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    Case No. 7 Vargas and Co. v. Chan

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    Marian a
    This case discusses whether summons needs to be served to all partners in a partnership. The Court held that a registered partnership is a separate legal entity that can sue and be sued in its company name. Summons only needs to be served to the managing agent of the partnership, not all individual partners. The longstanding practice in the Philippines, even before American occupation, was to treat partnerships as independent legal persons that can own property, enter contracts, and file lawsuits using the company name rather than the names of each partner. Articles 35 and 38 of the Civil Code provide the basis for partnerships being considered judicial persons with independent legal personalities from their members.

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    Case No. 7 Vargas and Co. v. Chan

    Uploaded by

    Marian a
    324 views2 pages
    This case discusses whether summons needs to be served to all partners in a partnership. The Court held that a registered partnership is a separate legal entity that can sue and be sued in its company name. Summons only needs to be served to the managing agent of the partnership, not all individual partners. The longstanding practice in the Philippines, even before American occupation, was to treat partnerships as independent legal persons that can own property, enter contracts, and file lawsuits using the company name rather than the names of each partner. Articles 35 and 38 of the Civil Code provide the basis for partnerships being considered judicial persons with independent legal personalities from their members.

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    Case-No.-7-Vargas-and-Co.-v.-Chan

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    This case discusses whether summons needs to be served to all partners in a partnership. The Court held that a registered partnership is a separate legal entity that can sue and be sued in its company name. Summons only needs to be served to the managing agent of the partnership, not all individual partners. The longstanding practice in the Philippines, even before American occupation, was to treat partnerships as independent legal persons that can own property, enter contracts, and file lawsuits using the company name rather than the names of each partner. Articles 35 and 38 of the Civil Code provide the basis for partnerships being considered judicial persons with independent legal personalities from their members.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    324 views2 pages

    Case No. 7 Vargas and Co. v. Chan

    Uploaded by

    Marian a
    This case discusses whether summons needs to be served to all partners in a partnership. The Court held that a registered partnership is a separate legal entity that can sue and be sued in its company name. Summons only needs to be served to the managing agent of the partnership, not all individual partners. The longstanding practice in the Philippines, even before American occupation, was to treat partnerships as independent legal persons that can own property, enter contracts, and file lawsuits using the company name rather than the names of each partner. Articles 35 and 38 of the Civil Code provide the basis for partnerships being considered judicial persons with independent legal personalities from their members.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    CASE NO. 7 – VARGAS & CO. vs. CHAN HANG CHIU, et al.

    G.R. No. L-8576, February 11, 1915


    Doctrine: A partnership, duly organized and registered under the laws of the Philippine Islands,
    is a legal entity capable of suing and of being sued in the company name.
    Facts: On August 19, 1911, Chan Hang Chiu began an action against Vargas and Company. to
    recover a sum of money. The complaint and the summons were served on it, with the sheriff
    leaving a copy with Jose Macapinlac who is the managing agent of the company. On July 2, 1912,
    the court rendered judgment against Vargas and Company for P372.28. The judgment was
    executed, and the property was levied on for payment of the judgment cost. Vargas and Company
    paid the amount under protest and gave a notice that it would sue to recover the amount. Vargas
    and Company contends that being a partnership, it is necessary to serve summons on all the
    partners.
    Issue: Whether summons should be served on all the partners
    Held: No. We may say that it has been the universal practice in the Philippine Islands since
    American occupation, and was the practice prior to that time, to treat companies of the class to
    which the plaintiff belongs as legal or juridicial entities and to permit them to sue and be sued in
    the name of the company, the summons being served solely on the managing agent or other official
    of the company specified by the section of the Code of Civil Procedure referred to. This very action
    is an illustration of the practice in vogue in the Philippine Islands. The plaintiff brings this action
    in the company name and not in the name of the members of the firm. Actions against companies
    of the class to which plaintiff belongs are brought, according to the uninterrupted practice, against
    such companies in their company names and not against the individual partners constituting the
    firm. From what has been said it is apparent that the plaintiff in this action is acting contrary to its
    own contention by bringing the action in the name of the company be served with process, then
    the action should be brought in the individual names of the partners and not in the name of the
    company itself. Article 35 of the Civil Code provides:

    The following are judicial persons:

    1. The corporation, associations, and institutions of public interest recognized by law.

    2. The associations of private interest, be they civil, commercial, or industrial, to which


    the law grants proper personality, independent of that of each member thereof.

    Article 38 provides: "Judicial persons may acquire and possess property of all kinds, as well as
    contract obligations and institute civil or criminal actions in accordance with the laws and rules
    of their establishment." These provisions have been the foundation of the practice followed
    without interruption for many years that association of the class to which plaintiff belongs have
    an independent and separate legal entity sufficient to permit them to sue and be sued in the
    company name and to be served with process through the chief officer or managing agent thereof
    or any other official of the company specified by law.

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