EXECUTION, SATISFACTION AND EFFECT OF JUDGMENTS (Rule 39)

Difference between finality of judgment for purpose of appeal; for purposes of

execution

(1) The term “final” when used to describe a judgment may be used in two
senses. In the first, it refers to a judgment that disposes of a case in a manner
that leaves nothing more to be done by the court in respect thereto. In this
sense, a final judgment is distinguished from an interlocutory order which does
not finally terminate or dispose of the case (Rudecon Management Corp. vs.
Singson, 4554 SCRA 612). Since the finality of a judgment has the effect of
ending the litigation, an aggrieved party may then appeal from the judgment.
Under Sec. 1, Rule 41, an appeal may be taken from a judgment or final order
that completely disposes of the case. Under the same rule, an appeal cannot
be taken from an interlocutory order.
(2) In another sense, the word “final” may refer to a judgment that is no longer
appealable and is already capable of being executed because the period for
appeal has elapsed without a party having perfected an appeal or if there has
been appeal, it has already been resolved by a highest possible tribunal (PCGG
vs. Sandiganbayan, 455 SCRA 526). In this sense, the judgment is commonly
referred to a s one that is final and executory.

When execution shall issue; Execution as a matter of right (Sec. 1)

(1) 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 (Sec. 1, Rule 39). 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.
Once a decision becomes final and executory, it is the ministerial duty of the
presiding judge to issue a writ of execution except in certain cases, as when
subsequent events would render execution of judgment unjust (Mangahas vs.
Paredes, GR 157866, Feb. 14, 2007).
(2) The above principles have been consistently applied. Thus, in a
subsequent ruling the Court declared: ”Once a judgment becomes final, it is
basic that the prevailing party is entitled as a matter of right to a writ of
execution the issuance of which is the trial court’s ministerial duty, compellable
by mandamus” (Greater Metropolitan Manila Solid Waste Management
Committee vs. Jancom Environmental Corp., GR 2163663, Jan. 30, 2006).
(3) Judgments and orders become final and executor by operation of law
and not by judicial declaration. The trial court need not even pronounce the
finality of the order as the same becomes final by operation of law. Its finality
becomes a fact when the reglementary period for appeal lapses, and no
appeal is perfected within such period (Testate of Maria Manuel Vda. De
Biascan, 374 SCRA 621; Vlason Enterprises vs. CA, 310 SCRA 26).
(4) Execution is a matter or right after expiration of period to appeal and no
appeal is perfected, except in the following cases:

(a) Where judgment turns out to be incomplete or conditional;

(b) Judgment is novated by the parties;

(c) Equitable grounds (i.e., change in the situation of the parties—supervening

fact doctrine)

(d) Execution is enjoined (i.e., petition for relief from judgment or annulment of
judgment with TRO or writ of preliminary injunction);

(e) Judgment has become dormant; or

(f) Execution is unjust or impossible.

Discretionary execution (Sec. 2)

(1) The concept of discretionary execution constitutes an 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. Under Sec. 1, Rule 39,
execution shall issue only as a matter of right upon a judgment or final order that
finally disposes of the action or proceeding upon the execution of the period to
appeal therefrom if no appeal has been duly perfected.

(2) A discretionary execution is called “discretionary” precisely because it is

not a matter of right. The execution of a judgment under this concept is
addressed to the discretionary power of the court (Bangkok Bank Public
Company Ltd. vs. Lee, GR 159806, Jan. 29, 2006). Unlike judgments that are final
and executor, a judgment subject to discretionary execution cannot be insisted
upon but simply prayed and hoped for because a discretionary execution is not
a matter of right.
(3) A discretionary execution like an execution pending appeal must be
strictly construed because it is an exception to the general rule. It is not meant to
be availed of routinely because it applies only in extraordinary circumstances. It
should be interpreted only insofar as the language thereof fairly warrants, and
all doubts should be resolved in favor of the general rule (Planters Products, Inc.
vs. CA, GR 106052, Oct. 22, 1999). Where the execution is not in conformity with
the rules, the execution is null and void (Bangkok Bank vs. Lee, supra.).
(4) Requisites for discretionary execution:

(a) There must be a motion filed by the prevailing party with notice to the
adverse party;

(b) There must be a hearing of the motion for discretionary execution;

(c) There must be good reasons to justify the discretionary execution; and

(d) The good reasons must be stated in a special order (Sec. 2, Rule 39).

