City of Cebu v. Vicente B. del Rosario

Summary

The City of Cebu and the del Rosarios entered a contract to buy and sell land for abattoir construction, with purchase price deposited in escrow. After political changes, the city abandoned the abattoir project and proposed alternative uses. Vicente B. del Rosario sued for contract rescission and damages, claiming 19 years of lost property use. The RTC granted rescission and ordered payment of rentals equivalent to the escrow amount plus interests, then allowed execution pending appeal. The Court of Appeals affirmed, but the Supreme Court reversed, ruling the trial court gravely abused its discretion in granting execution pending appeal without proper legal basis. The Court found no valid 'good reasons' existed and that the RTC improperly prejudged the merits of its own decision. This case established important precedents on execution pending appeal requirements and judicial discretion limits.