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Republic of the Philippines
SUPREME COURT
Baguio City
SECOND DIVISION
LILIBETH SUNGA-CHAN andCECILIA SUNGA,
Petitiones!
" #esus "
THE HONORABLE COURT OF
APPEALS; THE HONORABLE
PRESIDING JUDGE, Regional
Trial Cor!, Bran"# $$, Sindangan,
%a&'oanga Del Nor!e; THE
REGIONAL TRIAL COURT
SHERIFF, Bran"# $$, Sindangan,
%a&'oanga Del Nor!e; THE
CLER( OF COURT OF )ANILA,a* E+-Oi"io S#eri; and
LA)BERTO T CHUA,
Respon$ents%
GR No $.//0$
Pesent&
'UISUMBIN(! J %! Chaipeson!
C)RPIO MOR)*ES!
TIN()!
VE*)SCO! +R%! an$
BRION! JJ %
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Po,ulgate$&
+une -.! -//0
1"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""1
D E C I S I O N
1ELASCO, JR, J.2
T#e Ca*e
Befoe us is a petition fo e#ie2 un$e Rule 3.! see4ing to nullify an$ set
asi$e the Decision an$ Resolution $ate$ No#e,be 5! -//6 an$ +uly 5! -//3!
especti#ely! of the Cout of )ppeals 7C)8 in C)"(%R% SP No% 9.500% The
i,pugne$ C) Decision an$ Resolution $enie$ the petition fo cetioai intepose$
by petitiones assailing the Resolutions $ate$ No#e,be 5! -//- an$ +anuay 9!
-//6! especti#ely! of the Regional Tial Cout 7RTC8! Banch :: in Sin$angan!
;a,boanga Del Note in Ci#il Case No% S"3
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In :o con#enience! the business! pusue$
un$e the na,e! Shellite (as )ppliance Cente 7Shellite8! 2as egistee$ as a sole
popietoship in the na,e of +acinto! albeit the patneship aange,ent calle$ fo
e=ual shaing of the net pofit%
)fte +acinto?s $eath in :,aie$ $aughte! petitione *ilibeth Sunga"Chan! continue$ 2ith the business
2ithout Chua?s consent% Chua?s subse=uent epeate$ $e,an$s fo accounting an$
2in$ing up 2ent unhee$e$! po,pting hi, to file on +une --! :
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AERE>ORE! @u$g,ent is heeby en$ee$ in fa#o of the plaintiff an$
against the $efen$ants! as follo2s&
7:8 DIRECTIN( the, !o render an a""on!ing in acceptable fo, un$e
accounting poce$ues an$ stan$a$s o !#e 3ro3er!ie*, a**e!*, in"o&e and
3roi!* o 4S#elli!e5 *in"e !#e !i&e o dea!# o Ja"in!o L Snga ! fo, 2ho,they continue$ the business opeations inclu$ing all businesses $ei#e$ fo,
Shellite sub,it an in#entoy! an$ appaisal of all these popeties! assets!
inco,e! pofits! etc% to the Cout an$ to plaintiff fo appo#al o $isappo#al
7-8 ORDERIN( the, !o re!rn and re*!i!!e to the patneship any an$
all 3ro3er!ie*, a**e!*, in"o&e and 3roi!* !#e6 &i*a33lied and "on7er!ed to
thei o2n use an$ a$#antage that legally petain to the plaintiff an$ account fo the popeties ,entione$ in pas% ) an$ B on pages 3". of this petition as basis
768 DIRECTIN( the, to estitute an$ 3a6 !o !#e 3lain!i 8 *#are* and
in!ere*! o !#e 3lain!i in the patneship of the liste$ popeties! assets an$ goo$2ill in sche$ules )! B an$ C! on pages 3". of the petition
738 ORDERIN( the, to 3a6 the plaintiff eane$ but nre"ei7ed in"o&e
and 3roi!* ro& !#e 3ar!ner*#i3 ro& $9:: !o )a6 0, $99
plaintiff leane$ of the closue of the stoe the su, of P=,00000 3er &on!#,
>i!# legal ra!e o in!ere*! n!il ll6 3aid
7.8 ORDERIN( the, to 2in$ up the affais of the patneship an$
te,inate its business acti#ities pusuant to la2! afte $eli#eing to the plaintiff allthe F inteest! shaes! paticipation an$ e=uity in the patneship! o the #alue
theeof in ,oney o ,oney?s 2oth! if the popeties ae not physically $i#isible
758 >INDIN( the, especially *ilibeth Sunga"Chan guilty of beach of
tust an$ in ba$ faith an$ hol$ the, liable to the plaintiff the su, of P./!///%//
as ,oal an$ e1e,play $a,ages an$!
