partnership and agency digests

8/11/2019 Partnership and Agency Digests

1/28

PARTNERSHIP Digests Atty. CochingyanTAN SEN GUAN & CO. VS. PHILIPPINE TRUST

CO.

Facts : Plaintif Tan Sen Guan & Co. secured a judgment or a sum o P21,426 against t e !indoroSugar Co. o " ic t e P ili##ine Trust is t e trustee.

T e #laintif entered into an agreement "it t ede endant P ili##ine Trust Co. " erein t e ormerassigned, trans erred, and sold to t e latter t e ullamount o said judgment against !indoro Sugar Co.

toget er "it all its rig ts t ereto and t e latterofered satis actor$ consideration t ereto. T eagreement urt er sti#ulated t at u#on signing o t eagreement, P il Trust s all #a$ Tan Sen t e sum oP% ' s ould t e !indoro Sugar (e sold or itso"ners i# (e trans erred, an additional P1 ,#esos "ill (e #aid to Tan Sen u#on #er ection o t esale' in case an$ ot er creditor o !indoro Sugaro(tains in t e #a$ment o is credit a greater#ro#ortion t an t e #rice #aid to Tan Sen, t e P il

Trust s all #a$ to t e latter " ate)er sum ma$ (enecessar$ to (e #ro#ortioned t e claim o t ecreditor. *o"e)er, i t e !indoro Sugar is sold to an$#erson " o does not #a$ an$t ing to t e creditors or#a$ t em e+ual or less t an #ercent o t eirclaim, or s ould t e creditors o(tain rom ot ersources t e #a$ment o t eir claim e+ual to or lesst an #ercent, t e P il Trust "ill onl$ #a$ to TanSent e additional sum o P1 , u#on t e sale ortrans er o t e !indoro Sugar as a(o)e stated. T e#ro#erties o !indoro Sugar "ere later on sold at#u(lic auction to t e -oman Cat olic rc (is o# o!anila and (ase on t e agreement #laintif Tan Sen(roug t suit against de endant P il Trust or t e sumo P1 , .

De en!ant"s a#g$%ent : /nl$ a #ortion o t e!indoro Sugar0s #ro#erties "ere sold.

CFI: (sol)ed t e de endant on t"o grounds: a int e contract, it "as onl$ (ound as a trustee and notas an indi)idual' ( t at it as not (een #ro)ed t atall t e #ro#erties o t e !indoro Sugar ad (eensold.

Iss$es

1 3 5 t e de endant is not #ersonall$res#onsi(le or t e claim o t e #laintif(ased on t e deed o assignment (ecauseo a)ing e ecuted t e same in its ca#acit$as trustee o t e #ro#erties o t e !indoroSugar.

2 3 5 all t e #ro#erties o t e !indoro Sugar"ere sold at #u(lic auction to t e -omanCat olic rc (is o# o !anila.

He'! : SC re)ersed C780s ruling.

1 T e P il Trust Com#an$ in its indi)idual ca#acit$is res#onsi(le or t e contract as t ere "as noe #ress sti#ulation t at t e trust estate and nott e trustee s ould (e eld lia(le on t e contractin +uestion. 5ot onl$ is t ere no e #resssti#ulation t at t e trustee s ould not (e eldres#onsi(le (ut t e 93 ere ore0 clause o t econtract states t e judgment "as e #ressl$assigned in a)or o P il Trust Com#an$ and notP il Trust Com#an$, t e trustee. 8t t ere ore

ollo"s t at a##ellant ad a rig t to #roceeddirectl$ against t e P il Trust on its contract and

as no claim against eit er !indoro Sugar or t etrust estate.

2 i(it ; t e certi


2/28

PARTNERSHIP Digests Atty. Cochingyan1 3 5 t e #laintif is not t e real #art$ in

interest res#ecting t e claim or P12 , .

He'! : SC aArmed t e a##ealed judgment.

1 8n t is jurisdiction, "e a)e our o"n legal#ro)ision " ic in su(stance difers rom t e

merican la". rt. 22 o t e 5CC #ro)idest at i a #ro#ert$ is insured and t e o"ner

recei)es t e indemnit$ rom t e insurer t esame is deemed su(rogated to t e rig ts ot e insured against t e "rongdoer and i t eamount #aid ($ t e insurer does not ull$co)er t e loss, t en t e aggrie)ed #art$ is t eone entitled to reco)er t e dee#t secret rom #i anio Gome@, andt at, a)ing no >no"ledge o it, e could not a)eacce#ted it (e ore t e sti#ulation "as re)o>ed. ndt at e as t e (ene


3/28

PARTNERSHIP Digests Atty. Cochingyan

SALAO VS. SALAO

7acts: ter t e deat o Ialentina 8gnacio, er estate"as administered ($ er daug ter m(rosia. 8t "as#artitioned e trajudicall$ and t e deed "as signed ($

er our legal eirs namel$ er c ildren lejandra, Juan, and m(rosia and Ialentin Salao, inre#resentation o is deceased at er, Patricio. T e

Calunuran e. T is is not a case " ere tosatis $ t e demands o justice it isnecessar$ to consider t e Calunuran


4/28

PARTNERSHIP Digests Atty. CochingyanDe en!ant"s a#g$%ent : 7iled a motion to dismiss.

T e #laintifs0 cause o action is (arred ($ t e statuteo limitations (ecause t e deed o assignment "asrecorded in t e -egistr$ o Pro#ert$ and t ato"ners i# o)er t e #ro#ert$ (ecame )ested in im($ ac+uisiti)e #rescri#tion ten $ears rom itsregistration in is name o 7e(. 21, 1L4 .

