G.R. No. 34696; March 8, 1932
ANTONIO D. MAURI, plaintiff-appellant, vs. SAN AGUSTIN PLANTATION CO., INC., ET AL., defendants-appellees.

FACTS

Plaintiff Antonio D. Mauri obtained a final judgment against San Agustin Plantation Co., Inc. on May 2, 1925. Its execution was suspended due to an involuntary insolvency petition against the debtor. Later, defendants Philippine Trust Co. and Mindoro Sugar Co. obtained a judgment against the same debtor on July 27, 1928. After the insolvency petition was dismissed, Mauri secured a writ of execution but found no property to levy upon. The defendants later caused an execution sale on November 4, 1929, of property they claimed belonged to Mindoro Sugar Co., which was bought by the Roman Catholic Archbishop of Manila. Mauri filed this action to set aside the defendants’ judgment and the execution sale, claiming priority for his earlier judgment.

ISSUE

Whether the plaintiff-appellant, as an earlier judgment creditor without a specific lien, has a superior right to the property sold at the execution sale or is entitled to have the defendants’ judgment and the sale set aside.

RULING

No. The Supreme Court affirmed the trial court’s judgment. The plaintiff had no special lien on the property sold. His attempt to levy execution did not create a lien or right of preference over the judgment debtor’s property. The property sold at the execution sale rightfully belonged to Mindoro Sugar Co., as it was purchased with funds advanced by that company. The plaintiff had knowledge of the defendants’ case and the insolvency proceedings but did not timely intervene or assert a claim to specific property. The action, viewed as one for restriction, was filed too late and was not proper under the circumstances.

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