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Philippine Supreme Court Jurisprudence > Year 2001 > March 2001
Decisions > G.R. No. 144169 March 28, 2001 - KHE HONG CHENG v.
ChanRobles On-Line Bar COURT OF APPEALS, ET AL.:
FIRST DIVISION
KHE HONG CHENG, alias FELIX KHE, SANDRA JOY KHE and RAY
STEVEN KHE, Petitioners, v. COURT OF APPEALS, HON. TEOFILO
GUADIZ, RTC 147, MAKATI CITY and PHILAM INSURANCE CO.,
SPONSORED SEARCHES INC., Respondents.
appeals court
DECISION
debt settlement
settlement claims
KAPUNAN, J.:
civil judgement
land contract Before the Court is a Petition for Review on Certiorari under Rule 45,
seeking to set aside the decision of the Court of Appeals dated April 10,
SPONSORED SEARCHES 2000 and its resolution dated July 11, 2000 denying the motion for
filing a lawsuit reconsideration of the aforesaid decision. The original complaint that is
the subject matter of this case is an accion pauliana — an action filed
cheng store by Philam Insurance Company, Inc. (respondent Philam) to rescind or
annul the donations made by petitioner Khe Hong Cheng allegedly in
cheng
fraud of creditors. The main issue for resolution is whether or not the
civil judgement action to rescind the donations has already prescribed. While the first
paragraph of Article 1389 of the Civil Code states: "The action to claim
sample briefs law rescission must be commenced within four years . . ." the question is,
from which point or event does this prescriptive period commence to
run? chanrob1es virtua1 1aw 1ibrary
March-2001 Jurisprudence The facts are as follows: chanrob1es virtual 1aw library
Petitioner Khe Hong Cheng, alias Felix Khe, is the owner of Butuan
A.M. No. MTJ-00-1279
Shipping Lines. It appears that on or about October 4, 1985, the
March 1, 2001 - ALICIA
Philippine Agricultural Trading Corporation shipped on board the vessel
GONZALES-DECANO v.
M/V PRINCE ERIC, owned by petitioner Khe Hong Cheng, 3,400 bags of
ORLANDO ANA F. SIAPNO
copra at Masbate, Masbate, for delivery to Dipolog City, Zamboanga del
G.R. No. 113265 March 5, Acting thereon, the trial court denied the motion to dismiss. It held that
2001 - PEOPLE OF THE respondent Philam’s complaint had not yet prescribed. According to the
PHIL. v. MANUEL PEREZ trial court, the prescriptive period began to run only from December 29,
1993, the date of the decision of the trial court in Civil Case No. 13357.
G.R. No. 118680 March 5, 4
2001 - MARIA ELENA
RODRIGUEZ PEDROSA v. On appeal by petitioners, the CA affirmed the trial court’s decision in
COURT OF APPEALS, ET AL. favor of respondent Philam. The CA declared that the action to rescind
the donations had not yet prescribed. Citing Articles 1381 and 1383 of
G.R. No. 123788 March 5, the Civil Code, the CA basically ruled that the four year period to
2001 - DOMINADOR DE institute the action for rescission began to run only in January 1997,
GUZMAN v. COURT OF and not when the decision in the civil case became final and executory
APPEALS, ET AL. on December 29, 1993. The CA reckoned the accrual of respondent
Philam’s cause of action on January 1997, the time when it first learned
G.R. No. 124686 March 5, that the judgment award could not be satisfied because the judgment
2001 - PEOPLE OF THE creditor, petitioner Khe Hong Cheng, had no more properties in his
PHIL. v. ROQUE ELLADO name. Prior thereto, respondent Philam had not yet exhausted all legal
means for the satisfaction of the decision in its favor, as prescribed
G.R. No. 127158 March 5, under Article 1383 of the Civil Code. 5
2001 - PEOPLE OF THE
PHIL. v. JULIO HERIDA, ET The Court of Appeals thus denied the petition for certiorari filed before
OF DOMINICAN HILL v.
G.R. No. 136173 March 7, Indeed, this Court enunciated the principle that it is the legal possibility
2001 - PEOPLE OF THE of bringing the action which determines the starting point for the
PHIL. v. ERNESTO ICALLA computation of the prescriptive period for the action. 7 Article 1383 of
the Civil Code provides as follows: chanrob1es virtual 1aw library
G.R. Nos. 139962-66 It is thus apparent that an action to rescind or an accion pauliana must
March 7, 2001 - PEOPLE OF be of last resort, availed of only after all other legal remedies have been
THE PHIL. v. EUGENIO exhausted and have been proven futile. For an accion pauliana to
MANGOMPIT accrue, the following requisites must concur: chanrob1es virtual 1aw library
2001 - NAPOLEON H.
