G.R. Nos. 89898-99 – 268 Phil. 215 – 190 SCRA 206 – Political Law – Constitutional Law – State Immunity From Suit – Execution Against the State
In 1986, Makati expropriated the property of Admiral Finance Creditors Consortium, Inc. (AFCCI). Makati opened a bank account with PNB from where the payment to AFCCI may be withdrawn once just compensation was determined. In 1987, just compensation was determined to be Php5.2M. However, Makati failed to pay. AFCCI moved for execution and the court issued a writ of execution against the bank account of Makati with PNB.
It turns out that Makati has two accounts with PNB. One that has only Php99k and the other has Php170M.
ISSUE: Whether or not all accounts must be garnished.
HELD: No. Only the account that was opened by Makati for purposes of payment of just compensation which is the account containing Php99k.
The other account containing Php170M is exempt from garnishment as they appear to be public funds needed for the operation of Makati. Public funds are not subject to levy and execution, unless otherwise provided for by statute. Absent a showing that the municipal council of Makati has passed an ordinance appropriating from its public funds an amount corresponding to the balance due under the RTC decision.
