IV. IV. J APPOINTMENT COMMODITIES STORAGE & ICE PLANT CORPORATION, SPOUSES VICTOR & JOHANNAH TRINIDAD, petitioners, vs . COURT OF APPEALS, JUSTICE PEDRO A. RAMIREZ, CHAIRMAN and FAR EAST BANK & TRUST COMPANY FACTS: RECEIVERSHIP, SECTION !"#$ GUIDING PRINCIPLE - A petition for receivership under Section 1 (b) of Rule 59 requires that the property or fund which is the subject of the the acti action on ust ust be in dan! dan!er er of loss loss"" reov eoval al or ate ateri rial al inju injury ry whic which h necessitates protection or preservation# $he !uidin! principle is the prevention prevention
of iinent iinent dan!er to the property property# %f an action by its nature" does not require such protection or preservation" said reedy cannot be applied for and !ranted#
APPOINTM APPOINTMENT ENT OF RECEIVER RECEIVER$$ MUST BE E%ER E%ERCISE CISED D ITH E%TREME E%TREME CAUT CAUTIO ION N ' $he power to appoint a receiver ust be e&ercised e&ercised with e&tree caution# $here ust be a clear showin! of necessity therefor in order to save the plai plaint nti' i' fro fro !rav !rave e and and irr irreed eedia iabl ble e loss loss or daa daa!e !e # %t is only when the circu circusta stanc nces es so deand deand"" either either becaus because e there there is iin iinent ent dan!e dan!err that that the property sou!ht to be placed in the hands of a receiver be lost or because they run the ris of bein! ipaired" endeavourin! to avoid that the injury thereby caused be !reater than the one sou!ht to be avoided#
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RECEIVER$ DEFINITION - A receiver is a person appointed by the court in
behalf of all the parties to the action for the purpose of preservin! and conservin! the property in liti!ation and prevent its possible destruction or dissi dissipat patio ion" n" if it wer were left left in the the poss posses essi sion on of any any of the the part partie ies# s# $he $he appointent of a receiver is not a atter of absolute ri!ht# %t depends upon the sound discretion of the court and is based on facts and circustances of each particular case#
RECEIVER$ A PERSON INDIFFERENT TO THE PARTIES PARTIES - $he !eneral !eneral rule is that neither party to a liti!ation should be appointed as receiver without the consent of the other because a receiver should be a person indi'erent to the parties and should be ipartial and disinterested# $he disinterested# $he receiver is not the representative of any of the parties but of all of the to the end that their interests ay be equally protected with the least possible inconvenience and e&pense#
A.$S/
0etitioner spouses ictor and 2ohannah $rinidad obtained a loan fro respondent ar 3ast 4an $rust .opany to 6nance the purchase of the Sta# 7aria %ce 0lant .old Stora!e in Sta# 7aria" 4ulacan# $he loan was secured by a ort!a!e over the ice plant and the land on which the ice plant stands# 0etitioner spouses failed to pay their loan# $he ban e&trajudicially foreclosed the ort!a!e and the ice plant was sold by public biddin!# Respondent ban was the hi!hest bidder# %t re!istered the certi6cate of sale and later too possession of the property# 0etitioners 6led .ivil .ase a!ainst respondent ban before the Re!ional $rial .ourt for daa!es" accountin! and 6&in! of redeption period# As a provisional reedy" petitioners 6led an 8r!ent 0etition for Receivership#8 0etitioners alle!ed that respondent ban/ a# too possession of the ice plant forcibly and without notice to the: b# that their occupation resulted in the destruction of petitioners; 6nancial and accountin! records ain! it ipossible for the to pay their eployees and creditors: c# the ban has failed to tae care of the ice plant with due dili!ence such that the plant has started eittin! aonia and other to&ic refri!erant cheicals into the atosphere and was posin! a ha
