Oria v.

Mcmicking
G.R. No. L-7003; January 18, 1912
Moreland, J.

Facts: Gutierrez Hermanos filed an action for recovery of a sum of money against Oria Hermanos & Co.
and herein plaintiff filed an action for recovery also for the same defendant. Before the institution of the
suits, members of the Company dissolved their relations and entered into a liquidation. Tomas Oria y
Balbas acting in behalf of his co-owners entered into a contract with the herein plaintiff for the purpose
of transferring and selling all the property which the Oria Hermanos & Co. owned and among the goods
stated on that instrument was the steamship Serpantes and which the subject of this litigation. When
the Trail Court resolved the action for recovery filed by Gutierrez Hermanos and jugdment was in his
favor, the sheriff demanded to Tomas Oria y Balbas to make payment but the latter said there were no
funds to pay the same. The sheriff then levied on the steamer, took possession of the same and
announced it for public auction. Herein plaintiff claimed that he is the owner of the steamer by virtue of
the selling of all the properties of the said Company.

Issue: Whether or not the sale was fraudulent.

Ruling: Yes. At the time of said sale the value of the assets of Oria Hermanos & Co., as stated by the
partners themselves, was P274,000. The vendee of said sale was a son of Tomas Oria y Balbas and a
nephew of the other two persons heretofore mentioned which said three brothers together constituted
all of the members of said company.The plaintiff is a young man of 25 years old and has no property
before the said selling. The court had laid down the rules in determining whether a there has been fraud
prejudicing creditors: 1) consideration of conveyance is fictitious; 2) transfer was made while the suit
against him (Tomas Oria y Balbas) was pending; 3) sale by insolvent debtor; 4) evidence of insolvency; 5)
transfer of all properties; 6) the sale was made between father and son; 7) and the failure of the vendee
to take exclusive possession of the property. The case at bar shows every one of the badges of fraud.