Nicanor Jacinto v. Conrado de Leon

Summary

Jacinto sued sheriff De Leon and his sureties for damages after the sheriff refused to retain P19,500 from execution sale proceeds based on Jacinto's third-party claim. Jacinto's credit against judgment debtor Carpenter was not yet due when the claim was filed on November 16, 1923 (payable December 15, 1923). The Supreme Court reversed the trial court's favorable ruling, holding that credits not yet demandable cannot claim preference over existing judgments under Civil Code Article 1924. The Court emphasized that preferential credit provisions apply only to debts already due and payable. Since Jacinto had no legal right to preference at the time of his claim, the sheriff had no obligation to retain the funds and incurred no liability. The decision established that maturity is a prerequisite for credit preference, and subsequent judgments cannot retroactively create preferential rights.