THIRD DIVISION
CARLOS D. VILLAMOR,
Petitioner,
-versus-
NATIONAL POWER CORPORATION and the
COURT OF APPEALS,
Respondents.
G.R. No. 146735
Present:
PANGANIBAN, J., Chairman,
SANDOVAL-GUTIERREZ,
CARPIO MORALES, and
GARCIA, JJ.
Promulgated:
October 25, 2004
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D
E C I S I O N
CARPIO MORALES, J.:
At bar is a petition for
review on certiorari under Rule 45 of the Rules of Court[1]
seeking to reverse and set aside the November 23, 1999 Decision[2]
and January 2, 2001 Resolution[3] of
the Court of Appeals (CA) in CA-G.R. SP No. 48668 setting aside the order of
execution pending appeal issued by the Regional Trial Court (RTC) of Danao
City, Branch 25, in an expropriation case docketed as Civil Case No. DNA-389.
Respondent NAPOCOR
instituted an action for eminent domain[4]
with prayer for the issuance of a writ of possession against petitioner, Carlos
Villamor, before the RTC of Danao City.
Subject of expropriation was a portion containing 3,224 square meters of
a 10,625 square meter lot belonging to petitioner situated in Barangay Catipay,
Carmen, Cebu where NAPOCOR intended to install transmission lines for its 230
KV Leyte-Cebu Interconnection Project.
By Order[5] of
P23,115.70 with the Philippine National Bank (PNB)
representing the assessed value of the property as it appeared on the tax
declaration thereon.
In an Amended Complaint[6]
dated
By Order[7] of
The trial court later constituted
a board composed of three commissioners to determine the amount of compensation
that should be paid for the two parcels of land sought to be expropriated.
Following the submission
by the board of its Report,[8]
the trial court, by Decision[9] of
WHEREFORE, facts and law considered, the
Court hereby renders judgment condemning property subject of expropriation in
favor of plaintiff; declaring in favor of defendants for plaintiff to pay the
fair market value of the portions of the lots condemned by this (sic)
expropriation proceedings at P450.00 per square meter and to pay to defendant
Carlos Villamor the following amounts:
1. P2,515,842.00 for the 5,590.76 sq. mts. as
the total affected area of
2. P1,410,538.50 for the 3134.53 sq. mts. as the
total affected area of
or the total amount of Three Million Nine
Hundred Twenty-Six Thousand Three Hundred Eighty Pesos and 50/100
(P3,926,380.50);
Declaring
that the fair market value of all the improvements inside the affected lots to
be in the amounts recommended in the Commissioners’ Unit Base Market Value of
the Land and Improvements Owned by Carlos Villamor attached to the
Commissioners’ Report and ordering the Plaintiff National Power Corporation to
pay to the defendant Carlos Villamor the following amounts:
1. P648,932.00 for the total fair market value
of the improvements in
2. P372,968.00 for the total fair market value
of the improvements in
or the total amount of One Million Twenty One
Thousand Nine Hundred Pesos (P1,021,900.00);
Ordering
the amount of One Million Seven Hundred Eighty Three Thousand Five Hundred Six
Pesos and 50/100 (P1,783,506.50) representing just compensation of
SO
ORDERED.[10]
Petitioner
filed a Motion for Reconsideration[11] of
the trial court’s decision, no compensation having been awarded on a 15.23
square meter portion of the expropriated properties.
NAPOCOR also
filed a Motion for Reconsideration[12]
praying that compensation for the expropriated properties be determined on the basis
of tax declarations thereon and Sec. 3-A of Republic Act No. 6395 (An Act Revising the Charter of the NAPOCOR)
as amended by Presidential Decree No. 938.[13]
By
Resolution[14] of
Let therefore the dispositive
portion of the Decision in the last paragraph be amended by adding the
following:
Ordering Plaintiff
to pay the sum of P6,853.50 to defendant Carlos Villamor, same amount to be
included in the deposit for valid claimants as proceeds of
SO ORDERED.[15]
As for NAPOCOR’s motion,
the trial court, by Resolution[16]
of
NAPOCOR thereupon filed a
Notice of Appeal[18] dated March
2, 1998 which was given due course by Order[19]
of March 9, 1998 of the trial court which ordered the Clerk of Court to
transmit the original records of the case to the CA.
