B. Preliminary Attachment (Rule 57)

U. Provisional Remedies (part 1 of 3)

• Preliminary Attachment – Rule 57
• Preliminary Injunction and Temporary Restraining Order – Rule 58
• Replevin – Rule 60

> RULE 57 PRELIMINARY ATTACHMENT Section 1. Grounds upon which attachment may issue. – At the commencement of the action or at any time before entry of judgment, a plaintiff or any proper party may have the property of the adverse party attached as security for the satisfaction of any judgment that may be recovered in the following cases:

(a) In an action for the recovery of a specified amount of money or damages, other than moral and exemplary, on a cause of action arising from law, contract, quasi-contract, delict or quasi- delict against a party who is about to depart from the Philippines with intent to defraud his creditors;

(b) In an action for money or property embezzled or fraudulently misapplied or converted to his own use by a public officer, or an officer of a corporation, or an attorney, factor, broker, agent, or clerk, in the course of his employment as such, or by any other person in a fiduciary capacity, or for a willful violation of duty;

(c) In an action to recover the possession of property unjustly or fraudulently taken, detained or converted, when the property, or any part thereof, has been concealed, removed, or disposed of to prevent its being found or taken by the applicant or an authorized person;

(d) In an action against a party who has been guilty of a fraud in contracting the debt or incurring the obligation upon which the action is brought, or in the performance thereof;

(e) In an action against a party who has removed or disposed of his property, or is about to do so, with intent to defraud his creditors; or

