The Municipality of Makati expropriated land from private respondents and was ordered to pay P5.29 million. The RTC garnished P4.96 million of Makati's funds in a PNB account to satisfy the judgment. Makati appealed, arguing public funds cannot be garnished without appropriation. The Supreme Court ruled that while public funds are generally exempt from execution, Makati must still pay the private respondents for the expropriated land it had been using. The Court ordered Makati to pay but did not allow garnishing over P99,000 from its account without appropriation.
The Municipality of Makati expropriated land from private respondents and was ordered to pay P5.29 million. The RTC garnished P4.96 million of Makati's funds in a PNB account to satisfy the judgment. Makati appealed, arguing public funds cannot be garnished without appropriation. The Supreme Court ruled that while public funds are generally exempt from execution, Makati must still pay the private respondents for the expropriated land it had been using. The Court ordered Makati to pay but did not allow garnishing over P99,000 from its account without appropriation.
The Municipality of Makati expropriated land from private respondents and was ordered to pay P5.29 million. The RTC garnished P4.96 million of Makati's funds in a PNB account to satisfy the judgment. Makati appealed, arguing public funds cannot be garnished without appropriation. The Supreme Court ruled that while public funds are generally exempt from execution, Makati must still pay the private respondents for the expropriated land it had been using. The Court ordered Makati to pay but did not allow garnishing over P99,000 from its account without appropriation.
G.R. Nos. 89898-99 October 1, 1990 Facts: Petitioner Municipality of Makati expropriated a portion of land owned by private respondents, Admiral Finance Creditors Consortium, Inc. After proceedings, the RTC of Makati determined the cost of the said land which the petitioner must pay to the private respondents amounting to P5,291,666.00 minus the advanced payment of P338,160.00. It issued the corresponding writ of execution accompanied with a writ of garnishment of funds of the petitioner which was deposited in PNB. However, such order was opposed by petitioner through a motion for reconsideration, contending that its funds at the PNB could neither be garnished nor levied upon execution, for to do so would result in the disbursement of public funds without the proper appropriation required under the law, citing the case of Republic of the Philippines v. Palacio.The RTC dismissed such motion, which was appealed to the Court of Appeals; the latter affirmed said dismissal and petitioner now filed this petition for review. Issue: Whether or not funds of the Municipality of Makati are exempt from garnishment and levy upon execution. Held: It is petitioner's main contention that the orders of respondent D I GE S T Y OU R L AW I'm a law student for awhile now and have a collection of case digests I've written. These digests are from Supreme Court decisions which I've read in whole (w/o the dissenting or separate opinions however). I made this with the hope of helping other law students in their study, but really digests are just a guide - the best way is reading the whole decision. Go see the Points in Cases! Love Law. A B OU T ME MADZARELLA A Filipina trying to live a God-centered life. VI EW MY COMPLETE PROFI LE S U B S C R I B E TO C A S E S I N P OI N T S A D D T H I S Share This 0
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Mag-sign in CAS ES I N P OI NT S C A S E D I GE S T S I ' V E WR I T T E N A S A L AW S T U D E N T F R OM P H I L I P P I N E S U P R E ME C OU RT D E C I S I ON S Posts Comments Newer Post Older Post RTC judge involved the net amount of P4,965,506.45, wherein the funds garnished by respondent sheriff are in excess of P99,743.94, which are public fund and thereby are exempted from execution without the proper appropriation required under the law. There is merit in this contention. In this jurisdiction, well-settled is the rule that public funds are not subject to levy and execution, unless otherwise provided for by statute. Municipal revenues derived from taxes, licenses and market fees, and which are intended primarily and exclusively for the purpose of financing the governmental activities and functions of the municipality, are exempt from execution. Absent a showing that the municipal council of Makati has passed an ordinance appropriating the said amount from its public funds deposited in their PNB account, no levy under execution may be validly effected. However, this court orders petitioner to pay for the said land which has been in their use already. This Court will not condone petitioner's blatant refusal to settle its legal obligation arising from expropriation of land they are already enjoying. The State's power of eminent domain should be exercised within the bounds of fair play and justice. . POSTED BY MADZARELLA AT 10:47 PM SHARETHI S SHARETHI S LABELS: MUNI CI PALI TY OF MAKATI VS. CA, MUNI CI PALI TY OF MAKATI VS. CA CASE DI GEST, PUBLI C CORPORATI ON LAW, TAX 1 NO COMMENTS: POST A COMMENT Enter your comment... Comment as: Google Account Publish Publish
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