Title
Liwanag vs. Reyes
Case
G.R. No. L-19159
Decision Date
Sep 29, 1964
The court affirmed that a special administratrix can be sued for mortgage debt and supported the appointment of a receiver based on the Rules of Court and mortgage contract provisions.
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Case Digest (G.R. No. L-19159)

Facts:

  • Gliceria C. Liwanag is the special administratrix of the estate of Pio D. Liwanag.
  • Respondents include Hon. Luis B. Reyes, Judge of the Court of First Instance of Manila, and Rotegaan Financing, Inc.
  • On July 14, 1960, Pio D. Liwanag executed a real estate mortgage to Rotegaan Financing, Inc. for P180,000.00 at 12% interest per annum.
  • The mortgage required full payment by July 14, 1961.
  • Pio D. Liwanag died intestate before the payment deadline, leaving the mortgage unpaid.
  • Rotegaan Financing, Inc. filed a foreclosure complaint against the estate and Gliceria Liwanag on September 21, 1961, seeking a receiver.
  • Gliceria filed a motion to dismiss, claiming she could not be sued as a special administratrix and opposing the receiver's appointment due to ongoing administration proceedings.
  • The court issued a writ of receivership and deferred the motion to dismiss until after the trial.
  • Gliceria's motion for reconsideration was denied, prompting her to file a petition for certiorari.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court affirmed the lower court's orders, ruling that the foreclosure action against the special administratrix was correc...(Unlock)

Ratio:

  • The Court noted that the Rules of Court do not prohibit suing a special administratrix in a foreclosure action, which is essential for protecting creditors from the statute of limitations.
  • Denying the action on technical grounds would defeat the purpose of the mortgage.
  • The Court found no abuse of discretion in appointing a receiver, as the mortgage contract allowed for it in case of ju...continue reading

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