G.R. No. 126334 - Emnace vs. Court of Appeals

Petitioner Emilio Emnace, Vicente Tabanao and Jacinto Divinagracia entered into partnership named Ma. Nelma Fishing Industry.
In January 1986, they agreed to dissolve the partnership and executed a partition agreement covering five fishing boats, six vehicles, two parcels of land (Sto. Niño and Talisay, Negros Occidental), and bank deposits.

Petitioner failed to render to Tabanao’s heirs any statement of assets and liabilities or render a full accounting, despite Vicente Tabanao’s death in 1994.
Petitioner refused to deliver the decedent’s one-third share (estimated at ₱10,000,000) of the partnership assets despite formal demand.

Tabanao’s heirs filed Civil Case No. 416-C: prayer for accounting, payment of one-third share, division of assets, moral damages, and attorneys’ fees.
Petitioner moved to dismiss for improper venue, lack of jurisdiction (failure to pay docket fees), and lack of capacity of the estate to sue; trial court denied on August 30, 1994.
Respondents filed an amended complaint adding prayer for sale of assets; petitioner renewed motion to dismiss and raised prescription; trial court denied on June 15, 1995.

Petitioner filed certiorari in the Court of Appeals, urging lack of jurisdiction due to unpaid fees, improper venue, incapacity of heirs, and prescription; CA dismissed the petition on August 8, 1996.
Petitioner elevated the same issues to the Supreme Court in a petition for review.

Whether the trial court acquired jurisdiction despite respondents’ failure to pay proper docket fees.
Whether venue was improperly laid since realty outside the court’s territorial jurisdiction was involved.
Whether the heirs of Vicente Tabanao had capacity to sue absent appointment as estate administrator.
Whether the heirs’ cause of action had prescribed.