ILDEFONSO DE LA ROSA vs.

ENRIQUE ORTEGA GO-COTAY

FACTS:
Chinamen Go-Lio and Vicente Go-Sengco formed a
partnership o f p u rc h a s e a n d s a l e o f a r t i c l e o f c o m m e rc e
i n N u e v a E c i j a , d u r i n g Spanish Regime. Go-Lio went to China,
where he later on died, leaving
aw i d o w a n d t h r e e c h i l d r e n . W h e n V i c e n t e G o S e n g c o d i e d h i s s o n , defendant Enrique Ortega Go-Cotay
took charge of the business. Plaintif Ildefonso dela Rosa was
appointed as administrator of the estate of Go-Sengco here
in the Philippines. As administrator, he requested for the
winding up of the partnership which was refused by defendant.
Plaintif fi led a complaint for the delivery of the one half of
all
thep r o p e r t y o f t h e p a r t n e r s h i p a n d h i s a p p o i n t m e n
t a s r e c e i v e r o f t h e property. The Court appointed three
commissioners to make an
inventorya n d l i q u i d a t e a l l o f t h e p r o p e r t y i n q u e s
t i o n . I n o r d e r t o p r e v e n t co m m i s s i o n e r C a b o
C h a n f ro m a s s u m i n g t h e o ffi c e o f re c e i v e r , th e
defendant filed a bond. The court later on adopted the report
submitted by commissioner Cabo-Chan, wherein it was
stated that the partnership incurred losses in the amount of
P89,099.22, in view of which the plaintif has nothing to recover,
as their was no profit to divide.
ISSUE:
Should the partnership bear the losses incurre
d u n d e r t h e management of defendant?
RULING:
No. Defendant Ortega Go-Cotay assumed complete
responsibility for the business by objecting to the
appointment of a receiver as prayed for by plaintif dela Rosa,
and by giving bond therefore. He ceases to be a managing

partner at that time in order to become a receiver and

while before that date the property was liable for his acts,
yet that is not
thec a s e w i t h h i s s u b s e q u e n t a c t s. Wi t h o u t j u d i c i a l
a u t h o r i t y h e c a n n o t c o n ti n u e th e b u s i n e s s o f p a r t n e r s h i
p , b e i n g p e r s o n a l l y l i a b l e f o r t h e losses.