S1 (11) Agustin Vs CA

G.R. No.
107846 April 18, 1997
LEOVILLO C. AGUSTIN, petitioner,
vs.
COURT OF APPEALS and FILINVEST FINANCE CORP., respondents.
RESOLUTION
FRANCISCO, J.:
This is an appeal by certiorari from the decision of respondent Court of Appeals in CA-G.R. No. 24684 1 which affirmed the
order of Regional Trial Court, Branch 40, Manila, in Civil Case No. 84804. 2
The dispute stemmed from an unpaid promissory note dated October 28, 1970, executed by petitioner Leovillo C. Agustin in
favor of ERM Commercial for the amount of P43,480.80. The note was payable in monthly installments 3 and secured by a
chattel mortgage over an Isuzu diesel truck, 4 both of which were subsequently assigned to private respondent Filinvest
Finance
Corporation.5 When petitioner defaulted in paying the installments, private respondent demanded from him the payment of
the entire balance or, in lieu thereof, the possession of the mortgaged vehicle. Neither payment nor surrender was made.
Aggrieved, private respondent filed a complaint with the Regional Trial. Court of Manila, Branch 26 (RTC Branch 26) against
petitioner praying for the issuance of a writ of replevin or, in the alternative, for the. payment of P32,723.97 plus interest at
the rate of 14% per annum from due date until fully paid.6 Trial ensued and, thereafter, a writ of replevin was issued by RTC
Branch 26. By virtue thereof, private respondent acquired possession of the vehicle. Upon repossession, the latter discovered
that the vehicle was no longer in running condition and that several parts were missing which private respondent replaced.
The vehicle was then foreclosed and sold at public auction.
Private respondent subsequently filed a "supplemental complaint" claiming additional reimbursement worth P8,852.76 as
value of replacement parts7 and for expenses incurred in transporting the mortgaged vehicle from Cagayan to Manila. In
response, petitioner moved to dismiss the supplemental complaint arguing that RTC Branch 26 had already lost jurisdiction
over the case because of the earlier extra-jurisdicial foreclosure of the mortgage. The lower court granted the motion and the
case was dismissed. Private respondent elevated the matter to the appellate court, docketed as CA-G.R. No. 56718-R, which
set aside the order of dismissal and ruled that repossession expenses incurred by private respondent should be
reimbursed.9 This decision became final and executory, hence the case was accordingly remanded to the Regional Trial Court
of Manila, Branch 40 (RTC Branch 40) for reception of evidence to determine the amount due from petitioner. 10 After trial,
RTC Branch 40 found petitioner liable for the repossession expenses, attorney's fees, liquidated damages, bonding fees and
other expenses in the seizure of the vehicle in the aggregate sum of P18,547.38. Petitioner moved for reconsideration. Acting
thereon, RTC Branch 40 modified its decision by lowering the monetary award to P8,852.76, the amount originally prayed for
in the supplemental complaint. 11 Private respondent appealed the case with. respect to the reduction of the amount
awarded. Petitioner, likewise, appealed impugning the trial court's order for him to pay private respondent P8,852.76, an
amount over and above the value received from the foreclosure sale. Both appeals were consolidated and in CA-G.R. No.
24684, the modified order of RTC Branch 40 was affirmed. Petitioner filed a motion for reconsideration, but to no
avail. 12 Hence, this petition for review on certiorari.
Petitioner contends that. the award of repossession expenses to private respondent as mortgagee is "contrary to the letter,
intent and spirit of Article 1484 13 of the Civil Code". 14 He asserts that private respondent's repossession expenses have been
amply covered by the foreclosure of the chattel mortgage, hence he could no longer be held liable. The arguments are devoid
of merit.
Petitioner's contentions, we note, were previously rejected by respondent court in its decision in CA-G.R No. 56718-R the
dispositive portion of which provides as follows:
WHEREFORE, the order dismissing the case is hereby set aside and the case is remanded to the lower court for reception of
evidence of 'expenses properly incurred in effecting seizure of the chattel (and) of recoverable attorney's fees in prosecuting
the action for replevin" as "repossession expenses" prayed for in the supplemental complaint, without pronouncement as to
costs. 15
which ruling has long acquired finality. It is clear, therefore, that the appellate court had already settled the propriety of
awarding repossession expenses in favor of private respondent. The remand of the case to RTC Branch 40 was for the sole
purpose of threshing out the correct amount of expenses and not for relitigating the accuracy of the award. Thus, the findings
of RTC Branch 40, as affirmed by the appellate court in CA-G.R. No. 24684, were confined to the appreciation of evidence
relative to the repossession expenses for the query or issue passed upon by the respondent court in CA-G.R. No. 56718-R
(propriety of the award for repossession expenses) has become the "law of the case". This principle is defined as "a term
applied to an established rule that when an appellate court passes on a question and remands the cause to the lower court for
further proceedings, the question there settled becomes the law of the case upon subsequent appeal." 16 Having exactly the
same parties and issues, the decision in the former appeal (CA-G.R. No. 56718-R) is now the established and controlling rule.
Petitioner may not therefore be allowed in a subsequent appeal (CA-G.R. No. 24684) and in this petition to resuscitate and
revive formerly settled issues. Judgment of courts should attain finality at some point in time, as in this case, otherwise, there
will be no end to litigation.
At any rate, even if we were to brush aside the "law of the case" doctrine we find the award for repossession expenses still
proper. In Filipinas Investment & Finance Corporation v. Ridad, 17 the Court recognized an exception to the rule stated under
Art. 1484(3) upon which petitioner relies. Thus:
. . . Where the mortgagor plainly refuses to deliver the chattel subject of the mortgage upon his failure to pay two or more
installments, or if he conceals the chattel to place it beyond the reach of the mortgagee, what then is the mortgagee expected
to do? . . . It logically follows as a matter of common sense, that the necessary expenses incurred in the prosecution by the
mortgagee of the action for replevin so that he can regain possession of the chattel, should be borne by the mortgagor.
Recoverable expenses would, in our view, include expenses properly incurred in effecting seizure of the chattel and reasonable
attorney's fees in prosecuting the action for replevin. 18
Anent the denial of the award for attorney's fees, we find the same in order. The trial court, as well as respondent court, found
no evidence to support the claim for; attorney's fees which factual finding is binding on us. 19 We find no compelling reason,
and none was presented, to set aside this ruling.
ACCORDINGLY, the petition is DENIED for lack of merit, and the decision of the Court of Appeals is hereby AFFIRMED in toto.
SO ORDERED.

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G.R. No.

107846 April 18, 1997

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