G.R. No. 31387, January 13, 1930
CONCEPCION CABIGAO, as heir of Tomas Cabigao, deceased, plaintiff-appellant, vs. PETRONA LIM and her husband, EUGENIO EVANGELISTA, and LUISA LIM, defendants-appellees.

FACTS

The case originated from a judgment ordering defendant Petrona Lim and her husband to account to Tomas Cabigao (predecessor-in-interest of plaintiff Concepcion Cabigao) for one-half of the proceeds from the sale of fish in a fishery they co-owned in undivided interests. The judgment, affirmed by the Supreme Court, directed payment of “the one-half belonging to the latter” of the sales. During execution for accounting, a dispute arose as to whether the “one-half” referred to gross income or net income. The trial court held that Petrona Lim was liable only for half of the net income.

ISSUE

Whether the accounting between co-owners Petrona Lim and Tomas Cabigao should be based on the gross income or the net income from the fishery.

RULING

The Supreme Court AFFIRMED the trial court’s decision, holding that the accounting should be based on net income. The Court ruled that this interpretation is just, conforms with Article 393 of the Civil Code governing accountancy between tenants in common, and aligns with the original judge’s intent to defer the issue of expense-sharing. Thus, Petrona Lim’s liability is limited to one-half of the net income after deducting necessary expenses. Costs were imposed on the appellant.