Heirs of Tan Eng Kee v CA October 3, 2000 HEIRS OF TAN ENG KEE vs. COURT OF APPEALS a !

"ENGUET LU#"ER CO#PAN$, re%rese te! b& 'ts Pres'!e t TAN ENG LA$ DE LEON, JR., J.: SUMMARY: T(e He'rs o) Ta E * Kee )'+e! a s,'t a*a' st Ta E * La& a++e*' * t(at La& a ! ('s c('+!re ca,se! t(e co vers'o o) t(e %art ers('% -"e *,et L,.ber/, a++e*e!+& )or.e! a)ter 00II b& brot(ers Kee 1 La& )ro. a %oo+' * o) t(e'r %rocee!s, ' to t(e cor%orat'o -"e *,et L,.ber Co.%a &/ ' or!er to !e%r've Kee a ! ('s (e'rs o) 'ts %ro)'ts. T(e& %ra& )or t(e acco, t' * o) t(e co.%a &2s assets, 'ts !'sso+,t'o , +'3,'!at'o a ! !'v's'o . La&, o t(e ot(er (a !, c+a'.s t(at Kee 4as a .ere e.%+o&ee ot a %art er. TC (e+! t(at "e *,et L,.ber 4as a 5o' t ve t,re 4('c( 's a6' to a %art'c,+ar %art ers('% a ! r,+e! ' )avor o) t(e He'rs o) Kee. CA reverse! a ! (e+! t(at t(ere 4as o %art ers('%, o +& a %ro%r'etors('%, as t(e He'rs 4ere ot ab+e to %rese t ev'!e ce 7s,c( as co tract o) %art ers('% ' a %,b+'c !oc,.e t or art'c+es o) %art ers('% recor!e! ' SEC, a ! ot(ers8 to estab+'s( t(e e9'ste ce o) %art ers('%. HELD: 0('+e 't (as bee (e+! t(at ' P('+'%%' e +a4 t(at a 5o' t ve t,re 's *over e! b& +a4s o %art ers('%, T(e ev'!e ce %rese te! b& He'rs o) Kee )a++s s(ort o) t(e 3,a t,. o) %roo) re3,'re! to estab+'s( a %art ers('%. DOCTRINE: A 5o' t ve t,re 's (ar!+& !'st' *,'s(ab+e )ro. t(e %art ers('%, s' ce t(e'r e+e.e ts are s'.'+ar : co.., 't& o) ' terest ' t(e b,s' ess, s(ar' * o) %ro)'ts a ! +osses, a ! a .,t,a+ r'*(t o) co tro+. T(e .a' !'st' ct'o c'te! b& .ost o%' 'o s ' co..o +a4 5,r's!'ct'o 's t(at %art ers('% co te.%+ates a *e era+ b,s' ess 4't( so.e !e*ree o) continuity, 4('+e 5o' t ve t,re 's )or.e! )or t(e e9ec,t'o o) a s' *+e tra sact'o , a ! 's t(,s o) a temporary at,re. Ho4ever, t('s observat'o 's ot e t're+& acc,rate ' t('s 5,r's!'ct'o , s' ce , !er t(e Civil Code, a %art ers('% .a& be particular or , 'versa+, a ! a %art'c,+ar %art ers('% .a& (ave )or 'ts ob5ect a s%ec')'c , !erta6' *. U !er P('+'%%' e +a4, a 5o' t ve t,re 's a )or. o) %art ers('% a ! s(o,+! be *over e! b& t(e +a4 o) %art ers('%s. SC (as (o4ever reco* ';e! a !'st' ct'o bet4ee t(ese t4o b,s' ess )or.s, a ! (as (e+! t(at a+t(o,*( a cor%orat'o ca ot e ter ' to a %art ers('% co tract, 't .a& (o4ever e *a*e ' a 5o' t ve t,re 4't( ot(ers. FACTS: Feb. <=, <==0> A suit as fi!e" in RTC #aguio against Tan Eng La$ %$ t&e Heirs of Tan Eng Kee 7composed of Matilde A u o, !is common"la# spouse, $oined y t!eir c!ildren " %eresita, Nena, Clarita, Carlos, Cora&on and Elpidio8 o ALLEGE?