LA COMPAÑIA MARITIMA,Plaintiff-Appellant,

vs.
FRANCISCO MUÑOZ, ET AL.,Defendants-Appellees.

FACTS:

In 1905, Francisco Muñoz, Emilio Muñoz, and Rafael Naval formed on ordinary general mercantile
partnership under the name of Francisco Muñoz & Sons where Francisco Muñoz was a capitalist partner
and the two others were industrial partners. Herein Plaintiff-Appellant, sues the said partnership to
recover the sum of P26,828.30, with interest and costs. The Lower Court ruled in favor of the plaintiff
however, it acquitted Emilio Muñoz, and Rafael Naval as industrial partners. Hence, the present appeal.

ISSUE: Whether or not industrial partners can be relieved from liability to third persons for the debts of
the partnership.

RULING: NO, industrial partners cannot be relieved from liability to third persons for the debts of the
partnership.

According to the court there is no injustice in imposing this liability upon the industrial partners. They
have a voice in the management of the business, if no manager has been named in the articles; they share
in the profits and as to third persons it is no more than right that they should share in the obligations.

It was concluded that neither on principle nor on authority can the industrial partner be relieved from
liability to third persons for the debts of the partnership.