RTC"s #$'ing : -uled in a)or o de endant !a iminoCarantes stating t at since an action (ased on raud

#rescri(es in our $ears rom t e disco)er$ o t eraud, and in t is case t e raud allegedl$#er#etrated ($ de endant must deemed to a)e(een disco)ered on marc 16, 1L4 " en t e deedo assignment "as registered, t e #laintif0s rig t oaction ad alread$ #rescri(ed " en t e$ e,suc #erson is ($ o#eration o la" considered atrustee o an im#lied trust or t e (ene


5/28

PARTNERSHIP Digests Atty. Cochingyane+uit$ (ound to recon)e$ t e su(ject land to t ecestui que trust , t e !unici#alit$ o Iictorias.

)ARIANO VS. DE VEGA

Facts S#ouses Dr(ano and Pangani(an o"ned asconjugal #ro#ert$ 2L unregistered #arcels o landduring t eir li etime. 3 en Dr(ano died, iscom#ulsor$ eirs "ere t e c ildren o Gaudencia, isc ild "it Pangani(an, " o are #etitioners in t iscase, and t"o ot er legitimate c ildren, is c ildren"it is second "i e, " o are t e #ri)ateres#ondents in t is case.

Petitioners ing#ossession o t e " ole conjugal #ro#ert$ and t att e latter a##ro#riated to t emsel)es t e #roductscoming rom t e #arcels o land. T e court ruled in

a)or o t e #ri)ate res#ondents claiming t at t eaction o t e #etitioners as alread$ #rescri(ed ort e reason t at an im#lied or constructi)e trust

#rescri(es in ten $ears.

Iss$e 3 5 t ere is an im#lied or constructi)e trustgranted ($ t e #etitioners in a)or o t eres#ondents. 5o.

He'! T e Court ruled t at t e #resent case does notall under t e rules o im#lied trust. Considering t eact t at t e #arties in t is case in erited t e landrom t e same ancestor, Dr(ano, (ot #arties are

clearl$ coHo"ners o t e dis#uted #ro#erties. T iscase is t ere ore go)erned ($ t e rules on coHo"ners i#. Dnder t e ci)il code, #rescri#tion doesnot run against a coHo"ner or a coH eir so long as ee #ressl$ or im#liedl$ recogni@es t e coHo"ners i#.

8n )ie" o t eir lac> o a clear re#udiation o t e coHo"ners i#, #ri)ate res#ondents cannotac+uire t e s are o t e #etitioners ($ #rescri#tion.

HEIRS OF CANDELARIA VS. RO)ERO

Facts Parties to t is case are t e eirs o milioCandelaria as #laintif and =uisa -omero, and t e

eirs o =ucas as de endants.

milio and =ucas Candelaria (oug t a lot onan installment (asis. =ucas #aid t e ind o trust "as createdO #ress orim#lied trustO 8m#lied trust.

He'! 3 ere t e grantee ta>es t e #ro#ert$ underan agreement to con)e$ to anot er on certainconditions, a trust results or t e (eneno"ledging t e #resence o trust, t e #laintif0saction cannot (e said to a)e (een (arred ($ la#seo time. T e case is t ere ore remanded or urt er#roceedings.

LAUREANO VS. STEVENSON

Facts 8n 1L12, 7eli =aureano sold to ugenioila$co a #iece o #ro#ert$ situated in t e Cit$ o

8loilo, and suc land "as t en registered in t e

latter0s name. djoining suc #ro#ert$ "as anot er#ro#ert$ (elonging to =aureano.

3 en t e cadastral sur)e$ "as initiated in 8loilo in1L14, ila$co made #ro#er re#resentations toconno"n not ing o it.

/n June 1L22, =aureano


6/28

PARTNERSHIP Digests Atty. CochingyanIss$e 3 en #ro#ert$ is ac+uired t roug mista>e,can t e real o"ner reco)er suc #ro#ert$ ($ )irtue o im#lied trustO

T#ia' Co$#t Since t e creditors "ere not #arties tot e action, t e cancellation o t e annotations on t ecertienl$ registered in t e name o ila$co' and

. T e court did not a)e jur isdiction tocone.

GON3ALES 5. IAC

Facts T e land in dis#ute is registered in t e nameo 7austo So$. 8n 1L41, 7austo sold 2% s+. m. to7rancisco =andingin. 8n 1L%4, #ursuant to a ;eed o;onation e ecuted ($ 7austo, ntonio So$ son o7austo and Gregoria !iranda "i e sold 24 s+. m.to Juanito Gon@ales and Coronacion Ganaden. 8n

Januar$ 1L6 , 7austo sold anot er 24 s+. m. toGon@ales and Ganaden and t"o da$s later, a TCT "asissued in a)or o Gon@ales, indicating is s are ascoHo"ner o 4B s+. m. and 7austo So$, 24 s+. m. 8n1L6%, 7austo sold anot er 14 s+. m. to t e Gon@alesand Ganaden.

#ril 1L6%, -es#ondents -osita =o#e@, Ga)inoCa$a($a(, gueda and 7eli#a D(ando, Pedro Soriano,

Teosidia =o#e@ and 7ederico Eallesteros nieces andne# e"s o 7austo


7/28

PARTNERSHIP Digests Atty. Cochingyanomestead a##lication o)er t e land and a ree

#atent "as issued in 1L%6. n /CT "as issued in1L6 . 8n 1L62, Iioleta and us(and, =ino o(tained aloan rom P5E ($ e ecuting a mortgage on t e land," ile *omero da@a, (rot er o Iioleta remainedadministrator o t e same.

8n 1L 1, *oracio in)ited is (rot ers and sisters or aamil$ gat ering " ere e as>ed Iioleta to sign a

;eed o 3ai)er "it res#ect to t e #ro#ert$ in

Sinono>. T e ;eed stated t at t e land "as o"ned incommon ($ Iioleta and *oracio e)en t oug t e/CT "as in er name onl$. T e ;eed also #ro)ided

or t e "ai)er, trans er and con)e$ance o Iioleta to*oracio o o t e #ro#ert$ and its im#ro)ements.Iioleta and *oracio signed t e ;eed "it *omero asa "itness.

e" mont s later, Iioleta and us(and =ino ,alt oug its issuance is attended "it raud.*o"e)er, an action or recon)e$ance is still a)aila(le

or t e aggrie)ed #art$ i t e #ro#ert$ as not $et#assed to an innocent #urc aser or )alue. T is ise actl$ " at #laintif as done.

