Ben Madilynn
UNTIL the Supreme Court (SC) issues a final decision on Cebu Gov. Gwendolyn Garcia’s petition to overturn an order compelling her to pay US$700,000 in debt to a foreign bank, there is no immediate risk that Garcia will face legal repercussions for any civil liability.
This is the statement of Garcia’s legal camp on Saturday night, Sept. 14, 2024, after information circulated online that the SC had denied Garcia’s appeal to block an order requiring her to pay US$700,000 in debt to Hongkong Shanghai Banking Corp. (HSBC), citing her use of “dilatory petitions.”
SunStar Cebu previously reported a US$2.8 million debt, referring to the amount the Regional Trial Court (RTC) granted in HSBC’s motion. The RTC issued an Alias Writ of Execution (Alias Writ) directing the sheriff to collect from Garcia the amount of US$2,825,636.79, including legal and accumulated interest and the costs of the suit.
“From the foregoing facts, it is very clear that there is no real, imminent threat of enforcement of any civil liability against Gov. Gwen Garcia. Unless and until the Supreme Court decides with finality that this case could still be revived, any attempt to enforce a decision that has been dead for 10 years would be premature,” stressed Garcia’s camp statement.
The case originated from the decision of the RTC of Makati Branch 57, which awarded the amount of US$890,347.92, later reduced by the Court of Appeals to US$700,000 in favor of HSBC.
“This award was contested by our client since it had no basis (Governor Gwen actually put up collateral that was worth more than the award) and especially since HSBC wanted to enforce collection at an already ridiculous sum of US$2,800,000,” reads the statement of Garcia’s camp.
“This is the case that we challenged and elevated to the Supreme Court,” it stressed.
Garcia’s legal camp emphasized that while this case was pending in the SC, HSBC filed a Petition to Revive Judgment since it has been more than 10 years since the decision had become final.
It also highlighted that the RTC of Taguig Branch 153 dismissed the petition since the action had already been prescribed and the award could no longer be enforced for HSBC.
This prompted HSBC to elevate the dismissal to the Court of Appeals, where it is now pending.
“We trust that we have set the record straight on this matter and that the public would be guided accordingly,” Garcia’s camp said. / CDF
