G.R. No. L-1828; February 26, 1948
JOSE SILVESTRE, ET AL., petitioners, vs. CONRADO SANCHEZ, ET AL., respondents.

FACTS

Petitioners filed two complaints in the Court of First Instance of Manila seeking to annul mortgages on the vessel “International Trader,” registered in the name of respondent D.B. Ambrosio, and to enjoin its extrajudicial foreclosure. They claimed to be the true owners and alleged non-participation in the mortgage executions. The trial court, upon intervention by the Bureau of Labor for unpaid crew wages, set conditions for issuing a preliminary injunction to suspend the sale: a cash deposit of P7,500 for partial wage payment and bonds totaling P80,000 to secure claims of the Bureau of Customs, crew wages, and mortgage creditors. Petitioners challenged this order as excessive and an abuse of discretion.

ISSUE

Did the trial court commit grave abuse of discretion in setting the conditions for the issuance of a preliminary injunction?

RULING

No. The Supreme Court held that the trial court did not commit grave abuse of discretion or exceed its jurisdiction. The conditions were reasonable given the vessel’s multiple urgent and preferred obligations—including customs duties, crew wages, and mortgage debts—totaling approximately P125,000, the lapse of insurance, and the vessel’s depreciation. The Court noted petitioners’ ownership claim was not conclusively proven and one petitioner had notarized a mortgage deed, justifying protective measures for creditors. The petition was dismissed.

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