- Petitioner
- Sunga-Chan
- Respondent
- Chua
- Citation
- G.R. No. 143340
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Gonzaga-Reyes, J.
- Decided
- August 15, 2001
Summary
This case involves a partnership dispute where Lamberto Chua claimed he had a verbal partnership with deceased Jacinto Sunga in operating Shellite Gas Appliance Center from 1977. After Jacinto's death in 1989, his wife and daughter took over the business without providing accounting to Chua. The Supreme Court affirmed lower courts' findings that a valid partnership existed, rejecting petitioners' invocation of the Dead Man's Statute since they filed a compulsory counterclaim. The Court emphasized that partnerships may be formed verbally and non-registration with SEC doesn't invalidate the partnership among partners. The decision established important precedents on partnership law, the Dead Man's Statute's application, and the rights of surviving partners to demand accounting within the prescriptive period.
Intellegal Wiki · Key Holding
Denied the petition and affirmed the CA, holding that the Dead Man's Statute did not bar the claim because petitioners filed a compulsory counterclaim, that a partnership may be constituted verbally and non-registration with the SEC does not invalidate it among the partners, and that the action was filed within the six-year prescriptive period for oral contracts.
An editorially maintained summary of the rule this Supreme Court decision is cited for — not legal advice.