Plaintif as not (een a(le to #ro)e raud andmisre#resentation (ecause o t e trial courtdismissal. 3 ile #laintif is not t e Mo"nerN o t eland, so t at, strictl$ s#ea>ing, e as no #ersonalit$

to es t e doctrine o im#lied trust under A#t. 9:;en: eac "ould get P1, B%. %.

T e #roject o #artition as "ell as t e inter)ention o Timoteo as guardian o t e t at t e case (e remanded to t e lo"er court or t edetermination and adjudication o t eir rig t uls ares.

*o"e)er, due to t e act t at t e #laintifs sle#t ont eir rig ts, t e courts can no longer aford t emrelie

VARSIT4 HILLS( INC 5 NAVARRO

Facts T e #resent action (egan rom a #re)ious ci)ilcase " erein a #etition "as


9/28

PARTNERSHIP Digests Atty. Cochingyanrejected t ere rom and t eir ouses demolis ed in1L 4 t roug a "rit o e ecution. 8n 1L14, t ede endants Tuason ad o(tained a decree o registration co)ering %,4 ectares and t at t e$

ad raudulentl$ and insidiousl$ included #laintif0sland in t e area co)ered ($ t e Certie and alse tec nical descri#tions. DPet al. as su(se+uent ac+uirers " ose titles arederi)ed rom t e original raudulent certie"ise (e annulled.

*erein Petitioners contend t at t e decision in a ci)ilcase " erein t e -es#ondents "ere declared as"it out title to t e land and ejected ($ a "rit o e ecution "as aArmed ($ t e Su#reme Court. T ePetitioners contend in t e #resent case t at t ecauses o action a)erred ($ t e -es#ondents "ere(arred ($ t e =- and t e statute o limitations o)er%1 $ears a)ing ela#sed since t e decree o registration "as issued, (arred ($ lac es as 2 $ears

a)e ela#sed since t e ejectment and t at t e courtad no jurisdiction to re)ie" and re)ise t e decree o

registration. T e$ also maintain as aArmati)ede enses t at t e$ ad in #ossession or o)er $ears o t e land t us ac+uiring title ($ ac+uisiti)e#rescri#tion and t at claims or o"ners i# "eree tinguis ed ($ t e decree and t at t e$ are#urc asers or )alue and in good ait o t e landsstanding in t eir names. motion to dismiss "asno"ing t at #etitioners "ere also

is orced eirs. T e$ "ere a(le to cause t e trans ert e certi to annul t e e traHjudicial settlement as "ell as

a)e t eir s ares in t e said #ro#erties recon)e$edto t em.

Contentions ;e endants argue t at Placida deGu@man "as not entitled to s are in t e estate o!arcelo as s e "as an illegitimate c ild and t at t eaction o t e Petitioners is (arred ($ t e statute olimitations.

R$'ings

TRIAL COURT: T e trial court dismissed t e casea ter


10/28

PARTNERSHIP Digests Atty. Cochingyan8gnacio Gerona as "ell as !aria Conce#cion attainedt e age o majortit$ in 1L4B t us ad 4 $ears romdate o disco)er$ "it in " ic to ad)antage o t e error o t e #ro)incial$e#+uestion and o(tained title in ersel , t e actiono t e #laintif "as, o"e)er, (arred ($ lac es and#rescri#tion.

Petitione#s T e dis#uted #ro#ert$ "as ac+uired ($Gorric o t roug an error o t e #ro)incial s erif't at a)ing (een ac+uired t roug error, it "assu(ject to an im#lied trust, as #ro)ided ($ rticle14%6 o t e 5e" Ci)il Code' and t ere ore, since t etrust is continuing and su(sisting, t e a##ellants ma$com#el recon)e$ance o t e #ro#ert$ des#ite t ela#se o time, s#eciall$ (ecause #rescri#tion does notrun against titles registered under rticle 4L6.

He'! T e #etitioners are in error in (elie)ing t atli>e e #ress trusts, suc constructi)e trusts ma$ not(e (arred ($ la#se o time. T e merican la" on

Pa#tne#shi, & Agency - * //01 //2


11/28

PARTNERSHIP Digests Atty. Cochingyantrusts as al"a$s maintained a distinction (et"eene #ress trusts created ($ intention o #arties, andt e im#lied constructi)e trusts t at are e clusi)el$created ($ la", t e later not (eing trusts in t eirtec nical sense. The e>,#ess t#$sts !isa8'e thet#$stee #o% acB$i#ing o# his o@n 8ene t the,#o,e#ty co%%itte! to his %anage%ent o#c$sto!y( at 'east @hi'e he !oes not o,en'y#e,$!iate the t#$st( an! %a es s$ch#e,$!iation no@n to the 8ene cia#y o# cestui

que trust.lso, in e #ress trusts, t e !e'ay o the 8ene cia#y

is !i#ect'y att#i8$ta8'e to the t#$stee @ho$n!e#ta es to ho'! the ,#o,e#ty o# the o#%e#(o# @ho is 'in e! to the 8ene cia#y 8ycon !entia' o# !$cia#y #e'ations . T e trustee0s#ossession is, t ere ore, not ad)erse to t e(eneing remedial action in 1L%2. Dnder t e oldCode o Ci)il Procedure, in orce at t e time, t elongest #eriod o e tincti)e #rescri#tion "as onl$ 1$ears.

EVANGELISTA( ET. AL. VS. COLLECTOR OFINTERNAL REVENUE( ET. AL.