> I '()', Ta E * La& a ! ('s c('+!re ca,se! t(e *onversion of t&e +artners&i+ '(en)uet Lum er' into a *or+oration ca++e! '(en)uet Lum er Co.' o #enguet Lu,%er as a +artners&i+ %et een %rot&ers Tang Eng Kee an" Tan Eng La$- Its ' cor%orat'o b& La& 4as a r,se to !e%r've Ta E * Kee a ! ('s (e'rs 7%+a' t'))s (ere' 8 o) t(e'r r'*(t),+ %art'c'%at'o ' t(e %ro)'ts o) t(e b,s' ess. o PRA$ER> Acco, t' * o) t(e a++e*e! %art ers('% assets )or.e! a)ter 00II, a ! t(e !'sso+,t'o , 4' !' * ,% a ! +'3,'!at'o t(ereo), a ! t(e e3,a+ !'v's'o o) t(e et assets o) "e *,et L,.ber. A!!egations of Co,+!aint.Re+resentations %$ Heirs of Tan Eng Kee ?,r' * t(e 4ar, t(e e t're stoc6s o) t(e +re/ ar #enguet Lu,%er 4ere co )'scate! ') ot b,r e! b& t(e @a%a ese. A)ter t(e 4ar, beca,se o) t(e abse ce o) ca%'ta+ to start a +,.ber a ! (ar!4are b,s' ess, La$ an" Kee +oo!e" t&e +ro*ee"s of t&eir individual businesses ear e! )ro. b,&' * a ! se++' * .'+'tar& s,%%+'es, so t(at t(e co..o ), ! 4o,+! be e o,*( to )or. a %art ers('%, bot( ' t(e +,.ber a ! (ar!4are b,s' ess. '(01: "rot(ers Ta E * Kee a ! Ta E * La& entere" into a +artners&i+ e *a*e! ' t(e b,s' ess o) se++' * +,.ber a ! (ar!4are a ! co str,ct'o s,%%+'es. T(e& a.e! t(e'r e ter%r'se '(en)uet Lum er', 4('c( t(e& 5o' t+& .a a*e! 7until %an En) *ee+s deat! on ,ept. -., -/012. ",s' ess %ros%ere! !,e to t(e (ar! 4or6 a ! t(r')t o) t(e a++e*e! %art ers T(at La& a ! Kee act,a++& estab+'s(e! t(e "e *,et L,.ber ' "a*,'o C't&, 4as eve test')'e! to b& 4't esses. Facts w/c allegedly establish partnership: 7<8 t(e& co !,cte! t(e a))a'rs o) t(e b,s' ess !,r' * KeeAs +')et'.e, 5o' t+&, 728 t(e& 4ere t(e o es *'v' * or!ers to t(e e.%+o&ees, 738 t(e& 4ere t(e o es %re%ar' * or!ers )ro. t(e s,%%+'ers, 7B8 t(e'r )a.'+'es sta&e! to*et(er at t(e "e *,et L,.ber co.%o, !, a ! 7C8 a++ t(e'r c('+!re 4ere e.%+o&e! ' t(e b,s' ess ' !'))ere t ca%ac't'es. Evidences w/c allegedly establish partnership : <8 T(at Kee 4as +'v' * ' a b, 6 (o,se 5,st across t(e +,.ber store, a ! t(e ' a roo. ' t(e b, 6 (o,se ' Tr' '!a!, b,t 4't(' t(e co.%o, ! o) t(e +,.ber estab+'s(.e t, as test')'e! to b& Ta !ocD 28 t(at bot( La& a ! Kee 4ere seate! o a tab+e a ! 4ere Eco..a !' * %eo%+eE as test')'e! to b& t(e so , E+%'!'o Ta D 38 t(at bot( 4ere s,%erv's' * t(e +aborers, as test')'e! to b& F'ctor'a C(o'D a ! B8 t(at ?'o 's'o Pera+ta 4as s,%%ose!+& be' * to+! b& Kee t(at t(e %rocee!s o) t(e G0 %'eces o) t(e G.I. s(eets 4ere a!!e! to t(e b,s' ess. #ar. <G, <==<> He'rs o) Ta E * Kee )'+e! a a.e !e! co.%+a' t '.%+ea!' * "e *,et L,.ber Co., as re%rese te! b& Ta E * La&. Tan Eng La$: Prese te! E9('b'ts EBE to EBHUE, co s'st' * o) %a&ro++s ' !'cat' * t(at Tan Eng Kee as a ,ere e,+!o$ee o) "e *,et L,.ber RTC: I )avor o) He'rs o) Ta E * Kee o #enguet Lu,%er is a 2oint venture &i*& is a3in to a particular +artners&i+4 o Ta E * Kee a ! Ta E * La& are 5o' t a!ve t,rers a !Ior %art ers ' a b,s' ess ve t,re a !Ior %art'c,+ar %art ers('% ca++e! "e *,et L,.ber a ! as s,c( s(o,+! s(are ' t(e %ro)'ts a !Ior +osses o) t(e b,s' ess ve t,re or %art'c,+ar %art ers('%D o Assets o) "e *,et L,.ber are t(e sa.e assets t,r e! over to "e *,et L,.ber Co. I c. a ! as s,c( t(e (e'rs or +e*a+ re%rese tat'ves o) Ta E * Kee (ave a +e*a+ r'*(t to s(are ' sa'! assets o A++ t(e r'*(ts a ! ob+'*at'o s o) Ta E * Kee as 5o' t a!ve t,rer a !Ior as %art er ' a %art'c,+ar %art ers('% (ave !esce !e! to t(e %+a' t'))s 4(o are ('s +e*a+ (e'rs. o OR?ER> Ta E * La& to re !er a acco, t' * o) a++ t(e assets o) "e *,et L,.ber Co. so t(e %+a' t'))s 6 o4 t(e'r %ro%er s(are ' t(e b,s' ess o OR?ER> A%%o' t.e t o) a rece'ver to %reserve a !Ior a!.' 'ster t(e assets o) "e *,et L,.ber Co.%a &, I c. , t'+ s,c( t'.e t(at sa'! cor%orat'o 's )' a++& +'3,'!ate!

