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Perla Compania de Seguros vs. Ramolete

The petitioner insurance company argued that a third party liability (TPL) insurance policy taken out by the owner of a vehicle involved in an accident could not be subject to garnishment by the plaintiff who obtained a judgment against the owner, since the insurance company was not a party to the original case. The court held that garnishment is a means to reach any property or credits owed to a judgment debtor, such as an insurance policy. The garnishee (insurance company) does not need to be made a party to the original case, and jurisdiction over the garnishee is obtained through service of the writ of garnishment, not through a summons. Therefore, a TPL insurance policy is subject to

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695 views1 page

Perla Compania de Seguros vs. Ramolete

The petitioner insurance company argued that a third party liability (TPL) insurance policy taken out by the owner of a vehicle involved in an accident could not be subject to garnishment by the plaintiff who obtained a judgment against the owner, since the insurance company was not a party to the original case. The court held that garnishment is a means to reach any property or credits owed to a judgment debtor, such as an insurance policy. The garnishee (insurance company) does not need to be made a party to the original case, and jurisdiction over the garnishee is obtained through service of the writ of garnishment, not through a summons. Therefore, a TPL insurance policy is subject to

Uploaded by

Oscar E Valero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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64.

PERLA COMPANIA DE SEGUROS, INC V RAMOLETE


G.R. No. L-60887 | November 13, 1991

Facts: A PUJ owned by Nelia Enriquez which was insured with TPL to Petitioner,
collided with a private jeep owned and driven by Calixto Palmes (husband of
Primitiva Palmes) who died due to said accident. Primitiva sued Nelia and her
driver before the CFI of Cebu. The CFI ruled in favor of Primitiva which became
final and executory. A writ of execution was issued, which however, returned
unsatisfied. Palmes then filed a motion for garnishment praying that an order of
garnishment be issued against the insurance policy issued by petitioner in favor of
the judgment debtor. Respondent Judge then issued an Order directing the
Provincial Sheriff to garnish the TPL insurance policy. Petitioner filed for MR and
quashal of the writ of garnishment on the ground that Perla was not a party to the
case. The trial court denied petitioners motion.
Issue: Whether or not TPL insurance policy may be subject to garnishment?
Held: Yes. Garnishment has been defined as a species of attachment for reaching
any property or credits pertaining or payable to a judgment debtor. In legal
contemplation, it is a forced novation by the substitution of creditors: the judgment
debtor, who is the original creditor of the garnishee is, through service of the writ
of garnishment, substituted by the judgment creditor who thereby becomes creditor
of the garnishee. Garnishment has also been described as a warning to a person
having in his possession property or credits of the judgment debtor, not to pay the
money or deliver the property to the latter, but rather to appear and answer the
plaintiffs suit.
In order that the trial court may validly acquire jurisdiction to bind the
person of the garnishee, it is not necessary that summons be served upon him.
The garnishee need not be impleaded as a party to the case. All that is
necessary for the trial court lawfully to bind the person of the garnishee or
any person who has in his possession credits belonging to the judgment debtor
is service upon him of the writ of garnishment.

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