- Petitioner
- Maritima
- Respondent
- Munoz
- Citation
- G.R. No. L-3704
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Willard, J.
- Decided
- December 12, 1907
Summary
La Compañia Maritima sued Francisco Muñoz & Sons partnership and individual partners for P26,828.30. The central issue was whether industrial partners in a general mercantile partnership are personally liable to third persons for partnership debts. The lower court held only the capitalist partner and partnership liable, exempting industrial partners. The Supreme Court reversed, establishing the landmark principle that all partners in a general mercantile partnership, including industrial partners, are jointly and severally liable to third persons for partnership obligations under Article 127 of the Code of Commerce. The Court distinguished between internal settlement of losses among partners (Article 141) and external liability to creditors, holding that industrial partners' participation in management and profits necessitates corresponding responsibility for partnership debts. This decision clarified Philippine commercial partnership law regarding partner liability.