SUPREME COURT REPORTS ANNOTATED VOLUME 582 11/13/23, 2:48 AM

Petition partly granted, judgment affirmed with

modification.

Notes.·Piece-rate employees are not entitled to service

incentive leave pay as well as holiday pay even if they are
entitled to other benefits like COLA and 13th month pay.
(Mark Roche International vs. National Labor Relations
Commission, 313 SCRA 356 [1999])
The divisor assumes an important role in determining
whether or not holiday pay is already included in the
monthly paid employeeÊs salary and in the computation of
his daily rate. (Leyte IV Electric Cooperative, Inc. vs. Leyeco
IV Employees Union-ALU, 537 SCRA 154 [2007])
··o0o··

G.R. Nos. 174256-57. March 25, 2009.*

GEOLOGISTICS, INC., (formerly LEP International

Philippines, Inc.), petitioner, vs. GATEWAY
ELECTRONICS CORPORATION and FIRST LEPANTO
TAISHO INSURANCE, CORPORATION, respondents.

Appeals; Execution Pending Appeal; Words and Phrases; The

rule on execution pending appeal, which is now termed discretionary
execution under Rule 39, Section 2 of the Rules of Court, must be
strictly construed being an exception to the general rule.·The rule
on execution pending appeal, which is now termed discretionary
execution under Rule 39, Section 2 of the Rules of Court, must be
strictly construed being an exception to the general rule.
Discretionary execution of appealed judgments may be allowed
upon concurrence of the following requisites: (a) there must be a
motion by the prevailing party with notice to the adverse party; (b)
there must be a good reason for execution pending appeal; and (c)
the good reason must be

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* SECOND DIVISION.

435

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Geologistic, Inc. vs. Gateway Electronics Corporation

stated in a special order. The yardstick remains the presence or the

absence of good reasons consisting of exceptional circumstances of
such urgency as to outweigh the injury or damage that the losing
party may suffer, should the appealed judgment be reversed later.
Since the execution of a judgment pending appeal is an exception to
the general rule, the existence of good reasons is essential.
Same; Same; The determination of what is a good reason must,
necessarily, be addressed to the sound discretion of the trial court·
the issuance of the writ of execution must necessarily be controlled by
the judgment of the judge in accordance with his own conscience and
by a sense of justice and equity, free from the control of anotherÊs
judgment or conscience.·The Rules of Court does not state,
enumerate, or give examples of „good reasons‰ to justify execution.
The determination of what is a good reason must, necessarily, be
addressed to the sound discretion of the trial court. In other words,
the issuance of the writ of execution must necessarily be controlled
by the judgment of the judge in accordance with his own conscience
and by a sense of justice and equity, free from the control of
anotherÊs judgment or conscience. It must be so for discretion
implies the absence of a hard and fast rule.
Same; Same; The fact alone that in the certiorari proceeding,
the Court of Appeals also found the defendant to have admitted its
liability for a different amount is not automatically considered as a
„good reason‰ to order discretionary execution.·The grounds cited
by the RTC in allowing the discretionary execution of its decision
cannot be considered „good reasons.‰ The alleged admission by
respondent Gateway of its liability is more apparent than real
because the issue of liability is precisely the reason the case was
elevated on appeal. The exact amount of respondent GatewayÊs
liability to petitioner remains under dispute even if, as claimed by

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petitioner, the evidence on record indicates that respondent

GatewayÊs obligation is almost a certainty. Precisely the appeal
process must be allowed to take its course all the way to the finality
of judgment to determine once and for all the incidents of the suit.
The fact alone that in the certiorari proceeding, the Court of
Appeals also found respondent Gateway to have admitted its
liability for a different amount is not automatically considered as a
„good reason‰ to order discretionary exe-

