Section 1: Enforcing Final Judgments and Orders
Once a court case is fully resolved by a judgment or final order, and the time to appeal has ended without an appeal being properly filed, the winning party has an automatic right to have the judgment enforced. This is done by filing a motion.
If an appeal was properly filed and has been finally decided, the party entitled to the judgment (the "judgment obligee" or winner) can immediately ask the original court to enforce it. To do this, they must file a motion and include certified true copies of the judgment(s) or final order(s) they want to enforce, along with proof that these have been officially recorded. The other party (the "adverse party") must be notified.
In the interest of justice, the appellate court handling the appeal can also, upon request, instruct the original court to issue the order to enforce the judgment (the "writ of execution").
Section 2: Early Enforcement of Judgments (Discretionary Execution)
- Enforcing a Judgment or Final Order While an Appeal is Pending: The winning party can ask the trial court to enforce a judgment or final order even before the appeal period is over, or while an appeal is ongoing. This request (a motion) must notify the other party. The trial court can grant this if it still has control over the case and has the original case records or the appeal records. If the trial court no longer has control, this motion for early enforcement can be filed with the appellate court. Early enforcement is only allowed for compelling reasons, which must be stated in a special court order after a proper hearing.
- Enforcing Multiple, Separate, or Partial Judgments: Judgments that resolve only some parts of a case (several, separate, or partial judgments) can be enforced early under the same conditions as a final judgment pending appeal.
Section 3: Pausing Early Enforcement (Stay of Discretionary Execution)
If early enforcement (as described in Section 2) is ordered, it can be stopped. The party against whom the judgment is being enforced can file a "supersedeas bond" (a special type of financial guarantee). If the court approves this bond as sufficient, the enforcement will be paused. This bond guarantees that the judgment or order will be fulfilled if it is ultimately upheld, either fully or partially. If necessary, legal action can be taken against this bond by filing a motion and notifying the surety (the issuer of the bond).
Section 4: Judgments Enforceable Immediately, Not Delayed by Appeal
Certain types of judgments are put into effect immediately after they are issued and are not delayed by an appeal, unless the trial court orders otherwise. These include judgments for: * Injunctions (court orders to do or stop doing something) * Receivership (appointing someone to manage property) * Accounting (requiring someone to show financial records) * Support (like child or spousal support) * Other judgments that current or future laws declare to be immediately enforceable.
When these types of judgments are appealed, the appellate court has the discretion to issue orders that suspend, change, reinstate, or grant the injunction, receivership, accounting, or support award.
Any pause in enforcing these judgments will be based on terms, such as requiring a bond or other conditions, that the court deems appropriate to protect the rights of the other party.
Section 5: What Happens if an Enforced Judgment is Later Reversed
If a judgment that has already been enforced is later completely or partially reversed, or annulled (cancelled) on appeal or through other legal means, the trial court can, upon request, issue orders for restitution (returning what was taken) or for payment of damages, as fairness and justice require in the specific situation.
Section 6: Enforcing Judgments: By Motion or by Separate Lawsuit
A final and enforceable judgment or order can be enforced by filing a motion within five years from the date it was officially recorded. After five years, but before the time limit set by law (the statute of limitations) runs out, the judgment must be enforced by filing a new lawsuit to "revive" it. This revived judgment can then be enforced by motion within five years of its own recording date, and after that, by another lawsuit before the statute of limitations bars it.
Section 7: Enforcing Judgments if a Party Dies
If a party to the judgment dies, enforcement can proceed as follows:
- If the judgment winner (obligee) dies: Their executor, administrator, or successor in interest (someone who legally takes their place) can apply for enforcement.
- If the judgment debtor (obligor) dies and the judgment is for recovery of real or personal property, or to enforce a lien on such property: Enforcement can proceed against their executor, administrator, or successor in interest.
- If the judgment debtor (obligor) dies after their property has already been seized (levied upon) for execution: That property can still be sold to satisfy the judgment. The officer conducting the sale must give any leftover money to the debtor's executor or administrator.
Section 8: Issuing the Writ of Execution: Form and Content
The writ of execution (the court order to enforce the judgment) must:
- Be issued in the name of the Republic of the Philippines by the court that approved the motion for execution.
