G.R. No. 28817 , March 23, 1928
LORETO IGUILDEZ, as administratrix of the estate of Abraham Weill, deceased, plaintiff-appellant, vs. LEVY HERMANOS, defendant-appellee.

FACTS

Loreto Igulidez, as administratrix of the estate of Abraham Weill, filed a complaint against Levy Hermanos, Inc. to recover the sum of P155,437. She alleged that Abraham Weill was a partner and chief of the firm “La Estrella del Norte,” which was later incorporated as Levy Hermanos, Inc., and that upon Weill’s death, this amount remained on deposit with the defendant. The defendant denied these allegations, asserting that La Estrella del Norte was a foreign partnership owned solely by Rafael Levy, that Weill was never a partner, and that any balance in Weill’s favor had been fully paid. The trial court ruled in favor of the defendant, absolving it from the complaint. The plaintiff appealed, assigning errors primarily related to the admission and correctness of the defendant’s account books and the finding that the claimed sum had been paid.

ISSUE

1. Whether the defendant’s account books (Exhibits 1, 2, 3, 4, 6, 7-A, and 8) were properly admitted in evidence.
2. Whether the entries in these exhibits were correct and reliable.
3. Whether the Kilayco property belonged to Abraham Weill or to Levy Hermanos.
4. Whether the sum claimed by the plaintiff had already been fully paid by the defendant.

RULING

The Supreme Court AFFIRMED the trial court’s decision, holding that:
1. The account books were properly admitted. The appellant failed to show in the bill of exceptions that the books were not kept in accordance with the Code of Commerce. Moreover, the trial court examined them and found them compliant. Even if not strictly compliant, they could be admitted under Section 338 of the Code of Civil Procedure as memoranda to refresh memory or as evidence of regular business entries.
2. The entries were correct and reliable. The books were kept in the ordinary course of business, showing regular entries, including interest on Weill’s deposit and his share as manager. Witnesses for the plaintiff identified the books, and the trial judge found no indication of falsity. Exhibit 8, a public document, further showed that Weill himself declared Rafael Levy as the sole owner of La Estrella del Norte, contradicting the claim that Weill was a partner.
3. The Kilayco property belonged to Levy Hermanos, not to Weill. Although an entry debited expenses for the Kilayco house to Weill’s account, this was corrected by a subsequent credit. The property was registered under Levy Hermanos, Inc.’s name, as shown in the deed of sale (Exhibit B), and Weill’s ownership could not be inferred from the initial erroneous entry.
4. The claimed sum had been fully paid. The parties agreed that on April 1, 1914, Weill had a balance of P69,794.21 with Levy Hermanos (not the defendant corporation), and on February 1, 1922, when Levy Hermanos, Inc. was organized, it took over a balance of only P9,490.87 in Weill’s favor. The defendant presented vouchers showing withdrawals by Weill and his heirs that exhausted this balance. The reduction from P69,794.21 to P9,490.87 was documented in the account books (Exhibit 6), and the defendant corporation only assumed the latter amount, which was duly paid. The loss of original vouchers due to a fire was reasonably explained.

CONCLUSION:
The Supreme Court found no error in the trial court’s judgment. The evidence established that Abraham Weill was not a partner of La Estrella del Norte, the account books were admissible and reliable, the Kilayco property was not owned by Weill, and the balance claimed had been fully paid. The decision absolving the defendant was affirmed, with costs against the appellant.