- Petitioner
- The National Exchange Co.
- Respondent
- Jose H. Katigbak
- Citation
- G.R. No. 31871
- Court
- Supreme Court
- Decided
- March 15, 1930
Summary
National Exchange Co. sued to set aside a fraudulent transfer of judgment rights made by their debtor Jose H. Katigbak. After obtaining a P19,807.85 judgment against Katigbak in 1927, execution writs repeatedly returned unsatisfied due to no discoverable property. When Katigbak subsequently won a P28,500 judgment against third parties, he immediately transferred all rights to Po Sun Tun for P20,000, allegedly to evade his creditors. The Supreme Court affirmed the trial court's finding that this transfer was fraudulent under Article 1297 of the Civil Code, which creates a rebuttable presumption of fraud for alienations made by judgment debtors. Since defendants failed to present evidence overcoming this presumption, the transfer was declared null and void, protecting the creditor's rights to satisfy the outstanding judgment.