Case Summary (G.R. No. 19621)
Factual Background
The Plaintiff asserts that on December 18, 1919, Jing Kee & Co. drew a draft for Y. 5,909.47 on Koon Kee & Co., which was accepted but later dishonored upon collection at maturity. Subsequently, the draft was reaccepted, but again, it was dishonored. To secure a bill of lading required by the Collector of Customs, the Plaintiff purchased the draft from the Bank of the Philippine Islands on August 3, 1920, for P7,845.94 and claims it is now entitled to the amount of the drafts, plus interest, asserting that the Defendants owe this sum due to their obligations.
Defendants' Response
Defendants Teng Kim Kuy and Teng Kim Tong demurred to the Plaintiff's complaint, arguing that it failed to state sufficient facts constituting a cause of action. After the demurrer was overruled, the Defendants filed an answer indicating that the Bank of Taiwan, Ltd. had delivered the bills of exchange along with the bills of lading to the Bank of the Philippine Islands with specific instructions that the bills of lading should only be delivered to the consignee upon payment of the drafts. They further contend that the Plaintiff had taken possession of the bills of lading and merchandise by paying the drafts under conditions of their endorsement.
Trial Court Proceedings and Judgment
The trial court ruled in favor of the Defendants, leading to an appeal by the Plaintiff. The main findings asserted by the court included that the Plaintiff had effectively secured the merchandise and allowed a third party to take possession, thereby discharging any liability from the Defendants. The court concluded that the drafts lacked consideration and dismissed the Plaintiff's complaint.
Legal Analysis of the Proceedings
The legal inquiries center around the acceptance of the drafts and the obligations arising from this acceptance. The answer filed by the Defendants admits key allegations about their membership in Jing Kee & Co. and Koon Kee & Co., acknowledging the draft's acceptance and subsequent dishonor. The implications of the bond provided by the Plaintiff to the Collector of Customs indicate that it was executed to ensure the delivery of merchandise to Koon Kee & Co., suggesting that the Plaintiff holds a valid interest in claiming the draft amounts.
Legal Principles and Liability
Under the provisions of the Code of Commerce, specifically Articles 127 and 148, all partners within a general partnership are jointly liable for the partnership's obligations. Given the acceptance of the drafts by Koon Kee & Co., liability attaches to them, creating a right for the Plaintiff to seek recompense for the amount due. The failure of the Defendants to prove any discharge or release from their obligations effectively maintains their liability.
Appellate Decision
The appellate court reversed the initial judgment
...continue readingCase Syllabus (G.R. No. 19621)
Case Overview
- Court: Supreme Court of the Philippines
- Decision Date: February 23, 1923
- G.R. No.: 19621
- Parties:
- Plaintiff: Union Guarantee Company, Ltd.
- Defendants: Jing Kee & Co. (a partnership), Teng Kim Kuy, Teng Kim Tong, and the Bank of Taiwan, Ltd.
Factual Background
- The plaintiff is a domestic corporation based in Manila.
- The defendant, Jing Kee & Co., is a partnership organized in Japan, operating both in Japan and Manila.
- The Bank of Taiwan, Ltd. is a corporation organized under Japanese banking laws with its principal office in Kobe.
- Koon Kee & Co. is another domestic partnership.
- On December 18, 1919, Jing Kee & Co. drew a draft on Koon Kee & Co. for Y. 5,909.47, payable sixty days after sight.
- The Bank of Taiwan endorsed the draft to the Bank of the Philippine Islands, which was accepted by Koon Kee & Co. on January 6, 1920.
- Upon maturity, the draft was dishonored, protested, and reaccepted for payment on April 5, 1920, but again dishonored.
- The plaintiff, as a surety, was required to produce the bill of lading for customs clearance and subsequently purchased the draft from the Bank of the Philippine Islands for P7,845.94.
- The plaintiff asserts that it is now the holder of the draft and seeks to recover the amounts due from the defendants.
Legal Proceedings
- Defendants Teng Kim Kuy and Teng Kim Tong filed a demurrer claiming the complaint lacked sufficient facts to constitute a cause of acti