10/15/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 065

554 SUPREME COURT REPORTS ANNOTATED

I la d Sale , I c. . U i ed Pi ee Ge . C .C .

*
No. L-22493. J l 31, 1975.

ISLAND SALES, INC., plain iff-appellee, . UNITED PIONEERS

GENERAL CONSTRUCTION COMPANY, ET. AL defendan .
BENJAMIN C. DACO, defendan -appellan .

Ci il la ; Pa e hi ; C d a i b c edi f ha e i
a e hi deb f e a e d e i c ea e a a liabili f he
a e . In he in an ca e, he e e e e gene al pa ne hen he
p omi o no e in q e ion a e ec ed fo and in behalf of he
pa ne hip . Since he liabili of he pa ne in a a, he liabili of he
appellan Benjamin C. Daco hall be limi ed o onl 1/5

_______________

* SECOND DIVISION.

555

VOL. 65, JULY 31, 1975 555

I la d Sale , I c. . U i ed Pi ee Ge . C .C .

of he obliga ion of he defendan compan . The fac ha he complain

again he defendan Rom lo B. L ma ig a di mi ed, pon mo ion of
he plain iff, doe no nmake he aid L ma ig a a gene al pa ne in he
defendan compan . In o mo ing o di mi he complain , he plain iff
me el condoned L ma ig indi id al liabili o he plain iff.

APPEAL f om a deci ion of he Co of Fi In ance of Manila.

Al endia, J.

The fac a e a ed in he opinion of he Co .

G e ,B e a e a & Sa iag fo plain iff-appellee.
A acle D. Bad , J . fo defendan -appellan .

CONCEPCION JR., J.:

cen al.com.ph/ f eade / e ion/000001752ba9cdc71c96173c003600fb002c009e/ /?o=Fal e 1/4

10/15/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 065

Thi i an appeal in e po ed b he defendan Benjamin C. Daco

f om he deci ion of he Co of Fi In ance of Manila, B anch
XVI, in Ci il Ca e No. 50682, he di po i i e po ion of hich
ead :

WHEREFORE, he Co en ence defendan Uni ed Pionee Gene al

Con c ion Compan o pa plain iff he m of P7,119.07 i h in e e a
he a e of 12% pe ann m n il i i f ll paid, pl a o ne fee hich
he Co e in he m of Eigh H nd ed Pe o (P800.00) and co .
The defendan Benjamin C. Daco, Daniel A. G i ona, Noel C. Sim
and A g o Pali oc a e en enced o pa he plain iff in hi ca e i h he
nde anding ha he j dgmen again he e indi id al defendan hall be
enfo ced onl if he defendan compan ha no mo e le iable p ope ie
i h hich o a i f he j dgmen again i .
The indi id al defendan hall al o pa he co .

On Ap il 22, 1961, he defendan compan , a gene al pa ne hip

d l egi e ed nde he la of he Philippine , p cha ed f om he
plain iff a mo o ehicle on he in allmen ba i and fo hi p po e
e ec ed a p omi o no e fo P9,440.00, pa able in el e (12)
eq al mon hl in allmen of P786.63, he in allmen pa able
on o befo e Ma 22, 1961 and he b eq en in allmen on he
22nd da of e e mon h he eaf e , n il f ll paid, i h he
condi ion ha fail e o pa an of aid in allmen a he fall d e
o ld ende he hole npaid balance immedia el d e and
demandable.
Ha ing failed o ecei e he in allmen d e on J l 22, 1961, he
plain iff ed he defendan compan fo he npaid

556

556 SUPREME COURT REPORTS ANNOTATED

I la d Sale , I c. . U i ed Pi ee Ge . C .C .

balance amo n ing o P7,119.07. Benjamin C. Daco, Daniel A.

G i ona, Noel C. Sim, Rom lo R. L ma ig, and A g o Pali oc
e e incl ded a co-defendan in hei capaci a gene al pa ne
of he defendan compan .
Daniel A. G i ona 1
failed o le an an e and a con eq en l
decla ed in defa l .
S b eq en l , on mo ion of he plain iff, he complain a
di mi ed 2 in ofa a he defendan Rom lo B. L ma ig i
conce ned.
When he ca e a called fo hea ing, he defendan and hei
co n el failed o appea no i h anding he no ice en o hem.
Con eq en l , he3 ial co a ho i ed he plain iff o p e en i
e idence e -pa e , af e hich he ial co ende ed he deci ion
appealed f om.
The defendan Benjamin C. Daco and Noel C. Sim mo ed o
econ ide he deci ion claiming ha ince he e a e e (5) gene al
pa ne , he join and b idia liabili of each pa ne ho ld no
e ceed one- f h (1/5) of he obliga ion of he defendan compan .
cen al.com.ph/ f eade / e ion/000001752ba9cdc71c96173c003600fb002c009e/ /?o=Fal e 2/4
10/15/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 065