(f) In an action against a party who does not reside and is not found in the Philippines, or on whom summons may be served by publication. (1a) Section 2. Issuance and contents of order. – An order of attachment may be issued either ex parte or upon motion with notice and hearing by the court in which the action is pending, or by the Court of Appeals or the Supreme Court, and must require the sheriff of the court to attach so much of the property in the Philippines of the party against whom it is issued, not exempt from execution, as may be sufficient to satisfy the applicant’s demand, unless such party makes deposit or gives a bond as hereinafter provided in an amount equal to that fixed in the order, which may be the amount sufficient to satisfy the applicant’s demand or the value of the property to be attached as stated by the applicant, exclusive of costs. Several writs may be issued at the same time to the sheriffs of the courts of different judicial regions. (2a) Section 3. Affidavit and bond required. – An order of attachment shall be granted only when it appears by the affidavit of the applicant, or of some other person who personally knows the facts, that a sufficient cause of action exists, that the case is one of those mentioned in section 1 hereof, that there is no other sufficient security for the claim sought to be enforced by the action, and that the amount due to the applicant, or the value of the property the possession of which he is entitled to recover, is as much as the sum for which the order is granted above all legal counterclaims. The affidavit, and the bond required by the next succeeding section, must be duly filed with the court before the order issues. (3a) Section 4. Condition of applicant’s bond. – The party applying for the order must thereafter give a bond executed to the adverse party in the amount fixed by the court in its order granting the issuance of the writ, conditioned that the latter will pay all the costs which may be adjudged to the adverse party and all damages which he may sustain by reason of the attachment, if the court shall finally adjudge that the applicant was not entitled thereto. (4a) Section 5. Manner of attaching property. – The sheriff enforcing the writ shall without delay and with all reasonable diligence attach, to await judgment and execution in the action, only so much of the property in the Philippines of the party against whom the writ is issued, not exempt from execution, as may be sufficient to satisfy the applicant’s demand, unless the former makes a deposit with the court from which the writ is issued, or gives a counter-bond executed to the applicant, in an amount equal to the bond fixed by the court in the order of attachment or to the value of the property to be attached, exclusive of costs. No levy on attachment pursuant to the writ issued under section 2 hereof shall be enforced unless it is preceded, or contemporaneously accompanied, by service of summons, together with a copy of the complaint, the application for attachment, the applicant’s affidavit and bond, and the order and writ of attachment, on the defendant within the Philippines. The requirement of prior or contemporaneous service of summons shall not apply where the summons could not be served personally or by substituted service despite diligent efforts, or the defendant is a resident of the Philippines temporarily absent therefrom, or the defendant is a non-resident of the Philippines, or the action is one in rem or quasi in rem. (5a) Section 6. Sheriff’s return. – After enforcing the writ, the sheriff must likewise without delay make a return thereon to the court from which the writ issued, with a full statement of his proceedings under the writ and a complete inventory of the property attached, together with any counter-bond given by the party against whom attachment is issued, and serve copies thereof on the applicant. (6a) Section 7. Attachment of real and personal property; recording thereof. – Real and personal property shall be attached by the sheriff executing the writ in the following manner: (a) Real property, or growing crops thereon, or any interest therein, standing upon the record of the registry of deeds of the province in the name of the party against whom attachment is issued, or not appearing at all upon such records, or belonging to the party against whom attachment is issued and held by any other person, or standing on the records of the registry of deeds in the name of any other person, by filing with the registry of deeds a copy of the order, together with a description of the property attached, and a notice that it is attached, or that such real property and any interest therein held by or standing in the name of such other person are attached, and by leaving a copy of such order, description, and notice with the occupant of the property, if any, or with such other person or his agent if found within the province. Where the property has been brought under the operation of either the Land Registration Act or the Property Registration Decree, the notice shall contain a reference to the number of the certificate of title, the volume and page in the registration book where the certificate is registered, and the registered owner or owners thereof. The registrar of deeds must index attachments filed under this section in the names of the applicant, the adverse party, or the person by whom the property is held or in whose name it stands in the records. If the attachment is not claimed on the entire area of the land covered by the certificate of title, a description sufficiently accurate for the identification of the land or interest to be affected shall be included in the registration of such attachment; (b) Personal property capable of manual delivery, by taking and safely keeping it in his custody, after issuing the corresponding receipt therefor; (c) Stocks or shares, or an interest in stocks or shares, of any corporation or company, by leaving with the president or managing agent thereof, a copy of the writ, and a notice stating that the stock or interest of the party against whom the attachment is issued is attached in pursuance of such writ; (d) Debts and credits, including bank deposits, financial interest, royalties, commissions and other personal property not capable of manual delivery, by leaving with the person owing such debts, or having in his possession or under his control, such credits or other personal property, or with his agent, a copy of the writ, and notice that the debts owing by him to the party against whom attachment is issued, and the credits and other personal property in his possession, or under his control, belonging to said party, are attached in pursuance of such writ; (e) The interest of the party against whom attachment is issued in property belonging to the estate of the decedent, whether as heir, legatee, or devisee, by serving the executor or administrator or other personal representative of the decedent with a copy of the writ and notice that said interest is attached. A copy of said writ of attachment and of said notice shall also be filed in the office of the clerk of the court in which said estate is being settled and served upon the heir, legatee or devisee concerned. If the property sought to be attached is in custodia legis, a copy of the writ of attachment shall be filed with the proper court or quasi-judicial agency, and notice of the attachment served upon the custodian of such property. (7a) Section 8. Effect of attachment of debts, credits and all other similar personal property. – All persons having in their possession or under their control any credits or other similar personal property belonging to the party against whom attachment is issued, or owing any debts to him, at the time of service upon them of the copy of the writ of attachment and notice as provided in the last preceding section, shall be liable to the applicant for the amount of such credits, debts or other similar personal property, until the attachment is discharged, or any judgment recovered by him is satisfied, unless such property is delivered or transferred, or such debts are paid, to the clerk, sheriff, or other proper officer of the court issuing the attachment. (8a) Section 9. Effect of attachment of interest in property belonging to the estate of a decedent. – The attachment of the interest of an heir, legatee, or devisee in the property belonging to the estate of a decedent shall not impair the powers of the executor, administrator, or other personal representative of the decedent over such property for the purpose of administration. Such personal representative, however, shall report the attachment to the court when any petition for distribution is filed, and in the order made upon such petition, distribution may be awarded to such heir, legatee, or devisee, but the property attached shall be ordered delivered to the sheriff making the levy, subject to the claim of such heir, legatee, or devisee, or any person claiming under him. (9a) Section 10. Examination of party whose property is attached and persons indebted to him or controlling his property; delivery of property to sheriff. – Any person owing debts to the party whose property is attached or having in his possession or under his control any credit or other personal property belonging to such party, may be required to attend before the court in which the action is pending, or before a commissioner appointed by the court, and be examined on oath respecting the same. The party whose property is attached 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 him, in the possession of the person so required to attend before the court, to be delivered to the clerk of the court or sheriff on such terms as may be just, having reference to any lien thereon or claim against the same, to await the judgment in the action. (10a) Section 11. When attached property may be sold after levy on attachment and before entry of judgment. – Whenever it shall be made to appear to the court in which the action is pending, upon hearing with notice to both parties, that the property attached is perishable, or that the interests of all the parties to the action will be subserved by the sale thereof, the court may order such property to be sold at public auction in such manner as it may direct, and the proceeds of such sale to be deposited in court to abide the judgment in the action. (11a) Section 12. Discharge of attachment upon giving counter-bond. – After a writ of attachment has been enforced, the party whose property has been attached, or the person appearing on his behalf, may move for the discharge of the attachment wholly or in part on the security given. The court shall, after due notice and hearing, order the discharge of the attachment if the movant makes a cash deposit, or files a counter-bond executed to the attaching party with the clerk of the court where the application is made, in an amount equal to that fixed by the court in the order of attachment, exclusive of costs. But if the attachment is sought to be discharged with respect to a particular property, the counter-bond shall be equal to the value of that property as determined by the court. In either case, the cash deposit or the counter-bond shall secure the payment of any judgment that the attaching party may recover in the action. A notice of the deposit shall forthwith be served on the attaching party. Upon the discharge of an attachment in accordance with the provisions of this section, the property attached, or the proceeds of any sale thereof, shall be delivered to the party making the deposit or giving the counter-bond, or to the person appearing on his behalf, the deposit or counter-bond aforesaid standing in place of the property so released. Should such counter-bond for any reason be found to be or become insufficient, and the party furnishing the same fail to file an additional counter-bond, the attaching party may apply for a new order of attachment. (12a) Section 13. Discharge of attachment on other grounds. – The party whose property has been ordered attached may file a motion with the court in which the action is pending, before or after levy or even after the release of the attached property, for an order to set aside or discharge the attachment on the ground that the same was improperly or irregularly issued or enforced, or that the bond is insufficient. If the attachment is excessive, the discharge shall be limited to the excess. If the motion be made on affidavits on the part of the movant but not otherwise, the attaching party may oppose the motion by counter- affidavits or other evidence in addition to that on which the attachment was made. After due notice and hearing, the court shall order the setting aside or the corresponding discharge of the attachment if it appears that it was improperly or irregularly issued or enforced, or that the bond is insufficient, or that the attachment is excessive, and the defect is not cured forthwith. (13a) Section 14. Proceedings where property claimed by third person. – If the property attached is claimed by any person other than the party against whom attachment had been issued or his agent, and such person makes an affidavit of his title thereto, or right to the possession thereof, stating the grounds of such right or title, and serves such affidavit upon the sheriff while the latter has possession of the attached property, and a copy thereof upon the attaching party, the sheriff shall not be bound to keep the property under attachment, unless the attaching party or his agent, on demand of the sheriff, shall file a bond approved by the court to indemnify the third-party claimant in a sum not less than the value of the property levied upon. In case of disagreement as to such value, the same shall be decided by the court issuing the writ of attachment. No claim for damages for the taking or keeping of the property may be enforced against the bond unless the action therefor is filed within one hundred twenty (120) days from the date of the filing of the bond. The sheriff shall not be liable for damages for the taking or keeping of such property, to any such third-party claimant, if such bond shall be filed. Nothing herein contained shall prevent such claimant or any third person from vindicating his claim to the property, or prevent the attaching party from claiming damages against a third-party claimant who filed a frivolous or plainly spurious claim, in the same or a separate action. When the writ of attachment is issued in favor of the Republic of the Philippines, or any officer duly representing it, the filing of such bond shall not be required, and in case the sheriff is sued for damages as a result of the attachment, he shall be represented by the Solicitor General, and if held liable therefor, the actual damages adjudged by the court shall be paid by the National Treasurer out of the funds to be appropriated for the purpose. (14a) Section 15. Satisfaction of judgment out of property attached; return of sheriff. – If judgment be recovered by the attaching party and execution issue thereon, the sheriff may cause the judgment to be satisfied out of the property attached, if it be sufficient for that purpose in the following manner:

(a) By paying to the judgment obligee the proceeds of all sales of perishable or other property sold in pursuance of the order of the court, or so much as shall be necessary to satisfy the judgment;

(b) If any balance remains due, by selling so much of the property, real or personal, as may be necessary to satisfy the balance, if enough for that purpose remain in the sheriffs hands, or in those of the clerk of the court;

Updated: Creditors cannot attach the assets of a bank undergoing liquidation to gain a preference, and must bring their claims before the liquidation court (Hermosa Savings v. Development Bank of the Philippines, G.R. No. 222972, 6 August 2025).

