Also referred to as: 319 SCRA 246 (1999)
RELATED DOCTRINE: Doctrine of separate juridical personality.
FACTS: Aguila is the manager of A.C. Aguila & Sons Co., a partnership. They engaged in a contract of equitable mortgage with Abrogar regarding the latter’s property. Upon failure of Abrogar to redeem the property that she mortgaged to A.C. Aguila & Sons Co., the partnership sought to cancel her TCT and issue the new TCT to its name. Abrogar then filed a petition for declaration of nullity of a deed of sale and named Aguila as a real party in interest. Aguila argues that he is not the real party in interest; instead, it should be the partnership, A.C. Aguila & Sons Co.
ISSUE: Whether or not Aguila should be impleaded in a case regarding a partnership property.
DECISION: No, he should not be impleaded. A Partnership has a juridical personality separate and distinct from that of each of the partners. can’t be held liable for obligations of the partnership unless it shows that the legal fiction of different juridical personality is being used for fraudulent, unfair, or illegal purposes. In this case, said partnership was not used for such purposes.
The title was in the name of the partnership and Aguila merely represented it. It is not the officers who should be impleaded in any litigation involving property registered in its name. Violation of this rule will cause dismissal of the complaint.
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