Pideli to Litton

8/14/2019 Pideli to Litton

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ERNESTO PIDELI vs.PEOPLE OF THE PHILIPPINES

G.R. No. 163437, February 13, 2008

THEFT

Facts:

Placido and Wilson entered into a erbal !artners"i! a#ree$ent

to subcontract a ri!%ra!!in# and s!ill&ay !ro'ect. Petitioner Pideli, brot"er

to Wilson and nei#"bor and (riend to Placido, o((ered t"e duo t"e use o(

"is credit line &it" t"e )t. *rail Far$ +u!!ly and ard&are -)*F+ in /a*rinidad, en#uet. Wit" t"e said arran#e$ent, Wilson and Placido, &it"

t"e assistance o( !etitioner, &ere able to secure an assort$ent o(

construction $aterials (or t"e ri!%ra! and s!ill&ay contract. (ter t"e

co$!letion o( t"e !ro'ect, Placido, Wilson and !etitioner co$!uted t"eir

e!enses and arried at a net inco$e o( P130,000.00. Placido, as !artner,

clai$ed one%"al( -12 or P6,000.00 o( t"e net a$ount as "is s"are in

t"e !ro'ect. Petitioner, "o&eer, adised t"e t&o to (irst settle t"eir

accountabilities (or t"e construction $aterials ta5en (ro$ t"e "ard&are

store. Placido and Wilson did as told and entrusted t"e (ull a$ount to!etitioner, &it" e!ress instructions to !ay )*F+ and delier t"e

re$ainin# balance to t"e$. *"e (ollo&in# day Placido atte$!ted but (ailed

to contact !etitioner. e "ad "o!ed to obtain "is s"are o( t"e !artners"i!

inco$e. Placido #ot "old o( !etitioner t"e net $ornin#. ne!ectedly,

!etitioner in(or$ed Placido t"at not"in# &as le(t o( t"e !roceeds a(ter

!ayin# o(( t"e su!!lier.es!ite re!eated de$ands, !etitioner re(used to

#ie Placido "is s"are in t"e net inco$e o( t"e contract.

lar$ed oer t"e sudden turn o( eents, Placido lod#ed a co$!laint (or

t"e(t a#ainst !etitioner rnesto Pideli. *"e trial court (ound !etitioner

#uilty o( t"e(t and u!on a!!eal, t"e 9 a((ir$ed t"e coniction.

Issue:



id t"e trial court erred in (indin# !etitioner #uilty o( t"e(t:

Ruling:

No. ccordin#ly, t"e ele$ents o( t"e(t are as (ollo&s; *"at t"ere

be ta5in# o( !ersonal !ro!erty< *"at said !ro!erty belon#s to anot"er<

*"at t"e ta5in# be done &it" intent to #ain< *"at t"e ta5in# be done

&it"out t"e consent o( t"e o&ner< and *"at t"e ta5in# be acco$!lis"ed

&it"out t"e use o( iolence a#ainst or inti$idation o( !ersons or (orce

u!on t"in#s. *"ere is, "ere, a con(luence o( t"e ele$ents o( t"e(t.

Petitioner receied t"e (inal !ay$ent due t"e !artners Placido and Wilson

under t"e !retet o( !ayin# o(( t"eir obli#ation &it" t"e )*F+. nder t"eter$s o( t"eir a#ree$ent, !etitioner &as to account (or t"e re$ainin#

balance o( t"e said (unds and #ie eac" o( t"e !artners t"eir res!ectie

s"ares. e, "o&eer, (ailed to #ie !riate co$!lainant Placido &"at &as

due "i$ under t"e construction contract.

lt"ou#" t"ere is $isa!!ro!riation o( (unds "ere, !etitioner &as

correctly (ound #uilty o( t"e(t. s early as U.S. v. De Vera, t"e 9ourt "asconsistently ruled t"at not all $isa!!ro!riation is estafa.9"ie( =ustice

Ra$on 9. >uino, in "is co$$entary on t"e Reised Penal 9ode,

succinctly o!ined; *"e !rinci!al distinction bet&een t"e t&o cri$es is t"at

in t"e(t t"e t"in# is ta5en &"ile in estafa t"e accused receies t"e

!ro!erty and conerts it to "is o&n use or bene(it. o&eer, t"ere $ay be

t"e(t een i( t"e accused "as !ossession o( t"e !ro!erty. ?( "e &as

entrusted only &it" t"e $aterial or !"ysical -natural or de

facto !ossession o( t"e t"in#, "is $isa!!ro!riation o( t"e sa$e constitutes

t"e(t, but i( "e "as t"e 'uridical !ossession o( t"e t"in#, "is conersion o(

t"e sa$e constitutes e$be@@le$ent or estafa. *"e record bears out t"at

!riate co$!lainant ori#inally clai$ed P6,000.00 as "is s"are in t"e

!artners"i!. o&eer, "e ad$itted receiin# t"e total a$ount o(

P1,00.00, on t&o se!arate occasions, (ro$ Wilson Pideli. Aerily, only

P4B,00.00 is due !riate co$!lainant.

ence, t"e i$!osable !enalty is t"e $ai$u$ !eriod o( prision



mayor $ini$u$ and $ediu$ !rescribed in t"e aboe>uoted (irst

!ara#ra!" o( rticle 30B. *"at !eriod ran#es (ro$ si -6 years and one

-1 day to ten -10 years, !lus one -1 year (or eery additional ten

t"ousand !esos in ecess o( P22,000.00, &"ic" in t"is case is t&o -2

years (or t"e ecess a$ount o( P27,00.00. !!lyin# t"e ?ndeter$inate+entence /a&, t"e $ai$u$ ter$ could be t&ele -12 years &"ile t"e

$ini$u$ ter$ &ould (all under t"e net lo&er !enalty o( prision

correccional in its $ediu$ and $ai$u$ !eriods -2 years, 4 $ont"s and

1 day to 6 years, to be i$!osed in any o( its !eriods.

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G.R.No. L-33580 February 6, 1931 MAXIMILIANOSANCHO, Plaintiff-Appellant , !. S"#"RIANO

LI$ARRAGA, DefendantAppellee.FAC%S&

The plaintiff brought an action for the rescission of a partnership contractbetween himself and the defendant, entered into in1920 and thereimbursement of his investment with interest. The defendant deniesgenerally and specifically all the allegations of the complaint and askedfor the dissolution of the partnership, and the payment to him as itsmanager and administrator monthly at the time of the partnershipoperation until the final dissolution with interest.

After trial, the lower court found that the defendant had not contributedall the capital he had bound himself to invest hence it demanded that thedefendant liuidate the partnership, declared it dissolved on account ofthe e!piration of the period for which it was constituted, and ordered thedefendant, as managing partner, to proceed without delay to liuidate it,submitting to the court the result of the liuidation together with theaccounts and vouchers within the period of thirty days from receipt ofnotice of said "udgment.

The plaintiff appealed from said decision praying for the rescission of thepartnership contract between him and the defendant in accordance withArt. 112#of the $ivil $ode of the %hilippines.

ISS'"&

&'( the plaintiff)appellant acuired the right to demand rescission of thepartnership contract according to article 112# of the $ivil $ode.

H"L(&

The *$ ruled that owing to the defendant+s failure to pay to thepartnership the whole amount which he bound himself to pay, he becameindebted to the partnership for the remainder, with interest and anydamages occasioned thereby, but the plaintiff did not thereby acuire theright to demand rescission of the partnership contract according to article112# of the $ode.



Article 112# cannot be applied to the case in uestion, because it refers tothe resolution of obligations in general, whereas articles 1-1 and 1-2specifically refer to the contract of partnership in particular. And it is awell known principle that special provisions prevail over generalprovisions.

ence, *$ dismissed the appeal left the decision appealed from in fullforce.

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EVANGELISTA & CO v. ABAD SANTOS (G.R. No. 31684; June 28, 193!

"ACTS# On O$%oe' 9, 194 ) $o*+)'%ne'-+ /) 0o'e une' %-e n)e o0Ev)ne5%) & Co. On June , 19 %-e A'%$5e o0 Co*+)'%ne'-+ /) )ene )%o n$5ue -e'en 'e+onen%, E%'e55) Abad Santos, ) nu%')5 +)'%ne', /%--e'en +e%%one' ono C. Ev)ne5%), J'., Leon)'o A%en7) Abad Santos )n

Con$-%) . N)v)''o, %-e o'n)5 $)+%)5% +)'%ne', 'e)nn n %-)% $)+)$%, /%-) $on%'u%on o0 1,:: e)$-. T-e )ene A'%$5e +'ove, n%e' )5), %-)% %-e$on%'u%on o0 E%'e55) Abad Santos $on% o0 -e' nu%' en )n nu%')5+)'%ne', )n %-)% %-e +'o0% )n 5oe -)55 e ve )n %'u%e )on %-e+)'%ne' ... n %-e +'o+o'%on o0 : 0o' %-e 0'% %-'ee +)'%ne', ono C.Ev)ne5%), J'., Con$-%) . N)v)''o )n Leon)'o A%en7) Abad Santos %o eve )on %-e e<u)55; )n 3: 0o' %-e 0ou'%- +)'%ne' E%'e55)Abad Santos.On e$ee' 1, 1963 -e'en 'e+onen% 05e u% ))n% %-e %-'ee o%-e' +)'%ne'n %-e Cou'% o0 "'% In%)n$e o0 =)n5), )55en %-)% %-e +)'%ne'-+, /-$- /) )5o)e ) +)'%*e0en)n%, -) een +)n ven %o %-e +)'%ne' e>$e+% %o -e';

)n %-)% no%/%-%)nn -e' e)n %-e e0en)n% -) 'e0ue )n $on%nue %o'e0ue )n 5e% -e' e>)ne %-e +)'%ne'-+ oo? o' %o ve -e' n0o')%on 'e)'n%-e +)'%ne'-+ )00)' %o +) -e' )n -)'e n %-e ven e$5)'e %-e+)'%ne'-+. S-e %-e'e0o'e +')e %-)% %-e e0en)n% e o'e'e %o 'ene')$$oun%n %o -e' o0 %-e +)'%ne'-+ une )n %o +) -e' $o''e+onn -)'e n%-e +)'%ne'-+ +'o0% )0%e' u$- )$$oun%n, +5u )%%o'ne@ 0ee )n $o%.

ISSE# B-e%-e' o' no% Abad Santos )n nu%')5 +)'%ne' )n en%%5e %o %-e-)'e o0 %-e +)'%ne'-+

DEL# e. I% no% +u%e %-)% %-e +'ovon ))n% %-e nu%')5 +)'%ne'en)n n une 0o' -e50 ee? %o +'even% )n $on05$% o0 n%e'e% e%/een %-enu%')5 +)'%ne' )n %-e +)'%ne'-+, )n %o nu'e 0)%-0u5 $o+5)n$e )+)'%ne' /%- %- +'e%)%on. T-)% )++e55ee -) 0)%-0u55 $o+5e /%- -e' +'e%)%on/%- 'e+e$% %o )++e55)n% $5e)'5 -o/n %-e 0)$% %-)% % /) on5 )0%e' 05n o0%-e $o+5)n% n %- $)e )n %-e )n/e' %-e'e%o )++e55)n% e>e'$e %-e' '-% o0e>$5uon une' %-e $o)5 )'% Fu% en%one )55en n %-e' Su++5een%)5 An/e', ue<uen% %o %-e 05n o0 e0en)n%@ )n/e' %o %-e $o+5)n%, e0en)n%'e)$-e )n )'eeen% /-e'e %-e -e'en +5)n%00 een e>$5ue 0'o, )ne+'ve o0, -e' )55ee -)'e, n%e'e% o' +)'%$+)%on, ) )n )55ee nu%')5

+)'%ne', n %-e e0en)n% +)'%ne'-+ )no' n % ne% +'o0% o' n$oe, on %-e'oun +5)n%00 -) neve' $on%'u%e -e' nu%' %o %-e +)'%ne'-+, n%e) -e -)



een )n %55 ) Fue o0 %-e C% Cou'% (0o'e'5 =un$+)5 Cou'%! o0 %-e C% o0=)n5), evo%n -e' %e %o +e'0o')n$e o0 -e' u%e ) u$- Fue )n enFon%-e +'v5ee )n eo5uen% )++e'%)nn %o %-e ) o00$e, )e 0'o %e)$-n n5)/ $-oo5 n =)n5), /%-ou% %-e e>+'e $onen% o0 %-e -e'en e0en)n%@. D)vn)5/) ?no/ ) ) )++e55ee ) ) C% Fue even e0o'e -e Fone )++e55)n%$o+)n ) )n nu%')5 +)'%ne', /- % %)?e )++e55)n% )n e)'n e0o'ee>$5un -e' 0'o ) $o+)n ) )0o'e<uo%e )55e)%on An -o/ $)n %-e'e$on$5e u$- e>$5uve /%- %-e' )n %-eo' %-)% )++e55ee -) neve' een u$- )+)'%ne' e$)ue T-e 'e)5 )'eeen% /) %o ')n% %-e )++e55ee ) -)'e o0 3: o0%-e ne% +'o0% /-$- %-e )++e55)n% +)'%ne'-+ ) 'e)57e 0'o June , 19, un%5%-e o'%)e o0 3:,:::.:: o%)ne 0'o %-e Re-)5%)%on "n)n$e Co'+o')5 -)55-)ve een 0u55 +).



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Sy et. al., vs Court of Appeals

Chester Cabalza recommends his visitors to please read the original & full text of thecase cited. Xie xie!

Sy et. al. vs Court of AppealsG..R. No. 14229!ebruary 2"# 2$$ !a%ts&

T- +e%%on 0o' 'eve/ ee? %-e 'eve')5 o0 %-e e$on o0 %-e Cou'% o0 A++e)5)%e "e'u)' 29, 2:::.

Soe%e n 198, +'v)%e 'e+onen% J)e S)-o% %)'%e /o'?n ) ) %'u$? -e5+e'0o' +e%%one'H 0)5*o/ne %'u$?n une n)e V$en%e S T'u$?n. In 196,-e e$)e ) %'u$? 've' o0 %-e )e 0)5 une, 'en)e T. )u5no T'u$?nSe'v$e, 5)%e' 6H T'u$?n Co'+o')%on n 198, )n %-e'e)0%e' ?no/n ) STT'u$?n Co'+o')%on n$e 1994. T-'ou-ou% )55 %-ee $-)ne n n)e )n 0o' 36e)', +'v)%e 'e+onen% $on%nuou5 e've %-e %'u$?n une o0 +e%%one'.

In A+'5 1994, S)-o% /) )5'e) 9 e)' o5. De -) een n$u''n )en$e )

-e /) u00e'n 0'o v)'ou )5en%. )'%$u5)'5 $)un - +)n /) - 5e0%%--, /-$- 'e)%5 )00e$%e %-e +e'0o')n$e o0 - %)? ) ) 've'. De n<u'e)ou% - e$)5 )n 'e%'een% ene0% /%- %-e So$)5 Se$u'% S%e (SSS! on A+'5 2, 1994, u% $ove'e %-)% - +'eu +)en% -) no% een 'e%%e - e+5oe'.

S)-o% -) 05e ) /ee?*5on 5e)ve oe%e n =) 1994. u% 0oun -e50 n )5e). De /) 0)$n )5 0 -e 'e0ue %o /o'?, u% -e $ou5 no% 'e%'e on+enon e$)ue +e%%one' neve' +) - $o''e$% SSS +'eu.