U. Provisional Remedies (part 2 of 3)

(c) By collecting from all persons having in their possession credits belonging to the judgment obligor, or owing debts to the latter at the time of the 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 judgment, and paying the proceeds of such collection over to the judgment obligee. The sheriff shall forthwith make a return in writing to the court of his proceedings under this section and furnish the parties with copies thereof. (15a) Section 16. Balance due collected upon an execution; excess delivered to judgment obligor. – If after realizing upon all the property attached, including the proceeds of any debts or credits collected, and applying the proceeds to the satisfaction of the judgment, less the expenses of proceedings upon the judgment, any balance shall remain due, the sheriff must proceed to collect such balance as upon ordinary execution. Whenever the judgment shall have been paid, the sheriff, upon reasonable demand, must return to the judgment obligor the attached property remaining in his hands, and any proceeds of the sale of the property attached not applied to the judgment. (16a) Section 17. Recovery upon the counter-bond. – When the judgment has become executory, the surety or sureties on any counter-bond given pursuant to the provisions of this Rule to secure the payment of the judgment shall become charged on such counter-bond and bound to pay the judgment obligee upon demand the amount due under the judgment, which amount may be recovered from such surety or sureties after notice and summary hearing in the same action. (17a) Section 18. Disposition of money deposited. – Where the party against whom attachment had been issued has deposited money instead of giving counter-bond, it shall be applied under the direction of the court to the satisfaction of any judgment rendered in favor of the attaching party, and after satisfying the judgment the balance shall be refunded to the depositor or his assignee. If the judgment is in favor of the party against whom attachment was issued, the whole sum deposited must be refunded to him or his assignee. (18a) Section 19. Disposition of attached property where judgment is for party against whom attachment was issued. – If judgment be rendered against the attaching party, all the proceeds of sales and money collected or received by the sheriff, under the order of attachment, and all property attached remaining in any such officer’s hands, shall be delivered to the party against whom attachment was issued, and the order of attachment discharged. (19a) Section 20. Claim for damages on account of improper, irregular or excessive attachment. – An application for damages on account of improper, irregular or excessive attachment must be filed before the trial or before appeal is perfected or before the judgment becomes executory, with due notice to the attaching party and his surety or sureties, setting forth the facts showing his right to damages and the amount thereof. Such damages may be awarded only after proper hearing and shall be included in the judgment on the main case. If the judgment of the appellate court be favorable to the party against whom the attachment was issued, he must claim damages sustained during the pendency of the appeal by filing an application in the appellate court, with notice to the party in whose favor the attachment was issued or his surety or sureties, before the judgment of the appellate court becomes executory. The appellate court may allow the application to be heard and decided by the trial court. Nothing herein contained shall prevent the party against whom the attachment was issued from recovering in the same action the damages awarded to him from any property of the attaching party not exempt from execution should the bond or deposit given by the latter be insufficient or fail to fully satisfy the award. (20a)

> RULE 58 PRELIMINARY INJUNCTION Section 1. Preliminary injunction defined; classes. – A preliminary injunction is an order granted at any stage of an action or proceeding prior to the judgment or final order, requiring a party or a court, agency or a person to refrain from a particular act or acts. It may also require the performance of a particular act or acts, in which case it shall be known as a preliminary mandatory injunction. (1a) Section 2. Who may grant preliminary injunction. – A preliminary injunction may be granted by the court where the action or proceeding is pending. If the action or proceeding is pending in the Court of Appeals or in the Supreme Court, it may be issued by said court or any member thereof. (2a) Section 3. Grounds for issuance of preliminary injunction. – A preliminary injunction may be granted when it is established:

(a) That the applicant is entitled to the relief demanded, and the whole or part of such relief consists in restraining the commission or continuance of the act or acts complained of, or in requiring the performance of an act or acts, either for a limited period or perpetually;

(b) That the commission, continuance or non-performance of the act or acts complained of during the litigation would probably work injustice to the applicant; or

(c) That a party, court, agency or a person is doing, threatening, or is attempting to do, or is procuring or suffering to be done, some act or acts probably in violation of the rights of the applicant respecting the subject of the action or proceeding, and tending to render the judgment ineffectual. (3a) Section 4. Verified application and bond for preliminary injunction or temporary restraining order. – A preliminary injunction or temporary restraining order may be granted only when:

(a) The application in the action or proceeding is verified, and shows facts entitling the applicant to the relief demanded; and

(b) Unless exempted by the court, the applicant files with the court where the action or proceeding is pending, a bond executed to the party or person enjoined, in an amount to be fixed by the court, to the effect that the applicant will pay to such party or person all damages which he may sustain by reason of the injunction or temporary restraining order if the court should finally decide that the applicant was not entitled thereto. Upon approval of the requisite bond, a writ of preliminary injunction shall be issued. (4a)

(c) When an application for a writ of preliminary injunction or a temporary restraining order is included in a complaint or any initiatory pleading, the case, if filed in a multiple-sala court, shall be raffled only after notice to and in the presence of the adverse party or the person to be enjoined. In any event, such notice shall be preceded, or contemporaneously accompanied, by service of summons, together with a copy of the complaint or initiatory pleading and the applicant’s affidavit and bond, upon the adverse party in the Philippines. However, where the summons could not be served personally or by substituted service despite diligent efforts, or the adverse party is a resident of the Philippines temporarily absent therefrom or is a nonresident thereof, the requirement of prior or contemporaneous service of summons shall not apply.

