G.R. No. 115829 . June 5, 1995.
MARIANO T. NASSER, petitioner, vs. COURT OF APPEALS and HEIRS OF CALVIN R. BORRE, SR., respondents.

FACTS

Calvin R. Borre purchased a lot with a natural spring. His brother, Arnaldo R. Borre, subsequently purchased the same property from the same sellers. Calvin sued for nullity of the second sale. The brothers entered into a compromise agreement, approved by the court, wherein title remained with Arnaldo but Calvin was entitled to 40% of the net income from the Lidao Water System operated thereon. To evade this obligation, Arnaldo transferred operations to corporate entities, including Samal Water Services, Inc. and Island Spring Ship Water Supplier. Petitioner Mariano T. Nasser, through his Nasser Water Ferry Services, Inc., was a customer who purchased water from these entities.
During execution proceedings, the trial court, to secure Calvin’s share, issued an order directing all those withdrawing water for business, including Nasser, to deposit the income with the clerk of court. Nasser failed to comply. The court then issued an alias writ of execution garnishing funds due to Nasser from shipping companies for water deliveries. Nasser challenged these orders, claiming he was not a party to the original case and thus not bound by the judgment.

ISSUE

Whether petitioner Mariano T. Nasser, a stranger to the original compromise agreement, can be compelled to comply with the trial court’s orders for the enforcement of said judgment.

RULING

Yes. The Supreme Court ruled that a judgment based on a compromise agreement is immediately executory and not appealable. While Nasser was not a formal party to the case, he was correctly considered an agent or representative of the judgment debtor, Arnaldo Borre. The evidence established that Nasser’s business was effectively a conduit for Arnaldo’s operations, designed to siphon off income to frustrate the execution of the judgment in favor of Calvin. The trial court’s orders, including the garnishment, were valid auxiliary writs necessary to effectuate and protect its final judgment. Courts possess inherent power to issue all auxiliary writs, processes, and other means necessary to carry their judgments into effect and prevent them from being rendered inutile. A judgment cannot be defeated by the defendant’s mere expedient of transferring operations to another entity under a different name. The prolonged delay in enforcing the compromise agreement, spanning nearly two decades, was unjustified. The petition was dismissed and the alias writ of execution ordered enforced without delay.