8/18/2019 Hrs of Divinagracia v. Ruiz Digest
1/1
Hrs. of Santiago Divinagracia v. Judge Ruiz, Bombo Radyo
(2011
Doctrine! award of moral damages, exemplary damages and
attorneys fees, awarded as anincident to an intra-corporate case,
are exempt from the rule on immediate execution
"acts!
•
IN 1999, Santiago Divinagracia as stockholder of led a
derivative suit on !ehalf of "eoples#roadcasting Service
Incorporated $"#S% assailing a management contract entered into
!y"#S and #om!o &adyo
• 'ounterclaim( suit led !y Divinagracia was unfounded and
intended only to harass and
molest them, claimed for moral, exemplary damages and atty)s
fee*
• &+' acting as Special 'ommercial 'ourt dismissed the
Divinagracia)s complaint and granted
the counterclaim of "#S and #om!o &adyo* +he 'ourt further
ordered the eirs ofDivinagracia to pay "#S and #om!o "./0
• +he eirs led a notice of appeal with the &+' while
#om!o and "#S moved for immediate
execution* +he latter was granted !y the &+'
• eirs led petition under &ule . with '2* +hey argued that
the issuance of the writ of
execution !y the &+' was improper, considering that they had
already appealed the decisionto the '2* +he '2 in dismissing the
petition reasoned that Section 3 of &ule 1 of the Interim
&ules of "rocedure for Intra-'orporate 'ontroversies was
very explicit in providing that alldecisions rendered in
intra-corporate controversies shall !e immediately executory
#SS$%! &' mora) damages, e*em+)ary damages, and attorneys
fees, aarded as aresu)t of a counterc)aim in an intra-cor+orate
case, are immediate)y e*ecutory des+itete +endency of te a++ea) in
te main case/ '
H%D!
In 19 Septem!er 4//, the 'ourt en banc issued 2*5* No*
/1-4-/3-S' titled 6Re!
mendment of Section 3, Ru)e 1 of te #nterim Ru)es of 4rocedure
5overning#ntra-6or+orate 6ontroversies by 6)arifying tat Decisions
#ssued 4ursuant to SaidRu)e are #mmediate)y %*ecutory %*ce+t te
ards for 7ora) Damages, %*em+)aryDamages and ttorneys "ees, if
any.8
ence, Sec* 3 now reads(o S7'* 3* 7xecutory nature of decisions
and orders* 2ll decisions and orders issued
under these &ules shall immediately !e executory 78'7"+ +7
22&DS :;& 5;&2<D252=7S, 7875" D252=7S 2ND
2++;&N7>S :77S, I: 2N>* No appeal orpetition taken
therefrom shall stay the enforcement or implementation of
thedecision or order, unless restrained !y an appellate court*
Interlocutory orders shallnot !e su!?ect to appeal
+he issuance is retroactive as indisputa!ly, the amendment
of Section 3, &ule 1 of the
Interim &ules is procedural in character*
ell-settled is the rule that procedural laws are construed to !e
applica!le to actions
pending and undetermined at the time of their passage, and are
deemed retroactive in thatsense and to that extent
