Title
Johnson and Johnson , Inc. vs. Court of Appeals
Case
G.R. No. 102692
Decision Date
Sep 23, 1996
Johnson & Johnson sued Delilah Vinluan for unpaid debts; court ruled her solely liable, exempting conjugal assets as debt lacked spousal consent or family benefit. Final judgment upheld, improper levy on conjugal properties reversed.

Case Summary (G.R. No. 102692)

Applicable Law

The applicable law in this case includes provisions from the 1987 Philippine Constitution, the Civil Code, and the Family Code, particularly Articles 161, 117, and 122 regarding conjugal obligations and liabilities.

Procedural History

The case began in the Regional Trial Court of Makati, Branch 137, where Johnson & Johnson filed a complaint against the Vinluan spouses for collection of a debt incurred by Delilah, amounting to P235,880.89, arising from her purchases of products for her business, Vinluan Enterprises. The trial court found Delilah solely liable, concluding that Capt. Alejo did not consent to the transactions and that the conjugal partnership did not benefit from the debt incurred.

Trial Court's Decision

On February 5, 1985, the trial court issued a decision mandating Delilah Vinluan to pay the owed amount, including interest and attorney's fees. The court explicitly found that Capt. Alejo had no liability since the obligations were incurred without his knowledge or consent, and the conjugal partnership had not benefited from Delilah’s business activities.

Execution Issues

In 1989, after a writ of execution was issued to enforce the judgment against Delilah Vinluan, the Provincial Sheriff of Rizal levied not only on her properties but also on the conjugal properties of the Vinluan spouses. Capt. Alejo filed a third-party claim to dispute the levy on conjugal properties, arguing that such action contradicted the original ruling of the court that exempted him from liability.

Trial Court's Subsequent Orders

The trial court, in its orders issued on July 24 and October 4, 1989, denied Alejo's claims and ruled that his consent could be inferred due to his actions. It stated that even if explicit consent was absent, the conjugal property could still be held liable due to the implications of Article 172 of the Civil Code. This led the appellate court to review the circumstances surrounding the trial court's orders, particularly focusing on whether the latter reversed its earlier final judgment.

Appellate Court Decision

The Court of Appeals ruled that the trial court had abused its discretion by effectively reversing its final decision regarding Alejo's liability. It emphasized that a final judgment should not be modified, clarified, or reversed after it has become executory. The appellate court maintained that liability for the debt incurred by Delilah could not extend to Alejo or the conjugal partnership, asserting that the trial court should only enforce the original judgment which required Delilah to pay.

Supreme Court's Ruling

The Supreme Court upheld the appellate court's decision, confirming that the conjugal partnership could not be held liable for debts contracted by one spouse without the explicit consent of the other or for th

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