T-e NLRC NCR 'u5e %-)% %-e'e /) no 55e)5 )5 n S)-o%H $)e. 'v)%e'e+onen% -) 0)5e %o 'e+o'% %o /o'?. On )++e)5, %-e N)%on)5 L)o' Re5)%onCoon o0e %-e Fuen% o0 %-e L)o' A'%e'. e%%one' ))5e %-ee$on o0 %-e NLRC e0o'e %-e Cou'% o0 A++e)5.

'ssues

()! B-e%-e' o' no% )n e+5oe'*e+5oee 'e5)%on-+ e>%e e%/een +e%%one')n 'e+onen% S)-o%

(! B-e%-e' o' no% %-e'e /) v)5 )5



($! B-e%-e' o' no% 'e+onen% S)-o% en%%5e %o e+)')%on +)

(eld&

u% e)5n %-e L)o' A'%e' ) 'eve')5 on %- $o'e %-e NLRC, $on$u''e n %-eCou'% o0 A++e)5, -e5 %-)%#

B-5e % /) ve' ovou %-)% $o+5)n)n% no% -)ve )n n%en%on %o 'e+o'% )$?%o /o'? ue %o - 55ne /-$- n$)+)$%)%e - %o +e'0o' - Fo, u$- n%en%on$)nno% e $on%'ue %o e ))nonen%. In%e), %-e )e -ou5 -)ve een$one'e ) one o0 %-oe 0)55n une' %-e Fu% $)ue o0 %e'n)%n )ne+5oen%. T-e n%en$e o0 'e+onen% n )?n $o+5)n)n% /o'? no%$-)ne %-e $en)'o.

I% /o'%- %o no%e %-)% 'e+onen% en)e n %-e %'u$?n une /-e'e+-$)5 %'en%- o0 u%o% 'e<u'een% ($!. Co+5)n)n% %)'%e /o'?n /%-'e+onen% ) %'u$? -e5+e' )% )e %/en%*%-'ee (23!, %-en ) %'u$? 've' n$e 196.Co+5)n)n% /) )5'e) 00%*nne (9! /-en %-e $o+5)n% /) 05e )n u00e'n0'o v)'ou 55ne %'e'e - /o'? )n )e.

On %-e 5)% ue, ) -e5 %-e Cou'% o0 A++e)5, 'e+onen% J)e S)-o% en%%5e %o e+)')%on +). T-e 5)/ $5e)' on %-e )%%e'. An e+5oee /-o

%e'n)%e e$)ue o0 e)e en%%5e %o e+)')%on +) e<uv)5en% %o )% 5e)%one on%- )5)' o' %o one*-)50 on%- )5)' 0o' eve' e)' o0 e'v$e, /-$-eve' 'e)%e' >>>. "o55o/n %-e 0o'u5) e% n A'%. 284 o0 %-e L)o' Coe, - e+)')%on+) /) $o+u%e %-e )++e55)%e $ou'% )% 2,:8: %e 36 e)' (198 %o 1994! o'4,88:. Be )'ee /%- %-e $o+u%)%on, )0%e' no%n %-)% - 5)% on%-5 )5)'/) 4,16:.:: o %-)% one*-)50 %-e'eo0 2,:8:.::. "nn no 'eve'5e e''o' no'')ve )ue o0 $'e%on on %-e +)'% o0 )++e55)%e $ou'%, /e )'e $on%')ne %ou%)n % e$on. To )vo 0u'%-e' e5) n %-e +)en% ue %-e e+)')%e /o'?e',/-oe $5) /) 05e /) )$? n 1994, %- e$on e)%e5 e>e$u%o'.O%-e'/e, > +e'$en% (6! n%e'e% +e' )nnu -ou5 e $-)'e %-e'eon, 0o' )ne5), +u'u)n% %o +'ovon o0 %-e Cv5 Coe.

BDERE"ORE, %-e +e%%on ENIE )n %-e e$on o0 %-e Cou'% o0 A++e)5)%e "e'u)' 29, 2::: A""IR=E. e%%one' u% +) +'v)%e 'e+onen%J)e S)-o% - e+)')%on +) 0o' 36 e)' o0 e'v$e )% %-e ')%e o0 one*-)50on%-5 +) 0o' eve' e)' o0 e'v$e, )oun%n %o 4,88:.::, /%- n%e'e% o0 >+e' $en%u (6! +e' )nnu 0'o 0n)5% o0 %- e$on un%5 0u55 +).

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S, e% )5 v. CA, G.R. No. 14229, "e'u)' 2, 2::3



"ACTS * In A+'5 1994, S)-o% /) )5'e) 9 e)' o5. De -) een n$u''n)en$e ) -e /) u00e'n 0'o v)'ou )5en%. )'%$u5)'5 $)un - +)n/) - 5e0% %--, /-$- 'e)%5 )00e$%e %-e +e'0o')n$e o0 - %)? ) ) 've'. Den<u'e )ou% - e$)5 )n 'e%'een% ene0% /%- %-e So$)5 Se$u'% S%e

(SSS! on A+'5 2, 1994, u% $ove'e %-)% - +'eu +)en% -) no% een'e%%e - e+5oe'. * S)-o% -) 05e ) /ee?*5on 5e)ve oe%e n =)1994. A% %-e en o0 - /ee?*5on )en$e, S)-o% )++5e 0o' e>%enon o0 - 5e)ve0o' %-e /-o5e on%- o0 June, 1994. I% /) )% %- %e /-en +e%%one' )55ee5%-'e)%ene %o %e'n)%e - e+5oen% -ou5 -e 'e0ue %o o )$? %o /o'?. * A%%- +on%, S)-o% 0oun -e50 n ) 5e). De /) 0)$n )5 0 -e 'e0ue %o/o'?, u% -e $ou5 no% 'e%'e on +enon e$)ue +e%%one' neve' +) - $o''e$%SSS +'eu. T-e 0)$% 'e)ne -e $ou5 no 5one' /o'? ) - 5e0% %-- -u'%)on)5. e%%one' ene - 5e). T-e $)''e ou% %-e' %-'e)% )ne - 0'o /o'?, e00e$%ve June 3:, 1994

DEL * A %- Cou'% %)%e n T'+5e E-% n%e')%e Se'v$e, In$. v. NLRC,31K%-e 'e<u'een% 0o' ) e$)5 $e'%0$)%e une' A'%$5e 284 o0 %-e L)o' Coe $)nno%e +ene /%-; o%-e'/e, % /ou5 )n$%on %-e un5)%e')5 )n )'%')'e%e'n)%on %-e e+5oe' o0 %-e ')v% o' e>%en% o0 %-e e+5oeeH 55ne )n%-u e0e)% %-e +u5$ +o5$ n %-e +'o%e$%on o0 5)o'. * In %-e $)e )% )', %-ee+5oe' $5e)'5 no% $o+5 /%- %-e e$)5 $e'%0$)%e 'e<u'een% e0o'eS)-o%H )5 /) e00e$%e.

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*'($/A v. 3/(A 4illareal, 5. 619798 5osue *'($/A, $armen 3/(A and 3ibrado Avelino were partners inthe business called $entro scolar de *e:oritas. 3/(A was itsmanaging partner

$laiming fraudulent administration of the partnership, *'($/A filedwith the $;< =anila an amended complaint against 3/(A in her ownname and as administratri! of the estate of the deceased partner Avelino,in which he prayed that 3/(A be sentenced to pay him the sum of%>00,#72 as damages and costs 3/(A interposed a demurrer based on the following grounds? 618 nocause of action@ and 628 that the complaint is ambiguous, unintelligibleand vague $;< sustained 3/(As demurrer and ordered *'($/A to amend hisamended complaint. *'($/A refused, thus, 3/(A filed a motion todismiss which the $;< granted. ;rom this order of dismissal, *'($/Afiled this appeal

ISS'"& &'( *'($/As amended complaint states a cause of action

H"L(& (', it does not state a cause of action. The order of dismissal isA;;<B=. RA%IO&



;or the purpose of ad"udicating *'($/As claim to damages which healleges to have suffered as a partner by reason of the supposedfraudulent management of the partnership by 3/(A, it is firstnecessary that a liuidation of the business thereof be made so that theprofits and losses may be known and the liabilities of 3/(A as well as

the damages which each partner may have suffered, may be determined <t is not alleged in the complaint that such a liuidation has beeneffected nor is it prayed that it be made. $onseuently, there is no reasonor cause for *'($/A to institute the action for damages which he claimsfrom the managing partner 3/(A

For a )ar*+er *o be abe *o a/ ro/ a+o*er )ar*+er 2o

/a+ae! *e e+era o-)ar*+er!), 4a/ae! aee4y !uere4

by / by rea!o+ o *e rau4ue+* a4/+!*ra*o+ o *e a**er, a

)reou! u4a*o+ o !a4 )ar*+er!) ! +ee!!ary

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NG O=)'%ne7 v.

On) *on) Co ")$%# =)'%ne7 e5ve'e 1,:: %o On) *on) Co )n On) L) %onve% n ) %o'e T-e )'ee %-)% %-e +'o0% )n 5oe /ou5 e e<u)55 -)'e )55 o0 %-e =)'%ne7 /) e)nn 0o' %-e %/o On %o 'ene' )n )$$oun%no' %o 'e0un - %-e 1,:: On) *on) Co )55ee %-)% On) L), no/ e$e)e,/) %-e one /-o )n)e %-e une, )n %-e $)+%) o0 1,:: 'eu5%e n ) 5oo %-)% -e -ou5 no% e )e 5)5e Iue# BON On) *on) Co 5)5e ES Fon%B-)% %-e e>%en% o0 - 5)5%

De5# T-e 2 +)'%ne' (On! /e'e %-e )n%')%o')n)e' )n )'e o5e %o'ene' )$$oun%n. Sn$e ne%-e' o0 %-e 'ene'e )n )$$oun%, no' +'ove %-e)55ee 5oe, %-e )'e o5e %o 'e%u'n %-e $)+%)5 %o =)'%ne7. B-e'e %/o +)'%ne''e$eve 0'o )no%-e' ) u o0 one 0o' %-e e%)5-en% o0 ) une, )n )'ee%o -)'e /%- %-e 5)%%e' %-e +'o0% o' 5oe %-)% ) 'eu5% %-e'e0'o, %-e ) %/o+e'on, ) %-e )++)'en% )n%')%o' o0 %-e +)'%ne'-+, )$%e ) )en% 0o' %-e$)+%)5% +)'%ne', )n v'%ue %-e'eo0 )'e oun %o 0u5055 %-e $on%')$% /-$- +5e

%-e )n)een% o0 %-e une. A'%$5e 196 no% )++5$)5e e$)ue no o%-e'one %-)n %-)% $on%'u%e ) $)+%)5 /) nvo5ve. T-e 5)5% o0 %-e +)'%ne' Fon%. On)*on) Co -)55 on5 +) : %o =)'%ne7

)))))))))))))))))))))))))))))))))

MAR%IN"$ #. ONG ONG CO.17 HIL 0

W"ere t&o !artners receie (ro$ anot"er a su$ o( $oney (or t"e establis"$ent o( a business, and a#reeto s"are &it" t"e latter t"e !ro(its or losses t"at $ay

result t"ere(ro$, t"e said t&o !ersons, as t"e a!!arentad$inistrators o( t"e !artners"i!, acted as a#ents (or



t"e ca!italist !artner, and by irtue t"ereo( are boundto (ul(ill t"e contract &"ic" i$!lies t"e $ana#e$ent o( t"e business.

%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

JAN AG+ST'N, ET AL., +5)n%00; VICTOR EL ROSARIO,)++e55)n%, vs. BARTO,O- 'NOCNC'O, e0en)n%*)++e55ee.

")$%# T-e +)'%e $onu$%n ) +)'%ne'-+ ) nu%')5 +)'%ne' /%-ou% $)+%)5,$on%'u%e 0'o % +'o0% %-e u o0 8:.28 ) ) 0un %o/)' %-e $on%'u$%on o0 )C)$o 0o' ue n %-e' une, %o /-$- %-e )e 3, ::, o''o/e 0'o =)')e5 Ro)'o, %-e /0e o0 %-e e0en)n%, Bartolo/e'no%en%0o, -e en %-e )n)n+)'%ne'. I% )%%e %-)% %- %o%)5, ) 5%%5e ove' 4, 3::, /) %-e e%)%e $o% o0%-e $)$o, u% n %-e +'o'e o0 %-e /o'? %-e e0en)n% 0oun %-)% % $)55e 0o'

)%on)5 0un, /-$- -e )v)n$e %o %-e )oun% o0 2, :24.49. I% )%0)$%o'5)++e)' 0'o %-e even$e %-)% %- )oun% ne$e)' n o'e' %o $o+5e%e %-e/o'? une'%)?en. A5%-ou- % /ou5 ee %-)% -e 0)5e %o no%0 - +)'%ne' o0 %-ev)'ou %e 0'o %e %o %e on %o )?e u+ %- u, % -o/n %-)% %-e oo?/e'e )% )55 %e o+en %o %-e' n+e$%on, )n %-)%, en )?e %o e>)ne %-e,%-e o%%e %o o o, )n %-)% %-e +5)n%00 Ju)n A)ust0n, 'e+'een%n )55 %-e+)'%ne', /) )5o +'een% )% %-e $on%'u$%on o0 %-e C)$o, n $-)'e o0 %-e +')$%$)5/o'? )n $on7)n% o0 % nee )n % +'o'e.

Iue# BON %-e )n)n +)'%ne' n o''o/n one /%-ou% $onen% 0'o o%-e'

+)'%ne' /%-n %-e $o+e o0 - )u%-o'%

De5# e. T-e /o'? one n %-e $)$o -)vn een /%-n %-e $o+e o0 %-e)o$)%on )n ne$e)' %o $)'' ou% % e>+'e oFe$%, %-e o''o/n o0 %-eone 'e<u'e %o $)'' % on, /%- %-e )$<ue$en$e 0 no% /%- %-e )00')%ve$onen% o0 - )o$)%e, /) no% ou%e %-e +o/e' o0 %-e )n)n +)'%ne' )n$on%%u%e ) e% 0o' /-$- )55 %-e )o$)%e )'e 5)5e. T-e )n)n +)'%ne' -))u%-o'% %o e$u'e 5o)n %o $o+5e%e %-e $on%'u$%on o0 C)$o 0o' ue n %-eune )n ne$e)' %o $)'' ou% %-e e>+'e oFe$% o0 %-e +)'%ne'-+.

