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Ligon Vs RTC of Makati, 717 SCRA (2014)

Ligon loaned money to Baladjay secured by a post-dated check that was later dishonored. Ligon discovered the property Baladjay pledged to pay off the loan had already been transferred to a dummy corporation. Ligon filed a case seeking repayment and nullification of the property transfer. A writ of preliminary attachment was issued on the property. In a separate case, another court also issued a writ of attachment on the same property. However, the Makati court ordered cancellation of the title and issuance of a new title free of liens, disregarding Ligon's prior attachment. The Supreme Court ruled the Makati court gravely abused its discretion by ignoring Ligon's attachment lien

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68 views2 pages

Ligon Vs RTC of Makati, 717 SCRA (2014)

Ligon loaned money to Baladjay secured by a post-dated check that was later dishonored. Ligon discovered the property Baladjay pledged to pay off the loan had already been transferred to a dummy corporation. Ligon filed a case seeking repayment and nullification of the property transfer. A writ of preliminary attachment was issued on the property. In a separate case, another court also issued a writ of attachment on the same property. However, the Makati court ordered cancellation of the title and issuance of a new title free of liens, disregarding Ligon's prior attachment. The Supreme Court ruled the Makati court gravely abused its discretion by ignoring Ligon's attachment lien

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Ligon vs RTC of Makati, 717 SCRA (2014)

Facts:
Ligon extended to Baladjay a P3M loan secured by an Allied Bank post-dated check for
the same amount. As further enticement, Baladjay represented that she and her
husband are in the process of selling their property in Muntinlupa and the proceeds
could pay-off the loan.

Unfortunately, the post-dated check was dishonored by Allied Bank. Ligon also
discovered that the property in Muntinlupa was already transferred to Polished Arrow,
allegedly a dummy corporation of the spouses Baladjay. TCT No. 9273 was issued in
the name of Polished Arrow.

In 2002, Ligon filed a complaint before the Quezon City RTC for collection of sum of
money and damages, rescission of contract, and nullification of title with prayer for the
issuance of a writ of preliminary attachment against spouses Baladjay, et.al. asserting
that the transfer of the property was made in fraud. A writ of preliminary attachment was
issued and annotated on the dorsal portion of TCT No.9273.

In a separate civil case involving another person who filed a case against the spouses
before the Makati RTC, a writ of preliminary attachment was also issued against the
subject property and was annotated on the dorsal portion of TCT No.9273. In this case,
the RTC found that the transfer of the property was made in fraud and it ordered the
Register of Deeds to cancel TCT No.9273 and restore it under the name of Baladjay,
free from any liens and encumbrances.

Meanwhile in the case filed by Ligon, the Quezon City RTC rendered a decision
directing the spouses to pay. However, when Ligon sought its execution, she discovered
that the property was already sold by public action to a person named Ting. A TCT was
issued in the name of Ting, free from any liens and encumbrances. Later, Ting sold this
to Techico,who also obtained a TCT in his name.

Ligon questioned the orders of the Makati RTC through a certiorari petition. CA
dismissed the petition.

Issue: Whether or not the Makati RTC gravely abused its discretion in issuing the
assailed orders

Ruling: Attachment is defined as a provisional remedy by which the property of an


adverse party is taken into legal custody, either at the commencement of an action or at
any time thereafter, as a security for the satisfaction of any judgment that may be
recovered by the plaintiff or any proper party. It is a proceeding in rem, and, hence, is
against the particular property, enforceable against the whole world. The attaching
creditor acquires a specific lien on the attached property, and this lien continues until the
debt is paid, or sale is had under execution issued on the judgment, or until the
judgment is satisfied, or the attachment discharged or vacated in some manner
provided by law. A prior registration of an attachment lien creates a preference such that
when an attachment has been duly levied upon a property, a purchaser thereof
subsequent to the attachment takes the property subject to the said attachment. As
provided under PD 1529, said registration operates as a form of constructive notice to
all persons.

The Makati RTC therefore gravely abused its discretion in ordering the issuance of a
new TCT free from any liens and encumbrances, disregarding Ligon’s prior attachment
lien over the subject property.

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