Title
Baun vs. Heirs of Baun
Case
G.R. No. 30750
Decision Date
Oct 24, 1929
An estate administrator sold property to pay debts without full heir consent or proper notice, leading to Supreme Court nullification due to procedural noncompliance.
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Case Digest (G.R. No. 30750)

Facts:

  1. Administrator's Motion to Sell Estate Property

    • On May 31, 1928, Simplicio Baun, the administrator of the estate of Jacinto Baun, filed a motion requesting authority to sell personal and real properties of the estate to pay its debts.
    • The estate owed P1,000 to Asociacion Cooperatives del Credito Rural de Tarlac and P7,412.22 to Manuel Urquico, with interest.
    • The estate lacked sufficient funds to meet these obligations.
  2. Heirs' Written Conformity to the Sale

    • On June 1, 1928, the heirs (except Damiana Manankil, the widow) gave written consent to sell the estate's only real property, consisting of land, machinery, and a building.
    • They stated that Genara Pineda offered P20,000 for the property, which they considered advantageous.
  3. Appointment of Guardian Ad Litem

    • On June 15, 1928, the court appointed Jose P. Fausto as guardian ad litem for the minor heirs, Guillermo and Simeona Calma.
    • Fausto recommended the sale of the property to Genara Pineda.
  4. Court Authorization for Sale

    • On June 29, 1928, the court authorized the administrator to sell the estate's property in the most advantageous manner.
  5. Sale to Pedro Santos

    • On July 6, 1928, the administrator sold the property to Pedro Santos for P22,000, a higher offer than Pineda's.
    • The court approved the sale on July 7, 1928, and ordered Santos to pay the amount.
  6. Heirs' Motion to Set Aside the Sale

    • On July 16, 1928, the heirs moved to annul the sale, arguing:
      • The administrator sold real property without first selling personal property.
      • Damiana Manankil, the widow, did not consent to the sale.
      • No notice of the hearing for the sale application was given to the heirs.
      • No hearing was held on the administrator's application.
  7. Administrator's Defense

    • The administrator argued:
      • The personal property was insufficient to pay the estate's debts.
      • The heirs' written consent estopped them from challenging the sale.
      • Notice of the hearing was unnecessary due to the heirs' consent.
      • The law did not require the consent of all heirs.
  8. Lower Court's Ruling

    • On September 12, 1928, the court upheld the sale, finding it beneficial to the estate and supported by the heirs' consent.

Issue:

  1. Whether the sale of the estate's real property was valid despite the lack of consent from one heir (Damiana Manankil).
  2. Whether the procedural requirements under the Code of Civil Procedure (sections 714 and 722) were complied with, including notice to heirs and a hearing.
  3. Whether the heirs are estopped from challenging the sale due to their prior written consent.
  4. Whether the sale was necessary to pay the estate's debts.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)


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