Facts T e #etitioners (orro"ed rom t eir at erP P%L,14 . " ic amount toget er "it t eir#ersonal monies "as used ($ t em or t e #ur#oseo (u$ing and selling real #ro#erties. 7rom 1L4 to1L44, t e$ (oug t 24 #arcels o land including t eim#ro)ements t ereon on our diferent occasions.8n 1L4%, t e$ a##ointed t eir (rot er Simeon tomanage t eir #ro#erties "it ull #o"er to lease' tocollect and recei)e rents' to issue recei#ts t ere ore'in de ault o suc #a$ment, to (ring suits against t ede aulting tenant' and to endorse and de#osit allnotes and c ec>s or t em. 8n 1L4B, t eir net rentalincome amounted to P P12,61%. %.

/n Se#tem(er 1L%4, t e res#ondent Collector o 8nternal -e)enue demanded t e #a$ment o 1income ta on cor#orations, 2 real estate dealer0s< ed ta , and cor#oration residence ta or t e$ears 1L4%H1L4L, com#uted according to t eassessments made on t eir #ro#erties.

Eecause o t is, t e #etitioners A,,ea's T e #etitioners are lia(le.5o e #lanation or suc in t e case

Petitione#s T e$ are mere coHo"ners, not coH#artners, or, in conse+uence o t e acts #er ormed($ t em, a legal entit$, "it a #ersonalit$

inde#endent o t at o its mem(ers, did not comeinto e istence, and some o t e c aracteristics o #artners i#s are lac>ing in t e case at (ar.

He'! T e #etitioners are lia(le to #a$ t e ta oncor#orations #ro)ided or in Sec. 24 o t eCommon"ealt ct 5o. 466, ot er"ise >no"n as t e5ational 8nternal -e)enue Code. ccording to Sec.B4 o t e same statute, Mt e term 9cor#oration0includes #artners i#s, no matter o" created ororgani@ed, jointHstoc> com#anies, joint accounts,associations or insurance com#anies, (ut does notinclude dul$ registered general coH#artners i#s.N

lso, rticle 1 6 o t e Ci)il Code #ro)ides:ME$ t e contract o #artners i#, t"o or more #ersons

(ind t emsel)es to contri(ute mone$, #ro#ert$, orindustr$ to a common und, "it t e intention o di)iding t e #ro


12/28

PARTNERSHIP Digests Atty. CochingyanMcor#orationN and M#artners i#N are used in(ot statutes "it su(stantiall$ t e samemeaning. Conse+uentl$, #etitioners aresu(ject, also, to t e residence ta orcor#orations.

88. =astl$, t e records s o" t at t e #etitionersa)e a(ituall$ engaged in leasing t e

#ro#erties or a #eriod o 12 $ears, and t att e $earl$ gross rentals o t e said

#ro#erties rom 1L4% to 1L4B ranged romP PL,%LL. to P P 1 ,4% . . T us, t e$are su(ject to t e ta #ro)ided in Section1L + o our 5ational 8nternal -e)enueCode, or Mreal estate dealers,N inasmuc as,#ursuant to Section 1L4 s t ereo :

M-eal estate dealers include an$ #erson engagedin t e (usiness o (u$ing, selling, e c anging,leasing, or renting #ro#ert$ o is o"n account as#rinci#al and olding imsel out as ull ro #artHtimedealer in real estate or as an o"ner o rental #ro#ert$or #ro#erties rented or ofered to rent or anaggregate amount o t ree t ousand #esos or more a$ear. V V VN

4ULO V. 4ANG CHIAO SENG

Facts Fang C iao Seng #ro#osed to orm a#artners i# "it -osario Fulo to run and o#erate at eatre on t e #remises occu#ied ($ Cine /ro, Pla@aSta. Cru@, !anila, t e #rinci#al conditions o t e ofer(eing 1 Fang guarantees Fulo a mont l$#artici#ation o P , 2 #artners i# s all (e or a#eriod o 2 $ears and 6 mont s "it t e conditiont at i t e land is e #ro#riated, renderedim#ractica(le or (usiness, o"ner constructs a#ermanent (uilding, t en Fulo0s rig t to lease and#artners i# e)en i #eriod agreed u#on as not $ete #ired' Fulo is aut ori@ed to #ersonall$ conduct(usiness in t e lo(($ o t e (uilding' and 4 a ter;ec 1, 1L4 , all im#ro)ements #laced ($#artners i# s all (elong to Fulo (ut i #artners i# isterminated (e ore la#se o 1 and $ears, Fang s all

a)e rig t to remo)e im#ro)ements. Partiesesta(lis ed, MFang and Co. =td.N, to e ist rom Jul$ 1,1L4% K ;ec 1, 1L4 .

8n June 1L46, t e$ e ecuted a su##lementar$agreement e tending t e #artners i# or $ears(eginning Jan 1, 1L4B to ;ec 1, 1L% .

T e land on " ic t e t eater "as constructed "asleased ($ Fulo rom o"ners, milia Carrion and !ariaCarrion Santa !arina or an inde


13/28

PARTNERSHIP Digests Atty. Cochingyanreiterated t at t e P1%, . ad)ance rental s all(e de#osited "it S* == to co)er ad)ances o uel to#etitioner as dealer "it a #ro)iso t at saidagreement Mcancels and su#ersedes t e Joint

Ada)it.N

7or sometime, t e #etitioner su(mitted s o P1%, . ad)ance rentalstarting !a$ 2%, 1L66 " ile t e latter agreementalso re ers to ad)ance rentals o t e same amountstarting !a$ 24, 1L66. T ere is t ere ore adu#lication o re erence to t e P1%, . ence t eneed to #ro)ide in t e su(se+uent document t at itMcancels and su#ercedesN t e #re)ious none.8ndeed, it is true t at t e latter document is silent asto t e statement in t e Join Ada)it t at t e )aluere#resents t e Mca#ital in)estmentN o t e #arties int e (usiness and it s#ea>s o t e #etitioner as t esole dealer, (ut t is is as it s ould (e or in t e latterdocument, S* == "as a signator$ and it "ould (eagainst t eir #olic$ i in t e agreement it s ould (estated t at t e (usiness is a #artners i# "it #ri)ate

res#ondents and not a sole #ro#rietors i# o t e#etitioner.