798 DIRECTIN( the, to ei,buse an$ pay the su, of P-.!///%// as
attoney?s fee an$ P-.!///%// as litigation e1penses%
NO special ponounce,ents as to COSTS%
SO ORDERED% 7E,phasis supplie$%8
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Via an O$e $ate$ +anuay :5! -//-! the RTC gante$ Chua?s ,otion fo
e1ecution% O#e a ,onth late! the RTC! acting on anothe ,otion of Chua! issue$
an a,en$e$ 2it of e1ecution%
It see,s! ho2e#e! that the a,en$e$ 2it of e1ecution coul$ not be
i,,e$iately i,ple,ente$! fo! in an o,nibus ,otion of )pil 6! -//-! Chua! inter
alia! as4e$ the tial cout to co,,ission a cetifie$ public accountant 7CP)8 to
un$eta4e the accounting 2o4 an$ in#entoy of the patneship assets if petitiones
efuse to $o it 2ithin the ti,e set by the cout% Chua late ,o#e$ to 2ith$a2 his,otion an$ instea$ as4 the a$,ission of an accounting epot pepae$ by CP)
Cheyl )% (ahu,an% In the epot un$e the hea$ing! omputation of laims!
Chua?s aggegate clai,! ai#e$ at using the co,poun$ing"of"inteest ,etho$!
a,ounte$ to PhP :3!-99!633%
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On No#e,be 5! -//-! the RTC issue$ a Resolution! e@ecting the
accounting epot petitiones sub,itte$! 2hile appo#ing the ne2 co,putation of
clai,s Chua sub,itte$% The fallo of the esolution ea$s&
AERE>ORE! pe,ises consi$ee$! this Cout esol#es! as it is heeby
esol#e$! that the Co,putation of Clai,s sub,itte$ by the plaintiff $ate$ Octobe :.! -//- a,ounting to P0!966!533%9. be )PPROVED in all espects as the final
co,putation an$ accounting of the $efen$ants? liabilities in fa#o of the plaintiff
in the abo#e"captione$ case! DIS)PPROVIN( fo the pupose! in its entiety! theco,putation an$ accounting file$ by the $efen$ants%
SO RESO*VED%
Petitiones sought econsi$eation! but thei ,otion 2as $enie$ by the RTC
pe its Resolution of +anuay 9! -//6%
In $ue ti,e! petitiones 2ent to the C) on a petition fo cetioai un$e Rule
5.! assailing the No#e,be 5! -//- an$ +anuay 9! -//6 esolutions of the RTC!
the ecouse $oc4ete$ as C)"(%R% SP No% 9.500%
T#e Rling o !#e CA
)s state$ at the outset! the C)! in the heein assaile$ Decision of No#e,be
5! -//6! $enie$ the petition fo cetioai! thus&
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AERE>ORE! the foegoing consi$ee$! the Petition is heeby DENIEDfo lac4 of ,eit%
SO ORDERED%
The C) pe$icate$ its $enial action on the ensuing ,ain pe,ises&
:% Petitiones! by not appeaing on the heaing $ates! i%e%! )pil -< an$ 6/!
