DOMINGO vs.

GARLITOS Both the claim of the Government for

RULE: Rule 86 (Claims Against Estate)
FACTS:
In Domingo vs. Hon. Judge Moscoso, the Court
declared as final and executor the order for the payment
by the estate of inheritance and estate tax, charges and
penalties amounting to P40,058.55 issued by the CFI in
special proceedings No. 14 entitled "In the matter of the
Intestate Estate of the Late Walter Scott Price."
In order to enforce the claims against the estate
the fiscal presented a petition for the execution of the
judgment. The petition was, however, denied by the
court which held that the execution is not justifiable as
the Government is indebted to the estate under
administration in the amount of P262,200.
inheritance taxes and the claim of the intestate for
services rendered have already become overdue and
demandable as well as fully liquidated. Compensation,
therefore, takes place by operation of law, in accordance
with the provisions of Articles 1279 and 1290 of the
Civil Code, and both debts are extinguished to the
concurrent amount.
It is clear, therefore, that the petitioner has no
clear right to execute the judgment for taxes against the
estate of the deceased Walter Scott Price. Furthermore,
the petition for certiorari and mandamus is not the
proper remedy for the petitioner. Appeal is the remedy.
Petition dismissed.

ISSUE:

WON the execution is proper.

RULING:

The petition must be denied for lack of merit.

The ordinary procedure by which to settle claims of
indebtedness against the estate of a deceased person, as
an inheritance tax, is for the claimant to present a claim
before the probate court so that said court may order the
administrator to pay the amount thereof.

The legal basis for such a procedure is the fact

that in the testate or intestate proceedings to settle the
estate of a deceased person, the properties belonging to
the estate are under the jurisdiction of the court and such.
jurisdiction continues until said properties have been
distributed among the heirs entitled thereto. During the
pendency of the proceedings all the estate is in custodia,
legis and the proper procedure is not to allow the sheriff,
in case of a court judgment, to seize the properties but to
ask the court for an order to require the administrator to
pay the amount due from the estate and required to be
paid.

Another ground for denying the petition of the

provincial fiscal is the fact that the court having
jurisdiction of the estate had found that the claim of the
estate against the Government has been recognized and
an amount of P262,200 has already been appropriated
for the purpose by RA 2700.