- State the name of the court, the case number and title, and the key part of the judgment or order that needs to be enforced (the "dispositive part").
- Require the sheriff or other authorized officer to enforce the writ according to its terms, as described below:
- If enforcing against the judgment debtor's property: The writ will direct the officer to satisfy the judgment amount, plus interest, using the debtor's real or personal property.
- If enforcing against real or personal property held by the debtor's personal representatives, heirs, devisees, legatees, tenants, or trustees: The writ will direct the officer to satisfy the judgment, plus interest, from that specific property.
- If the judgment is for the sale of real or personal property: The writ will direct the officer to sell the described property and use the money as the judgment dictates. The important parts of the judgment must be included in the writ.
- If the judgment is for delivering possession of real or personal property: The writ will direct the officer to deliver possession of the described property to the entitled party. It will also direct the officer to collect any costs, damages, rents, or profits awarded in the judgment from the personal property of the person who lost. If there isn't enough personal property, then real property can be used.
- In all cases: The writ must clearly state the amount of interest, costs, damages, rents, or profits due when the writ is issued, in addition to the main amount owed under the judgment. The motion for execution should specify these amounts.
Section 9: How to Enforce Judgments for Money
- Immediate Payment on Demand: The officer must enforce a money judgment by demanding that the judgment debtor immediately pay the full amount stated in the writ of execution, plus all lawful fees. The debtor must pay in cash, certified bank check payable to the judgment winner, or any other form of payment the winner accepts. Payment should be made directly to the winner or their authorized representative if present, with a proper receipt. The lawful fees should be given to the executing sheriff (with a receipt), who must turn them over to the court clerk on the same day. If the winner or their representative isn't there to receive payment, the debtor gives the payment to the executing sheriff. The sheriff must turn over all collected amounts to the court clerk that same day. If that's not feasible, the sheriff must deposit the amounts into a fiduciary account at the nearest government bank for the Regional Trial Court of that area. The court clerk will then arrange for the money to be sent to the court that issued the writ. That court's clerk will then give the payment to the judgment winner. Any excess amount will be returned to the judgment debtor, and the lawful fees will be kept by the court clerk for proper handling as required by law. The executing sheriff must never ask for a check to be made payable to them personally.
- Satisfaction by Seizing Property (Levy): If the judgment debtor cannot pay all or part of the debt in cash, certified bank check, or another method acceptable to the winner, the officer will seize (levy upon) the debtor's properties. This includes any kind of property that can be sold and is not legally exempt from execution. The debtor has the immediate option to choose which property or part of it should be seized, as long as it's enough to satisfy the judgment. If the debtor doesn't choose, the officer will first seize personal properties. If those are not enough, real properties will be seized. The sheriff will only sell enough of the seized personal or real property to cover the judgment amount. If the debtor has more property than needed to satisfy the judgment and lawful fees, the officer must only sell what is necessary. Real property, stocks, shares, debts, credits, other personal property, or any interest in such property can be seized in the same way as under a writ of attachment (a pre-judgment seizure order).
- Garnishment of Debts and Credits: The officer can seize debts owed to the judgment debtor and other credits. This includes bank deposits, financial interests, royalties, commissions, and other personal property that isn't physically deliverable but is held or controlled by third parties (like a bank). Seizure is done by serving a notice to the person or entity owing the debt or holding the credits. The garnishment will only cover the amount needed to satisfy the judgment and all lawful fees. The party served with the garnishment notice (the "garnishee") must provide a written report to the court within five days. This report must state whether the judgment debtor has enough funds or credits to satisfy the judgment. If not, the report must state how much funds or credits the garnishee holds for the debtor. The garnished amount (in cash or a certified bank check payable to the judgment winner) must be delivered directly to the winner within ten working days of the garnishee receiving the notice requiring delivery. However, lawful fees are paid directly to the court. If there are multiple garnishees holding enough funds or credits, the judgment debtor (if available) can choose which garnishee(s) should deliver the amount due. Otherwise, the judgment winner makes the choice. The executing sheriff must follow the same procedure for delivering payment to the judgment winner as described in the "Immediate Payment on Demand" section.
