GR L 43236; (December, 1989) (Digest)
G.R. No. L-43236. December 20, 1989.
OLYMPIA INTERNATIONAL, INC., petitioner, vs. THE HONORABLE COURT OF APPEALS, ALPHA INSURANCE & SURETY CO., INC., and JUDGE JOSE C. CAMPOS, JR., respondents.
FACTS
Petitioner Olympia International, Inc. filed a replevin suit (Civil Case No. 2757-P) against Alpha Insurance & Surety Co., Inc. for the recovery of typewriters due to alleged non-payment. The trial court issued a writ of replevin, and the typewriters were seized and delivered to Olympia. The case proceeded, but on December 15, 1972, the trial court, upon the parties’ joint motion stating they would settle amicably, dismissed the case without prejudice. When settlement negotiations failed, Olympia moved to revive the case. The trial court initially granted the revival but, upon Alpha’s manifestation that the matter was before military authorities, reinstated the dismissal order on January 16, 1974, now stating the dismissal was “with prejudice.” Neither party appealed this order.
Over a year and a half later, in October 1975, Alpha filed a motion in the trial court to cancel the writ of replevin, arguing that since the case was dismissed without a judgment on the merits confirming Olympia’s right, the provisional writ should be dissolved. The trial court granted the motion. Olympia challenged this order via certiorari in the Court of Appeals, which dismissed the petition. Olympia then elevated the case to the Supreme Court.
ISSUE
Whether the trial court acted with grave abuse of discretion in granting Alpha’s motion to cancel the writ of replevin after the dismissal of the main case.
RULING
The Supreme Court denied the petition and upheld the cancellation of the writ. The legal logic is anchored on the provisional and ancillary nature of a writ of replevin. A writ of replevin is a provisional remedy; its efficacy is entirely dependent on the outcome of the main action. When the main case is dismissed, the writ loses its legal foundation and must be dissolved. The dismissal of the case, whether with or without prejudice, effectively nullifies the provisional relief because no final judgment was rendered adjudging Olympia as the prevailing party entitled to possession.
The Court further ruled that the trial court retained jurisdiction to order the cancellation. The dismissal order of December 15, 1972, having become final and executory, could be enforced by motion within five years under Section 6, Rule 39 of the Rules of Court. The cancellation was a necessary consequence of carrying that final dismissal order into effect. The parties were to be restored to their pre-litigation status. Olympia’s claim of unjust enrichment was unavailing, as Alpha had consistently denied liability, and Olympia’s failure to prosecute its claim to a final judgment precluded it from retaining the property seized under the provisional writ. The commencement of an action stops the prescriptive period, but its dismissal leaves the parties as if no action was filed, causing the period to resume.