FACTS:
Angelina Echaus instituted a civil case against C.N. Hodges praying for
the recovery of her share in the profits covering the Ba-Ta subdivision plus
damages. During its pendency and before a decision could be rendered by the
RTC, Hodges died. Upon his death, he was substituted by PCIB as administrator
of his estate. A petition for the settlement of the estate of C. N. Hodges was
instituted in 1962. On March 1963, a notice to creditors was published in
"Yuhum". A judgment was rendered by the trial court in favor of
Echaus and a writ of execution was subsequently issued against PCIB. On
February 20, 1967, Echaus filed her motion for direct payment. Magno averred
that the claim of Echaus was already barred for she filed it more than 4 years
from the publication of notice.
ISSUE: WON the claim presented in the estate proceedings is
already barred by the statute of non-claims.
RULING:
NO. The Rules of Court allows a creditor to file his
claim after the period set by the court in the notice to creditors, provided
the conditions stated in the rules are present. The period prescribed in the
notice to creditors is not exclusive; that money claims against the estate may
be allowed any time before an order of distribution is entered, at the
discretion of the court for cause and upon such terms as are equitable. At the
time of Echaus’ motion to direct payment of the judgment credit was filed, no
order of distribution was issued yet. In this case, the claim was filed in the
probate court on February 1969, while the defendants in the civil case were
still perfecting their appeal therein. The record does not show that the
administrator objected thereto upon the ground that it was filed out of time. The pendency of that case is a good excuse for tardiness in the filing
of the claim.
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