"e *,et L,.ber Co. so,*(t re+'e) be)ore CA CA: RTC !ec's'o set as'!e. Co.%+a' t !'s.'sse!. o RTC e9te !e! t(e 'ss,e. 0('+e t(e He'rs o) Ta E * Kee .e t'o e! o +& t(e e9'ste ce o) a %art ers('%, 't 4e t be&o ! t(at b& 5,st')&' * t(e e9'ste ce o) a 5o' t ve t,re. o "e)ore t(e 4ar, Ta E * Kee 4as ot a %art er o) t(e "e *,et L,.ber. T('s 4as a!.'tte! b& He'rs Ta 1 Fero 'ca, to*et(er 4't( "eatr'; Ta !oc, 4(o test')'e! t(e& !o ot 6 o4 4(e t(e estab+'s(.e t 6 o4 ' "a*,'o as "e *,et L,.ber 4as starte! as a %art ers('% o No +artners&i+ &atsoever- E9ce%t )or a )'r. a.e, t(ere 4as no firm account, no firm letter!eads su mitted as evidence, no certificate of partners!ip, no a)reement as to profits and losses, and no time fi3ed for t!e duration of t!e partners!ip. o No attempt to su mit an accountin) correspondin) to t!e period after t!e #ar until *ee+s deat! in -/01. 4t !ad no usiness oo5, no #ritten account nor any memorandum for t!at matter and no license mentionin) t!e e3istence of a partners!ip. o T(e e9('b'ts s,%%ort t(e estab+'s(.e t o) o +& a +ro+rietors&i+. E3!i it '67: Cert')'cat'o 7#ar. B, 2J<8 .e t'o e! La$ as t&e on!$ registere" o ner o) t(e "e *,et L,.ber a ! Har!4are. H's a%%+'cat'o )or re*'strat'o 7<=CB8 .e t'o e! t(at ('s b,s' ess starte! ' <=BC to <=GC 7t(erea)ter, t(e ' cor%orat'o 8. E3!i it '.': Kee 4as .ere+& a e,+!o$ee o) t(e Co.%a &, o t(e bas's o) ('s SSS covera*e e))ect've <=CG. E3!i its '1' to '1"8': I t(e Pa&ro++s )or <=G2 H <=G3, Kee 4as s'.'+ar+& +'ste! o +& as a e.%+o&eeD %rec'se+&, (e 4as o t(e %a&ro++ +'st' *. E9('b't ECE> Ter.' at'o Not'ce, La& 4as .e t'o e! a+so as t(e %ro%r'etor. o NO PU"LIC INSTRU#ENTIArt'c+es o) Part ers('% ?,+& Recor!e! ' SEC> GR> A %art ers('% .a& be co st't,te! ' a & )or. 7Arts. JJ< a ! JJ28 EK> P,b+'c ' str,.e t 's ecessar& 4(e a '..ovab+e 's co st't,te! or ') t(e ca%'ta+';at'o e9cee!s P3,000D 't .,st a+so be recor!e! 4't( t(e SEC. o Case at "ar> ",s' ess estab+'s(.e t, as ca be see ' co.%+a' t, %ros%ere! a ! !e)' 'te+& e9cee!e! P36, ' a!!'t'o to t(e acc,.,+at'o o) rea+ %ro%ert'es a ! t(e )act t(at 't 's o4 a co.%o, !. Ho4ever, Heirs of Tan Eng Kee never esta%!is&e" t&e e5e*ution of a +u%!i* instru,ento <=G<> ",s' ess 4as ' cor%orate! a ! t(e ' cor%orators 4ere o +& La& a ! ('s )a.'+&. No %roo) e't(er t(at t(e ca%'ta+ assets o) t(e %art ers('%, assumin) t!em to e in e3istence, 4ere .a+'c'o,s+& ass'* e! or tra s)erre! b& La&, s,%%ose!