Agripina Gallion v. Narciso L. Gayares

Summary

This case involves the successful challenge by a wife, Agripina Gallion, to annul a simulated property sale made by her separated husband, Faustino Limoncito, of conjugal property to his niece Paz Nava. The Supreme Court affirmed the lower court's finding that the 1924 deed of sale was fictitious, executed without consideration and with intent to defraud the wife of her conjugal property rights. The Court applied Article 1413 of the Civil Code, which prohibits alienation of conjugal property by the husband without consideration and in fraud of the wife. The decision establishes that simulated transfers of conjugal property can be completely nullified when the grantee is party to the fraud, rather than requiring mere compensation under collation principles. The case demonstrates protection of conjugal property rights against fraudulent schemes and emphasizes that lis pendens notice affects transferee rights in ongoing liquidation proceedings.