PEDRO MARTINEZ VS.

ONG PONG CO AND ONG LAY

G.R. No. L-5236, January 10, 1910


FACTS:
Pedro Martinez (plaintiff) delivered Php.1,500.00 to Ong Pong Co and Ong Lay (defendants).
Said amount was reflected in a private instrument where the plaintiff and defendants agreed that
they are to invest the amount in a store, the profits or losses of which we are to divide with the
former, in equal shares. The store business was a failure and the plaintiff demanded from the
defendants either to render an accounting of the partnership as agreed to, or to refund him the
Php.1,500.00. Ong Pong Co alleged in his defense that his co-defendant Ong Lay, now deceased,
was the one who managed the business. He also alleged that nothing had resulted from the business
venture save the loss of the capital of Php.1,500.00, to which the plaintiff agreed.

ISSUE:
Upto what extent are partners liable?

HELD:
The partners are liable jointly. The defendants acted as administrators and as such, they were
obliged to render an accounting of the business. Since both failed in this aspect, they are obliged to
return the capital. Article 1688 of the Civil Code (Article 1796 of the New Civil Code) which provides
that the partnership is liable to every partner for the amounts he may have disbursed on account of
the same and for the proper interest does not apply to the case at bar since no other money than
the one contributed by the plaintiff was involved. The court ruled that Ong Pong Co should pay Pedro
Martinez the sum of Php.750.00 with the legal interest thereon, being liable jointly.