*+ $he petitioner is entitled to the prov re of receivership# =3,/ +*??? Section 1 of Rule 59 of the Revised Rules of .ourt provides that/ (b) >hen it appears fro the coplaint or answer" and such other proof as the jud!e ay require" that the party applyin! for the appointent of receiver has an interest in the property or fund which is the subject of the action" and that such
property or fund is in dan!er of bein! lost" reoved or aterially injured unless a receiver be appointed to !uard and preserve it: 0etitioners clai that the appointent of a receiver is justi6ed under Section 1 (b) of Rule 59# $hey ar!ue that the ice plant which is the subject of the action was in dan!er of bein! lost" reoved and aterially injured because of the followin! 8iinent perils8/ 8@#1 an!er to the lives" health and peace of ind of the inhabitants livin! near the Sta# 7aria %ce 0lant: @# rastic action or sanctions that could be brou!ht a!ainst the plainti' by a'ected third persons" includin! worers who have clais a!ainst the plainti' but could not be paid due to the nubin! anner by which the defendant too the Sta# 7aria %ce 0lant: @#B $he rapid reduction of the %ce 0lant into a scrap heap because of evident incopetence" ne!lect and vandalis#8 C1BD A petition for receivership under Section 1 (b) of Rule 59 requires that the property or fund which is the subject of the action ust be in dan!er of loss" reoval or aterial injury which necessitates protection or preservation# T() *+dn*
-n/-0) 1 2() -)3)n24n 45 66n)n2 dan*) 24 2() -4-)27. I5 an a/24n "7 21 na2+), d4)1 n42 )8+) 1+/( -42)/24n 4 -)1)3a24n, 1ad )6)d7 /ann42 ") a--0)d 54 and *an2)d. %n the instant case" we do not 6nd the necessity for the appointent of a receiver# 0etitioners have not suEciently shown that the Sta# 7aria %ce 0lant is in dan!er of disappearin! or bein! wasted and reduced to a 8scrap heap#8 +either have they proven that the property has been aterially injured which necessitates its protection and preservation# C15D In 5a/2, a2 2() ()an* 4n )1-4nd)n2 "an91 6424n 24 d1611, )1-4nd)n2 "an9, 2(4+*( /4+n1)0, 6an5)12)d n 4-)n /4+2 2(a2 2() 0)a9 n 2() /) -0an2 (ad a0)ad7 "))n )6)d)d and 2(a2 n4 42() 0)a9a*)1 (ad "))n )-42)d 1n/). C1@D $his stateent has not been disputed by petitioners#
A2 2() 26) 2() 2a0 /4+2 11+)d 2() 4d) 54 )/)3)1(- 45 2() -4-)27, 2() -4"0)6 (ad "))n )6)d)d and 2()) ;a1 n4 66n)n2 dan*) 45 an42() 0)a9a*). >hatever dan!er there was to the counity and the environent had already been contained# $he 8drastic sanctions8 that ay be brou!ht a!ainst petitioners due to their inability to pay their eployees and creditors as a result of 8the nubin! anner by which Crespondent banD too the ice plant8 d4)1 n42 /4n/)n 2() /) -0an2 21)05 # T()1) /0a61 a) 2() -)14na0 0a"02)1 45 -)224n)1 2()61)03)1. T()7 d4 n42 /4n122+2) <6a2)a0 n=+7< 24 2() /) -0an2.
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BAR 2017 2*+ S+*> obtained a loan fro the %R*+ 4A+G * 4RA*S (4A+G) to 6nance the purchase of +*R$= >A,, %.3 0,A+$ wherein the forer ort!a!ed the plant and the land where the plant is# or failure to pay the loan" the 4A+G foreclosed the ice plant# $he 4A+G won the biddin! and re!istered the plant in its nae# 2*+ S+*> 6led a civil case a!ainst the 4A+G for daa!es and accountin! with a prayer for an appointent of receiver# 2*+ S+*> posits that he is entitled to a receiver because the ice plant which is the subject of the action was in dan!er of bein! lost" reoved and aterially injured because of the 8iinent perilH of action or sanctions that could be brou!ht a!ainst the plainti' by a'ected third persons" includin! worers who have clais a!ainst the plainti' but could not be paid due to the nubin! anner by which the defendant too the +*R$= >A,, %.3 0,A+$# %f you are the jud!e" will you !rant 2*+ S+*>Is petitioner for receiver shipJ State your reasons (99K)