B he ial co denied he aid mo ion no i h anding he

confo mi of he plain iff o limi he liabili of he defendan
Daco and Sim o 4onl one- f h (1/5) of he obliga ion of he
defendan compan . Hence, hi appeal.
The onl i e fo e ol ion i he he o no he di mi al of
he complain o fa o one of he gene al pa ne of a pa ne hip
inc ea e he join and b idia liabili of each of he emaining
pa ne fo he obliga ion of he pa ne hip.
A icle 1816 of he Ci il Code p o ide :

A . 1816. All pa ne incl ding ind ial one , hall be liable aa

i h all hei p ope and af e all he pa ne hip a e ha e been
e ha ed, fo he con ac hich ma be en e ed in o in he name and fo
he acco n of he pa ne hip, nde i igna e and b a pe on
a ho i ed o ac fo he pa ne hip. Ho e e , an pa ne ma en e in o a
epa a e obliga ion o pe fo m a pa ne hip con ac .

In he ca e of Co-Pi co . Y lo (8 Phil. 544) hi Co held:

_______________

1 p. 3a. RA
2 p. 4a, RA
3 p. 49, RA
4 pp. 56-57, RA

557

VOL. 65, JULY 31, 1975 557

I la d Sale , I c. . U i ed Pi ee Ge . C .C .

The pa ne hip of Y lo and Palacio a engaged in he ope a ion of a

ga e a e in Neg o . I a , he efo e, a ci il pa ne hip a di ing i hed
f om a me can ile pa ne hip. Being a ci il pa ne hip, b he e p e
p o i ion of a icle 1698 and 1137 of he Ci il Code, he pa ne a e no
liable each fo he hole deb of he pa ne hip. The liabili i aa
and in hi ca e Ped o Y lo i e pon ible o plain iff fo onl one-half of he
deb . The fac ha he o he pa ne , Jaime Palacio , had lef he co n
canno inc ea e he liabili of Ped o Y lo.

In he in an ca e, he e e e e (5) gene al pa ne hen he

p omi o no e in q e ion a e ec ed fo and in behalf of he
pa ne hip. Since he liabili of he pa ne i a a, he liabili
of he appellan Benjamin C. Daco hall be limi ed o onl one- f h
(1/5) of he obliga ion of he defendan compan . The fac ha he
complain again he defendan Rom lo B. L ma ig a di mi ed,
pon mo ion of he plain iff, doe no nmake he aid L ma ig a a
gene al pa ne in he defendan compan . In o mo ing o di mi
he complain , he plain iff me el condoned L ma ig indi id al
liabili o he plain iff.
WHEREFORE, he appealed deci ion a h cla i ed i he eb
AFFIRMED, i ho p ono ncemen a o co .
cen al.com.ph/ f eade / e ion/000001752ba9cdc71c96173c003600fb002c009e/ /?o=Fal e 3/4
10/15/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 065

SO ORDERED.

Makali al, C.J., Fe a d (Chai a ), Ba ed and

A i , JJ., conc .

Deci i af ed.

No e . A ale of land, made b he gene al manage of a

pa ne hip, b i e of he po e e ed in him b he a icle of
pa ne hip, hich ale a effec ed af e he in ol enc p oceeding
in ol ing he pa ne hip a e mina ed, i a alid ale (Ng Ch
Ci . Ng Di g, 1 SCRA 275).
B a ho i ing he ido of he managing pa ne o manage
pa ne hip p ope hich a limi ed pa ne co ld no be a ho i ed
o do, he o he gene al pa ne ecogni ed he a a gene al pa ne ,
and i no in e oppel o den he po i ion a a gene al pa ne , i h
a ho i o admini e and aliena e pa ne hip p ope (G i la
. S ci , 9 SCRA 663).
A emaining pa ne canno be held liable in hi pe onal capaci
fo he pa men of a pa ne ha e , fo he doe no hold hem
e cep a manage of, o ee fo , he pa ne hip

558

558 SUPREME COURT REPORTS ANNOTATED

I la d Sale , I c. . U i ed Pi ee Ge . C .C .

(Magd a . Alba a , 5 SCRA 511).

A con ac of pa ne hip o e ploi a hpond pending i a a d
o an q ali ed pa o applican i alid, b a con ac of
pa ne h ip o di ide he hpond af e ch a a d i illegal (Del a
. Ca eel, 26 SCRA 475; Del a . Ca eel, 29 SCRA 350.

o0o

55

C gh 2020 Ce a B S , I c. A gh e e ed.

cen al.com.ph/ f eade / e ion/000001752ba9cdc71c96173c003600fb002c009e/ /?o=Fal e 4/4