Josefina P. Realubit v. Prosencio D. Jaso

Summary

This case involves a dispute over the validity and consequences of an assignment of rights in a joint venture for ice manufacturing business. Josefina Realubit entered into a joint venture with French national Francis Biondo in 1994. In 1997, Biondo assigned his rights to Eden Jaso for P500,000. When the Spouses Jaso demanded accounting and their share of profits, Realubit refused, claiming the assignment was invalid and the joint venture had dissolved. The Supreme Court upheld the validity of the assignment as a properly notarized public document, but confirmed that the assignee does not become a partner and cannot demand accounting until dissolution. The Court ordered dissolution of the joint venture and subsequent accounting, applying Civil Code provisions on partnerships. The decision clarifies the legal effects of assignment of partnership interests under Philippine partnership law.