Ong vs. CA (Digest)

Ong vs. Court of Appeals G.R. No. L-63025, November 29, 1991; 204 SCRA 297 PONENTE: Paras, J. FACTS:  Teodora Ong is the wife of Ramon Ong, petitioner. She conducted her own logging business. In furtherance of said business, she loaned 2,827.83 from Francisco Boix, private respondent. Due to mismanagement, she defaulted on her obligation. Boix filed a complaint, based on the promissory notes issued by Teodora. Judgment was rendered in favor of Boix, he then moved to execute the judgment.  The Sheriff of Camarines Norte (private co-respondent) levied and attached a parcel of land. An auction sale was held and Boix was adjudged the highest bidder and a writ of possession was issued.  Ramon filed a motion with the CFI of Manila to quash the writ of possession and was denied. He then brought the case to the CA to annul the auction sale, alleging that the property is conjugal and thus could not be held liable for personal debts contracted by the wife.  The CA found that the subject property is paraphernal property, it was declared in the name of Teodora Ong, while the house erected thereon was declared in the name of Ramon Ong and Teodora Ong. ISSUE: Whether the parcel of land is exclusive property of the wife or part of the conjugal partnership. HELD: Yes, it is exclusive property. The mere use of the husband’s surname in the tax declaration is not sufficient proof that the said property was acquired during the marriage and therefore conjugal. It is undisputed that the parcel of land was declared solely in the wife’s name but the house built thereon was declared in the name of the spouses. When the property is registered in the name of the spouse only and there is no showing as to when the property was acquired by said spouse, this is an indication that the property belongs exclusively to said spouse. The party who invokes the presumption that all property of the marriage belongs to the conjugal partnership must first prove that the property was acquired during the marriage. Under Art. 117 of the Civil Code, the wife is entitled to engage in business although the husband may object. The wife’s exclusive (paraphernal) properties, as well as those of their conjugal partnership, shall be liable for obligations incurred by the wife in the course of her business.