Condonation by creditor of share in partnership debt of one partner does not increase pro rata liability of other partners.Full description
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Isla Islan nd Sale Sales s v. Unit United ed 65
incr increa eas se
Cond Condon onat atio ion n
pro pro
plai lainti* nti*
to
pres presen entt
its
rendered the decision appealed from. by
cred credit itor or
of
share in partnership debt of one partner does not
the the
e+idence e,=parte & after )hich the trial cort
SCRA 554 DOCTRINE:
atho thorri
rata liabi iabili litty
of
other ther
partners.
The defendants :en;amin C. Daco and Noel C. Sim Sim mo+e mo+ed d to recon econsi side derr the the deci decisi sion on claimin' that since there are 7+e (?% 'eneral partners& the ;oint and sbsidiary liability of
FACTS:
each partner shold note,ceed one=7fth (0@?%
The defendant company ( UNITED PIONEERS
of the obli'ations of the defendant company.
ENER!" CONSTRUCTION CO#P!N$ ET .!" %&
:t the trial trial cort cort denied denied the said motion motion
a 'eneral partnership dly re'istered nder
not) not)it iths hsta tand ndin in' '
the la)s of the Philippines& prchased from
plainti* to limit the liability of the defendants
thepl theplain ainti* ti* ( IS"!ND IS"!ND S!"ES& S!"ES& INC% a motor motor
Daco and Sim to only one=7fth (0@? % of the
+ehi +ehicl cle e on inst instal allm lmen entt basi basis s and and for for this this
obli'ations of the defendant company.8ence&
prp prpos ose e
this appeal.
e,ec e,ect ted ed
apr apromis omisso sory ry
note note
for for
the the
conf confor ormi mity ty
of
the the
P-& P&/ /./ .//& /& paya payabl ble e in t)el t)el+e +e (01% (01% e2a e2all monthl monthly y instal installme lments nts of P345.5 P345.56& 6& the 7rst 7rst
ISSUE:
instal installme lment nt payabl payable e on or befor before e #ay 11&
partnerAs share in the debts of the company
0-50 and the sbse2ent installments on the
increases the remainin' partnersA liabilityB
>hether the condonation of a
11nd 11nd day day of e+ery e+ery month month there thereaf after ter&& ntil ntil flly paid& )ith the condition that failre to
RULING:
pay any of said installments asthey fall de
No. In the instant case& there )ere 7+e (?%
)ol )old d rende enderr the the )hol )hole e npa npaid id bala balanc nce e
'eneral partners )hen the promissory note
immediately de and demandable.
in 2estion )as e,ected for and in behalf of the the part partne ners rshi hip. p. Sinc Since e the the liab liabil ilit ity y of the the
8a+in' failed to recei+e the installment de
part partne ners rs is pro pro rata rata&& the the liab liabil ilit ity y of the the
on 9ly 9ly 11 11&& 00-50 50&& the the plai plaint nti* i* s sed ed the the
appellant :en;amin C. Daco shall be limited
defendant company for the npaid balance
to only one=7fth ( 0@ ? % of the obli'ations of
amontin' to P3&00-./3. :en;amin C. Daco&
the defend defendant ant compan company y. The fact fact that that the
Daniel !. i
complaint a'ainst the defendant Romlo :.
"mai'& and !'sto Palisoc )ere inclded
"mai' )as dismissed& pon motion of the
as co=defendants in their capacity as 'eneral
plainti*& does not nmae the said "mai'
partners of the defendant company.
as a 'en 'enera eral comp compa any.
partn artner er in
the the
defen efend dant ant
In so mo+i mo+in' n' to dismi ismis ss
the
Daniel !. i
compla complain int& t& the plaint plainti* i* merely merely condo condoned ned
)as )as
"mai's indi+idal indi+idal liability to the plainti*.
cons conse2 e2e ent ntly ly
decl declar ared ed
in
defa defal lt. t.
Sbse2ently& on motion of the plainti*& the comp compla lain intt )as )as dism dismis isse sed d inso insofa farr as the the
RATIO RATIO:: Articl Article e !6 !6 "# t$e Civil Civil C"de C"de
defendant Romlo :. "mai' is concerned.
pro+ides
>hen the case )as called for hearin'& the
%All &artners incl'din( ind'strial "nes)
defe defend ndan ants ts and and thei theirr con conse sels ls fail failed ed to
s$al s$alll *e lia* lia*le le &r" &r" rata rata +it$ +it$ all all t$ei t$eir r
appear not)ithstandin' the notices sent to them.
Conse2ently&
the
trial
cort
&r"&ert, and a#ter all t$e &artners$i& assets assets $ave $ave *een *een ee-$a' $a'st sted ed)) #"r t$e
c"ntracts +$ic$ a, *e entered int" in t$e nae and #"r t$e acc"'nt "# t$e &artners$i&) 'nder its si(nat're and *, a &ers"n a't$"ri/ed t" act #"r t$e