Alias Writs of Execution: The Second Chance at Debt Collection and Your Limited Options

G.R. No. 255252, December 04, 2023

Imagine a scenario where a court has ruled against you, ordering you to pay a significant sum. You thought the matter was settled after the initial attempt to collect, but then, out of the blue, another writ of execution surfaces, demanding payment once again. This is where the concept of an alias writ of execution comes into play. Can this happen? When can this happen? And how can you stop it?

This case, Governor Gwendolyn Garcia-Codilla vs. Hongkong and Shanghai Banking Corp., Ltd., clarifies the rules surrounding alias writs of execution, emphasizing that once a judgment becomes final, the winning party has a right to its execution, and the court has a ministerial duty to enforce it. The case also highlights the limited grounds for opposing such a writ.

Understanding Writs of Execution in the Philippines

A writ of execution is a court order instructing a sheriff to enforce a judgment. It’s the mechanism by which a winning party can actually recover what they’ve been awarded in court. An alias writ of execution is essentially a second (or subsequent) attempt to enforce the same judgment, typically issued when the original writ has expired or been returned unsatisfied.

The relevant rules are found in Rule 39 of the Rules of Court. Section 8 outlines the form and contents of a writ of execution, requiring it to:

• Issue in the name of the Republic of the Philippines.
• State the court, case number, and the judgment’s dispositive portion.
• Instruct the sheriff to enforce the writ.
• Specifically state the amount of interest, costs, damages, rents, or profits due as of the date of the issuance of the writ, aside from the principal obligation under the judgment.

Critically, once a judgment is final, the issuance of a writ of execution becomes a ministerial duty of the court. This means the court must issue the writ upon request of the winning party.

Example: Let’s say a small business wins a lawsuit against a client who failed to pay for services rendered. The court orders the client to pay PHP 500,000. The business obtains a writ of execution, but the sheriff is unable to collect the full amount because the client has no readily available assets. If the original writ expires, the business can request an alias writ to make another attempt at collecting the debt.

The Garcia-Codilla vs. HSBC Case: A Detailed Look

This case revolves around a debt incurred by Governor Gwendolyn Garcia-Codilla with Hongkong and Shanghai Banking Corp., Ltd. (HSBC) stemming from a credit facility obtained for her business, GGC Enterprises and GGC Shipping.

Here’s a breakdown of the key events:

• Garcia obtained a credit line from HSBC to finance the purchase of a cargo barge.
• Garcia defaulted on the payments.
• HSBC filed a lawsuit and obtained a favorable judgment.
• The Supreme Court affirmed the judgment with modifications.
• HSBC moved for a Writ of Execution, which was granted.
• After unsuccessful attempts to serve the writ, HSBC requested, and was granted, an Alias Writ of Execution.
• Garcia then filed an Urgent Motion to Quash the Alias Writ, arguing it violated her due process rights.

The Regional Trial Court (RTC) denied Garcia’s motion, and the Court of Appeals (CA) affirmed the RTC’s decision. Ultimately, the Supreme Court upheld the CA’s ruling.

The Supreme Court emphasized that:

“[T]he prevailing party is entitled as a matter of right to a Writ of Execution and its issuance is the trial court’s ministerial duty. When a prevailing party files a motion for execution of a final and executory judgment, it is not mandatory for such party to serve a copy of the motion to the adverse party and to set it for hearing. The absence of such advance notice to the judgment debtor does not constitute an infringement of due process.”

The Court also noted that Garcia failed to demonstrate any valid grounds for quashing the alias writ.

“[Garcia] can point to no specific error in the amount under the Alias Writ issued by the trial court. She does not even claim that the legal and accumulated interest was improperly calculated and merely objects to the ‘staggering amount’ indicated in the writs.”

What This Means for You: Practical Implications

This case underscores the difficulty in preventing the issuance and enforcement of an alias writ of execution once a judgment has become final. It reinforces the ministerial duty of the courts to issue such writs upon request of the winning party. Thus, debtors must diligently perform their payment obligations.

Key Lessons:

• Final Judgments Are Enforceable: A final judgment is not just a piece of paper; it carries the full force of the law.
• Limited Grounds for Opposition: The grounds for quashing a writ of execution are very limited.
• Due Process Considerations: While due process is paramount, it doesn’t necessarily require notice and hearing for every motion related to execution of a final judgment.

Hypothetical Example: If a contractor fails to complete a construction project and is sued by the homeowner, resulting in a final judgment ordering the contractor to pay damages. If the contractor refuses to pay, the homeowner can obtain a writ of execution. If the sheriff is unable to collect, the homeowner can obtain an alias writ. The contractor’s options to prevent this second attempt are severely restricted unless they can prove the debt has already been satisfied or that the writ was issued improperly.

Frequently Asked Questions (FAQs)

Q: What is the difference between a writ of execution and an alias writ of execution?

A: A writ of execution is the initial order to enforce a judgment. An alias writ is a subsequent writ issued when the original writ has expired or been returned unsatisfied.

Q: Can I stop an alias writ of execution?

A: It is difficult, but possible, if you can demonstrate valid grounds for quashing it, such as full payment of the debt, a change in circumstances making the execution inequitable, or that the writ was issued improperly.

Q: Do I have to be notified before an alias writ of execution is issued?

A: Generally, no. The issuance of a writ of execution is considered a ministerial duty of the court, and notice is not always required.

Q: What happens if I ignore a writ of execution?

A: The sheriff can seize your assets to satisfy the judgment. It’s crucial to take the matter seriously and seek legal advice immediately.

Q: What if the amount in the writ of execution is incorrect?

A: You should immediately file a motion to quash or modify the writ, pointing out the specific errors in the calculation of the debt.

Q: Is there a time limit for enforcing a judgment?

A: Yes, a judgment can only be enforced within five (5) years from the date of its entry.

ASG Law specializes in debt recovery and civil litigation. Contact us or email hello@asglawpartners.com to schedule a consultation.