436

436 SUPREME COURT REPORTS ANNOTATED

Geologistic, Inc. vs. Gateway Electronics Corporation

cution. Petitioner is preempting the Court of AppealsÊ review of the

RTC decision in insisting that in the certiorari proceeding, the
Court of Appeals should have simply ordered the discretionary
execution of the amount which it found to have been admitted by
respondent Gateway.
Same; Same; Certiorari; Motions for Reconsideration; As a
general rule, a petition for certiorari before a higher court will not
prosper unless the inferior court has not been given, through a
motion for reconsideration, a chance to correct the errors imputed to
it; Exceptions.·As a general rule, a petition for certiorari before a
higher court will not prosper unless the inferior court has not been
given, through a motion for reconsideration, a chance to correct the
errors imputed to it. This rule, though, has certain exceptions: (1)
when the issue raised is purely of law, (2) when public interest is
involved, or (3) in case of urgency. Respondent GatewayÊs
explanation on this aspect, which the Court of Appeals found
sufficient, is that the assailed order of discretionary execution was
already being implemented, thereby leaving it with no plain, speedy
and adequate remedy other than to file the petition for certiorari,
prohibition and mandamus before the Court of Appeals.
Considering the urgency of the matter, the Court finds that under
the circumstances of the case, the filing of a motion for
reconsideration was properly dispensed with, more so since the
issue of validity of the execution pending appeal is a pure question
of law.

PETITION for review on certiorari of an amended decision

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of the Court of Appeals.

The facts are stated in the opinion of the Court.
Joseph Jason M. Natividad for petitioner.
Balane, Tamase, Alampay Law Offices for respondent
Gateway Electronics Corporation.
R.A. Quiroz Law Offices for respondent First Lepanto-
Taisho Insurance Corporation.

TINGA, J.:

This is a petition for review on certiorari,1 praying for

the

_______________
1 Rollo, pp. 16-41.

437

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Geologistic, Inc. vs. Gateway Electronics Corporation

reversal of the amended decision2 of the Court of Appeals

in CA-G.R. SP No. 68465 and CA-G.R. SP No. 69441 and
the reinstatement of the order3 of the Regional Trial Court
(RTC), Branch 260, Parañaque City issuing a writ of
partial execution.
As culled from the records of the case, the following
factual antecedents appear:
Petitioner Geologistics, Inc., formerly known as LEP
International Philippines, Inc., is a domestic corporation
engaged in the business of freight forwarding and customs
brokerage. On 17 October 1997, petitioner instituted an
action for the recovery of sum of money against respondent
Gateway Electronic Corporation (respondent Gateway)
before the RTC of Parañaque.4 The case was docketed as
Civil Case No. 97-0496 and raffled to the sala of Judge
Helen Bautista-Ricafort of Branch 260. Petitioner prayed
for a judgment award in the amount of P4,769,954.32,
representing the fees, including interest owed by
respondent Gateway for petitionerÊs services as customs
broker and freight forwarder.
The RTC subsequently issued a writ of preliminary

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attachment on the properties of respondent Gateway,

prompting the latter to move for its dissolution.
Respondent First Lepanto-Taisho Insurance Corporation
(respondent surety) filed a counter-bond in the amount of
P5 million to secure the payment of any judgment that
petitioner could recover from respondent Gateway.5
After hearing on the merits, the RTC rendered a
Decision6 dated 19 October 2001, the dispositive portion of
which reads:

_______________
2 Dated 17 August 2006 and penned by Edgardo P. Cruz, J., Chairman
of the Special Former First Division, and concurred in by Rosmari D.
Carandang and Jose C. Mendoza, JJ.; id., at pp. 8-13.
3 Id., at p. 84; Penned by Judge Helen Bautista-Ricafort.
4 CA Rollo (CA-G.R. SP No. 68465) pp. 60-62.
5 Id., at pp. 130-132.
6 Id., at pp. 26-28.

