Sunga-Chan v. Chua

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.