It appears that as of July 28, 2003, subject motor vehicle has been turned over to the plaintiff, thru its authorized representative, and adknowledged by the parties' respective counsels in separate Manifestations filed. To date, no action had been taken by the plaintiff in the further prosecution of this case. Accordingly, this case is ordered dismissed without prejudice on the ground of failure to prosecute.
Anent plaintiff's Motion to Dismiss defendant Young's counterclaim for benefits under the retirement and stock purchase plan, the Court rules as follows: The only issue in this case is who is entitled to the possession of the subject motor vehicle. This issue may have a connection, but not a necessary connection with defendant's rights under the retirement plan and stock purchase plan as to be considered a compulsory counterclaim.
x x x
Notably, defendant's claim is basically one for benefits under and by virtue of his employment with the plaintiff, and the subject vehicle is merely an incident in that claim. Said claim is properly ventilated, as it is resolvable by, the Rehabilitation Court which has jurisdiction and has acquired jurisdiction, to the exclusion of this Court. Accordingly, plaintiff's Motion To Dismiss defendant Young's counterclaim is granted.11
In the instant case, defendant, in his counterclaim anchored her [sic] right of possession to the subject vehicle on his alleged right to purchase the same under the company car plan. However, considering that the Court has already declared that it no longer has jurisdiction to try defendant's counterclaim as it is now part of the rehabilitation proceedings before the corporate court concerned, the assertions in the Motion for Reconsiderations (sic) will no longer stand.
On the other hand, the plaintiff did not file a Motion for Reconsideration of the same Order, dismissing the complaint for failure to prosecute, within the reglementary period. Hence, the same has attained finality.
Defendant alleged that the dismissal of the case resulted in the dissolution of the writ. Nonetheless, the Court deems it proper to suspend the resolution of the return of the subject vehicle. In this case, the subject vehicle was turned over to plaintiff by virtue of a writ of replevin validly issued, the latter having sufficiently shown that it is the absolute/registered owner thereof. This was not denied by the defendant. Plaintiff's ownership includes its right of possession. The case has been dismissed without a decision on the merits having been rendered. Thus, to order the return of the vehicle to one who is yet to prove his right of possession would not be proper.
Accordingly, the Motion for Partial Reconsideration is denied.12
In the instant case, the Court suspended the resolution of the return of the vehicle to defendant Roland Young. It should be noted that the writ of replevin was validly issued in favor of the plaintiff and that it has sufficiently established ownership over the subject vehicle which includes its right to possess. On the other hand, the case (Olympia International vs. Court of Appeals) cited by defendant finds no application to this case, inasmuch as in the former the Court has not rendered judgment affirming plaintiff's (Olympia) right of possession on the property seized. Moreover, the Court, in the Order dated April 28, 2005, has already denied defendant's counterclaim upon which he based his right of possession on the ground of lack of jurisdiction. Accordingly, the Court reiterates its previous ruling that to order the return of the subject vehicle to defendant Young, who is yet to prove his right of possession before the Rehabilitation Court would not be proper.
WHEREFORE, there being no new and substantial arguments raised, the Motion to Resolve is denied.13
It is noteworthy that the case was dismissed by the court a quo for failure of Advent to prosecute the same. Upon dismissal of the case, the writ of seizure issued as an incident of the main action (for replevin) became functus officio and should have been recalled or lifted. Since there was no adjudication on the merits of the case, the issue of who between Advent and petitioner has the better right to possess the subject car was not determined. As such, the parties should be restored to their status immediately before the institution of the case.
The Supreme Court's ruling in Olympia International, Inc. vs. Court of Appeals (supra) squarely applies to the present controversy, to wit:"Indeed, logic and equity demand that the writ of replevin be cancelled. Being provisional and ancillary in character, its existence and efficacy depended on the outcome of the case. The case having been dismissed, so must the writ's existence and efficacy be dissolved. To let the writ stand even after the dismissal of the case would be adjudging Olympia as the prevailing party, when precisely, no decision on the merits had been rendered. The case having been dismissed, it is as if no case was filed at all and the parties must revert to their status before the litigation."
Indeed, as an eminent commentator on Remedial Law expounds:"The plaintiff who obtains possession of the personal property by a writ of replevin does not acquire absolute title thereto, nor does the defendant acquire such title by rebonding the property, as they only hold the property subject to the final judgment in the action." (I Regalado, Remedial Law Compendium, Eighth Revised Edition, p. 686)
Reversion of the parties to the status quo ante is the consequence ex proprio vigore of the dismissal of the case. Thus, in Laureano vs. Court of Appeals (324 SCRA 414), it was held:"(A)lthough the commencement of a civil action stops the running of the statute of prescription or limitations, its dismissal or voluntary abandonment by plaintiff leaves the parties in exactly the same position as though no action had been commenced at all."
