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    Leoncia Vda. de Chan v. Peng

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    Shailah Leilene Arce Briones
    1) Leoncia Vda. de Chan Diaco was declared insolvent based on claims from creditors that she owed them money as the owner of a grocery store. 2) Leoncia argued the proceedings should have been against an alleged partnership "Lao Liong Naw & Co." that she was a member of. 3) An investigation found the partnership was fictional and created to deceive authorities, so the court affirmed Leoncia's individual liability.

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    Leoncia Vda. de Chan v. Peng

    Uploaded by

    Shailah Leilene Arce Briones
    274 views1 page
    1) Leoncia Vda. de Chan Diaco was declared insolvent based on claims from creditors that she owed them money as the owner of a grocery store. 2) Leoncia argued the proceedings should have been against an alleged partnership "Lao Liong Naw & Co." that she was a member of. 3) An investigation found the partnership was fictional and created to deceive authorities, so the court affirmed Leoncia's individual liability.

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    1) Leoncia Vda. de Chan Diaco was declared insolvent based on claims from creditors that she owed them money as the owner of a grocery store. 2) Leoncia argued the proceedings should have been against an alleged partnership "Lao Liong Naw & Co." that she was a member of. 3) An investigation found the partnership was fictional and created to deceive authorities, so the court affirmed Leoncia's individual liability.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    274 views1 page

    Leoncia Vda. de Chan v. Peng

    Uploaded by

    Shailah Leilene Arce Briones
    1) Leoncia Vda. de Chan Diaco was declared insolvent based on claims from creditors that she owed them money as the owner of a grocery store. 2) Leoncia argued the proceedings should have been against an alleged partnership "Lao Liong Naw & Co." that she was a member of. 3) An investigation found the partnership was fictional and created to deceive authorities, so the court affirmed Leoncia's individual liability.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    LEONCIA VIUDA DE CHAN DIACO v. JOSE S. Y.

    PENG

    Facts:
    The San Miguel Brewery, Porta Pueo & Co., and Ruiz & Rementeria S. en C. instituted
    insolvency proceedings against Leoncia Vda. de Chan Diaco, alleged to be the owner of a grocery
    store on Calle Nueva, Binondo, known as the store of "La Viuda de G. G. Chan Diaco." The above-
    mentioned firms alleged, among other things, that Leoncia was indebted to them. The petition
    for the declaration of insolvency was set down for hearing. Leoncia did not appear at the hearing
    and the court declared her insolvent and ordered the sheriff to take possession of her property.

    Attorney for the insolvent filed a motion asking the court to dismiss the proceedings
    against her on the ground that they should have been brought against the partnership "Lao Liong
    Naw & Co.," of which she was only a member. The alleged partnership was evidenced by an
    agreement and from which it appeared that Lao Liong Naw (Leoncia), Chan Chiaco Wa, Cua Yuk,
    Chan Bun Suy, Chan Bun Le, and Juan Maquitan Chan had formed a partnership.

    In view of the aforesaid motion Judge Del Rosario suspended for the time being the
    effects of the decision. After several hearings in which various witnesses were examined and
    documents presented on behalf of both sides, the referee rendered a second report, in which he
    found as facts that the alleged partnership between the insolvent and some of her relatives and
    employees was only a fictitious organization created for the purpose of deceiving the Bureau of
    Customs and enable some of the aforesaid relatives, who were mere coolies, to come to the
    Philippines under the status of merchants.

    The court, therefore, affirmed the suspension of the decision, dismissed the insolvency
    proceedings, and ordered the assignee to return to the sheriff all the property of the insolvent
    which he, the sheriff, might have in his possession.

    Issues: Whether or not Leoncia Vda. de Chan Diaco is liable

    Ruling:
    Yes. All of the assignments of error are well taken. The evidence appearing in the record
    fully supports the findings of the referee and his report should have been approved by the court
    below. It clearly appears from the record that said partnership, as such, has no visible assets and
    that, therefore, the partners individually must, jointly and severally, respond for its debts (Code
    of Commerce, art. 127). As the appellee is one of the partners and admits that she is insolvent,
    we can see no reason for the dismissal of the proceedings against her.

    It is further to be noted that both the partnership and the separate partners thereof may
    be joined in the same action, though the private property of the latter cannot be taken in
    payment of the partnership debts until the common property of the concern is exhausted. The
    decision appealed from is hereby reversed , the reports and recommendations of the referee are
    approved, and the order for the dismissal of the case is set aside.

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