In the meantime, or on
The records show that the
Court, xxx, has still jurisdiction to issue the writ of execution pending
appeal considering that the original records of the case have not as yet been
transmitted to the Appellate Court.
The Court finds and is
convinced that defendant Carlos Villamor is entitled to same valuation of the
parcel of land adjacent to the land in question as they are similarly
situated. The failure or absence of any
objection by plaintiff to the Commissioners’ Report which was based on the
opinion values from different competent government agencies and the failure to
offer evidence why such Commissioners’ Report may not be given validity,
provides the Court a special reason to give due course to the Motion for
Execution Pending Appeal. Evidence on
record marked Exhibits “1” and “2” together with submarkings showed
convincingly that defendant Carlos Villamor is entitled to immediate execution
pending appeal. Evidence on record are (sic)
more than sufficient to provide a special reason for the execution of judgment
pending appeal.[22]
From the trial court’s
order granting petitioner’s Motion for Execution Pending Appeal, NAPOCOR filed
a Motion for Reconsideration,[23] it
asserting that when petitioner filed the motion, the trial court no longer had
jurisdiction over the case.
By Resolution[24]
of
A Notice of Garnishment on Execution[26]
dated
NAPOCOR thus filed a
petition for certiorari[27]
with the CA seeking the annulment of the
In the meantime, per the RTC
Sheriff’s Return[28] dated
By Decision of
WHEREFORE, the petition is
GRANTED and the assailed orders of respondent judge set aside. Respondent Carlos Villamor is directed to pay
to [NAPOCOR] the amount of P6,837,823.18 plus interest thereon at the legal
rate from
SO ORDERED.[29]
Petitioner
filed a Motion for Reconsideration[30] of
the CA Decision which was partially granted by the CA by Resolution of
WHEREFORE, the motion for reconsideration is
PARTIALLY GRANTED in the sense that the dispositive portion of the decision
dated
“WHEREFORE, the
petition is GRANTED and the assailed orders of respondent judge set aside. Respondent Carlos Villamor is directed to pay
to petitioner the amount of P4,955,134.00 plus interest thereon at the
legal rate from
SO ORDERED.[31] (Underscoring supplied)
Petitioner thus comes before this Court via petition for review
on certiorari assigning to the CA the following errors:
I.
THE COURT OF APPEALS ACTED CONTRARY TO
PERTINENT RULES OF PROCEDURE AND JURISPRUDENCE AND ACTED WITH GRAVE ABUSE OF
DISCRETION IN RULING THAT THE REGIONAL TRIAL COURT HAD LOST JURISDICTION TO
ENTERTAIN AND GRANT HEREIN PETITIONER’S MOTION FOR EXECUTION PENDING APPEAL;
II.
THE COURT OF APPEALS GRAVELY ABUSED ITS
DISCRETION AMOUNTING TO LACK OR EXCESS OF JURISDICTION IN HOLDING THAT THERE
WAS NO URGENT NEED FOR IMMEDIATE EXECUTION OF THE APPEALED DECISION; and
III.
THE COURT OF APPEALS WENT AGAINST SETTLED
JURISPRUDENCE AND ACTED WITH GRAVE ABUSE OF DISCRETION IN PREMATURELY HOLDING
THAT THE APPEAL OF RESPONDENT NPC WAS NOT DILATORY.[32]
Section 2 (a), Rule 39 of the Rules of Civil Procedure, the
provision governing execution of judgments pending appeal, provides:
SEC. 2. Discretionary
execution. –
(a) Execution
of a judgment or final order pending appeal. – On motion of the
prevailing party with notice to the adverse party 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, at the time of the
filing of such motion, said court may, in its discretion, order execution of a
judgment or final order even before the expiration of the period to appeal.
