GR L 20705; (June, 1966) (Digest)
G.R. No. L-20705 June 20, 1966
LUZON SURETY CO., INC., petitioner, vs. RAFAEL P. GUERRERO, SR., ET AL., respondents.
FACTS
Rafael P. Guerrero filed an ejectment case against spouses Felipe and Julia Navarro in the Municipal Court of Bacolod City. After the Navarros defaulted, judgment was rendered in Guerrero’s favor. Upon motion, a writ of execution was issued, and the sheriff levied upon the Navarros’ personal properties. The Navarros filed a petition for relief with the Court of First Instance of Negros Occidental, praying to set aside the judgment and writ of execution. They filed a bond of P600.00 with Luzon Surety Co., Inc. as surety, upon which the court issued a writ of preliminary injunction restraining the sheriff from selling the levied properties and ordering their release. The court later dismissed the petition for relief due to Navarro’s failure to prosecute and held the bond liable for whatever damages Guerrero may have suffered. Subsequently, the court issued an ex-parte order for a writ of execution against the bond. Luzon Surety moved to set aside the order and writ, arguing they were issued without the required notice and hearing. The motion was denied, prompting Luzon Surety to file the present petition for certiorari.
ISSUE
Whether the respondent judge committed a grave abuse of discretion or exceeded jurisdiction in issuing the ex-parte order and writ of execution against the injunction bond without a hearing to determine damages.
RULING
Yes. The bond filed by Luzon Surety was an injunction bond liable for damages the enjoined party may suffer if the injunction was later declared issued without sufficient cause. Under the Rules of Court (Section 9, Rule 60, and Section 20, Rule 59, in relation to Section 9, Rule 58, and Section 20, Rule 57), the party claiming damages must make a formal claim, and a hearing must be held to allow the claimant to prove damages and the surety to defend itself. The respondent judge issued the order and writ of execution ex-parte without such a hearing. Therefore, the order and writ are void. The writ of certiorari is granted, and the preliminary injunction issued by the Supreme Court is made final.
RESOLUTION ON MOTION FOR RECONSIDERATION (October 22, 1966):
Respondent Guerrero filed a motion for reconsideration. The Supreme Court granted the motion in part. It clarified that while Guerrero’s motions substantially complied with the requirement of filing a claim for damages, no hearing was held before the writ of execution was issued. The lower court is directed to hold the required hearing to determine the claim for damages against the bond.