Attachment.
SEC. 424. Attachment. — A plaintiff may, at the commencement of his action, or at any time afterwards, have the property of the defendant attached as security for the satisfaction of any judgment that may be recovered, unless the defendant gives security to pay such judgment, in the manner hereinafter provided, in the following cases:
1. In all the cases mentioned in section four hundred and twelve, providing for the arrest of a defendant. But the plaintiff must make an election as to whether he will ask for an order of arrest or an order of attachment; he shall not be entitled to both orders;
2. In an action against a defendant not residing in the Philippine Islands.
Who may issue order of attachment.
SEC. 425. Who may issue order of attachment. — An order for attachment may be granted by a judge of the Supreme Court or by a judge of the Court of First Instance for the province in which the action is pending, or by a justice of the peace in an action properly brought before his court.
Granting order of attachment.
SEC. 426. Granting order of attachment. — A judge or justice of the peace shall grant an order of attachment when it is made to appear to the judge or justice of the peace by the affidavit of the plaintiff, or of some other person who knows the facts that a sufficient cause of action exists, and that the case is one of those mentioned in section four hundred and twenty-four, and that there is no other sufficient security for the claim sought to be enforced by the action, and that the amount due to the plaintiff above all legal setoffs or counterclaims is as much as the sum for which the order is granted.
Obligation for damages in case of attachment.
SEC. 427. Obligation for damages in case of attachment. — Before the order is made, the party applying for it, or some person on his behalf, must execute to the defendant an obligation in an amount to be fixed by the judge, or justice of the peace, and with sufficient surety to be approved by him, which obligation shall be for a sum not less than two hundred dollars, and not exceeding the amount claimed by the plaintiff, that the plaintiff will pay all the costs which may be adjudged to the defendant, and all damages which he may sustain by reason of the attachment, if the same shall finally be adjudged to have been wrongful or without sufficient cause.
Executing order of attachment as to movables.
SEC. 428. Executing order of attachment as to movables. — The order of attachment shall be served by the officer of the court by attaching and safely keeping all the movable property of the defendant in the Philippine Islands, or so much thereof as may be sufficient to satisfy the plaintiff's demands, unless the defendant gives security by obligation to the plaintiff, with sufficient surety, to be approved by the judge who granted the order of attachment, in an amount sufficient to satisfy such demands besides costs, or in an amount equal to the value of the property which has been or is about to be attached. The property so attached shall be held to await final judgment in execution, unless released as provided in this section or in section four hundred and forty.
Executing order of attachment as to real property.
SEC. 429. Executing order of attachment as to real property. — Real property, standing upon the records in the name of the defendant or not appearing at all upon the record, shall be attached by filing with the registrar of titles of land, for the province in which the land is situated, a copy of the order of attachment, together with a description of the property attached, and a notice that it is attached, and by leaving a similar copy of the order, description, and notice with an occupant of the property, if there is one.
Real property or an interest therein, belonging to the defendant and held by any other person, or standing on the records in the name of any other person, shall be attached by filing with the registrar of land titles in the province in which the land is situated, a copy of the order of attachment, together with a description of the property, and a notice that such real property and any interest of the defendant therein, held by or standing in the name of such other person (naming him) are attached; and by leaving with the occupant, if any, and with such other person, or his agent, if known and within the province, a copy of the order, description, and notice. The registrar must index attachments filed under the first paragraph of this section, in the names, both of the plaintiff and of the defendant, and must index attachments filed under the second paragraph of this section, in the names of the plaintiff and of the defendant and of the person by whom the property is held or in whose name it stands on the records.
Executing Order of attachment as to stocks or shares.
SEC. 430. Executing Order of attachment as to stocks or shares. — Stocks or shares, or an interest in stocks or shares, of any corporation or company shall be attached by leaving with the president, or other head of the same, or the secretary, cashier, or other managing agent thereof, a copy of the order of attachment and a notice stating that the stock or interest of the defendant is attached in pursuance of such order.
Executing order of attachment as to debts and credits.
SEC. 431. Executing order of attachment as to debts and credits. — Debts and credits, and other personal property not capable of manual delivery, shall be attached by leaving with the person owing such debts or having in his possession or under his control, such credits and other personal property, a copy of the order of attachment, and a notice that the debts owing by him to the defendant, or the credits and other personal property in his possession or under his control, belonging to the defendant, are attached in pursuance of such order.
Effect of attachment of debts and credits.
SEC. 432. Effect of attachment of debts and credits. — All persons having in their possession or under their control any credits or other personal property belonging to the defendant, or owing any debts to the defendant at the time of service upon them of a copy of the order of attachment and notice as provided in the last section, shall be, unless such property be delivered up or transferred, or such debts be paid to the clerk of the court in which the action is pending, liable to the plaintiff for the amount of such credits, property, or debts, until the attachment be discharged, or any judgment recovered by him be satisfied.
Disposition of debts and credits attached.
SEC. 433. Disposition of debts and credits attached. — Any person owing debts to the defendant, or having in his possession or under his control any credits or other personal property belonging to the defendant, may be required to attend before the court in which the action is pending or before a referee appointed by the court, and be examined on oath respecting the same. The defendant may also be required to attend, for the purpose of giving information respecting his property, and may be examined on oath. The court may, after such examination, order personal property capable of manual delivery, belonging to the defendant, in the possession of the person so required to attend before the court, to be delivered to the clerk of the court on such terms as may be just, having reference to any liens thereon or claims against the same, to await the final result of the action.