After the
trial court has lost jurisdiction, the motion for execution pending appeal may
be filed in the appellate court.
Discretionary
execution may only issue upon good reasons to be stated in a special order
after due hearing.
Passing on the
provision of the Rules, this Court explains:
xxx the trial
court may only grant discretionary execution while it has jurisdiction over the
case and is in possession of either of the original record or the record on
appeal, as the case may be, at the time of the filing of such motion. When not all of the parties have perfected
their appeal and the period to appeal has yet to expire, the trial court still
retains its so-called “residual jurisdiction” to order discretionary execution. Discretionary execution is thus barred
when the trial court loses jurisdiction and this occurs when all of the parties
have filed their respective appeals or when the period to appeal has lapsed for
those who did not file their appeals and when the court is no longer in
possession of the records of the case.[33] (Underscoring supplied)
NAPOCOR maintains that the trial court no longer had
jurisdiction to grant petitioner’s Motion for Execution Pending Appeal as at
the time it was filed, it (NAPOCOR) had already perfected its appeal to the CA,
hence, so it continues, petitioner should have filed the Motion with the
appellate court.
Section 9 of Rule 41 of the Rules of Court provides:
SEC. 9. Perfection
of appeal; effect thereof. – A party’s appeal by notice of appeal is
deemed perfected as to him upon
the filing of the notice of appeal in due time.
A party’s
appeal by record on appeal is deemed perfected as to him with respect to the
subject matter thereof upon the approval of the record on appeal filed in due
time.
In appeals
by notice of appeal, the court loses jurisdiction over the case upon the
perfection of the appeals filed in due time and the expiration of the time to appeal of the other parties.
In appeals by
record on appeal, the court loses jurisdiction only over the subject matter
thereof upon the approval of the records on appeal filed in due time and the
expiration of the time to appeal of the other parties.
In either
case, prior to the transmittal of the original record or the record on
appeal, the court may issue orders for the protection and preservation of the
rights of the parties which do not involve any matter litigated by the appeal,
approve compromises, permit appeals of indigent litigants, order execution
pending appeal in accordance with Section 2 of Rule 39, and allow
withdrawal of the appeal. (Emphasis and
underscoring supplied)
The mere filing by one party of a notice of appeal does not
divest the trial court of its jurisdiction over a case and to resolve pending
incidents,[34] like a motion
for execution pending appeal filed by the party within the
reglementary period for perfecting an appeal because the court must hear
and resolve such motion for it would become part of the records to be elevated
on appeal.[35]
As long as any
of the parties may still file his, her, or its appeal, the court does not lose
jurisdiction over the case.
The plaintiff
or plaintiffs may not deprive the defendants or co-plaintiffs and neither may
the defendant or defendants deprive the plaintiff or co-defendants of the right
to file a motion for reconsideration or to move for a new trial or an execution
pending appeal by immediately filing a notice of appeal. The filing of an appeal by a losing party
does not automatically divest the party favored by a decision of the right to
move for a more favorable decision or to ask for execution pending appeal. It is only after all the parties’ respective
periods to appeal have lapsed that the court loses jurisdiction over the case.[36]
In the present case, when NAPOCOR filed its Notice of Appeal
on time, the appeal was deemed perfected with respect to it only. The appeal did not deprive petitioner of its right
to file a motion for execution within the reglementary period of
appeal or fifteen days from his receipt of the trial court’s February 20,
1998 Resolution denying NAPOCOR’s Motion for Reconsideration. The records do not show that copy of the said
When a notice required to be given is not furnished to the
attorney of record of a party, the corresponding reglementary period for the
subsequent procedural steps that he may take does not start.[37] Even if it is assumed that petitioner’s
counsel did receive a copy of the trial court’s Resolution of
It bears noting that a certified true copy of the Notice of
Transmittal[38] issued
by Clerk of Court Isidro F. Bongcayao, Jr. shows that the records of the case
were transmitted to the appellate court on
Petitioner next argues that contrary to the findings of the
appellate court, there was an urgent need warranting the immediate execution of
the decision of the trial court. NAPOCOR
argues otherwise.