+& to t(e cor%orat'o a ! s' ce t(e (ave bee treate! as a %art o) t(e +atterAs ca%'ta+ assets. o T(ose %rese te! b& He'rs o) Ta E * Kee are not evidences s,%%ort' * t(e e9'ste ce o) a %art ers('%. o E+e.e ts o) a Part ers('%> <8 a co tract, e't(er ora+ or 4r'tte . Ho4ever, ') 't ' vo+ves rea+ %ro%ert& or 4(ere t(e ca%'ta+ 's P3,000.00 or .ore, t(e e9ec,t'o o) a co tract 's ecessar&D 28 t(e ca%ac't& o) t(e %art'es to e9ec,te t(e co tractD 38 .o e& %ro%ert& or ' !,str& co tr'b,t'o D B8 co.., 't& o) ), !s a ! ' terest, .e t'o ' * e3,a+'t& o) t(e %art ers or o e (av' * a %ro%ort'o ate s(are ' t(e be e)'tsD a ! C8 ' te t'o to !'v'!e t(e %ro)'ts, be' * t(e tr,e test o) t(e %art ers('%. T(e ' te t'o to 5o' ' t(e b,s' ess ve t,re )or t(e %,r%ose o) obta' ' * %ro)'ts t(erea)ter to be !'v'!e!, .,st be estab+'s(e!. o Case at "ar> T(ese e+e.e ts ca ot be see )ro. t(e test'.o 'a+ ev'!e ce o) t(e He'rs o) Kee. #R to CA !ec's'o )'+e!D CA !e 'e!. He ce, t('s %et't'o )or rev'e4 o cert'orar' o R,+e BC Si"e #ar: Cri,ina! A*tion to Dis+rove Evi"en*e He'rs o) Ta E * Kee )'+e! a cr'.' a+ case a*a' st Ta E * La& a ! 0'+bor Ta )or t(e ,se o) a++e*e!+& fa!sifie" "o*u,ents ' a 5,!'c'a+ %rocee!' *. o E5&i%its 606 to 60/U6 ere fa3e7 %ase" on t&e "is*re+an*$ in t&e signatures of Tan Eng Kee He'rs o) Ta E * Kee a+so )'+e! cr'.' a+ cases a*a' st G+or'a, @,+'a, @,+'a o, 0'++'e, 0'+)re!o, @ea , #ar& a ! 0'++&, a++ s,r a.e! Ta , )or a++e*e! fa!sifi*ation of *o,,er*ia! "o*u,ents b& a %r'vate ' !'v'!,a+. MTC #aguio: ?'s.'sse! cases )or ' s,))'c'e c& o) ev'!e ce. ISSUE: 0(et(er Ta E * Kee a ! Ta E * La& 4ere %art ers ' "e *,et L,.berL 7NO8 RATIO: 8ROCEDURAL: 9eneral rule is t!at findin)s of facts of CA #ill not e distur ed on appeal if suc! are supported y t!e evidence. %!is case is an e3ception #!en t!e factual findin)s of CA and t!e trial court are contradictory. 4n t!is case CA reversed %C. Whether a partnership exists is a factual matter: conse;uently, since t!e appeal is rou)!t to us under Rule 1<, we cannot entertain inquiries relative to the correctness of the assessment of the evidence by the court a quo . 4nasmuc! as CA and R%C reac!ed conflictin) conclusions, #e must e3amine t!e record to determine if t!e reversal #as $ustified. Definition of Contra*t of 8artners&i+ "$ LA0 H Art. <JMJ> "& t(e co tract o) %art ers('% t o or ,ore +ersons %in" t&e,se!ves to *ontri%ute ,one$7 +ro+ert$7 or in"ustr$ to a *o,,on fun"7 it& t&e intention of "ivi"ing t&e +rofits a,ong t&e,se!ves . T4o or .ore %erso s .a& a+so )or. a %art ers('% )or t(e e5er*ise of a +rofession $,+o v. $a * C('ao Se *> It .,st be estab+'s(e! t(at 7<8 t4o or .ore %erso s bo, ! t(e.se+ves to co tr'b,te .o e&, %ro%ert&, or ' !,str& to a co..o ), !, a ! 728 t(e& ' te ! to !'v'!e t(e %ro)'ts a.o * t(e.se+ves. For, of t&e Contra*t GENERAL RULE> Nee! ot be )or.a++& re!,ce! ' to 4r't' *, s' ce stat,te a++o4s t(e ora+ co st't,t'o o) a %art ers('% EKCEPTIONS> #,st be ' 0RITING, ' 2 ' sta ces> o 7<8 4(e i,,ova%!e +ro+ert$ or rea! rig&ts are co tr'b,te! 7Art. <JJ<8, a !

