G.R. No. 24996, September 4, 1926
J. M. PO PAUCO, plaintiff-appellant, vs. J. G. TAN JUNCO, defendant-appellee.

FACTS

J. M. Po Pauco sued J. G. Tan Junco for damages from alleged breached sugar contracts. The trial court ruled for Po Pauco, ordering execution pending appeal. The sheriff levied and sold Tan Junco’s properties. On appeal, the Supreme Court reversed the trial court’s judgment, absolving Tan Junco from the complaint and ordering an accounting on his cross-claim. The Supreme Court remanded the case, indicating that Tan Junco’s claim for damages from the wrongful execution should be pursued via a supplemental motion in the same case, not a separate action. Upon remand, Tan Junco filed such a motion seeking restitution for the properties seized. The trial court, after hearings, awarded Tan Junco a balance on the cross-claim and the full value of the seized properties. Po Pauco appealed.

ISSUE

1. What is the correct amount due to Tan Junco on the cross-claim for current account?
2. What is the extent of Po Pauco’s liability for the properties seized under the erroneous execution?

RULING

1. On the Current Account: The Supreme Court recalculated the account, finding a balance in favor of Tan Junco in the amount of P2,641.71, not the P6,506.60 awarded by the trial court.
2. On Liability for Wrongful Execution:
* For properties purchased by Po Pauco himself at the sheriff’s sale, he is liable for their actual value (P2,798.40).
* For properties sold to third parties, the general rule of restitution applies: Po Pauco is liable only for the actual proceeds (P1,681.41) that came into his hands from the sale, not the full market value. A judgment creditor who causes execution is not a wrongdoer and is protected by the process while the judgment stands unreversed.
3. Final Computation: The total award in favor of Tan Junco is modified to P6,668.29, computed as follows: P2,641.71 (account balance) + P2,798.40 (value of properties bought by Po Pauco) + P1,681.41 (proceeds from sales to third parties) – P453.23 (amount applied to Tan Junco’s tax, for which he received no benefit). Interest is awarded accordingly.

The appealed judgment was AFFIRMED with MODIFICATION as to the amount.