G.R. No. 39650 ; April 17, 1934
HIJOS DE F. ESCAÑO, INC., plaintiff-appellant, vs. FELIX NAZARENO, defendant-appellee.

FACTS

Plaintiff Hijos de F. Escaño, Inc., a corporation and successor to the partnership Viuda e Hijos de F. Escaño, filed an action to recover P10,327.61 from defendant Felix Nazareno. The amount represented the alleged balance due from a current account the defendant had with the partnership, which was closed on December 31, 1922. The plaintiff claimed the defendant verbally admitted the debt and promised to pay “little by little,” but the defendant denied this and contended the account was fully settled. The complaint was filed on October 14, 1929, nearly seven years after the account was closed.

ISSUE

Whether the plaintiff’s action to recover the sum based on an unwritten contract has already prescribed.

RULING

Yes. The Supreme Court affirmed the trial court’s judgment absolving the defendant. The action is based on a contract not in writing. Under Section 43 of the Code of Civil Procedure, an action upon a contract not in writing prescribes in six years after the right of action accrues. The right of action accrued on December 31, 1922, when the current account was closed and the final balance was struck. Since the complaint was filed only on October 14, 1929, more than six years had elapsed, resulting in prescription of the action. The Court found it unnecessary to discuss other assignments of error.

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