Section 10: Enforcing Judgments for Specific Actions
- Conveyance, Delivery of Deeds, or Other Specific Acts; Transferring Title: If a judgment orders a party to transfer land or personal property, deliver deeds or other documents, or perform any other specific related act, and the party fails to do so within the set time, the court can order someone else to perform the act at the disobedient party's expense. The act, when done by this court-appointed person, will have the same legal effect as if done by the party. If real or personal property is located within the Philippines, the court, instead of ordering a conveyance, can issue an order that directly transfers the title from one party to another. This order has the force of a legally executed conveyance.
- Sale of Real or Personal Property: If the judgment orders the sale of real or personal property, the officer will sell the described property and use the proceeds according to the judgment.
- Delivery or Return of Real Property: The officer will demand that the person against whom the judgment for delivery or return of real property is issued (and anyone claiming rights under them) peacefully leave the property within three working days and return possession to the judgment winner. If they don't comply, the officer will remove them, using appropriate peace officers if necessary and employing reasonably necessary means to regain possession and give it to the judgment winner. Any costs, damages, rents, or profits awarded by the judgment will be collected in the same way as a money judgment.
- Removal of Improvements on Property Being Executed: If the property being seized has improvements built or planted by the judgment debtor or their agent, the officer cannot destroy, demolish, or remove these improvements without a special court order. This order is issued after a motion by the judgment winner, a hearing, and only if the debtor has failed to remove the improvements within a reasonable time set by the court.
- Delivery of Personal Property: For judgments ordering the delivery of personal property, the officer will take possession of the property and immediately deliver it to the entitled party. Any associated money judgment will also be satisfied as provided in the judgment.
Section 11: Enforcing Special Judgments
When a judgment requires an action other than those mentioned in the previous two sections (money payment or specific acts like conveyance/delivery), a certified copy of the judgment will be attached to the writ of execution. The officer will serve this on the party against whom the judgment is rendered, or on any other person required by the judgment or by law to obey it. If that party or person disobeys the judgment, they can be punished for contempt of court.
Section 12: Effect of Seizing Property on Third Parties
When property is seized for execution (levy), it creates a lien (a legal claim) in favor of the judgment winner over the judgment debtor's rights, title, and interest in that property at the time of the seizure. This lien is subject to any existing liens and encumbrances (prior claims or restrictions) on the property.
Section 13: Property Exempt from Execution
Unless a specific law states otherwise, the following property, and no other, is protected (exempt) from being seized to satisfy a judgment:
- The judgment debtor's family home as defined by law, or the homestead where they live, and the land essential for its use.
- Ordinary tools and implements personally used by the debtor in their trade, employment, or livelihood.
- Three horses, or three cows, or three carabaos (water buffalo), or other beasts of burden selected by the debtor, that are essential for their ordinary occupation.
- The debtor's necessary clothing and items for ordinary personal use, excluding jewelry.
- Household furniture and utensils necessary for housekeeping, used by the debtor and their family, selected by the debtor, up to a value not exceeding one hundred thousand pesos.
- Provisions (food, etc.) for individual or family use sufficient for four months.
- The professional libraries and equipment of judges, lawyers, physicians, pharmacists, dentists, engineers, surveyors, clergy, teachers, and other professionals, up to a value not exceeding three hundred thousand pesos.
- One fishing boat and its accessories, not exceeding a total value of one hundred thousand pesos, owned by a fisherman who uses it to earn their livelihood.
- Salaries, wages, or earnings of the judgment debtor for personal services rendered within the four months before the seizure, to the extent necessary for the support of their family.
- Lettered gravestones.
- Money, benefits, privileges, or annuities from any life insurance.
- The right to receive legal support, or money or property obtained as such support, or any pension or gratuity from the Government.
- Properties specifically exempted by other laws.
However, none of the items listed in this section are exempt if the judgment is for payment of their purchase price or for the foreclosure of a mortgage on that specific property.
