Empire Insurance Company v. Rufino

MELENCIO HERRERA, J.:

This is a Petition for Review on Certiorari of the Order of the Court of First Instance of Rizal (Branch XXI, Pasig) in Civil Case No. 17660, dated October 26, 1973, ordering the dismissal of the case and the cancellation of the notice of lis pendens annotated on Transfer Certificates of Title Nos. 348739, 348742, 348738, 397876, 397877 and 397878 of the Registry of the Province of Rizal. The factual background to this controversy is as follows: On April 20, 1970, Vicente A. Rufino died intestate, survived by herein respondents, namely: his widow, Remedios S. Rufino, and children Mercedes Rufino Roxas, Maria Paz Rufino Laurel, Maria Auxilio Rufino Prieto, Maria Socorro Rufino Carpo, Macario S. Rufino and Carlos S. Rufino. On May 29, 1970, respondents instituted Special Proceedings No. 59-M (5934), entitled "Intestate Estate of the late Vicente A. Rufino,"

before the Court of First Instance of Rizal (Branch XV, Makati). A period of six months, counted from September 18, 1970, date of the first publication of notice to creditors, was fixed within which creditors of the deceased could file their claims against the estate. The six month period expired without any creditor having filed any claim against the estate.

On April 12, 1971, respondents executed a Partition Agreement, to which was attached an Inventory of Properties and Estate Liabilities and/or Obligations, the pertinent provisions of which read: 4. That although no claim against the decedent's estate have been formally filed in these proceedings, the undersigned heirs are fully aware that the decedent left obligations and liabilities which are mentioned in the Inventory, the payment of which is assumed by the decedent's heirs in the manner hereinafter stated. 5.

That pursuant to pertinent provisions of the Civil Code, the decedent's legal heirs have agreed, and do hereby agree, that the entire estate left by the decedent be distributed among, and adjudicated to, his above-named legal heirs on the following bases: x x x x x x x x x (c) All the liabilities or obligations of the decedent, which were incurred during his marriage and redounded to the benefit of the family, shall be borne and paid by the said heirs in proportion to their shares in the conjugal partnership properties. x x x x x x x x x 7. That in accordance with the bases of distribution set forth in paragraph 5 hereof, the properties left by the decedent, and listed in the Inventory, Annex 'A', are hereby adjudicated and distributed as follows: x x x x x x x x x (d) All the outstanding liabilities or obligations of the decedent, except the one assumed by the heirs Macario S. Rufino and Carlos S. Rufino are hereby assumed by all the legal heirs of the decedent in the proportion of their shares in the conjugal partnership properties established in sub-paragraph (b) hereof.

The Inventory of Estate Liabilities and/or Obligations attached to the Partition Agreement listed the following CLAIMS AGAINST THE ESTATE Security Bank & Trust Company,. . .

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P1,563,485.29 Merchants Banking Corporation,. . .

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100,000.00 Investments Marketing Associates, Inc.,. . .

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220,000.00 Sunvar, Incorporated,. . .

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485,880.00 Heirs of M. Rufino, Inc., . . .

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360,000.00 Luzon Theatres, Inc., . . .

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7,500.00 Mrs. Mercedez R. Roxas, . . .

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300,000.00 Dr. Panfilo Castro, . . .

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33,000.00 Lincoln National Life Insurance Co. . . .

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($17,000.00 at P6.20). . .

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. 105,400.00 Philippine Banking Corporation, . .

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. 2,300,000.00 TOTAL CLAIMS AGAINST THE ESTATE, . .

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. APRIL 29,1970, . .

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. P5,475,265.291