Facts:

• Lucio Herrera, as the assignee of a credit from Tan Cuanco, filed a case against Santiago Roldan Sy Cangjo for an outstanding balance of PHP 4,826.62.
• The case was initially heard in the Court of First Instance of Cebu.
• Herrera claimed the amount as the remaining balance from a current account between Tan Cuanco and Sy Cangjo.
• Sy Cangjo denied the allegations and filed a counterclaim, alleging:
  • Herrera owed him PHP 2,800 from a partnership involving the sale of opium.
  • He suffered damages worth PHP 3,000 due to the preventive seizure of his properties as a result of the lawsuit.
• The lower court ruled in favor of Herrera, ordering Sy Cangjo to pay the claimed amount with 6% interest from October 1, 1904, until full payment.
• The court dismissed Sy Cangjo's counterclaims for lack of evidence, finding no proof of the alleged opium partnership or the claimed damages.
• Sy Cangjo appealed, arguing that the sales of abaca by Tan Cuanco were not conducted according to his instructions and that the lower court erred in its findings.

Issue:

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Ruling:

• The Supreme Court affirmed the lower court's decision that Sy Cangjo was indebted to Herrera in the amount of PHP 4,826.62.
• The Supreme Court upheld the lower court's dismissal of Sy Cangjo's counterclaims due to lack of evidence.
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Ratio:

• The Supreme Court, led by Chief Justice Arellano, found that the lower court's conclusions were well-supported by the evidence.
• There was no proof that Sy Cangjo had given specific instructions to Tan Cuanco regarding the sale price of the abaca.
• The sales were conducted at the prevailing market prices, and there was no evidence of malice or negligence on Tan Cuanco's part.
• The alleged opium partnership and the claimed damages f...continue reading