RULE 59

RECEIVERSHIP
 Receivership as a provisional remedy is available when the
property or fund, that is the subject of litigation, is in danger of being
lost, removed or materially injured.

Thus, it is not available in a suit for collection of a sum money

for the purpose of assuring collection of the debt.
Purpose of receivership

Receivership is aimed at the preservation of, and at making more secure, existing
rights.

It cannot be used as an instrument for the destruction of those rights.

Who is a receiver?

A receiver is a person appointed by the court in behalf of all the parties to the action
for the purpose of preserving and conserving the property in litigation and prevent
its possible destruction or dissipation, if it were left in the possession of any of the
parties. The appointment of a receiver is not a matter of absolute right.
CASES THAT JUSTIFY THE
APPOINTMENT OF A RECEIVER:
1. When the subject of the action is property or fund, in danger of being
lost, removed or materially injured.

2. Foreclosure of mortgage

-when property is in danger of being dissipated or

materially injured; or

-where receivership is stipulated in the contract of

mortgage
3. When there is already a judgment and receivership is applied for to aid
execution.

-when execution returned unsatisfied

-when judgment obligor refuses to apply his property
in satisfaction of the judgment

4. Pending appeal but receiver is necessary to preserve property during

pendency.

5. In other cases, when the appointment of the receiver is justified, it being

the most convenient and feasible means of preserving or disposing the
property under litigation.
WHO SHOULD BE APPOINTED AS RECEIVER?

GR: Person indifferent to the parties, impartial and disinterested in the

proceedings

Ex: A party maybe appointed – if with consent of the other party and upon
order of the court, provided that both interest will be equally protected.

WHO MAY GRANT RECEIVERSHIP?

1. Court where action is pending

2. CA or any member
3. SC or any member
REQUISITES FOR THE
APPOINTMENT OF A RECEIVER:
1. verified application
2. applicant must have interest in the property of funds
3. applicant must show that property or fund is in danger of being lost or
destroyed – there is need to preserve
4. notice of hearing
5. applicant’s bond
6. receiver’s bond
7. receiver must take oath
Two kinds of bonds

A. The bond required before appointment of a receiver; and

B. The bond required of a receiver before entering upon his duties. Another
bond is the one which the court may require, at any time after the
appointment of the receiver as further security for damages.
HOW OPPOSE APPLICATION FOR THE
APPOINTMENT OF A RECEIVER:

1. File a bond, executed to the applicant, in an amount to be fixed by the

court.

2. Show that appointment was obtained without sufficient cause.

GENERAL POWERS OF A RECEIVER
1. To bring and defend actions in his own name in his capacity as receiver;
2. To take and keep possession of the property subject of the controversy;
3. To receive rents;
4. To collect debts due to himself as a receiver or to the fund, property,
estate, persons or corporation of which he is the receiver;
5. To compound and compromise the same;
6. To make transfers;
7. To pay outstanding debts;
8. To divide the money and property that shall remain among the persons
legally entitled to receive the same;
9. Generally, to do such acts respecting the property as the court may
authorize.
Liability of persons who neglect or refused to deliver
the property to receiver:

1. contempt of court

2. liable for the money or property (neglected or refused

to be surrendered) together with all damages
Termination of receivership

Whenever the court, motu proprio or on motion of either party, shall determine
that the necessity for a receiver no longer exists, it shall, after due notice to all
interested parties and hearing, settle the accounts of the receiver, direct the
delivery of the funds and other property in his possession to the person adjudged
to be entitled to receive them and order the discharge of the receiver from further
duty as such.

The court shall allow the receiver such reasonable compensation as the
circumstances of the case warrant, to be taxed as costs against the defeated party,
or apportioned, as justice requires.
RULE 60

REPLEVIN
Replevin

- is both a form of principal remedy and of a

provisional relief. It may refer either to the action
itself, i.e., to regain the possession of personal chattels
being wrongfully detained from the plaintiff by
another, or to the provisional remedy that would allow
the plaintiff to retain the thing during the pendency of
the action and hold it pendent lite.
Nature of an action for replevin
The action is primarily possessory in nature and generally determines nothing
more than the right of possession. Replevin is so usually described as a mixed
action, being partly
In rem and partly in personam.

In rem- insofar as the recovery of specific property is concerned, and in

personam as regards to damages involved.

As an "action in rem," the gist of the replevin action is the right of the plaintiff
to obtain possession of specific personal property by reason of his being the
owner or of his having a special interest therein.
When to apply?

A party praying for the recovery of possession of personal

property may, at the commencement of the action or at any
time before answer, apply for an order for the delivery of such
property to him, in the manner hereinafter provided.