Execution pending appeal requires the observance of the
following requisites: (a) there must be a motion therefor by the prevailing
party; (b) there must be a good reason for issuing the writ of execution; and
(c) the good reason must be stated in a special order.[40]
The prevailing doctrine as provided for in Section 2, paragraph
3 of Rule 39 of the Rules of Civil Procedure is that discretionary execution is
permissible only when good reasons exist for immediately executing the judgment
before finality or pending appeal or even before the expiration of the period
to appeal. Good reasons consist of
compelling circumstances justifying immediate execution lest judgment becomes
illusory, or the prevailing party after the lapse of time be unable to enjoy
it, considering the tactics of the adverse party who may have apparently no cause
but to delay.[41] Such reasons must constitute superior
circumstances demanding urgency which will outweigh the injury or damages
should the losing party secure a reversal of the judgment.[42] Were it otherwise, execution pending appeal
may well become a tool of oppression and inequity instead of an instrument of
solicitude and justice.[43]
The execution of judgment pending appeal is an exception to
the general rule and must, therefore, be strictly construed.[44] So, too, it is not to be availed of and applied
routinely, but only in extraordinary circumstances.[45]
This rule is
strictly construed against the movant, for “courts look with disfavor upon any
attempt to execute a judgment which has not acquired a final character.” In the same vein, the Court has held that
such execution “is usually not favored because it affects the rights of the
parties which are yet to be ascertained on appeal.”[46]
The exercise of the power to grant or deny immediate or
advance execution is addressed to the sound discretion of the trial court.[47] However, the existence of good reasons is
indispensable to the grant of execution pending appeal. Absent any such good reason, the special
order of execution must be struck down for having been issued with grave abuse
of discretion.[48]
In the case at bar, the reason relied upon by the trial court
does not justify the issuance of the order of execution pending appeal. That NAPOCOR “failed to object to the
Commissioner’s Report and present evidence to show why such Report should not
be given validity” does not constitute the good reason contemplated by the
Rules of Court that would rationalize the granting of petitioner’s Motion for
Execution Pending Appeal. This “special
reason” is outweighed by the injury or damage that respondent would suffer if
it secures a reversal of the trial court’s judgment. As held in Maceda, Jr. v. Development Bank
of the Philippines,[49]
If the
judgment is executed and, on appeal, the same is reversed, although there are
provisions for restitution, oftentimes damages may arise which cannot be fully
compensated. Accordingly, execution
should be granted only when these considerations are clearly outweighed by
superior circumstances demanding urgency and the provision contained in Rule
39, Section 2, requires a statement of these circumstances as a security for
their existence.[50]
At all events, there is no showing that
NAPOCOR would fail to answer its obligation if the trial court decision is
affirmed on appeal. Moreover, upon final
determination of just compensation, in addition to such compensation,
petitioner would be entitled to legal interest for whatever damages that may
have accrued in the interim. He would be
entitled to six per cent (6%) per annum as legal interest on the price of the
land from the time it was taken up to the time that payment is made by the
government.[51]
Petitioner finally argues that the
appellate court erred in holding that, contrary to the findings of the trial
court, NAPOCOR’s appeal is not dilatory.
This Court is not persuaded. The CA correctly held that the authority to
determine whether the appeal is dilatory or not lies with the appellate court.[52] The trial court’s assumption prematurely
judged the merits of the main case on appeal.
Except in cases where the appeal is patently or unquestionably intended
to delay, it must not be made the basis of execution pending appeal if only to
protect and preserve a duly exercised right to appeal.[53]
xxx Well-settled is the rule
that it is not for the trial court to determine the merit of a decision it
rendered as this is the role of the appellate court. Hence, it is not within the competence of the
trial court, in resolving the motion for execution pending appeal, to rule that
the appeal is patently dilatory and rely on the same as the basis for finding
good reason to grant the motion.[54]
WHEREFORE, the petition is DENIED.
