Testate Estate of Mota v. Serra February 14, 1925 TESTATE ESTATE ESTATE OF LAZARO MOTA, deceased, ET AL., plaini!!s"appellans, #s. SAL$A%OR SERRA, de!endan"appellee. VILLAMOR, J.: SUMMARY: Serra, SUMMARY: Serra, as &'ner &! (al)a *enral, enered in& a c&nrac &! parners+ip 'i+ M&a e al, as &'ners &! San sidr& *enral, !&r +e c&nsruci& c&nsruci&n n &! a railr&ad railr&ad line. n said a-ree)en, a-ree)en, +ey sipulaed sipulaed +a epenses epenses 'ill be b&rne by b&+ paries 5/"5/ al+&u-+ al+&u-+ epenses 'ill be iniially !&r +e acc&un &! M&a e. al. Subse0uenly +&'e#er, Serra s&ld (al)a & +iaer 3 *&ncepci&n, +e laer epressin- a'areness &! abe c&nrac and 'illin-ness & subr&-ae +e)sel#es in& +e &bli-ai&ns +ere!&r. T+erea!er, *&ncepci&n 3 +iaer als& b&u-+ !r&) M&a e al. +e &! +e railr&ad line and +ey a-reed +a +e parners+ip "Palma" and and "San Isidro," !&r)ed !&r)ed be'een Serra 3 M&a e al, s+&uld be diss&l#ed up&n +e eecui&n &! +e c&nrac. Serra bein- unable & pay +is &bli-ai&n under +e c&nrac &! parners+ip 162 &! +e epenses7, M&a e. al. insiued an aci&n !&r c&lleci&n. As de!ense, Serra alle-ed +a a +e er)inai&n &! +e parners+ip be'een +e), +is &bli-ai&n +erein +as been ein-uis+ed. HELD: Serra is sill liable & +e parners+ip. DOCTRINE: T+e diss&lui&n &! a !ir) d&es n& relie#e any &! is )e)bers !r&) liabiliy liabiliy !&r eisin- &bli-ai&ns, al+&u-+ i d&es sa#e +e) !r&) ne' &bli-ai&ns & '+ic+ +ey +a#e n& epressly &r i)pliedly assened, and any &! +e) )ay be disc+ar-ed !r&) &ld &bli-ai&ns by nai&n &r &+er !&r) &! release. A partnership contines! even after "isso#tion! for the prpose of $in"in% p its affairs. affairs. A +e er)inai&n &! +e &b8ec !&r '+ic+ i 'as creaed +e parners+ip is ein-uis+ed, pendin- +e 'indin- up &! s&)e incidens and &bli-ai&ns &! +e parners+ip, bu in suc+ case, +e parners+ip 'ill be repued as eisin- unil +e 8uridical relai&ns arisin- &u &! +e c&nrac are diss&l#ed. A partnership cannot &e consi"ere" as e'tin%ishe" nti# a## the oi%ations pertainin% to it are f#fi##e". (ACTS: Feb. 1, 1919 %e!endan Sal#ad&r Serra, La:ar& M&a, n&' deceased, and ;uan ;. $idaurra:a-a !&r +i)sel! and in be+al! &! +is br&+er, Feli and %i&nisi& $idaurra:a-a, enered in& a contract of partnership !&r partnership !&r +e c&nsruci&n and epl&iai&n &! a railr&ad line &! ab&u 1/ )s. !r&) +e < San Isidro" and and
*enral o T+e epenses unil +e er)inai&n &! '+ic+ s+all be ! &r +e acc&un &! +e
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17 T+a +e deed &! Feb. 1, 1919 *&nrac &! (arners+ip7 be declared #alid and bindin-H 27 T+a a!er +e eecui&n &! +e said d&cu)en, Serra i)pred ec&n&)ically s& as & be able & pay M&a e al. +e a)&un &'ed, bu +a +e re!used & pay ei+er in par &r in '+&le +e said a)&un n&'i+sandin- +e se#eral de)ands )ade &n +i) !&r +e purp&seH and 7 Serra be senenced & pa y M&a e al. (11,/[email protected]@, 'i+ +e sipulaed ineres a 1/? p.a. o Serra se up +ree special de!enses 17 T+e nai&n &! +e c&nrac by +e subsiui&n &! +e deb&r 'i+ +e c&n!&r)iy &! +e credi&rsH o 27 +e c&n!usi&n &! +e ri-+s &! +e credi&r and deb&rH and o 7 +e ein-uis+)en &! +e c&nrac *&nrac &! parners+ip7 o TC: Abs&l#ed Serra !r&) +e c&)plain. T+ere 'as a nai&n &! +e c&nrac by +e subsiui&n &! +e deb&r. +iaer 3 *&ncepci&n, up&n purc+asin- +e o
