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[A.M. OCA IPI No. 02-53-CA-J. May 5, 2003]

LITONJUA vs. CA

EN BANC

Gentlemen:

Quoted hereunder, for your information, is a resolution of this Court dated MAY 5 2003.

A.M. OCA IPI No. 02-53-CA-J (Antonio K. Litonjua vs. Court of Appeals Justices Juan Q. Enriquez, Jr. and Bernardo Abesamis.)

On February 12, 1993, American Realty Corporation (ARC) through its president, Eduardo K. Litonjua, filed a complaint for damages against Bank of America (BA) with Branch 159, Regional Trial Court (RTC) of Pasig.The RTC rendered a decision on May 12, 1995 in favor of ARC, ordering BA to pay actual and compensatory damages in the amount of P99,000,000 and exemplary damages in the amount of P5,000,000.

On appeal to the Court of Appeals (CA), said decision was affirmed in toto.This Court, however, modified the CA's decision reducing the exemplary damages from P5,000,000 to P50,000.Said decision became final on April 3, 2000.The entry of judgment was made thereafter and the case was remanded to the court of origin.

On November 20, 2000, ARC acting through its president Eduardo K. Litonjua and assisted by counsel William Veto, entered into a compromise agreement with BA, whereby the amounts awarded in the judgment of this Court were offset against the other claims of BA against ARC.A copy of this compromise agreement was submitted to this Court but not to the RTC.On December 15, 2000, ARC filed a "Satisfaction of Judgment" with this Court on the basis of said compromise agreement.

On March 5, 2001, Aurelio Litonjua, together with complainant herein Antonio K. Litonjua entered their personal appearance before the RTC and filed a Motion for the Execution of Judgment, which was opposed by BA because they were not parties to the case and the case was between the corporation and not individual persons.Said motion was later withdrawn by Antonio and Aurelio Litonjua.However, on April 6, 2001, Antonio and Aurelio, now on behalf of and as officers of ARC, filed another Motion for Execution of the decision rendered by this Court.Hence, the RTC granted the issuance of the Writ of Execution and authority to break open doors in the implementation thereof in an order dated April 20, 2001.

On April 24, 2001, ARC represented by Eduardo Litonjua, Sr., and Eduardo Litonjua, Jr., filed a Petition for Prohibition before the Court of Appeals, contesting the issuance of said writ.They alleged that a compromise agreement had been entered into between ARC and BA regarding BA's liabilities to ARC.They averred that the satisfaction of judgment had already been executed as a result thereof and filed with this Court.

On April 26, 2001, BA likewise filed a Petition for Prohibition before the Court of Appeals contesting the issuance of the Writ of Execution on the same ground as that of ARC.Meanwhile, on April 24 and June 25, 2001, a Temporary Restraining Order and Preliminary Injunction, respectively, were issued by the CA stopping the execution of the judgment of the lower court.This resolution was penned by respondent Justice Juan Q. Enriquez, Jr., and concurred in by Justices Presbitero Velasco and Bienvenido Reyes.

On August 7, 2001, finding no grave abuse of discretion on the part of the lower court, the CA dismissed the Petition for Prohibition and dissolved the writ of Preliminary Injunction, holding that the issue of satisfaction of judgment, not having been raised at the RTC level, could not be raised in the Court of Appeals for the first time.This was contained in a Decision penned by respondent Justice Enriquez Jr., and concurred in by Justices Presbitero Velasco and Ruben T. Reyes.

On October 2, 2001, acting on the motion for reconsideration of BA, the Special Eleventh Division of the CA rendered an Amended Decision, again penned by respondent Justice Enriquez Jr., and concurred in by Justices Delilah Vidallon-Magtolis and Ruben T. Reyes.The said amended decision granted BA's Motion for Reconsideration and set aside its decision dated August 7, 2001.It further enjoined the implementation and enforcement of the Writ of Execution issued by the RTC until the validity and efficacy of the compromise agreement shall have been determined.Pertinent points of the amended decision of the CA are as follows:

a) While it found in its original decision that as a general rule the execution of a final and executory judgment is a matter of right, the same can admit of exceptions citing Bachrach Corp. v. Court of Appeals. [1] cralaw

b) The lower court should have acted with caution when the matter of the compromise agreement was brought up at the time Antonio K. Litonjua and Aurelio K. Litonjua filed their "Entry of Appearance and Motion for Execution of Judgment."

c) The existence of a compromise agreement, which is in effect a consensual agreement perfected upon the meeting of the minds of the parties, becomes binding upon the parties even if not approved by the court, citing therein Mayuga v. Court of Appeals. [2] cralaw

d) There appears to be two groups claiming rightfully representation in the case, the group of Eduardo Litonjua, Jr., and the group of brothers Antonio K. Litonjua and Aurelio K. Litonjua.

e) Therefore, there being two groups claiming the right to represent ARC and considering the existence of a compromise agreement, the trial court should have deferred the execution and determined these two issues to prevent an unjust and inequitable situation where a judgment debtor would be made to pay twice for an obligation which may turn out to have been satisfied.