SO ORDERED.
CONCHITA
CARPIO MORALES
Associate Justice
WE CONCUR:
ARTEMIO V. PANGANIBAN
Associate Justice
Chairman
ANGELINA SANDOVAL-GUTIERREZ
RENATO C. CORONA
Associate Justice
CANCIO C. GARCIA
Associate Justice
ATTESTATION
I attest that the conclusions in the above
Decision were reached in consultation before the case was assigned to the
writer of the opinion of the Court’s Division.
ARTEMIO
V. PANGANIBAN
Associate
Justice
Chairman
CERTIFICATION
Pursuant to Article VIII, Section 13 of the
Constitution, and the Division Chairman’s Attestation, it is hereby certified
that the conclusions in the above Decision were reached in consultation before
the case was assigned to the writer of the opinion of the Court.
HILARIO G. DAVIDE, JR.
Chief Justice
[1] At the outset, this Court notes the petitioner’s error in impleading the Court of Appeals as party respondent. The only parties in an appeal by certiorari under Rule 45 of the Rules of Court are the appellant as petitioner and the appellee as respondent. The court which rendered the judgment appealed from is not a party in said appeal. It is in the special civil action of certiorari under Rule 65 where the court or judge is required to be joined as party defendant or respondent.
[2] Rollo at 35-44.
[3]
[4] CA Rollo at 37-42.
[5]
[6] Rollo at 48-53.
[7]
[8]
[9]
[10]
[11] CA Rollo at 134-145.
[12]
[13] Sec. 3A In acquiring private property rights through expropriation proceedings where the land or portion thereof will be traversed by the transmission lines, only a right-of way easement thereon shall be acquired when the principal purpose for which such land is actually devoted will not be impaired, and where the land itself or portion thereof will be needed for the projects or works, such land or portion thereof as necessary shall be acquired.
In determining the just compensation of the property or property sought to be acquired through expropriation proceedings, the same shall –
(a) With respect to the acquired land or portion thereof, not exceed the market value declared by the owner or administrator or anyone having legal interest in the property, or such market value as determined by the assessor, whichever is lower.
(b) With respect to the acquired right-of-way easement over the land or portion thereof, not to exceed then percent (10%) of the market value declared by the owner or administrator or anyone having legal interest in the property, or such market value as determined by the assessor whichever is lower.
In addition to the just compensation for easement of right-of-way, the owner of the land or owner of the improvement, as the case may be, shall be compensated for the improvements actually damaged by the construction and maintenance of the transmission lines, in an amount not exceeding the market value thereof as declared by the owner or administrator, or anyone having legal interest in the property, or such market value as determined by the assessor whichever is lower; Provided, that in cases any buildings, houses and similar structures are actually affected by the right-of-way for the transmission lines, their transfer, if feasible, shall be effected at the expense of the Corporation; Provided, further, that such market value prevailing at the time the Corporation gives notice to the landowner or administrator or anyone having legal interest in the property, to the effect that his land or portion thereof is needed for its projects or works shall be used as basis to determine the just compensation therefor.
[14] Rollo at 85-86.
[15]
[16]
[17]
[18]
[19] CA Rollo at 146.
[20] Rollo at 92-110.
[21]
[22]
[23] CA Rollo at 128-130.
[24] Rollo at 115-118.
[25] CA Rollo at 131-133.
[26]
[27]
[28]
[29] Rollo at 43-44.
[30] CA Rollo at 473-531.
[31] Rollo at 45-46.
[32]
[33] Zacate v. Commission on Elections, 353 SCRA 441, 448 (2001) (citation omitted).
[34] Valencia v. Court of Appeals, 352 SCRA 72, 79 (2001) (citation omitted), Asmala v. Commission on Elections, 289 SCRA 746, 752 (1998) (citation omitted), Edding v. Commission on Elections, 246 SCRA 502, 509 (1995) (citation omitted), Eudela v. Court of Appeals, 211 SCRA 546, 550 (1992).
