Vl, Damages |. Mitigation of Damages INTERNATIONAL SCHOOL, INC. v. CA GR 181109 | June 29, 1999 FACTS: On Feb. 14, 1996, the RTC of QC rendered a decision ina civil case entitled Sps. Alex and Ophelia Torralba v, Intemational School, Inc. (Manila), Or. Rodney C. Hermes, Noli Reloj and Danilo de Jes.s involving a ‘Complaint for Damages due to the death of Sps. Torralba’s only son, Ericson Torralba while in the ‘custody of ISM and its officers NB: In Aug. 1991, Freshman Ericson Torralba collapsed while taking the swimming competency test; Co-defendant Noli Reloj is ISM's swimming coach]. The dispositive portion of the said decision reads: WHEREFORE, Judgment is hereby rendered finding defendant International School (Mani, nc. able to pay Blaintis, the followings 4. The sum of [PAM] as and for Moral damages; 2. The amount of P1M] by way of Exemplary damages; S. The amount of 2M] as Actual damages, 4, The sum of P300K] as and for Attomney’s fees and 5. To pay the costs. ‘The complaint against the individual defendants is DISMISSED for insufficiency of evidence. Lkewise, the Counterclaim is DISMISSED for lack of merit, ‘SO ORDERED, ISM appealed to the CA. During the pendency thereof, the Sps. Torralba filed a motion for execution pending appeal before the RTC on the grounds that the appeal is merely dilatory and that the filing of a band is another good reason for the execution of a judgment pending appeal. Said motion was opposed by ISM However, the BIC granted execution pending anneal upon the posting of a bond in the amount of PSM by the Sps. Torralba. The next day, pursuant to such Writ of Execution Pending Appeal, a Notice of Gamishment of ISM's bank deposits at Citibank was served by the Deputy Sherif to Citibank. In the meantime, ISM filed a ‘motion for reconsideration or for approval of supersedeas bond in the amount of P5.6M on July 23, 1996, (On July 25, 1996, the FITC issued an order directing Citibank to release to the Deputy Sheriff in cash or ‘check the amount of P5.5M, subject of the aforementioned Notice of Gamishment. The following day, the ‘Sps. Torralba fled an urgent ex parte motion to encash and receive the proceeds of the Citibank Manager's check representing the amount gamished in execution, However, on July 29, 1996, ISM fled an urgent motion to stop delivery of gamished funds to the Sps. Torralba. On Aug. 2, 1996, the RTC issued an order suspending the execution process there being no oppostion fied in relation thereto and pending resolution f reconsi (or for approval of supersedeas bond}. The Sps. Torralba then fled an ‘opposition to ISM's motion for reconsideration. ‘Attempts to have the order of execution pending appeal set aside having proved futile and the offer of supersedeas bond having been rejected by the RTC, ISM filed a petition for certiorari hefore the CA. ISM ‘sought the nulification of the assailed orders for having been issued in excess of jurisdiction and with grave abuse of discretion. However, the CA denied due course and cismissed the petition for ack of merit, finding that the grounds relied upon by the RTC in granting the execution pending appeal (.°. that ISM's appeal is merely diatory and the fling of a bond constitute good reasons to execute pending appeal) were sufficient justifications to grant the execution of the RTC decision pending appeal. Hence, this petition.Vl, Damages |. Mitigation of Damages ISSUE: WIN the CA erred in finding that the RTC did pat commit any GADLEW in granting execution pending appeal of its decision. - YES. HELD: Finally, we note that the writ of execution pending appeal covered the moral and exemplary damages adjudged by the RTC against ISM. In this regard, we likewise reproduce what was said in Radio Communications of the Philippines, Inc. (RCP) vs. Lantin, et al. that awards for moral and exemplary damages cannot be the subject of execution pending appeal, under the following rationale: ‘The execution of any award for moral and exemplary damages is dependent on the outcome of the main case nike the actual damages for which the petitioners may clearly be held lable if they breach a speciic contract ‘and the amounts of which are fixed and certain, lables with respect to moral and exemplary damages as well as the exact amounts remain uncertain and indefinite pending resolution by the Intermediate Appelate Court nd everualy te Supreme Court. The estenoe fhe facta bases of tee yes of rages ad th ca ‘elation to the petitoners act Itis possible that the pattones, ate al, whie lable fractal damages may not be lable for moral and exemplary camages. O asin ‘some cases elevated to the Supreme Cau, the awards may be reduced, Much as we appreciate the predicament of the bereaved parents, however, this Court is of the opinion that the genera uo til ns appicaton in the estan’ case, oer words the CA.commlled teria or a the WHEREFORE, the petition is granted and the assailed decisions of the Court of Appeals are hereby REVERSED and SET ASIDE. The writ of execution issued by the lower court pursuant to its order of June 19, 1996 is hereby ANNULLED,