GONZALES v. COURT OF
An accion pauliana accrues only when the creditor discovers that he has
APPEALS, ET AL.
no other legal remedy for the satisfaction of his claim against the debtor
other than an accion pauliana. The accion pauliana is an action of a last
G.R. No. 125901 March 8,
resort. For as long as the creditor still has a remedy at law for the
2001 - EDGARDO A. TIJING,
enforcement of his claim against the debtor, the creditor will not have
ET AL. v. COURT OF
any cause of action against the creditor for rescission of the contracts
APPEALS, ET AL.
entered into by and between the debtor and another person or persons.
Indeed, an accion pauliana presupposes a judgment and the issuance
G.R. No. 130378 March 8,
by the trial court of a writ of execution for the satisfaction of the
2001 - PEOPLE OF THE
judgment and the failure of the Sheriff to enforce and satisfy the
PHIL. v. ARNEL MATARO, ET
judgment of the court. It presupposes that the creditor has exhausted
AL.
the property of the debtor. The date of the decision of the trial court
against the debtor is immaterial. What is important is that the credit of
G.R. No. 134279 March 8,
the plaintiff antedates that of the fraudulent alienation by the debtor of
2001 - PEOPLE OF THE
his property. After all, the decision of the trial court against the debtor
G.R. Nos. 135234-38 Petitioners, however, maintain that the cause of action of respondent
March 8, 2001 - PEOPLE OF Philam against them for the rescission of the deeds of donation accrued
THE PHIL. v. ALEJANDRO as early as December 27, 1989, when petitioner Khe Hong Cheng
GUNTANG registered the subject conveyances with the Register of Deeds.
Respondent Philam allegedly had constructive knowledge of the
G.R. No. 137649 March 8, execution of said deeds under Section 52 of Presidential Decree No.
2001 - PEOPLE OF THE 1529, quoted infra, as follows: chanrob1es virtual 1aw library
PHIL. v. RODOLFO
VILLADARES SECTION 52. Constructive knowledge upon registration. — Every
conveyance, mortgage, lease, lien, attachment, order, judgment,
G.R. No. 138137 March 8, instrument or entry affecting registered land shall, if registered, filed or
2001 - PERLA S. ZULUETA v. entered in the Office of the Register of Deeds for the province or city
ASIA BREWERY where the land to which it relates lies, be constructive notice to all
persons from the time of such registering, filing, or entering. chanrob1es virtua1 1aw 1ibrary
ANIANO A. DESIERTO
G.R. Nos. 140011-16 In the same case, the Court also quoted the rationale of the CA when it
March 12, 2001 - PEOPLE upheld the dismissal of the accion pauliana on the basis of lack of cause
OF THE PHIL. v. EUSTAQUIO of action: jgc:chanrobles.com.ph
MORATA
"In this case, plaintiff’s appellants had not even commenced an action
A.M. No. P-01-1464 March
against defendants-appellees Bareng for the collection of the alleged
13, 2001 - SALVADOR O.
indebtedness. Plaintiffs-appellants had not even tried to exhaust the
BOOC v. MALAYO B.
property of defendants-appellees Bareng. Plaintiffs-appellants, in
BANTUAS
seeking the rescission of the contracts of sale entered into between
defendants-appellees, failed to show and prove that defendants-
G.R. No. 103073 March
appellees Bareng had no other property, either at the time of the sale or
13, 2001 - REPUBLIC OF
at the time this action was filed, out of which they could have collected
THE PHIL. v. COURT OF
this (sic) debts." (Emphasis ours)
APPEALS, ET AL.
ALDAY, ET AL. v.
ESCOLASTICO U. CRUZ It bears stressing that petitioner Khe Hong Cheng even expressly
declared and represented that he had reserved to himself property
G.R. Nos. 116001 & sufficient to answer for his debts contracted prior to this date: jgc:chanrobles.com.ph
G.R. No. 102985 March WHEREFORE, premises considered, the petition is hereby DENIED for
15, 2001 - RUBEN BRAGA lack of merit.
CURAZA v. NLRC, ET AL.
SO ORDERED.
G.R. No. 133480 March
15, 2001 - PEOPLE OF THE Davide, Jr., C.J., Pardo and Ynares-Santiago, JJ., concur.
PHIL. v. FLORANTE
AGUILUZ Puno, J., on official leave.
12 Annex "K" .
G.R. No. 131544 March
16, 2001 - EPG
13. Section 1, Rule 16, 1997 Rules of Court.
CONSTRUCTION CO., ET AL.