[35] Asmala v. Commission on Elections, 289 SCRA 746, 752 (1998) (citation omitted), Edding v. Commission on Elections, 246 SCRA 502, 509 (1995).
[36] Associated Bank v. Gonong, 152 SCRA 478, 480 (1987).
[37] Gundayao v. Court of Appeals, 185 SCRA 606, 611-612 (1990) (citations omitted), Vecino v. Court of Appeals, 76 SCRA 98, 104 (1977).
[38] Rollo at 19.
[39] Provident International Resources Corporation v. Court of Appeals, 259 SCRA 510, 524 (1996).
[40] Maceda, Jr. v. Development Bank of the Philippines, 313 SCRA 233, 242 (1999) (citations omitted), International School, Inc. (Manila) v. Court of Appeals, 309 SCRA 474, 482-483 (1999) (citation omitted), Provident International Resources Corp. v. Court of Appeals, 259 SCRA 510, 525 (1996) (citations omitted), Eudela v. Court of Appeals, 211 SCRA 546, 551 (1992) (citations omitted).
[41] Intramuros Tennis Club, Inc. v. Philippine Tourism Authority, 341 SCRA 90, 107 (2000) (citation omitted), Yasuda v. Court of Appeals, 330 SCRA 385, 397 (2000) (citation omitted), Planters Products, Inc. v. Court of Appeals, 317 SCRA 195, 203 (1999) (citation omitted).
[42] Corona International, Inc. v. Court of Appeals, 343 SCRA 512, 518 (2000) (citation omitted), Intramuros Tennis Club, Inc. v. Philippine Tourism Authority, 341 SCRA 90, 107 (2000) (citations omitted), Yasuda v. Court of Appeals, 330 SCRA 385, 397 (2000) (citation omitted), Diesel Construction Company, Inc. v. Jollibee Foods Corporation, 323 SCRA 844, 859-860 (2000) (citation omitted), Maceda, Jr. v. Development Bank of the Philippines, 313 SCRA 233, 243 (1999) (citation omitted), Provident International Resources Corp. v. Court of Appeals, 259 SCRA 510, 527 (1996) (citations omitted), Ong v. Court of Appeals, 203 SCRA 38, 43 (1991).
[43] Intramuros Tennis Club, Inc. v. Philippine Tourism Authority, 341 SCRA 90, 107 (2000) (citation omitted), Yasuda v. Court of Appeals, 330 SCRA 385, 398 (2000) (citation omitted).
[44] Provident International Resources Corp. v. Court of Appeals, 259 SCRA 510, 525 (1996) (citation omitted).
[45] Corona International, Inc. v. Court of Appeals, 343 SCRA 512, 519 (2000) (citation omitted).
[46] Maceda, Jr. v. Development Bank of the Philippines, 313 SCRA 233, 242 (1999) (citation omitted).
[47] Intramuros Tennis Club, Inc. v. Philippine Tourism Authority, 341 SCRA 90, 108 (2000) (citation omitted), Home Insurance Company v. Court of Appeals, 184 SCRA 318, 321 (1990), Lu v. Valeriano, 111 SCRA 87, 91 (1982), Baliong v. Martinez, 85 SCRA 539, 542 (1978), Federation of United Namarco Distributors, Inc. v. National Marketing Corporation, 4 SCRA 867, 887 (1962) (citations omitted).
[48] Eudela v. Court of Appeals, 211
SCRA 546, 551 (1992),
[49] 313 SCRA 233 (1999).
[50]
[51] National Power Corporation v. Angas, 208 SCRA 542, 548-549 (1992), National Power Corporation v. Court of Appeals, 129 SCRA 665, 674 (1984), Amigable v. Cuenca, 43 SCRA 360, 364-365 (1972) (citation omitted).
[52] Rollo at 8.
[53] Intramuros Tennis Club, Inc. v. Philippine Tourism Authority, 341 SCRA 90, 109 (2000).
[54] Planters Products, Inc. v. Court of Appeals, 317 SCRA 195, 204 (1999) (citations omitted).