G.R. No. L-12541 - Yulo vs. Yang Chiao Seng

The petition to reopen the case was filed on December 14, 1959, by attorneys representing plaintiffs-appellants Rosario U. Yulo and her husband, Jose C. Yulo.
The petition alleged that the relationship between Rosario U. Yulo and defendant-appellee Yang Chiao Seng, as lessor and lessee, had been definitively resolved by a previous decision of the Court of Appeals in the case involving Sta. Marina, et al., under G.R. No. 8143-R.

The Court of Appeals decision in the Sta. Marina case involved different parties—Emilia and Maria Carrion Sta. Marina as plaintiffs and Rosario U. Yulo together with Yang Chiao Seng as defendants.
The decision primarily addressed an ejectment action concerning the disputed land and focused on determining the reasonable rental value of the property.
In that decision, the issue was whether the rental value should be set at P3,000 (as argued by the plaintiffs) or P1,000 (as contended by the defendants), with the Court of Appeals holding that P3,000 represented the share of profits from a partnership rather than a rental fee.

The current action is centered on whether Rosario U. Yulo is a partner in the cinematograph business with Yang Chiao Seng or merely a sublessor in a sublessee arrangement.
There is a significant distinction between the identity of the parties, as the earlier action involved additional parties and different claims related to property rental, while the present dispute focuses solely on the contractual relationship between Rosario U. Yulo and Yang Chiao Seng.

Plaintiff-appellant Rosario U. Yulo contended that the relationship of partnership had already been adjudicated by the Court of Appeals, thereby precluding a re-litigation of the matter (res judicata).
The motion for reconsideration cited legal authority emphasizing that parties are not bound by judgments in subsequent controversies unless they were adversaries in the original case with an opportunity to litigate all pertinent issues.

Whether res judicata applies in this instance given that a previous decision was rendered regarding the relationship between Rosario U. Yulo and Yang Chiao Seng.

Consideration of whether the earlier decision involving the Sta. Marina case binds the parties in the current litigation.
Analysis of the differences in parties, issues, and causes of action between the two cases.

Whether the relationship between Rosario U. Yulo and Yang Chiao Seng should be construed as that of partners in a business or as a sublessor-sublessee arrangement.

Clarification of the nature of the contractual relationship between the litigants.
Examination of the evidence pertaining to partnership papers and the corresponding interpretation of the terms.