CASE DIGEST : Yau vs Manila Banking Corp

 G.R. No. 126731               July 11, 2002

ESTEBAN YAU, petitioner,

vs.

THE MANILA BANKING CORPORATION,respondent.

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G.R. No. 128623

THE MANILA BANKING CORPORATION, petitioner,

vs.

ESTEBAN YAU, THE COURT OF APPEALS (SEVENTEENTH DIVISION), and the HON. DELIA H. PANGANIBAN, in her capacity as the Presiding Judge of the Regional Trial Court of Makati City, Branch 64, respondents.

FACTS: Esteban Yau is the judgment creditor of Ricardo C. Silverio, Sr. by virtue of a Decision3 of the Regional Trial Court of Cebu City. The decision became final and executory and, accordingly, a writ of execution was issued on September 17, 1992. Despite service of the writ and demand by the sheriff for the satisfaction of the judgment, the defendants therein, including Silverio, failed to pay said judgment. However, at the time of the execution sale on December 29, 1992, the Silverio share was already subject to a prior levy pursuant to separate writs of preliminary attachment at Regional Trial Court of Makati City. On February 11, 1993, Yau filed separate motions to intervene9 in both cases pending before Branches 62 and 64 of the RTC of Makati City. In an Order10 dated March 29, 1993, Branch 62 denied the motion to intervene. Branch 64, on the other hand, granted Yau’s motion to intervene in Civil Case No. 90-271 in an Order dated July 1, 1993.11 Manilabank sought reconsideration12 but Branch 64 denied the same in an Order13 dated August 30, 1993. Hence, Manilabank interposed a petition for certiorari14 before the Court of Appeals (CA), docketed as CA-G.R. SP No. 32405. Yau filed in Civil Case No. CEB-2058 before the RTC Cebu City, (Branch 6) a motion for order directing Manila Golf to issue a certificate in his name.16 Acting upon the motion, the said court issued an Order dated March 6, 1995. Without filing a motion for reconsideration, Manilabank filed on May 2, 1995 a petition for certiorari19 before the CA, docketed as CA-G.R. SP No.37085, assailing issuance of the Order of RTC Cebu City dated March 6, 1995, and amended on March 30, 1995. On April 29, 1996, the CA rendered a Decision20 in CA-G.R. SP No. 37085 nullifying the Orders of RTC Cebu City. Subsequently, on January 9, 1997, the CA rendered a Decision23 in CA-G.R. SP No. 32405 sustaining the Order of RTC Makati City (Branch 64) dated July 1, 1993, which allowed the intervention of Yau in Civil Case No. 90-271.1âwphi1 A Motion for Reconsideration24 of the said Decision was denied by the CA on March 13, 1997.25

ISSUE :WON Yau may be permitted to intervene

HELD: A person may, before or during trial, be permitted by the Court in its discretion to intervene in an action, if he has legal interest in the matter in litigation, or in the success of either of the parties, or an interest against both, or when he is so situated as to be adversely affected by a distribution or other disposition of property in the custody of the court or of an officer thereof. It is recognized that a judgment creditor who has reduced his claim to judgment may be allowed to intervene and a purchaser who acquires an interest in property upon which an attachment has been levied may intervene in the underlying action in which the writ of attachment was issued for the purpose of challenging the attachment. Lastly, on the matter of allowing the intervention after trial, suffice it to state that the rules now allow intervention "before rendition of judgment by the trial court."After trial and decision in a case, intervention can no longer be permitted. The permissive tenor of the provision on intervention shows the intention of the Rules to give to the court the full measure of discretion in permitting or disallowing the same.