GR L 1357; (February, 1948) (Digest)
G.R. No. L-1357; February 9, 1948
MARIANO R. LACSON, petitioner, vs. C. N. HODGES and HON. MANUEL BLANCO, Judge of First Instance of Iloilo, respondents.
FACTS
In Civil Case No. 118 of the Court of First Instance of Iloilo, C.N. Hodges filed an action for collection of a mortgage debt against Mariano R. Lacson. Hodges applied for the appointment of a receiver over the mortgaged property, alleging it was in a state of ruin and its value was becoming insufficient to answer for the debt. Lacson opposed, stating he had spent P50,000 to repair the property, that he was solvent, and that he owned other properties worth over P2,000,000. The respondent judge appointed Linnie Hodges as receiver under a P10,000 bond. Lacson filed a motion for reconsideration, asking either for revocation of the appointment or, alternatively, for permission to post a bond under Rule 61, Section 4, to answer for any damages. The motion was denied.
ISSUE
Whether the respondent judge committed a grave abuse of discretion in appointing a receiver and denying Lacson’s offer to post a bond under Rule 61, Section 4, in lieu of the receivership.
RULING
Yes. The Supreme Court ruled that the appointment of a receiver is not a matter of strict right but rests on the sound discretion of the court. Under Rule 61, Section 4, the court may deny the application or discharge the receiver if the opposing party files a bond to answer for all damages the applicant may suffer. The Court found that the bond offered by Lacson would better secure the payment of the judgment debt than a receivership, as the receiver could not improve the property’s value without capital investment. The bond would avoid unnecessary deprivation of Lacson’s possession and additional expenses. The respondent judge abused his discretion in refusing to allow Lacson to post such a bond. The orders dated January 18 and February 15, 1947, were set aside, and the respondent judge was ordered to allow Lacson to post a bond under Rule 61, Section 4. Costs were awarded against the respondents.
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