CIVIL PROCEDURE DIGESTS (2013 2014) SALVADOR

G.R. No. 121517 Velasco v CA Plaintiffs: Ray U. Velasco, Joseymour P Ecobiza, Wilhelm Barlis and Bernabe Alabastro efendant: !ourt of A""eals, #irm$ood !or"oration, and &ta. !lara 'ousin( )ndustries e%elo"ment March 31, 2000 o

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y contributed a hu(e sum of money still o$ed by the "artnershi" of P*9.. o Partnershi" $as unilaterally dissol%ed, and dis"osal of (oods and stoc0s be(an. ys and en%er sou(ht +udicial termination of the "artnershi" and accountin( and dama(es. /hey also "rayed for a tem"orary restrainin( order and a $rit of "reliminary in+unction a(ainst i"lomas and &ta. !lara, $hich $as (ranted. i"lomas and &ta. !lara :uestion the order in a "etition for certiorari $ith the !A. o Petition $as (ranted, and $rit of "reliminary in+unction $as set aside. y s"ouses and en%er raised the matter to &!. o &e"tember ;, *123 <ranted a tem"orary restrainin( order a(ainst the i"lomas and &ta. !lara from $ithdra$in( and dis"osin( of the "ly$ood in%entory in the &ta. !lara "lant or $arehouse. ue to re"orts of se%eral crates of "ly$ood bein( remo%ed from the &ta. !lara "remises in %iolation of the tem"orary restrainin( order, e"uty &heriff Ecobiza, $ith Atty. Alabastro, seized the ** crates alle(edly bein( trans"orted to /efasco Wharf. o !rates had the mar0in(s of &ta. !lara and #irm$ood e%elo"ment !or"oration 45#irm$ood67. o Ecobiza and Alabastro e=ecuted an affida%it that seizure $as "ursuant to the tem"orary restrainin( order. >o%ember *2, *123 #irm$ood filed in the R/! a com"laint for deli%ery of "ersonal "ro"erty, dama(es, and attorney-s fees o A(ainst: Velasco , ex-officio sheriff of a%ao !ity R/!

!A&E: A ci%il case $as filed a(ainst &ta. !lara !or"oration, $hich resulted in a tem"orary restrainin( order to sto" them from disbursin( their "ly$ood in%entory. After re"orts of continued remo%al of crates of "ly$ood, e"uty &heriff Ecobiza and Atty. Alabastro seized ** crates $hich $ere su""osed to be deli%ered to #irm$ood !or"oration. #irm$ood then filed a com"laint a(ainst them for deli%ery of the crates. &ta. !lara +oined in throu(h a com"laint,in,inter%ention, alle(in( that the crates $ere #irm$ood-s, and not their o$n, but they had le(al interest because they $ere liable to dama(es for failure to deli%er. Both #irm$ood and &ta. !lara filed a .otion for &ummary Jud(ment, $hich $as (ranted. Petitioners "rotested this, but court decided that they $ere liable throu(h summary +ud(ment "roceedin(s. /he &! ruled that the (rantin( of the motion for summary +ud(ment $as "ro"er because the material facts $ere not contested. /hey also ruled that the "etitioners had no authority to seize the crates and 0ee" them in custodia le(is. BACKGROUND: *123 /he y s"ouses and en%er Builders &u""ly )nc. 45 en%er67 filed a ci%il case a(ainst the i"loma family and &ta. !lara 'ousin( )ndustries, )nc. 45&ta. !lara67. !om"laint alle(ed the follo$in(: o 8ct. 9* *123 Both "arties entered into a +oint "artnershi" %enture a(reement to o"erate the &ta. !lara "lant in a%ao !ity.

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CIVIL PROCEDURE DIGESTS (2013 2014) SALVADOR

Ecobiza, e"uty &heriff of a%ao Barlis ? former !ommandin( 8fficer of the ;91th )nfantry Battalion in a%ao !ity Atty. Alabastro ? !ounsel for the y s"ouses o Alle(in( that since it o$ned the ** crates seized, it had the ri(ht of "ossession or the "ayment of the %alue of the "ly$ood seized in case deli%ery is im"ossible. o Prayed for reimbursement of e="enses $orth P@,AAA, P@A,AAA each for tem"erate dama(es, e=em"lary dama(es, and attorney-s fees. January **, *122 &! set aside the tem"orary restrainin( order. #ebruary B2, B122 Petitioners 4Velasco, Ecobiza, Barlis, Alabastro7 filed their ans$er $ith counterclaim, alle(in( the follo$in(. o #irm$ood $as not the o$ner of the crates, but &ta. !lara. /herefore, they $ere not entitled to reco%ery. o /hey had authority to seize the crates and "ut them under custodia le(is due to the tem"orary restrainin( orde. .ay BC, *122 &ta. !lara filed a com"laint,in,inter%ention alle(in( the follo$in(: o )t had a le(al interest in the matter in liti(ation &ince it $as ans$erable for any dama(es arisin( from a $arranty to deli%er the (oods to #irm$ood #irm$ood $as the true and la$ful o$ner of the crates, since &ta !lara milled it for them. &ince the tem"orary restrainin( order $as lifted, &ta. !lara can continue its re(ular business $ithout interference.