438

438 SUPREME COURT REPORTS ANNOTATED

Geologistic, Inc. vs. Gateway Electronics Corporation

„WHEREFORE, judgment is hereby rendered ordering

defendant to pay the plaintiff:
1. The sum of Four Million Seven Hundred Sixty Nine
Thousand Nine Hundred Fifty Four and Thirty Two Centavos
(P4,769,954.32) Pesos, plus the stipulated three (3%) interest
per month computes starting August 1, 1997 until the same is
fully paid;
2. The amount of Two Hundred Thousand (P200,000.00)
Pesos as exemplary damages for wanton and fraudulent acts
of defendants, to serve as an example for the public good and
to deter other from doing same acts.
3. The amount of One Million One Hundred Ninety Two
Thousand Four Hundred Eighty Eight pesos (P1,192,488.00)
representing the stipulated Twenty-Five percent (25%)
attorneyÊs fees; and,
4. Costs.
Accordingly, the defendantÊs counterclaim is hereby DISMISSED.

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SO ORDERED.‰7

Petitioner filed a motion for execution pending appeal on

30 October 2001 which was opposed by respondent
Gateway. The motion alleged the following „good reasons‰
to execute the RTC decision pending appeal: (1) respondent
Gateway was guilty of fraud in contracting its obligations
to petitioner; (2) the appeal was interposed to delay the
case; (3) respondent Gateway had ceased operations and
was in imminent danger of insolvency; and (4) the counter-
bond posted by respondent Gateway could be the subject of
execution.8
After petitionerÊs filing of a reply to respondent
GatewayÊs opposition, the motion was submitted for
resolution. Respondent Gateway also filed a notice of
appeal on 07 November 2001.9

_______________
7 Id., at pp. 27-28.
8 Id., at pp. 455-58.
9 Id., at p. 29.

439

VOL. 582, March 25, 2009 439

Geologistic, Inc. vs. Gateway Electronics Corporation

In an Order dated 10 December 2001,10 Judge Helen

Bautista-Ricafort granted petitionerÊs motion for execution
pending appeal because respondent Gateway had admitted
its principal obligation to petitioner and the case had been
pending since 1997.11 On 18 December 2001, Judge Ricafort
issued a writ of execution, ordering the sheriff to execute
respondent GatewayÊs counter-bond issued by respondent
surety up to the amount of P4,769,954.32.12 The writ of
execution, directing respondent surety to comply with the
order of the RTC within five days from notification, was
served on 09 January 2002.13
Respondent surety filed a motion to set aside the 10
December 2001 Order of Judge Ricafort and to quash the
writ of execution, but the motion was denied per Order
dated 19 February 2002. In the same order, respondent

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surety was directed to pay petitioner the sum of

P4,769,954.32 „without prejudice to the right of
reimbursement thereafter‰ from respondent Gateway.14
On 04 March 2002, Sheriff Elosoceje implemented the
writ of execution through the garnishment of respondent
suretyÊs bank account with Banco de Oro. On 18 March
2002, Sheriff Elosoceje received the garnished amount in
the form of a managerÊs check which was then turned over
to petitionerÊs counsel.15
Meanwhile, both respondents filed separate Rule 65
petitions before the Court of Appeals against Judge
Ricafort, Atty. Clement Boloy, in his capacity as Ex-Officio
Sheriff, Lucas Elosoceje, in his capacity as Sheriff, and
herein petitioner.

_______________
10 Id., at p. 43.
11 Rollo, p. 84.
12 Id., at pp. 85-86.
13 Id., at p. 87.
14 CA Rollo (CA-G.R. SP No. 68465) p. 192.
15 Id., at pp. 192-193.

440

440 SUPREME COURT REPORTS ANNOTATED

Geologistic, Inc. vs. Gateway Electronics Corporation

In the petition for certiorari, prohibition and mandamus

(with urgent prayer for the issuance of a temporary
restraining order and/or writ of preliminary injunction),16
docketed as CA-G.R. SP No. 68465, respondent Gateway
advanced the following arguments: (1) no good reason
existed to justify execution pending appeal especially
considering the fact that the case had already been
elevated on appeal; (2) the ground cited in the assailed
order was not supported by the evidence on record; and (3)
a writ of partial execution can implement only a partial
judgment.17
Respondent GatewayÊs petition was initially dismissed
by the appellate court, but upon motion for reconsideration,