Section 14: Return of the Writ of Execution
The writ of execution must be returned to the issuing court immediately after the judgment has been satisfied, in whole or in part. If the judgment cannot be fully satisfied within thirty (30) days after the officer receives the writ, the officer must report to the court and explain why. The writ remains in effect for the period during which the judgment can be enforced by motion. The officer must report to the court every thirty (30) days on the actions taken until the judgment is fully satisfied or its effective period expires. These returns or periodic reports must detail all proceedings and be filed with the court, with copies promptly given to the parties.
Section 15: Notice of Sale of Property Under Execution
Before property seized under execution is sold, notice must be given as follows:
- For perishable property: Post written notice of the sale's time and place in three public locations (preferably conspicuous areas of the municipal or city hall, post office, and public market) in the municipality or city where the sale will occur. The posting duration should be reasonable, considering the property's nature and condition.
- For other personal property: Post a similar notice in the three public places mentioned above for at least five days.
- For real property: Post a similar notice for twenty days in the three public places mentioned above. This notice must specifically describe the property and state where it will be sold. If the property's assessed value exceeds fifty thousand pesos, a copy of the notice must also be published once a week for two consecutive weeks in one newspaper. This newspaper is chosen by raffle and can be in English, Filipino, or any major regional language, provided it's published, edited, and circulated in (or, if none, has general circulation in) the province or city.
- In all cases: The judgment debtor must be given written notice of the sale at least three days before it happens. For perishable property (paragraph a), notice can be given anytime before the sale. This notice is served in the same way as court pleadings and other papers (as per section 6 of Rule 13).
The notice must specify the place, date, and exact time of the sale, which must not be earlier than 9:00 AM and not later than 2:00 PM. The parties can agree on the sale location. If there's no agreement, the sale of real property or personal property not capable of manual delivery will be held at the office of the clerk of court of the Regional Trial Court or Municipal Trial Court that issued the writ or was designated by the appellate court. For personal property that can be manually delivered, the sale will occur where the property is located.
Section 16: Procedure if a Third Person Claims the Seized Property
If property seized for execution is claimed by someone other than the judgment debtor or their agent, that third person must make a sworn statement (affidavit) asserting their title or right to possess the property, explaining the grounds for their claim. This affidavit must be served on the officer making the seizure and a copy on the judgment winner. Upon receiving this, the officer is not obligated to keep the property unless the judgment winner, if demanded by the officer, provides a bond approved by the court. This bond must be for an amount not less than the value of the seized property and is intended to compensate the third-party claimant if their claim is valid. If there's a disagreement about the property's value, the court issuing the writ of execution will determine it. Any claim for damages for taking or keeping the property cannot be enforced against the bond unless a lawsuit for it is filed within one hundred twenty (120) days from when the bond was filed.
The officer will not be liable to any third-party claimant for damages for taking or keeping the property if such a bond is filed. This rule does not prevent the claimant or any other third person from pursuing their claim to the property in a separate lawsuit. It also doesn't stop the judgment winner from claiming damages (in the same or a separate lawsuit) against a third-party claimant who filed a baseless or clearly fake claim.
If the writ of execution is issued in favor of the Republic of the Philippines or an officer representing it, filing such a bond is not required. If the sheriff or seizing officer is sued for damages due to the seizure, the Solicitor General will represent them. If they are found liable, the actual damages awarded by the court will be paid by the National Treasurer from funds appropriated for that purpose.
Section 17: Penalty for Selling Without Notice, or Removing or Damaging a Notice
An officer who sells property without giving the notice required by Section 15 of this Rule will be liable to pay punitive damages of five thousand pesos (P5,000.00) to anyone injured by this, in addition to their actual damages. Both can be recovered by filing a motion in the same case. A person who willfully removes or damages a posted notice before the sale (or before the judgment is satisfied if it's satisfied before the sale) will be liable to pay five thousand pesos (P5,000.00) to anyone injured, plus actual damages, recoverable by motion in the same case.
Section 18: No Sale if Judgment and Costs are Paid
At any time before the property is sold under execution, the judgment debtor can prevent the sale by paying the full amount required by the execution order and any costs incurred up to that point.