(d) The application for a temporary restraining order shall thereafter be acted upon only after all parties are heard in a summary hearing which shall be conducted within twenty-four (24) hours after the sheriff’s return of service and/or the records are received by the branch selected by raffle and to which the records shall be transmitted immediately. Section 5. Preliminary injunction not granted without notice; exception. – No preliminary injunction shall be granted without hearing and prior notice to the party or person sought to be enjoined. If it shall appear from facts shown by affidavits or by the verified application that great or irreparable injury would result to the applicant before the matter can be heard on notice, the court to which the application for preliminary injunction was made, may issue a temporary restraining order to be effective only for a period of twenty (20) days from service on the party or person sought to be enjoined, except as herein provided. Within the said twenty-day period, the court must order said party or person to show cause, at a specified time and place, why the injunction should not be granted, determine within the same period whether or not the preliminary injunction shall be granted, and accordingly issue the corresponding order. However, and subject to the provisions of the preceding sections, if the matter is of extreme urgency and the applicant will suffer grave injustice and irreparable injury, the executive judge of a multiple-sala court or the presiding judge of a single-sala court may issue ex parte a temporary restraining order effective for only seventy-two (72) hours from issuance but he shall immediately comply with the provisions of the next preceding section as to service of summons and the documents to be served therewith. Thereafter, within the aforesaid seventy-two (72) hours, the judge before whom the case is pending shall conduct a summary hearing to determine whether the temporary restraining order shall be extended until the application for preliminary injunction can be heard. In no case shall the total period of effectivity of the temporary restraining order exceed twenty (20) days, including the original seventy- two hours provided herein. In the event that the application for preliminary injunction is denied or not resolved within the said period, the temporary restraining order is deemed automatically vacated. The effectivity of a temporary restraining order is not extendible without need of any judicial declaration to that effect and no court shall have authority to extend or renew the same on the same ground for which it was issued. However, if issued by the Court of Appeals or a member thereof, the temporary restraining order shall be effective for sixty (60) days from service on the party or person sought to be enjoined. A restraining order issued by the Supreme Court or a member thereof shall be effective until further orders. (5a) The trial court, the Court of Appeals, the Sandiganbayan or the Court of Tax Appeals that issued a writ of preliminary injunction against a lower court, board, officer, or quasi-judicial agency shall decide the main case or petition within six (6) months from the issuance of the writ. (As amended by A.M. No. 07-7-12-SC, December 12, 2007.) Section 6. Grounds for objection to, or for motion of dissolution of, injunction or restraining order. – The application for injunction or restraining order may be denied, upon a showing of its insufficiency. The injunction or restraining order may also be denied, or, if granted, may be dissolved, on other grounds upon affidavits of the party or person enjoined, which may be opposed by the applicant also by affidavits. It may further be denied, or, if granted, may be dissolved, if it appears after hearing that although the applicant is entitled to the injunction or restraining order, the issuance or continuance thereof, as the case may be, would cause irreparable damage to the party or person enjoined while the applicant can be fully compensated for such damages as he may suffer, and the former files a bond in an amount fixed by the court conditioned that he will pay all damages which the applicant may suffer by the denial or the dissolution of the injunction or restraining order. If it appears that the extent of the preliminary injunction or restraining order granted is too great, it may be modified. (6a) Section 7. Service of copies of bonds; effect of disapproval of same. – The party filing a bond in accordance with the provisions of this Rule shall forthwith serve a copy of such bond on the other party, who may except to the sufficiency of the bond, or of the surety or sureties thereon. If the applicant’s bond is found to be insufficient in amount, or if the surety or sureties thereon fail to justify, and a bond sufficient in amount with sufficient sureties approved after justification is not filed forthwith, the injunction shall be dissolved. If the bond of the adverse party is found to be insufficient in amount, or the surety or sureties thereon fail to justify, and a bond sufficient in amount with sufficient sureties approved after justification is not filed forthwith, the injunction shall be granted or restored, as the case may be. (8a) Section 8. Judgment to include damages against party and sureties. – At the trial, the amount of damages to be awarded to either party, upon the bond of the adverse party, shall be claimed, ascertained, and awarded under the same procedure prescribed in section 20 of Rule 57. (9a) Section 9. When final injunction granted. – If after the trial of the action it appears that the applicant is entitled to have the act or acts complained of permanently enjoined, the court shall grant a final injunction perpetually restraining the party or person enjoined from the commission or continuance of the act or acts or confirming the preliminary mandatory injunction. (10a)

> RULE 60 REPLEVIN Section 1. Application. – A party praying for the recovery of possession of personal property may, at the commencement of the action or at any time before answer, apply for an order for the delivery of such property to him, in the manner hereinafter provided. (1a) Section 2. Affidavit and bond. – The applicant must show by his own affidavit or that of some other person who personally knows the facts:

(a) That the applicant is the owner of the property claimed, particularly describing it, or is entitled to the possession thereof;

(b) That the property is wrongfully detained by the adverse party, alleging the cause of detention thereof according to the best of his knowledge, information, and belief;

(c) That the property has not been distrained or taken for a tax assessment or a fine pursuant to law, or seized under a writ of execution or preliminary attachment, or otherwise placed under custodia legis, or if so seized, that it is exempt from such seizure or custody; and

Updated: Claims against a bank in judicial liquidation belong before the liquidation court, not in a preferential attachment or execution, and a Rule 57 counter-bond must provide immediate, direct security (Hermosa Savings v. Development Bank of the Philippines, G.R. No. 222972, 6 August 2025; Coca-Cola Beverages Philippines, Inc. v. Pacific Sugar Holdings Corporation, G.R. No. 241333, 27 June 2022).

Nature of Preliminary Attachment

Attachment is a provisional remedy by which the property of an adverse party is taken into legal custody, either at the commencement of an action or at any time thereafter, as a security for the satisfaction of any judgment that may be recovered by the plaintiff or any proper party. (Olib v. Pastoral, G.R. No. 81120, 1990)

Preliminary attachment, under Rule 57, is an ancillary remedy applied not for its own sake but to enable the attaching party to realize upon the relief sought and expected to be granted in the main or principal action; it is a measure auxiliary or incidental to the main action.

As such, it is available during its pendency which may be resorted to by a litigant to preserve and protect certain rights and interests during the interim, awaiting the ultimate effects of a final judgment in the case. (Lim, Jr. v. Sps. Lazaro, G.R. No. 185734, Jul. 3, 2013)

It is a proceeding quasi in rem. (Banco-Español Filipino v. Palanca, G.R. No. L-11390, Mar. 26, 1918)

The attachment of the property of the defendant converts an ordinary action in personam into an action quasi in rem. In such case, jurisdiction over the person of the defendant is not required as long as the court acquires jurisdiction over the res. (Biaco v. Countryside Rural Bank, G.R. No. 161417, 2007)

Attachment is purely a statutory remedy, and it cannot exist without a statute. Preliminary attachment is governed by Rule 57 of the Rules of Court. Separately, Article 1177 of the Civil Code permits creditors, after pursuing property in the debtor’s possession to satisfy their claims, to exercise the debtor’s nonpersonal rights and actions for the same purpose and to impugn acts done to defraud them. (RIANO, 2009, p. 538)

Updated: A creditor cannot gain a preference through attachment of a bank’s assets during liquidation and must bring its claim before the liquidation court (Hermosa Savings v. Development Bank of the Philippines, G.R. No. 222972, 6 August 2025).

Who May Apply For a Writ of Preliminary Attachment

A plaintiff or any proper party may have the property of the adverse party attached. (Sec. 1, Rule 57)

Thus, a writ of preliminary attachment may be issued in favor of a defendant who sets up a counterclaim. (De Borja v. Platon, G.R. No. 48080, 1942)

Purposes of Preliminary Attachment

• To seize the property of the debtor before final judgment and put the same in custodia legis even while the action is pending for the satisfaction of a later judgment. (Insular Bank of Asia and America v. Court of Appeals, G.R. No. L-61011, 1990)
• To enable the court to acquire jurisdiction over the res or the property subject of the action in cases where service in person or any other service to acquire jurisdiction over the defendant cannot be effected. (Philippine Commercial International Bank v. Alejandro, G.R. No. 175587, September 21, 2007)

Updated: A creditor may not attach the assets of a bank undergoing liquidation to obtain a preference over other creditors (Hermosa Savings v. Development Bank of the Philippines, G.R. No. 222972, 6 August 2025).