The applicant need not be the owner of the property. It is

enough that he has a right to its possession.
PROCEDURE FOR THE APPLICATION FOR REPLEVIN

The applicant must show by his own affidavit or that of some other person who personally knows
the facts:

(a) That the applicant is the owner of the property claimed, particularly describing it, or is entitled
to the possession thereof;

(b) That the property is wrongfully detained by the adverse party, alleging the cause of detention
thereof according to the best of his knowledge, information, and belief ;

(c) That the property has not been distrained or taken for a tax assessment or a fine pursuant to law,
or seized under a writ of execution or preliminary attachment, or otherwise placed under custodia
legis, or if so seized, that it is exempt from such seizure or custody; and

(d) The actual market value of the property.

Remedy of the adverse party:

If the adverse party objects to the sufficiency of the applicant's bond, or of the
surety or sureties thereon, he cannot immediately require the return of the
property.

If he does not so object, he may, at any time before the delivery of the
property to the applicant, require the return thereof, by filing with the court
where the action is pending a bond executed to the applicant, in double the
value of the property as stated in the applicant's affidavit for the delivery
thereof to the applicant, and for the payment of such sum, to him as may be
recovered against the adverse party, and by serving a copy of such bond on the
applicant.
Sheriff’s duty in the implementation of the writ:

Upon receiving such order, the sheriff must serve a copy thereof on the adverse party,
together with a copy of the application, affidavit and bond, and must forthwith take the
property, if it be in the possession of the adverse party, or his agent, and retain it in his
custody.

If the property or any part thereof be concealed in a building or enclosure, the sheriff
must demand its delivery, and if it be not delivered, he must cause the building or enclosure
to be broken open and take the property into his possession.

After the sheriff has take possession of the property as herein provided, he must keep it
in a secure place and shall be responsible for its delivery to the party entitled thereto upon
receiving his fees and necessary expenses for taking and keeping the same.
Duty of the sheriff upon seizure of property under replevin:

The rules provide that property seized under a writ of replevin is not to be delivered
immediately to the plaintiff. Under Section 6, Rule 60, the Sheriff should have waited no
less than 5 days in order to give the complainant an opportunity to object to the sufficiency
of the bond.

If within five (5) days after the taking of the property by the sheriff, the adverse party
does not object to the sufficiency of the bond, or of the surety or sureties thereon; or if the
adverse party so objects and the court affirms its approval of the applicant's bond or
approves a new bond, or if the adverse party requires the return of the property but his bond
is objected to and found insufficient and he does not forthwith file an approved bond, the
property shall be delivered to the applicant. If for any reason the property is not delivered to
the applicant, the sheriff must return it to the adverse party.
 The sheriff shall not be liable for damages, for the taking or keeping of such
property, to any such third-party claimant if such bond shall be filed. Similarly, nothing
shall prevent such claimant or any third person from vindicating his claim to the
property, or prevent the applicant from claiming damages against a third-party claimant
who filed a frivolous or plainly spurious claim, in the same or a separate action.

When the writ of replevin is issued in favor of the Republic of the Philippines, or
any officer duly representing it, the filing of such bond shall not be required, and in
case the sheriff is sued for damages as a result of the replevin, he shall be represented
by the Solicitor General, and if held liable therefor, the actual damages adjudged by
the court shall be paid by the National Treasurer out of the funds to be appropriated for
the purpose.
 RULE 61

SUPPORT PENDENTE LITE

SUPPORT PENDENTE LITE
- is a proceeding where the amount of support is provisionally fixed by the court
in favor of the person or persons entitled thereto during the pendency of an action
for support or any applicable principal action.

WHO MAY APPLY?

- by any party, not only the plaintiff, as long as there are legal grounds to
support such application.

WHEN TO APPLY?
- at the commencement of the proceedings; or
- at any time prior to the judgment or final order
PROCEDURE:

1. Filing of verified application – stating the grounds and financial

conditions of both parties.

2. Other party will be required to submit verified comment.

3. Application shall be set for hearing not more 3 days after the filing of
the comment. (Support pendent lite cannot be granted ex-parte).

4. If granted: Court shall fix the amount to be provisionally paid.

If denied: the principal case shall be tried and decided as early as
possible.
Enforcement of the Order

If the party does not comply, an order of execution shall be issued

(either motu proprio or upon motion). He may likewise be liable for
contempt.

Even a third person may also obtain a writ of execution provided:

(1) there is notice and hearing; (2) such third party furnish support to
the applicant because of failure of the party ordered by the court to give
support.

RESTITUTION – with legal interest (should the court found the person
giving support not liable.