Galang vs. Court of Appeals

Galang vs. Court of Appeals annulment of judgment.
The purpose of annulment of judgment is to have the final and executory

Annulment of Judgements or Final Orders and Resolutions – When may be availed? judgment set aside so that there will be a renewal of litigation.
Facts:  The remedy to correct any alleged irregular implementation of the writ of execution thus lies
1. Entire capital stock of CGP Transportation and Services Corp. (CGP) was equally divided elsewhere. In Canlas v. Court of Appeals, we stated that “while there is no appeal from execution of
between the Galang family and the family of Lamberto C. Camaganakan, Jr. (Lamberto). judgment, appeal lies in case of irregular implementation of the writ.” As a rule, “irregular
2. Galangs sold their entire interest in the CGP to Lamberto. An action ensued between Galangs execution” means the failure of the writ to conform to the decree of the decision executed.
and Lamberto in the SEC. Parties later on entered into a Compromise Agreement. Thereafter,  In sum, in deciding this case, we have been ultimately governed by the fact that the rule on
SEC rendered a judgement by Compromise Agreement between the parties. annulment of judgment is grounded on equity; thus, the relief it affords is of an extraordinary
3. Almost a year thereafter, it was CGP’s turn to file a case before the SEC. CGP filed a petition character and not as readily available as the remedies obtaining a judgment that is not yet
for annulment of the compromise agreement claiming that Lamberto had no authority to final
involve it in the compromise agreement.
4. SEC held that the compromise agreement between the Galangs and Lamberto is enforceable Notes:
only against their respective shareholdings and not against the corporate assets and properties  What the Camaganakans should have done was to seek for clarification from the SEC as to the
of CGP. The dispositive portion of the SEC’s decision, however, mentioned Camaganakan inclusion of the “Camaganakan family” in the dispositive portion of the decision. However, as the
Family instead of Lamberto. Decision later on became final and executory. Writ records of the case are already before us, and in the interest of substantial justice in order to put this
Execution was later on issued. issue finally to rest, we will rule squarely on whether or not the SEC erroneously exercised
5. Ines, Belinda, Honorato, Marita, Aniceto, Cecilia and Antonio, all surnamed Camaganakan, jurisdiction over the Camaganakans who are non-parties to the case.
filed before the Court of Appeals a petition for annulment of judgment decision of the o In case of any ambiguity or uncertainty in the dispositive portion of a decision, the body of the
SEC. The Camaganakans alleged in their petition that the decision specifically commanded opinion may be referred to for purposes of construing the dispositive part of the judgment. The
the enforcement of the claims of the Galangs against their shares of stocks in CGP when dispositive part of the decision must find support in the body of the decision spelling out the
in truth and in fact they were not parties in SEC EB Case thus, said decision is void as to ratio decidendi. And, in the body of the decision, it is only Lamberto who is clearly referred to
them for lack of jurisdiction and for violation of their constitutional right to due process. as one of the main parties in the case.
6. CA rendered its decision nullifying the writ of execution issued except insofar as Lamberto is  This can only mean then, that when the SEC mentioned the “Camaganakan family” in the dispositive
concerned. MR having been denied. Hence, this petition. portion of the decision, it only referred to Lamberto Camaganakan, Jr. as he was the only
Camaganakan that had anything to do with the case.
Issue:
o Main Issue: Whether the CA erred in taking cognizance of the petition for annulment of
judgment of the SEC.
o Sub Issue: Assuming the CA has the jurisdiction, is the question raised by the Camaganakan in
the Petition for annulment of judgment correct?
Court’s Ruling:
Yes. Court of Appeals indeed erred as it is without jurisdiction to entertain a petition for annulment
of judgment of a final decision of the Securities and Exchange Commission. Rule 47 on annulment
of judgments is a new provision under the 1997 Rules of Civil Procedure albeit the remedy has long
been given imprimatur by the courts. It covers only the judgments or final orders and resolutions in
civil actions of Regional Trial Courts and not those of the SEC. In fact, Section 9 of Batas Pambansa
Blg. 129, as amended, only vests in the Court of Appeals “exclusive jurisdiction over actions for
annulment of judgments of Regional Trial Courts.”
 An action for annulment of judgment is a remedy in law independent of the case where the judgment
sought to be annulled is rendered. The concern that the remedy could so easily be resorted to as an
instrument to delay a final and executory judgment has prompted safeguards to be put in place in
order to avoid an abuse of the rule. Thus, among other things, the right to have a final judgment
annulled must be expressly granted by law.
o Unfortunately for the Camaganakans, the Revised Rules of Procedure in the SEC is silent as to
the remedy of annulment of judgments of its final orders and resolutions.
No. A perusal of the arguments would readily reveal that what is being questioned by the
Camaganakans is not the decision itself but how it was implemented. Any alleged irregular
implementation of a writ of execution, however, cannot be corrected through the equitable relief of

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Galang vs. Court of Appeals annulment of judgment.

The purpose of annulment of judgment is to have the final and executory

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