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=)')n vs. G.R. No. 18334

"ACTS# On "e'u)' 12, 199, =)')nDrysdale ,and, In$. )n Go%e$o'o+e'%e, In$. en%e'e n%o ) Jon% Ven%u'e A'eeen% (JVA! 0o' %-e $on%'u$%on)n eve5o+en% o0 )n o00$e u5n on ) land o/ne =)')n Drysdale n=)?)% C%. V) Te$-n$)5 Se'v$e Con%')$% (TSC! )%e Ju5 14, 199, %-e Fon%ven%u'e en)e %-e e'v$e o0 %-e *0l0pp0neGeoanalyt0%s, In$. (GI! %o +'ove

uu'0)$e o5 e>+5o')%on, 5)o')%o' %e%n, e$ %u )n eo%e$-n$)5ennee'n 0o' %-e +'oFe$%. GI, /), -o/eve', )5e %o '55 on5 0ou' o' 0ve



o'e-o5e neee %o $onu$% % uu'0)$e o5 e>+5o')%on )n 5)o')%o' %e%n, Fu%0n % 0)5u'e %o '55 %-e 'e)nn o'e-o5e %o %-e 0)5u'e on %-e +)'% o0 %-e Fon%ven%u'e +)'%ne' %o $5e)' %-e )'e) /-e'e %-e '55n /) %o e )e. GI /) )5e %o$o+5e%e % e$ %u %-ou-. GI %-en 55e %-e Fon% ven%u'e on Novee' 24,199 0o' 284, 3.: 'e+'een%n %-e $o% o0 +)'%)5 uu'0)$e o5 e>+5o')%on;C)n on J)nu)' 1, 1998 0o' 2:, 8::.:: 'e+'een%n %-e $o% o0 %-e $o+5e%eCe$ %u. e+%e 'e+e)%e e)n 0'o GI, %-e Fon% ven%u'e 0)5e %o +) %o5)%on. ue %o un0)vo')5e e$ono$ $on%on )% %-e %e, %-e Fon% ven%u'e/) $u% -o'% )n %-e +5)nne u5n +'oFe$% /) even%u)55 -e5ve. GIue<uen%5 05e on Novee' 11, 1999 ) $o+5)n% 0o' ) $o55e$%on o0 u o0one )n ))e )% %-e RTC o0 ue7on C% ))n% =)')n Drysdale)nGo%e$o. ISSE# BON *0l0pp0ne Geoanalyt0%s, In$ en%%5e %o %-e +)en% o0e'v$e % 'ene'e. I0 o, /-$- e%/een Fon% ven%u'e' =)')n Drysdale )nGo%e$o e)' %-e 5)5% %o +) GI % un+) $5).

RLING# e. T-e Cou'% $onvn$e %-)% GI -) o'e %-)n u00$en%5e%)5-e % $5) ))n% %-e Fon% ven%u'e. In 0)$%, =)')n Drysdale -) 5on'e$on7e GIH $on%')$%u)5 $5) /-en % 'e$eve ) Ce'%0$)%e o0 )en% 0'o%-e Fon% ven%u'eH +'oFe$% )n)e' /-$- /) eno'e %o Go%e$o 0o' +'o$en)n +)en%. T-e Cou'% 0n =)')n )n Go%e$o Fon%5 5)5e %o GI. GIe>e$u%e ) %e$-n$)5 e'v$e $on%')$% /%- %-e Fon% ven%u'e )n /) neve' ) +)'% %o%-e JVA. B-5e %-e JVA $5e)'5 +e55e ou%, n%e' )5), %-e $)+%)5 $on%'u%on o0=)')n Drysdale )n Go%e$o ) /e55 ) %-e 0unn )n 0n)n$n e$-)n 0o'%-e +'oFe$%, %-e )e $)nno% e ue %o e0e)% %-e 5)/0u5



$5) o0 GI ))n% %-e %/o Fon% ven%u'e'*+)'%ne'. A Fon% ven%u'e en ) 0o' o0+)'%ne'-+, % %o e ove'ne %-e 5)/ on +)'%ne'-+. In %-e JVA,

=)')n Drysdale )n Go%e$o )'ee on ) :*: ')%o on %-e +'o$ee o0 %-e+'oFe$%. T-e no% +'ove 0o' %-e +5%%n o0 %-e 5oe, -o/eve'. A++5n %-e+'ovon o0 A'%$5e 19 %-en, %-e )e ')%o )++5e n +5%%n %-e 3,33.:Co5)%on*5o o0 %-e Fon% ven%u'e.

)))))))))))))))))))))))))))))))))))))))))))))))))))))))))

Marsman Drysdale Land, Inc. vs. Philippine Geoanalytics, Inc. and Gotesco Properties,

Inc. (G.R. No. 183374; 29 June 2010)

Gotesco Properties, Inc. vs. Marsman Drysdale Land, Inc. and Philippine Geoanalytics,

Inc. (G.R. No. 183376; 29 June 2010)

Facts: Marsman Drysdale, Inc. (Marsman) and Gotesco Properties, Inc. (Gotesco) entered

into

a joint venture agreement for the construction and development of an office building on a

land

owned by Marsman. They agreed on a 50-50 ratio on the proceeds of the project, but did not

agree on how losses would be divided. The joint venture engaged the services of Philippine

Geoanalytics, Inc. (PGI) to provide subsurface soil exploration, seismic study and

geotechnical

engineering. PGI completed its seismic study but failed to complete its subsurface soil

exploration because the area where drilling was to be made had not been cleared. The

buildingproject was subsequently shelved due to unfavorable economic conditions. PGI billed the

joint

venture for work done, but was not paid despite its repeated demands. PGI, thus, filed a

collection case against Marsman and Gotesco. Marsman passed the obligation to Gotesco

because under the joint venture agreement, Gotesco was solely liable for the monetary

expenses

of the project, and Marsman’s participation was limited to the land. Gotesco, on the other

hand,

asserted that PGI had no cause of action against it as PGI had yet to complete the services in

itscontract, and it was Marsman’s failure to clear the property of debris which prevented PGI

from

completing its work.

Issue: Who between Marsman and Gotesco was liable to pay PGI its unpaid claims?

Held: Marsman and Gotesco are jointly liable to PGI.

PGI was never a party to the joint venture agreement. While the joint venture agreement

clearly

spelled out the capital contributions of Marsman (land) and Gotesco (cash) and the funding

mechanism, it cannot be used to defeat the lawful claim of PGI against the two joint

venturers-partners. PGI’s contract clearly listed the joint venturers Marsman and Gotesco as the



beneficial owner of the project, and all billing invoices indicated the consortium as the client.

When there are two or more debtors, the obligation is presumed to be joint unless the law or

the

obligation expressly states that the liability is solidary, or unless the nature of the obligation

requires solidary liability (Articles 1207 and 1208, Civil Code). In this case, since solidary

liability was not required by law, or the contract, or by the nature of the obligation, theobligation to PGI was presumed to be joint between Marsman and Gotesco.

A joint venture being a form of partnership, it is to be governed by the laws on partnership.

Under the laws on partnership, particularly Article 1797 of the Civil Code, the losses and

profits

shall be distributed in accordance with the agreement; if only the share of each partner in

the

profits has been agreed upon, the share of each in the losses shall be in the same

proportion.

In the joint venture agreement, Marsman and Gotesco agreed on a 50-50 ratio on the proceeds

of the project, but did not provide for the splitting of losses. Applying Article 1797, the same

ratio applies in splitting the obligation-loss of the joint venture to PGI.

))))))))))))))))))))))))))))))))))))))))

Coleongco v Cla parols

Eu)'o L. C5)+)'o5, o+e')%e ) 0)$%o' 0o' %-e )nu0)$%u'e o0n)5 n T)5),

O$$en%)5 Ne'o, une' %-e %5e o0 C5)+)'o5S%ee5 & N)5 5)n%. T-e ')/)%e')5, n)5 /'e, /) +o'%e 0'o0o'en ou'$e, +e$)55 0'o e5u; )nC5)+)'o5 -) )'eu5)' o55)' )55o$)%on %-e'e0o', ')n%e %-e I+o'%Con%'o5Coon )n %-e Cen%')5 )n?. T-e )'?e%n o0 %-e n)5/) -)n5e %-e AC Coe'$)5 o0 )$o5o, /-$- /)o/ne ) C-n))n n)e M-oTo.Loe $o+e55e C5)+)'o5 n 193 %o 5oo? 0o' oeone %o0n)n$e - +o'% o0n)5 /'e. A% 0'%, M-o To )'ee %o o %-e0n)n$n, u% on A+'5 2, 193, %-eC-n))n n%'ou$e -$o+)'e, )++e55)n% V$en%e Co5eon$o, %o %-e)++e55ee,'e$oenn ) )++e55)n% %o e %-e 0n)n$e' n %-e %e) o0M-o To.C5)+)'o5 )'ee, )n on A+'5 2 o0 %-)% e)' )$on%')$% (E>-% ! /) +e'0e$%e

e%/een %-e /-e'eCo5eon$o une'%oo? %o 0n)n$e )n +u% u+ %-e 0un'e<u'e0o' %-e +o'%)%on o0 %-e n)5 /'e, /-$- C5)+)'o5 oun-e50 %o $onve'%n%o n)5 )% - +5)n%.In%e) o0 +u%%n u+ )55 %-e ne$e)' one neee %o0n)n$e%-e +o'% o0 ')/ )%e')5, Co5eon$o e'e5)v)n$e 2 n $)- on )$$oun% o0%-e +'$e )n -) %-e)5)n$e $ove'e u'e% )'eeen% e>e$u%e C5)+)'o5)n o%-e' ) o5)', (Fon% )n eve')5! u)')n%o' (ee E>-%G, D, I!.T-e u+-o% o0 %- )'')neen% /) %-)% C5)+)'o5 /))e %o -ou5e' 34 o0 %-e+)en% 0o' %-e +o'%, $on%')' %o%-e 0n)n$n )'eeen%. )')')+- 11 o0 %-e5)%%e' e>+'e5ene Co5eon$o )n +o/e' o' )u%-o'% %o n C5)+)'o5/%-ou%+'evou $onu5%)%on )n )u%-o'%. B-en %-e )5)n$e0o' %-e $o% o0 %-e

+o'%)%on e$)e ue, Co5eon$o, noe n%)n$e, +) % /%- %-e e)5e'@)v)n$e %o %-e n)50)$%o' ))n% 0u%u'e )5e /%-ou% %-e ?no/5ee o0



C5)+)'o5(E>-% M %o M*11, M*13!. ne' +)')')+- 8 )n 11 o0 %-e0n)n$n)'eeen%, Co5eon$o /) %o ve +'e0e'en$e %o %-eo+e')%n e>+ene e0o'e-)'n +'o0%, o %-)% un%5 %-eo+e')%n $o% /e'e +'ove 0o', Co5eon$o -) no'-% %o)++5 %-e 0)$%o'@ n$oe %o +) - o/n o5)%on.A'oun *Novee'o0 196, )++e55ee C5)+)'o5 /))'ee)5 u'+'e e'v$e o0 )n )5) /'% o0e>e$u%on %oen0o'$e ) Fuen% o%)ne ))n% - %-e -5++neN)%on)5 )n?,e+%e %-e 0)$% %-)% on %-e +'e$enSe+%ee' -e -) u%%e )n )o'%7)%on+5)n %o e%%5e %-e)$$oun%. Bo''e )n )5)'e, C5)+)'o5 e)%e5 5e0% 0o' =)n5)%o $on0e' /%- %-e )n? )u%-o'%e. +on )''v)5, -e5e)'ne %o - ) %-)% %-ee>e$u%on -) een +'o$u'ee$)ue o0 e'o)%o' n0o')%on ))n% )++e55ee (n%-e 0o'o0 %/o 5e%%e'! %-)% -) 'e)$-e %-e )n? 0'o - )o$)%e,)++e55)n%Co5eon$o.B-en C5)+)'o5 o% )$? %o %-e 0)$%o', -e eCo5eon$o ))%)n% )n)e' )n 5e)'ne o0 %-e ) 0)%- o0Co5eon$o %-'ou- - )$-ne'u+e'n%enen% )n %-'ou-oe 5e%%e' -e 0oun n Co5eon$o o00$e.% u% no%e 0o'o%%en %-)% ) +o/e' o0 )%%o'ne $)n e )e''evo$)5e $on%')$% on5 n %-eene %-)% %-e +'n$+)5 )no% 'e$)55 % )% - +5e)u'e; u% $ou+5e /%- n%e'e% o'no%, %-e

)u%-o'% $e'%)n5 $)n e 'evo?e 0o' ) Fu% $)ue, u$- )/-en %-e )%%o'ne*n*0)$%e%') %-e n%e'e% o0 %-e +'n$+)5, )-)++ene n %- $)e. I% no% o+en %o e'ouou% %-)% %-e''evo$)5% o0 %-e +o/e' o0 )%%o'ne ) no% e ue %o -e5%-e+e'+e%')%on o0 )$% n ) 0)%-, 'e)$- o0 $on0en$e, o' e%'))5 o0 %'u%, %-e)en% 0o' %-)% /ou5 )oun% %o -o5n%-)% ) +o/e' $ou+5e /%- )n n%e'e%)u%-o'7e %-e )en% %o$o% 0')u ))n% %-e +'n$+)5.Ou' ne/ Cv5 Coe, n A'%$5e 112, e>+'e5 +'ove %-e$on%')' n +'e$'n %-)% 'e+on5% )'n

0'o 0')u e)n)5e n )55 o5)%on, )n %-)% )n /)ve' o0 )$%on 0o' 0u%u'e0')u vo. I% )5o on %- +'n$+5e %-)% %-e Cv5 Coe,n % A'%$5e 18::, e$5)'e%-)% %-e +o/e' o0 ) +)'%ne',)++on%e ) )n)e', n %-e )'%$5e o0 $o*+)'%ne'-+)'e ''evo$)5e /%-ou% Fu% o' 5)/0u5 $)ue; )n )n )en% /%-+o/e'$ou+5e /%- )n n%e'e% $)n no% %)n on e%%e' 'oun%-)n u$- ) +)'%ne' n o 0)') ''evo$)5% o0 %-e +o/e' $on$e'ne.No e''o' /), %-e'e0o'e, $o%%e %-e%')5 $ou'% n e$5)'n%-e 0n)n$n $on%')$% +'o+e'5 'eo5ve C5)+)'o5 o'n'ene'n Fuen% ))n% )++e55)n% n 0)vo' o0 )++e55ee 0o' %-e ) )oun% o081,38.3. T-e )$ 'u5e o0 $on%')$%'e<u'e +)'%e %o )$% 5o)55 %o/)' e)$-o%-e' n %-e +u'u% o0%-e $oon en, )n )++e55)n% $5e)'5 vo5)%e %-e 'u5e o0oo0)%- +'e$'e A'%. 131 o0 %-e ne/ Cv5 Coe.T-e 5o/e' $ou'% )5o )55o/e

C5)+)'o5 :,::: 0o' ))e,)%e')5, o')5, )n e>e+5)', $)ue %-e)++e55)n%Co5eon$o@ )$% n )5$ou5 une'nn )++e55ee@ $'e%%-)% 5e %-e-5++ne N)%on)5 )n? %o e$u'e ) /'% o0e>e$u%on ))n% C5)+)'o5. nen)5,%-e )%%e+% o0Co5eon$o %o $'e% )n <uee7e C5)+)'o5 ou% o0 - o/n0)$%o')n une $ou5 no% u% $)ue %-e 5)%%e' en%)5)nu- )n e'ou )n>e%, )0oun %-e $ou'% e5o/, 0o' /-$- -e en%%5e %o $o+en)%on; )n %-e)5evo5en$e %-)%5) e-n )++e55ee@ )$%on Fu%0e )5o %-e +o%ono0e>e+5)' o' e%e''en% ))e (Cv. Coe, A'%. 2232!. B-5e%-e )/)' $ou5-)ve een )e 5)'e' /%-ou% vo5)%n %-e$)non o0 Fu%$e, %-e $'e%on n 0>nu$- ))e +')'55) n %-e %')5 $ou'%, )n /e 0ee5 %-)% %-e )e -ou5e'e+e$%e

