Edward J. Nell Company vs. Pacific Farms, Inc.122 Phil. 825

EDWARD J. NELL COMPANY, petitioner, vs. PACIFIC FARMS, INC., respondent.

G.R. No. L-20850 | 1965-11-29

Business Enterprise Transfer Rule (Nell doctrine) - assumption of liabilities

Business-enterprise transfer doctrine, transferee is liable for the debts and liabilities of his transferor arising from the business enterprise conveyed
Corporation Law; Nell Doctrine (the transfer of all the assets of a corporation to another shall not render the latter liable to the liabilities of the transferor)

D E C I S I O N

CONCEPCION, J.:

Appeal by certiorari, taken by Edward J. Nell Co. - hereinafter referred to as appellant - from a decision of the Court of Appeals.

On October 9, 1958, appellant secured in Civil Case No. 58579 of the Municipal Court of Manila against Insular Farms, Inc. - hereinafter referred to as Insular Farms - a judgment for the sum of P1,853.80 - representing the unpaid balance of the price of a pump sold by appellant to Insular Farms - with interest on said sum, plus P125.00 as attorney's fees and P84.00 as costs. A writ of execution, issued after the judgment had become final, was, on August 14, 1959,...