7urt ermore, t ere are ot er e)idences in t e record" ic s o" t at t ere "as in act suc #artners i#agreement (et"een #arties. T e #etitionersu(mitted to t e #ri)ate res#ondents #eriodicaccounting o t e (usiness and ga)e a "rittenaut orit$ to t e #ri)ate res#ondent -emedios

stanislao to e amine and audit t e (oo>s o t eir

Mcommon (usinessN aming negos$o . T eres#ondent -emedios, on t e ot er and, assisted int e running o t e (usiness. 8ndeed, t e #arties

ereto ormed a #artners i# " en t e$ (oundt emsel)es to contri(ute mone$ in a common und"it t e intention o di)iding t e #ro


14/28

PARTNERSHIP Digests Atty. Cochingyan 5o local custom #ro i(its t e continued use o

a deceased #artner0s name in a #ro essionalened to #artners i#s ormed ($ ot er#ro essionals or or (usiness. 7or one t ing, t ela" on accountanc$ s#eci


15/28

PARTNERSHIP Digests Atty. CochingyanIss$e 8s t e relations i# (et"een t e #etitioner and!en@i t at o #artnersO

He'! T e relations i# esta(lis ed (et"een t e#arties "as not t at o #artners, (ut t at o em#lo$erand em#lo$ee, " ere($ t e #laintif "as to recei)e

%X o t e net #roed or reconsideration " ic "asdenied.

Petitione#s" A#g$%ent Petitioners are consideredas co K o"ners o t e #ro#erties in erited ($ t em

rom t e deceased Julia Eu ales and t e #ro


16/28

PARTNERSHIP Digests Atty. Cochingyan#a$ment. *o"e)er in order to o(tain t e loan e adto gi)e a #ersonal note signed ($ imsel , ($ isot er associates and ($ t e 7idelit$ and Suret$Com#an$. T en again, in order to o(tain t esignature o t e 7idelit$ and Suret$ Com#an$ lser

ad to e ecute a mortgage on one o t e #ro#ertieso"ned ($ im and =$ons on Carriedo Street.

=$ons re#lied to t e letter o lser onl$ in Jul$ 1L2 and e e #ressed in it is un"illingness to

join t e latter in t is )enture. Eecause o t is lserrelie)ed t e Carriedo #ro#ert$ o t e encum(rance" ic e ad #laced u#on it and re+uested t e7idelit$ and Suret$ Com#an$ to allo" im tosu(stitute anot er #ro#ert$ or it. *o"e)er t erelease o t e old mortgage and t e recording o t ene" "ere ne)er registered (ecause in Se#tem(er1L2 , " en =$ons returned to !anila, e allo"ed t emortgage to remain on t e Carriedo #ro#ert$. Eut in

Januar$ 1L21, lser "as a(le to #a$ t e notee ecuted ($ im to D$ Siolong " ic ena(led t erelease o t e Carriedo Pro#ert$.

Iss$e 3 5 =$ons, as al o"ner o t e Carriedo#ro#ert$, in)oluntaril$ (ecame t e o"ner or a coH#artner o an undi)ided interest in t e San Juan

state, " ic "as ac+uired #artl$ ($ t e mone$o(tained t roug an encum(rance #laced on t eCarriedo #ro#ert$. 5o.

He'! Dnder our la", a trust does not necessaril$attac "it res#ect to #ro#ert$ ac+uired ($ a #erson" o uses mone$ (elonging to anot er. 8n t e case at(ar, t ere "as clearl$ no general relation o#artners i# (et"een =$ons and lser and t e mostt at can (e said is t at t e$ ad (een coH#artici#antsin )arious transactions in)ol)ing real estate. 8t isclear t e lser, in (u$ing t e San Juan state, "asnot acting or an$ #artners i# com#osed or imseland =$ons, es#eciall$ t at t e latter e #ressl$communicated is desire not to #artici#ate in t is)enture. =astl$, it s ould (e noted t at no mone$(elonging to =$ons or an$ #artners i# com#osed ($=$ons and lser "as in act used ($ t e latter in t e#urc ase o t e San Juan state.

FERNANDE3 VS. DE LA ROSA

Facts /n t e #art o #laintif 7ernande@, e claimst at e entered into a )er(al agreement "itde endant ;e la -osa to orm a #artners i# or t e#urc ase o cascoes "it t e underta>ing t at t ede endant "ill (u$ t e cascoes and t at eac #artner"ill urnis suc amount as e could, " ile t e #ro


17/28

PARTNERSHIP Digests Atty. Cochingyan#laintif is un"illing to acce#t. #artners i#t ere ore e isted (et"een t e t"o and cascoes 5o.1%1% and 2 BL are #artners i# #ro#erties.

=OODHOUSE VS. HALILI

Facts ;e endant *alili in ormed 3ood ouse,#laintif, o is desire to in)est al a million dollars in

t e (ottling and distri(ution o !ission So t ;rin>s.3ood ouse t en rela$ed t is message to !ission ;r$Cor#oration o =os ngeles, DS . !ission ;r$Cor#oration t en ga)e #laintif a t irt$ da$ o#tion one clusi)e (ottling and distri(ution rig ts in t eP ili##ines i(it J .

T erea ter, #laintif and de endant enteredinto a "ritten agreement "it t e f. #ertinent#ro)isions: 1 t e$ s all organi@e a #artners i# ort e (ottling and distri(uting o !ission so t drin>s,"it #laintif, 3ood ouse, as industrial #artner ormanager, and de endant, *alili, as ca#italist'2 de endant "as to decide matters o general #olic$regarding t e (usiness, " ile #laintif "as to attendt e o#eration and de)elo#ment o t e (ottling #lant'

#laintif "as to secure !ission so t drin>s ranc iseor and in (e al o t e #ro#osed #artners i#' and 4#laintif "as to recei)e #ercent o t e net #ro


18/28

PARTNERSHIP Digests Atty. Cochingyanagainst ! or t e reco)er$ o #ro#erties andaccounting o t e #artners i# and damages.

