Execution, Satisfaction and Effect of Judgments

(Rule 39)

When execution shall issue; Execution as a matter of right (Sec. 1)

o Execution is a matter of right upon the expiration of the period to
appeal and no appeal was perfected from a judgment or order that
disposes of the action or proceeding (Sec. 1, Rule 39). Once a
judgment becomes final and executory, the prevailing party can have
it executed as a matter of right, and the issuance of a writ of execution
becomes the ministerial duty of the court. Once a decision becomes
final and executory, it is the ministerial duty of the presiding judge to
issue a writ of execution except in certain cases, as when subsequent
events would render execution of judgment unjust (Mangahas vs.
Paredes, GR 157866, Feb. 14, 2007).

The above principles have been consistently applied. Thus, in a

subsequent ruling the Court declared: Once a judgment becomes
final, it is basic that the prevailing party is entitled as a matter of right
to a writ of execution the issuance of which is the trial courts
ministerial duty, compellable by mandamus (Greater Metropolitan
Manila Solid Waste Management Committee vs. Jancom Environmental
Corp., GR 2163663, Jan. 30, 2006).

Judgments and orders become final and executor by operation of law

and not by judicial declaration. The trial court need not even
pronounce the finality of the order as the same becomes final by
operation of law. Its finality becomes a fact when the reglementary
period for appeal lapses, and no appeal is perfected within such period
(Testate of Maria Manuel Vda. De Biascan, 374 SCRA 621; Vlason
Enterprises vs. CA, 310 SCRA 26).

Discretionary execution (Sec. 2)

o The concept of discretionary execution constitutes an exception to the
general rule that a judgment cannot be executed before the lapse of

the period for appeal or during the pendency of an appeal. Under Sec.
1, Rule 39, execution shall issue only as a matter of right upon a
judgment or final order that finally disposes of the action or
proceeding upon the execution of the period to appeal therefrom if no
appeal has been duly perfected.

A discretionary execution is called discretionary precisely because it

is not a matter of right. The execution of a judgment under this
concept is addressed to the discretionary power of the court (Bangkok
Bank Public Company Ltd. vs. Lee, GR 159806, Jan. 29, 2006). Unlike
judgments that are final and executor, a judgment subject to
discretionary execution cannot be insisted upon but simply prayed and
hoped for because a discretionary execution is not a matter of right.

A discretionary execution like an execution pending appeal must be

strictly construed because it is an exception to the general rule. It is
not meant to be availed of routinely because it applies only in
extraordinary circumstances. It should be interpreted only insofar as
the language thereof fairly warrants, and all doubts should be resolved
in favor of the general rule (Planters Products, Inc. vs. CA, GR 106052,
Oct. 22, 1999). Where the execution is not in conformity with the rules,
the execution is null and void (Bangkok Bank vs. Lee, supra.).

Requisites for discretionary execution:

1. There must be a motion filed by the prevailing party with notice to the
adverse party;
2. There must be a hearing of the motion for discretionary execution;
3. There must be good reasons to justify the discretionary execution; and
4. The good reasons must be stated in a special order (Sec. 2, Rule 39).

How a judgment is executed (Sec. 4)

o Judgments in actions for injunction, receivership, accounting and
support, and such other judgments as are now or may hereafter be
declared to be immediately executory, shall be enforceable after their
rendition and shall not be stayed by an appeal taken therefrom, unless
otherwise ordered by the trial court. on appeal therefrom, the
appellate court in its discretion may make an order suspending,
modifying, restoring or granting the injunction, receivership,
accounting, or award of support. The stay of execution shall be upon

such terms as to bond or otherwise as may be considered proper for

the security or protection of the rights of the adverse party.
Judgments that may be altered or modified after becoming final and
executory:
1. Facts and circumstances transpire which render its execution impossible or
unjust;
2. Support;
3. Interlocutory judgment.
Execution by motion or by independent action (Sec. 6)
o A final and executor judgment or order may be executed on motion
within 5 years from the date of its entry. After the lapse of such time,
and before it is barred by the statute of limitations, a judgment may be
enforced by action. The revived judgment may also be enforced by
motion within 5 years from the date of its entry and thereafter by
action before it is barred by the statute of limitations.

