Sps. Yu vs. Ngo Yee Te
Sps. Yu vs. Ngo Yee Te
SUPREME COURT Attachment.15 They also filed a Claim Against Surety Bond16 in
Manila which they demanded payment from Visayan Surety and
Insurance Corporation (Visayan Surety), the surety which issued
THIRD DIVISION the attachment bond, of the sum of ₱594,240.00, representing
the damages they allegedly sustained as a consequence of the
G.R. No. 155868 February 6, 2007 wrongful attachment of their properties.
SPOUSES GREGORIO and JOSEFA YU, Petitioners, While the RTC did not resolve the Claim Against Surety Bond, it
vs. issued an Order17 dated May 3, 1993, discharging from
NGO YET TE, doing business under the name and style, attachment the Toyota Ford Fierra, jeep, and Canter delivery
ESSENTIAL MANUFACTURING, Respondent. van on humanitarian grounds, but maintaining custody of Lot
No. 11 and the passenger bus. Spouses Yu filed a Motion for
Reconsideration18 which the RTC denied.19
DECISION
The RTC issued an Order dated August 9, 1994, which read: Spouses Yu filed a Motion for Reconsideration42 but the CA
denied it in the herein assailed Resolution43 dated October 14,
2002.
xxxx
Spouses Yu’s claim for unrealized income of ₱1,500.00 per day COURT: Did you fund it or not?
was based on their computation of their average daily income
for the year 1992. Said computation in turn is based on the value
Atty. Ferrer: The three checks involved?
of three ticket stubs sold over only five separate days in 1992.67
By no stretch of the imagination can we consider ticket sales for
Atty. Florido: Already answered. She said that they were not
five days sufficient evidence of the average daily income of the
able to fund it.
passenger bus, much less its mean income. Not even the
unrebutted testimony of Josefa Yu can add credence to such
evidence for the testimony itself lacks corroboration.68 Atty. Ferrer: And as a matter of fact, you went to the bank to
close your account?
Besides, based on the August 29, 1994 Manifestation69 filed by
Sheriff Alimurung, it would appear that long before the A: We closed account with the bank because we transferred the
passenger bus was placed under preliminary attachment in Civil account to another bank.
Case No. 4061-V-93, the same had been previously attached by
the Sheriff of Mandaue City in connection with another case Q: How much money did you transfer from that bank to which
and that it was placed in the Cebu Bonded Warehousing the three checks were drawn to this new bank?
Corporation, Cebu City. Thus, Spouses Yu cannot complain that
they were unreasonably deprived of the use of the passenger A: I don’t know how much was there but we transferred already
bus by reason of the subsequent wrongful attachment issued in to the Solid Bank.
Civil Case No. 4061-V-93. Nor can they also attribute to the
wrongful attachment their failure to earn income or profit from Q: Who transferred?
the operation of the passenger bus.
A: My daughter, sir.73 (Emphasis ours)
Moreover, petitioners did not present evidence as to the
damages they suffered by reason of the wrongful attachment Based on the foregoing testimony, it is not difficult to
of Lot No. 11. understand why Te concluded that Spouses Yu never intended
to pay their obligation for they had available funds in their bank
Nonetheless, we recognize that Spouses Yu suffered some form but chose to transfer said funds instead of cover the checks
of pecuniary loss when their properties were wrongfully seized, they issued. Thus, we cannot attribute malice nor bad faith to
although the amount thereof cannot be definitively Te in applying for the attachment writ. We cannot hold her
ascertained. Hence, an award of temperate or moderate liable for moral and exemplary damages.
damages in the amount of ₱50,000.00 is in order.70
As a rule, attorney’s fees cannot be awarded when moral and
As to moral and exemplary damages, to merit an award thereof, exemplary damages are not granted, the exception however is
it must be shown that the wrongful attachment was obtained when a party incurred expenses to lift a wrongfully issued writ
by the attachment plaintiff with malice or bad faith, such as by of attachment.1awphi1.net74 Without a doubt, Spouses Yu
appending a false affidavit to his application.71 waged a protracted legal battle to fight off the illegal
attachment of their properties and pursue their claims for
Spouses Yu argue that malice attended the issuance of the damages. It is only just and equitable that they be awarded
attachment bond as shown by the fact that Te deliberately reasonable attorney’s fees in the amount of ₱30,000.00.
appended to her application for preliminary attachment an
Affidavit where Sy perjured himself by stating that they had no In sum, we affirm the dismissal of the counterclaim of
intention to pay their obligations even when he knew this to be petitioners Spouses Yu for actual, moral, and exemplary
untrue given that they had always paid their obligations; and by damages. However, we grant them temperate damages and
accusing them of disposing of their properties to defraud their attorney’s fees.
creditors even when he knew this to be false, considering that
the location of said properties was known to him.72 WHEREFORE, the petition is partly GRANTED. The March 21,
2001 Decision of the Court of Appeals is AFFIRMED with the
MODIFICATION that petitioners’ counterclaim is PARTLY
GRANTED. Gregorio Yu and Josefa Yu are awarded ₱50,000.00 5
Exhibits "A-1," "B-1," and "C-1," envelope of exhibits.
temperate damages and ₱30,000.00 attorney’s fees.
6
Exhibit "H," envelope of exhibits.
No costs.
7
Records, p. 1.
SO ORDERED.
8
Id. at 10.
MA. ALICIA AUSTRIA-MARTINEZ
Associate Justice 9
Id. at 18.
WE CONCUR: 10
Id. at 19.
CONSUELO YNARES-SANTIAGO 11
Id. at 48.
Associate Justice
Chairperson 12
Id. at 47.
15
ATTESTATION Id. at 30.
