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[MAXIMILIANO SANCHO v. SEVERIANO LIZARRAGA](https://www.lawyerly.ph/juris/view/c1d02?user=fbGU2WFpmaitMVEVGZ2lBVW5xZ2RVdz09)
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55 Phil. 601

[ G. R. No. 33580, February 06, 1931 ]

MAXIMILIANO SANCHO, PLAINTIFF AND APPELLANT, VS. SEVERIANO LIZARRAGA, DEFENDANT AND APPELLEE.

D E C I S I O N

ROMUALDEZ, J.:

The plaintiff brought  an action for the rescission of a partnership contract  between himself and the defendant, entered into on October 15,  1920, the reimbursement by the latter of his  50,000  peso investment therein, with interest at 12 per  cent per  annum  from October 15, 1920, with costs, and any other just and equitable remedy against said defendant.

The defendant denies generally and specifically all the allegations of the complaint which are incompatible with his special defenses,  cross-complaint and counterclaim, getting up the latter and asking for the dissolution of the partnership, and the payment to him as its manager and administrator of P500 monthly from October 15, 1920, until the final dissolution,  with interest, one-half of said amount to be charged to the plaintiff.  He also prays for any other just and equitable remedy.

The Court of First Instance of Manila, having heard he cause, and finding it duly proved that the defendant had not contributed all the capital he had bound himself to invest, and that the plaintiff had demanded that the defendant liquidate the partnership, declared it dissolved on account of the  expiration of the period for which it  was constituted, and ordered the defendant, as managing partner, to proceed without delay to liquidate it, submitting to the court the result  of  the liquidation together with the accounts and vouchers within the period of thirty days from receipt of notice of said judgment, without costs.

The plaintiff appealed from said decision  making  the following assignments of error:
  1. In holding  that  the  plaintiff and appellant  is  not entitled to the rescission of the partnership contract, Exhibit A, and that article 1124 of the Civil Code is not applicable to the present case.

  2. In failing to order the defendant  to return the sum of P50,000  to the plaintiff  with interest from October 15, 1920, until fully paid.

  3. In denying the motion for a new trial."
In the brief filed by counsel for the appellee, a preliminary question is raised purporting to show that this appeal is premature and therefore will not lie.   The point is based on the contention that inasmuch as the liquidation ordered by the trial court, and the consequent accounts, have not been made and submitted, the case cannot be deemed terminated in said court and its  ruling is not yet appealable.  In support  of  this contention counsel cites section 123  of the Code of  Civil Procedure, and the decision of this court in the case of Natividad vs. Villarica  (31  Phil.,  172).

This contention is well founded.  Until the accounts have been rendered as ordered by the trial court, and  until they have been either  approved  or disapproved, the litigation involved in this action  cannot be considered as completely decided; and, as it was held in said case of Natividad vs. Villarica, also  with reference to an appeal taken from  a decision ordering the rendition of  accounts following the dissolution of a partnership, the appeal  in the instant case must be deemed premature.

But even going into  the merits of the case, the affirmation of the judgment appealed from is inevitable. In view of the lower court's  findings referred to above,  which we cannot revise  because the  parol  evidence has not been forwarded  to  this court, articles  1681 and  1682  of the Civil Code have  been  properly  applied.  Owing  to  the defendant's failure to  pay  to the  partnership the  whole amount which he bound himself to pay, he became indebted to it for the remainder, with  interest and any damages occasioned thereby, but the plaintiff did not thereby acquire the right to demand rescission of the  partnership contract according to article 1124 of the Code.   This article cannot be applied to the case in question, because it refers to the resolution of obligations in general, whereas articles  1681 and  1682 specifically refer to the contract of partnership in particular. And it is a well known principle that special provisions prevail  over general provisions.

By virtue of the foregoing, this appeal is hereby dismissed, leaving the  decision appealed from in full force, without special pronouncement of costs.  So ordered.

Avanceña, C. J., Johnson, Street, Malcolm, Villamor, Ostrand, Johns, and Villa-Real, JJ., concur.

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