In the case of Reliance Surety vs. Hon. Andres R. Amante, Jr., the Supreme Court ruled against Reliance Surety & Insurance Co., Inc., affirming the importance of adhering to procedural rules when disputing liability on bail bonds. The Court emphasized that even if a surety believes a bail bond issued in its name is fraudulent, it must still follow the prescribed legal remedies and cannot bypass established procedures. This case serves as a reminder of the necessity of prompt action and proper legal recourse in challenging obligations arising from surety agreements.

Negligence or Deceit? Reliance Surety’s Rocky Road in Bail Bond Dispute

The case originated when Reliance Surety sought to nullify writs of execution related to several bail bonds allegedly issued under its name, claiming these bonds were spurious and fraudulently issued by a former agent, Evelyn Tinio. Reliance contended that it only discovered these bonds when notified by the Insurance Commission. The Regional Trial Court (RTC) denied Reliance’s motion, suggesting the matter fell under the Insurance Commission’s jurisdiction. Subsequently, the RTC disallowed Reliance’s notice of appeal due to non-payment of appeal fees, characterizing the incident as civil in nature despite its connection to criminal cases. The Court of Appeals (CA) upheld this decision, citing the Revised Internal Rules of the Court of Appeals (RIRCA), which treats appeals from bail bond confiscations as civil cases requiring docket fees. This set the stage for the Supreme Court review, questioning the proper procedural handling of Reliance’s challenge.

Reliance argued before the Supreme Court that the RIRCA provisions requiring appeal fees in criminal cases could not override the Rules of Criminal Procedure, which do not mandate such fees. However, the Supreme Court scrutinized Reliance’s actions from the outset, focusing on whether the surety had acted diligently in addressing the allegedly fraudulent bonds. The Court highlighted the established procedure for bail bond forfeiture, as outlined in Section 21, Rule 114 of the 1985 Rules of Criminal Procedure:

SEC. 21. Forfeiture of bailbond. — When the presence of the accused is required by the court, or these Rules, his bondsman shall be notified to produce him before the court on a given date. If the accused fails to appear in person as required, the bond shall be declared forfeited and the bondsman are given thirty (30) days within which to produce their principal and to show cause why judgment should not be rendered against them for the amount of their bond.

The Court noted that Reliance had multiple opportunities to contest the bonds’ validity before judgment was rendered, yet it failed to act promptly. The writs of execution, issued between 1995 and 1998, were demonstrably served at Reliance’s Manila office. Despite this, Reliance only filed its motion to set aside these orders months or years later. This delay, the Court found, suggested a lack of diligence and an attempt to litigate only after adverse judgments had become final.

While the Court acknowledged the possibility of construing Reliance’s motion as one to quash the writs of execution—a remedy within the court’s inherent power—it ultimately held that Reliance’s chosen mode of appeal was incorrect. An order denying a motion to set aside a writ of execution is not subject to appeal; rather, the proper recourse is a special civil action for certiorari under Rule 65. Reliance’s failure to pursue this avenue proved fatal to its case. The Court pointed out the flaw in Reliance’s petition for mandamus before the Court of Appeals, noting that mandamus serves only to compel a lower court to perform a duty, not to review the merits of a decision that was not properly appealed.

The Supreme Court also addressed Reliance’s challenge to the RIRCA provisions requiring docket fees for appeals related to bail bonds. The Court upheld the validity of these provisions, emphasizing that the RIRCA had been duly approved by the Supreme Court itself. It explained that the appeal from a judgment on a bail bond is inherently civil in nature, as the liability of the surety arises from contract law, not penal law. Therefore, the Court of Appeals acted correctly in prescribing the payment of docket fees consistent with civil cases.

The decision underscores that procedural missteps can undermine even a seemingly valid claim. Reliance’s initial negligence in monitoring its bonds, coupled with its subsequent errors in choosing the proper modes of judicial review, ultimately led to the denial of its petition. The Supreme Court emphasized that while equity may provide relief in certain circumstances, it does not excuse a party from complying with established legal procedures. A party who fails to take advantage of repeated opportunities to follow prescribed legal steps cannot expect favorable treatment.

FAQs

What was the key issue in this case?	The key issue was whether Reliance Surety followed the correct legal procedures in challenging the validity of bail bonds issued in its name and the subsequent writs of execution.
What did the Supreme Court rule?	The Supreme Court ruled against Reliance Surety, holding that it failed to follow the appropriate legal remedies and procedures in contesting its liability on the bail bonds. The Court emphasized the importance of adhering to established rules, even in cases involving alleged fraud.
What is a writ of execution?	A writ of execution is a court order that directs a law enforcement officer to enforce a judgment by seizing and selling the debtor’s property to satisfy the debt owed to the creditor.
What is a bail bond?	A bail bond is a surety bond guaranteeing that an accused person will appear in court for trial or forfeit the bond. It is typically provided by a surety company on behalf of the accused.
What is certiorari?	Certiorari is a special civil action filed with a higher court seeking review of a lower court’s decision, alleging that the lower court acted without jurisdiction or with grave abuse of discretion.
Why did Reliance Surety lose the case?	Reliance Surety lost the case primarily because it failed to promptly challenge the bail bonds and subsequently pursued the wrong legal remedies, such as appealing an order that was not appealable.
What is the Revised Internal Rules of the Court of Appeals (RIRCA)?	The RIRCA are rules promulgated by the Court of Appeals to govern its internal operations and procedures. These rules have been vetted by the Supreme Court before implementation.
Does RIRCA have the force and effect of law?	The Supreme Court stated the RIRCA, vested with the requisite imprimatur of the Supreme Court, is effectively an issuance of this Court.

This case illustrates the critical importance of understanding and adhering to legal procedures, especially when dealing with surety agreements and potential liabilities. Diligence, prompt action, and the correct choice of legal remedies are essential for protecting one’s interests in such matters.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Reliance Surety & Insurance Co., Inc. vs. Hon. Andres R. Amante, Jr., G.R. NO. 150994, June 30, 2005