16
I attest that the conclusions in the above Decision had been Id. at 28.
reached in consultation before the case was assigned to the
writer of the opinion of the Court’s Division. 17
Id. at 69.
CONSUELO YNARES-SANTIAGO 18
Id. at 88.
Associate Justice
Chairperson, Third Division 19
Id. at 94.
CERTIFICATION 20
Id. at 230.
24
Docketed as G.R. No. 114700.
Footnotes 25
Records, p. 340.
1
Rollo, p. 26. 26
Id. at 409-410.
2
Entitled "Ngo Yet Te, doing business under the name and style 27
Id. at 336-337.
ESSENTIAL MANUFACTURING, represented by her attorney-in-fact
Charry N. Sy, Plaintiff-Appellee, v. Sps. Gregorio and Josefa Yu, 28
Id. at 371.
doing business under the name and style ARCHIE’S STORE,
Defendants-Appellants." 29
Id. at 339.
3
Rollo, p. 45. 30
Id. at 345-346.
4
Exhibit Envelope, Exhibits "A," "B," and "C," envelope of 31
Id. at 404.
exhibits.
32
In the same December 2, 1994 Order, the RTC granted two Rule, shall be claimed, ascertained, and granted under the same
motions filed by Te, a Motion to Correct and to Include Specific procedure as prescribed in Section 20 of Rule 57.
Amount for Interest and a Motion for Execution Pending
Appeal. (Id.) Spouses Yu filed a Notice of Appeal from said 53
143 Phil. 129 (1970).
Order but the same was denied by the RTC in an Order dated
January 5, 1995. (Id. at 411 and 423) Spouses Yu filed with the CA 54
Rollo, pp. 13-16.
a Petition for Certiorari, Prohibition and Mandamus, docketed as
CA G.R. SP No. 36205, questioning the denial of their Notice of 55
112 Phil. 733 (1961).
Appeal, the modification of the July 20, 1994 Decision and the
issuance of a Writ of Execution. (Id. at 427) The CA granted the 56
Calderon v. Intermediate Appellate Court, G.R. No. 74696,
Petition in a Decision dated June 22, 1995. (Id. at 515)
November 11, 1987, 155 SCRA 531, 539.
33
Id. 57
MC Engineering, Inc. v. Court of Appeals, 429 Phil. 634, 666
34
(2002). See also Carlos v. Sandoval, G.R. No. 135830, September
Id. at 353 and 423.
30, 2005, 471 SCRA 266, 296.
35
Id. at 411. 58
Carlos v. Sandoval, supra; MC Engineering, Inc. v. Court of
Appeals, supra; Rivera v. Solidbank Corporation, G.R. No. 163269,
36
Id. at 423. April 19, 2006, 487 SCRA 512, 546.
37
Id. at 427. 59
Saguid v. Security Finance, Inc., G.R. No. 159467, December 9,
2005, 477 SCRA 256, 275; Villafuerte v. Court of Appeals, G.R. No.
38
Id. at 515. 134239, May 26, 2005, 459 SCRA 58, 69.
39
CA rollo, p. 43. 60
Public Estates Authority v. Chu, G.R. No. 145291, September 21,
2005, 470 SCRA 495, 503; Villafuerte v. Court of Appeals, supra
40
Id. at 48. note 59.
41 61
Penned by Associate Justice Ruben T. Reyes and concurred in Exhibits "11-A" to "11-C," "12-A" to "12-C," "13-A" to "13-C," "14-
by Associate Justices Presbitero J. Velasco, Jr. (now a member A" to "14-C" and "15-A" to "15-C," envelope of exhibits.
of this Court) and Juan Q. Enriquez, Jr., id. at 120.
62
Rollo, p. 17.
42
Id. at 131.
63
Id. at 18-21; TSN, March 8, 1994, pp. 56-63.
43
Penned by Associate Justice Ruben T. Reyes and concurred in
by Associate Justices Cancio C. Garcia (now a member of this 64
CA rollo, pp. 129-130.
Court) and Juan Q. Enriquez, Jr., id. at 162.
65
Pilipinas Shell Petroleum Corporation v. John Bordman Ltd. of
44
Petition, rollo, p. 12. Iloilo, Inc., G.R. No. 159831, October 14, 2005, 473 SCRA 151, 162.
45
Id. at 111-112. 66
Child Learning Center, Inc. v. Tagario, G.R. No. 150920,
November 25, 2005, 476 SCRA 236, 241-242.
46
See notes 13, 14 and 15.
67
There were 15 ticket stubs presented in evidence. Given that
47
Records, p. 160. Spouses Yu issue three tickets stubs each day of operation, it
follows that the 15 ticket stubs represent sales for five separate
48
Id. at 172. days.
68
49
Id. at 171-b. Saguid v. Security Finance, Inc., supra note 59.
69
50
G.R. No. L-48820, May 25, 1979, 90 SCRA 252. Records, p. 362.
70
51
Id. at 258-259. Emphasis ours. Villafuerte v. Court of Appeals, supra note 59, at 77.
71
52
Rules of Court (1964), Rule 60, Sec. 10, reads: MC Engineering, Inc. v. Court of Appeals, supra note 57;
Solidbank Corporation v. Mindanao Ferroalloy Corporation, G.R.
The amount, if any, to be awarded to either party upon any No. 153535, July 28, 2005, 464 SCRA 409, 429; Philippine
bond filed by the other in accordance with the provisions of this Commercial International Bank v. Intermediate Appellate Court,
G.R. No. 73610, April 19, 1991, 196 SCRA 29, 36.
72
Petition, rollo, pp. 13-16.
73
TSN, April 26, 1994, pp. 14-15.
74
Carlos v. Sandoval, supra note 57, at 299-300; MC Engineering,
Inc. v. Court of Appeals, supra note 57, at 667.