39 CO PITCO VS YULO

FACTS: Florencio Yulo and Jaime Palacios were partners in the operation of a sugar
estate in
Victorias, Island of Negros, and had commercial dealings with Dy-Sianco, who
furnished them
with money and goods and bought their crop of sugar. Pedro Yulo, Florencio’s
father, took
charge of Florencio's interest in the partnership and became a general partner
together with
Palacios.
Nicolas Co-Pitco finds that the balance due from the firm was Php1,638.40 and
orders judgment
against Pedro Yulo for the entire amount, with interest.
ISSUE: Whether or not Yulo is liable for the entire balance.
HELD: NO, because their partnership was a civil partnership. Articles 1698 and 1137
(Article
1816) of the Civil Code provide that the partners are not liable each for the whole
debt of the
partnership. The liability is pro rata and, in this case, Yulo is responsible to
Co-Pitco for only
one-half of the debt. The fact that the other partner, Jaime Palacios, had left the
country cannot
increase the liability of Pedro Yulo.