Section 19: How Property is Sold Under Execution; Who Can Direct the Sale
All property sales under execution must be by public auction to the highest bidder, starting at the exact time stated in the notice. Once enough property has been sold to satisfy the execution, no more property will be sold. Any excess property or money from the sale must be promptly given to the judgment debtor or their authorized representative, unless the court's judgment or order directs otherwise. When selling real property consisting of several known lots, they must be sold separately. If a third person claims a portion of such real property, they can request that portion be sold separately. When selling personal property that can be manually delivered, it must be sold within view of those attending the sale and in parcels likely to get the highest price. If the judgment debtor is present at the sale, they can direct the order in which property (real or personal) is sold, if it consists of several known lots or parcels that can be advantageously sold separately. Neither the officer conducting the execution sale nor their deputies can purchase or have any direct or indirect interest in any purchase at such a sale.
Section 20: Purchaser's Refusal to Pay
If a purchaser whose bid is accepted at an execution sale refuses to pay the bid amount, the officer can immediately resell the property to the highest bidder. The officer is not responsible for any loss caused by this. However, the court can order the refusing purchaser to pay the amount of the loss, plus costs, into the court. If the purchaser disobeys this order, they can be punished for contempt. The payment made by the refusing purchaser will go to the person entitled to the proceeds of the execution. If the execution has already been fully satisfied, the payment will go to the judgment debtor. The officer can then reject any future bids from a purchaser who has refused to pay.
Section 21: Judgment Winner as Purchaser
If the judgment winner is the purchaser at the sale, and no third-party claim has been filed, they do not need to pay the bid amount if it does not exceed their judgment amount. If the bid is higher than their judgment, they only need to pay the excess.
Section 22: Postponing the Sale (Adjournment)
With the written consent of both the judgment debtor and the judgment winner (or their authorized representatives), the officer can postpone the sale to any agreed-upon date and time. Without such an agreement, the officer can postpone the sale from day to day if necessary due to lack of time to complete it on the scheduled day or the day to which it was previously adjourned.
Section 23: Transferring Manually Deliverable Personal Property to the Purchaser
When the purchaser of any personal property that can be manually delivered pays the purchase price, the officer making the sale must deliver the property to the purchaser. If the purchaser desires, the officer must also execute and deliver a certificate of sale. This sale transfers to the purchaser all the rights the judgment debtor had in that property as of the date it was seized under execution or preliminary attachment.
Section 24: Transferring Personal Property Not Manually Deliverable to the Purchaser
When the purchaser of any personal property that cannot be manually delivered pays the purchase price, the officer making the sale must execute and deliver a certificate of sale to the purchaser. This certificate transfers to the purchaser all the rights the judgment debtor had in that property as of the date it was seized under execution or preliminary attachment.
Section 25: Transferring Real Property; Certificate for Purchaser and Filing with Registry of Deeds
Upon the sale of real property, the officer must give the purchaser a certificate of sale containing:
- A detailed description of the real property sold.
- The price paid for each distinct lot or parcel.
- The total price paid by the purchaser.
- A statement that the right to redeem the property expires one (1) year from the date the certificate of sale is registered.
This certificate must be registered in the Registry of Deeds of the place where the property is located.
Section 26: Certificate of Sale When a Third Party Claims the Property
If property sold through a writ of execution has been claimed by a third person, the certificate of sale issued by the sheriff (under Sections 23, 24, and 25) must specifically mention that such a third-party claim exists.
Section 27: Who Can Redeem Real Property Sold Under Execution
Real property sold as described previously, or any separately sold part of it, can be redeemed as outlined below by the following persons:
- The judgment debtor, or their successor in interest (someone who has acquired their rights) to all or part of the property.
- A creditor who has a lien (a legal claim like an attachment, judgment, or mortgage) on the property sold, or on a part of it, where this lien is subsequent to the lien under which the property was sold. Such a redeeming creditor is called a "redemptioner."
Section 28: Time, Manner, and Amounts for Successive Redemptions; Notices
The judgment debtor or a redemptioner can redeem the property from the purchaser within one (1) year from the date the certificate of sale was registered. To do this, they must pay the purchaser: * The original purchase amount. * Interest on the purchase amount at one percent (1%) per month, up to the time of redemption. * The amount of any assessments or taxes the purchaser paid on the property after buying it, plus interest on this amount at the same rate (1% per month). * If the purchaser is also a creditor with a lien on the property that is prior to the redemptioner's lien (other than the judgment under which the purchase was made), the amount of that prior lien, plus interest.