728 4(e t(e %art ers('% (as a *a+ita! of 897::: or ,ore 7Art. <JJ28. 7=OO%NO%E: Art. ->?0: '%!e partners!ip !as a $uridical personality separate and distinct from t!at of eac! of t!e partners, even in case of failure to comply #it! t!e re;uirements of Art. ->>6, -st par.8 o I bot( cases, a +u%!i* instru,ent 's re3,'re!. o A inventor$ to %e signe" b& t(e %art'es a ! atta*&e" to t&e +u%!i* instru,ent 's a+so ' !'s%e sab+e to t(e va+'!'t& o) t(e %art ers('% 4(e ever '..ovab+e %ro%ert& 's co tr'b,te! to t(e %art ers('% 7Art. <JJ38. ;OINT <ENTURE a3in to 8ARTICULAR 8ARTNERSHI8 RTC r,+e! t(at Ta E * Kee a ! Ta E * La& (a! e tere! ' to a 5o' t ve t,re, 4('c( 's a6' to a %art'c,+ar %art ers('%. PARTICULAR PARTNERSHIP> A particular partners!ip !as for its o $ect determinate t!in)s, t!eir use or fruits, or a specific undertaking, or t!e e3ercise of a profession or vocation 7Art. <JG38. @OINT FENTURE> @resupposes )enerally a parity of standin) et#een t!e $oint co"ventures or partners, in #!ic! eac! party !as an equal proprietary interest in t!e capital or property contri uted, and #!ere each party exercises equal rights in t!e conduct of t!e usiness 7,evilla v. CA8.E o Co..e tar'es o) Paras, C'v'+ Co!e> ?ISTINCTIONS o 7a8 A $oint adventure 7a A.er'ca co ce%t s'.'+ar to o,r 5o' t acco, ts8 's a sort o) infor,a! +artners&i+, 4't( o )'r. a.e a ! o +e*a+ %erso a+'t&. I a $oint account, t(e %art'c'%at' * .erc(a ts ca tra sact b,s' ess , !er t(e'r o4 a.e, a ! ca be ' !'v'!,a++& +'ab+e t(ere)or. o 7b8 Us,a++&, b,t ot ecessar'+& a 2oint a"venture=>? is !i,ite" to a SIN@LE TRANSACTION7 a+t(o,*( t(e b,s' ess o) %,rs,' * to a s,ccess),+ ter.' at'o .a& co t' ,e )or a ,.ber o) &earsD a +artners&i+ genera!!$ re!ates to a *ontinuing %usiness of <ARIOUS TRANSACTIONS o) a certa' 6' !. A,rbac(, et. a+. v. Sa 'tar& 0ares #)t*. Cor%> @o' t ve t,re .a& be +'6e e! to a %art'c,+ar %art ers('%. UN?ER CO##ON LA0 @URIS?ICTION o T(e +e*a+ co ce%t o) a 5o' t ve t,re 's o) common la# ori)in. It (as o %rec'se le)al !e)' 't'o , b,t 't (as bee *e era++& , !erstoo! to .ea a or*a ';at'o )or.e! )or so.e temporary purpose- 7Gates v. #e*ar*e+8 o SI#ILARIT$> It 's (ar!+& !'st' *,'s(ab+e )ro. t(e %art ers('%, s' ce t(e'r elements are similar community of interest in the business sharing of profits and losses and a mutual right of control! 7"+ac6 er v. #c?er.ott8. o ?ISTINCTION> Part ers('% co te.%+ates a genera! %usiness 4't( so.e !e*ree o) continuity, 4('+e t(e 5o' t ve t,re 's )or.e! )or t(e e5e*ution of a sing!e transa*tion, a ! 