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Gallardo v Morales
FACTS:
In accordance with a compromise agreemen, a decision was rendered therein by the Court of First Instance
of Manila, on February 3, 1956, sentencing defendant Morales to pay to plaintiff Gallardo P7,000.00. In due
course, the corresponding writ of execution was issued and delivered to the Sheriff of Manila, who, on
August 8, 1956, garnished and levied execution on the sum of P7,000.00, out of the P30,000.00 due from
the Capital Insurance & Surety Co., Inc., to said defendant, as beneficiary under a personal accident policy
issued by said company to defendants husband, Luis Morales, who died, on August 26, 1950, by
assassination.
Defendant asked the sheriff to quash and lift said garnishment or levy on execution.
ISSUE:
whether a personal accident insurance which "insures for injuries and/or death as a result of murder or
assault or attempt thereat" is a life insurance, within the purview of Rule 39, section 12, subdivision (k), of
the Rules of Court, exempting from execution.
RULING
Yes.
Indeed, it has been held that statutes of this nature seek to enable the head of the family to secure his
widow and children from becoming a burden upon the community and, accordingly, should merit a liberal
interpretation.
exemption statutes or rules should be liberally construed with a view to giving effect to their beneficent and
humane purpose. To this end, every reasonable doubt as to whether a given property is or is not exempt
should be resolved in favor of exemption
RULING:
1. With the exception of the premium for the first year covering the period from January 14, 1913 to January
14, 1914, all the money used for paying the premiums, i. e., from the second year, or
January 16, 1914, or when the deceased Adolphe Oscar Schuetze married the plaintiff-appellant Rosario
Gelano, until his death on February 2, 1929, is conjugal property inasmuch as it does not appear to have
exclusively belonged to him or to his wife
2. Yes. the proceeds of a life-insurance policy payable to the insured's estate as the beneficiary, if delivered
to the testamentary administrator of the former as part of the assets of said estate under probate
administration, are subject to the inheritance tax according to the law on the matter, if they belong to the
assured exclusively, and it is immaterial that the insured was domiciled in these Islands or outside.
Wherefore, the judgment appealed from is reversed, and the defendant is ordered to return to the plaintiff
the one-half of the tax collected upon the amount of P20,150, being the proceeds of the insurance policy on
the life of the late Adolphe Oscar Schuetze, after deducting the proportional part corresponding to the first
premium
FACTS:
Sometime in the year 1913, the plaintiff Buenaventura Balboa filled with the Bureau of Lands an application
for homestead, No. 10619, under the provisions of Act No. 926, covering a tract of land in Culis, Hermosa,
Bataan. On July 1, 1919, said Act No. 926 was repealed by Act No. 2874.
On August 11, 1924, said Buenaventura Balboa, for and in consideration of the sum of P950, sold said land
to the defendant Cecilio L. Farrales.
On March 6, 1926, the plaintiff commenced the present action for the purpose of having said sale declared
null and void on the ground of lack of consent on his part and fraud on the part of the defendant, and on the
further ground that said sale was contrary to, and in violation of the provisions of section 116 of Act No.
2874.
trial judge rendered a judgment in favor of the plaintiff and against the defendant, ordering the latter to return
to the plaintiff the land
ISSUE:
which of the two Acts 926 and 2874 shall be applied in determining whether the sale in question is
valid or not?
RULING:
Act 926 applies and the sale is valid.
The moment the plaintiff had received a certificate from the Government and had done all that was
necessary under the law to secure his patent, his right had become vested before the patent was issued. His
right had already vested prior to the issuance of the patent, and his rights to the land cannot be affected by a
subsequent law or by a subsequent grant by the Government to any other person.
It follows, therefore that the sale of the land in question by the plaintiff Buenventura Balboa to the defendant
Cecilio L. Farrales does not infringe said prohibition, and consequently said sale is valid and binding, and
should be given full force and effect.
ISSUE:
whether the probate court, after admitting the will to probate but before payment of the estates debts and
obligations, has the authority: (1) to grant an allowance from the funds of the estate for the support of the
testators grandchildren; (2) to order the release of the titles to certain heirs; and (3) to grant possession of
all properties of the estate to the executor of the will.
RULING:
1. No. Be that as it may, grandchildren are not entitled to provisional support from the funds of the
decedents estate. The law clearly limits the allowance to widow and children and does not extend it to the
deceaseds grandchildren, regardless of their minority or incapacity.
2. No. No distribution shall be allowed until the payment of the obligations above-mentioned has been made
or provided for, unless the distributees, or any of them, give a bond, in a sum to be fixed by the court,
conditioned for the payment of said obligations within such time as the court directs.
3. No. The right of an executor or administrator to the possession and management of the real and personal
properties of the deceased is not absolute and can only be exercised so long as it is necessary for the
payment of the debts and expenses of administration, He cannot unilaterally assign to himself and possess
all his parents properties and the fruits thereof without first submitting an inventory and appraisal of all real
and personal properties of the deceased, rendering a true account of his administration, the expenses of
administration, the amount of the obligations and estate tax, all of which are subject to a determination by
the court as to their veracity, propriety and justness.