CFI t e #artners i# o ! and - is a ter P retired isone o de acto and at "ill' t e s aring o #ro " ic e s ould0)e recei)ed (ut"as not #aid to im and must (e considered as iscontri(ution.

ISSUE " at is t e nature o t e #artners i# andlegal relations i# o !H- a ter P retired rom t esecond #artners i#O !a$ ! unilaterall$ dissol)e t e#artners i#O

SC T ere "as no intention to dissol)e t e


19/28

PARTNERSHIP Digests Atty. Cochingyan s#ouses. T is document alone #ro)es !0s

misa##ro#riation o t eir P*P21 >.

SO ;ismissed a##eal. s#ouses ailed to s o"suAcient #roo t at ! deli(eratel$ decei)ed t em int e antic resis transaction. T e document alone int e name o t e ! s#ouses ailed to con)ince t e S/Jt at t ere "as deceit o alse re#resentation on t e#art o ! to induce t e s#ouses to #art "it t eirmone$. Z #artners i# trul$ e isted and it is clear

rom t e act t at t e$ contri(uted mone$ to acommon und and di)ided t e #ro


20/28

PARTNERSHIP Digests Atty. CochingyanEor!a*eCo , 7rancisco and !odesto Cer)antes and

!aglana ga)e some unds used in t e #urc ase oraircra ts and s#are #arts as contri(ution to ne"cor#oration #ro#osed ($ =im to e #and is airline(usiness. T e$ e ecuted 2 indemnit$ agreementssti#ulating t at t e indemnitors #rinci#all$ agree and(ind t emsel)es solidaril$ to indemni $, old andsa)e Pioneer rom damages, losses, costs, ta es,#enalties, etc. " ic Pioneer ma$ incur rom(ecoming suret$. =im, acting under S = , e ecuted

in a)or o #ioneer a deed o c attel mortgage assecurit$, sti#ulating t at =im "as to trans er andcon)e$ to t e suret$ t e 2 aircra ts. =im de aulted oninstallment #a$ments and J; as>ed Pioneer to #a$," ic Pioneer did in t e amount o P2LB>. Pioneer


21/28


22/28

PARTNERSHIP Digests Atty. Cochingyan8n t is case, t e #ri)ate res#ondent a s not s o"nt at .C. guila & Sons, Co., as a se#arate juridicalentit$, is (eing used or raudulent, un air or illegal#ur#oses. !oreo)er, t e title to t e su(ject #ro#ert$is in t e name o .C. guila & Sons, Co. and t e!/ "as e ecuted (et"een t e #ri)ate res#ondent,"it t e consent o er us(and, and .C. guila &Sons, Co., re#resented ($ t e #etitioner. *ence, it ist e #artners i#, not its oAcers or agents, " ics ould (e im#leaded in an$ litigation in)ol)ing

#ro#ert$ registered in its name.3e cannot understand " $ (ot t e -TC and t e Csideste##ed t is issue " en it "as s+uarel$ raised(e ore t em ($ t e #etitioner. T e court0s conclusionis t at t e #etitioner is not t e real #art$ in interestagainst " om t is action s ould (e #rosecuted. 8t isunnecessar$ to discuss t e ot er issues raised ($

im in is a##eal.

Unite! States 5s. C'a#in

Facts Pedro =arin ad an agreement to orm a#artners i# and t e di)ide t e #ro


23/28

PARTNERSHIP Digests Atty. Cochingyan#etitioners did not #ersonall$ old its e+uit$ orassets. 9T e #artners i# as a juridical #ersonalit$se#arate and distinct rom t at o eac o t e#artners.0 Since t e ca#ital "as contri(uted to t e#artners i#, not t e #etitioners, it is t e #artners i#t at must re und t e e+uit$ o t e retiring #artners.

nd since it is t e #artners i#, as a se#arateand distinct entit$, t at must re und t e s ares o t e#artners , the amount to be refunded is necessarily

limited to its total resources. In other words, it canonly pay out what it has which consists of all itsassets. %owe"er, before the partners can be paidtheir shares, the creditors of the partnership must

rst be compensated. &fter all the creditors ha"ebeen paid, whate"er is left of the partnership assetsbecomes a"ailable for the payment of the partners' shares.

C 0s com#utation o t e amount to (ere unded to res#ondents as t eir s are "aserroneous as t e e act amount o re und e+ui)alentto res#ondents0 s are in t e #artners i# cannot (edetermined until all t e #artners i# assets "ill a)e(een li+uidated, sold and con)erted to cas , and all#artners i# creditors, i an$, #aid. 5o li+uidation o assets is made.

EVANGELISTA & CO. VS. A*AD SANTOS

Facts co H #artners i# "as ormed under t ename o 9 )angelista & Co.0 8ts articles o coH#artners i# "as later on amended to include strella

(ad Santos a judge in a Cit$ Court in !anila as anindustrial #artner. S e su(se+uentl$


24/28

PARTNERSHIP Digests Atty. Cochingyane ecuted ($ t e #artners i# and Tan Sin n, " ere($t e entire 4L lots "ere mortgaged in a)or o t eEanco *i#otecario de 7ili#inas as successor to =aDr(ana . 3 en Tan Sin n died, is "i e ong C iaPin "as a##ointed administrati o t e intestateestate o er deceased us(and. -e#eated demands

or #a$ment "ere made ($ Eanco *i#otecario on t e#artners i# and on Tan Sin n " ic "as initiall$ #aid($ Futi)o and Co. and Sing Fee Cuan and Co. at t ere+uest o Futi)o and Co. T e mortgage "as

e)entuall$ cancelled. 5o" Futi)o and Sing Fee CuanCom#an$ s "ortP1,B , . 7or t e s are o larilla, 8dos issued our#ostHdated c ec>s o " ic onl$ t ree out o ourc ec>s "ere encas ed. T is im#elled larilla to s a)e (een sold. T is "asre uted ($ larilla and su(se+uentl$ 8dos "ascon)icted ($ t e trial court o t e ofense c arged.

