Case Digest (G.R. No. 208567) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Manuel G. Singson, et al. v. Isabela Sawmill, et al. (G.R. No. L-27343, February 28, 1979), six creditors—Manuel G. Singson, Jose Belzunce, Agustin E. Tonsay, Jose L. Espinos, Bacolod Southern Lumber Yard, and Oppen, Esteban, Inc.—filed Civil Case No. 5343 in the Court of First Instance of Negros Occidental on June 5, 1959, against the partnership Isabela Sawmill, its partners Leon Garibay, Timoteo Tubungbanua, and former partner Margarita G. Saldajeno with her husband Cecilio. The plaintiffs sought (a) annulment of an “Assignment of Rights with Chattel Mortgage” executed May 26, 1958 by Garibay and Tubungbanua in favor of Saldajeno, (b) injunction and foreclosure of partnership assets, and (c) recovery of unpaid balances: P1,288.89 (Oppen, Esteban, Inc.), P3,723.50 (Singson), P933.73 (Tonsay), P1,579.44 (Espinos), P1,048.78 (Bacolod Southern), and P2,052.10 (Belzunce), plus interest and attorney’s fees. The parties stipulated that the partnership was formed January 30, 1951; Case Digest (G.R. No. 208567) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Parties and Procedural History
- Plaintiffs-appellees: Manuel G. Singson, Jose Belzunce, Agustin E. Tonsay, Jose L. Espinos, Bacolod Southern Lumber Yard, and Oppen, Esteban, Inc., creditors of “Isabela Sawmill.”
- Defendants-appellants: Margarita G. Saldajeno and husband Cecilio Saldajeno; co-defendants Leon Garibay, Timoteo Tubungbanua, the “Isabela Sawmill” partnership and Provincial Sheriff of Negros Occidental.
- Complaint filed June 5, 1959 (Civ. Case No. 5343, CFI Negros Occidental, Br. I) sought:
- Preliminary and permanent injunction against sheriff’s auction (Civ. Case No. 5223).
- Payment of various money claims plus nullity of a chattel mortgage executed May 26, 1958.
- Auction of partnership assets with plaintiffs’ preference and joint liability of partners.
- Defendants Saldajeno filed answer with special defenses: lack of jurisdiction over small money claims; partnership dissolution; validity of chattel mortgage; misjoinder; statute of frauds; and cross-claim against Garibay and Tubungbanua.
- Stipulated and Established Facts
- Jan. 30, 1951: Formation of “Isabela Sawmill” partnership by Garibay, Saldajeno, and Tubungbanua (Exh. A).
- Feb. 3, 1956: Oppen, Esteban, Inc. sold a truck and two tractors to partnership for ₱20,500; ₱1,288.89 unpaid (Exhs. B, C–C-2).
- Apr. 25, 1958: Saldajeno spouses file dissolution suit (Civ. Case No. 4797); Apr. 27, 1958: Memorandum-agreement among three partners (Exh. E).
- May 26, 1958: Garibay and Tubungbanua execute Assignment of Rights with Chattel Mortgage in favor of Saldajeno (Exh. F-F-T).
- May 18, 1959: Sheriff advertises auction of partnership assets (Exhs. G, G-1).
- Oct. 14–15, 1959: Saldajeno purchases mortgaged assets at sheriff’s sale for ₱38,040 (Exh. H).
- Oct. 20, 1959: Saldajeno sells assets to Pan Oriental Lumber Co. for ₱45,000 (Exh. T).
- Plaintiffs’ Claims and Proof of Indebtedness
- Oppen, Esteban, Inc.: ₱1,288.89 unpaid balance (stipulation).
- Agustin E. Tonsay: ₱933.73 unpaid advances (testimony, Exhs. B–G).
- Manuel G. Singson: ₱3,723.50 for rice, bran, nipa shingles (Exhs. J–L).
- Jose L. Espinos: ₱1,579.44 cash advance versus lumber (Exhs. N–O-3).
- Bacolod Southern Lumber Yard: ₱1,048.78 cash advance versus lumber (Exhs. P-Q-1).
- Jose Belzunce: ₱2,052.10 sale of petroleum products (Exhs. R–S).
Issues:
- Jurisdiction
- Whether CFI had jurisdiction over claims partly under ₱2,000 when action also sought nullity of chattel mortgage.
- Nullity of Chattel Mortgage and Annulment of Prior Judgments
- Whether a branch of CFI can annul a chattel mortgage approved and foreclosed in other branches (Civ. Cases 4797, 5223).
- Liability of Saldajeno as Auction Purchaser and Ex-Partner
- Whether Saldajeno, having bought mortgaged partnership assets, is primarily liable to partnership creditors.
- Effect of Partnership Dissolution
- Whether Saldajeno’s withdrawal dissolved “Isabela Sawmill” and terminated its obligations.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)