This case has been cited 4 times or more.
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2015-09-09 |
PERALTA, J. |
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| In Liberty Insurance Corporation v. Court of Appeals,[25] the Court explained that to constitute a ground for attachment in Section 1(d), Rule 57 of the Rules of Court, it must be shown that the debtor in contracting the debt or incurring the obligation intended to defraud the creditor. A debt is fraudulently contracted if at the time of contracting it, the debtor has a preconceived plan or intention not to pay. "The fraud must relate to the execution of the agreement and must have been the reason which induced the other party into giving consent which he would not have otherwise given."[26] | |||||
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2008-02-13 |
NACHURA, J. |
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| (d) In an action against a party who has been guilty of a fraud in contracting the debt or incurring the obligation upon which the action is brought, or in the performance thereof. For a writ of attachment to issue under this rule, the applicant must sufficiently show the factual circumstances of the alleged fraud because fraudulent intent cannot be inferred from the debtor's mere non-payment of the debt or failure to comply with his obligation.[30] The applicant must then be able to demonstrate that the debtor has intended to defraud the creditor.[31] In Liberty Insurance Corporation v. Court of Appeals,[32] we explained as follows:To sustain an attachment on this ground, it must be shown that the debtor in contracting the debt or incurring the obligation intended to defraud the creditor. The fraud must relate to the execution of the agreement and must have been the reason which induced the other party into giving consent which he would not have otherwise given. To constitute a ground for attachment in Section 1 (d), Rule 57 of the Rules of Court, fraud should be committed upon contracting the obligation sued upon. A debt is fraudulently contracted if at the time of contracting it the debtor has a preconceived plan or intention not to pay, as it is in this case. Fraud is a state of mind and need not be proved by direct evidence but may be inferred from the circumstances attendant in each case.[33] In the instant case, petitioner's October 12, 2000 Affidavit[34] is bereft of any factual statement that respondent committed a fraud. The affidavit narrated only the alleged fraudulent transaction between Wincorp and Virata and/or Power Merge, which, by the way, explains why this Court, in G.R. No. 162928, affirmed the writ of attachment issued against the latter. As to the participation of respondent in the said transaction, the affidavit merely states that respondent, an officer and director of Wincorp, connived with the other defendants in the civil case to defraud petitioner of his money placements. No other factual averment or circumstance details how respondent committed a fraud or how he connived with the other defendants to commit a fraud in the transaction sued upon. In other words, petitioner has not shown any specific act or deed to support the allegation that respondent is guilty of fraud. | |||||
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2001-02-23 |
YNARES-SANTIAGO, J. |
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| Petitioner cannot insist that its allegation that private respondents failed to remit the proceeds of the sale of the entrusted goods nor to return the same is sufficient for attachment to issue. We note that petitioner anchors its application upon Section 1(d), Rule 57. This particular provision was adequately explained in Liberty Insurance Corporation v. Court of Appeals,[8] as follows - | |||||
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2000-02-01 |
YNARES-SANTIAGO, J. |
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| In Liberty Insurance Corporation vs. Court of Appeals,[10] this Court, discussing Section 1(d), Rule 57, cautioned as follows -- | |||||