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the appellate court ordered its reinstatement and the

issuance of a temporary restraining order (TRO) against
the enforcement of the RTCÊs Decision and the Order dated
10 December 2001.18
Respondent suretyÊs petition for certiorari, docketed as
CA-G.R. SP No. 69441, sought the nullification of the RTC
orders issued on 10 December 2001 and 19 February 2002,
the quashal of the writ of execution, the issuance of a TRO
and a writ of preliminary injunction to enjoin the
implementation of the writ of execution and the return of
the garnished amount to respondent surety.19
During the pendency of the two petitions, the Board of
Directors of respondent Gateway resolved on 18 October
2004 to file a petition for declaration of voluntary
insolvency.20
On 28 February 2005, the Court of Appeals (First
Division) rendered a Decision21 in CA-G.R. SP No. 68465,
granting re-

_______________
16 Id., at pp. 5-20.
17 Id., at pp. 12-18.
18 Id., at p. 185.
19 CA Rollo (CA-G.R. SP No. 69441) pp. 24-25.
20 Rollo, pp. 523-525.
21 CA Rollo (CA-G.R. SP No. 69441) p. 179.

441

VOL. 582, March 25, 2009 441

Geologistic, Inc. vs. Gateway Electronics Corporation

spondent GatewayÊs petition. The dispositive portion of the

decision reads:

„WHEREFORE, the petition is GRANTED. The order dated

December 10, 2001 of the Regional Trial Court of Parañaque City
(Branch 260) and the writ of execution issued pursuant thereto are
hereby ANNULLED and SET ASIDE. Respondent LEP
International Phils., Inc. is hereby ordered to return the amount of
P4,769,954.32 to First Lepanto-Taisho Insurance CorporationÊs
deposit account.

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SO ORDERED.‰22

Subsequently, on 31 March 2005, the Court of Appeals

(Fifth Division) promulgated a Decision23 in CA-G.R. SP
No. 69441, adopting the prior decision in CA-G.R. SP No.
68465. The dispositive portion of the Decision states:

„WHEREFORE, the petition is partly granted and the Order

dated February 19, 2002 is nullified. The parties are ordered to
comply with the Decision dated February 28, 2005 in CA-G.R. SP
No. 68465, which disposed of the case as follows:
In other words, private respondent must return to First
Lepanto (petitioner herein) the amount garnished by the
sheriff pursuant to the notice of garnishment, otherwise,
petitioner would be compelled to reimburse First Lepanto for
the same.
WHEREFORE, the petition is GRANTED. The Order
dated December 10, 2001 of the Regional Trial Court of
Parañaque City (Branch 260) and the writ of execution issued
pursuant thereto are hereby ANNULLED and SET ASIDE.
Respondent LEP International Phils., Inc. is hereby ordered
to return the amount of P4,769,954.32 to First Lepanto-
Taisho Insurance CorporationÊs deposit account.
SO ORDERED.‰
Pursuant to Section 3, Rule III of the 2002 Internal Rules of the
Court of Appeals, as amended, subject to the conformity of the

_______________
22 Id., at p. 185.
23 CA Rollo (CA-G.R. SP No. 69441), pp. 129-139.

442

442 SUPREME COURT REPORTS ANNOTATED

Geologistic, Inc. vs. Gateway Electronics Corporation

Justice who penned the aforequoted Decision, let this case be

consolidated with CA-G.R. SP No. 68465.
SO ORDERED.‰24

Petitioner moved for reconsideration25 of the decision in

CA-G.R. SP No. 68465 while respondent surety sought to
modify the decision in CA-G.R. SP No. 69441 to include an

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award of interest on the amount ordered returned to it by

the appellate court.26
On 17 August 2006, the Court of Appeals promulgated
the assailed consolidated amended decision, the dispositive
portion of which reads:

„WHEREFORE, premises considered, this Court resolves as

follows:
1. In CA-G.R. SP No. 68465·
For lack of merit, private respondentÊs motion for reconsideration
of the decision dated February 28, 2005 is DENIED. However, the
dispositive portion of said decision is MODIFIED, such that it shall
now read:
„WHEREFORE, the petition is GRANTED. The order
dated December 10, 2001 of the Regional Trial Court of
Parañaque City (Branch 260) and the writ of execution issued
pursuant thereto are hereby ANNULLED and SET ASIDE.
SO ORDERED.‰
2. In CA-G.R. SP No. 69441·
PetitionerÊs motion for partial reconsideration of the decision
dated March 31, 2005 is GRANTED. The first paragraph of the
dispositive portion of said decision shall now read:
„WHEREFORE, the petition is partly granted and the
Order dated February 19, 2002 is nullified. Respondent LEP
International Phils., Inc. is hereby ordered to return the

_______________
24 Id., at pp. 138-139.
25 CA Rollo (CA-G.R. SP No. 68465) pp. 212-228.
26 CA Rollo (CA-G.R SP No. 69441) p. 148; Motion for Partial
Reconsideration of First Lepanto-Taisho Insurance Corporation.

443

VOL. 582, March 25, 2009 443

Geologistic, Inc. vs. Gateway Electronics Corporation

amount of P4,769,954.32 to petitioner First Lepanto-Taisho

Insurance CorporationÊs deposit account plus interest thereon
at the rate of 6% per annum from filing of the petition until
finality of this judgment, after which the interest shall be at
the rate of 12% per annum until said amount is fully

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deposited.‰
For lack of merit, the motion for reconsideration filed by
respondent LEP International Phils., Inc. is DENIED.
SO ORDERED.‰27

Hence, the instant petition, arguing that the Court of

AppealsÊ decision erred in holding that no good reasons
existed to warrant the discretionary execution of the RTC
decision and that it would render nugatory the RTC
judgment to the prejudice of petitioner. The petition also
assails the appellate courtÊs ruling that the filing of a
motion for reconsideration was not a condition precedent to
the filing of respondentsÊ petition for certiorari. Last, the
petition reiterates the claim that petitioner was neither in
possession nor in control of the goods subject of respondent
GatewayÊs counterclaim.28
Respondent Gateway filed a motion, praying that it be
excused from filing a comment on the petition on the
ground that it had filed a petition for voluntary insolvency
before the RTC of Imus, Cavite, where an order was issued
declaring respondent Gateway as insolvent and forbidding
the transfer of its property. Petitioner did not oppose
respondent GatewayÊs motion and in a Resolution dated 26
September 2007, the Court granted said motion.29
At the core of the instant petition is the question of
whether a sufficient ground exists warranting the
discretionary execution of the RTC decision. In granting
petitionerÊs motion for execution pending appeal, the RTC
gave weight to the fact that the case had been pending
since 1997 and the alleged admission of liability on the part
of respondent Gate-

_______________
27 Rollo, pp. 12-13.
28 Id., at p. 25.
29 Id., at pp. 536-537.

444

444 SUPREME COURT REPORTS ANNOTATED

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way, which the Court of Appeals found to be unsupported

by the evidence on record. Petitioner now counters that
only the exact amount of liability is disputed but not
respondentÊs admission of liability. It claims that in the
certiorari proceeding, even the Court of Appeals
acknowledged that respondent Gateway did admit owing
petitioner the principal amount of P4,138,864.70 and not
P4,769,954.32 which was the amount garnished pursuant
to the writ of execution and the dispositive portion of the
RTC decision.
The rule on execution pending appeal, which is now
termed discretionary execution under Rule 39, Section 2 of
the Rules of Court, must be strictly construed being an
exception to the general rule.30 Discretionary execution of
appealed judgments may be allowed upon concurrence of
the following requisites: (a) there must be a motion by the
prevailing party with notice to the adverse party; (b) there
must be a good reason for execution pending appeal; and (c)
the good reason must be stated in a special order. The
yardstick remains the presence or the absence of good
reasons consisting of exceptional circumstances of such
urgency as to outweigh the injury or damage that the
losing party may suffer, should the appealed judgment be
reversed later. Since the execution of a judgment pending
appeal is an exception to the general rule, the existence of
good reasons is essential.31
The Rules of Court does not state, enumerate, or give
examples of „good reasons‰ to justify execution. The
determination of what is a good reason must, necessarily,
be addressed