How a judgment is executed (Sec. 4)

(1) 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. 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.

(2) Judgments that may be altered or modified after becoming final and
executory:
(a) Facts and circumstances transpire which render its execution impossible or
unjust;

(b) Support;

(c) Interlocutory judgment.

Execution by motion or by independent action (Sec. 6)

(1) A final and executor judgment or order may be executed on motion within
5 years from the date of its entry. After the lapse of such time, and before it is
barred by the statute of limitations, a judgment may be enforced by action. The
revived judgment may also be enforced by motion within 5 years from the date
of its entry and thereafter by action before it is barred by the statute of
limitations.

Issuance and contents of a writ of execution (Sec. 8)

(1) The writ of execution shall: (i) issue in the name of the Republic of the
Philippines from the court which granted the motion; (ii) state the name of the
court, the case number and title, the dispositive part of the subject judgment or
order; and (iii) require the sheriff or other proper officer to whom it is directed to
enforce the writ according to its term, in the manner hereinafter provided:

(a) If the execution be against the property of the judgment obligor, to satisfy
the judgment, with interest, out of the real or personal property of such
judgment obligor;

(b) If it be against real or personal property in the hands of personal

representatives, heirs, devisees, legatees, tenants, or trustees of the judgment
obligor, to satisfy the judgment, with interest, out of such property;

(c) If it be for the sale of real or personal property, to sell such property,
describing it, and apply the proceeds in conformity with the judgment, the
material parts of which shall be recited in the writ of execution;
(d) If it be for the delivery of the possession of real or personal property, to
deliver the possession of the same, describing it, to the party entitled thereto,
and to satisfy any costs, damages, rents, or profits covered by the judgment out
of the personal property of the person against whom it was rendered, and if
sufficient personal property cannot be found, then out of the real property; and

(e) In all cases, the writ of execution shall specifically state the amount of the
interest, costs, damages, rents, or profits due as of the date of the issuance of
the writ, aside from the principal obligation under the judgment. For this
purpose, the motion for execution shall specify the amounts of the foregoing
reliefs sought by the movants.

Execution of judgment for money (Sec. 9)

(1) In executing a judgment for money, the sheriff shall follow the following
steps:

(a) 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 oblige or any other form of payment acceptable to
him (Sec. 9). In emphasizing this rule, the SC held that in the execution of a
money judgment, the sheriff is required to first make a demand on the obligor
for the immediate payment of the full amount stated in the writ of
execution (Sibulo vs. San Jose, 474 SCRA 464).
(b) 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 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 (Sec. 9[b]).

Execution of judgment for specific acts (Sec. 10)

(1) If the judgment requires a person to perform a specific act, said act must
be performed but 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 (Sec
10[a]). 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 (Sec. 10[a], Rule 39).

Execution of special judgments (Sec. 11)

(1) When a judgment requires the performance of any act other than those
mentioned in the two preceding sections, a certified copy of the judgment shall
be attached to the writ of execution and 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, to obey the same, and such party or person may be
punished for contempt if he disobeys such judgment.

Effect of levy on third persons (Sec. 12)

(1) The levy on execution shall create a lien in favor of the judgment oblige
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.

Properties exempt from execution (Sec. 13)

(1) There are certain properties exempt from execution enumerated under
Sec. 13, Rule 39:

(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 100,000 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 300,000 pesos;

(h) One fishing boat and accessories not exceeding the total value of 100,000
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 with 4 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 (Sec. 13, Rule 39).

(2) If the property mentioned in Sec. 13 is the subject of execution because of
a judgment for the recovery of the price or upon judgment of foreclosure of a
mortgage upon the property, the property is not exempt from execution.