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Coeo+o . Cara)o!: D.B. (o. 3)1-1 619#8EBeyes, 5.F.3., 5.Fa*!&*ince 19G1, duardo 3. $laparols, operated a factoryfor the manufacture of nails in Talisay, 'ccidental(egros, the $laparols *teel H (ail %lant. The rawmaterial, nail wire, was imported from foreignsources, specially from Felgium@ and he had aregular dollar allocation therefor, granted by the<mport $ontrol $ommission and the $entral Fank. The marketing of the nails was handled by theAF$ $ommercial of Facolod, which was ownedby a chinaman named Iho To.3osses compelled $laparols in 19G7 to look forsomeone to finance his imports of nail wire. At first,Iho To agreed to do the financing, but on April 2G,19G7, the $hinaman introduced his compadre,appellant 4icente $oleongco, to the appellee,recommending said appellant to be the financier inthe stead of Iho To. $laparols agreed, and on April

2G of that year a contract 6!hibit F8 was perfectedbetween them whereby $oleongco undertook tofinance and put up the funds reuired for theimportation of the nail wire, which $laparols boundhimself to convert into nails at his plant. <t wasagreed that $oleongco would have the e!clusivedistribution of the product, and the absolute care inthe marketing of these nails and the promotion of sales all over the %hilippines, e!cept the avaoAgency@ that $oleongco would share the control of all the cash from sales or deposited in banks@ that

he would have a representative in)the management@that all contracts and transactions should be "ointlyapproved by both parties@ that proper books wouldbe kept and annual accounts rendered@ and thatprofits and losses would be shared on a G0)G0basis. The contract was renewed from year to yearuntil 19G-, and $oleongco+s share subseuentlyincreased by GJ of the net profit of the factory. 'nApril 2>, 19G7, $laparols e!ecuted in favor of $oleongco, at the latter+s behest, a special power of

attorney 6!hibit $8 to open and negotiate letters of credit, to sign contracts, bills of lading, invoices, and



papers covering transactions@ to represent appelleeand the nail factory@ and to accept payments andcash advances from dealers and distributors. Thereafter, $oleongco also became the assistantmanager of the factory, and took over its business

transactions, while $laparols devoted most of histime to the nail manufacture processes.Around mid)(ovember 19G, $laparols learned fromthe %(F that $oleongco wrote the bank trying todiscredit him, causing the bank to issue an alias writof e!ecution. Fehind $laparol+s back, $olengcowrote the bank alleging that $laparol was notserious in meeting his financial obligations by sellingthe machines. $laparols was able to settle thematter with the bank but because of this, herevoked the *%A and informed $oleongco of thesame thru registered mail. e also hired anautditing firm $. =iller H $ompany, auditors, to goover the books and records of the business with aview to ad"usting the accounts of the associates. This is after learning the $oleongco asked thesuperintendent Agsam to pour acid on themachinery to paralyKe the factory. $oleongco alsowrote Iho To to cut his monthly advances from%2000 to %1000 to take advantage of the financialdifficulties of $laparols and so that later, they may

own the factory. This was carried on by Iho To in aletter advising that he can only draw %1000. Theauditors found that $oleongco owed the $laparols(ail ;actory the amount of %-1,7->.7>, as of 5une70, 19G>. $oleongco was also dismissed as theassistant manager.$oleongco denies the allegations and claims thatthe revocation of the *%A was illegal and that he isentitled to the share of the profits as well as moraldamages. $laparols counterclaimed.

<ssue?$an $laparols validly revoke the *pecial %ower of Attorney even if it is coupled with interest on thepart of the agentL

eld? *. <t is first contended by the appellant $oleongcothat the power of attorney was made to protect hisinterest under the financing agreement and was onecoupled with an interest that the appellee $laparols

had no legal power to revoke. This point cannot besustained. <t must not be forgotten that a power of



attorney can be made irrevocable by contract onlyin the sense that the principal may not recall it at hispleasure@ but coupled with interest or not, theauthority certainly can be revoked for a "ust cause,such as when the attorney)in)fact betrays the

interest of the principal, as happened in this case. <tis not open to serious doubt that the irrevocability of the power of attorney may not be used to shield theperpetration of acts in bad faith, breach of confidence, or betrayal of trust, by the agent, forthat would amount to holding that a power, coupledwith an interest authoriKes the agent to commitfrauds against the principal.'ur new $ivil $ode, in Article 11>2, e!presslyprovides the contrary in prescribing thatresponsibility arising from fraud is demandable in allobligations, and that any waiver of action for futurefraud is void. <t is also on this principle that the $ivil$ode, in its Article 1-00, declares that the powers of a partner, appointed as manager, in the articles of copartnership are irrevocable without "ust or lawfulcause@ and an agent with power coupled with aninterest cannot stand on better ground than such apartner in so far as irrevocability of the power is concerned. The action of plaintiff )appellant for damages andlost profits due to the discontinuance of the

financing agreement, !hibit F, may not prosper,because the record shows that the appellantlikewise breached his part of the contract. <t will berecalled that under paragraph 2 of the contract,!hibit F, it was stipulated?That the %arty of the *econd %art 6$oleongeo8 hasagreed to finance and put up all the necessarymoney which may be needed to pay for theimportation of the raw material needed by such nailfactory and allocated by the <$$ from time to timeeither in cash or with whatever suitable means

which the %arty of the *econd %art may be able tomake by suitable arrangements with any well knownbanking institution recogniKed by the $entral Fankof the %hilippines.<nstead of putting up all the necessary moneyneeded to finance the imports of raw material,$oleangco merely advanced 2GJ in cash on accountof the price and had the balance covered by suretyagreements e!ecuted by $laparols and others assolidary 6"oint and several8 guarantors. $laparols

was made to shoulder 7M#, of the payment for theimports, contrary to the financing agreement.



%aragraph 11 of the latter e!pressly denied$oleongco any power or authority to bind $laparolswithout previous consultation and authority. &henthe balances for the cost of the importationsbecame due, $oleongco in some instances, paid it

with the dealers+ advances to the nail factoryagainst future sales without the knowledge of $laparols. /nder paragraphs - and 11 of thefinancing agreement, $oleongeo was to givepreference to the operating e!penses before sharingprofits, so that until the operating costs wereprovided for, $oleongco had no right to apply thefactory+s income to pay his own obligations.;or 19G> to 19G- $laparols financed the imports of nail wire without the help of appellant, and in viewof the latter+s infringement of his obligations, hisacts of disloyalty previously discussed, and hisdiversions of factory funds 6he even bought twomotor vehicles with them8, the court finds no "ustification for his insistence in sharing in thefactory+s profit for these years, nor for therestoration of the revoked power of attorney. The accountant+s reports and testimony prove thatas of 5une 70, 19G>, $oleongco owed to $laparolsthe sum of %-7,#.7# that after some ad"ustmentwas reduced to %-1,7->.7>, practically accepted

even by appellant+s auditor. The basic rule of contracts reuires parties to actloyally toward each other, in the pursuit of thecommon end, and appellant clearly violated the ruleof good faith prescribed by Art. 171G of the (ew$ivil $ode. The lower court also allowed $laparols %G0,000 fordamages, material, moral and e!emplary, caused bythe appellant $oleongco+s acts in maliciouslyundermining appellee+s credit that led the %hilippine(ational Fank to secure a writ of e!ecution against

$laparols. /ndeniably, the attempts of $olleongco todiscredit and sueeKe $laparols out of his ownfactory and business could not but cause the lattermental anguish and serious an!iety, as found by thecourt below, for which he is entitled tocompensation@ and the malevolence that lay behindappellee+s actions "ustified also the imposition of e!emplary or deterrent damages 6$iv. $ode, Art.22728. &hile the award could have been madelarger without violating the canons of "ustice, the

discretion in fi!ing such damages primarily lay in thetrial court, and we feel that the same should be



respected. 5udgment affirmed.))))))))))))))))))))))))))))))))))))))))

Bachrach v La Protectora

")$%#N$o5) Seuno, An%ono A)'%e, In)$o "5o'e )n =oe%o Se'')no (e0en)n%!0o'e ) $v5 +)'%ne'-+ $)55e L) 'o%e$%o')P 0o' %-e +u'+oe o0 en)n n %-eune o0 %')n+o'%n +)ene' )n 0'e-% )% L)o), I5o$o No'%e. =)'$e5o)'), )$%n ) )n)e', neo%)%e 0o' %-e +u'$-)e o0 2 )u%oo5e %'u$? 0'oE. =. )$-')$- 0o' 16,::. )') +) 3,::: n $)- )n 0o' %-e )5)n$ee>e$u%e +'oo' no%e.One o0 %-ee +'oo' no%e /) ne n %-e 0o55o/n )nne'#. L) 'o%e$%o'), =)'$e5o )') =)'$e5o )')PT-e o%-e' 2 no%e /e'e ne n %-e )e /) u% %-e /o' P /) o%%e. I% /)ovou %-)% n nn %-e no%e, )') n%ene %o n o%- %-e +)'%ne'-+ )n

-e50.T-e e0en)n% e>e$u%e ) o$uen% n /-$- %-e e$5)'e %-)% %-e /e'eee' o0 L) 'o%e$%o') )n %-)% %-e -) ')n%e %o % +'een% 0u55 )u%-o'% %o$on%')$% 0o' %-e +u'$-)e o0 %-e 2 )u%oo5e. T-e o$uen% /) e5ve'e )') %o )$-')$- )% %-e %e %-e ve-$5e /e'e +u'$-)e.)') n$u''e ) e% )oun%n %o 2,61. )n )$-')$- 0o'e$5oe ) $-)%%e5o'%)e on %-e %'u$? u% %-e'e /) %55 )5)n$e. To 'e$ove' %-e )5)n$e, )$%on/) n%%u%e ))n% %-e e0en)n%. Juen% /) 'ene'e ))n% %-ee0en)n%.

Iue#).B-e%-e' o' no% %-e e0en)n% )'e 5)5e 0o' %-e 0' e%..B-e%-e' o' no% )') -) )u%-o'% %o n$u' e>+ene 0o' %-e +)'%ne'-+(relevantissue)

De5#).e. 'oo' no%e $on%%u%e %-e o5)%on e>$5uve5 o0 L) 'o%e$%o') )n)'). T-e o no% $on%%u%e )n o5)%on 'e$%5 nn %-e e0en)n%. T-e'5)5% )e on %-e +'n$+5e o0 +)'%ne'-+ 5)5%. A ee' no% 5)5e no5u /%- - 0e55o/ 0o' %-e en%'e ne%ene u% 5)5e /%- %-e o' -)5<uo% +)'%.

SC o%e'# %-e o$uen% /) n%ene e'e5 ) )n )u%-o'% %o en)5e )') %on %-e +)'%ne'-+ )n %-)% %-e +)'%e %o %-e n%'uen% no% n%en %o $on0e'u+on )') )n )u%-o'% %o n %-e +e'on)55.. e. ne' A'% 18:4, eve' +)'%ne' ) )o$)%e )no%-e' +e'on /%- - n --)'e. A55 +)'%ne' )'e $one'e )en% o0 %-e +)'%ne'-+. )') u% e -e5 %o-)ve )u%-o'% %o n$u' %-ee e>+ene. De -o/n %o -)ve een n 0)$% %-e+'een%)n)e', )n %-e'e $)n e no ou% %-)% -e -) )$%u)5 )u%-o'% %o n$u'o5)%on.)))))))))))))))))))))))))))))))))))

E. =. ACDRACD, +5)n%00*)++e55ee, v.LA ROTECTORA, ET AL., e0en)n%*

)++e55)n%. G.R. No. L*11624 J)nu)' 21, 1918



STREET, J.# "ACTS# In %-e e)' 1913, %-e nvu)5 n)e ) e0en)n% n %-)$%on 0o'e ) $v5 +)'%ne'-+, $)55e L) 'o%e$%o'), 0o' %-e +u'+oe o0 en)nn %-e une o0 %')n+o'%n +)ene' )n 0'e-% )% L)o), I5o$o No'%e. Ino'e' %o +'ove %-e en%e'+'e /%- e)n o0 %')n+o'%)%on, =)'$e5o )'), )$%n) )n)e', $)e %o =)n5) )n u+on June 23, 1913, neo%)%e %-e +u'$-)e o0%/o )u%oo5e %'u$? 0'o %-e +5)n%00, E. =. )$-')$-, 0o' %-e )'ee +'$e o016,::. De +) %-e u o0 3,::: n $)-, )n 0o' %-e )5)n$e e>e$u%e +'oo'no%e 'e+'een%n %-e e0e''e +)en%. T-ee no%e +'ove 0o' %-e +)en% o0n%e'e% 0'o June 23, 1913, %-e )%e o0 %-e no%e, )% %-e ')%e o0 1: +e' $en% +e')nnu. 'ovon /) )5o )e n %-e no%e 0o' %-e +)en% o0 2 +e' $en% o0 %-e)oun% ue 0 % -ou5 e ne$e)' %o +5)$e %-e no%e n %-e -)n o0 )n )%%o'ne0o' $o55e$%on. T-'ee o0 %-ee no%e, 0o' %-e u o0 3,3 e)$-, -)ve een )e %-euFe$% o0 %-e +'een% )$%on, )n %-e'e )'e e>-%e /%- %-e $o+5)n% n %-e $)ue.One /) ne =)'$e5o )') n %-e 0o55o/n )nne'# . . L) 'o%e$%o') =)'$e5o )') =)'$e5o )'). T-e o%-e' %/o no%e )'e ne n %-e )e /) /%-%-e /o' o%%e e0o'e %-e n)e o0 =)'$e5o )') n %-e e$on 5ne o0 %-en)%u'e. I% ovou %-)% n %-u nn %-e no%e =)'$e5o )') n%ene %o no%- %-e +)'%ne'-+ )n -e50. In %-e o o0 %-e no%e %-e /o' I (o! n%e) o0/e (noo%'o! ue e0o'e %-e /o' +'oe %o +) (+'oe%eo! ue n %-e+'n%e 0o'. I% +5)n %-)% %-e nu5)' +'onoun -e'e -) )55 %-e 0o'$e o0 %-e +5u')5. A +'e5n)' %o %-e +u'$-)e o0 %-ee %'u$?, %-e e0en)n% N$o5) Seuno, An%ono A)'%e, In)$o "5o'e, )n =oe%o Se'')no, u+on June 12, 1913,e>e$u%e n ue 0o' ) o$uen% n /-$- %-e e$5)'e %-)% %-e /e'e ee' o0%-e 0' L) 'o%e$%o') )n %-)% %-e -) ')n%e %o % +'een% 0u55 )u%-o'% n %-en)e )n 'e+'een%)%on o0 ) +)'%ne'-+ %o $on%')$% 0o' %-e +u'$-)e o0 %/o)u%oo5e (en no'e 'e+'een%)$on e 5) en$on)) o$e) $on%')%)n%e 5)$o+') e o )u%oov5e!. T- o$uen% /) )++)'en%5 e>e$u%e n oeen$e%o %-e 'e<u'een% o0 ue$%on 2 o0 )'%$5e 169 o0 %-e Cv5 Coe, 0o' %-e +u'+oeo0 even$n %-e )u%-o'% o0 =)'$e5o )') %o n %-e +)'%ne'-+ %-e +u'$-)e.T-e o$uen% n <ue%on /) e5ve'e - %o )$-')$- )% %-e %e %-e)u%oo5e /e'e +u'$-)e. "'o %e %o %e )0%e' %- +u'$-)e /) )e,=)'$e5o )') +u'$-)e o0 %-e +5)n%00 v)'ou )u%oo5e e00e$% )n )$$eo'e%o e ue n %-e une o0 L) 'o%e$%o'). +on =) 21, 1914, %-e ne%ene'eu5%n 0'o %-ee )%on)5 +u'$-)e )oun%e %o %-e u o0 2,916. In =),

