G.R. No. L-8699; March 7, 1914

FACTS:
La Compañia de Tabacos de Filipinas (the plaintiff) was subjected to a levy of execution on its land by the Sheriff of Occidental Negros (the defendants). The plaintiff contended that the court which issued the execution lacked jurisdiction, rendering the levy null and void. To avoid the loss and injury that would result from an actual sale of the land under this wrongful execution, the plaintiff paid a sum of money to the sheriff under protest. Subsequently, in a prior action, the court indeed declared the execution “null, for the reason that the court was without jurisdiction to issue the same.” The plaintiff then filed the present action to recover the money it had paid to the sheriff. The defendants interposed the defense of res adjudicata, claiming the matter was already settled in the prior case. The trial court rejected this plea and ordered the defendants to return the money but denied the plaintiff’s claim for interest on the amount paid.

ISSUE:
1. Whether the defendants’ plea of res adjudicata is valid.

RULING:
1. On the plea of res adjudicata: The Supreme Court held that the plea was properly disregarded by the trial court. The prior adjudication, which declared the execution null for lack of jurisdiction, did not and could not have put in issue the plaintiff’s right to recover the money it paid to avoid the execution’s effects. Instead, the prior judgment established the plaintiff’s right to recover the money upon proof of payment and the circumstances compelling such payment to prevent unnecessary loss. Therefore, res adjudicata does not bar the present action.

DISPOSITIVE PORTION:
The judgment of the lower court is modified. The defendants are ordered to pay the plaintiff the amount of money turned over to the sheriff, with legal interest at the rate of 6 percent per annum from the date of payment until full restitution. In all other respects, the judgment is affirmed.