50. PAQUITO V. ANDO vs. ANDRESITO Y. CAMPO, ET AL.
, AUTHOR: K
G.R. No. 184007, February 16, 2011 Notes:
TOPIC: Charges upon and obligations of CPG, FC 121, 122,
123
PONENTE: NACHURA, J.
CASE LAW/ DOCTRINE: Since he was sued in a representative capacity, and not in his personal capacity, the property
could not be made to answer for the judgment obligation of the corporation. The property was registered not only in the
name of petitioner but also of his wife. She stands to lose the property subject of execution without ever being a party
to the case. This will be tantamount to deprivation of property without due process.
EMERGENCY RECIT: When judgment against Ando, in his capacity as President, was rendered and a Notice of Sale on
Execution of Personal Property over the property in the name of Paquito V. Ando x x x married to Erlinda S. Ando was
issued, Ando filed TRO but was denied. He argued that the property belonged to him and his wife, not to the
corporation, and, hence, could not be subject of the execution sale. SC held that it was wrong to include the property
since it belongs to petitioner and his wife.
FACTS:
Ando was the president of Premier Allied and Contracting Services, Inc. (PACSI), an independent labor
contractor. Campo, et.al, were hired by PACSI as pilers or haulers tasked to manually carry bags of sugar from
the warehouse of Victorias Milling Company and load them on trucks.
Campo et. al. were dismissed from employment. They filed a case for illegal dismissal and some money claims
with the National Labor Relations Commission (NLRC), Regional Arbitration Branch No. VI, Bacolod City.
LA: in favor of respondent. PACSI and petitioner were directed to pay a total of P422,702.28, representing
respondents separation pay and the award of attorneys fees. This became final and Campo, et.al. moved for its
execution.
NLRC Acting Sheriff Romeo Pasustento issued a Notice of Sale on Execution of Personal Property over the
property in the name of Paquito V. Ando x x x married to Erlinda S. Ando.
Ando filed for TRO - claimed that the property belonged to him and his wife, not to the corporation, and, hence,
could not be subject of the execution sale. Since it is the corporation that was the judgment debtor, execution
should be made on the latters properties.
RTC: denied. CA: certiorari but denied.
ISSUE(S): WON the property owned by the husband and wife could be levied for the debt incurred by the husband (in his
representative capacity and company)? No.
RATIO:
Petitioner claims that the property sought to be levied does not belong to PACSI, the judgment debtor, but to him and
his wife. Since he was sued in a representative capacity, and not in his personal capacity, the property could not be
made to answer for the judgment obligation of the corporation.
The TCT of the property bears out that, indeed, it belongs to petitioner and his wife. Thus, even if we consider petitioner
as an agent of the corporation and, therefore, not a stranger to the case such that the provision on third-party claims
will not apply to him, the property was registered not only in the name of petitioner but also of his wife. She stands to
lose the property subject of execution without ever being a party to the case. This will be tantamount to deprivation of
property without due process.
The power of the NLRC, or the courts, to execute its judgment extends only to properties unquestionably belonging to
the judgment debtor alone
A sheriff, therefore, has no authority to attach the property of any person except that of the judgment debtor. Likewise,
there is no showing that the sheriff ever tried to execute on the properties of the corporation.
