Jose Mcmicking v. Domingo Tremoya

Summary

This case involves competing claims for preference from execution sale proceeds of judgment debtor Lim Buanco's merchandise. Multiple creditors claimed priority: vendors seeking payment for unsold goods, tax collector claiming unpaid taxes, landlords seeking rent, and employees claiming salaries. The Supreme Court established that creditors claiming preference for unpaid merchandise must prove that specific goods seized were actually unpaid for, not merely that they had general debts. The Court applied Civil Code provisions on preference of credits, affirming most claims but reversing Holliday, Wise & Co.'s preference for lack of specific proof. The decision clarifies the evidentiary requirements for establishing preferred creditor status under the Civil Code's preference provisions.