J. Mcmicking v. Padern

Summary

Supreme Court En Banc case involving creditor preference rights over execution sale proceeds. Insolvent company Padern, Moreno, Jimenez & Co., S. en C. fraudulently transferred assets to newly organized corporation to avoid creditors. Multiple creditors including Peterson (P5,813.06 judgment) and Casal (P821.49 rent judgment) claimed priority over sheriff's proceeds of P3,017.89. Court ruled the asset transfer was void as fraudulent conveyance by insolvent debtor. Despite Peterson's earlier judgment date, Casal received preference under Civil Code Article 1922, paragraph 7, as rent creditor. Court ordered Casal paid first, with balance to Peterson, establishing important precedent on creditor preferences and fraudulent transfers by insolvent entities.