Banks, firms turn down court sheriff’s demand

Thursday, February 2, 2012

TWO government-run banks and two giant real estate firms turned down the demands of a court sheriff to satisfy the P133-million award the Cebu City Government owed the
heirs of a private lot supposedly used for a public road.

The Philippine Veterans Bank, Philippine Postal Savings Bank, SM Prime Holdings Inc. and Filinvest Land Inc. failed to deliver to the Rallos heirs the garnished amount, court sheriff Eugene Fuentes said in his report to Judge James Stewart Ramon Himalaloan.

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This came as Himalaloan, acting presiding judge of the Regional Trial Court Branch 9, denied the motion for reconsideration filed by the City Hall lawyers, who sought to halt the enforcement of the writ of execution and notice of garnishment issued to take money from the City’s bank accounts as payment for the money judgment.

“The court finds no meritorious or equitable ground to render the execution impossible and unjust so that it may be stayed. The alleged newly-discovered evidence of defendant (City Hall) is not a supervening event that transpired after judgment of the instant case has become final and executory,” Himalaloan ruled in his order.

The writ of execution and notice of garnishment stemmed from the court ruling ordering the City to pay the Rallos heirs at least P133.46 million for using the family’s property as road right-of-way since 1963 in Barangay Sambag 2.

The heirs have been demanding for the City to comply with the court order.

The Rallos heirs earlier picked the 9.7-hectare lot at the South Road Properties (SRP) to satisfy the P133-million award.

Auction

They even asked the court sheriff to put on public auction some of the SRP lots owned by the Cebu City Government valued at P10 million. The scheduled levy on Dec.13, 2011, however, was ordered canceled.

The Rallos heirs, in their pleading, sought the issuance of the certificate of title for the SRP lot, which is also known Lot 1-D and Lot 1-G.

In the report, Fuentes said, the Veterans Bank confirmed it has fund sufficient to satisfy the garnishment notice.

But when the bank received a communication from City Hall, the Veterans Bank told the sheriff that the City’s fund has been allocated “for certain projects.”

This, despite the fact that the Veterans Bank is one of the depository banks for money paid for the sale of the SRP.

The same reason was given by the Philippine Postal Bank why it refused to deliver the garnished amount.

Vague

Likewise, SM Prime Holdings refused to release the garnished amount and receivables due to City Hall, saying the notice of garnishment is “vague.”

Filinvest, on the other hand, withheld the release of receivables for Cebu City Hall worth P245 million on March 5.

Fuentes asked Himalaloan to issue an order directing Veterans Bank to deliver the award to the heirs.

In his order, Judge Himalaloan pointed out that despite the 1940 “convenio,” or contract cited by the defendant in its pleadings, the City Hall lawyers “did not take
it up while the instant case was still in the process of litigation.”

The judge also referred to the sheriff for resolution the City’s motion to quash and set aside the notice of public auction, as well as the pleading of the lot successors to issue and deliver to them the certificate of sale.