Chandra O. Cacho v. Joaquin Bonifacio

Summary

This case involves a lease dispute where respondent lessors executed a writ of execution against petitioner lessee who was not a party to the original unlawful detainer case. Petitioner had entered into new lease agreements and paid the previous lessee's arrearages, taking over restaurant operations. When respondents obtained judgment against the original lessee and executed against petitioner's properties, she filed for annulment of judgment and damages. The Supreme Court distinguished between two separate causes of action and held that while the MTC judgment could not be annulled for lack of extrinsic fraud, respondents were still liable for damages under Article 1170 of the Civil Code for acting in bad faith. The Court found respondents deliberately disregarded petitioner's contractual rights by pursuing execution without impleading her, causing business closure and financial losses. The decision reinstated the trial court's award of actual, moral, and exemplary damages plus attorney's fees.