Aquilino Calvo v. Co Cang & Co.

Summary

This case involved a dispute among multiple creditors over P477.95 in proceeds from a sheriff's sale of property belonging to debtors Lim Kian and Lim Tiang Teng. Co Cang & Co. had sold goods to the debtors and obtained an attachment, while other creditors had obtained prior judgments. The trial court applied Article 1924 of the Civil Code, awarding proceeds to creditors with earlier judgments. The Supreme Court reversed, applying Article 1922 paragraph 1, which grants preference to vendors of personal property found in the debtor's possession. The Court held that Co Cang & Co.'s right as unpaid vendor of the identical goods sold took priority over other creditors' judgment liens, establishing the principle that the nature of the credit, not the judgment date, determines preference in execution sales.