T e C aArmed t e decision o t e trial court.

8ssue: 3 5 8dos )iolated EP 22O 5o

*eld: /ne o t e elements o t e ofense #enali@edunder EP 22 is Mt e ma>ing, dra"ing and issuance oan$ c ec> to a##l$ or an$ account or or )alue.N 8nt is case 8dos s o"ed enoug e)idence t at t ec ec> "as to (e unded rom recei)a(les to (ecollected and goods to (e sold ($ t e #artners i#.7irst, onl$ one o t e ours c ec> "ere not encas ed

and second, e)en larilla imsel admitted t at t ere"as no consideration or t e issuance o t e c ec>.*ence t e c ec> in +uestion "as not issued or an$de(t o or an$ account due and #a$a(le ($ t e#etitioner.

!oreo)er, 8dos and larilla "ere still in t eM"inding u#N o t e afairs o t e #artners i# en t ec ec> "as issued as e)idenced ($ t e act t at t e$still ad to sell t e goods on and and collect t erecei)a(les rom de(tors. s #ro)ided ($ t e Ci)ilCode: "indingHu# is t e #rocess o settling (usinessafairs a ter dissolution, i.e. collecting o assets#re)iousl$ demanda(le' termination is t e #oint intime a ter all t e #artners i# afairs a)e (een"ound u#. T us, since t at #artners i# as not (eenterminated, t e #etitioner and #ri)ate com#lainantremained as coH#artners. T e c ec> "as t us issued($ t e #etitioner to com#lainant as "ould a #artnerto anot er and not as #a$ment rom a de(tor to acreditor. 8dos did not )iolate EP 22.

VILLAREAL VS. RA)IRE3

7acts:

8n 1LB4, Iillareal, Carmelito Jose and Jesus Jose ormed a #artners i# "it a ca#ital o P % ,



25/28

PARTNERSHIP Digests Atty. Cochingyanor t e o#eration o a restaurant and catering

(usiness. -es#ondent -amire@ joined as a #artner int e (usiness "it t e ca#ital contri(ution oP2% , . 8n 1LB , Jesus Jose "it dre" rom t e#artners i# and "it in t e same time, Iillareal andCarmelito Jose, #etitioners closed t e (usiness"it out #rior >no"ledge o res#ondents.

8n !arc 1LB , res#ondents "rote a letter to#etitioners stating t at t e$ "ere no longer

interested in continuing t e #artners i# and t att e$ "ere acce#ting t e latter0s ofer to return t eirca#ital contri(ution. T is "as le t un eeded ($ t e#etitioners, and ($ reason o " ic res#ondents iles, raneta andCo"#er. T e res#ondents in t is case


26/28

PARTNERSHIP Digests Atty. Cochingyant e c attel mortgage declared null and )oid in raudo creditors. ;e endant !. Saldajeno claims t at allt e #laintifs sa)e or /##an are creditors o Gari(a$and Tu(ung(anua and not o t e de unct #artners i#and t at said creditors ad >no"ledge and noticet at t e ormer #artners i# ad (een dissol)ed.

T e trial court ruled in a)or o t e #laintifs t us, t eerein de endants a##ealed. T e court ruled t at

t ere "as no C! o)er t e #ro#erties as suc "ere

o"ned ($ t e #artners i# and t at t e #laintifs a)ea #re erred rig t o)er it as against Saldejano. ssuc , t e latter must #a$ t e #laintifs t e res#ecti)eamounts or " ic t e #artners i# is inde(ted tot em. Gari(a$ and Tu(ung(anua are also lia(le to#a$ to t e #laintifs " ate)er amount t at t e$ ma$not collect rom Saldajeno. T e de endants a##ealedto t e C (ut t e latter trans erred t e records o t ecase to t e SC.

SC T e remaining #artners did not terminate t e(usiness o t e #artners i#. 8t is e #ressl$ sti#ulatedin t e memorandum agreement t at t e remaining#artners ad constituted t emsel)es as t e#artners i# entit$, t e M8sa(ella Sa"millN. T ere "asno li+uidation o t e assets o t e #artners i#. T eremaining #artners continued doing (usiness o t e#artners i# in t e name o M8sa(ella Sa"millN. T e$used t e #ro#erties o t e #artners i#. T e#ro#erties mortgaged to !. Saldajeno ($ t eremaining #artners (elonged to t e #artners i#. 8tdoes not a##ear t at t e "it dra"al o !. Saldajeno"as #u(lis ed in t e ne"s#a#ers. T e a##ellees andt e #u(lic in general ad a r ig t to e #ect t at" ate)er credit t e$ e tended to t e remaining#artners doing (usiness in t e name o M8sa(elasa"millN could (e en orced against t e #ro#erties osaid #artners i#. T e judicial oreclosure e ecuted in

a)or o Saldajeno did not relie)e er rom lia(ilit$ tot e creditors o t e #artners i#. Tec nicall$ s#ea>ingt e #artners i# "as dissol)ed ($ t e "it dra"al oSaldajeno (ut not terminated and it continued doing(usiness t roug t e t"o remaining #artners.

T e #laintifs "ere #rejudiced in t eir rig ts ($ t ee ecution o t e c attel mortgage o)er t e#ro#erties o t e #artners i# in a)or o Saldajeno ($t e remaining #artners and t e$ ad a rig t to ing in t e (usiness. Fu, o"e)er, "as in ormed($ Co t at e ad (oug t t e (usiness rom t eoriginal #artners and t at it "as u# to im to decide" et er or not e "as res#onsi(le or t e o(ligationso t e old #artners i# including Fu0s salar$. Fu "as nolonger allo"ed to "or> or t e (usiness and issalar$ remained un#aid.

Fu "ages. T e 5=-C re)ersed t e decision,ruling t at t e ne" #artners i# ad not retained Fu in

is original #osition and t ere "as no la" re+uiringt e ne" #artners i# to a(sor( t e em#lo$ees o t eold #artners i#. T e claim or un#aid "ages must (easserted against t e old #artners (ut t e$ a)e not(een ser)ed "it summons.

