GR L 3146; (September, 1907) (Digest)
G.R. No. L‑3146
FACTS
– Florencio Yulo and Jaime Palacios operated a sugar estate in Victorias, Negros as partners in a civil partnership (i.e., not a mercantile partnership) and dealt with a Chinese trader, Dy‑Sianco, for money, goods, and purchase of their sugar crop.
– In February 1903 the father of Florencio, Pedro Yulo, succeeded Florencio’s interest and became a general partner with Jaime Palacios, continuing the same business dealings until the end of 1904.
– The plaintiff, Nicolás Co‑Pitco, claimed that the partnership of Pedro Yulo and Jaime Palacios owed ₱1,638.40. The trial court ordered judgment against Pedro Yulo for the full amount with interest.
– On appeal, the record contained only a certified stenographic testimony deemed “unimportant”; other purported testimonies were not certified and therefore excluded from review.
ISSUE
Whether, under Articles 1698 and 1137 of the Civil Code, a partner in a civil partnership is liable for the entire partnership debt or only pro rata, and consequently, what amount Pedro Yulo should be held liable for.
RULING
– The Court held that the partnership was a civil partnership; thus, liability of partners is pro rata, not joint and several.
– Applying Articles 1698 and 1137, Pedro Yulo is liable only for one‑half of the debt, i.e., ₱819.20, with interest at 6 % per annum from 12 January 1905.
– The judgment of the Court of First Instance is reversed; the appellate court orders judgment in favor of the plaintiff for ₱819.20 plus interest, and no costs are awarded to either party.
Concurrence: Chief Justice Arellano and Justices Torres, Johnson, and Tracey concurred.
