Sunday, June 24, 2012

Vlasons Enterprises vs. Court of Appeals


Facts: Florencio Sosuan purchased two pieces of salvaged bronze propeller from Lo Bu. Thereafter, he filed a civil action in the CFI of Manila for the recovery of possession of the same against Lo Bu and also against persons from whom Lo Bu purchased the same, Alfonso Calixto and Ernesto Valenzuela; and alternatively against Vlasons Enterprises.

A few months before, the same propellers had been seized by virtue of a search warrant issued by another branch of the CFI of Manila presided over by Judge Maceren. It was issued at the instance of Vlasons Enterprises who claimed that a certain Calixto stole the propellers from their vessel that sunk in Bataan. The complaints for theft against Calixto and Valenzuela, as well as the complaint for  Anti-Fencing against Sosuan, were dismissed.

Upon Sosuan’s motion in the civil action for recovery, Judge Cruz authorized Sosuan to take possesson of the propellers pending action. The order pointed out that no criminal action had been filed in connection with the seizure of the propellers in question.

Issues: Whether Judge Cruz erred in 1) authorizing the release of the propellers considering that it was under the custody of Judge Maceren’s court; 2) in ordering the transfer of the propellers to Sosuan pending action?

Held: 1) NO. Where personalty has been seized under a search warrant, and it appears reasonably definite that the seizure will not be followed by the filing of any criminal action for the prosecution of the offenses in connection with which the warrant was issued, the public prosecutors having pronounced the absence of basis therefor, and there are, moreover, conflicting claims asserted over the seized property, the appropriate remedy is the institution of an ordinary civil action by any interested party, or of a special civil action of interpleader by the Government itself. 

The ordinary action and the interpleader are cognizable not only by the court issuing the search warrant (in this case Judge Maceren’s branch) but by any other competent court to which it may be assigned by raffle. In such a case, the seizing court shall transfer custody of the seized articles to the court having jurisdiction of the civil action at any time, upon due application by an interested party. Thus, it was proper for Judge Cruz to order the transfer of the propeller’s to his branch. There is no conflict of jurisdiction because there was no pending criminal action and Judge Maceren’s court was merely acting as custodian of the seized property.

This case is different from the Pagkalinawan case. In Pagkalinawan the same property was being seized at the same time by different courts upon different writs: one by search warrant, the other by writ of seizure issued in a replevin action. There was then a palpable and real conflict in jurisdiction. And the Pagkalinawan ruling was laid down precisely to avoid that conflict in jurisdiction. In the instant case, however, since it was fairly certain that no criminal action could possibly ensue subsequent to or in connection with the search warrant, no such conflict in jurisdiction or in the ultimate disposition of the seized property could be expected to arise.

2) YES. The absence of any criminal prosecution in the Maceren Branch in relation to the propeller has no relevance whatever to the question of whether or not in the civil suit before the Cruz Branch the plaintiff, who claims to be the owner of the propeller, is entitled to its possession pending action as against defendant Vlasons, who also claims to be the owner thereof. Non sequitur. It merely makes necessary the civil suit to precisely resolve that issue. It does not of itself furnish basis for or warrant the transfer of possession from one party to the other in the civil action.

Nothing in the record therefore justifies the Order of Judge Cruz transferring possession of the property in controversy to the plaintiff pendente lite. That relief can be awarded only after trial, by final judgment declaring in whom the title to said property rests. What may be done in the meantime, as already above pointed out, is simply the transfer by the Maceren Branch, upon proper application, of custody over the property to the Cruz Branch, there to await the outcome of the suit




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