Co-Pitco v. Yulo

Summary

This case involved a dispute over partnership liability between Nicolas Co-Pitco and Pedro Yulo arising from a sugar estate operation in Negros. Pedro Yulo had taken over his son's partnership interest with Jaime Palacios and continued dealing with the plaintiff Dy-Sianco. When the partnership owed 1,638.40 pesos, the trial court held Yulo liable for the full amount. The Supreme Court reversed, classifying this as a civil partnership under the Civil Code and applying articles 1698 and 1137, which limit partner liability to pro rata shares rather than joint and several liability. The Court reduced Yulo's liability to half the debt (819.20 pesos), establishing that one partner's departure cannot increase another's liability beyond their proportionate share in civil partnerships.