Pedro Martinez v. Ong Pong Co

Summary

This 1910 Supreme Court case established important principles regarding partnership accountability and fiduciary duties. Martinez invested P1,500 with Ong Pong Co and Ong Lay to establish a store with equal profit-loss sharing. When the defendants failed to provide accounting after seven years, Martinez sued for accounting or refund. The Supreme Court affirmed liability but modified the award, holding that partners acting as administrators/agents must account for received funds under Civil Code mandatum provisions. Without proper accounting or proof of losses, defendants remained liable for the principal amount. The Court rejected speculative profit calculations but awarded the capital with legal interest from complaint filing. This case demonstrates the strict fiduciary duties of partners and the evidentiary burden required to prove business losses in partnership disputes.