Property that has been redeemed once can be redeemed again within sixty (60) days after the last redemption. This subsequent redemption requires payment of: * The sum paid for the last redemption. * An additional two percent (2%) of that sum. * The amount of any assessments or taxes the last redemptioner paid on the property after redeeming it, plus interest on this amount. * Additionally, the amount of any liens held by the last redemptioner that were prior to their own lien, plus interest.
The property can be redeemed multiple times, as long as a redemptioner wishes to do so, from any previous redemptioner. Each subsequent redemption must occur within sixty (60) days after the last one, by paying the sum paid on the last previous redemption, plus an additional two percent (2%), plus any assessments or taxes paid by the last previous redemptioner (with interest), and the amount of any prior liens held by that last redemptioner (with interest).
Written notice of any redemption must be given to the officer who made the sale, and a duplicate copy must be filed with the Registry of Deeds where the property is located. If the redemptioner pays any assessments or taxes, or if they have or acquire any lien other than the one they redeemed under, notice of this must also be given to the officer and filed with the Registry of Deeds. If this notice is not filed, the property can be redeemed without paying those assessments, taxes, or liens.
Section 29: Effect of Redemption by Judgment Debtor; Certificate of Redemption; To Whom Payments are Made
If the judgment debtor redeems the property, they must make the same payments as a redemptioner would. Once the judgment debtor redeems, no further redemption is allowed, and they are restored to their ownership of the property. The person who receives the redemption payment must execute and deliver a certificate of redemption to the judgment debtor. This certificate must be acknowledged before a notary public or another officer authorized to acknowledge real property conveyances. It must then be filed and recorded in the Registry of Deeds where the property is located, and the Registrar of Deeds must note this on the margin of the recorded certificate of sale. The payments mentioned in this and the preceding section can be made to the purchaser, the current redemptioner, or, on their behalf, to the officer who conducted the sale.
Section 30: Proof Required from a Redemptioner
A redemptioner must show the following to the officer or person from whom they seek to redeem, and serve a copy with their notice to the officer:
- A certified copy of the judgment or final order under which they claim the right to redeem, certified by the clerk of the court where it was entered.
- Or, if redeeming based on a mortgage or other lien, a memorandum of its record, certified by the Registrar of Deeds, or an original or certified copy of any assignment necessary to establish their claim.
- An affidavit (a sworn statement) made by them or their agent, showing the amount currently due on their lien.
Section 31: Using the Property During the Redemption Period; Preventing Waste
Until the time allowed for redemption expires, the court can issue an injunction (a court order) to prevent waste (damage or destruction) on the property. This can be requested by the purchaser or the judgment winner, with or without prior notice to the possessor. However, it is not considered waste if the person possessing the property at the time of sale (or someone entitled to possession afterwards) continues to use it during the redemption period in the same way it was previously used, or uses it for ordinary farming, or makes necessary repairs to buildings on the property while occupying it.
Section 32: Rents, Earnings, and Income from the Property During Redemption
The purchaser or a redemptioner is not entitled to receive the rents, earnings, and income from property sold under execution, or the value of its use and occupation, if the property is possessed by a tenant. All rents, earnings, and income derived from the property during the redemption period belong to the judgment debtor until their redemption period expires.
Section 33: Deed and Possession After Redemption Period Expires; Who Executes or Gives Them
If no redemption is made within one (1) year from the date the certificate of sale was registered, the purchaser is entitled to a deed of conveyance and possession of the property. If the property was redeemed, and then sixty (60) days have passed without any further redemption (and notice given), and the overall time for redemption has expired, the last redemptioner is entitled to the conveyance and possession. However, in all cases, the judgment debtor has the entire one-year period from the date of the sale's registration to redeem the property. The deed of conveyance will be executed by the officer who made the sale or by their successor in office. If by a successor, the deed has the same validity as if the original selling officer had remained in office and executed it.