Kinds of Attachments

• PRELIMINARY ATTACHMENT - issued at the commencement of the action or at any time before entry of judgment as security for the satisfaction of any judgment that may be recovered. The court takes custody of the property. (Sec. 1, Rule 57);
• GARNISHMENT - plaintiff reaches a credit/s belonging to the defendant and owing to him from a third person who is a stranger to the litigation. It does not involve actual seizure of the property; it simply impounds the property in the garnishee’s possession and maintains the status quo until the main action is finally decided. (Sec. 7(d), Rule 57; Sec. 9(c), Rule 39);
• LEVY ON EXECUTION - the writ issued by the court after judgment by which the property of the judgment obligor is taken into custody of the court before the sale of the property on execution. (Sec. 9[b], Rule 39)

Updated: A creditor cannot secure a preference through attachment or execution against the assets of a bank undergoing liquidation (Hermosa Savings v. Development Bank of the Philippines, G.R. No. 222972, 6 August 2025).

When Writ May be Availed of

An application for the issuance of a writ of attachment may be filed:

• At the commencement of the action; or
• At any time before entry of judgment. (Sec. 1, Rule 57).

Before the determination of the liability of the adverse parties, the writ of preliminary attachment may properly issue. The attachment does not affect the decision of the case on the merits, the right to recover judgment on the alleged indebtedness and the right to attach the property of the debtor being entirely separate and distinct. As a rule, the judgment in the main action neither changes the nature nor determines the validity of the attachment. (Peroxide Philippines Corp. v. Court of Appeals, G.R. No. 92813, 1991)

Updated: A preliminary attachment ceases when final judgment absolves the defendant (Uem Mara Philippines Corporation v. Wee, G.R. No. 206563, 14 October 2020), and it cannot secure a preference over assets of a bank undergoing liquidation (Hermosa Savings v. Development Bank of the Philippines, G.R. No. 222972, 6 August 2025).

Effectivity of Preliminary Attachment

The lien continues until the debt is paid, or the sale is made under execution issued on the judgment, or until the judgment is satisfied, or the attachment discharged or vacated in the same manner provided by law. (Lim, Jr. v. Sps. Lazaro, G.R. No. 185734, 2013)

Updated: A preliminary attachment ceases to exist when a final judgment absolves the defendant of liability. Uem Mara Philippines Corporation v. Wee, G.R. No. 206563, 14 October 2020.

GROUNDS FOR ISSUANCE OF PRELIMINARY ATTACHMENT

The following are the grounds for the issuance of a preliminary attachment:

• In an action for the recovery of a specified amount of money or damages, other than moral and exemplary, on a cause of action arising from law, contract, quasi-contract, delict, or quasidelict against a party who is about to depart from the Philippines with the intent to defraud his creditors;
• In an action for money or property embezzled or fraudulently misapplied or converted to his own use by a public officer, or an officer of a corporation, or an attorney, factor, broker, agent, or clerk, in the course of his employment as such, or by any other person in a fiduciary capacity, or for a willful violation of duty;
• In an action to recover the possession of property unjustly or fraudulently taken, detained or converted, when the property, or any part thereof, has been concealed, removed or disposed of to prevent its being found or taken by the applicant or an authorized person;
• In an action against a party who has been guilty of a fraud in contracting the debt or incurring the obligation upon which the action is brought, or in the performance thereof;
• In an action against a party who has removed or disposed of his property, or is about to do so, with intent to defraud his creditors; and
• In an action against a party who does not reside in the Philippines, or on whom summons may be served by publication. (Sec. 1, Rule 57)

Note: The elements depend on the particular ground invoked; fraud need not be proved under every ground in Rule 57, Sec. 1(a)–(e).

Further, the enumeration in Rule 57, Sec. 1 is exclusive.

Also Note: Insolvency is not a ground for issuance of a writ. The fact that the defendant company’s bank account has been reduced to nil is not a ground for the issuance of attachment. (Aboitiz v. Cotabato Bus Co., G.R. No. L-35990, Jun. 17, 1981).

But the mere fact of failure to pay after the obligation to do so has become due and despite several demands is not enough to warrant the issuance of a writ of preliminary attachment. (Mt. Banahaw Wood Industries, Inc. v. Naga Dynasty Allied Marketing Corp., G.R. No. 211179, 2019)

Fraud Must be Alleged With Particularity

A writ of preliminary attachment is too harsh a provisional remedy to be issued based on mere abstractions of fraud. Rather, the rules require that for the writ to issue, there must be a recitation of clear and concrete factual circumstances manifesting that the debtor practiced fraud upon the creditor at the time of the execution of their agreement in that said debtor had a preconceived plan or intention not to pay the creditor. (Equitable Bank v. Special Steel, G.R. No. 175350, 2012)

REQUISITES

• Application - An application may be filed at the commencement of the action, or at any time before entry of judgment. (Rule 57, Sec. 1)

If sought at the commencement of the action, attachment may be applied for with a supporting affidavit establishing the requirements of Rule 57, Sec. 3, and the bond required by Rule 57, Sec. 4; both must be filed with the court before the order issues. Here, the writ may be granted ex parte or even before summons is served. If not applied for at the commencement of the action, it may still be applied for before entry of judgment, and the order may issue before service of summons upon the defendant. Implementation of the writ must comply with Rule 57, Sec. 5, including its exceptions. (Davao Light & Power Co., Inc. v. Court of Appeals, G.R. No. 93262, 1991).

See discussion on Prior or Contemporaneous Service of Summons for Rules on Implementation/Execution of Writ of Attachment.

• Affidavit – To ensure that the applicant states the truth by requiring him to allege the presence of all the legal requirements under oath. The affidavit is the foundation of the writ and if none is filed or one is filed but wholly fails to set out some facts required by law to be stated therein, there is no jurisdiction and the proceedings are null and void. (Jardine-Manila Finance, Inc. v. Court of Appeals, G.R. No. 55272, 1989)
• Attachment Bond – Executed in favor of the adverse party in an amount fixed by the court, the bond is conditioned to pay all the costs which will be adjudged the adverse party and all damages he may sustain if the court should later rule that the applicant is not entitled to the attachment. (Sec. 4, Rule 57).

The surety is liable for all damages and not only for damages sustained during the appeal as this is its commitment. (Phil. Charter Insurance v CA, G.R. No. 88379, 1989)

A writ may issue only if there is no other sufficient security for the claim; whether a real estate mortgage sufficiently secures the claim must be assessed. (Rule 57, Sec. 3) (Salgado v. CA, G.R. No. 55381, 1994)

Updated: Creditors cannot gain a preference by attaching the assets of a bank undergoing liquidation and must bring their claims before the liquidation court (Hermosa Savings v. Development Bank of the Philippines, G.R. No. 222972, 6 August 2025).