_______________
30 Planters Products Inc. v. Court of Appeals, 375 Phil. 615, 624; 317
SCRA 195, 204 (1999).
31 Manacop v. Equitable PCI Bank, G.R. Nos. 162814-17, 25 August
2005, 468 SCRA 256, citing Maceda, Jr. v. Development Bank of the
Philippines, 372 Phil. 107, 117; 313 SCRA 233, 242 (1999); Diesel
Construction Company, Inc. v. Jollibee Foods Corp., 380 Phil. 813, 829;
323 SCRA 844, 859 (2000); Flexo Manufacturing Corporation v.
Columbus Foods, Inc. and Pacific Meat Company, Inc., G.R. No. 164857,
11 April 2005, 455 SCRA 272.

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to the sound discretion of the trial court. In other words,

the issuance of the writ of execution must necessarily be
controlled by the judgment of the judge in accordance with
his own conscience and by a sense of justice and equity, free
from the control of anotherÊs judgment or conscience. It
must be so for discretion implies the absence of a hard and
fast rule.32
The grounds cited by the RTC in allowing the
discretionary execution of its decision cannot be considered
„good reasons.‰ The alleged admission by respondent
Gateway of its liability is more apparent than real because
the issue of liability is precisely the reason the case was
elevated on appeal. The exact amount of respondent
GatewayÊs liability to petitioner remains under dispute
even if, as claimed by petitioner, the evidence on record
indicates that respondent GatewayÊs obligation is almost a
certainty. Precisely the appeal process must be allowed to
take its course all the way to the finality of judgment to
determine once and for all the incidents of the suit.
The fact alone that in the certiorari proceeding, the
Court of Appeals also found respondent Gateway to have
admitted its liability for a different amount is not
automatically considered as a „good reason‰ to order
discretionary execution. Petitioner is preempting the Court
of AppealsÊ review of the RTC decision in insisting that in
the certiorari proceeding, the Court of Appeals should have
simply ordered the discretionary execution of the amount
which it found to have been admitted by respondent
Gateway.
Another factor that militates against petitionerÊs claim
that any judgment in its favor may become illusory if
execution pending appeal is not allowed is the fact that
petitioner is considered a secured creditor on account of the
counterbond posted by respondent surety. The said
counterbond, posted as

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32 Far East Bank and Trust Co. v. Toh, Sr., 452 Phil. 734, 742-743; 404
SCRA 590, 596 (2003), citing City of Manila v. Court of Appeals, G.R. No.
L-35253, 26 July 1976, 72 SCRA 98, 103-104.

446

446 SUPREME COURT REPORTS ANNOTATED

Geologistic, Inc. vs. Gateway Electronics Corporation

it was to discharge the attachment in favor of petitioner,

serves as security for the payment of any judgment that
petitioner may recover in the instant action.33 Following its
argument that respondent GatewayÊs obligation to
petitioner is almost a certainty, petitioner will not find it
hard to recover its monetary claim once final judgment is
rendered in its favor because petitioner can certainly
garnish the counterbond.
As regards petitionerÊs assigned error that there was no
basis for the Court of Appeals to declare that respondent
GatewayÊs principal liability would be offset by its
counterclaim for the recovery of the goods allegedly held by
petitioner, suffice it to say that this controversy should be
properly ventilated on appeal. All the more, petitionerÊs
prayer for execution pending appeal should be denied
because there are questions in the instant controversy,
other than the issue of respondent GatewayÊs principal
liability, that need to be resolved on appeal. Thus, the order
allowing execution pending appeal would render nugatory
the decision of the Court of Appeals on the appeal.
Petitioner argues that the Court of Appeals erred in
holding that the filing of a motion for reconsideration was
not a requirement for the appellate court to acquire
jurisdiction over the petition for certiorari, prohibition and
mandamus.
As a general rule, a petition for certiorari before a higher
court will not prosper unless the inferior court has not been
given, through a motion for reconsideration, a chance to
correct the errors imputed to it. This rule, though, has
certain