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Petitioners filed their ans$er to the com"laint,in, inter%ention denyin( #irm$ood-s o$nershi", and assertin( &ta. !lara-s. Au(ust 9A, *122 #irm$ood filed a .otion for &ummary Jud(ment, alle(in(: o Aside from the amount of dama(es due, there $as no (enuine issue as to any material facts of the case since &ta. !lara confirmed #irm$ood-s o$nershi". &e"tember *B, *122 &ta. !lara filed a .otion for &ummary Jud(ment, alle(in( the same (rounds as #irm$ood, and that "etitioners did not ha%e authority to hold the "ro"erty in custodia le(is. >o%ember B1, *122 .otions for summary +ud(ment $ere (ranted. o Petitioners $ere ordered to release the crates and deli%er them to #irm$ood or &ta. !lara. )n case of loss, "ay the declared %alue of P*;A,AAA, or any amount "ro%ed durin( the hearin( for determinin( the actual %alue. #ebruary 3, *121 )ssued another order directin( "etitioners to "ay the amount incurred by #irm$ood for filin( the com"laint. Petitioners a""ealed the B orders to the !A, but it $as dismissed. !A held that: o Pleadin(s, anne=es, and affida%its in su""ort of the motions $ere sufficient to o%ercome the "etitioner-s o""osition, and to +ustify the findin( that there $as no le(itimate defense. o Diftin( of the restrainin( order made irrele%ant "etitioner-s claim to the crates. o &ustained the a$ardin( of dama(es to #irm$ood, $hose "ro"erty $ere $ron(fully attached or seized. !!U"! #O B" R"!O$V"D: *. Whether or not the summary +ud(ment rendered $as

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"ro"er. B. Whether or not "etitioners had the authority to seize and hold the crates in custodia le(is not$ithstandin( the liftin( of the tem"orary restrainin( order. R"!O$U# ON! AND ARGUM"N#! !!U" 1 Whether or not the summary +ud(ment rendered $as "ro"er /rial court committed no error in renderin( a summary +ud(ment .a+or Point *: R%le 35 (i%es authority to the trial courts to (rant relief by summary +ud(ment to e="edite or "rom"tly dis"ose of cases $here the facts a""ear undis"uted. Rule does not %est in the court summary +urisdiction to try issues on "leadin(s and affida%its, but (i%es them limited authority to enter summary +ud(ment if it clearly a""ears that there is no (enuine issue of material fact. )m"ossible to state a (eneral rule for determinin( $hether a (enuine issue of fact e=ists in a "articular case. o etermination $ill de"end on the "articular circumstances of each case. o Dan(ua(e used by courts in ma0in( a determination $ill ser%e to (uide the court in ho$ they should a""roach the :uestion to be determined. !ourt is not authorized to try the issue of fact, but to determine $hether there is an issue to be tried. o )f there is a motion, defendin( "arty must sho$ that he has a "lausible (round of defense, $hich is fairly ar(uable and of a substantial character. .a+or Point B: .aterial a%erments of the com"laint $ere similar. 8$nershi" of crates: o #irm$ood: /hey $ere the o$ner of the crates. o Petitioners: &ta. !lara o$ned the crates, but admitted that the crates had the label and mar0in(s of #irm$ood. o &ta. !lara: #irm$ood $as the true and la$ful

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o$ner. Diftin( of the restrainin( order: o &ta. !lara: /he restrainin( order, $hich $as the basis for the seizure, $as already lifted. o Petitioners: Admitted that the restrainin( order $as lifted.

!!U" 2 Whether or not "etitioners had the authority to seize and hold the crates in custodia le(is not$ithstandin( the liftin( of the tem"orary restrainin( order. >o authority. .a+or Point *: A "reliminary in+unction, $hich includes a tem"orary restrainin( order, should ne%er be used to transfer the "ossession or control of a thin( to a "arty $ho did not ha%e such "ossession or control at the case-s ince"tion. /he order did not contain a directi%e to seize "ro"erty belon(in( to &ta. !lara, or to 0ee" the "ro"erty seized in their "ossession. o 'ence, seizure $as %oid and ille(al. Any %iolation of the in+unction or tem"orary restrainin( order is considered a contem"t of court, and the a((rie%ed "arty can institute contem"t "roceedin(s. .a+or Point B: Bein( "urely a :uestion of la$ and unrelated to the issue, is not a bar to summary +ud(ment. & NA$ V"RD C#: Petition is denied. ecision of the !A is affirmed. Petitioners are ordered to deli%er the crates to "ri%ate res"ondents. !"'ARA#" O' N ON! D" (O)A, (., concurring <E>ERAD #A!/& &"ecific details or issues $hich the +ustice re"eats or (i%es im"ortance to from the ori(inal case. Princi"al Euestion: %alidity of the "roceedin(s held in ci%il case >o. 9A*B durin( Ja"anese occu"ationF and the effect

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on said "roceedin(s of the "roclamation of <en. ou(las .acArthur dated 8ct.B9, *1;;. AR<U.E>/& What the +ustice ar(ues for the issues etc. /he *a+%e Co,ve,-.o,s o/ 1011, res"ectin( la$s and customs of $ar on land, e="ressly declares that: AR# C$" 2$ . /erritory is considered occu"ied $hen it is actually "laced under the authority of the hostile army. /he occu"ation a""lies only to be territory $here such authority is established, and in a "osition to assert itself.

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