's t(,s o) a temporary at,re. 7T,)ts v. #a 8 UN?ER PHILIPPINE @URIS?ICTION 7CIFIL CO?E8 o NOT APPLICA"LE> T('s observat'o 7as to t(e !'st' ct'o 8 's ot e t're+& acc,rate ' t('s 5,r's!'ct'o , s' ce , !er t(e Civil Code, a %art ers('% .a& be particular or , 'versa+, a ! a %art'c,+ar %art ers('% .a& (ave )or 'ts ob5ect a specific un"erta3ing. 7Art. <JG38. o GEN RULE , !er P('+'%%' e La4: T&us7 a 2oint venture is a for, of +artners&i+ an" s&ou!" %e governe" %$ t&e !a of +artners&i+so EKCEPTION as to Cor%orat'o s > As r,+e! b& SC, a+t(o,*( a *or+oration *annot enter into a +artners&i+ co tract, 't .a& (o4ever e *a*e ' a 5o' t ve t,re 4't( ot(ers. 7T,a;o v. "o+aNos8 HOAE<ER7 NO E<IDENCE OF 8ARTNERSHI8 T(e %est evi"en*e ou!" &ave %een t&e contract of partnership itse!f, or t(e articles of partnership b,t t(ere 's NONE. T(e a++e*e! %art ers('%, t(o,*(, 4as never for,a!!$ organiBe". Heirs of Tan Eng Kee: NCC 4as ot &et ' e))ect 4(e t(e %art ers('% 4as )or.e! ' <=BC, SC: Not(' * %reve te! t(e %art'es )ro. co.%+&' * 4't( NCC %rov's'o s 7A,*. 30, <=C08. ",t a++ t(at 's ' t(e %ast. No4, 4e are as6e! to !eter.' e 4(et(er a %art ers('% e9'ste! ased purely on circumstantial evidence. A rev'e4 o) t(e recor! %ers,a!es t(at CA correct+& reverse! RTC T&e evi"en*e +resente" %$ Heirs of Kee fa!!s s&ort of t&e Cuantu, of +roof reCuire" to esta%!is& a +artners&i+ U )ort, ate+& )or t(e., Ta E * Kee (as %asse! a4a&. O +& (e, as'!e )ro. Ta E * La&, co,+! (ave e9%o, !e! o t(e %rec'se at,re o) t(e b,s' ess re+at'o s('% bet4ee t(e.. As to Sour*e of Co,,on Fun" I t(e abse ce o) ev'!e ce, 4e ca ot acce%t as a estab+'s(e! )act t(at Ta E * Kee a++e*e!+& co tr'b,te! ('s reso,rces to a co..o ), ! )or t(e %,r%ose o) estab+'s(' * a %art ers('%. T(e test'.o 'es b& %et't'o ersA 4't esses 's !'rect+& co troverte! b& Ta E * La&. It 's ot 4't( t(e ,.ber o) 4't esses 4(ere' %re%o !era ce +'esD t(e 3,a+'t& o) t(e'r test'.o 'es 's to be co s'!ere!. No e o) %et't'o ersA 4't esses co,+! s,'tab+& acco, t )or t(e be*' ' *s o) "e *,et L,.ber Co.%a &, e9ce%t Pera+ta 4(ose !ecease! 4')e 4as re+ate! to #at'+!e Ab,bo. 8era!ta: 0(e (e .et Kee a)ter t(e +'berat'o , t(e +atter as6e! t(e )or.er to acco.%a & ('. to *et G0 %cs. o) G.I. s(eets s,%%ose!+& o4 e! b& bot( brot(ers. La$: ?e 'e! 6 o4+e!*e o) t('s .eet' * or o) t(e co versat'o bet4ee Pera+ta a ! ('s brot(er. He co s'ste t+& test')'e! t(at (e (a! ('s b,s' ess a ! ('s brot(er (a! ('s, t(at 't 4as o +& +ater o t(at Kee ca.e to 4or6 )or ('.. Co/o ners&i+ or *o/+ossession =of t&e @-I- s&eets? is not an in"i*iu, of t&e e5isten*e of a +artners&i+ 7Art. <JM=.8. As to A**ounting ?es%'te t(e B0 &ears t(e %art ers('% 4as a++e*e!+& ' e9'ste ce, Kee ever as6e! )or a acco, t' *. #ora v. CA> T(e esse ce o) a %art ers('% 's t(at t(e %art ers s(are ' t(e %ro)'ts a ! +osses. F,e L, * v. IAC> Eac( (as t(e r'*(t to !e.a ! a acco, t' * as +o * as t(e %art ers('% e9'sts SC a++o4e! a sce ar'o 4(ere' Eif e3cellent relations e3ist amon) t!e partners at t!e start of t!e usiness and all t!e partners are more interested in seein) t!e firm )ro# rat!er t!an )et immediate returns, a deferment of sharing in the profits is perfectly plausible.'

