Petitioner
Dan Fue Leung
Respondent
Hon. Intermediate Appellate Court
Citation
G.R. No. 70926
Court
Supreme Court
Division
Third Division
Ponente
Gutierrez, Jr., J.
Decided
January 31, 1989

Summary

This partnership dispute involved Dan Fue Leung and Leung Yiu over Sun Wah Panciteria restaurant established in 1955. Leung Yiu sued claiming he was a partner who contributed P4,000.00 and was entitled to 22% of annual profits. Key evidence included a Chinese receipt acknowledging the contribution, a P12,000.00 check representing 1974 profit share, handwriting analysis confirming authenticity, and witness testimonies. Dan Fue Leung denied the partnership, claiming sole ownership through personal savings. All three court levels found sufficient evidence of partnership under Civil Code Article 1767, rejecting prescription defenses since a partner's right to accounting continues until dissolution. The Supreme Court affirmed the profit-sharing award but ordered partnership dissolution under Article 1831 due to inequitable continuation, establishing important precedent on partnership evidence requirements and accounting rights.

Statutes applied

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By Intellegal Editorial Board · January 31, 1989

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