Nature, Purpose, and Jurisdiction

ISSUANCE AND CONTENTS OF ORDER OF ATTACHMENT; AFFIDAVIT AND BOND

Three Stages in the Grant of Preliminary Attachment

• The court issues the order granting the application;
• The writ of attachment is issued pursuant to an order of the court granting the writ; and
• The writ is enforced/implemented. (Torres v. Satsatin, G.R. No. 166759, 2009).

Note: For Stages 1 and 2, it is NOT necessary that jurisdiction over the person of the defendant be first obtained. At implementation, Rule 57, Section 5 requires prior or contemporaneous service of summons and accompanying documents, subject to its express exceptions. Where jurisdiction rests on the attached property rather than the defendant’s person, relief is limited accordingly. (Cuartero v. CA, G.R. No. 102448, 1992).

Hence, when the sheriff or other proper officer commences implementation of the writ of attachment, Section 5 of Rule 57 generally requires prior or contemporaneous service on the defendant of summons together with copies of the complaint, the application for attachment, the applicant's affidavit and bond, and the order and writ of attachment, subject to its exceptions. (Davao Light & Power Co., Inc. v. Court of Appeals, G.R. No. 93262, 1991).

But prior or contemporaneous service of summons may be dispensed with under certain exceptions. (Sec. 5, Rule 57; see further discussions on Rule on Prior or Contemporaneous Service of Summons).

Issuance of the Order

An order of attachment may be issued either ex parte or upon motion with notice and hearing by:

• The court in which the action is pending;
• The Court of Appeals; or
• The Supreme Court. (Sec. 2, Rule 57).

The order must require the sheriff of the court to attach so much of the property in the Philippines of the party against whom it is issued (must not be exempt from execution) as may be sufficient to satisfy the applicant’s demand, UNLESS such party makes a deposit or gives a counter-bond in an amount equal to that fixed in the order, which may be the amount sufficient to satisfy the applicant’s demand or the value of the property to be attached as stated by the applicant, EXCLUSIVE of costs. (Secs. 2 and 3, Rule 57).

Several writs may be issued at the same time to the sheriffs of the courts of different judicial regions. (Rule 57, Sec. 2)

Ex parte grant of the writ is allowed because it is possible that during the course of the hearing, the party against whom the writ is sought may dispose of his property or abscond before the writ is issued. (Filinvest v. Relova, G.R. No. L-50378, 1982)

Updated: Attachment cannot give a creditor preference over a bank in liquidation, and a standby letter of credit is not an adequate Rule 57 counterbond (Hermosa Savings v. Development Bank of the Philippines, G.R. No. 222972, 6 August 2025; Coca-Cola Beverages Philippines, Inc. v. Pacific Sugar Holdings Corporation, G.R. No. 241333, 27 June 2022).

Affidavit

An order of attachment shall be granted only when it appears that it is supported by an affidavit which contains:

• A sufficient cause of action exists;
• The case is one of those mentioned in Sec. 1, Rule 57;
• There is no other sufficient security for the claim sought to be enforced by the action; and
• The amount due to the applicant, or the value of the property the possession of which the applicant is entitled to recover, is as much as the sum for which the order is granted above all legal counterclaims. (Sec. 3, Rule 57).

The affidavit may be made by:

• The applicant of the writ of preliminary attachment; or
• Some other person who personally knows the facts. (Id.).

It is not enough to state that a sufficient cause of action exists. The applicant must state the facts constituting the cause of action, as well as facts, i.e. place, time, date, to illustrate the grounds for attachment relied upon.

A bare allegation that an encumbrance of property is in fraud of creditors does not suffice. Factual bases for such conclusion must be clearly averred. (Adlawan v Torres, G.R. No. 65957-58, 1994)

Bond

The party applying for the order of attachment must thereafter give a bond which is:

• Executed to the adverse party;
• In the amount fixed by the court in its order granting the issuance of the writ;
• Conditioned that the applicant will pay all the costs which may be adjudged to the adverse party and all damages which he may sustain by reason of the attachment, if the court shall finally adjudge that the applicant was not entitled thereto. (Sec. 4, Rule 57)

The affidavit and the applicant’s bond must be duly filed with the court before the order of attachment issues. (Sec. 3, Rule 57)

RULE ON PRIOR OR CONTEMPORANEOUS SERVICE OF SUMMONS

General Rule: No levy on attachment pursuant to the writ issued under Section 2, Rule 57 shall be enforced unless preceded, or contemporaneously accompanied by service upon the defendant within the Philippines of the following:

• Summons;
• A copy of the complaint;
• The application for attachment;
• The applicant’s affidavit and bond; and
• The order and writ of attachment. (Sec. 5, Rule 57; Davao Light and Power Co., Inc. v. CA, G.R. No. 147058, 2006)

Exceptions: Prior or contemporaneous service of summons shall not apply when:

• Summons could not be served personally or by substituted service despite diligent efforts;
• Defendant is a resident of the Philippines temporarily absent therefrom;
• Defendant is a non-resident of the Philippines; or
• The action is one in rem or quasi in rem. (Sec. 5, Rule 57).

Note: In exceptions 1 to 3, the principal action may be an action in personam. If personal jurisdiction over the defendant has not been acquired, a valid levy of attachment on the defendant’s property may give the court jurisdiction over the property, allowing it to proceed quasi in rem, subject to the applicable requirements for service of summons.

Recall: In actions in rem and quasi in rem, jurisdiction over the person of the defendant is not required. What is required is jurisdiction over the res although summons must also be served on the defendant in order to satisfy due process requirements. (See De Pedro v. Romasan Dev’t, G.R. No. 194751, 2014)

Manner of Attaching Property

The sheriff enforcing the writ shall without delay and with all reasonable diligence attach, to await judgment and execution in the action, such property:

• Only so much of the property sufficient to satisfy the applicant’s demand;
• That which is found in the Philippines;
• That which belongs to the party against whom the writ is issued; and
• That which is not exempt from execution. (Sec. 5, Rule 57).

Updated: A creditor cannot obtain a preference by attaching the assets of a bank undergoing liquidation (Hermosa Savings v. Development Bank of the Philippines, G.R. No. 222972, 6 August 2025).

Kinds of Real Property Covered

Real property, or growing crops thereon, or any interest therein which is:

• Standing upon the record of the registry of deeds of the province in the name of the party against whom attachment is issued; or
• Not appearing at all upon such records; or
• Belonging to the party against whom attachment is issued and held by any other person; or
• Belonging to the party against whom attachment is issued and standing on the records of the registry of deeds in the name of any other person. (Sec. 7(a), Rule 57).

Procedure for Attachment of Real Property

Real property is attached by:

• Filing with the registry of deeds:
• A copy of the order;
• A description of the property attached; and
• A notice that it is attached, or that such real property and any interest therein held by or standing in the name of such other person are attached; and
• Leaving a copy of such order, description, and notice with the occupant of the property, if any, or with such other person or his agent if found within the province. (Id.)

