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Manacop vs.

Equitable PCIBank
GR No. 162814-17 Aug. 2005
Nature: Petition for Review on Certiorari of a decision of Court of Appeals
FACTS:
Lavine Loungewear Manufacturing Inc. insured its buildings and supplies against fire with several
insurance companies. All policies provides that loss, if any, under the policy is payable to Equitable
Banking Corp., Greenhills Branch subject to terms, conditions, clauses and warranties. On Agust 1, 1998
a fire gutted Lavine’s buildings and their contents thus claims were made against the policies amounting
to P112, 245, 324.34.
Lavine is represented by Chandru Pessumal in negotiating with the insurance companies.
Notwithstanding Chandru’s request that payments be made first to Lavine who shall thereafter pay
Equitable Bank, certain insurance companies released the proceeds directly to Equitable Bank. Thus,
Chandru filed a Petition for Issuance of Writ of Preliminary Injunction with Prayer for Temporary
Restraining Order (TRO) before RTC Pasig City against PhilFire, Rizal Surety, Tabacalera Insurance, First
Lepanto and Equitable Bank.
The board of directors of Lavine moved to intervene claiming that they were the incumbent directors.
The trial court granted the Motion for Intervention and rendered its judgment in favor of the plaintiff
through intervenors.
The intervenors filed a Motion for Execution pending appeal on the grounds that : (a) Tabacalera
Insurance was on the brink of insolvency (b) Lavine was in imminent danger of extinction (c) any appeal
from the trial court’s judgment would be merely dilatory. The trial judge granted the execution pending
appeal. Meanwhile Equitable Bank and Lavine filed a Petition for Certiorari with TRO and Writ of
Preliminary Injunction before the Court of Appeals. The Court of Appeals rendered judgment lifting the
order of levy and garnishment of the properties and deposits of the insurance companies and denied
Equitable Bank’s Motion to Disqualify Judge Lavina. Hence this case.
ISSUE: Is an execution pending appeal be granted if the prevailing party is a corporation?
RULING: No, an execution pending appeal cannot be granted where the winning party is a corporation. A
juridical entity’s existence cannot be likened to a natural person. Its precarious financial condition is not
by itself a compelling circumstance warranting immediate execution and also does not outweigh the
long standing general policy of enforcing only final and executory judgment.

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