Saddul v. Losloso DIGEST

Saddul v.
Losloso
G.R. No. 205093 RULING: No.
January 30, 2019 Saddul filed a complaint for Accion Pauliana pursuant to Art. 1381 of the Civil Code claiming
Topic: Remedies for Breach of Obligations that the conveyance of properties by the Sps. Dela Cruz immediately after incurring a loan is
Petitioner: Zenaida B. Saddul a classic example of a conveyance entered into in fraud of creditors.
Respondent: Joseph F. Losloso and Elizabeth F. Losloso
Ponente: Accion Pauliana has the following requisites: 1) The plaintiff asking for rescission has a credit
prior to the alienation, although demandable later; 2) the debtor has made a subsequent
DOCTRINE: An accion pauliana is an action to rescind contract in fraud of creditors and is a contract conveying a patrimonial benefit to a third person; 3) the creditor has no other legal
remedy of last resort, after all other legal remedies have been exhausted. Failure of the remedy to satisfy his claim; 4) the act being impugned is fraudulent; 5) the third person who
creditor to show that all other legal remedies have been exhausted is a ground for dismissal received the property, if it is by onerous title, has been an accomplice in the fraud.
of the action.
The issue lies with the 3 rd requisite. Accion pauliana is a remedy of last resort. This means
FACTS: that this action only accrues when the creditor has no other legal remedies to satisfy his
 Spouses Herminigildo Dela Cruz and Norma Caringal (Sps. Dela Cruz) obtained a claim. For as long as the creditor still has a remedy at law for the enforcement of his claim
loan from Petitioner Saddul in the amount of P5,680,000.00 upon assurance that against the debtor, the creditor will not have any cause of action against the debtor for
they are of sound and stable financial status. The loan was secured by a chattel rescission of the contracts entered into by and between the debtor and another person/s. An
mortgage covering certain motor vehicles, as well as post-dated checks payable on accion pauliana presupposes a judgment and the issuance by the trial court of a writ of
different occasions. execution and the failure of the Sheriff to enforce and satisfy the judgment of the court. It
 When the first check became due and demandable, Saddul presented it to the presupposes that the creditor has exhausted the property of the debtor.
drawee bank for payment but it was dishonored for being drawn on a closed
account. The 2nd check was similarly dishonored. Saddul tried to communicate this An accion pauliana is an action to rescind contract in fraud of creditors. And the following
to the Sps. Dela Cruz but to no avail. successive measures must be taken by a creditor before he may bring an action for
 Subsequently, Saddul learned that the Sps. Dela Cruz sold two parcels of land to rescission: 1) exhaust the properties of the debtor through levying by attachment and
their son Harold and his wife Clariss and to Clariss’ siblings herein respondents execution upon all the property of the debtor, except such properties exempt by law from
Joseph and Elizabeth Losloso. execution; 2) exercise all the rights and actions of the debtor, save those personal to him
(accion subrogatoria); 3) seek rescission of the contracts executed by the debtor in fraud of
 Since Saddul could not effect any extrajudicial demand on the Sps. Dela Cruz
their rights (accion pauliana)
because their whereabouts were unknown, she decided to institute an accion
pauliana against Respondents by seeking the rescission of the deeds of absolute
Saddul failed to show that she had exhausted all other legal remedies.
sale, the cancellation of their certificates of title, and the restoration of the same to
the Sps. Dela Cruz.
First, Saddul alleged that she filed a case for collection of a sum of money against the Sps.
 Respondent’s Answer: moved for dismissal for failure of the complaint to state a
Dela Cruz before RTC Bambang which had already been decided back on July 16, 2009 and
cause of action considering that accion pauliana is a subsidiary remedy which can
which judgment had remained unsatisfied as the properties owned by the Sps. Dela Cruz are
only be instituted after all remedies available have been exhausted by the creditor.
yet to be found and attached. Nonetheless, Saddul failed to attach in the complaint proof of
Since the loan was secured by a chattel mortgage over various motor vehicles,
failure to execute the decision.
Saddul should have first sought these personal properties for the full and complete
satisfaction of the loan. Respondents claim that the complaint is then premature.
Second, Saddul alleged that the motor vehicles subject of a Chattel Mortgage became the
 The RTC denied the MTD and held that while the action for rescission is subsidiary
subject of a writ of preliminary attachment and notice of attachment was issued by RTC
in nature, petitioner’s allegation that she is unable to collect despite having filed a
Cauayan City AND a writ of attachment and notice of attachment was issued by RTC Ilagan
separate civil case for collection of sum of money against Spt. Dela Cruz already
City in other civil cases for sum of money filed against Sps. Dela Cruz. However, in her
sufficiently stated her cause of action against respondents.
complaint Saddul did not indicate any effort to pursue her rights over the motor vehicles.
 The Respondents filed a petition for certiorari before the CA assailing the denial of
their MTD.
DISPOSITIVE: WHEREFORE, the petition is DENIED.
 The CA granted the petition and annulled and set aside the decision of the RTC. CA
dismissed the complaint for accion pauliana for lack of merit.
 Hence this petition.
ISSUE: W/N the complaint for accion pauliana is the proper remedy

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