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Ayala Investment V CA Digest

1) Ayala Investments extended a credit line to Philippine Blooming Mills (PBM) which was personally guaranteed by Alfredo Ching, the executive VP of PBM. PBM failed to repay the loan. 2) Ayala Investments sued both PBM and Alfredo Ching. The lower court issued a writ of execution allowing Ayala Investments to seize conjugal properties of Alfredo Ching and his spouse to satisfy the debt. 3) Alfredo Ching and his spouse argued that the loan did not benefit their conjugal partnership and the properties should not be seized. The lower court issued a temporary restraining order to prevent seizure of the properties pending resolution of the case.

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1K views1 page

Ayala Investment V CA Digest

1) Ayala Investments extended a credit line to Philippine Blooming Mills (PBM) which was personally guaranteed by Alfredo Ching, the executive VP of PBM. PBM failed to repay the loan. 2) Ayala Investments sued both PBM and Alfredo Ching. The lower court issued a writ of execution allowing Ayala Investments to seize conjugal properties of Alfredo Ching and his spouse to satisfy the debt. 3) Alfredo Ching and his spouse argued that the loan did not benefit their conjugal partnership and the properties should not be seized. The lower court issued a temporary restraining order to prevent seizure of the properties pending resolution of the case.

Uploaded by

Rez Basila
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Ayala Investments vs. CA G.R. No.

118305 February 12, 1998 Facts: Article 73; Philippine Blooming Mills loan from petitioner Ayala Investment. As an added security for the credit line extended to PBM, respondent Alfredo Ching Exec. VP, executed security agreements and making himself jointly and severally answerable with PBMs indebtedness to Ayala Investments. PBM failed to pay the loan. Thus, Ayala Investments filed a case for sum of money against PBM and Alfredo Ching. The lower court issued a writ of execution of pending appeal. Thereafter, deputy sheriff Magsajo caused issuance and service upon respondents-spouses of a notice of sheriff sale on three of their conjugal properties. Private respondents, spouses Ching, filed a case of injunction against petitioners alleging that petitioners cannot enforce the judgment against conjugal partnership levied on the ground that the subject loan did not redound to the benefit of the said conjugal partnership. Upon application of private respondents, the lower court issued a temporary restraining order to prevent Magsajo from proceeding with the enforcement of the writ of execution and with the sale of the said properties at public auction. Issue: Whether or not loan acquired by PBM from Ayala Investments as guaranteed by Alfredo Ching be redounded to the conjugal partnership of the spouses. Ruling: The husband and the wife can engage in any lawful enterprise or profession. While it is but natural for the husband and the wife to consult each other, the law does not make it a requirement that a spouse has to get the prior consent of the other before entering into any legitimate profession, occupation, business or activity. The exercise by a spouse of a legitimate profession, occupation, business or activity is always considered to redound to the benefit of the family. But an isolated transaction of a spouse such as being guarantor for a third persons debt is not per se considered as redounding to the benefit of the family. Therefore, to hold the absolute community or the conjugal partnership property liable for any loss resulting from such isolated activity, proofs showing a direct benefit to the family must be presented.

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