1914, %-e +5)n%00 0o'e$5oe ) $-)%%e5 o'%)e /-$- -e -) 'e%)ne on %-e %'u$?n o'e' %o e$u'e %-e +u'$-)e +'$e. T-e )oun% 'e)57e 0'o %- )5e /)1,:::. T- /) $'e%e un+). To 'e$ove' %- )5)n$e, %oe%-e' /%- %-e uue 0o' )%on)5 +u'$-)e, %-e +'een% )$%on /) n%%u%e n %-e Cou'% o0 "'%In%)n$e o0 %-e $% o0 =)n5), u+on =) 29, 1914, ))n% L) 'o%e$%o') )n %-e0ve nvu)5 =)'$e5o )'), N$o5) Seuno, An%ono A)'%e, In)$o "5o'e,)n =oe%o Se'')no. No <ue%on -) een )e ) %o %-e +'o+'e% o0 +5e)nL) 'o%e$%o') ) 0 % /e'e )



5e)5 en%%. A% %-e -e)'n, Fuen% /) 'ene'e ))n% )55 o0 %-e e0en)n%."'o %- Fuen% no )++e)5 /) %)?en n e-)50 e%-e' o0 L) 'o%e$%o') o'

=)'$e5o )'); )n %-e' 5)5% no% -e'e une' $one')%on. T-e 0ou' nvu)5/-o ne %-e o$uen% %o /-$- 'e0e'en$e -) een )e, )u%-o'7n )') %o+u'$-)e %-e %/o %'u$? -)ve, -o/eve', )++e)5e )n )ne e''o'. T-e <ue%on-e'e %o e e%e'ne /-e%-e' o' no% %-ee nvu)5 )'e 5)5e 0o' %-e 0' e%)n 0 o %o /-)% e>%en%. T-e )oun% o0 ne%ene o/n %o %-e +5)n%00 no% n+u%e, ) %-e +'n$+)5 o0 %-e e% )'ee %o e ,:3. O0 %- )oun% % u%no/ e )ue, n ve/ o0 %-e 0nn o0 %-e %')5 $ou'%, 0'o /-$- no )++e)5 -)een %)?en %-e +5)n%00, %-)% %-e un+) )5)n$e o0 %-e no%e )oun% %o 4,121,/-5e %-e 'e)ne' (2,916! 'e+'een% %-e )oun% ue 0o' )u%oo5e u++5e )n)$$eo'e.

ISSE# BON )') -) %-e )u%-o'% %o n %-e +)'%ne'-+ DEL# T-e une$onu$%e une' %-e n)e o0 L) 'o%e$%o') /) even%5 %-)% o0 ) $v5+)'%ne'-+; )n %-e 5)5% o0 %-e +)'%ne' %o %- )o$)%on u% e e%e'neune' %-e +'ovon o0 %-e Cv5 Coe. T-e )u%-o'% o0 =)'$e5o )') %o n %-e+)'%ne'-+, n %-e +u'$-)e o0 %-e %'u$?, 0u55 e%)5-e %-e o$uen%e>e$u%e %-e 0ou' )++e55)n% u+on June 12, 1913. T-e %')n)$%on /-$- )')e$u'e %-ee %'u$? /) n $on0o'% /%- %-e %eno' o0 %- o$uen%. T-e+'oo' no%e $on%%u%e %-e o5)%on e>$5uve5 o0 L) 'o%e$%o') )n o0=)'$e5o )'); )n %-e o no% n )n ene $on%%u%e )n o5)%on 'e$%5 nnon %-e 0ou' )++e55)n%. T-e' 5)5% )e on %-e 0)$% %-)% %-e )'e ee' o0%-e $v5 +)'%ne'-+ )n ) u$- )'e 5)5e 0o' % e%. I% %'ue %-)% )'%$5e 1698 o0%-e Cv5 Coe e$5)'e %-)% ) ee' o0 ) $v5 +)'%ne'-+ no% 5)5e n o5u(o5)')en%e! /%- - 0e55o/ 0o' % en%'e ne%ene; u% % 'eu5% 0'o %-)'%$5e, n $onne$%on /%- )'%$5e 113 o0 %-e Cv5 Coe, %-)% e)$- 5)5e /%- %-eo%-e' ()n$oun))en%e! 0o' - )5<uo% +)'% o0 u$- ne%ene. An o % -)een -e5 %- $ou'%. (Co*%$o v. u5o, 8 -5. Re+., 44.! A %o o u$- o0 %-ene%ene ) )e u+on %-e $5) 0o' )u%oo5e u++5e )n )$$eo'e, % ovou %-)% %-e o$uen% o0 June 12, 1913, )00o' no )u%-o'% 0o' -o5n %-e)++e55)n% 5)5e. T-e' 5)5% u+on %- )$$oun% , -o/eve', no 5e ovou %-)nu+on %-e e% n$u''e %-e +u'$-)e o0 %-e %'u$?; )n u$- 5)5% e've0'o %-e 0)$% %-)% %-e e% /) 5)/0u55 n$u''e n %-e +'oe$u%on o0 %-e +)'%ne'-+en%e'+'e. T-e'e no +'oo0 n %-e 'e$o' -o/n /-)% %-e )'eeen%, 0 )n, /))e /%- 'e)' %o %-e 0o' o0 )n)een%. ne' %-ee $'$u%)n$e % e$5)'e n )'%$5e 169 o0 %-e Cv5 Coe %-)% )55 %-e +)'%ne' )'e $one'e )en%o0 %-e +)'%ne'-+. )') %-e'e0o'e u% e -e5 %o -)ve -) )u%-o'% %o n$u' %-eee>+ene. u% n )%on %o %- -e -o/n %o -)ve een n 0)$% %-e +'een% o')n)e', )n %-e'e $)n e no ou% %-)% -e -) )$%u)5 )u%-o'% %o n$u' %-o5)%on

)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))



1.! AN "E LENG, +e%%one', v. DON. INTER=EIATE AELLATE CORT)n LENG I, 'e+onen%. G.R. No.

:926 J)nu)' 31, 1989 GTIERREQ, JR., J.#

"ACTS# T-e +e%%one' )? 0o' %-e 'eve')5 o0 %-e e$on o0 %-e %-en In%e'e)%e A++e55)%e Cou'% n AC*G.R. No. CV*::881 /-$- )00'e %-e e$on o0 %-e %-enCou'% o0 "'% In%)n$e o0 =)n5), ')n$- II n Cv5 C)e No. 1162 e$5)'n+'v)%e 'e+onen% Leun u ) +)'%ne' o0 +e%%one' )n "ue Leun n %-e uneo0 Sun B)- )n$%e') )n o'e'n %-e +e%%one' %o +) %o %-e +'v)%e 'e+onen%- -)'e n %-e )nnu)5 +'o0% o0 %-e ) 'e%)u')n%. T- $)e o'n)%e 0'o )$o+5)n% 05e 'e+onen% Leun u /%- %-e %-en Cou'% o0 "'% In%)n$e o0=)n5), ')n$- II %o 'e$ove' %-e u e<uv)5en% %o %/en%*%/o +e'$en% (22! o0 %-e)nnu)5 +'o0% e've 0'o %-e o+e')%on o0 Sun B)- )n$%e') n$e O$%oe', 190'o +e%%one' )n "ue Leun. T-e Sun B)- )n$%e'), ) 'e%)u')n%, 5o$)%e )%

"5o'en%no To''e S%'ee%, S%). C'u7, =)n5), /) e%)5-e oe%e n O$%oe',19. I% /) 'e%e'e ) ) n5e +'o+'e%o'-+ )n % 5$ene )n +e'% /e'eue %o )n n 0)vo' o0 +e%%one' )n "ue Leun ) %-e o5e +'o+'e%o'.Re+onen% Leun u )u$e even$e u'n %-e %')5 o0 %-e $)e %o -o/ %-)%Sun B)- )n$%e') /) )$%u)55 ) +)'%ne'-+ )n %-)% -e /) one o0 %-e +)'%ne'-)vn $on%'u%e 4,:::.:: %o % n%)5 e%)5-en%. T-e +'v)%e 'e+onen%even$e u)'7e ) 0o55o/# Aou% %-e %e %-e Sun B)- )n$%e') %)'%e%o e$oe o+e')%on)5, %-e +'v)%e 'e+onen% )ve 4,:::.:: ) - $on%'u%on %o%-e +)'%ne'-+. T- even$e ) 'e$e+% /-e'en %-e +e%%one' )$?no/5ee- )$$e+%)n$e o0 %-e 4,:::.:: )00>n - n)%u'e %-e'e%o. "u'%-e'o'e, %-e

+'v)%e 'e+onen% 'e$eve 0'o %-e +e%%one' %-e )oun% o0 12,:::.:: $ove'e %-e 5)%%e'@ E<u%)5e )n?n Co'+o')%on C-e$? 0'o %-e +'o0% o0 %-e o+e')%ono0 %-e 'e%)u')n% 0o' %-e e)' 194 T-e +e%%one' ene -)vn 'e$eve 0'o %-e+'v)%e 'e+onen% %-e )oun% o0 4,:::.::. De $on%e%e )n +une %-eenunene o0 %-e 'e$e+%. D even$e u)'7e ) 0o55o/# T-e +e%%one' no% 'e$eve )n $on%'u%on )% %-e %e -e %)'%e %-e Sun B)- )n$%e'). Deue - )vn 0'o - )5)'e ) )n e+5oee )% C)+ S%o%ene' n C5)'?"e5 )n 5)%e' ) /)%e' )% %-e To-o Re%)u')n% )oun%n %o ) 5%%5e o'e %-)n2,:::.:: ) $)+%)5 n e%)5-n Sun B)- )n$%e'). e%%one' +'een%ev)'ou ove'nen% 5$ene )n +e'% -o/n %-e Sun B)- )n$%e') /) )n

%55 ) n5e +'o+'e%o'-+ o5e5 o/ne )n o+e')%e -e50 )5one. "ueLeun )5o 05)%5 ene -)vn ue %o %-e +'v)%e 'e+onen% %-e 'e$e+% (E>-%G! )n %-e E<u%)5e )n?n Co'+o')%on@ C-e$? No. 133894: n %-e )oun% o012,:::.:: (E>-% !.

ISSE# BON 'v)%e 'e+onen% ) +)'%ne' o0 %-e +e%%one' n Sun B)-)n$%e')

DEL# T-e +'v)%e 'e+onen% ) +)'%ne' o0 %-e +e%%one' n Sun B)- )n$%e').T-e 'e<u%e o0 ) +)'%ne'-+ /-$- )'e 1! %/o o' o'e +e'on n %-ee5ve%o $on%'u%e one, +'o+e'%, o' nu%' %o ) $oon 0un; )n 2! n%en%on on %-e

+)'% o0 %-e +)'%ne' %o ve %-e +'o0% )on %-ee5ve (A'%$5e 16, Cv5 Coe;u5o v. )n C-)o C-en, 1:6 -5. 11:!*-)ve een e%)5-e. A %)%e %-e



'e+onen%, ) +)'%ne' -)'e no% on5 n +'o0% u% )5o n %-e 5oe o0 %-e 0'. I0e>$e55en% 'e5)%on e>% )on %-e +)'%ne' )% %-e %)'% o0 une )n )55 %-e+)'%ne' )'e o'e n%e'e%e n een %-e 0' 'o/ ')%-e' %-)n e% e)%e'e%u'n, ) e0e'en% o0 -)'n n %-e +'o0% +e'0e$%5 +5)u5e. I% /ou5 en$o''e$% %o %)%e %-)% 0 ) +)'%ne' oe no% )e'% - '-% )n%e /%-n %en e)'0'o %-e %)'% o0 o+e')%on, u$- '-% )'e ''e%'ev)5 5o%. T-e +'v)%e'e+onen%@ $)ue o0 )$%on +'ee u+on %-e 0)5u'e o0 %-e +e%%one' %o ve -%-e )'ee +'o0% n %-e o+e')%on o0 Sun B)- )n$%e'). In e00e$% %-e +'v)%e'e+onen% /) )?n 0o' )n )$$oun%n o0 - n%e'e% n %-e +)'%ne'-+.



I% A'%$5e 1842 o0 %-e Cv5 Coe n $onFun$%on /%- A'%$5e 1144 )n 11 /-$- )++5$)5e. A'%$5e 1842 %)%e# T-e '-% %o )n )$$oun% o0 - n%e'e% -)55 )$$'ue %o

)n +)'%ne', o' - 5e)5 'e+'een%)%ve ) ))n% %-e /nn u+ +)'%ne' o' %-eu'vvn +)'%ne' o' %-e +e'on o' +)'%ne'-+ $on%nun %-e une, )% %-e )%eo0 o5u%on, n %-e )en$e o' )n )'eeen% %o %-e $on%')'. Re)'n %-e+'e$'+%ve +e'o /%-n /-$- %-e +'v)%e 'e+onen% ) e)n )n )$$oun%n, A'%$5e 18:6, 18:, )n 18:9 -o/ %-)% %-e '-% %o e)n )n )$$oun%n e>% )5on ) %-e +)'%ne'-+ e>%. 'e$'+%on en %o 'un on5 u+on %-e o5u%on o0%-e +)'%ne'-+ /-en %-e 0n)5 )$$oun%n one. Cone'n %-e 0)$% o0 %- $)e,%-e Cou'% ) e$'ee ) o5u%on o0 %-e +)'%ne'-+ une' A'%$5e 1831 o0 %-e Cv5Coe /-$-, n +)'%, +'ove# A'%. 1831. On )++5$)%on o' 0o' ) +)'%ne' %-e $ou'%-)55 e$'ee ) o5u%on /-eneve'# >>> >>> >>> (3! A +)'%ne' -) een u5% o0

u$- $onu$% ) %en %o )00e$% +'eFu$)55 %-e $)''n on o0 %-e une; (4! A+)'%ne' /550u55 o' +e'%en%5 $o% ) 'e)$- o0 %-e +)'%ne'-+ )'eeen%, o'o%-e'/e o $onu$% -e50 n )%%e' 'e5)%n %o %-e +)'%ne'-+ une %-)% % no% 'e)on)5 +')$%$)5e %o $)'' on %-e une n +)'%ne'-+ /%- -; >>> >>>>>> (6! O%-e' $'$u%)n$e 'ene' ) o5u%on e<u%)5e. T-e'e -)55 e )5<u)%on )n /nn u+ o0 +)'%ne'-+ )00)', 'e%u'n o0 $)+%)5, )n o%-e' n$en%o0 o5u%on e$)ue %-e $on%nu)%on o0 %-e +)'%ne'-+ -) e$oe ne<u%)5e.

))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))

un)<ue vs. %a e%

G.R. No. L*398: Novee' 11, 198 EL=O =ASE, +e%%one', vs.

