Mary Rose A. Kung v. Lilian Tan

Summary

Mary Rose Kung loaned P4.4 million to Lilian Tan secured by real estate mortgage. When Tan defaulted, Kung obtained a writ of attachment and won a separate specific performance case. However, Tan had sold the mortgaged property to Flora San Diego, who subsequently sold it to the Tan Brothers. Kung filed for nullification of the final title claiming fraudulent transfers to defeat her creditor's claim. The Supreme Court denied her petition, ruling she failed to prove fraud under Article 1387 of the Civil Code. The Court noted that both subsequent buyers had notice of Kung's lien through the carried-over writ of attachment, and that Kung retains recourse through the pending criminal estafa case against Tan.