-//-! sche$ule$ to consi$e Chua?s co,putation of clai,s! o en$eing! as
e=uie$! an accounting of the 2in$ing up of the patneship! ae $ee,e$ to ha#e
2ai#e$ thei ight to intepose any ob@ection to the co,putation of clai,s thus
sub,itte$ by Chua%
-% The :-G inteest a$$e$ on the a,ounts $ue is pope as the un2aante$
4eeping by petitiones of Chua?s ,oney passes as an in#oluntay loan an$
fobeaance of ,oney%
6% The eiteati#e agu,ents set foth in petitiones? plea$ings belo2 2ee
pat of thei $elaying tactics% Petitiones ha$ co,e to the appellate cout at least
thice an$ to this Cout t2ice% Petitiones ha$ ,oe than enough ti,e to =uestion
the a2a$ an$ it is no2 too late in the $ay to change 2hat ha$ beco,e final an$
e1ecutoy%
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Petitiones? ,otion fo econsi$eation 2as e@ecte$ by the appellate cout
though the assaile$ Resolution $ate$ +uly 5! -//3% Theein! the C) e1plaine$ that
the i,position of the :-G inteest fo fobeaance of ce$it o ,oney 2as pope
pusuant to paagaph : of the Octobe 9! :
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ence! the instant petition 2ith petitiones aising the follo2ing issues fo
ou consi$eation&
I%
Ahethe o not the Regional Tial Cout can i,pose inteest on a final @u$g,ent
of unli=ui$ate$ clai,s%
II%
Ahethe o not the Sheiff can enfoce the 2hole $i#isible obligation un$e
@u$g,ent only against one Defen$ant%
III%
Ahethe o not the absolute co,,unity of popety of spouses *ilibeth Sunga
Chan 2ith he husban$ Nobeto Chan can be la2fully ,a$e to ans2e fo the
liability of *ilibeth Chan un$e the @u$g,ent%
Signii"an! In!er7ening E7en!*
In the ,eanti,e! pen$ing esolution of the instant petition fo e#ie2 an$
e#en befoe the esolution by the C) of its C)"(%R% SP No% 9.500! the follo2ing
ele#ant e#ents tanspie$&
:% >ollo2ing the RTC?s appo#al of Chua?s co,putation of clai,s in the
a,ount of PhP 0!966!533%9.! the sheiff of Manila le#ie$ upon petitione Sunga"
Chan?s popety locate$ along *inao St%! Paco! Manila! co#ee$ by Tansfe
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Cetificate of Title 7TCT8 No% -/090-! o#e 2hich a buil$ing lease$ to the
Philippine National Ban4 7PNB8 stoo$% In the auction sale of the le#ie$ lot! Chua!
2ith a ten$e of PhP 0 ,illion! e,ege$ as the 2inning bi$$e%
-% On +anuay -:! -//.! Chua ,o#e$ fo the issuance of a final $ee$ of sale
an$ a 2it of possession% e also as4e$ the RTC to o$e the Registy of Dee$s of
Manila to cancel TCT No% -/090- an$ to issue a ne2 cetificate% Despite
petitiones? opposition on the goun$ of pe,atuity! a final $ee$ of sale 2as issue$
on >ebuay :5! -//.%
6% On >ebuay :0! -//.! Chua ,o#e$ fo the confi,ation of the sheiff?s
final $ee$ of sale an$ fo the issuance of an o$e fo the cancellation of TCT No%
-/090-% Petitiones again intepose$ an opposition in 2hich they info,e$ the
RTC that this Cout ha$ alea$y gante$ $ue couse to thei petition fo e#ie2 on
+anuay 6:! -//.
3% On A3ril $$,
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5% On )a6 $,
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Petitiones! citing )ticle --:6 of the Ci#il Co$e! fault the tial cout fo
i,posing! in the e1ecution of its final @u$g,ent! inteests on 2hat they consi$ee$
as unli=ui$ate$ clai,s% ),ong these 2as the clai, fo goo$2ill upon 2hich the
RTC attache$ a ,onetay #alue of PhP -./!///% Petitiones also =uestion the
i,position of :-G inteest on the clai,e$ ,onthly pofits of PhP 6.!///! ec4one$
fo, :
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) ./G shae on assets 7e1clusi#e of goo$2ill8 at fai
,a4et #alue 7Schedule %8 P :!5:6!../%//
B ./G shae in the ,onetay #alue of goo$2ill
7P.//!/// 1 ./G8 -./!///%//
C *egal inteest on shae of assets fo, +une :! :
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)ttoney?s >ee -.!///%//
*itigation >ee -.!///%//
TOT)* )MOUNT P,$=/,?..=
)s ,ay be ecalle$! the tial cout a$,itte$ an$ appo#e$ Chua?s