CORT O" AEALS,CELESTINO GALAN TROICAL CO==ERCIAL CO=AN)n RA=ON ONS, 'e+onen%.

GTTIERREQ, JR., J.# ")$%# =un)<ue (+e%%one'! en%e'e n%o ) +)'%ne'-+ /%-G)5)n une' %-e 'e%e'e n)e G)5)n )n Ao$)%eP ) Con%')$%o'. T-een%e'e n%o ) /'%%en $on%')$% /%- 'e+onen% T'o+$)5 0o' 'eoe5n %-e 5)%%e'HCeu ')n$- u5n. ne' %-e $on%')$%, %-e +'oFe$% %o%)5e 2,::: %o e +) nn%)55en%; , ::: u+on nn )n 6, ::: eve' 1 /o'?n ). T'o+$)5 )e%-e 0'% +)en% $-e$? n %-e n)e o0 =un)<ue. =un)<ue no'e %-e $-e$?n 0)vo' o0 G)5)n %o en)5e G)5)n %o e+o% % n %-e )n? )n +) 0o' %-e )%e')5)n 5)o' ue n %-e +'oFe$%. Do/eve', G)5)n )55ee5 +en% 6, 183.3 0o' -+e'on)5 ue. B-en %-e e$on $-e$? $)e, =un)<ue 'e0ue %o no'e % ))n%o G)5)n. G)5)n n0o'e T'o+$)5 o0 %-e une'%)nn e%/een - )n=un)<ue ) +)'%ne'. Den$e u+on e$on +)en%, T'o+$)5 $-)ne %-e n)e o0%-e +)ee on %-e e$on $-e$? 0'o =un)<ue %o G)5)n )n Ao$)%eP /-$-en)5e G)5)n %o en$)- %-e e$on $-e$?. =e)n/-5e, %-e $on%'u$%on /)$on%nue %-'ou- =un)<ueH o5e e00o'% n$u''n e% 0'o v)'ou u++5e'.T-e $on%'u$%on /o'? /) 0n-e )-e) o0 $-eu5e /%- %-e %o%)5 e>+en%u'e'e)$-n 34, ::: (no%e un $on%')$% n5) 2? 5)n!. =un)<ue 05e ) $o+5)n%0o' +)en% o0 u o0 one )n ))e ))n% G)5)n, T'o+$)5, )n T'o+$)5H



Ceu ')n$- )n)e' on. Ceu Sou%-e'n D)'/)'e Co+)n )n 5ue )onG5) )5)$e n%e'vene n %-e $)e 0o' %-e $'e% /-$- %-e e>%ene %o %-e+)'%ne'-+ o0 =un)<ue )n G)5)n 0o' %-e $on%'u$%on +'oFe$%. o%- %')5 $ou'% )nCou'% o0 A++e)5 )o5ve 'e+onen% T'o+$)5 )n % Ceu )n)e', on, 0'o)n 5)5%. TC -e5 G)5v)n )n =un)<ue Fon%5 )n eve')55P 5)5e %o %$'e%o' /-$- e$on /) o0e CA )n -e5 %-e Fon%5P 5)5e.

Iue# B-e%-e' %-e o5)%on o0 =un)<ue )n G)5)n Fon% o' o5)'

De5# So5)'. B-5e % %'ue %-)% une' A'%$5e 1816 o0 CC, A55 +)'%ne', n$5unnu%')5 one, -)55 e 5)5e +'o ')%e /%- )55 %-e' +'o+e'% )n )0%e' )55 %-e+)'%ne'-+ )e% -)ve een e>-)u%e, 0o' %-e $on%')$% /-$- ) e en%e'en%o %-e n)e )n 0o' )$$oun% o0 %-e +)'%ne'-+, une' % n)%u'e )n ) +e'on)u%-o'7e %o )$% 0o' %-e +)'%ne'-+. >>>P, %- +'ovon -ou5 e $on%'ue%oe%-e' /%- A'%$5e 1824 /-$- +'ove %-)%# A55 +)'%ne' )'e 5)5e o5)'5 /%-

%-e +)'%ne'-+ 0o' eve'%-n $-)'e)5e %o %-e +)'%ne'-+ une' A'%$5e 1822 )n1823.P B-5e %-e 5)5% o0 %-e +)'%ne' )'e e'e5 Fon% n %')n)$%on en%e'e n%o %-e +)'%ne'-+, ) %-' +e'on /-o %')n)$%e /%- ) +)'%ne'-+ $)n -o5 %-e+)'%ne' o5)'5 5)5e 0o' %-e /-o5e o5)%on 0 %-e $)e o0 %-e %-' +e'on 0)55une' A'%$5e 1822 )n 1823. T-e o5)%on o5)' e$)ue %-e 5)/ +'o%e$%-, /-o n oo 0)%- 'e5e u+on %-e )u%-o'% o0 ) +)'%ne', /-e%-e' u$- )u%-o'% 'e)5 o' )++)'en%. T'o+$)5 -) eve' 'e)on %o e5eve %-)% ) +)'%ne'-+ e>%ee%/een =un)<ue )n G)5)n )n no 0)u5% o' e''o' $)n e +u%e ))n% % 0o')?n +)en% %o G)5)n )n Ao$)%eP e$)ue ) 0)' ) % /) $on$e'ne,G)5)n /) ) %'ue +)'%ne' /%- 'e)5 )u%-o'% %o %')n)$% n e-)50 o0 %-e +)'%ne'-+ %

/) e)5n /%- (e$)ue n %-e 0'% +5)$e %-e en%e'e n%o ) u5 'e%e'e+)'%ne'-+ n)e )n e$on5, =un)<ue eno'e %-e 0'% $-e$? +)en% %oG)5)n!. T- even o'e %'ue n %-e $)e o0 %-e n%e'veno' /-o u++5e )%e')5on $'e% %o %-e +)'%ne'-+. T-u, % u% 0)' %-)% %-e $one<uen$e o0 )n /'on0u5)$% $o%%e )n o0 %-e +)'%ne' %-e'en -ou5 e )n/e'e o5)'5 )55 %-e+)'%ne' )n %-e +)'%ne'-+ ) ) /-o5e. Do/eve', ) e%/een =un)<ue )nG)5)n, G)5)n u% 'eu'e =un)<ue 0o' %-e +)en% )e %o %-e n%e'veno') % /) )%0)$%o'5 e%)5-e %-)% G)5)n )$%e n ) 0)%- n - e)5n /%-=un)<ue ) ) +)'%ne'.

))))))))))))))))))))))))))))))))))))))))))))

(A'%. 1816! I5)n Sales, 'n% vs. +n0ted *0oneers General Constru%t0on G.R. No.L*22493 Ju5 31, 19 6 SCRA 4

")$%# +n0ted onee' ou-% ) o%o'$$5e on n%)55en% ) 0'oI5)n Sales, 'n%. I% ue ) +'oo' no%e n %-e )oun% o0 944: +))5e n 12on%-5 n%)5en% o0 86.63. T-e 0'% n%)55en% /) %o e +) on =) 22,1961, -o/eve', on Ju5 22, 1961 % e0)u5%e )n I5)n Sales n%%u%e ) $)een0o'$n %-e )'eeen% n %-e +'oo' no%e )?n %-e en%'e )5)n$e ue )ne)n)5e u+on e0)u5%. T-e Cou'% 0oun %-e e0en)n% 5)5e 0o' %-e )5)n$e

)oun%n %o , 119.:. "u'%-e'o'e, %-e )eneral +)'%ne' /e'e -e5 5)5e 0 %-e



e0en)n% $o+)n no% )5e %o +). Sue<uen%5, one o0 %-e )eneral +)'%ne'5)5% /) $onone %-e +5)n%00.

Iue# B-e%-e' %-e $onon)%on o0 ) +)'%ne' -)'e n %-e e% o0 %-e $o+)nn$'e)e %-e 'e)nn +)'%ne' 5)5%

Ru5n# No. In %-e n%)n% $)e, %-e'e /e'e 0ve (! )eneral +)'%ne' /-en %-e+'oo' no%e n <ue%on /) e>e$u%e 0o' )n n e-)50 o0 %-e +)'%ne'-+. Sn$e%-e 5)5% o0 %-e +)'%ne' +'o ')%), %-e 5)5% o0 %-e )++e55)n% enF)n C. )$o-)55 e 5%e %o on5 one*00%- ( 1 ! o0 %-e o5)%on o0 %-e e0en)n% $o+)n.T-e 0)$% %-)% %-e $o+5)n% ))n% %-e e0en)n% Rou5o . Lu)u /)e, u+on o%on o0 %-e +5)n%00, oe no% un)?e %-e ) Lu)u )) )eneral +)'%ne' n %-e e0en)n% $o+)n. In o ovn %o %-e $o+5)n%,%-e +5)n%00 e'e5 $onone Lu)u@ nvu)5 5)5% %o %-e +5)n%00.

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G.R. No. L-793 ;uy 31, 195ISLAN( SAL"S, INC., plaintiff)appellee,vs.'NI%"( ION""RS G"N"RAL CONS%R'C%ION COMAN<,"%. AL 4ee+4a+*!. ="N;AMIN C. (ACO, defendantappellant.;A$T*? efendants)appellants Fen"amin $. aco,aniel A. DuiKona, (oel $. *im, Bomulo F. 3umauig, andAugusto %alisoc purchased a motor vehicle from plaintiffappellee<sland *ales <nc. via their partnership firm, /nited%ioneers Deneral $onstruction $ompany./nited %ioneers was not able to pay <sland *ales onthe installment of the motor vehicle, hence, a case waspursued by herein plaintiff against the firm /nited %ioneers,and its five 6G8 partners above)mentioned were included in theircapacity as general partners.;or reasons not mentioned in the case, the complaintagainst partner Bomulo F. 3umauig was dismissed uponmotion of the plaintiff. The $ourt ad"udged /nited %ioneers to pay <sland*ales the remaining unpaid amortiKation with 12J interest.

The trial court likewise sentenced the individual partners to pay<sland *ales if the defendant company has no more leviableproperties with which to satisfy the "udgment against it. The defendants Fen"amin $. aco and (oel $. *immoved to reconsider the decision claiming that since there arefive 6G8 general partners, the "oint and subsidiary liability of each partner should not e!ceed one)fifth 6 1MG 8 of the obligationsof the defendant company. Fut the trial court denied the saidmotion notwithstanding the conformity of the plaintiff to limit theliability of the defendants aco and *im to only one)fifth 6 1M G 8of the obligations of the defendant company. ence, this

appeal.



<**/? &'( the dismissal of the complaint to favorone of the general partners of a partnership increases the "ointand subsidiary liability of each of the remaining partners for theobligations of the partnership. 6('N8

B/3<(D? &B;'B, the appealed decision as thusclarified is hereby A;;<B=, without pronouncement as tocosts.3? There were five 6G8 general partners when thepromissory note in uestion was e!ecuted for and in behalf of the partnership. *ince the liability of the partners is pro rata, theliability of the appellant Fen"amin $. aco shall be limited toonly one)fifth 6 1M G 8 of the obligations of the defendant company. The fact that the complaint against the defendant BomuloF. 3umauig was dismissed, upon motion of the plaintiff,does not unmake the said 3umauig as a general partner inthe defendant company. <n so moving to dismiss thecomplaint, the plaintiff merely condoned 3umauig+sindividual liability to the plaintiff.Article 1-1 of the $ivil $ode provides?Art. 1-1. All partners including industrialones, shall be liable pro rata with all their propertyand after all the partnership assets have beene!hausted, for the contracts which may beentered into in the name and for the account of the partnership, under its signature and by a

person authoriKed to act for the partnership.owever, any partner may enter into a separateobligation to perform a partnership contract.<n the case of Co-Pitco vs. Yulo 6- %hil. G##8 this$ourt held? The partnership of ulo and %alacios wasengaged in the operation of a sugar estate in(egros. <t was, therefore, a civil partnership asdistinguished from a mercantile partnership. Feinga civil partnership, by the e!press provisions of articles l9- and 117> of the $ivil $ode, the

partners are not liable each for the whole debt of the partnership. The liability is pro rata and in thiscase %edro ulo is responsible to plaintiff for onlyone)half of the debt. The fact that the otherpartner, 5aime %alacios, had left the countrycannot increase the liability of %edro ulo.

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<n the case of $o)%itco !. <uo 6- %hil. G##8 this $ourt held?

The partnership of <uo and %alacios was engaged in the operation of asugar estate in (egros. <t was, therefore, a civil partnership as



distinguished from a mercantile partnership. Feing a civil partnership, by

the e!press provisions of articles l9- and 117> of the $ivil $ode, the

partners are not liable each for the whole debt of the partnership. The

liability is pro rata and in this case %edro <uo is responsible to plaintiff for

only one)half of the debt. The fact that the other partner, 5aime %alacios,had left the country cannot increase the liability of %edro <uo.)))))))))))))))))))))))

G.R. No. L-3146 September 14, 1907NICOLAS CO-PITCO,

plaintiff-appellee,vs.

PEDRO !LO,

defendant-appellant.FACTS: Florencio Yulo and Jaime Palacios were partners inthe

operation of a suar estate in !ictorias, "sland of #eros,and had commercial dealins

with a Chinaman named $%-Sianco, who furnished them with mone% and oods, and

usedto &u% their crop of

suar." n ' ( ) * , t h e d e f e n d a n t , P e d r o Y u l o , f a t h e r o f t h e s a i d Florencio, too+ chare of the latters interest in the a&ove-mentioned partnership,

and he &ecame a eneral partner withthe said Jaime Palacios in the same &usiness, and he

continuedas such partner until a&out the end of '(), dealin with $%-Sianco in

th e sa me manner as th e old part ne rs hip had deal t with the latter.Pedro Yulo failed to the

&alance due of ',*/.) pesos from thefirm hence $%-Sianco filed a case aainst

Yulo. The

l ow er c o u r t o r d e r e d t h e d e f e n d a n t t o p a % t h e e n t i r e a m o u n t w i t h interes

t."SS01: 23# Pedro Yulo shall pa% the entire amount for the partnership de&t.

4#56718$: 9ei n a civil partn ershi p, the partne rs are not lia&le each for the

whole de&t of the partnership. The lia&ilit% is

prorataand in this case Pedro Yulo is responsi&le to plaintiff for onl% one-half of the de&t. The fact

that the other partner, Jaime

Palacios, had left the countr% can not increase the lia&ilit% of PedroYulo.

T-e Fuen% o0 %-e $ou'% e5o/ 'eve'e )n Fuen% o'e'en 0)vo' o0 %-e +5)n%00 )n ))n% %-e e0en)n%,e'o u5o, 0o' %-e u o0819.2: +eo, -5++ne Cu''en$,/%- n%e'e% %-e'eon )% %-e ')%e o0 6 +e' $en% +e')nnu 0'o%-e 12%- ) o0 J)nu)', 19:, )n %-e $o% o0 %-e Cou'% o0 "'%In%)n$e. No $o% /55 e )55o/e %o e%-e' +)'% n %-$ou'%. So o'e'e.