Iss$es 3 et er t e old #artners i# ad (eene tinguis ed and re#laced ($ a ne" #artners i#. 8 ane" #artners i# "as created could Fu assert isrig ts under is em#lo$ment contract as against itO

SC T e ac+uisition ($ t e ne" #artners o B2X ot e #artners i# interest "as enoug to constitute ane" #artners i#. *o"e)er, dissolution does notautomaticall$ result in t e termination o t e legal#ersonalit$ o t e old #artners i#. T e legal#ersonalit$ o t e e #iring #artners i# #ersists ort e limited #ur#ose o "inding u# and closing o t eafairs o t e #artners i#. T e ne" #artners i#sim#l$ too> o)er t e (usiness enter#rise o"ned ($t e #receding #artners i# and continued using t eold name "it out "inding u# t e (usiness afairs ot e latter, #a$ing of its de(ts, li+uidating anddistri(uting its assets and t e reHassem(ling t eassets and o#ening a ne" (usiness enter#rise.

T ere ore, not onl$ t e retiring #artners (ut also t ene" #artners i# itsel " ic continued t e (usiness

o t e old, dissol)ed one are lia(le or t e de(ts ot e #receding #artners i#. T e creditors o t e old#artners i# are also t e creditors o t e ne". Fu isentitled to en orce is claim or un#aid salaries, as"ell as ot er claims relating to is em#lo$ment "itt e #re)ious #artners i#, against t e ne" one.

T e nonHretention o Fu did not constitute unla" ul orunjust termination as t e ne" #artners i# is entitledto ire ne" managers. T e ne" #artners i# ad Coas its o"n ne" manager and t e (asis or Fu0stermination "as redundanc$.

Fu is entitled to is un#aid "ages and se#aration #a$.



27/28

PARTNERSHIP Digests Atty. Cochingyan

A)ES V. DO=NING 6N.4. S$##. Cit.7

TAJEN FRO) CLV *LOG autista quoted fromthe )ew *ork decision in &mes ". +owning, rad.().*. -urr. Cit.! / ,012 to describe the origin andde"elopment of limited partnerships, thus 33

T e s$stem o limited #artners i#, " ic "asintroduced ($ statute into t is state, andsu(se+uentl$ )er$ generall$ ado#ted in man$ ot erstates o t e Dnion, "as (orro"ed rom t e 7rencCode. ent. 6' Code de Commerce, 12, 2 , 24.Dnder t e name o la societe en commandite, it ase isted in 7rance rom most aut entic commercialrecords, and in t e earl$ mercantile regulations o!aseilles and !ont#elier. 8n t e )ulgar latinit$ o t emiddle ages it "as st$led commanda , and in 8tal$accomenda. 8n t e states o Pisa and 7lorence, it isrecogni@ed so ar (ac> as t e $ear 1166' also in t eordinance o =ouiseHle *utin, o 1 1%' t e statutes o!arseilles, 12% ' o Gene)a, o 1%BB. 8n t e middleages it "as one o t e most re+uent com(inations o trade, and "as t e (asis o t e acti)e and "idel$e tended commerce o t e o#ulent maritime cities o 8tal$. 8t contri(uted largel$ to t e su##ort o t e greatand #ros#erous trade carried on along t e s ores ot e !editerranean, "as >no"n in =aguedoc,Pro)ence, and =om(ard$, entered into most o t eindustrial occu#ations and #ursuits o t e age, ande)en tra)eled under t e #rotection o t e arms o t eCrusaders to t e cit$ o Jerusalem. t a #eriod " enca#ital "as in t e ands o no(les and clerg$, " o,

rom #ride o caste, or cannonical regulations, couldnot engage directl$ in trade, it aforded t e means o secretl$ em(ar>ing in commercial enter#rises, andrea#ing t e #roing a dissolution,and turning t e during t ee istence o t e #artners i#N. 8n t e instant case, allo t e contri(utions "ere < ed sums o mone$ andneit er o t em "ere industrial #artners. T us it "asnot a #artners i# t at s#ouses "ere or(idden toenter under t e 1BBL Ci)il Code.

T e ca#ital contri(utions o #artnerHs#ouses "erese#aratel$ o"ned and contri(uted ($ t em (e oret eir marriage' and a ter t e$ "ere joined in"edloc>, suc contri(utions remained t eirres#ecti)e se#arate #ro#ert$ under t e S#anis Ci)ilCode. T us, t e indi)idual interest o eac did not(ecome common #ro#ert$ o (ot a ter t eirmarriage.

http://www.blogger.com/post-create.g?blogID=6336731883560557810#_ftn1http://www.blogger.com/post-create.g?blogID=6336731883560557810#_ftn1http://www.blogger.com/post-create.g?blogID=6336731883560557810#_ftn1


28/28

PARTNERSHIP Digests Atty. Cochingyan8n t is case t e limited #artners i# is not a mere(usiness conduit o t e #artnerHs#ouses' it "asorgani@ed or legitimate (usiness #ur#oses, T ec ange in its mem(ers i# (roug t a(out ($ t emarriage is not a ground or "it dra"ing t e#artners i# rom co)erage under 24 o t e ta codere+uiring it to #a$ income ta . 3 at is ta a(le is t eincome o (ot s#ouses in t eir indi)idual ca#acities.

O CHUNG CANG 5s. PACIFIC CO))ERCIAL Co.

Facts 8n an insol)enc$ #roceedings o #etitionerHesta(lis ment, MSociedad !ercantil, Tec> Seing &Co., =td.N, creditors, Paci to a)ail t emsel)es o t e #rotection ola"s #ermitting t e creation o limited #artners i#smust t e s o" a su(stantiall$ ull com#liance "itsuc la"s. 8t must (e noted t at all t e re+uirementso t e Code a)e (een met " t e sole e ce#tion ot at relating to t e com#osition o t e

partnership and agency digests

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