G.R. No.

L-38052

December 23, 1933

CONCEPCION ABELLA DE DIAZ, Plaintiff-Appellee, vs. ERLANGER & GALINGER, INC.,

ET AL., defendants.
ERLANGER & GALINGER, INC., Appellant.

HULL, J.:
Facts:
Domingo Diaz purchased from Erlanger & Galinger, Inc. (EGI), machinery and
equipment for the construction and installation of an electric light plant. For the balance of
the purchase price, a judgment was obtained by EGI against Domingo Diaz. On an execution
issued to enforce such judgment, the sheriff levied on certain properties.
Accordingly,
Concepcion Diaz (wife) filed this case in the Court of First Instance of Camarines Sur
alleging that the properties which had been levied upon were her paraphernal property and
that she opposed to her husband's going into the electric light business, insisting that the
business was a personal one of her husband and not an enterprise of the conjugal
partnership.
The trial court held that all the property was unlawfully levied upon and made the
preliminary injunction permanent.
Issue: Whether or not, the paraphernal properties of the wife levied upon are exempt from
execution for the debts contracted by the husband.
Ruling:
The Court held that under Article 1412, Civil Code, the husband, as the manager of
the partnership, has the right to embark the partnership in an ordinary commercial
enterprise for gain, and the fact that the wife may not approve of a venture does not make
it a private and personal one of the husband. In turn, regarding the fruits of the paraphernal
property, the Court held that the fruits of the paraphernal property belonged to the conjugal
partnership, thus, they are responsible for the debts of that partnership.
However, regarding the ownership of buildings, the Court held citing Manresa in his
Commentaries that if the building is constructed by the owner of the land with her private
money, the building does not belong to the partnership. Thus, such buildings are not subject
to levy and sale in this case since, the buildings in dispute, were built on the lands of the
appellee with the appellee's own personal money.