Provincial Sheriff of Pampanga vs. Court of Appeals GR No. L-25152. February 26, 1968 case digest

Concept:  Art. 1387

Facts:

·         An action for recovery of a sum of money was filed on June 4, 1960, by Cirilo D. Cabral and Zacarias Perez (both are the petitioners) against Elpidio Agustin and Manuel Flores in the Court of First Instance of Bulacan.

·         Elpidio has a business, the cleverly titled  “Modern Furniture Store” (wow, such creative, much original, very clever).  On January 9, 1961 a fire broke out, shit destroyed Elpidio’s store.  On January 12, 1961 Elpidio surrendered his license to operate to the municipal treasury.

·         Not long thereafter, Elpidio’s brother, Marciano (respondent), erected a store in the same site where Elpidio’s store burned down, Marciano named his store *wait for it* “MODERN FURNITURE STORE” (really dude? Same shit again?). On February 20, 1961, for business purposes, Marciano secured a new license and privilege tax to operate the store. And on the same date, Elpidio verbally transferred "Modern Furniture Store" to his brother Marciano.

·         July 13, 1961. The Court of First Instance of Bulacan, in the aforementioned case, rendered judgment against Elpidio (who had confessed judgment) and Manuel Flores jointly and severally, for P10,685.15 plus interest and P500.00 attorney's fees.

·         CA affirmed the decision.

·         May 3, 1963. The Provincial Sheriff levied some of the pieces of furniture found in "Modern Furniture Store." Stating that said properties do not belong to Elpidio Agustin but to him, Marciano filed a third party claim with the sheriff. An indemnity bond, however, was posted by the judgment creditors (Cabral and Perez) in the sheriff's favor, so he issued notice that the properties levied upon will be sold at public auction on May 18, 1963.

·         May 17, 1963. Marciano filed in the Court of First Instance of Pampanga the present action, against judgment creditors Cabral and Perez and the sheriff, to be declared owner of the pieces of furniture levied upon, with preliminary injunction and damages. A writ of preliminary injunction was issued enjoining the sheriff from proceeding with the sale.

·         The Court of First Instance dismissed the complaint but the CA reversed the decision of the lower court and claimed that Marciano is the owner.

Issue: W/ON Article 1387 of the Civil Code on presumption of fraud apply?

Held:

No. The provision in question applies only when there has in fact been an alienation or transfer, whether gratuitously or by onerous title. In the present case, the finding of the Court of Appeals, which is factual and therefore not proper for Us to alter in this appeal, is that the store of Marciano Agustin is a new and different one from that of Elpidio Agustin. True, Marciano Agustin testified that "Modern Furniture Store" was transferred, verbally to him by Elpidio Agustin on February 20, 1961. As the Court of Appeals found, however, this referred to the business name and style, not to the store or its contents, as the store and contents were completely new, coming from the capital of Marciano Agustin, whereas Elpidio's store and its contents of furniture were destroyed totally by the fire of January 9, 1961.