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By #irue &! +e *&nrac &! Sale &n &! +e railr&ad, +e Tesae Esae &! La:ar& M&a e al. and (+il. *. +iaer and $enanci& *&ncepci&n, by c&))&n c&nsen, decided & diss&l#e +e parners+ip be'een <acienda (al)a< and <acienda San sidr&,< +us cancellin- +e c&nrac &! parners+ip &! February 1, 1919. TC: By +e er)inai&n &! +e parners+ip, as s+&'n by +e *&nrac &! Sale be. *&ncepci&n, +iaer 3 M&a e al, n& le-al ri-+s can be deri#ed +ere!r&). Serra: M&a e al. cann& en!&rce any ri-+ arisin- &u &! +a c&nrac &! parners+ip, '+ic+ +as been annulled, suc+ as +e ri-+ & clai) n&' a par &! +e c&s &! +e c&nsruci&n &! +e railr&ad line sipulaed in +a c&nrac. SC: Serras c&neni&n si-ni!ies +a any pers&n, '+& +as c&nraced a #alid &bli-ai&n 'i+ a parners+ip, is ee)p !r&) c&)plyin- 'i+ +is &bli-ai&n by +e )ere !ac &! +e diss&lui&n &! +e parners+ip. Serras c&neni&n is unenable. T+e diss&lui&n &! a parners+ip )us n& be unders&&d in +e abs&lue and sric sense s& +a at the ter*ination of the o&/ect for $hich it $as create" the partnership is e'tin%ishe"! pen"in% the $in"in% p of so*e inci"ents an" oi%ations of the partnership! &t in sch case! the partnership $i## &e repte" as e'istin% nti# the /ri"ica# re#ations arisin% ot of the contract are "isso#ve". SC of Spain 0(e&. 1! +,234: p+eld +is d&crine (ACTS: T+ere 'as a parners+ip !&r)ed be'een se#eral pers&ns & purc+ase s &)e lands s&ld by +e sae. T+e parners+ip paid +e purc+ase price and disribued a)&n- is )e)bers +e lands s& ac0uired. A!er +e lapse &! s&)e i)e, &ne &! +e parners insiued an aci&n in +e c&ur &! Bada8&:, prayin- +a +e be acceped o as a parner 'i+ +e sa)e ri-+s and &bli-ai&ns as +e &+ers, !&r +e reas&n +a +e +ad n& been all&'ed all +a +e +ad a ri-+ &. T+e c&ur -raned +e peii&n, '+ic+ 8ud-)en 'as a!!ir)ed by +e A(dien$ia de Ca$eres. o Fr&) +a decisi&n, +e &+er parner sued &u a 'ri &! err&r o T+ere is in!rin-e)en &! +e *i#il *&de since all contracts are reputed consummated and therefore extinguished, when the contracting parties fulfill all the obligations arisin- +ere!r&) By +e pay)en &! +e )&ney and +e -ranin- and disribui&n &! +e lands 'i+&u any &pp&sii&n, +e 8uridical relai&ns be'een +e c&nracin- paries bec&)e extinguished and none of the parties has any right of action under the contract. HELD: %enied +e 'ri. S&)e c&rreci&ns and li0uidai&ns ased by +e ac&r 'ere sill pendin-. T+e aricles cied 'ere n& in!rin-ed because a partnership cannot &e consi"ere" as e'tin%ishe" nti# a## the oi%ations pertainin% to it are f#fi##e". 11 Manresa, pa-e 12.7 / *yc., pa-e @59 The "isso#tion of a fir* "oes not re#ieve an) of its *e*&ers fro* #ia&i#it) for e'istin% oi%ations! a#tho%h it "oes save the* fro* ne$ oi%ations to $hich the) have not e'press#) or i*p#ie"#) assente"! an" an) of the* *a) &e "ischar%e" fro* o#" oi%ations &) novation of other for* of re#ease. It is often sai" that a partnership contines! even after "isso#tion! for the prpose of $in"in% p its affairs JTEREST Serra: As in +e aricles &! parners+ip &n Feb. 1, 1919, i 'as a-reed +a Serra '&uld pu up &! +e c&s &! +e railr&ad line 'i+in 5 years !r&) Feb. 1, 1919, 'i+ ineres a 1/? p.a. (resen aci&n is pre)aure since, !r&) +e eecui&n &! +e c&nrac unil +e dae &! +e c&)plain Oc. 25, 19227, +e 5 years, 'i+in '+ic+ +e Serra c&uld pay +is par &! +e c&s &! +e c&nsruci&n &! +e line, +ad n& ye elapsed. SC: Mora et.a# an" the sccessors in interest of the Serra! &) *ta# consent! "isso#ve" the partnership on 5ne +1! +,62! cance##in% the contract of partnership & all &! '+ic+ Serra c&nsened as e#idenced by +is alle-ai&ns in +is ans'er. T+us, +ere is no reason %or 'aiting %or the e)#iration o% * ears 'hi$h the #arties themseles had seen %it to sti#(late . T+e prisi&ns &! Ar. 11, re-ardin- +e !ul!ill)en &! pure &bli-ai&ns, )us be applied in +is case. DISOSITI7E: ;ud-)en appealed !r&) Re#ersed. Serra is indebed & Tesae Esae &! La:ar& M&a, et al ., !&r (11,/[email protected]@ 'i+ +e a-reed ineres 1/? p.a. !r&) +e dae &! +e !ilin- &! +e c&)plain. •
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