Case Digest (G.R. No. L-4170)
Facts:
In Civil Case No. 868 of the Court of First Instance of Negros Occidental, Pedro L. Litonjua obtained a judgment against Claudio Montilla for the payment of P4,000 with legal interest and costs of P39.00, and a writ of execution issued but no levyable property was found. On June 12, 1950, Pedro L. Litonjua filed in Special Proceeding No. 532, Intestate Estate of Agustin Montilla, Sr., a motion to sell the interest of Claudio Montilla in the intestate estate to satisfy the judgment; the motion was opposed by Claudio Montilla and Agustin B. Montilla, Jr., administrator, and on August 7, 1950 the Court of First Instance denied the motion, whereupon Litonjua appealed.
Issues:
- May a creditor of an heir who is not a creditor of the deceased have the heir's interest in the intestate estate sold to satisfy the creditor's judgment before payment of the deceased's debts and determination of net assets?
- May a person who is not a creditor of the deceased intervene in proceedings relative to the deceased's intestate estate to collect against an heir's share?
Ruling:
The Court affirmed the order of the Court of First Instance denying Pedro L. Litonjua's motion and imposed costs against the appellant. The Court held that the appellant could not compel sale of Claudio Montilla's interest nor intervene in the estate proceedings because he was not a creditor of the deceased.
Ratio:
The Court relied on Ortiga Brothers & Co. vs. Enage and Yap Tico, 18 Phil. 345, and applicable Civil Code and Code of Civil Procedure provisions, reasoning that the debts of the deceased must first be paid and the net assets of the estate determined before heirs may be required to satisfy claims from their inherited shares. The Court reiterated that a person who is not a creditor of the deceased has no right to intervene in the settlement of the succession and that an execution could not be lawfully levied upon property of an intestate succession to satisfy claims against heirs until the credits against the deceased have been discharged (citing Arts. 659 et seq., 1026, 1027, 1032 and Art. 1034, and secs. 734 et seq., Code of Civil Procedure).
Doctrine:
- A creditor of an heir may collect from the heir's inheritance only after all debts of the testate or intestate estate have been paid and the net assets divisible among the heirs are known.
- A person who is not a creditor of the deceased has no right to intervene in proceedings relative to the deceased's estate or its settlement.
- An execution cannot be levied upon the property of an intestate succession to pay debts of the widow or heirs until the credits held against the deceased at the time of death have been paid, and only thereafter may remaining property be attached (see Art. 1034).