Execution Pending Appeal

RULE 39
Execution, Satisfaction and Effect of Judgments
Section 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.

Requirements:

In Manacop v. Equitable Banking Corporation (G.R. No.

162814-17, August 25, 2005, 468 SCRA 256.)
(a) there must be a motion by the prevailing party with notice to the adverse party;
(b) there must be a good reason for execution pending appeal; and
(c) the good reason must be stated in a special order.

Good Reasons; Defined.As such exception, the courts discretion in allowing it must be strictly
construed and firmly grounded on the existence of good reasons. Good reasons,
it has been held, consist of compelling circumstances that justify immediate
execution lest the judgment becomes illusory. The circumstances must be
superior, outweighing the injury or damages that might result should the losing
party secure a reversal of the judgment. Lesser reasons would make of execution

pending appeal, instead of an instrument of solicitude and justice, a tool of

oppression and inequity. (Florendo vs Paramount Corp. G.R. No. 167976, January
20, 2010)

EXAMPLES OF GOOD REASONS

1. Imminent danger of insolvency. (Archinet International
Philippines, Inc., G.R. No. 183753, June 19, 2009)

vs Becco

2. Judgment debtor is actually insolvent (Padilla et.al. vs CA, et.al., L-31569, Sept.
28, 1973)
3. The Prevailing party was a natural person who, at 76 years of age, may no
longer enjoy the fruit of the judgment before he finally passes away. (Borja vs
Court of Appeals. 274 Phil. 258 [1991])
4. When the appeal is dilatory and the losing party intends to encumber and/or
dispose of the property subject of the case during the pendency of the appeal in
order to defraud or deprive the plaintiff of proprietary rights and defeat the ends of
justice (Home Insurance Company vs. Court of Appeals, 184 SCRA 318 [1990]
However, BF Corporation v. Edsa Shangri-la Hotel, the Supreme Court held
that an allegation that the appeal is merely dilatory is not a good reason for
granting execution pending appeal.
Note: Good reason as required by Section 2, Rule 39 of the Rules of
Court does not necessarily mean unassailable and flawless basis but at the very
least, it must be on solid footing. Dire financial conditions of the plaintiffs
supported by mere self-serving statements as good reason for the issuance of a
writ of execution pending appeal does not stand on solid footing. It does not even
stand on its own. (National Power Corporation vs Judge Adiong, A.M. No. RTJ07-2060)
5. That the goods subject matter of the judgment will deteriorate during the
pendency of the appeal; and that a slight deterioration of said goods will be
sufficient to impair their market value as first-hand goods. (Federation of United
Namarco Distributors, Inc. v. National Marketing Corp. G.R. L-17819 March 31,
1962)