co,putation of clai,s a,ounting to PhP 0!966!533%9.! but e@ecte$ that of
petitiones! 2ho ca,e up 2ith the figue of only PhP 6!:.3!965%5.% Ae highlight
the substantial $iffeences in the accounting epots on the follo2ing ite,s! to 2it&
7:8 the aggegate a,ount of the patneship assets beaing on the ./G shae of
Chua theeon 7-8 inteests a$$e$ on Chua?s shae of the assets 768 a,ount of
pofits fo, :
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Neithe is the Cout incline$ to intefee 2ith the C)?s conclusion as to the
total a,ount of the patneship pofit! that is! PhP :!0..!///! geneate$ fo the
peio$ +anuay :
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--/< of the Ci#il Co$e pescibing a yealy 5G inteest% )t% --/< petinently
po#i$es&
)t% --/
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be sub@ect to the con$ition Hthat the couts ae #este$ 2ith $iscetion! $epen$ing on
the e=uities of each case! on the a2a$ of inteest%
Othe2ise fo,ulate$! the no, to be follo2e$ in the futue on the ates an$
application theeof is&
I% J Ahen an obligation! ega$less of its souce! is beache$! the
conta#eno can be hel$ liable fo $a,ages% The po#isions un$e Title VIII on
HDa,ages of the Ci#il Co$e go#en in $ete,ining the ,easue of eco#eable$a,ages%
II% J Aith ega$ paticulaly to an a2a$ of inteest in the concept of actual an$ co,pensatoy $a,ages! the ate of inteest! as 2ell as the accual
theeof! is i,pose$! as follo2s&
:% Ahen the obligation beache$ consists in the pay,ent of a su, of ,oney! i%e%! a loan o fobeaance of ,oney! the inteest $ue shoul$ be that 2hich
,ay ha#e been stipulate$ in 2iting% >uthe,oe! the inteest $ue shall itself
ean legal inteest fo, the ti,e it is @u$icially $e,an$e$% In the absence of stipulation! the ate of inteest shall be :-G pe annu, to be co,pute$ fo,
$efault! i%e%! fo, @u$icial o e1ta@u$icial $e,an$ un$e an$ sub@ect to the
po#isions of )ticle ::5< of the Ci#il Co$e%
-% Ahen an obligation not constituting loans o fobeaance of ,oney is
beache$! an inteest on the a,ount of $a,ages a2a$e$ ,ay be i,pose$ at the
$iscetion of the cout at the ate of 5G pe annu,% No inteest! ho2e#e! shall bea$@u$ge$ on unli=ui$ate$ clai,s o $a,ages e1cept 2hen o until the $e,an$ can
be establishe$ 2ith easonable cetainty% )cco$ingly! 2hee the $e,an$ is
establishe$ 2ith easonable cetainty! the inteest shall begin to un fo, the ti,ethe clai, is ,a$e @u$icially o e1ta@u$icially 7)t% ::5
such cetainty cannot be so easonably establishe$ at the ti,e the $e,an$ is
,a$e! the inteest shall begin to un only fo, the $ate the @u$g,ent of the coutis ,a$e 7at 2hich ti,e the =uantification of $a,ages ,ay be $ee,e$ to ha#e
been easonably ascetaine$8% The actual base fo the co,putation of legal
inteest shall! in any case! be on the a,ount finally a$@u$ge$%
6% Ahen the @u$g,ent of the cout a2a$ing a su, of ,oney beco,es
final an$ e1ecutoy! the ate of legal inteest! 2hethe the case falls un$e
paagaph : o paagaph -! abo#e! shall be :-G pe annu, fo, such finality
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until its satisfaction! this intei, peio$ being $ee,e$ to be by then an e=ui#alent
to a fobeaance of ce$it%
(ui$e$ by the foegoing ules! the a2a$ to Chua of the a,ount epesenting
eane$ but une,itte$ pofits! i%e%% PhP 6.!/// ,onthly! fo, +anuay :
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The Cout has cetainly not lost sight of the fact that the Octobe 9! :
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768 :-G inteest on shae of goo$2ill fo, Dece,be
-/! -//: to Octobe :.! -///
PhP -./!/// 1 /%:- 1 -
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7:/8 :-G inteest on ,oal an$ e1e,play $a,ages!
attoney?s fee! an$ litigation fee fo, Dece,be
-/! -//: to Octobe :.! -//-
PhP ://!/// 1 :-G 1 -
TOT)* )MOUNT P#P =,=
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>o one! the co,plaint of Chua fo 2in$ing up of patneship affais!
