ATTY. JOAQUIN OBIETA
G.R. No. L-45441 MORA ELECTRIC CO. vs. MATIC
June 26, 1939
J.:
Petitioner:
Mora Electric Co., Inc.
Respondents:
Paulino Matic and Benita Quiogue Vda. Del Rosario ISSUE:
FACTS:
Matic obtained from Manila City a concession to provide the lighting system of Manila cemeteries on All Souls’ Day of 1934. The amount was P8,773 to be guaranteed by Luzon Surety Co. Matic then authorized Quiogue to contract with Mora Electric Co., Inc. for the installation materials and labor, and that both are under the duty to pay P8,773 to the City of Manila (which Mora Electric was to take from the payment made to it by Matic and Quiogue).
When the business failed, the parties did not pay the amount due to the City. Luzon Surety had to pay the said amount, and so it filed a suit of recovery against Matic and Quiogue. Both respondents also filed an action against Mora to recover the P8,773 from the latter.
The CFI and the Court of Appeals sentenced Mora Electric to pay the amount with interest. Mora then filed this petition for review on certiorari.
W/N Mora Electric is liable to pay the City of Manila as stipulated in its contract with Matic and Quiogue.
HELD: Yes, Mora Electric is liable.
RATIO: The Court of Appeals decided that, since petitioner bound itself to pay the City of Manila, he is obligated to reimburse whoever made good the payment, namely Matic and Quiogue. However, petitioner contended that the contract it had with Quiogue was a civil partnership, and that Quiogue should also share in the payment. It then invoked the provisions in the Civil Code regarding the distribution of profits and losses in a partnership. The liquidation of the partnership and the distribution of profits and losses are not the issue here. The amount sought to be recovered is neither a profit nor a loss, rather it is an amount which petitioner as a co-partner was bound to pay to the City of Manila, as evidenced by the contract it had with Quiogue. Petitioner committed a breach which prejudiced both respondents. As to the liquidation of the partnership, no financial report has been made by either party as to the profit or loss of the business, so it was impossible to determine whether or not there was indeed profit or loss.
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