Island Sales vs United Pioneers Gen. Constr., G.R. No.

L-22493, July 31, 1975

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 1/5th (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.