accounting! appaisal! an$ eco#ey of shaes an$ $a,ages is clealy a suit to
enfoce a soli$ay o @oint an$ se#eal obligation on the pat of petitiones% )s it
2ee! the continuance of the business an$ ,anage,ent of Shellite by petitiones
against the 2ill of Chua ga#e ise to a soli$ay obligation! the acts co,plaine$ of
not being se#eable in natue% In$ee$! it is 2ell"nigh i,possible to $a2 the line
bet2een 2hen the liability of one petitione en$s an$ the liability of the othe
stats% In this 4in$ of situation! the la2 itself i,poses soli$ay obligation% )t%
:-/9 of the Ci#il Co$e thus po#i$es&
)t% :-/9% The concuence of t2o o ,oe ce$itos o of t2o o ,oe$ebtos in one an$ the sa,e obligation $oes not i,ply that each one of the fo,e
has a ight to $e,an$! o that each of the latte is boun$ to en$e! entie
co,pliance 2ith the pestation% Thee is soli$ay liability only 2hen theobligation e1pessly so states! o 2hen the la2 o the na!re o !#e o'liga!ion
reire* *olidari!6% 7E,phasis ous%8
)ny suggestion that the obligation to un$eta4e an in#entoy! en$e an
accounting of patneship assets! an$ to 2in$ up the patneship affais is $i#isible
ought to be $is,isse$%
>o the othe! the $uty of petitiones to e,it to Chua his half inteest an$
shae of the total patneship assets pocee$s fo, petitiones? in$i#isible
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obligation to en$e an accounting an$ in#entoy of such assets% The nee$ fo the
i,position of a soli$ay liability beco,es all the ,oe ponounce$ consi$eing the
i,possibility of =uantifying ho2 ,uch of the patneship assets o pofits 2as
,isappopiate$ by each petitione%
)n$ fo a thi$! petitiones? obligation fo the pay,ent of $a,ages an$
attoney?s an$ litigation fees ought to be soli$ay in natue! they ha#ing esiste$ in
ba$ faith a legiti,ate clai, an$ thus co,pelle$ Chua to litigate%
T#ird I**e2 Co&&ni!6 Pro3er!6 Lia'le
Pi,aily anchoe$ as the last issue is the eoneous theoy of $i#isibility of
petitiones? obligation an$ thei @oint liability theefo% The Cout nee$s to $2ell onit lengthily%
(i#en the soli$ay liability of petitiones to satisfy the @u$g,ent a2a$!
espon$ent sheiff cannot eally be faulte$ fo le#ying upon an$ then selling at
public auction the popety of petitione Sunga"Chan to ans2e fo the 2hole
obligation of petitiones% The fact that the le#ie$ pacel of lan$ is a con@ugal o
co,,unity popety! as the case ,ay be! of spouses Nobeto an$ Sunga"Chan
$oes not pe se #itiate the le#y an$ the conse=uent sale of the popety% Veily! sai$
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popety is not a,ong those e1e,pte$ fo, e1ecution un$e Section :6! Rule 6< of
the Rules of Cout%
)n$ it cannot be o#ee,phasiKe$ that the TRO issue$ by the Cout on May
6:! -//. ca,e afte the auction sale in =uestion%
Paenthetically! the eco$s sho2 that spouses Sunga"Chan an$ Nobeto
2ee ,aie$ on >ebuay 3! :
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May 6/! :
the puchase pice o#e his legiti,ate clai,s%
>ollo2ing the auction! the coespon$ing cetificate of sale $ate$ +anuay
:.! -//3 2as annotate$ on TCT No% -/090-% On +anuay -:! -//.! Chua ,o#e$
fo the issuance of a final $ee$ of sale 7:8 to o$e the Registy of Dee$s of Manila
to cancel TCT No% -/090- 7-8 to issue a ne2 TCT in his na,e an$ 768 fo the
RTC to issue a 2it of possession in his fa#o% )n$ as ealie state$! the RTC
gante$ Chua?s ,otion! albeit the Cout estaine$ the enfoce,ent of the RTC?s
pac4age of o$es #ia a TRO issue$ on May 6:! -//.%
Theefoe! sub@ect to the pay,ent by Chua of PhP -!39/!5/9%30 to petitione
Sunga"Chan! 2e affi, the RTC?s )pil ::! -//. esolution! confi,ing the
sheiff?s final $ee$ of sale of the le#ie$ popety! o$eing the Registy of Dee$s of
Manila to cancel TCT No% -/090-! an$ issuing a 2it of possession in fa#o of
Chua%
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HEREFORE! this petition is PARTL GRANTED% )cco$ingly! the
assaile$ $ecision an$ esolution of the C) in C)"(%R% SP No% 9.500 ae heeby
AFFIR)ED 2ith the follo2ing )ODIFICATIONS&
7:8 The Resolutions $ate$ No#e,be 5! -//- an$ +anuay 9! -//6 of the
RTC! Banch :: in Sin$angan! ;a,boanga Del Note in Ci#il Case No% S"37-8 Sub@ect to the pay,ent by espon$ent Chua of PhP -!39/!5/9%30 to
petitione Sunga"Chan! the Resolution $ate$ )pil ::! -//. of the RTC! confi,ing
the sheiff?s final $ee$ of sale of the le#ie$ popety! o$eing the Registy of
Dee$s of Manila to cancel TCT No% -/090-! an$ issuing a 2it of possession in
fa#o of espon$ent Chua! is AFFIR)ED an$
The TRO issue$ by the Cout on May 6:! -//. in the instant petition is
LIFTED%
No ponounce,ent as to costs%
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SO ORDERED