Upon the expiration of the right of redemption, the purchaser or redemptioner takes over and acquires all the rights, title, interest, and claims of the judgment debtor to the property, as they existed at the time of the seizure (levy). The same officer will give possession of the property to the purchaser or last redemptioner, unless a third party is holding the property adversely to the judgment debtor.
Section 34: Recovering the Purchase Price if Sale is Ineffective; Reviving the Judgment
If the purchaser of real property sold under execution (or their successor in interest) fails to get possession of it, or is evicted from it, because of: * Irregularities in the sale proceedings, * The judgment being reversed or set aside, * The property sold being exempt from execution, or * A third person successfully asserting their claim to the property, the purchaser can, by motion in the same case or in a separate lawsuit, recover the price paid (with interest) from the judgment winner (to the extent it wasn't already given to the judgment debtor). Alternatively, the purchaser can, by motion, have the original judgment revived in their name for the whole price (with interest), or for the portion that was delivered to the judgment debtor. The revived judgment will have the same force and effect as an original judgment from the date of revival, and no more.
Section 35: Right to Contribution or Reimbursement
When property that is liable for a judgment against several people is sold, and the sale of one person's property satisfies more than their fair share of the judgment, or if one of them pays more than their proportion without a sale, that person can compel the others to contribute their shares. When a judgment is based on an obligation where one person is a surety (guarantor) for another, and the surety pays the amount (or part of it), either through the sale of their property or before a sale, the surety can compel the principal debtor to repay them.
Section 36: Examining the Judgment Debtor if the Judgment is Unsatisfied
If the return of a writ of execution against a judgment debtor (or one of several debtors in the same judgment) shows that the judgment remains unsatisfied, wholly or partly, the judgment winner is entitled to a court order. This order, from the court that issued the judgment, requires the judgment debtor to appear and be examined under oath about their property and income. This examination happens before the court or a commissioner appointed by it, at a specified time and place. Proceedings can then be held to apply the debtor's property and income towards satisfying the judgment. However, a judgment debtor cannot be required to appear before a court or commissioner outside the province or city where they reside or are found.
Section 37: Examining Someone Who Owes the Judgment Debtor
If a writ of execution is returned unsatisfied (wholly or partly), and it's proven to the satisfaction of the issuing court that a person, corporation, or other legal entity has property belonging to the judgment debtor or owes them money, the court can order that person, corporation, entity (or any of its officers or members) to appear for examination. This examination takes place before the court or an appointed commissioner, at a time and place within the province or city where such debtor (the third party) resides or is found. Serving this order binds (freezes) all credits due to the judgment debtor and all their money and property held or controlled by that person, corporation, or entity from the time of service. The court can also require that any party to the action be notified of these proceedings as it deems proper.
Section 38: Enforcing Attendance and Conduct of Examination
A party or other person can be compelled by court order or subpoena to attend and testify as required in the two preceding sections. If they fail to obey the order or subpoena, fail to be sworn in, refuse to answer as a witness, or refuse to sign their deposition (written testimony), they can be punished for contempt, similar to other cases. Examinations should not be unnecessarily long, but proceedings can be adjourned from time to time until completed. If the examination is before a commissioner, they must record it in writing and certify it to the court. All examinations and answers before a court or commissioner must be under oath. When a corporation or other legal entity answers, it must be under the oath of an authorized officer or agent.
Section 39: Debtor of Judgment Debtor May Pay Sheriff
After a writ of execution against property has been issued, a person who owes money to the judgment debtor can pay the amount of their debt (or as much as needed to satisfy the judgment) to the sheriff holding the writ. This payment should be made as described in Section 9 of this Rule. The sheriff's receipt will be a sufficient discharge for the amount paid or for the amount the judgment winner directs to be credited on the execution.
Section 40: Order to Apply Property and Income to Satisfy Judgment
The court can order any non-exempt property of the judgment debtor, or money due to them, whether held by the debtor or by another person, corporation, or legal entity, to be applied towards satisfying the judgment. This is subject to any prior rights over such property. If an investigation of the judgment debtor's current income and expenses shows that their earnings from personal services are more than what's necessary for their family's support, the court can order them to pay the judgment in fixed monthly installments. If they fail to pay any installment when due without a good excuse, they can be punished for indirect contempt of court.