)))))))))))))))))))))))))))))))))))))))))))))))))))))))))

G.R. No. ,1134$ De%e/ber 1$# 19ANTON'O C. GO5+'O,A6# T A,.# pla0nt0ffsappellants#vs.7AS('NGTON 8. S6C'*# T A,.# defendantsappellees.")$%# T)n Sn An )n Go<uo5) en%e'e n%o ) ene')5$oe'$)5 +)'%ne'-+ une' %-e +)'%ne'-+n)e T)n Sn An )n An%ono Go<uo5)P 0o' %-e +u'+oe o0 e)5n n 'e)5e%)%e. T-e)'eeen% 5oe u+on T)n Sn An %-e o5e)n)een% o0 %-e +)'%ne'-+ )00)'. T-e 50e%e o0%-e+)'%ne'-+ /) 0>e )% %en e)' )n %-e A'%$5e o0 Co*+)'%ne'-+ %+u5)%e %-)% n %-e even% o0e)%- o0 )n o0 %-e+)'%ne' e0o'e %-e e>+')%on o0 %-e %e', %-e +)'%ne'-+ /55no% e o5ve u% /55

e $on%nue %-e -e' o' )n o0 %-e e$e)e +)'%ne'.T-e +5)n%00 +)'%ne'-+ +u'$-)e 3+)'$e5 o0 5)n /-$- /)o'%)e %o L) ')n)P. Ano%-e' 46 +)'$e5 o0 5)n /e'e+u'$-)e



T)n Sn An n - nvu)5 $)+)$% /-$- -e)ue +)en% o0 ) o'%)e e% 0o' 3M.T-eo/n+)en% )n %-e )o'%7)%on /e'e )v)n$e u%vo)n Co.T)n Sn An e 5e)vn -/o/, Mon C-) n. T-e /o/ue<uen%5 e$)e %-e )n%')%'> o0 %-e e%)%e.u%vo Son)n Sn ee 05e %-e' $5) n %-e n%e%)%e+'o$een o0 T)n Sn An 0o' )v)n$e, n%e'e% )n

%)>e+) n )o'%7n )n $-)'n %-e' o5)%on %o L)')n)P.Mon C-) n 05e ) +e%%on/%- %-e +'o)%e $ou'% 0o' )u%-o'% %o e55 )55 %-e 49 +)'$e5 o0 5)n. S-e %-en o5 % %oS$+ )n Lee n$one')%on o0 3M )n o0 %-e venee)un +)en% o0 %-e $5) 05e u%vo Son )nSnee.B-en Go<uo5) 5e)'ne )ou% %-e )5e %o S$+ )n Lee, -e05e )+e%%on n %-e n%e%)%e+'o$een %o e% )e %-e o'e' o0 %-e +'o)%e $ou'% )++'ovn %-e )5e n o 0)' ) - n%e'e%ove'%-e +)'$e5 o0 5)n o5 /) $on$e'ne 'o)%e $ou'% )nnu55e %-e )5e e>e$u%e %-e)n%')%'>/'e+e$% %o %-e 6: n%e'e% o0 Go<uo5)ove' %-e +'o+e'%e. An%')%'> )++e)5e. e$on/)e% )e, -en$e %- +e%%on.Iue# 1! %-e 5o/e' $ou'% e'' n -o5n %-)% %-e /o/u$$eee-e' -u)n T)n Sn An n %-e o5e)n)een% o0 %-e +)'%ne'-+ u+on T)nH e)%- e2!BON%-e $onen% o0 %-e o%-e' +)'%ne' /) ne$e)'%o +e'0e$%%-e )5e o0 %-e +)'%ne'-+ +'o+e'%e %o

S$+)n Lee No.De5# 1! e. B-5e n %-e A'%$5e o0 Co*)'%ne'-+ )n%-e +o/e' o0 )%%o'nee>e$u%e Go<uo5) $on0e''eu+on T)n %-e e>$5uve )n)een% o0 %-e une, u$-+o/e'+'ee ) % u+on %'u% )n $on0en$e,

as a/ere personal r0)t tat ter/0nated upon Tan:sde/0se. T-e +'ovon n %-e )'%$5e %)%n %-)% n %-eeven% o0 e)%- o0 )n one o0 %-e +)'%ne' /%-n %-e1:e)' %e' o0 %-e +)'%ne'-+, %-e e$e)e +)'%ne' -)55e 'e+'een%e - -e'P%ould not ave referred to te /ana)er0al r0)t

ven %o T)n. T-e -e' o0 %-ee$e)e, neve' 'e+u)%n o' 'e0un %o e ounune' %-e ) +'ovon n %-e)'%$5e e$)e nvu)5+)'%ne' /%- Go<uo5) u+on T)nH ee. T- )n$%one une' A'%$5e222 une' %-e Coe o0 Coe'$e.2!No. S%')ne' e)5n /%- ) +)'%ne'-+ -)ve %-e '-%%o)ue,n %-e )en$e o0 'e%'$%ve $5)ue n %-e $o*+)'%ne'-+ )'eeen% %-)% eve' ene')5+)'%ne' -)+o/e' %o n %-e +)'%ne'-+ +e$)55 %-oe )$%n /%-o%en5e )u%-o'%. A5o, n+%e o0%-e +'ovon o0 A'%129 o0 %-e Coe o0 Coe'$e %o %-e e00e$% %-)% 0 %-e)n)een% o0 %-e ene')5+)'%ne'-+ -) no% een5%e +e$)5 )'eeen% %o )n o0 %-e ee', )55-)55 -)ve %-e +o/e'%o %)?e +)'% n %-e 'e$%on )n)n)een% o0 %-e $oon une, )n %-e ee'+'een% -)55$oe %o )n )'eeen% 0o' )55 $on%')$% o' o5)%on /-$- ) $on$e'n %-e )o$)%on,P

u$-o5)%on one +oe 5)/ on %-e +)'%ne' )on%-ee5ve, %-)% oe no% ne$e)'5)00e$% %-e v)5% o0 %-e )$% o0 ) +)'%ne' /-5e )$%n /%-n %-e $o+e o0 %-eo'n)' $ou'e o0 uneo0 %-e +)'%ne'-+ ) 'e)'%-' +e'on /%-ou% no%$e. T-e 5)%%e' ) '-%0u55)ue %-)% %-e$on%')$%n +)'%ne' /) u5 )u%-o'7e %o$on%')$% 0o' )n n e-)50 o0 %-e 0' )n %-)% -e /ou5no%o'n)'5 )$% %o %-e +'eFu$e o0 - $o*+)'%ne'.A5o, %-e'e$o' 0)5 %o $5oe %-)% Go<uo5) )e)no++o%on %o %-e )5e o0 %-e +)'%ne'-+ 'e)5% %o S$+)n Lee. On %-e $on%')', % )++e)' %-)% -eon5n%e'+oe - oFe$%on )0%e' %-e ee o0 $onve)n$e /) e>e$u%e )n )++'ove %-e+'o)%e $ou'%, )n$one<uen%5, - o++o%on $)e %oo 5)%e %o e e00e%ve.

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Gouoay Sy);acts?



• Tan *in An and Douiolay entered into a general commercialpartnership under the partnership name OTan *in An and AntonioDouiolayP for the purpose of dealing in real estate.• The agreement lodged upon Tan *in An the sole management of the partnership affairs.• The lifetime of the partnership was fi!ed at ten years and theArticles of $o)partnership stipulated that in the event of death of any of the partners before the e!piration of the term, thepartnership will not be dissolved but will be continued by the heirsor assigns of the deceased partner. Fut the partnership could bedissolved upon mutual agreement in writing of the partners.• Douiolay e!ecuted a D%A in favor of Tan *in An.

• The plaintiff partnership purchased 7 parcels of land which wasmortgaged to O3a /rbanaP as payment of %2G,000. Another #parcels of land were purchased by Tan *in An in his individual

capacity which he assumed payment of a mortgage debt for %7GI.• A downpayment and the amortiKation were advanced by utivoand $o.• The two obligations were consolidated in an instrument e!ecutedby the partnership and Tan *in An, whereby the entire #9 lots weremortgaged in favor of OFanco ipotecarioP• Tan *in An died leaving his widow, Iong $hai %in and four minorchildren. The widow subseuently became the administratri! of theestate.• Bepeated demands were made by Fanco ipotecario on the

partnership and on Tan *in An.• efendant *ing ee, upon reuest of defendant utivo *ons , paidthe remaining balance of the mortgage debt, the mortgage wascancelled• utivo *ons and *ing ee filed their claim in the intestateproceedings of Tan *in An for advances, interest and ta!es paid inamortiKing and discharging their obligations to O3a /rbanaP andOFanco ipotecarioP• Iong $hai %in filed a petition with the probate court for authority tosell all the #9 parcels of land. *he then sold it to *ycip and 3ee in

consideration of %7>I and of the vendees assuming payment of the claims filed by utivo *ons and *ing ee.• 3ater, *ycip and 3ee e!ecuted in favor of <nsular evelopment adeed of transfer covering the #9 parcels of land.• &hen Douiolay learned about the sale to *ycip and 3ee, he filed apetition in the intestate proceedings to set aside the order of theprobate court approving the sale in so far as his interest over theparcels of land sold was concerned.• %robate court annulled the sale e!ecuted by the administratri! wMrespect to the 0J interest of Douiolay over the properties• Administratri! appealed.

• The decision of probate court was set aside for failure to include



the indispensable parties. (ew pleadings were filed• The second amended complaint prays for the annulment of thesale in favor of *ycip and 3ee and their subseuent conveyance to<nsular evelopment. • The complaint was dismissed by the lower courthence this appeal.

<ssue?18 id the lower court err in holding that the widow succeeded herhusband Tan *in An in the sole management of the partnershipupon Tans deathL28 &'( the consent of the other partners was necessary to perfectthe sale of the partnership properties to *ycip and 3eeLeld?18 es. &hile in the Articles of $o)%artnership and the power of attorney e!ecuted by Douiolay conferred upon Tan the e!clusivemanagement of the business, such power premised as it is upon

trust and confidence, was a mere personal right that terminatedupon Tans demise. The provision in the articles stating that Oin theevent of death of any one of the partners within the 10 year termof the partnership, the deceased partner shall be represented byhis heirsP could not have referred to the managerial right given to Tan. The heirs of the deceased, by never repudiating or refusing to bebound under the said provision in the articles became individualpartners with Douiolay upon Tans demise. This is sanctionedunder Article 222 under the $ode of $ommerce. owever, theminority of the heirs is not a bar to the application of that clause in

the articles of co)partnership.28 (o. *trangers dealing with a partnership have the right to assume,in the absence of restrictive clauses in the co)partnershipagreement that every general partner has power to bind thepartnership specially those acting with ostensible authority. Also, inspite of the provision of Art 129 of the $ode of $ommerce to theeffect that Oif the management of the general partnership has notbeen limited by special agreement to any of the members, all shallhave the power to take part in the direction and management of the common business, and the members present shall come to anagreement for all contracts or obligations which may concern theassociation,P such obligation is one imposed by law on the partnersamong themselves, that does not necessarily affect the validity of the acts of a partner while acting within the scope of the ordinarycourse of business of the partnership as regards third personswithout notice. The latter may rightfully assume that thecontracting partner was duly authoriKed to contract for and inbehalf of the firm and that he would not ordinarily act to thepre"udice of his co)partners.Also, the records fail to disclose that Douiolay made anyopposition to the sale of the partnership realty to *ycip and 3ee.

'n the contrary, it appears that he only interposed his ob"ectionsafter the deed of conveyance was e!ecuted and approved by the



probate court, and conseuently, his opposition came too late tobe effetive6ii8 Admission or representation made by any partner concerningpartnership affairsis evidence against the partnership

6iii8 (otice to any partner of any matter relating to partnership affairs, andtheknowledge of the partner acting in the particular matter, acuired while apartner orthen present to his mind, and the knowledge of any other partner whoreasonablycould and should have communicated it to the acting partner, operate asnotice toor knowledge of the partnership, e!cept in the case of fraud on thepartnership,committed by or with the consent of that partner6iv8 &here, by any wrongful act or omission of any partner acting in theordinarycourse of the business of the partnership or with the authority of co)partners, loss orin"ury is caused to any person, not being a partner in the partnership, orany penaltyis incurred, the partnership is liable therefor to the same e!tent as thepartner soacting or omitting to act.6v8 The partnership is bound to make good the loss?

618 &here one partner acting within the scope of his apparent authorityreceives money or property of a third person and misapplies it@ and628 &here the partnership in the course of its business receives money orproperty of a third person and the money or property so received ismisapplied by any partner while it is in the custody of the partnership d.Mu*ua oba*o+ o ar*+er!6i8 %artners shall render on demand true and full information of all thingsaffectingthe partnership to any partner or the legal representative of any deceasedpartneror of any partner under legal disability.

G. ;iduciary utiesa. (u*y o (e+e? ;or damages caused to the businessQ very partner is responsible to the partnership for damages suffered byitthrough his faultQ he cannot compensate them with the profits andbenefits which he mayhave earned for the partnership by his industry.Q owever, the courts may euitably lessen this responsibility if throughthe partner+s e!traordinary efforts in other activities of the partnership,unusual profits have been realiKed.

b. uty to aou+*? ;ull accounting to the partnership for partnershiptransactions



Q very partner must account to the partnership for any benefit and holdas trustee for it any )ro*! derived by him 2*ou* *e o+!e+* o *eo*er )ar*+er! from any transaction connected with the 6;$38 formation,conduct, or liquidation of the partnership or from any use by him of itsproperty.

c. (u*y o Loya*y&Q The capitalist partners cannot engage for their own account in a+yo)era*o+ 2 ! o *e >+4 o bu!+e!! + 2 *e)ar*+er!)! e+ae4, unless there is a stipulation to the contrary.Q Any capitalist partner violating this prohibition !a br+ *o *eo//o+ u+4! a+y )ro*! aru+ *o / ro/ ! *ra+!a*o+! ,and !a )er!o+ay bear a *e o!!e!.

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=)$on)5 vs. Nat0onal C0ty Ban;=ACONAL vs.

NATIONA C'T6 BAN< O" NEB ORM L*991 U ) 21, 196 U )') U e% 0o'Reve/ Ce'%o')' e%%one'# )u5 =)$on)5 e% )5.Re+onen%# Nat0onal C0ty Ban; o0 Ne/ o'? u$? Su)'#")$%# S%)?no$e ) +)'%ne'-+ 0o'e ) Co%), Go'$e, Mu? )n G)vno.I% /) ene 'e%')%on %-e SEC ue %o ) $on0uon e%/een %-e +)'%ne'-+)n C)'n)5 R)%%)n. C)'n)5 R)%%)n %-e une n)e o' %5e ue S%)?no$e. ) Co%) )n Go'$e )'e %-e ene')5 +)'%ne' o0 C)'n)5 R)%%)n.

=o'eove', ) Co%) %-e )n)n +)'%ne' o0 C)'n)5 R)%%)n. S%)?no$e -) )nove')0% )$$oun% /%- N)%on) C0ty Ban;, /-$- /) 5)%e' $onve'%e n%o )n o'n)'5o)n ue %-e +)'%ne'-+H 0)5u'e n +)n % o5)%on. T-e o'n)' 5o)n /)e$u'e ) $-)%%e5 o'%)e ove' 3 ve-$5e. u'n %-e u%en$e o0 %-e 5o)n,%-e ve-$5e /e'e o5 %o =)$on)5 )n 5)%e' on, =)$on)5 o5 2 o0 %-e 3ve-$5e %o Gon7)5e. T-eban; 'ou-% )n )$%on 0o' 'e$ove' o0 % $'e% )n0o'e$5ou'e o0 %-e $-)%%e5 o'%)e u+on 5e)'nn o0 %-ee %')n)$%on.