Issuance and contents of a writ of execution (Sec. 8)

o The writ of execution shall: (i) issue in the name of the Republic of the
Philippines from the court which granted the motion; (ii) state the
name of the court, the case number and title, the dispositive part of
the subject judgment or order; and (iii) require the sheriff or other
proper officer to whom it is directed to enforce the writ according to its
term, in the manner hereinafter provided:
o

If the execution be against the property of the judgment obligor, to

satisfy the judgment, with interest, out of the real or personal property
of such judgment obligor;

If it be against real or personal property in the hands of personal

representatives, heirs, devisees, legatees, tenants, or trustees of the
judgment obligor, to satisfy the judgment, with interest, out of such
property;

If it be for the sale of real or personal property, to sell such property,

describing it, and apply the proceeds in conformity with the judgment,
the material parts of which shall be recited in the writ of execution;

If it be for the delivery of the possession of real or personal property,

to deliver the possession of the same, describing it, to the party
entitled thereto, and to satisfy any costs, damages, rents, or profits
covered by the judgment out of the personal property of the person

against whom it was rendered, and if sufficient personal property

cannot be found, then out of the real property; and
o

In all cases, the writ of execution shall specifically state the amount of
the interest, costs, damages, rents, or profits due as of the date of the
issuance of the writ, aside from the principal obligation under the
judgment. For this purpose, the motion for execution shall specify the
amounts of the foregoing reliefs sought by the movants.

Execution of judgment for money (Sec. 9)

o In executing a judgment for money, the sheriff shall follow the
following steps:
1. Demand from the judgment obligor the immediate payment of the full
amount stated in the judgment including the lawful fees in cash, certified
check payable to the judgment oblige or any other form of payment
acceptable to him (Sec. 9). In emphasizing this rule, the SC held that in
the execution of a money judgment, the sheriff is required to first make a
demand on the obligor for the immediate payment of the full amount
stated in the writ of execution (Sibulo vs. San Jose, 474 SCRA 464).
2. If the judgment obligor cannot pay all or part of the obligation in cash,
certified check or other mode of payment, the officer shall levy upon the
properties of the judgment obligor. The judgment obligor shall have the
option to choose which property or part thereof may be levied upon. If the
judgment obligor does not exercise the option, the officer shall first levy
on the personal properties, if any, and then on the real properties if the
personal properties are insufficient to answer for the personal judgment
but the sheriff shall sell only so much of the property that is sufficient to
satisfy the judgment and lawful fees (Sec. 9[b]).

Execution of judgment for specific acts (Sec. 10)

o If the judgment requires a person to perform a specific act, said act
must be performed but if the party fails to comply within the specified
time, the court may direct the act to be done by someone at the cost
of the disobedient party and the act when so done shall have the effect
as if done by the party (Sec 10[a]). If the judgment directs a
conveyance of real or personal property, and said property is in the
Philippines, the court in lieu of directing the conveyance thereof, may
by an order divest the title of any party and vest it in others, which

shall have the force and effect of a conveyance executed in due form
of law (Sec. 10[a], Rule 39).

Execution of special judgments (Sec. 11)

o When a judgment requires the performance of any act other than those
mentioned in the two preceding sections, a certified copy of the judgment
shall be attached to the writ of execution and shall be served by the
officer upon the party against whom the same is rendered, or upon any
other person required thereby, or by law, to obey the same, and such
party or person may be punished for contempt if he disobeys such
judgment.

Effect of levy on third persons (Sec. 12)

o The levy on execution shall create a lien in favor of the judgment
oblige over the right, title and interest of the judgment obligor in such
property at the time of the levy, subject to liens and encumbrances
then existing.

Properties exempt from execution (Sec. 13)

There are certain properties exempt from execution enumerated under
Sec. 13, Rule 39:
The judgment obligors family home as provided by law, or the homestead
in which he resides, and the land necessarily used in connection
therewith;
Ordinary tools and implements personally used by him in his trade,
employment, or livelihood;
Three horses, or three cows, or three carabaos, or other beasts of burden,
such as the judgment obligor may select necessarily used by him in his
ordinary occupation;
His necessary clothing and articles for ordinary personal use, excluding
jewelry;
o
1.

2.
3.

4.

5. Household furniture and utensils necessary for housekeeping, and used

for that purpose by the judgment obligor and his family, such as the
judgment obligor may select, of a value not exceeding 100,000 pesos.
6. Provisions for individual or family use sufficient for four months;
7. The professional libraries and equipment of judges, lawyers, physicians,
pharmacists, dentists, engineers, surveyors, clergymen, teachers, and
other professionals, not exceeding 300,000 pesos;
8. One fishing boat and accessories not exceeding the total value of 100,000
pesos owned by a fisherman and by the lawful use of which he earns his
livelihood;
9. So much of the salaries, wages, or earnings of the judgment obligor for his
personal services with 4 months preceding the levy as are necessary for
the support of his family;
10.Lettered gravestones;
11.Monies, benefits, privileges, or annuities accruing or in any manner
growing out of any life insurance;
12.The right to receive legal support, or money or property obtained as such
support, or any pension or gratuity from the government; and
13.Properties specially exempted by law (Sec. 13, Rule 39).

