Case Digest (G.R. No. L-22493)
Facts:
Island Sales, Inc. v. United Pioneers General Construction Company, et al., G.R. No. L-22493, July 31, 1975, Supreme Court Second Division, Concepcion, Jr., J., writing for the Court.The plaintiff-appellee Island Sales, Inc. sold a motor vehicle to United Pioneer General Construction Company, a general partnership, on April 22, 1961, evidenced by a promissory note for P9,440.00 payable in twelve equal monthly installments of P786.63 beginning May 22, 1961, with an acceleration clause making the whole unpaid balance due upon default of any installment. The partnership executed the note through persons authorized to act for it; five individuals were named as general partners and were sued in their individual capacities: Benjamin C. Daco (appellant), Daniel A. Guizona, Noel C. Sim, Romulo B. Lumauig, and Augusto Palisoc.
After the July 22, 1961 installment was not paid, Island Sales sued for the unpaid balance of P7,119.07. Daniel A. Guizona failed to answer and was declared in default. The complaint was later dismissed as to Romulo B. Lumauig upon motion of the plaintiff. At trial the defendants and their counsel did not appear despite notice; the trial court permitted the plaintiff to present evidence ex parte and rendered judgment against the partnership and the individual partners, with the judgment against the individuals made enforceable only if the partnership had no leviable assets. The court awarded P7,119.07 plus 12% interest, attorney’s fees of P800, and costs.
Defendants Benjamin C. Daco and Noel C. Sim moved for reconsideration contending that, because there were five general partners when the promissory note was executed, the joint and subsidiary liability of each partner should be limited to one-fifth of the partnership obligation. The t...(Pro-only)
Issues:
- Does the dismissal of the complaint in favor of one general partner increase the joint and subsidiary liability of the remaining partners for the partnership’s oblig...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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