Section 41: Appointing a Receiver
The court can appoint a receiver to take charge of the judgment debtor's property. The court can also forbid any transfer, other disposal of, or interference with the judgment debtor's property that is not exempt from execution.
Section 42: Sale of Ascertainable Interest of Judgment Debtor in Real Estate
If it appears that the judgment debtor has an interest in real estate in the location where proceedings are being held (e.g., as a mortgagor, mortgagee, or otherwise), and their interest can be clearly determined without dispute, the court can order the receiver to sell and convey that real estate or the debtor's interest in it. Such a sale will be conducted in all respects like a sale of real estate under execution, and the court must approve the proceedings before the deed is executed.
Section 43: Proceedings if Indebtedness is Denied or Another Person Claims the Property
If it appears that a person or corporation, alleged to have property of the judgment debtor or to owe them money, claims an interest in the property adverse to the debtor or denies the debt, the court can issue an order. This order can: * Authorize the judgment winner to file a lawsuit against that person or corporation to recover the interest or debt. * Forbid any transfer or other disposal of that interest or debt for up to one hundred twenty (120) days from the notice of the order. * Punish disobedience of such an order as contempt. This order can be modified or cancelled at any time by the court that issued it, or by the court where the lawsuit is brought, on just terms.
Section 44: Clerk of Court's Entry of Judgment Satisfaction
The clerk of court will record the satisfaction of a judgment in the court docket and in the execution book when: * A writ of execution is returned showing the judgment has been fully satisfied. * An admission of judgment satisfaction is filed, executed and acknowledged (like a real property conveyance) by the judgment winner or their counsel (unless the counsel's authority has been revoked). * Such an admission is endorsed by the judgment winner or their counsel on the face of the judgment record.
Section 45: Entry of Satisfaction With or Without Admission
Whenever a judgment is actually satisfied, other than through an execution on demand of the judgment debtor, the judgment winner or their counsel must execute and acknowledge (or endorse) an admission of satisfaction as described in the preceding section. After notice and upon motion, the court can order either the judgment winner or their counsel to do so, or it can order the entry of satisfaction to be made even without such an admission.
Section 46: When a Principal is Bound by a Judgment Against Their Surety
When a judgment is issued against a party who is a surety (guarantor) for another, the principal (the person whose obligation was guaranteed) is also bound by that judgment from the time they receive notice of the lawsuit or proceeding and have an opportunity, at the surety's request, to join in the defense.
Section 47: Effect of Judgments or Final Orders (Philippine Courts)
A judgment or final order rendered by a Philippine court with proper jurisdiction has the following effects:
- Judgments "in rem" (regarding a specific thing, will probate, estate administration, or a person's status/relationship): The judgment or final order is conclusive (binding) on the title to the thing, the will or administration, or the person's condition, status, or relationship. However, the probate of a will or the granting of letters of administration is only preliminary (prima facie) evidence of the testator's or intestate person's death.
- Other cases ("in personam" judgments): The judgment or final order is conclusive between the parties and their successors in interest (those who acquire title after the case began) regarding the matter directly decided and any other matter that could have been raised in connection with it, provided they are litigating for the same thing, under the same title, and in the same capacity.
- In any other litigation between the same parties or their successors in interest: Only what appears on the face of the former judgment or final order to have been decided, or what was actually and necessarily included in it or essential to it, is considered to have been judged.
Section 48: Effect of Foreign Judgments or Final Orders
A judgment or final order from a foreign country's tribunal that had jurisdiction has the following effects:
- If the judgment or final order is about a specific thing: It is conclusive on the title to that thing.
- If the judgment or final order is against a person: It is presumptive evidence of a right between the parties and their successors in interest by a subsequent title (meaning it's assumed to be correct unless proven otherwise).
In either case, the foreign judgment or final order can be challenged and overturned by evidence showing: * Lack of jurisdiction of the foreign tribunal. * Lack of notice to the party. * Collusion (conspiracy). * Fraud. * A clear mistake of law or fact.