Professional Documents
Culture Documents
Art 1177 Anchor Savings Bank (Formerly Anchor Finance and Investment Corporation) vs. Henry H. Furigay, ET AL.
Art 1177 Anchor Savings Bank (Formerly Anchor Finance and Investment Corporation) vs. Henry H. Furigay, ET AL.
Facts:
Anchor Savings Bank filed a complaint for a sum of money and damages with replevin against
Ciudad Transport Services et al
RTC ruled in favor of ASB
Respondent donated the registered properties to their children
Anchor Savings Bank filed a complaint for Rescission of deed of donation, Title and Damages
assailed that it was made in fraud
The CTS did not answer instead question the jurisdiction of the court
RTC ruled that the action for rescission had already prescribed and should be filed within 4 years
from discovery of fraud
RTC dismissed the case on the ground of lack of jurisdiction
CA agreed with ASB that its complaint should not have been dismissed on the ground that it
failed to pay the correct docket fees
CA found that the action of ASB had not yet prescribed
Issue:
Is the action of ASB to file a complaint for rescission premature?
Held:
YES, The creditors, after having pursued the property in possession of the debtor to satisfy their claims,
may exercise all the rights and bring all the actions of the latter for the same purpose, save those which
are inherent in his person; they may also impugn the actions which the debtor may have done to
defraud them.
Consequently, following the subsidiary nature of the remedy of rescission, a creditor would have a cause
of action to bring an action for rescission, if it is alleged that the following successive measures have
already been taken: (1) exhaust the properties of the debtor through levying by attachment and
execution upon all the property of the debtor, except such as are exempt by law from execution; (2)
exercise all the rights and actions of the debtor, save those personal to him (accion subrogatoria); and
(3) seek rescission of the contracts executed by the debtor in fraud of their rights (accion pauliana).
With respect to an accion pauliana, it is required that the ultimate facts constituting the following
requisites must all be alleged in the complaint, viz.:
1) That the plaintiff asking for rescission, has credit prior to the alienation, although demandable later;
2) That the debtor has made a subsequent contract conveying a patrimonial benefit to a third person;
3) That the creditor has no other legal remedy to satisfy his claim, but would benefit by rescission of the
conveyance to the third person;
A cursory reading of the allegations of ASB’s complaint would show that it failed to allege the ultimate
facts constituting its cause of action and the prerequisites that must be complied before the same may
be instituted. ASB, without availing of the first and second remedies, that is, exhausting the properties of
CTS, Henry H. Furigay and Genilda C. Furigay or their transmissible rights and actions, simply undertook
the third measure and filed an action for annulment of the donation. This cannot be done. The Court
hereby quotes with approval the thorough discourse of the CA on this score