G.R. No. L-4170; January 31, 1952
Intestate of the late AGUSTIN MONTILLA, SR.; PEDRO LITONJUA, a movant-appellant, vs. AGUSTIN B. MONTILLA, JR., administrator-appellee; CLAUDIO MONTILLA, oppositor-appellee.

FACTS

Pedro L. Litonjua obtained a judgment against Claudio Montilla for the payment of P4,000 with legal interest plus costs. A writ of execution was issued, but no property of Claudio Montilla was found to levy upon. Litonjua then filed a motion in the intestate estate proceedings of Agustin Montilla, Sr. (Special Proceeding No. 32), praying that the interest, property, and participation of Claudio Montilla, an heir, in the intestate estate be sold to pay his judgment debt. Claudio Montilla and Agustin Montilla, Jr., the administrator of the estate, opposed the motion. The Court of First Instance of Negros Occidental denied Litonjua’s motion, prompting this appeal.

ISSUE

Whether a creditor of an heir can collect his claim from the heir’s inheritance in an intestate estate before the debts of the estate are paid and the net assets divisible among the heirs are determined.

RULING

No. The appealed order is affirmed. The Supreme Court, applying the doctrine from Ortiga Brothers and Co. vs. Enage and Yap Tico, held that a creditor of an heir is entitled to collect from the property inherited by that heir only after all debts of the deceased’s estate have been paid and the net assets for distribution are known. This is because the debts of the deceased must be paid before the heirs can inherit. Since Pedro Litonjua is not a creditor of the deceased Agustin Montilla, Sr., but only of the heir Claudio Montilla, he cannot intervene to attach or execute upon the heir’s share in the estate prior to the full settlement of the estate’s obligations and the determination of the distributable residue.