza, wrote [the] Sheriff requesting him to lift the notices of garnishment served on the other banks considering that PAL has an account with the Allied Banking Corporation sufficient to cover the amount stated in the garnishment. [The lower court] [s]heriff did not lift the other Notices of Garnishment.
"Hence, [respondents filed a] petition [with the CA].x x x x x x x x x
"On January 14, 2003, [the CA] issued a Temporary Restraining Order restraining [RTC] Judge Pedro De Leon Gutierrez and x x x Deputy Sheriff Severino D.C. Balubar, Jr. and PESALA, and all other persons acting in their behalf or under their instructions, from enforcing or implementing the Order dated 10 December 2002, the Writ of Execution pending Appeal dated 11 December 2002 and the notices of garnishment issued pursuant to said writ."[5]
Simply stated, the issues posed before the Court are as follows: 1) whether the Petition for Certiorari filed in the CA is proper; 2) whether respondents are guilty of forum shopping; and 3) whether the trial court's grant of the Writ of Execution Pending Appeal was justified."A
"Whether or not the Honorable Court of Appeals has departed from the accepted and usual course of judicial proceedings when it entertained and even granted the respondents' Petition for Certiorari, Prohibition and Injunction despite the pendency of their Motions for Reconsideration, To Quash Writ of Execution Pending Appeal, and To Lift Notices of Garnishment before the trial court."B
"Whether or not the Honorable Court of Appeals has decided the issue on forum shopping in a way not in accord with law and applicable decisions of this Honorable Tribunal."C
"Whether or not the Honorable Court of Appeals grievously erred in finding that the trial court committed grave abuse of discretion in issuing the Writ of Execution Pending Appeal despite the established legal basis in doing so."D
"Whether or not the Honorable Court of Appeals seriously erred when it applied the pronouncement of this Honorable Tribunal in the case of RCBC vs. IAC (320 SCRA 279) despite the utter lack of basis." [9]
"(a) where the order is a patent nullity, as where the court a quo has no jurisdiction;Petitioner asserts, however, that the CA should not have applied the above exceptions, given that respondents had in fact sought a reconsideration of the RTC's ruling prior to filing the certiorari case with the appellate court. We disagree.
(b) where the questions raised in the certiorari proceedings have been duly raised and passed upon by the lower court, or are the same as those raised and passed upon in the lower court;
(c) where there is an urgent necessity for the resolution of the question and any further delay would prejudice the interests of the Government or of the petitioner or the subject matter of the action is perishable;
(d) where, under the circumstances, a motion for reconsideration would be useless;
(e) where petitioner was deprived of due process and there is extreme urgency for relief;
(f) where, in a criminal case, relief from an order of arrest is urgent and the granting of such relief by the trial court is improbable;
(g) where the proceedings in the lower court are a nullity for lack of due process;
(h) where the proceedings was ex parte or in which the petitioner had no opportunity to object; and
(i) where the issue raised is one purely of law or where public interest is involved." [11]
"Considering the absence of the counsel of the plaintiff, Atty. Acerey Pacheco in today's hearing, the latter is directed to submit his Comment/Opposition to the Urgent Motions For Reconsideration To Quash Writ of Execution Pending Appeal And To Lift Notices of Garnishment of the defendants within ten (10) days from receipt hereof which upon receipt by this Court the incident shall be deemed submitted for resolution.Records show, however, that respondents filed on January 7, 2003, a Manifestation taking exception to the contents of the foregoing Order. According to them, the Motions have not been calendared for hearing on December 17, 2002, and were in fact not heard in open court. [21] Moreover, the Order was mailed to respondents only on December 26, 2002, after respondents had filed their Petition with the CA on December 23, 2002.[22]
"Atty. Nelson Reyes for the defendants is notified in open Court."
"A 'final' judgment or order is one that finally disposes of a case, leaving nothing more for the court to do in respect thereto — such as an adjudication on the merits which, on the basis of the evidence presented at the trial, declares categorically what the rights and obligations of the parties are and which party is in the right, or a judgment or order that dismisses an action on the ground of res judicata or prescription, for instance. It is to be distinguished from an order that is 'interlocutory,' or one that does not finally dispose of the case, such as an order denying a motion to dismiss under Rule 16 of the Rules of Court, or granting a motion for extension of time to file a pleading. As such, only final judgments or orders (as opposed to interlocutory orders) are appealable. Now, a 'final' judgment or order in the sense just described becomes 'final and executory' upon expiration of the period to appeal therefrom where no appeal has been duly perfected or, an appeal therefrom having been taken, the judgment of the [appellate] court in turn has become final. It is called a 'final and executory' judgment because execution at such point issues as a matter of right."[30]
"x x x. [A judgment or order becomes] not only final — because finally disposing of the case and leaving nothing more to be done by the adjudging court relative to its merits, but also executory — because the period for appeal has expired without an appeal having been taken, or an appeal having been perfected, x x x. Indeed, the correctness of such an interlocutory order may subsequently be impugned on appeal by any party adversely affected thereby, regardless of whether or not he had presented a motion for the reconsideration thereof, if he has otherwise made of record his position thereon." [32]The Court agrees that the CA may review the propriety of the RTC's grant of the execution of the Decision pending appeal. The appellate court erred, however, when it found that the actions involved in that Decision were not for injunction, but for specific performance, damages, declaratory relief and indirect contempt.
"SEC. 4. Judgments not stayed by appeal. — Judgments in actions for injunction, receivership, accounting and support, and such other judgments as are now or may hereafter be declared to be immediately executory, shall be enforceable after their rendition and shall not be stayed by an appeal taken therefrom, unless otherwise ordered by the trial court. On appeal therefrom, the appellate court in its discretion may make an order suspending, modifying, restoring or granting the injunction, receivership, accounting, or award of support.As a rule, immediately executory judgments in actions for injunction shall not be stayed by appeal. This rule, however, allows for exceptions. The phrase "unless otherwise ordered by the trial court" provides the RTC ample discretion to stay the execution if warranted by the circumstances. The last paragraph of Section 4 of Rule 39 confirms that the immediate execution of an injunction may be stayed on appeal. Further, a stay of execution may also be ordered on appeal by the CA."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."