75. Island Sales, Inc. v. United Pioneers General Construction Company, Et. AlG.R. No.

L-
22493, July 31, 1975

FACTS:United Pioneers General Construction Company is a general partnership formed by
Benjamin Daco, Daniel Guizona, Noel Sim, Augusto Palisoc and Romulo Lumauig. In 1961, United
Pioneers purchased by installment a motor vehicle from Island Sales, Inc. United Pioneers defaulted
in its payment hence it was sued and the 5 partners were impleaded as co-defendants.
Upon motion of Island Sales, Lumauig was removed as a defendant.
United Pioneers lost the civil case and the trial court rendered judgment ordering United Pioneers to
pay the outstanding balance plus interest and costs. It further decreed that the remaining 4 co-
defendants shall pay Island Sales in case United Pioneers property will not be enough to satisfy its
indebtedness to Island Sales.

ISSUE: What is the extent of the liability of the partners considering that one partner was removed
as a co-defendant on motion of Island Sales?

HELD: Their liability is pro-rata pursuant to Article 1816 of the Civil Code. But is should be noted that
since there were 5 partners when the purchase was made in behalf of the partnership, the liability of
each partner should be 1/5
th
(of the companys obligation) each. The fact that the complaint against
Lumauig was dismissed, upon motion of the Island Sales, does not unmake Lumauig as a general
partner in the company. In so moving to dismiss the complaint, Island Sales merely condoned
Lumauigs individual liability to them.