Ladislao Afable v. Carmen Belando

Summary

This case involves a priority dispute between creditors over rents from mortgaged property. Afable obtained a judgment against Belando and attached rents from her Cavite properties. However, La Urbana had a prior mortgage on the same properties and had already secured a foreclosure judgment. The Supreme Court ruled that under Civil Code Article 1877 and Mortgage Law provisions, mortgage liens automatically include rents from mortgaged property once the mortgage obligation becomes due. Since La Urbana's foreclosure judgment preceded Afable's attachment, the rents belonged to La Urbana as the secured creditor. The Court rejected arguments that La Urbana waived its rights by pursuing foreclosure instead of taking possession. This decision establishes the principle that mortgage creditors have priority over rents from mortgaged property against subsequent judgment creditors.