Francisco T. Figueras v. Rocha & Co.

Summary

This case involved a partnership withdrawal dispute where Francisco T. Figueras sought to recover amounts from Carman & Co. partnership, including claims to reserve and amortization funds. The Supreme Court reversed the lower court's award, holding that a withdrawing partner was entitled only to original capital, credited earnings, and account-current balance, but not to reserve or amortization funds. The Court applied Civil Code Article 1282, examining the parties' actual conduct throughout the partnership's existence, and found that these funds were intended as protection against business fluctuations rather than assets distributable to withdrawing partners. The decision established important precedent regarding partnership withdrawal rights and interpretation of partnership agreements based on parties' contemporaneous conduct rather than literal contract language alone.