De5# B-5e )n un'e%e'e $oe'$)5 +)'%ne'-+ -) no Fu'$)5 +e'on)5%,neve'%-e5e, /-e'e %/o o' o'e +e'on )%%e+% %o $'e)%e ) +)'%ne'-+ 0)5n %o$o+5 /%- )55 %-e 5e)5 0o')5%e, %-e 5)/ $one' %-e ) +)'%ne' )n %-e)o$)%on ) +)'%ne'-+ n o 0)' ) % ) 0)vo')5e %o %-' +e'on, 'e)on o0%-e e<u%)5e +'n$+5e o0 e%o++e5. B-e'e ) +)'%ne'-+ no% u5 o')n7e -) een'e$on7e ) u$- n % e)5n /%- $e'%)n +e'on, % -)55 e $one'e )+)'%ne'-+ e%o++e5P )n %-e +e'on e)5n /%- % )'e e%o++e 0'o enn% +)'%ne'-+ e>%en$e.

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AR%ICL" 185AR%N"R =< "S%O"L

G.R. No. L-991. May 1, 1956A'L MAC(ONAL(, "% AL., Petitioners, !. %H"



NA%IONAL CI%< =AN? OF N"@ <OR?, Respondent .;acts? Alan &. Dorcey, 3ouis ;. da $osta, 5r., &illiamIusik and mma Fadong Davino formed a partnershipnamed as *TA*<I<('$. *TA*<I<('$ was deniedregistration before the *ecurities and !change

$ommission. espite this, its partners thru another nameO$AB<(A3 BATTA(P were still conducting their businessin behalf of the *TA*<I<('$. %rior to 5une 7, 19#9,Defendant *tasikinocey had an overdraft account of %,17#.92 with The (ational $ity Fank of (ew ork, aforeign banking association duly licensed to do business in the %hilippines.;ailing to pay pay its debt, they mortgagedsome of its vehicles to the said bank in the name of *TA*<I<('$. The mortgages were registered in theBegister of eeds of BiKal.owever, during the e!istence of the debt obligation,*TA*<I<('$ sold the mortgaged vehicles to the petitioner,%aul =aconald. espite of the knowledge of the priormortgages, the latter sold to one Fen"amin DonKales thevehicles. /pon knowing of the said sale, (ational Fank filed anaction against Stasikinocey and its alleged partners orcey and Da Costa, as !ell as Paul "cDonald and #en$aminon%ales, to recover its credit and to foreclose thecorresponding chattel mortgage. The $;< sentenced the partners of *TA*<I<('$, DonKalesand =aconald "oint and severally liable to the (ational Fank.

=aconald and DonKales appealed on certiorari before the*upreme $ourt.

<ssue? &hther or not an unregistered partnership can bind athird person in an obligation incurred against another person. *

eld? &hile an unregistered commercial partnership has no "uridical personality, nevertheless, where two or more personsattempt to create a partnership failing to comply with all thelegal formalities, the law considers them as partners and the

association is a partnership in so far as it is a favorable to thirdpersons, by reason of the euitable principle of estoppel. <n 5o$hung $hang vs. %acific $ommercial $o., #G %hil., 1#G, it washeld Othat although the partnership with the firm name of RTeck*eing and $o. 3td., could not be regarded as a partnership de "ure, yet with respect to third persons it will be considered apartnership with all the conseuent obligations for the purposeof enforcing the rights of such third persons.P a $osta andDorcey cannot deny that they are partners of the partnership*tasikinocey, because in all their transactions with the

Bespondent they represented themselves as such. %etitioner=conald cannot disclaim knowledge of the partnership



*tasikinocey because he dealt with said entity in purchasingtwo of the vehicles in uestion through Dorcey and a $osta.As was held in Fehn =eyer H $o. vs. BosatKin, G %hil., 0,where a partnership not duly organiKed has been recogniKedas such in its dealings with certain persons, it shall be

considered as Opartnership by estoppelP and the personsdealing with it are estopped from denying its partnershipe!istence. The sale of the vehicles in uestion being void as to%etitioner =conald, the transfer from the latter to %etitionerFen"amin DonKales is also void, as the buyer cannot have a better right

than the seller

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Navarro vs. Escobido, GR 153788, November 27, 2009

(Provisional Remedies: Replevin: Prior demand is not a condition precedent)

Facts: Private respondent (Karen Go) files a complaint with a prayer for the issuance

of a writ of replevin against petitioner (Navarro) for the seizure of 2 motor vehicles

under lease agreement. Petitioner maintains among others in the case at bar that the

complaints were premature because no prior demand was made on him to comply

with the provisions of the lease agreements before the complaints for replevin were

filed.

Issue: WON prior demand is a condition precedent to an action for a writ of replevin.

Held: No. Petitioner erred in arguing that prior demand is required before an action

for a writ of replevin is filed since we cannot liken a replevin action to an unlawful

detainer.

For a writ of replevin to issue, all that the applicant must do is to file an affidavit and

bond, pursuant to Section 2, Rule 60 of the Rules, which states:

Sec. 2. Affidavit and bond.

The applicant must show by his own affidavit or that of some other person whopersonally knows the facts:

(a) That the applicantis the ownerof the propertyclaimed, particularly describing it, or

is entitled to the possessionthereof;

(b) That the property is wrongfullydetainedby the adverseparty, alleging the cause of

detention thereof according to the best of his knowledge, information, and belief;

(c) That the property has not been distrained or taken for a tax assessment or a

fine pursuant to law, or seized under a writ of execution or preliminary attachment, or



otherwise placed under custodialegis , or if so seized, that it is exempt from such

seizure or custody; and

(d) The actual market value of the property.

The applicant must also give a bond, executed to the adverse party in double thevalue of the property as stated in the affidavit aforementioned, for the return of the

property to the adverse party if such return be adjudged, and for the payment to the

adverse party of such sum as he may recover from the applicant in the action.

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Navaro vs. s%ob0do GR No. 1="33# Nove/ber 2"# 2$$9"ACTS# MARGO ENTERRISES n %-e uneo0, )on o%-e',un )n e55n o%o' ve-$5e, n$5un -)u5n %'u$? )n

o%-e' -e)ve<u+en%.< a r e n G o o 0s /a r r 0e d to G le n G o f 0 l e d a % o /p l a 0n t a)a0nstRo)er Navarro for te %ause of a%t0on based on teleas ea ) r e e /e n t e n te r e d 0n to b e t e e n t e p a r t 0 e s .T - e u F e $ % o 0 % - e $on%'ove' %-e "uo oun%e /%- $')ne ve-$5e.N)v)''o e5ve'eun%o+ 5 ) n % 0 0 6 + o % ) % e $ - e $ ? n % - e ) o u n % o 0 6 6 , 3 32 e ) $ - / - $ - ' e + ' e e n % % - e ' e n % )5 o 0 % - e v e - $5 e . n 0 o ' %u n ) %e5 , 2 $- e$ ? /e 'e -one' %-e )n?. M)'en Go e)ne %-e) 5)n$e /- $- /) ue))n% N)v)'o o' %o 'e%u'n %-e ve-$5e. A e$on

$o+5)n% /) %-en 05e M)'en Go /-$- )55ee )5o% %-e )e)55e)%on $on%)ne n %-e0'% $o+5)n% e>$e+% %-e uFe$% ve-$5e )n %-e)%e. N)v)'o %-en ue 3 +o% )%e $-e$? n %-e )oun% o0 1::,:::e)$- u % %-e %- ' $-e$? /) -ono'e 0o' nu00$en$ o0 0un. On O$%oe'12 )n 14, 1998, %-eRTC ue n o%- $)e /'% o0 'e+5evn, ) ) 'eu5% %-eS-e'00 e7e %-e2 ve - $ 5 e )n e 5 ve ' e %- e ) e %o %- e+ o e o n o 0 M ) ' e n G o . I n N)v)'oH o%on o%- $)e /e'e $ono5)%e.In % ) 2::8 o'e' %-eRTC e %-e $o+5)n% on %-e 'oun %-)%%-e $o+ 5) n % %)%e no $)ue o0 )$%on. M)'en Go 05e ) =R /-$- /) ')n%e

%-e RTC. RTCene N)v)'oH =R. N)v)'o 05e ) +e%%on 0o' $e'%o')' /%- %-eCA u% %-eCA )00'e %-e RTCH e$on. N)v)'oH =R /) 5?e/e een ene.In- +'een% +e%%on,

Navaro alle)ed tat te %o/pla0nts ere pre/aturebe % a u s e n o p r 0 o rde /a nd a s /a de on 0 / to %o /p ly 0 t t eprov0s0ons of telease a)ree/ents before te %o/pla0nts for replev0nere f0led.ISSE#B-e%-e' +'o' e)n ne$e)' e0o'e ) /'% o0 'e+5evn $)neueDEL#!or a r0t of replev0n to 0ssue# all tat te appl0%ant /ust do 0sto f0le anaff0dav0t and bond# pursuant to Se%t0on 2# Rule $ of teRules





T')5 $ou'%# C5)'n $onv$%e /e%)0) & o'e'e %o 'e%u'n 12.:: %o L)'n)5on /5)%%e'H -)'e o0 %-e +'o0% )oun%n %o 3:.:.'ssues Rat0o&1. 7ON Clar0n alone ou)t to return ,ar0n:s 0nvest/ent prof0tsare. NO.

)'%ne'-+# $on%')$% 0o'e /-en 2 o' o'e +e'on n %-ee5ve%o $on%'u%eone, +'o+e'%, o' nu%' %o ) $oon 0un /%-e n%en%ono0 vn %-e+'o0% )on %-ee5ve.

L)'n nve%e - one n %-e '?ene0% o0 %-e une o0 un& e55n)noe. Even 0 %-e $)+%)5 /) 'ee've & on5 %-e uu0'u$% /)$onvee, %-e'e+on5% %o 'e%u'n %-e $)+%)5 %o - /ou5 evo5ve u+on%-e +)'%ne'-+ & no% onone o0 - 3 +)'%ne'. In 0)$%, 0 one o0 %-e 3 -ou5e 'e+on5e, % /ou5 e T)'u0o' -e 'e$eve %-e one 0'o L)'n.2 . 7 O N , a r 0 n : s r e / e d y 0 n % a s e e a n t s t o r e % o v e r t e/ o n e y e 0nvested 0s estafa a %r0/0nal a%t0on. NO.

D 'ee /ou5 e ) $v5 one )'n 0'o %-e +)'%ne'-+$on%')$% 0o' ) 5<u)%ono0 %-e +)'%ne'-+ & ) 5ev on % )e%, 0 )n.

E% ) 0 ) ( en ) 5 Co e A ' % . 3 no . ! # )n one /-o %o %-e +'eFu$e o0)no%-e', -)55 )++'o+')%e)++5 )n one, oo o' )n?n o0 +e'on)5+'o+e'% /$ %-e ) -)ve 'e$eve ) ) e+o% on$oon0o' )n %')%on o' n )n o %-e' $-)')$%e' + 'ou$n %-eo5)%on %oe5ve''e%u'n %-e )e. I% oe no% n$5ue one 'e$eve 0o' ) +)'%ne'-+,o%-e'/e 0 %-e +)'%ne'-+ u00e'e 5oe, % (+)'%ne'-+!/ou5 e 5)5e 0o'e%)0) 0o' /$ % /ou5 e u00$en% %o )'ue %-)% %-e+)'%ne'-+ -)'e$eve %-e one une' o5)%on %o 'e%u'n %.(old0n)&C5)'n )$<u%%e. E%)0) $)e e /o +'eFu$e %o %-e n%%u%ono0 ) +'o+e'$v5 )$%on********************************

L**o+ ! H;acts?• 3itton sold and delivered to $eron, one of the managing partners of ill H $eron, a certain number of mining claims.• Fy virtue of said transaction, $eron delivered to plaintiff adocument 6receipt8 acknowledging that he received from 3ittoncertain share certificates of Fig &edge =ining $ompany totaling%1->0.• $eron paid to 3itton %1,1G0 leaving a balance of %>20

• 3itton was unable to collect the unpaid balance from ill H $eronor from its surety• 3itton filed a complaint against the defendants for the recovery of the balance• The court ordered $eron to personally pay the amount claimed andabsolved the partnership, ill and the surety.• $A affirmed the decision of the court.<ssue?id the transaction bind the partnership or $eron onlyLeld?

&hile the transaction was entered into by $eron, it bound the partnership.Bobert ill had the same power to buy and sell@ that in said partnership illas well as $eron made the transaction as partners in eual parts@ that on



the date of the transaction, ;ebruary 1#, 197#, the partnership betweenill and $eron was in e!istence. After this date, or on ;ebruary 19th, ill H$eron sold shares of the Fig &edge@ and when the transaction was enteredinto with 3itton, it was neither published in the newspapers nor stated inthe commercial registry that the partnership ill H $eron had beendissolved.

The *$ dissented from the view of the $A that for one of the partners to

bind the partnership the consent of the other is necessary. Third persons,like the plaintiff, are not bound in entering into a contract with any of thetwo partners, to ascertain whether or not this partner with whom thetransaction is made has the consent of the other partner. The public neednot make inuires as to the agreements had between the partners. <tsknowledge, is enough that it is contracting with the partnership which isrepresented by one of the managing partners.

The second paragraph of the articles of partnership of ill H $eron reads inpart?*econd? That the purpose or ob"ect for which this copartnership isorganiKed is to engage in the business of brokerage in general,such as stock and bond brokers, real brokers, investment securitybrokers, shipping brokers, and other activities pertaining to thebusiness of brokers in general.

The kind of business in which the partnership ill H $eron is to engagebeing thus determined, none of the two partners, under article 170 of the$ode of $ommerce, may legally engage in the business of brokerage ingeneral as stock brokers, security brokers and other activities pertaining tothe business of the partnership. $eron, therefore, could not have enteredinto the contract of sale of shares with 3itton as a private individual, but asa managing partner of ill H $eron

The stipulation in the articles of partnership that any of the two managingpartners may contract and sign in the name of the partnership with theconsent of the other, undoubtedly creates an obligation between the twopartners, which consists in asking the other+s consent before contractingfor the partnership. This obligation of course is not imposed upon a thirdperson who contracts with the partnership. (either is it necessary for thethird person to ascertain if the managing partner with whom he contracts

has previously obtained the consent of the other. A third person may andhas a right to presume that the partner with whom he contracts has, in theordinary and natural course of business, the consent of his copartner@ forotherwise he would not enter into the contract. The third person wouldnaturally not presume that the partner with whom he enters into thetransaction is violating the articles of partnership but, on the contrary, is acting in accordancetherewith. And this finds support in the legalpresumption that the ordinary course of business has been followed.<f we are to interpret the articles of partnership in uestion by holding thatit is the obligation of the third person to inuire whether the managingcopartner of the one with whom he contracts has given his consent to saidcontract, which is practically casting upon him the obligation to get suchconsent, this interpretation would, in similar cases, operate to hindereffectively the transactions, a thing not desirable and contrary to the

nature of business which reuires promptness and dispatch one the basisof good faith and honesty which are always presumed..

Documents

Pideli to Litton