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33 Rules of Court, Rule 57, Section 12 states: Discharge of attachment
upon giving counterbond.·After a writ of attachment has been enforced,
the party whose property has been attached, or the person appearing on
his behalf, may move for the discharge of the attachment wholly or in
part on the security given. x x x In either case, the cash deposit or
the counter-bond shall secure the payment of any judgment that
the attaching party may recover in the action. x x x (Emphasis
supplied.)

447

VOL. 582, March 25, 2009 447

Geologistic, Inc. vs. Gateway Electronics Corporation

exceptions: (1) when the issue raised is purely of law, (2)

when public interest is involved, or (3) in case of urgency.34
Respondent GatewayÊs explanation on this aspect, which
the Court of Appeals found sufficient, is that the assailed
order of discretionary execution was already being
implemented, thereby leaving it with no plain, speedy and
adequate remedy other than to file the petition for
certiorari, prohibition and mandamus before the Court of
Appeals. Considering the urgency of the matter, the Court
finds that under the circumstances of the case, the filing of
a motion for reconsideration was properly dispensed with,
more so since the issue of validity of the execution pending
appeal is a pure question of law.
For respondent suretyÊs part, it did observe the
requirement of a motion for reconsideration. Before filing
the petition for certiorari before the Court of Appeals,
respondent surety filed a motion to set aside the 10
December 2001 Order of Judge Ricafort and to quash the
writ of execution. However, the RTC denied the motion,
prompting respondent surety to elevate the matter to the
Court of Appeals via a petition for certiorari, which was the
only plain speedy and adequate remedy available to it.
Thus, the Court sustains the lifting of the garnishment
on the amount of P4,769,954.32 under respondent suretyÊs
deposit account in Banco de Oro. However, the Court of
AppealsÊ award of interest on said amount has no legal or
factual basis and must be deleted. Notably, said amount

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was garnished by virtue of a court order. Petitioner cannot

be faulted and be held liable for the errors committed by
the RTC and the sheriffs concerned in the discretionary
execution.35

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34 Government of the United States of America v. Purganan, 438 Phil.
417, 437; 389 SCRA 623, 650 (2002).
35 See Solidbank Corporation v. Court of Appeals, 428 Phil. 949; 379
SCRA 159 (2002).

448

448 SUPREME COURT REPORTS ANNOTATED

Geologistic, Inc. vs. Gateway Electronics Corporation

WHEREFORE, the instant petition for review on

certiorari is DENIED. The Amended Decision dated 17
August 2006 of the Court of Appeals in CA-G.R. SP No.
68465 and CA-G.R. SP No. 69441 is AFFIRMED with the
MODIFICATION that the interest imposed on the amount
to be refunded to respondent First Lepanto-Taisho
Insurance Corporation is DELETED.
SO ORDERED.

Austria-Martinez,** Corona,*** Velasco, Jr. and Brion,

JJ., concur.
Quisumbing (J., Chairperson), On Official Leave.

Petition denied, amended decision affirmed with

modification.

Notes.·The COMELEC, to whom a decision rendered

by the MTCC has been appealed, has primary jurisdiction
on the petition for certiorari to annul the execution pending
appeal granted by the MTCC. (Beso vs. Aballe, 326 SCRA
100 [2000])
Execution pending appeal in an ejectment case is
premature where the defendant has already filed a
supersedeas bond and the monthly rental for the current
month. (Sarmiento vs. Zaratan, 514 SCRA 246 [2007])
··o0o··

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** Additional member per res dated 10 March 2009 in lieu of J.

Quisumbing who is on official business.
*** Additional member per Special Order No. 600 in lieu of J. Carpio-
Morales who is on official business.

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