Pang Lim et al v. Lo Seng Facts: 1. Pang Lim and Lo Lo Seng were were partners partners under under the frm frm name, Lo Lo Seng & Co. The partnership was in the business o running a distillery 2. The land on whih whih the distillery distillery was build build was leased leased rom another, another, Lo !ao, through his agent Lo Shui. ". #pon e$piration e$piration o the lease, a ontrat to to e$tend the lease or 1% years years was entered into by the parties . Late Laterr on, Lim sold ALL his interest in the distillery to Seng 'inluding his interest in the lease(. %. Lo Shui, Shui, as agent agent o Lo Lo !ao, !ao, conveyed the land to Pang Lim and )enito *al+e. -owe+er, Lo Seng reused to yield the property ausing Lim and *al+e to institute an ation or unlawul detainer against Seng. Justice of Peace: a+ored Lim and *al+e CFI: #pheld Issue: /hether it is ontrary to law or partner who has let the partnership may, ater his departure, use inormation 0nown to him by reason o the partnership or his own beneft. Held: !es, !es, it is ontrary ontrary.. Ratio: 1. n business relations, relations, partners are reuired reuired to e$hibit towards towards eah other the highest degree o good aith. The relation o the partners is essentially duciary as one is the condential agent of the other . 2. The partner annot, to the detriment detriment o another, another, apply e$lusi+ely e$lusi+ely to his own beneft, 0nowledge and inormation gained as a partner. R!: "#$ the %nla&ful 'etainer action may (ros(er Held: 3o, it may not. Ratio: 1. n an ation ation or unlawul unlawul detainer, detainer, the uestion to to be resol+ed resol+ed is that o the the right to possession. t must be shown that the oupant4s possession possession is unlawul. 2. n selling all all his share share in the partnership, partnership, Lim li0ewise li0ewise sold his interest interest in the lease. -ene, Lo Seng beame the owner o suh rights in the lease. Lim annot terminate the lease on the basis that he is estopped rom the sale 'estoppel by deed(.
