Marsman Drysdale Land v. Philippine Geoanalytics

Summary

This case involves consolidated petitions arising from a joint venture dispute over payment to a technical services contractor. Marsman Drysdale and Gotesco entered a joint venture agreement for an office building project, with Marsman contributing land and Gotesco contributing cash. They engaged Philippine Geoanalytics (PGI) for geotechnical services, but the project was shelved due to economic conditions, leaving PGI unpaid for P535,353.50. The Supreme Court held both joint venturers jointly liable to PGI under Civil Code provisions on joint obligations, rejecting arguments that their internal JVA allocation could bind the third-party contractor. Applying partnership law on loss distribution, the Court ruled each partner bears equal liability consistent with their 50-50 profit sharing arrangement, while deleting any reimbursement between partners to prevent unjust enrichment. The decision establishes important precedent on joint venture liability to third parties and internal loss allocation under partnership principles.