165. Alpuerto vs.

Pastor Under the interpretation thus placed upon the meaning of the term "privies," it is
G.R. No. 12794| October 14, 1918 | Street, J. clear that Pastor, the purchaser at the public sale under an execution directed against
Juan Llenos, must be considered a privy or successor in interest of the execution
Topic: Admission by Privies; Definition of “Privies” debtor.

Doctrine/s: The word "privies," [as used in article 1225 of the Civil Code], denotes
not only the idea of succession in right of heirship or testamentary legacy, but also
succession by virtue of acts inter vivos, as by assignment, subrogation, or purchase
—in fact any act whereby the successor is substituted in the place of the predecessor
in interest.
Facts:
 Alpuerto filed a case asking the court to declare him as the rightful owner of
three parcels of land originally belonging to Juan Llenos.
o He claims that he acquired it under a contract of sale with pacto de
retro, duly attested and acknowledged before a notary public.
 Pastor, on the other hand, asserts that the sale was simulated or fictitious,
and that the supposed conveyance was effected for the purpose of
defrauding him as creditor of Llenos. (note: contract executed in fraud of
creditors is subject to rescission)
o At the time of the sale between Llenos and Alpuerto (Alpuerto is
actually the son-in-law of Llenos), there was already a judgment
debt in favor of Pastor.
o The 3 parcels of land were levied. They were sold to Pastor.
 Alpuerto alleged that under Art. 1227 of the Civil Code, Pastor was privy to
the sale between him and Llenos, and, was therefore bound by the contract
of sale.
Note: The Court still ruled in favor of Pastor.
The Court concluded that the transaction was made in fraud of creditors, and must
be annulled. The following circumstances were considered familiar badges of fraud,
and their combined effect raises a presumption of fraud: (1) The grantee is the son-
in-law of the grantor; (2) at the time conveyance is made an action is pending against
the grantor to recover several thousand pesos of money; and of the pendency of this
action the grantee has full knowledge; (3) the debtor has no other property out of
which the judgment, if recovered, can be satisfied; (4) the consideration for the
transfer is less than half of the value of the property in question.
Dispositive Portion:
The judgment entered in this cause in the court below must accordingly be reversed;
and judgment will be here entered dismissing the complaint of Eladio Alpuerto and
requiring him to surrender the three parcels of property described in the complaint
to Eustaquio Lopez, as administrator of the estate of Jose Perez Pastor, deceased.

Issue:
WoN Pastor as the the purchaser at the public sale under an execution directed
against Juan Llenos, is considered a privy or successor in interest - Yes

Held:
Article 1225 declares that a private document legally recognized shall have, with
regard to those who sign it and their privies (causahabientes), the same force as a
public instrument.

The word "privies," as used in article 1225 of the Civil Code, denotes not only the idea
of succession in right of heirship or testamentary legacy, but also succession by virtue
of acts inter vivos, as by assignment, subrogation, or purchase—in fact any act
whereby the successor is substituted in the place of the predecessor in interest. The
purchaser at an execution sale is, therefore, a privy of the execution debtor.
(Manresa)