Proceedings where property is claimed by third persons (Sec. 16)

o If the property levied on is claimed by any person other than the
judgment obligor or his agent, and such person makes an affidavit of
his title thereto or right to the possession thereof, stating the grounds
of such right or title, and serves the same upon the officer making the
levy and a copy thereof upon the judgment obligee, the officer shall
not be bound to keep the property, unless such judgment obligee, on
demand of the officer, files a bond approved by the court to indemnify
the third-party claimant in a sum not less than the value of the
property levied on. In case of disagreement as to such value, the same
shall be determined by the court issuing the writ of execution. No claim
for damages for the taking or keeping of the property may be enforced
against the bond unless the action therefor is filed within one hundred
twenty (120) days from the date of the filing of the bond.
o The officer shall not be liable for damages for the taking or keeping of
the property, to any third-party claimant if such bond is filed. Nothing
herein contained shall prevent such claimant or any third person from
vindicating his claim to the property in a separate action, or prevent
the judgment obligee from claiming damages in the same or a

separate action against a third-party claimant who filed a frivolous or

plainly spurious claim.
When the writ of execution is issued in favor of the Republic of the
Philippines, or any officer duly representing it, the filing of such bond
shall not be required, and in case the sheriff or levying officer is sued
for damages as a result of the levy, he shall be represented by the
Solicitor General and if held liable therefor, the actual damages
adjudged by the court shall be paid by the National Treasurer out of
such funds as may be appropriated for the purpose.

Requisites for a claim by a third person:

1. The property is levied;
2. The claimant is a person other than the judgment obligor or his agent;
3. Makes an affidavit of his title thereto or right to the possession thereof
stating the grounds of such right or title; and
4. Serves the same upon the officer making the levy and the judgment
obligee.

Examination of judgments obligor when judgment is unsatisfied (Sec.

36)
o When the return of a writ of execution issued against property of a
judgment obligor, or any one of several obligors in the same judgment,
shows that the judgment remains unsatisfied, in whole or in part, the
judgment obligee, at any time after such return is made, shall be
entitled to an order from the court which rendered the said judgment,
requiring such judgment obligor to appear and be examined
concerning his property and income before such court or before a
commissioner appointed by it, at a specified time and place; and
proceedings may thereupon be had for the application of the property
and income of the judgment obligor towards the satisfaction of the
judgment. But no judgment obligor shall be so required to appear
before a court or commissioner outside the province or city in which
such obligor resides or is found.

Examination of obligor of judgment obligor (Sec. 37)

o When the return of a writ of execution against the property of a
judgment obligor shows that the judgment remains unsatisfied, in

whole or in part, and upon proof to the satisfaction of the court which
issued the writ, that person, corporation, or other juridical entity has
property of such judgment obligor or is indebted to him, the court may,
by an order, require such person, corporation, or other juridical entity,
or any officer or member thereof, to appear before the court or a
commissioner appointed by it, at a time and place within the province
or city where such debtor resides or is found, and be examined
concerning the same. The service of the order shall bind all credits due
the judgment obligor and all money and property of the judgment
obligor in the possession or in control of such person, corporation, or
juridical entity from the time of service; and the court may also require
notice of such proceedings to be given to any party to the action in
such manner as it may deem proper.

Effect of judgment or final orders (Sec. 47)

o In case of a judgment or final order against a specific thing, or in
respect to the probate of a will, or the administration of the estate of a
deceased person, or in respect to the personal, political, or legal
condition or status of a particular person or his relationship to another,
the judgment or final order is conclusive upon the title to the thing, the
will or administration, or the condition, status or relationship of the
person; however, the probate of a will or granting of letters of
administration shall only be prima facie evidence of the truth of the
testator or intestate;
o

In other cases, the judgment or final order is, with respect to the
matter directly adjudged or as to any other matter that could have
been raised in relation thereto, conclusive between the parties and
their successors in interest by title subsequent to the commencement
of the action or special proceeding, litigating for the same thing and
under the same title and in the same capacity; and
In any other litigation between the same parties or their successors in
interest, that only is deemed to have been adjudged in a former
judgment or final order which appears upon its face to have been so
adjudged, or which was actually and necessarily included therein or
necessary thereto.

Enforcement and effect of foreign judgments or final orders (Sec. 48)

In case of a judgment or final order upon a specific thing, the judgment

or final order is conclusive upon the title to the thing; and

In case of a judgment or final order against a person, the judgment or

final order is presumptive evidence of a right as between the parties
and their successors in interest by a subsequent title. In either case,
the judgment or final order may be repelled by evidence of a want of
jurisdiction, want of notice to the party, collusion, fraud, or clear
mistake of law or fact