Where the property has been brought under the operation of either the Land Registration Act or the Property Registration Decree, the notice shall contain a reference to:

• The number of the certificate of title;
• The volume and page in the registration book where the certificate is registered; and
• The registered owner or owners thereof. (Id.)

Note: The registrar of deeds must index attachments filed under this section in the names of the applicant, the adverse party, or the person by whom the property is held or in whose name it stands in the records. (Id.)

If the attachment is not claimed on the entire area covered by the certificate of title, a description sufficiently accurate for the identification of the land or interest to be affected shall be included in the registration of such attachment. (Id.)

Attachment of Personal Property Capable of Manual Delivery

Attachment shall be made by taking and safely keeping it in his custody, after issuing the corresponding receipt therefor. (Sec. 7(b), Rule 57).

Attachment of Stocks or Shares

Attachment shall be made by leaving with the president or managing agent thereof:

• A copy of the writ; AND
• A notice stating that the stock or interest of the party against whom the attachment is issued, is attached pursuant to the writ. (Sec. 7[c], Rule 57).

Attachment of Debts and Credits, Bank Deposits, Financial Interest, Royalties, Commissions, and Other Personal Property Not Capable of Manual Delivery

Attachment shall be made by leaving with the person owing such debts, or having in his possession or under his control, such credits or other personal property, or with his agent, a copy of the writ, and notice that the debts owing by him to the party against whom attachment is issued, and the credits and other personal property in his possession, or under his control, belonging to said party, are attached in pursuance of such writ. (Sec. 7(d), Rule 57).

Attachment of Interest of the Party Against Whom Attachment is Issued in Property Belonging to the Estate of the Decedent, Whether as Heir, Legatee, or Devisee

Attachment is made by serving the executor or administrator or other personal representative of the decedent with a copy of the writ and notice that said interest is attached. (Sec. 7(e), Rule 57).

A copy of said writ of attachment and of said notice shall also be filed in the office of the clerk of the court in which said estate is being settled and served upon the heir, legatee, or devisee concerned. (Id.).

Attachment of Property in Custodia Legis

If the property sought to be attached is in custodia legis, a copy of the writ of attachment shall be filed with the proper court or quasi-judicial agency, and notice of the attachment served upon the custodian of such property. (Sec. 7, Rule 57).

Property legally attached is property in custodia legis and cannot be interfered without the permission of the proper court, but this is confined to cases where the defendant has proprietary interest. Otherwise, the attachment will be void. (Traders Royal Bank v. IAC, G.R. No. L-66321, 1984)

Effect of Attachment of Debts, Credits, Similar Personal Property

Those who have in their possession or control any credits or other similar personal property which belongs to the party against whom the attachment is issued, or owing any debts to him, shall be liable to the applicant for the amount of such credits, debts or other similar property. (Sec. 8, Rule 57).

Such liability shall accrue from the time of service upon him of the copy of the writ of attachment and until the attachment is discharged, or any judgment recovered by him is satisfied, UNLESS such property is delivered or transferred, or such debts are paid, to the clerk, sheriff, or other proper officer of the court issuing the attachment. (Id.).

Effect of Attachment of Interests in Property Belonging to the Estate of a Decedent

The attachment of the interest of an heir, legatee, or devisee in the property belonging to the estate of a decedent shall NOT impair the powers of the executor, administrator, or other personal representative of the decedent over such property for the purpose of administration. (Sec. 9, Rule 57).

Such personal representative, however, shall report the attachment to the court when any petition for distribution is filed, and in the order made upon such petition, distribution may be awarded to such heir, legatee or devisee, but the property attached shall be ordered delivered to the sheriff making the levy, subject to the claim of such heir, legatee, or devisee, or any person claiming under him. (Id.).

It is not necessary to serve summons upon the garnishee to acquire jurisdiction upon him. All that is required is service upon him of the writ of garnishment. (Perla Compania de Seguros v. Ramolete, G.R. No. L-60887, 1991)

When Attached Property May be Sold

The attached property may be sold by order of the court whenever it shall be made to appear that:

• The property is perishable, or
• The interests of all the parties to the action will be subserved by the sale thereof. (Sec. 11, Rule 57).

The court may order such property to be sold at a public auction in such manner as it may direct, and the proceeds of such sale to be deposited in court to abide the judgment in the action. (Id.).

Such order to sell shall be made:

• By the court where the action is pending; and
• Upon notice and hearing to both parties. (Id.).

Exemption from Bond Requirement in Terceria

When the writ of attachment is issued in favor of the Republic of the Philippines, or any officer duly representing it, the filing of the aforementioned bond shall not be required. (Id.)

In case the sheriff is sued for damages as a result of the attachment, he shall be represented by the Solicitor General, and if held liable therefor, the actual damages adjudged by the court shall be paid by the National Treasurer out of the funds to be appropriated for the purpose. (Sec. 14, Rule 57)

When Counterbond is Filed

• Before enforcement of the writ (Sec. 2, Rule 57);
• During enforcement of the writ (Sec. 5, Rule 57);
• After enforcement of the writ. (Sec. 12, Rule 57)

Note: In case of item 3 above, the moving party may either file a counterbond or make a cash deposit. (Id.)

Updated: A Rule 57 counterbond must provide immediate and direct security, which a standby letter of credit does not provide (Coca-Cola Beverages Philippines v. Pacific Sugar Holdings, G.R. No. 241333, 27 June 2022).

Purpose of Counterbond

The purpose of a counterbond is to secure the payment of any judgment that the attaching party may recover in the action. (Secs. 12 and 17, Rule 57)

Updated: A Rule 57 counterbond must provide immediate and direct security, not contingent security through a standby letter of credit (Coca-Cola Beverages Philippines, Inc. v. Pacific Sugar Holdings Corporation, G.R. No. 241333, 27 June 2022).

Notice and Hearing

Discharge is not automatic. There must be due notice served on the attaching party and hearing and an order issued by the court. Should it involve a cash deposit, a notice of the deposit shall likewise be served on the attaching party. (Sec. 12, Rule 57).

Amount of the Counterbond or Cash Deposit

It shall be in an amount, exclusive of cost, equal to:

• That fixed by the court in the order of attachment, exclusive of costs; or
• The value of the particular property, if the attachment sought to be discharged is with respect to a particular property, as determined by the court. (Secs. 2 and 12, Rule 57)

Cash Deposit

Where the party against whom attachment had been issued has deposited money instead of giving counter-bond, it shall be applied under the direction of the court to the satisfaction of any judgment rendered in favor of the attaching party, and after satisfying the judgment the balance shall be refunded to the depositor or his assignee. (Sec. 18, Rule 57).

