G.R. No. L-25550 July 31, 1968
PLARIDEL SURETY & INSURANCE COMPANY, petitioner, vs. HON. W. DE LOS ANGELES, SIMEON BIGLANG-AWA, TOMAS GALVEZ, and CITY SHERIFF OF QUEZON CITY, respondents.

FACTS

On July 9, 1954, respondent Tomas Galvez filed a replevin action in the municipal court of Quezon City against Simeon Biglang-awa to recover nine carabaos. Petitioner Plaridel Surety & Insurance Company executed a replevin bond on behalf of plaintiff Galvez. The municipal court ruled for Galvez, but the Court of First Instance reversed the decision, declaring Biglang-awa the owner. The Court of Appeals affirmed the CFI decision on April 24, 1964. Almost a year later, on March 1, 1965, Biglang-awa filed a motion in the CFI for execution of the replevin bond. On June 8, 1965, the respondent judge issued an order directing that P550.00 be deducted from the P2,000.00 bond and for a writ of execution to issue. Petitioner filed a motion for reconsideration, arguing the execution was improper under Section 10, Rule 60 of the Rules of Court as there had been no application for damages against the bond and petitioner was never impleaded as a party defendant. The motion was denied by an order dated October 11, 1965. Petitioner then filed this certiorari proceeding.

ISSUE

Whether the respondent judge acted with grave abuse of discretion in issuing the orders for execution against the replevin bond without compliance with the procedure mandated by the Rules of Court for enforcing a surety’s liability.

RULING

Yes. The questioned orders are revoked. The Court held that the lower court overlooked the provision of Section 10, Rule 60, which requires that claims for damages on a bond be made following the procedure in Section 20, Rule 57. This procedure mandates that damages may be awarded only upon application filed before the trial or before appeal is perfected or before judgment becomes executory, with due notice to the creditor and his surety, after a proper hearing, and such award must be included in the final judgment. The Court, citing People’s Surety & Insurance Co., Inc. vs. Aragon, enumerated the requisites: (1) an application showing the right to damages and the amount; (2) notice to the plaintiff and his surety; (3) a hearing if opposed; and (4) inclusion of the award in the judgment. The notification to the surety made almost a year after the Court of Appeals’ judgment became final did not cure the fatal defect of failing to claim damages against the bond before the judgment became executory. The preliminary injunction is made permanent.