By the same token, return of the subject car to petitioner pending rehabilitation of Advent does not constitute enforcement of claims against it, much more adjudication on the merits of petitioner's counterclaim. In other words, an order for such return is not a violation of the stay order, which was issued by the rehabilitation court on August 27, 2001. x x x
Corollarily, petitioner's claim against the replevin bond has no connection at all with the rehabilitation proceedings. The claim is not against the insolvent debtor (Advent) but against bondsman, Stronghold. Such claim is expressly authorized by Sec. 10, Rule 60, in relation to Sec. 20, Rule 57, id., x x x14
WHEREFORE, premises considered, the instant petition is PARTLY GRANTED. The orders of the Regional Trial Court dated March 24, 2006 and July 5, 2006 are ANNULLED and SET ASIDE in so far as they suspended resolution of petitioner's motion for, and/or disallowed, the return of the subject car to petitioner. Accordingly, respondent Advent Capital and Finance Corporation is directed to return the subject car to petitioner.
The Regional Trial Court of Makati City (Branch 147) is directed to conduct a hearing on, and determine, petitioner's claim for damages against the replevin bond posted by Stronghold Insurance Co.
SO ORDERED.15
Sec. 20. Claim for damages on account of improper, irregular or excessive attachment. - An application for damages on account of improper, irregular or excessive attachment must be filed before the trial or before appeal is perfected or before the judgment becomes executory, with due notice to the attaching obligee or his surety or sureties, setting forth the facts showing his right to damages and the amount thereof. Such damages may be awarded only after proper hearing and shall be included in the judgment on the main case.
If the judgment of the appellate court be favorable to the party against whom the attachment was issued, he must claim damages sustained during the pendency of the appeal by filing an application in the appellate court with notice to the party in whose favor the attachment was issued or his surety or sureties, before the judgment of the appellate court becomes executory. The appellate court may allow the application to be heard and decided by the trial court.
Nothing herein contained shall prevent the party against whom the attachment was issued from recovering in the same action the damages awarded to him from any property of the attaching obligee not exempt from execution should the bond or deposit given by the latter be insufficient or fail to fully satisfy the award.
The dismissal of the case filed by the plaintiffs-appellees on July 11, 1959, had become final and executory before the defendant-appellee corporation filed its motion for judgment on the bond on September 7, 1959. In the order of the trial court, dismissing the complaint, there appears no pronouncement whatsoever against the surety bond. The appellee-corporation failed to file its proper application for damages prior to the termination of the case against it. It is barred to do so now. The prevailing party, if such would be the proper term for the appellee-corporation, having failed to file its application for damages against the bond prior to the entry of final judgment, the bondsman-appellant is relieved of further liability thereunder.
Endnotes:
* Designated Actimg Member per Special Order No. 1006 dated 10 June 2011.
1 Under Rule 45 of the Rules of Court.
2 Rollo, pp. 37-48. Penned by Associate Justice Edgardo P. Cruz with Associate Justices Fernanda Lampas Peralta and Normandie B. Pizarro concurring.
3 Id. at 50. Penned by Associate Justice Edgardo P. Cruz with Associate Justices Fernanda Lampas Peralta and Normandie B. Pizarro concurring.
4 Id. at 90-91, 92. Penned by Judge Maria Cristina J. Cornejo.
5 Young admitted Advent's ownership of the subject car. Id. at 159.
6 Docketed as Civil Case No. 01-1122.
7 Rollo, p. 66.
8 Id. at 155.
9 Id. at 156. In a Manifestation dated 8 August 2003, Young stated that he turned over the possession of the subject car to Atty. Gerald Soriano, an Associate of Advent's counsel Atty. Edgardo L. de Jesus.
10 Id. at 94-95. Atty. Johnny Y. Aruego, Jr. from the Office of the Rehabilitation Receiver wrote a letter, addressed to Verano Law Firm (Young's counsel), confirming that the subject car was indeed in the possession, control and custody of Atty. Danilo L. Concepcion.
11 Id. at 89.
12 Id. at 91.
13 Id. at 92.
14 Id. at 43-45.
15 Id. at 47.
16 259 Phil. 841 (1989).
17 Sec. 6. Stay Order. - If the court finds the petition to be sufficient in form and substance, it shall, not later than five (5) days from the filing of the petition, issue an Order (a) appointing a Rehabilitation Receiver and fixing his bond; (b) staying enforcement of all claims, whether for money or otherwise and whether such enforcement is by court action or otherwise, against the debtor, its guarantors and sureties not solidarily liable with the debtor; (c) prohibiting the debtor from selling, encumbering, transferring, or disposing in any manner any of its properties except in the ordinary course of business; x x x
18 Finasia Investments and Finance Corporation v. Court of Appeals, G.R. No. 107002, 7 October 1994, 237 SCRA 446, 450 cited in Panlilio v. Regional Trial Court, G.R. No. 173846, 2 February 2011.
19 Sec. 10 (Rule 60) Judgment to include recovery against sureties.
The amount, if any, to be awarded to any party upon any bond filed in accordance with the provisions of this Rule, shall be claimed, ascertained, and granted under the same procedure as prescribed in section 20 of Rule 57.
20 Carlos v. Sandoval, 508 Phil. 260, 277. .
21 Id. citing Paramount Insurance Corp. v. Court of Appeals, 369 Phil. 641 (1999).
22 Id.
23 CA rollo, p. 75. Young alleged in his Omnibus Motion that "In an Order dated 28 April 2005, the [trial court] dismissed the case on the ground of failure to prosecute. To date and despite the lapse of more than fifteen (15) days from notice, Advent has not moved for reconsideration."
24 No. L-16716, 28 April 1962, 4 SCRA 1210, 1215-1216.