LAW ON PARTNERSHIP

Second Semester 2012-2013 January A. Sanchez I. INTRODUCTION A. Definition - Art. 1767 Jarantilla v. Jarantilla, G.R. No. 154486, 1 December 2010 Villareal v. Jimenez, 453 Phil. 999 (2003) B. Partnership distinguished from other contractual relationships/juridical entities (Corporation, Co-ownership, Joint Venture, Associations, Employment) - Arts. 1768, 1775 Estanislao, Jr. v. Court of Appeals, 160 SCRA 830 (1988) Litonjua v. Litonjua, G.R. NO. 166299-300, 13 December 2005 Pascual v. Commission of Internal Revenue, 166 SCRA 560 (1988) Mendiola v. Court of Appeals, 497 SCRA 346 (2006) Tuazon v. Bolanos, 95 Phil 106 (1954) Primelink Properties & Development Corp. v. Lazatin-Magat, 493 SCRA 444 (2006) Heirs of Tan Eng Kee v. Court of Appeals, supra Realubit v. Jaso, G.R. No. 178782, 21 September 2011 Sy v. Court of Appeals, G.R. No. 142293, 27 February 2003 Lirio v. Genovia, G.R. No. 169757, 23 November 2011 C. Essential features, elements, formal requirements Arts. 1772, 1773 Evangelista v. Collector of Internal Revenue, 102 Phil 140 (1957) Fernandez v. Dela Rosa, 1 Phil 670 (1903) Gallemit v. Tabiliran, 20 Phil 241 (1911) Gatchalian v. Collector of Internal Revenue (CIR) 67 Phil. 666 (1939) Yulo v. Yang Chiao Seng, 106 Phil 110 (1959) Fue Leung v. Intermediate Appellate Court, 169 SCRA 746 (1989) Navarro v. Court of Appeals, 222 SCRA 675 (1993) Lyons v. Rosentock, 56 Phil 632 (1932) Tuazon v. Bolanos, supra Collector of Internal Revenue v. Batangas Transit Co., 102 Phil 822 (1958) Abong v. Workmen's Compensation Commission, 54 SCRA 379 (1973) Aurbach v. Sanitary Wares Manufacturing Corp., 180 SCRA 130 (1989) Arbes v. Polistico, 53 Phil 489 (1929) Deluao v. Casteel, 26 SCRA 475 (1968) Woodhouse v. Halili, G.R. L-4811 (31 July 1953) Ortega v. Court of Appeals, 245 SCRA 529 (1995) Lim Tong Lim v. Philippine Fishing Gear Industries, Inc., 317 SCRA 728 (1999) Torres v. Court of Appeals, 320 SCRA 428 (1999) Tocao v. Court of Appeals, 342 SCRA 20 (2000)

Borja v. Addison, 44 Phil 895 (1922) Magalona v. Pesayco, 59 Phil 453 (1934) Agad v. Mabato, 23 SCRA 1223 (1968) Pioneer Insurance & Surety Corp. v. Court of Appeals, 175 SCRA 668 (1989) D. Rules to determine existence of a partnership - Art. 1769 Hong Kong and Shanghai Bank v. Jurado, 2 Phil 671 (1903) Vargas & Co. v. Chan Hang Chiu, 29 Phil 446 (1915) Lopez v. Yu Sefao, 31 Phil 319 (1915) Campos Rueda & Co. v. Pacific Commercial Co., 44 Phil 916 (1922) Ona v. Commissioner of Internal Revenue, 45 SCRA 74 (1972) Singsong v. Isabela Sawmill, 88 SCRA 623 (1979) Pascual v. Commission of Internal Revenue, 166 SCRA 560 (1988) Yu v. National Labor Relations Commission, 224 SCRA 75 (1993) Heirs of Tan Eng Kee v. Court of Appeals, 341 SCRA 740 (2000) Philex Mining v. Commissioner of Internal Revenue, 551 SCRA 428 (2008) E. Kinds of Partnerships Arts. 1776 to 1783 1. General v. limited (See Part IV below) 2. Universal v. particular 3. Professional Partnership Commissioner of Internal Revenue v. Suter, 27 SCRA 152 (1969) F. Partnership by Estoppel Art. 1825 Macdonald, et al. v. The National City bank of New York, G.R. No. L-7991 21 May 1956 II. RIGHTS AND OBLIGATIONS OF PARTNERSHIP A. Rights and Obligations of Partners Among Themselves Articles 1784 to 1809 1. Contribution of property Art. 1786 City of Manila v. Gambe, 13 Phil 677 (1909) Sancho v. Lizarraga, 55 Phil 601 (1930) Lozana v. Depakakibo, 107 Phil. 728 (1960) Evangelista & Co. v. Abad Santos, 51 SCRA 416 (1973) Estanislao v. Court of Appeals, supra Rojas v. Maglana, 192 SCRA 110 (1990) 2. Profits and Losses Art. 1797 Compania Maritima v. Muoz, 9 Phil 326 (1907) Moran v. Court of Appeals, 133 SCRA 99 (1984) 3. Books, Information, Accounts Pardo v. Hercules Lumber Co. and Ferrer, 47 Phil 964 (1924)

