Title
Mendezona vs. Vda. de Goitia
Case
G.R. No. 31739
Decision Date
Mar 11, 1930
Plaintiffs claimed unpaid dividends from Benigno Goitia, their attorney-in-fact, who collected but failed to remit funds from 1915-1926. Court affirmed jurisdiction, admissibility of evidence, and ordered accounting, ruling in favor of plaintiffs.

Case Summary (G.R. No. 31739)

Procedural Background

The claims for P5,940 by Mendezona and P376 by Izaguirre were initially presented to a committee of claims and appraisal, which disapproved them due to insufficient evidence. Upon their appeal, the plaintiffs amended their complaints, claiming larger amounts. The defendant raised several defenses, contending a lack of involvement or knowledge regarding the operations of the partnership during the time of Benigno Goitia's management.

Court Findings and Initial Ruling

The trial court found that Benigno Goitia had indeed acted as the attorney-in-fact for both plaintiffs in managing their shareholdings in the partnership. It was established that he had collected dividends for them until 1915 but failed to remit dividends from that year until his death in 1926. The court ordered the administratrix to provide an accounting of the amounts Goitia received on behalf of the plaintiffs, directed towards both obtaining transparency and rendering accountability.

Defendant's Challenges Upon Appealing

The defendant appealed the decision, specifically contesting the court's jurisdiction and the admissibility of the plaintiffs' amended complaints, which increased their claimed sums, and arguing against the plaintiffs' standing as real parties in interest. She also claimed procedural errors pertaining to the court's authority to enforce an accounting and the admissibility of prior depositions related to the case.

Court's Rationale and Legal Principles

The appellate court overruled the defendant's objections, reaffirming that under Section 776 of the Code of Civil Procedure, parties may amend their claims based on further evidence or information obtained after the initial presentations. The court determined that the changes merely reflected a deeper understanding of the facts rather than introducing new claims.

The court further emphasized the plaintiffs' rights as legitimate shareholders, dismissing the defendant's argument that they were not real parties in interest, relying on previous acknowledgments by Benigno Goitia of their ownership. Moreover, it clarified that the obligation placed on the administratrix to render an accounting was a standard provision enabling an examination of assets held in trust or fiduciary arrangements.

Conclusion of the Trial Court

The subsequent judgment calculated the total amounts due to each plaintiff, including dividends that Goitia had received but not remitted until his death. An interest was imposed, as Benigno Goitia had been negligent in his fiduciary duties towards the plaintiffs during the periods mentioned. The appellate court aff

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