Rules Of Court

Section:
Section: 1-12
1-12
Properties exempt from execution (Sec 13)

General Rule: Except as otherwise expressly provided by law, the following property,
and no other, shall be exempt from execution: (See Sec. 13)

Exception: When the property mentioned is the subject of execution because of a

judgment for the recovery of the price or upon a judgment of foreclosure of a
mortgage upon the property
 Within what period should a writ of execution be returned and
to whom?

• To the Court issuing it immediately after

judgment has been satisfied in part or full
Periods:
• If judgment cannot be satisfied in full within 30 days after receipt of the writ, the officer shall
report to the court and state the reason therefor.
• The Officer shall make a report to the court every 30 days on the proceedings taken thereon
until judgment is satisfied in full or effectively expires.
• Returns/periodic reports shall set forth the whole of the proceedings taken, and shall be filed
with the court and copies thereof promptly furnished to the parties.
 What is the lifetime of writ?
• 5 years because “such writ shall continue in
effect during the period within which the
judgment may be enforced by motion” (Sec. 14)
If property levied upon is claimed by any person other than the
judgment obligor or his agent, how will such person protect his
rights? (Sec. 16)
• Remedy of Terceria: He may execute an affidavit of his title or right
of possession over the property. Such affidavit must state the
grounds of such right or title. It shall be served upon the officer
making the levy and a copy thereof upon the judgment obligee.

o Exception: When judgment obligee, on demand of the officer, files a bond approved
by the court to INDEMNIFY the claimant in a sum not less than the value of the
property levied upon
What is the object of such third-party claim?

o Recovery of possession of property seized by the sheriff, as well as damages resulting

from the allegedly wrongful seizure and detention thereof despite the third-party
claim. (Capa vs CA el al., GR No. 160082)
o May be brought against the sheriff and such other parties as may be alleged to have
colluded with the sheriff in the wrongful execution proceedings, such as the judgment
creditor.
What justifies the filing of a third-party claim?

The power of the court to execute its

judgments extends only to the
properties unquestionably belonging
to the judgment debtor.
What other remedy may he resort to?

• Independent separate action to vindicate the claim: He may vindicate his claim
to his property wrongfully levied by filing a proper action that is distinct and
separate from that in which the judgment is being enforced. (Capa vs CA el al.,
GR No. 160082)
• If a separate action is the recourse, Third-party claimant must institute in a
forum of competent jurisdiction an action, distinct and separate from the
action in which the judgment is being enforced, even before or without need
of filing a claim in the court that issued the writ. (Sps Buado vs. CA)
What if the third-party claim is frivolous or spurious?

• The judgment obligee may file his claim for

damages in the same court where the third-party
claimant filed his claim
What if third-party claim is denied?
• Rule: Appeal or petition for certiorari is not the proper remedy
from a denial of a third-party claim. (Serra vs. Rodriguez,
April22, 1974) This is because a third-party claimant is not of
the parties to the action. Hence, he could not, strictly speaking
appeal from the order denying his claim.
 What is the effect of the bond?

• Indemnitor becomes responsible for the continuance of the wrongful

possession and for the sale and conversion of the goods.
• Indemnitor assume the direction and control of sheriff’s future action in
so far as it constitutes a trespass and they become to that extent the
principals and their agent in the transaction. (Ong vs. Tating et al., April
15, 1987)
Sps Boado vs. CA
o Facts: Erlinda and Romulo are married to each other. Erlinda was sued by
Spouses Buado for damages due to a libelous statement. She was held liable for
damages. Levy was made upon her personal properties. But since they were
not enough to answer for the judgment liability, a real property forming part of
Erlinda and Romulo’s conjugal partnership was sold, with Spouses Buado as the
highest bidder. Romulo filed a complaint for annulment of certificate of sale
and damages with preliminary injunction on grounds that his real property was
levied upon without exhausting the personal properties of Erlinda.

o Issue: WoN the husband of the judgment debtor may file an independent action
to protect the conjugal property subject to execution.
What is the difference between a third party
claim and a third party complaint?

Third-Party Claim (Under Rule 39) Third-Party Complaint (Under Rule 6)

Filed by third-party claimant who is a stranger Claim that a defending party may, with leave of
to the principal action where the writ was court, file against a person not a party to the
issued action for contribution, indemnity, subrogation
or any other relief, in respect to his opponent’s
claim

Filed or served or the sheriff enforcing the writ Filed with clerk of court

Filing will discharge sheriff from the duty of Its filing will make the Third-party defendant a
keeping the property to serve the purpose of party to the principal action
the writ
Notice of sale of property of execution under Sec. 15

• Perishable Property
• Other personal
• Real Property
Is there a penalty for selling without
notice? Who may be held liable?

• Yes. An officer selling without notice prescribed in Sec. 15 is liable for

punitive damages in the amount of P5,000 and actual damages to the
injured party
• A person willfully removing or defacing the notice posted, if done before
the sale, or before the satisfaction of judgment if satisfied before the sale is
also liable for punitive and actual damages.
How may the judgment obligor prevent
the sale of property on execution?

At any time before the sale of the property on

execution, he may prevent the sale by paying the
amount required by the execution and the costs
that have been incurred therein.
How shall all sales of property under execution be made?

• At Public Auction
• To the highest bidder
• To start at the exact time fixed by the notice
What happens if, after the sale, there are excess properties
or proceeds of the sale?

• If there are excess properties or proceeds

of the sale, it shall be promptly delivered
to the judgment obligor or his authorized
representative, unless otherwise directed
by the judgment or order of the court.
How shall properties be sold on execution?

-REAL PROPERTIES

-PERSONAL PROPERTIES
Who shall direct the sale on execution of real and personal properties?

• The judgment obligor, if present at the sale,

may direct the order in which property, real or
personal shall be sold, when such property
consists of several known lots or parcels which
can be sold to advantage separately.
What if the purchaser refuses to pay?
• The officer may sell again the property to
the highest bidder, without any liability to
the loss occasioned and may reject
subsequent bid of refusing purchaser.

• Refusing purchaser may be liable for the

amount of the loss with cost and may
punish him for contempt if he refuses to
follow, if the court orders.
What happens when Judgment Obligee is a purchaser?

• -If there are no third-party claimants, and

the amount of the bid is equal to the
amount of his judgement or lower, he does
not need to pay the bid.
• -If the amount of bid is higher than the
amount of his judgement, he needs to pay
the excess amount.
What are the rules for conveyance of personal
property? (Sec. 24 and 25)

CAPABLE OF MANUAL DELIVERY

NOT CAPABLE OF MANUAL DELIVERY