G.R. No. L-22493 – 65 SCRA 554 – Civil Law – Partnership – Liability of Partners – Pro-rata – Condonation
United Pioneers General Construction Company is a general partnership formed by Benjamin Daco, Daniel Guizona, Noel Sim, Augusto Palisoc, and Romulo Lumauig. In 1961, United Pioneers purchased by installment a motor vehicle from Island Sales, Inc. United Pioneers defaulted in its payment hence it was sued and the 5 partners were impleaded as co-defendants.
Upon motion of Island Sales, Lumauig was removed as a defendant.
United Pioneers lost the civil case and the trial court rendered judgment ordering United Pioneers to pay the outstanding balance plus interest and costs. It further decreed that the remaining 4 co-defendants shall pay Island Sales in case United Pioneers’ property will not be enough to satisfy its indebtedness to Island Sales.
ISSUE: What is the extent of the liability of the partners considering that one partner was removed as a co-defendant on motion of Island Sales?
HELD: Their liability is pro-rata pursuant to Article 1816 of the Civil Code. But it should be noted that since there were 5 partners when the purchase was made in behalf of the partnership, the liability of each partner should be 1/5th (of the company’s obligation) each. The fact that the complaint against Lumauig was dismissed, upon motion of the Island Sales, does not unmake Lumauig as a general partner in the company. In so moving to dismiss the complaint, Island Sales merely condoned Lumauig’s individual liability to them.