Return of order of attachment.
SEC. 434. Return of order of attachment. — The officer of the court making the attachment shall indorse upon its back a full statement of all his proceedings under the order, including a complete inventory of the property attached, and sign the same, and shall return the order of attachment to the clerk of the court in which the action is pending to be filed with the other papers in the action.
Disposition of perishable property.
SEC. 435. Disposition of perishable property. — Whenever it shall be made to appear to the judge or the court in which the action is pending, by hearing, after notice to both parties if practicable, that the property attached is perishable, or that the interest of all the parties to the action will be subserved by the sale thereof, the judge may, on motion, order such property to be sold at public auction in such manner as he may direct, and the proceeds to be deposited in court to abide the judgment in the action.
Final disposition of property attached.
SEC. 436. Final disposition of property attached. — If judgment be recovered by the plaintiff, the officer of the court must cause the same to be satisfied, out of the property attached, if it be sufficient for that purpose, in the following manner:
1. By paying to the plaintiff the proceeds of all sales of perishable or other property sold by him in pursuance of the order of the judge, or so much as shall be necessary to satisfy the judgment;
2. If any balance remain due, and execution shall have been issued on the judgment, he shall sell under the execution so much of the property real or personal, as may be necessary to satisfy the balance, if enough for that purpose remain in his hands, or in that of the clerk of the court.
3. By collecting from all persons having in their possession credits belonging to the defendant, or owing debts to the defendant at the time of the service upon them of the order of attachment of such credits or debts, the amount of such credits and debts as determined by the court in the action, and stated in the final judgment, and paying the proceeds of such collection over the plaintiff.
The officer shall make return in writing to the court of his proceedings under this section.
Collections of balance of execution.
SEC. 437. Collections of balance of execution. — If, after realizing upon all the property attached, including the proceeds of any debts or credits collected, and applying the proceeds in extinguishment of the judgment, less the expenses of proceedings upon the judgment, any balance shall remain due, the officer of the court must proceed to collect such balance as upon an execution in other cases. Whenever the judgment shall have been paid, the officer, upon reasonable demand, must deliver over to the defendant the attached property remaining in his hands, and any proceeds of the property attached unapplied on the judgment.
Proceedings after return of execution unsatisfied.
SEC. 438. Proceedings after return of execution unsatisfied. — If the execution be returned unsatisfied, in whole or in part, the plaintiff may maintain an action upon the obligations, if any, given pursuant to section four hundred and twenty-eight.
Disposition of attached property in case of judgment for defendant.
SEC. 439. Disposition of attached property in case of judgment for defendant. — If the defendant recovers judgment against the plaintiff, all the proceeds of sales and money collected by the officer of the court, under the order of attachment, and all the property attached remaining in said officer's hands shall be delivered to the defendant, and the order of attachment discharged, and the defendant may have judgment against the plaintiff upon the obligation provided in section four hundred and twenty-seven, for any damages he may have sustained by reason of the attachment, after summary hearing in the same action on due notice.
Dissolution of order of attachment.
SEC. 440. Dissolution of order of attachment. — At any time, after the commencement of an action upon which an order of attachment has been made, the defendant may upon reasonable notice to the plaintiff, apply to the judge or justice of the peace who granted the order of attachment, or to the judge of the court in which the action is pending, for an order to discharge the attachment, wholly or in part; and the judge or justice of the peace shall, after hearing, on due notice to both parties, discharge the order of attachment provided the defendant shall execute an obligation to the plaintiff with surety to be approved by the judge, or justice of the peace, to the effect that in case the plaintiff recover judgment in the action, the defendant will, on demand, redeliver the attached property so released to the officer of the court, to be applied to the payment of the judgment, or, in default thereof, that the defendant and surety, will, on demand, pay to the plaintiff the full value of the property released. The judge or justice of the peace making such order may fix the sum for which the undertaking must be executed, and for that purpose may take such steps as he finds necessary to determine the value of the property attached, which obligation shall be filed with the other papers in the cause, and upon its approval by the judge or justice of the peace and the making of the order by him for a discharge of the attachment, all of the property so released, and all of the proceeds of the sales thereof, shall be delivered to the defendant, the obligation aforesaid standing in place of the property so released.
Discharge of attachment on motion.
SEC. 441. Discharge of attachment on motion. — The defendant may also at any time either before or after the release of the attached property or before any attachment shall have been actually levied, upon reasonable notice to the plaintiff, apply to the judge or justice of the peace who granted the order of attachment, or to the judge of the court in which the action is pending, for an order to discharge the attachment on the ground that the same was improperly or irregularly issued. If the motion be made on affidavits on the part of the defendant, but not otherwise, the plaintiff may oppose the same by affidavits or other evidence in addition to those on which the attachment was made.
If upon such application it satisfactorily appears that the writ of attachment was improperly or irregularly issued, it must be discharged.
Right of third party against officer.
SEC. 442. Right of third party against officer. — If the property taken be claimed by any other person than the defendant or his agent and such person make an affidavit of his title thereto or right to the possession thereof, stating the grounds of such right or title, and serve the same upon the officer while he has possession of the property, the officer shall not be bound to keep the property under the attachment, unless the plaintiff, on demand of him, or his agent, indemnify the officer against such claim by an obligation with two sufficient sureties; and no claim to such property or damage for its seizure by any other person than the defendant or his agent shall be valid against the officer unless so made, but nothing herein contained shall prevent such third person from vindicating his claim to the property by any proper action.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
