CRIMINAL LAW > II. REVISED PENAL CODE – BOOK ONE > H. Civil Liability Ex-Delicto > 5. Preference in Payment

Civil Liability Ex-Delicto refers to the civil liability that arises from the commission of a felony. The Revised Penal Code of the Philippines (RPC) mandates that every person criminally liable is also civilly liable (Article 100). Part of the rules governing civil liability ex-delicto includes the priority or preference in payment, which ensures that the injured party is compensated for damages resulting from a crime.

Below is a comprehensive explanation of this concept:

1. BASIS FOR CIVIL LIABILITY IN THE REVISED PENAL CODE

Under Article 100 of the RPC, "Every person criminally liable for a felony is also civilly liable." This civil liability may include:

Restitution: Restoring the property taken or damaged.
Reparation for Damages: Payment equivalent to the harm caused.
Indemnification for Consequential Damages: Compensation for additional harm or losses.

2. LEGAL BASIS FOR PREFERENCE IN PAYMENT

Preference in payment ensures that victims of crime are prioritized when the offender’s assets are distributed or executed upon. The following provisions establish this rule:

Civil Code Provisions:
- Article 110 of the RPC grants victims a preferential right to payment over other creditors when the liability arises from a crime.
- Article 2177 of the Civil Code clarifies that civil liability ex-delicto is governed primarily by the Revised Penal Code, subject to specific exceptions.
Rules of Court:
- Rule 39, Section 11 of the Rules of Civil Procedure establishes how writs of execution enforce judgments, providing for prioritization of claims.

3. SCOPE AND LIMITATIONS OF PREFERENCE IN PAYMENT

The preference in payment under civil liability ex-delicto has several important aspects:

A. PRIMARY NATURE OF CIVIL LIABILITY

The victim of the crime has a direct claim against the offender’s assets to recover damages. This claim is preferred over obligations to other creditors, especially if:

The property used in the crime is identifiable (specific performance or restitution).
The proceeds of the property taken or the assets of the offender are traceable and available.

B. PREFERENCE OVER OTHER CREDITORS

Victims’ claims are prioritized over:

Ordinary creditors (e.g., those with unsecured loans).
Judgment creditors for civil obligations not arising from a crime.

However, preference is not absolute and is subject to:

Existing Mortgages or Liens: Secured creditors, such as those holding a mortgage or chattel mortgage, have priority over the property subject to their lien.
State Claims: Government-imposed liens for taxes or penalties may also rank higher in specific cases.

4. WHO MAY ASSERT PREFERENCE IN PAYMENT

The preference in payment may be asserted by:

The victim or aggrieved party in a criminal case.
The heirs of the victim, in cases of death or incapacity.

5. ENFORCEMENT OF CIVIL LIABILITY

The enforcement of civil liability with preference in payment follows these procedures:

A. EXECUTION IN CRIMINAL PROCEEDINGS

Under Rule 39 of the Rules of Court, civil liability adjudicated in a criminal case may be enforced by:

Filing a motion for execution of judgment after the finality of the criminal judgment.
Using a writ of execution to seize and sell the offender's assets to satisfy the civil liability.

B. SEPARATE CIVIL ACTION

When the civil action is reserved or independently instituted, the judgment creditor may:

File for execution in the civil case.
Enforce preference over other creditors by demonstrating the ex-delicto nature of the claim.

6. APPLICATION IN SPECIFIC SCENARIOS

A. SOLIDARY LIABILITY

When the offender has accomplices or co-conspirators, the liability is solidary. The victim may enforce preference against any of the offenders, with the paying co-defendant entitled to reimbursement.

B. INSOLVENCY OF THE OFFENDER

If the offender is insolvent:

The victim may assert priority over unsecured creditors.
If the assets are insufficient, proportional satisfaction may occur in cases where multiple victims or creditors are involved.

C. PROPERTIES HELD IN TRUST

If the offender has disposed of or concealed assets, the victim may:

Pursue rescission of fraudulent transfers under the Civil Code.
Attach and levy on the transferred properties.

7. RELEVANT JURISPRUDENCE

Several Supreme Court decisions underscore the application of preference in payment:

People v. Bayotas (G.R. No. 102007, 1994): Affirmed that civil liability survives the death of the accused, prioritizing victims’ claims over unsecured creditors.
Cruz v. Molina (G.R. No. 148699, 2004): Stressed the direct and preferential nature of civil liability ex-delicto.
Jose v. People (G.R. No. 167853, 2011): Clarified that preference applies to specific claims related to restitution, reparation, and indemnity.

8. EXCEPTIONS TO PREFERENCE

Preference in payment does not apply in the following cases:

When the civil liability is extinguished due to:
- Full payment by the accused.
- Death of the accused before final judgment (subject to limitations).
Claims covered by secured debts with prior liens or mortgages.
When the victim fails to assert their claim within prescribed periods.

CONCLUSION

The concept of preference in payment ensures that victims of crimes are not left uncompensated, underscoring the principle of justice inherent in criminal law. The rules governing this preference, while generally favoring victims, balance competing claims to the offender’s assets through provisions that respect secured creditors, existing liens, and state-imposed obligations. Understanding these principles is critical for both legal practitioners and those seeking redress for harm caused by criminal acts.