Special Rules and Proceedings: Rule 84
CHAPTER VII
POWERS, DUTIES, AND ACCOUNTABILITY OF EXECUTORS AND ADMINISTRATORS
RULE 84
GENERAL POWERS AND DUTIES OF EXECUTORS AND ADMINISTRATORS
SEC. 1. Executor or administrator to have access to partnership books and property. How right enforced. –
The executor or administrator of the estate
of a deceased partner
shall at all times have access to,
and may examine and take copies of,
books and papers relating to the partnership business,
and may examine and make invoices
of the property belonging to such partnership;
and the surviving partner or partners, on request,
shall exhibit to him all such books, papers, and property
in their hands or control.
On the written application of such executor or administrator,
the court having jurisdiction of the estate
may order any such surviving partner or partners
to freely permit the exercise of the rights,
and to exhibit the books, papers, and property,
as in this section provided,
and may punish any partner failing to do so for contempt.
Section 1: Access to Partnership Books and Property
The executor/administrator of a deceased partner’s estate has the right to:
Access and examine partnership books and papers.
Take copies of relevant documents.
Examine and make invoices of partnership property.
Surviving partners must allow access to these records and property upon request.
The court, upon written application, may order surviving partners to comply.
Non-compliance by surviving partners may result in contempt of court.
Section 1 refers to the special powers granted to the executor or administrator when the estate involved belongs to a partner.
The provision contemplates that the decedent, during his lifetime, was a member of a partnership.
Partnership — By the contract of partnership two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves.
Due to the nature of a contract of partnership, the rules provide for safeguards to protect that deceased partner's interest in the partnership:
One shall at all times have access to, and may examine and take copies of, books and papers relating to the partnership business.
One may examine and make invoices of the property belonging to the partnership.
Given these powers, the surviving partner or partners have the following corresponding obligations:
Exhibit to the executor or administrator, on the latter's request, all books, papers, and property in the partner's hands.
Freely permit the exercise of rights and exhibit the books, papers, and property, as may be ordered by the court on the written application of the executor or administrator.
The provision also empowers the court to penalize a partner for contempt if he fails to follow the court's orders.
SEC. 2. Executor or administrator to keep buildings in repair. –
An executor or administrator shall maintain in tenantable repair
the houses and other structures and fences
belonging to the estate,
and deliver the same in such repair to the heirs or devisees
when directed so to do by the court.
Section 2: Obligation to Maintain Estate Structures
The executor/administrator must:
Keep estate buildings, fences, and structures in tenable repair.
Tenantable repair — such repair as would make a property suitable for habitation or fit to be lived in.
Deliver them in good condition to the heirs/devisees as directed by the court.
SEC. 3. Executor or administrator to retain whole estate to pay debts, and to administer estate not willed. –
An executor or administrator shall have the right
to the possession and management
of the real as well as the personal estate of the deceased
so long as it is necessary for the payment
of the debts and the expenses of administration.
Section 3: Possession and Management of Estate
The executor/administrator has the right to:
Possess and manage both real and personal property of the deceased.
Retain the entire estate as long as necessary to pay debts and cover administration expenses.
The right of an executor or administrator to the possession and management of the real and personal properties of the deceased is not absolute and can only be exercised "so long as it is necessary for the payment of the debts and expenses of administration."
Executor and Administrator Granted Only Powers of Administration
The court appoints an executor or administrator to facilitate the liquidation and distribution of the decedent's estate.
They are appointed to efficiently manage the estate and prevent its dissipation.
Their powers are circumscribed by the purpose of their appointment: to manage the decedent's estate.
Hence, an executor or administrator may only perform all acts of administration even without a court order.
An executor or administrator cannot, therefore, perform acts of ownership.
✅ Examples of acts of administration include the following:
Maintain in tenantable repair the houses and other structures and fences belonging to the estate and deliver the same to the heirs or devisees when directed by the court.
