Holcim Philippines v. Joseph F · G.R. 203871

Petitioner: Holcim Philippines
Respondent: Joseph F. Losloso
Citation: G.R. No. 203871
Court: Supreme Court
Division: Second Division
Decided: January 15, 2014

Summary

Holcim Philippines sued for collection of P13,178,725 in unpaid cement purchases and rescission of land conveyances allegedly made to deplete debtors' assets. The Supreme Court upheld the Court of Appeals' dismissal of the rescission claim for failure to state a cause of action. The Court ruled that accion pauliana under Article 1381(3) of the Civil Code requires prior exhaustion of principal remedies against the debtor, specifically execution of judgment credit and accion subrogatoria. Since Holcim had not yet obtained judgment against the principal debtors, the rescission action was premature. The complaint failed to allege that the creditor had no other legal remedy to satisfy its claim, a fatal defect in accion pauliana cases. However, the collection suit against the Dela Cruz spouses remained viable and should proceed.

Statutes applied

Civil Code, Art. 1381

Related cases

Other Philippine cases on the same provisions and issues.

Vicelet Lalicon v. National Housing Authority G.R. No. 185440
Heirs of Sofia Quirong v. Development Bank of the Philippines G.R. No. 173441
Mondragon Personal Sales v. Victoriano S. Sola, Jr. G.R. No. 174882
Congregation of the Religious of the Virgin Mary And/Or the Superior General of the Religious of the Virgin Mary v. Emilio Q. Orola G.R. No. 169790
Alfonso L. Iringan v. Hon. Court of Appeals G.R. No. 129107
Vicente I. Santos v. Intermediate Appellate Court G.R. No. 75384
Luis Mirasol v. Maria Lim G.R. No. 39389
Marcela Alvaran v. Bernardo Marquez G.R. No. 4465

By the Intellegal Editorial Board · January 15, 2014

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