Professional Documents
Culture Documents
= Plaintiffs; = Defendants
Facts: In 1964, V.D. Isip, Sons & Associates
represented by Isip entered into a contract
with the City of Pasay represented by then
Mayor Pablo Cuneta. The contract entitled
"Contract
and
Agreement"
was
for
construction of a new Pasay City Hall at FB
Harrison St., Pasay city. Pursuant to the
contract, proceeded with the construction
of the new Pasay City Hall building.
accomplished various stages of construction
the amount of work equivalent to P1.7million
of the total contract price of P4.9million.
paid only the total amount of P1.1million
leaving an amount of P613,000. failed to
remit the amount to so latter filed for
specific performance with damages. The
parties arrived at a draft amicable
agreement which was submitted to the
Municipal Board of Pasay City for its
consideration.
In 1969, Municipal Board enacted Ordinance
No. 1012 wc approved the Compromise
Agreement . CFI approved the compromise
agreement. CFI issued writ of execution. An
application for and notice of garnishment
were effected upon the 's funds with the
Philippine Natl Bank (PNB).
filed motion to
quash the writ of
execution: a) Sheriff has no power to levy or
garnish on execution the general funds,
specially the trust funds of Pasay City.
CFI: denied and ordered enforcement of
garnishment.
So this suit.
Issue: WON Pasay city funds deposited with
PNB are exempt from execution or
garnishment? NO since ordinance already
appropriated the amount.
Held:
a. A
compromise
agreement
not
contrary to law, public order, public
policy, morals or good customs is a
valid contract wc is the law
between the parties themselves.
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