Case at "ar> T(e !e)er.e t, ') a &, (a! *o e o too +o * to be %+a,s'b+e. A %erso 's %res,.e! to ta6e or!' ar& care o) ('s co cer s. $,+o v. $a * C('ao Se *> Not %art er. ,!e !as not even demanded from defendant any accountin) of t!e e3penses and earnin)s of t!e usiness. Were she really a partner her first concern should have been to find out how the business was progressing whether the expenses were legitimate whether the earnings were correct etc! ,!e #as a solutely silent #it! respect to any of t!e acts t!at a partner s!ould !ave doneD Case at "ar> A !e.a ! )or %er'o!'c acco, t' * 's ev'!e ce o) a %art ers('% 7 Estanislao vs. CA8. ?,r' * ('s +')et'.e, Tan Eng Kee a++eare" never to &ave ,a"e an$ su*& "e,an" for a**ounting fro, &is %rot&er7 Tang Eng La$TAN EN@ KEE AAS AN EM8LOYEE Cr'.' a+ cases 3,est'o ' * t(e a,t(e t'c't& o) E9('b'ts EBE to EBHUE 4Ic co s'st o) %a&ro++s %,r%ort' * to s(o4 t(at Ta E * Kee 4as a or!' ar& e.%+o&ee o) "e *,et L,.ber 4ere !'s.'sse! )or ' s,))'c'e c& o) ev'!e ce. E9('b'ts EBE to EBHUE ' )act s(o4s t(at Ta E * Kee rece've! s,.s as 4a*es o) a e.%+o&ee. Ru!es in Deter,ining A&et&er a 8artners&i+ E5ists 7Art. <JM=8 7<8 E9ce%t as %rov'!e! b& Art. <G2C, %erso s 4(o are ot %art ers as to eac( ot(er are ot %art ers as to t('r! %erso sD 728 CoHo4 ers('% or coH%ossess'o !oes ot o) 'tse+) estab+'s( a %art ers('%, 4(et(er s,c( coHo4 ers or coH%ossessors !o or !o ot s(are a & %ro)'ts .a!e b& t(e ,se o) t(e %ro%ert&D 738 T(e s(ar' * o) *ross ret,r s !oes ot o) 'tse+) estab+'s( a %art ers('%, 4(et(er or ot t(e %erso s s(ar' * t(e. (ave a 5o' t or co..o r'*(t or ' terest ' a & %ro%ert& 4('c( t(e ret,r s are !er've!D =0? T&e re*ei+t %$ a +erson of a s&are of t&e +rofits of a %usiness is a prima facie evi"en*e t&at &e is a +artner in t&e %usiness, b,t o s,c( ' )ere ce s(a++ be !ra4 ') s,c( %ro)'ts 4ere rece've! ' %a&.e t> o As a !ebt b& ' sta++.e t or ot(er4'seD o As 4a*es o) a e.%+o&ee or re t to a +a !+or!D o As a a ,'t& to a 4'!o4 or re%rese tat've o) a !ecease! %art erD o As ' terest o a +oa , t(o,*( t(e a.o, t o) %a&.e t var& 4't( t(e %ro)'ts o) t(e b,s' essD o As t(e co s'!erat'o )or t(e sa+e o) a *oo!4'++ o) a b,s' ess or ot(er %ro%ert& b& ' sta++.e ts or ot(er4'se. A++!i*ation to Case at #ar Ta E * Kee 4as o +& a e.%+o&ee, ot a %art er. He'rs o) Kee !'! ot %rese t a ! o))er ev'!e ce t(at 4o,+! s(o4 t(at Ta E * Kee rece've! a.o, ts o) .o e& a++e*e!