Case Digest (G.R. No. 10578)
Case Digest (G.R. No. 10578)
Facts:
Pacific Commercial Company v. Mauricia Sotto, G.R. No. 10578. March 14, 1916, the Supreme Court, Trent, J., writing for the Court. The plaintiff, Pacific Commercial Company (plaintiff/appellee), sold and delivered merchandise during 1913 to the La Fortuna Bakery totaling P3,303.75. Payments of P1,200 were made, leaving an outstanding balance of P2,103.75. On June 18, 1913, Claro Ong, the owner, sold the bakery to Mamerto Laudico, who purportedly assumed all liabilities; Ong died on June 21, 1913. On June 28, 1913, Laudico sold the bakery to Matias Ubaldo, who likewise purportedly assumed outstanding obligations.The plaintiff presented its claim against Ong’s estate to the estate commissioners; the claim was disallowed. The plaintiff appealed to the Court of First Instance, which, after trial, entered judgment for the plaintiff against the estate of Claro Ong for P2,103.75, with legal interest from July 7, 1913, and costs. The defendant, represented by Mauricia Sotto as administratrix of the estate (defendant/appellant), appealed to the Supreme Court.
On appeal the defendant alleged four principal errors by the trial court: (a) the court erred in finding that Ong’s obligation was not transferred to Laudico and Ubaldo with the plaintiff’s knowledge and consent; (b) the court erred in finding that the plaintiff did not release Ong’s estate by its acts; (c) the court erred in failing to deduct P339 for goods sold on June 19, 1913 to Laudico (argued as not Ong’s debt); and (d) the court erred in finding that Mauricia Sotto was the qualified administratrix liable for the obligation.
At trial the plaintiff produced testimony from Madsen, assistant treasurer, who stated that although informed of the first sale (to Laudico) and later told Ubaldo had assumed the debts, the company insisted it would look to Ong for payment and would only credit any payments to Ong’s account; the company never accepted Ubaldo as a new debtor. A collector corroborated that receipts were made in the name of La Fortuna Bakery and that neither he nor Madsen had authority to accept a new debtor. Ubaldo testified he assumed the obligations and that the plaintiff accepted him as debtor. The trial court credited the plaintiff’s witnesses, found no creditor consent to novation, held the P1,200 paid by Ubaldo were applied to Ong’s account (including the P339 item), and sustained the claim against Ong’s estate. The special-administratrix argument under section 661 of the Code of Civil Procedure was raised only on appeal; commissioners had heard the claim and the trial court considered the evidence. The Supreme Court affirmed the trial court’s judgment, with the qualification that payment of the judgment, interest and costs should be made out of the estate by the regular administrator or executor.
Issues:
- Did the obligation owed by Claro Ong to Pacific Commercial Company transfer to the purchasers (Laudico and Ubaldo) so as to relieve Ong’s estate (i.e., was there a novation requiring the creditor’s consent)?
- Did the plaintiff’s acceptance of payments from Matias Ubaldo operate as a release of Ong’s estate from liability?
- Should P339 (goods sold June 19, 1913) be deducted from the judgment because those goods were sold to Laudico (not Ong)?
- Was Mauricia Sotto in her capacity as special administratrix immune from suit or otherwise improperly made party so as to defeat the plaintiff’s action against the estate?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)