55. United Pioneers Gen. Construction Co.

, 65 S 544
Island Sales, Inc. v. United Pioneers General Construction Company, Et. AlG.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?
RULING:
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 somoving to dismiss the complaint, Island Sales merely condoned Lumauig’s individual
liability to them