+& re%rese t' * ('s s(are ' t(e %ro)'ts o) t(e e ter%r'se )or a & %art'c,+ar %er'o!. He ce, t(e& )a'+e! to %rove t(at Kee a ! La& intended to divide t!e profits o) t(e b,s' ess bet4ee t(e.se+ves, 4('c( 's o e o) t(e esse t'a+ )eat,res o) a %art ers('%. CIRCUMSTANCES 8RESENTED #Y HEIRS UNA<AILIN@ Heirs of Kee: C'rc,.sta ces s(o4 t(e e9'ste ce o) %art ers('%. Lay and *ee #ere commandin) t!e employees: supervisin) t!e employees: determined t!e price at #!ic! t!e stoc5s #ere to e sold: and placed orders to t!e suppliers of t!e (en)uet Lum er: t!eir families lived at Company compound, a privile)e not e3tended to its ordinary employees. La$.SC: T(e& .'sse! t(e %o' t. S,c( %o4ers a ! %r'v'+e*es *ra te! ' )avor o) Kee 4ere ot ' !'cat've o) ('s be' * a %art er ' "e *,et L,.ber )or t(e )). reaso s> o 7'8 eve a .ere s,%erv'sor ' a co.%a &, )actor& or store *'ves or!ers a ! !'rect'o s to ('s s,bor!' ates. o 7''8 eve a .esse *er or ot(er tr,ste! e.%+o&ee, over 4(o. co )'!e ce 's re%ose! b& t(e o4 er, ca or!er .ater'a+s )ro. s,%%+'ers )or a ! ' be(a+) o) "e *,et L,.ber. A %art er !oes ot ecessar'+& (ave to %er)or. t('s %art'c,+ar tas6. o 7'''8 +'v' * ' t(e Co. co.%o, ! 's bec. Ta E * Kee 's t(e brot(er o) Ta E * La&. o 7'v8 a ! eve ') 't 's ass,.e! t(at Ta E * Kee 4as 3,arre+' * 4't( Ta E * La& ' co ect'o 4't( t(e %r'c' * o) stoc6sD ('*(+& co )'!e t'a+ e.%+o&ees ca ar*,e 4't( o4 ers res%ect to certa' .atters RULE> 0(ere c'rc,.sta ces ta6e sin)ly .a& be inade;uate to %rove t(e ' te t to )or. a %art ers('%, evert(e+ess, t(e collective effect of t&ese *ir*u,stan*es ,a$ %e su*& as to su++ort a fin"ing of t&e e5isten*e of t&e +artiesD intent 7Evan)elista v. C4R8. Case at "ar> $et, eve ') t(e a)oresa'! c'rc,.sta ces 4ere ta6e to*et(er, t(e& are ot %ers,as've indicia o) a %art ers('%. T(e& o +& te ! to s(o4 t(at Kee 4as ' vo+ve! ' t(e o%erat'o s o) "e *,et L,.ber, b,t ' 4(at ca%ac't& 's , c+ear. o L'6e+&, as a .e.ber o) t(e )a.'+&, (e occ,%'e! a 'c(e above t(e ra 6Ha !H)'+e e.%+o&ees s,c( as t(e +'bert& o) (av' * ('s res'!e ce ' t(e Co.%a & co.%o, !D (av' * .ora+, ') ot act,a+, s,%er'or't& over ('s )e++o4 e.%+o&ees, e t't+' * ('. to e9erc'se %o4ers o) s,%erv's'o D be' * res%. to %+ace or!ers 4't( s,%%+'ers. o C'rc. %ro))ere! b& He'rs o) Kee !o ot %rov'!e a +o*'ca+ e9,s to t(e co c+,s'o !es're!D t(ese are ot ' co s'ste t 4't( t(e %o4ers a ! !,t'es o) a .a a*er, eve ' a b,s' ess or*a ';e! a ! r, as ' )or.a++& as "e *,et L,.ber Co.%a &. T(ere be' * o %art ers('%, 't )o++o4s t(at t(ere 's o !'sso+,t'o , 4' !' * ,% or +'3,'!at'o to s%ea6 o). He ce, t(e %et't'o .,st )a'+. DIS8OSITI<E: Pet't'o ?e 'e!. CA !ec's'o AFFIR#E? ' toto.