LEGAL NOTE 0084: WHAT IS JUDICIAL COMPROMISE? WHAT ARE ITS EFFECTS?

 

SOURCE: BANGKO SENTRAL NG PILIPINAS VS. ORIENT COMMERCIAL BANKING CORPORATION, JOSE C. GO, GEORGE C. GO, VICENTE C. GO, GOTESCO PROPERTIES, INC., GO TONG ELECTRICAL SUPPLY INC., EVER EMPORIUM, INC., EVER GOTESCO RESOURCES AND HOLDINGS INC., GOTESCO  TYAN MING DEVELOPMENT INC., EVERCREST CEBU GOLF   CLUB AND RESORTS, INC., NASUGBU RESORTS INC., GMCC UNITED DEVELOPMENT CORP., GULOD RESORT, INC., OK STAR, EVER PLAZA, INC. AND EVER ELECTRICAL MFG., INC., (G.R. NO. 148383,  29 JUNE 2011, VILLARAMA, JR., J.) SUBJECTS: MOOT AND ACADEMIC CASE; JUDGMENT BASED ON COMPROMISE. (BRIEF TITLE: BANGKO SENTRAL VS. ORIENT COMMERCIAL).

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WHAT IS JUDICIAL COMPROMISE AND WHAT ARE ITS EFFECTS?

A JUDICIAL COMPROMISE IS A COMPROMISE AGREEMENT INTENDED TO RESOLVE A MATTER ALREADY UNDER LITIGATION.

IT HAS THE FORCE AND EFFECT OF A JUDGMENT. IT HAS BECOME A JUDGMENT THAT IS SUBJECT TO EXECUTION IN ACCORDANCE WITH THE RULES.

A compromise agreement intended to resolve a matter already under litigation is a judicial compromise.  Having judicial mandate and entered as its determination of the controversy, such judicial compromise has the force and effect of a judgment.  It transcends its identity as a mere contract between the parties, as it becomes a judgment that is subject to execution in accordance with the Rules of Court.[1][12]

 

[1][12] Rañola v. Rañola, G.R. No. 185095, July 31, 2009, 594 SCRA 788, 794.