Strong v. Repide, G.R. No. 2101 (15 November 1906) Ornum v. Lasala, 74 Phil 242 (1943) Fue Leung v. Intermediate Appellate Court, supra. 4. Fiduciary Duty Tuason & San Pedro v. Zamora & Sons, 2 Phil 205 (1903) Machuca v. Chuidian, Buenaventura & Co., 2 Phil 153 (1903) Aldecoa and Co. v. Warner, Barnes and Co., 30 Phil 153 (1910) Pabalan v. Velez, 22 Phil 29 (1912) Hanlon v. Hausserman, 40 Phil 818 (1920) Teague v. Martin, 53 Phil 504 (1929) Soncuya v. De Luna, 67 Phil 646 (1939) Catalan v. Gatchalian, G.R. No. L-11648 (22 April 1959) Evangelista & Co. v. Abad Santos, supra. Lim Tanhu v. Ramolete, 66 SCRA 425 (1975) B. Property Rights of a Partner Arts. 1810 to 1814 United States v. Clarin, 17 Phil 84 (1910) Celino v. Court of Appeals, 163 SCRA 97 (1988) Machuca v. Chuidian, Buenaventura & Co., supra Garcia v. La Compania de Minas de Batan, 12 Phil 130 (1908) Bachrach v. La Protectora, 37 Phil 441 (1918) Litton v. Hill and Ceron, 67 Phil 509 (1939) Clemente v. Galvan, 67 Phil. 565 Leyte-Samar-Sales and K. Tomassi v. S. Cea and O. Castrilla, 93 Phil. 100 (Additional ref: Bautista, Esteban :Property Rights of a Partner, 52 PLJ 498 [1977]) C. Obligations of Partners With Regard to Third Persons Arts. 1815 to 1827 1. Partnership Name Philippine National Bank v. Lo, 52 Phil 802 (1927) Sharruf & Co. v. Baloise Fire Insurance Co., 62 Phil 258 (1937) In re: SyCip, Salazar, Feliciano, Hernandez & Castillo, 92 SCRA 1 (1979) 2. Partners as Mutual Agents Martinez v. Cordoba & Conde, 5 Phil 545 (1906) Ormachea v. Trillana, 13 Phil 194 (1909) De la Rosa v. Ortega Go-Cotay, 48 Phil 605 (1926) Goquiolay v. SyCip, 9 SCRA 663 (1969) Muasque v. Court of Appeals, 139 SCRA 533 (1985) 3. Partnership Acts Sunico v. Chuidian, 9 Phil 625 (1908) Vargas & Co. v. Chan Hang Chiu, 29 Phil 446 (1915)

De los Reyes v. Lukban and Borja, 35 Phil 757 (1916) Pacific Commercial Co. v. Aboitiz & Martinez, 48 Phil 843 (1926) Leoncia vda. De Chan Diaco v. Peng, 53 Phil 906 (1928) Claudio v. Zandueta, 64 Phil 812 (1937) Ngo Tian Tek v. Philippine Education Co., Inc., 78 Phil 271 (1947) Liwanag v. Workmen's Compensation Commission, 105 Phil 741 (1959) Island Sales, Inc. v. United Pioneers Gen. Const. Co., 65 SCRA 554 (1975) Tai Tong Chuache & Co. v. Insurance Commission, 158 SCRA 366 (1988) III. DISSOLUTION AND WINDING UP Articles 1828 to 1842 A. Grounds/Causes Jackson v. Blum, 1 Phil 4 (1901) Lichauco v. Soriano, 26 Phil 593 (1914) Lichauco v. Lichauco, 33 Phil 350 (1916) Bearneza v. Dequilla, 43 Phil 237 (1922) Testate Estate of Mota. v. Serra, 47 Phil 464 (1925) Guidote v. Borja, 53 Phil 900 (1928) Uy v. Puzon, G.R. No. L-19819 (26 October 1977) Recentes v. Court of First Instance, 123 SCRA 778 (1983) Rojas v. Maglana, 192 SCRA 110 (1990) B. Consequences 1. Termination of authority 2. Continuation 3. Rights and Obligations of Parties upon dissolution Singsong v. Isabela Sawmill, supra. Yu v. National Labor Relations Commission, supra. C. Settlement of Accounts Lota v. Tolentino, 90 Phil 929 (1952) Magdusa v. Albaran, 5 SCRA 511 (1962) Goquiolay v. Sycip, 108 Phil. 947 Goquiolay v. Sycip, 9 SCRA 663, Resolution of Motion for Reconsideration IV. LIMITED PARTNERSHIP - Arts. 1843 to 1867 A. Definition B. How formed/amended C. Rights, Obligations, and Liabilities of a Limited Partner D. Dissolution Hung Man Yoc v. Kieng Chion Seng, 6 Phil 498 (1906) Jo Cung Cang v. Pacific Commercial Co., 45 Phil 142 (1923) Tec Bi v. Collector of Internal Revenue, 61 Phil 351 (1935) Collector of Internal Revenue v. Isasi, 107 Phil 247 (1957) Goquiolay v. SyCip, supra