Title
Cabigao vs. Lim
Case
G.R. No. 31387
Decision Date
Jan 13, 1930
Co-owners dispute accounting of fishery income; Supreme Court rules Petrona Lim liable for half of net income, not gross income.
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Case Digest (G.R. No. 31387)

Facts:

  1. Parties Involved:

    • Plaintiff and Appellant: Concepcion Cabigao, as heir of Tomas Cabigao, deceased.
    • Defendants and Appellees: Petrona Lim, her husband Eugenio Evangelista, and Luisa Lim.
  2. Background of the Case:

    • The case originated from a judgment by Judge Jocson, which ordered Petrona Lim and her husband to account to Tomas Cabigao for one-half of the proceeds from the sales of fishes in a fishery.
    • Tomas Cabigao and Petrona Lim were co-owners of the fishery in undivided interests.
  3. Judicial History:

    • Judge Jocson's judgment was affirmed on appeal by the Supreme Court.
    • The case was remanded to the Court of First Instance for an accounting.
  4. Dispute Over Accounting:

    • The central issue was whether Petrona Lim was liable to account for one-half of the gross income or the net income of the fishery.
    • Two Judges of the Court of First Instance ruled that Petrona Lim's liability was limited to one-half of the net income.
  5. Judge Jocson's Interpretation:

    • Judge Jocson, in subsequent interlocutory orders, indicated that the question of whether Tomas Cabigao should bear one-half of the expenses of producing the fishes was left for future determination.

Issue:

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Ruling:

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Ratio:

  1. Principle of Accountancy Between Co-Owners:

    • The ruling is consistent with Article 393 of the Civil Code, which governs the accounting between tenants in common.
    • Co-owners are entitled to share in the net income after deducting necessary expenses, not the gross income.
  2. Judicial Interpretation:

    • The Court found that Judge Jocson's original order, as well as subsequent interlocutory orders, supported the interpretation that the accounting should be based on net income.
  3. Equity and Justice:

    • The decision is not only just in the context of the case but also aligns with general principles of fairness in co-ownership arrangements.


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