- Petitioner
- Pedro Regalado
- Respondent
- Luchsinger & Co.
- Citation
- G.R. No. 2250
- Court
- Supreme Court En Banc
- Division
- En Banc
- Ponente
- Willard, J.
- Decided
- February 17, 1906
Summary
The Supreme Court affirmed the lower court's decision finding that the 1900 sale of a warehouse from Jose Regalado to his son Pedro was fraudulent as to creditor Luchsinger & Co. The Court applied Article 1297 of the Civil Code, which presumes fraud when alienations are made by persons against whom judgments have been rendered or writs of seizure issued. Since Luchsinger & Co. had obtained judgments against Jose Regalado in 1896-1897 and had levied attachment on the warehouse, the 1900 sale was presumptively fraudulent. The evidence failed to overcome this presumption, particularly given the warehouse's 25,000 peso value versus the alleged 15,000 peso purchase price, and Pedro's questionable financial capacity. The Court also found that Jose Regalado had no other substantial property to satisfy creditors, making the rescission action proper under Article 1291.