Facts:

• The case involves the sale of "The Alhambra" property in Manila.
• Prior to October 21, 1898, Thomas E. Evans and Walter Jackson were the owners of the establishment.
• Evans attempted to secure a loan from Paul Blum and agreed to buy out Jackson's interest in the property.
• On October 21, 1898, Evans conveyed an undivided half of the property to Whaley for $1.
• On the same day, Evans and Whaley executed a bill of sale of the entire property to Paul Blum for 32,443.35 pesos.
• They also executed an agreement stating that the Alhambra had been mortgaged to Blum and that Evans and Whaley would be equal partners in the business.
• Blum advanced the full amount of the loan in cash.
• The business continued under this agreement until December 4, 1899, when Henry Blum notified Evans and Whaley that the amount due on the mortgage was 28,927.97 pesos.
• On January 4, 1900, Paul Blum took possession of the establishment and Whaley surrendered the property to him in satisfaction of the debt.
• On January 26, 1900, four documents were executed and delivered, including a deed of the entire property from Paul Blum to Whaley, a deed of an undivided half of the property from Whaley to Johnson, a mortgage by Whaley to Paul Blum, and a contract of partnership between Whaley and Johnson.
• Johnson paid 15,000 pesos to Whaley for the undivided half of the property, which was the money of Samuel J. Levy.
• Whaley and Johnson took possession of the property and continued to manage it until July 1901 when it was closed due to a law prohibiting the sale of liquor on the Escolta.

Issue:

• (Unlock)

Ruling:

• The court ruled in favor of the defendants, Paul Blum and Henry Blum, and affirmed the judgment of the Court of First Instance.
• The court held that Johnson acquired a valid interest in the property through his deed from Whaley.
• There was no evidence of fraud on the part of the Blums.
• The case...(Unlock)

Ratio:

• John...continue reading