Possess and manage the decedent's real and personal properties as may be necessary for the payment of debts and expenses of administration.
Is court intervention required before an executor or administrator may enter into a lease agreement over the decedent's estate?
Answering this question, the Supreme Court held that entering into a lease contract is merely an act of administration, for which no court order is required to render it valid.
The same rule also applies if the lease agreement exceeds one year.
San Diego v. Nombre, G.R. No. L-19265, May 29, 1964:
The Supreme Court clarified that a court order is required only if the lease will be registered in the Registry of Property following Article 1647 of the Civil Code.
Article 1647. If a lease is to be recorded in the Registry of Property, the following persons cannot constitute the same without proper authority: the husband with respect to the wife's paraphernal real estate, the father or guardian as to the property of the minor or ward, and the manager without special power.
The Supreme Court further explained that the provision requiring agents to secure a special power of attorney before one may enter into lease contracts exceeding one year does not apply to an executor or administrator.
While an agent and an administrator may have identical duties, the administrator cannot be considered as the court's agent. The administrator represents the court as well as the heirs and creditors of the estate, but an agent is only answerable to one's principal.
Powers and Duties of Executors and Administrators
Powers
Possess and manage the estate of the deceased to pay debts and expenses of administration. (Rule 84, Sec. 2)
Have access to, examine, and take copies of books and papers relating to the partnership business, and examine and make invoices of the property belonging to such partnership. (Rule 84, Sec. 1)
With the approval of the court, to compound or compromise with a debtor of the deceased. (Rule 87, Sec. 4)
Duties
Maintain the estate in tenantable repair.
Deliver the same to the heirs or devisees when directed by the court. (Rule 84, Sec. 3)
Case:
Heirs of Lorilla vs. CA (GR No. 118655, April 21, 2000)
Commercial Credit Corporation (later known as “PENCAPITAL”) filed a complaint against several defendants, including Elias Lorilla—who had acted as surety for corporate debtors.
PENCAPITAL obtained a writ of attachment on the real property of Elias Lorilla, which was duly annotated on the Transfer Certificate of Title.
During the pendency of the case, Elias Lorilla executed a dacion en pago over the attached property in favor of the Joint Resources Management Development Corporation (JRMDC). A new title was issued in JRMDC’s name, but the attachment remained.
RTC-Makati: Rendered judgment favoring PENCAPITAL against the defendants, including Elias Lorilla. Acting on a motion by PENCAPITAL, the Makati Court issued a writ of execution pursuant to the judgment.
The heirs of the deceased Elias Lorilla filed a motion to quash the writ of execution since Elias Lorilla died on January 15, 1988 (one year and three months before the RTC rendered its judgment), the case should have been dismissed with respect to him.
Whether the Court of Appeals erred in denying the annulment of judgment, considering that Elias Lorilla had died before the Makati RTC rendered its decision.
The RTC was unaware of Lorilla’s death as his lawyer failed to notify the court.
Since there was no timely notice of Elias Lorilla’s death provided to the trial court, the court could not be expected to take judicial notice of his death.
The duty of counsel is to notify the court of a party’s death; the failure of Atty. Alfredo Concepcion to do so bound the deceased defendant as far as the trial court was concerned.
The property was no longer part of Lorilla’s estate due to the dacion en pago.
When a defendant dies before a final judgment, the action should be dismissed without prejudice, allowing the plaintiff to revive his claim in the settlement of the deceased’s estate as provided by law.
Section 21, Rule 3 of the Revised Rules of Court clearly provides that, if a defendant dies before final judgment, the action shall be dismissed to be presented in a manner provided by applicable rules, which in this case would have been Sections 5 and 7 of Rule 86.
However, since the property was already removed from Elias Lorilla’s estate through a valid dacion en pago executed in favor of JRMDC, the remedy applicable under Sections 5 and 7 loses pertinence.
The judgment became final and executory due to the absence of an appeal from the RTC decision and the subsequent issuance of a writ of execution.