ISLAND SALES VS.

UNITED PIONEERS
JULY 31, 1975

G.R. NO. L-22493

FACTS:
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 is
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 1/5 th (of the
companys 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 Lumauigs individual liability to them.