If the judgment is in favor of the party against whom attachment was issued, the whole sum deposited must be refunded to him or his assignee. (Id.).

Counterbond is Discharged Either:

Discharge of Attachment Upon Security:

• After notice and hearing, an attachment may be discharged wholly upon the cash deposit or counterbond required by Rule 57, Section 12.
• An attachment may be discharged as to particular property upon a counterbond equal to the value of that property as determined by the court. The cash deposit or counterbond secures payment of any judgment the attaching party may recover. (Sec. 12, Rule 57)

Updated: A counterbond used to discharge a preliminary attachment must provide immediate and direct security, which a standby letter of credit does not provide (Coca-Cola Beverages Philippines, Inc. v. Pacific Sugar Holdings Corporation, G.R. No. 241333, 27 June 2022).

Distinction between Counterbond and Attachment Bond

Procedure for Discharge of Writ of Attachment Upon Giving Counterbond

• The party whose property has been attached, or the person appearing on his behalf may file a motion to discharge the attachment
• Such party may either:
• Give cash deposit with the court from which the writ was issued; or
• Give a counterbond executed to the attaching party.
• Notice of deposit shall be served on the attaching party
• After notice and hearing, the court shall order discharge of the attachment. (Sec. 12, Rule 57)

Updated: A Rule 57 counterbond must provide immediate and direct security, so a standby letter of credit is not an adequate substitute (Coca-Cola Beverages Philippines, Inc. v. Pacific Sugar Holdings Corporation, G.R. No. 241333, 27 June 2022).

Counterbond Cannot be Cancelled on the Ground That Writ is Improperly Issued

Obligors in the bond are absolutely liable for the amount of any judgment that the plaintiff may recover in the action without reference to the question of whether the attachment was rightfully or wrongfully issued. Unlike the counterbond, the plaintiff’s attachment bond answers for costs and damages sustained by the adverse party if the court finally adjudges that the applicant was not entitled to attachment under Rule 57, Section 4 of the Rules of Civil Procedure. (Uy Kimpang v. Javier, G.R. No. L43461, 1937)

The liability of the surety on the counterbond subsists until the Court shall have finally absolved the defendant from the plaintiff’s claims. The liability of the surety on the bond subsists because the final reckoning is when the Court shall finally adjudge that the attaching creditor was not entitled to the issuance of the attachment writ. (Mindanao Savings and Loan Assoc. vs. CA, G.R. No. 84481, 1989)

Damages Recoverable by the Attachment Defendant

Where there is wrongful attachment, the attachment defendant may recover actual damages even without proof that the attachment plaintiff acted in bad faith in obtaining the attachment. However, if it is alleged and established that the attachment was not merely wrongful but also malicious, the attachment defendant may recover moral damages and exemplary damages as well. (Spouses Yu v. Ngo Yet Te, G.R. No. 155868, 2007).

Either way, the wrongfulness of the attachment does not warrant the automatic award of damages to the attachment defendant; the latter must first discharge the burden of proving the nature and extent of the loss or injury incurred by reason of the wrongful attachment. (Id.).

The Liability of The Attaching Party Not Limited to The Amount of Attachment Bond

Should the bond or deposit given by the attaching party be insufficient or fails to fully satisfy the award, the party against whom attachment was issued is not prevented from recovering in the same action the damages awarded to him from any property of the attaching party not exempt from execution. (Sec. 20, Rule 57).

However, the judgment award should be first executed on the attachment bond. Only if the attachment bond is insufficient to cover the judgment award can the attaching party be held liable. (Phil-Air Conditioning Center v. RCJ Lines, G.R. No. 193821, 2015).

However, the surety’s liability is limited to the amount of the bond. (Philippine Charter Insurance Corp. v. Court of Appeals, G.R. No. 88379, 1989).

Discharge Due to Excessive Attachment

The attachment may also be discharged if the same is excessive, but the discharge shall be limited to the excess. (Sec. 13, Rule 57).

If the attachment is excessive, its discharge on that ground shall be limited to the excess. (Id.).

The party seeking the discharge must also file a motion in the court where the action is pending, and due notice and hearing shall also be observed. (Id).

Satisfaction of Judgment by Sheriff

If judgment be recovered by the attaching party and execution issue thereon, the sheriff may cause the judgment to be satisfied out of the property attached, if it be sufficient for that purpose in the following manner:

• By paying to the judgment obligee the proceeds of all sales of perishable or other property sold in pursuance of the order of the court, necessary to satisfy the judgment;
• If any balance remains due, by selling so much of the property, real or personal, as may be necessary to satisfy the balance;
• By collecting from all persons having in their possession credits belonging to the judgment obligor, or owing debts to the latter at the time of the 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 judgment, and paying the proceeds of such collection over to the judgment obligee. (Sec. 15, Rule 57)

Updated: A creditor cannot obtain a preference through attachment or execution against the assets of a bank undergoing liquidation and must bring its claim before the liquidation court (Hermosa Savings v. Development Bank of the Philippines, G.R. No. 222972, 6 August 2025).

Balance and Excess

If after realizing upon all the property attached, including the proceeds of any debts or credits collected, and applying the proceeds to the satisfaction of the judgment less the expenses of proceedings upon the judgment any balance shall remain due, the sheriff must proceed to collect such balance as upon ordinary execution. (Sec. 16, Rule 57).

The sheriff, upon reasonable demand, must return to the judgment obligor the attached property remaining in his hands, and any proceeds of the sale of the property attached not applied to the judgment. (Id.).

Recovery Upon the Counterbond

In order that the judgment creditor may recover from the Surety on the counterbond, it is necessary:

• That judgment has become executory (Sec. 17, Rule 57); (Towers Assurance v. Ororama Supermart, G.R. No. L-45848, 1977)
• That the creditor made a demand upon the surety for the satisfaction of the judgment; and
• The surety be given notice and a summary hearing in the same action as to his liability for the judgment under his counterbond. (Sec. 17, Rule 57).

Note: The judgment must have become executory even where a solidary liability for the satisfaction of a judgment is involved. The surety is not entitled to the exhaustion of properties of the principal debtor. (Towers Assurance v. Ororama Supermart, G.R. No. L-45848, 1977).

Table of Comparison: Preliminary Attachment, Levy, and Garnishment

Updated: A creditor cannot obtain a preference by attaching or executing upon the assets of a bank undergoing judicial liquidation (Hermosa Savings v. Development Bank of the Philippines, G.R. No. 222972, 6 August 2025).

Replevin v. Preliminary Attachment; Distinctions

Updated: A creditor cannot obtain a preference by attaching the assets of a bank undergoing liquidation. Hermosa Savings v. Development Bank of the Philippines, G.R. No. 222972, 6 August 2025.