On July 8, 2002, complainant Antonio K. Litonjua filed a complaint before this Court against respondents herein, Justices Juan Q. Enriquez, Jr., and Bernardo Abesamis.He alleged therein the following offenses purportedly committed in two cases pending before the Special Eleventh Division of the CA, namely American Realty Corporation versus Honorable Rodolfo Bonifacio and Antonio K. Litonjua and Aurelio K. Litonjua (C.A. GR SP No. 64419) and Bank of America v. Hon. Rodolfo Bonifacio and American Realty Corporation (C.A. GR No. 64449):

1.Grave Misconduct on the part of Justice Enriquez in demanding money from him in order to facilitate the release of the resolution of the case;

2. Grave Misconduct on the part of Justices Enriquez and Abesamis in knowingly frustrating the execution of the Writ of final Decision despite the Supreme Court's Entry of Judgment, in issuing a Temporary Restraining Order (TRO) and Preliminary Injunction stopping the execution of the judgment in the case before the RTC.

3. Grave Misconduct and Gross Ignorance of the Law due to Justice Enriquez' deliberate refusal to resolve the six pending motions listed in his Affidavit-Complaint for an unreasonable length of time;

4. Justice Abesamis participated by acting as a power broker and influence-peddler, and engaging in the practice of case-fixing.

Complainant Litonjua claims that after the issuance of the TRO and Preliminary Injunction stopping the implementation of the Writ of Execution issued by the RTC, he received a call from Justice Enriquez, requesting to see him at his office at the CA.Complainant Litonjua obliged and met Justice Enriquez at his office, who apologized to him for the issuance of the TRO and Preliminary Injunction.Justice Enriquez allegedly told him that he had a commitment with Justice Abesamis, who represented the interests of the officers of ARC and BA.Furthermore, Justice Enriquez allegedly told him that the group that Justice Abesamis represented was very influential and had prepared a big amount of money for mobilization and judicial expenses.Finally, Justice Enriquez assured him that since he was the ponente, the resolution of the case could be facilitated if a mobilization and judicial fund was available.They then arrived at a sum of P1.5 million.

Subsequently, the Decision lifting the TRO and Preliminary Injunction was promulgated on August 7, 2001.This allegedly came after complainant's full payment of the abovementioned amount.On October 21, 2001, however, the Special Eleventh Division of the CA granted the Motion for Reconsideration filed by BA of its original Decision, setting aside said Decision and enjoining the RTC from enforcing and implementing the Writ of Execution until it shall have determined the validity and efficacy of the compromise agreement.

Complainant also accused Justices Enriquez and Abesamis of deliberately refusing to resolve the Motion for Reconsideration and the series of six motions he filed from December 5, 2001 to April 15, 2002.

When Justice Enriquez submitted his Counter-Affidavit to the Complaint, he stated that the Amended Decision was not his decision alone, but that of the whole Eleventh Division composed of Justice Vidallon-Magtolis and Justice Ruben Reyes.He mentioned that Justice Reyes made some corrections on his draft and even suggested that it be called Amended Decision.

On the basis of these statements, complainant Litonjua herein filed a Supplemental complaint against Justice Reyes for incompetence, gross negligence, grave misconduct and gross ignorance of the law.

From the foregoing, it appears that complainant's sole basis for the complaint against Justice Reyes was the mention made by Justice Enriquez that Justice Reyes participated in the making of the Decision.From this, complainant concluded that there was a conspiracy to prevent the execution of the judgment of the Supreme Court, and Justice Reyes was part of this conspiracy.

Complainant does not allege any other overt act on the part of Justice Reyes that would constitute the acts complained of.The sole fact that Justice Reyes participated in the deliberation of the case cannot constitute an act that could be interpreted as a misconduct.It is his duty to participate in the deliberation of the cases before his division.The statement of Justice Enriquez in his Counter-Affidavit that the promulgation of any resolution and decision in the Eleventh Division is participated in by the other Justices including Justice Reyes does not mean that he was part of any alleged conspiracy.

The tenor of the Counter-Affidavit of Justice Enriquez was not one of implication of participation in the alleged misdeeds.He was merely making a statement of fact that indeed resolutions and decisions in a collegial body are arrived at with the participation of its members.

The Court Resolved to REFER the Complaint in this case to Retired Supreme Court Associate Justice Carolina C. Gri�o-Aquino for evaluation and/or investigation, report and recommendation.The Court further resolved to DISMISS the Supplemental Complaint.

Very truly yours,

(Sgd.)LUZVIMINDA D. PUNO
Clerk of Court



Endnotes:

[1] cralaw 296 SCRA 487 (1998).

[2] cralaw 154 SCRA 309 (1987).


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