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Republic of the Philippines

G.R. No. L-45441 June 26, 1939
MORA ELECTRIC CO., INC., petitioner,
Claro M. Recto and John R. Mcfie for petitioner.
Gibbs and McDonough for respondents.
Paulino Matic obtained from the City of Manila the concession to provide the lighting system
of the Manila North and outh Cemeteries on All aint!s "ay in #$%&, for the amount of
P',(%%, the payment of )hich )as guaranteed by *u+on urety Co.
Matic thereafter transferred his rights to said concession to Benita ,uiogue, authori+ing her
to enter into a contract )ith Mora Electric Co., -nc., to ma.e the installation and to pay the
P',((% to the City of Manila )ith the money to be collected from the installations.
Benita ,uiogue entered into this contract )ith Mora Electric Co., -nc., each party binding
itself to contribute the necessary labor and material )hich the latter may be unable to put up,
and dividing the profits bet)een them after deducting therefrom all the necessary e/penses
for labor, materials, cost of the current and the amount of P',((% )hich should be paid to the
city, both parties also binding themselves, for this purpose, to report the e/penses )hich each
might have incurred.
0he business )as a failure because it did not yield the e/pected profit.
1or failure to pay the amount of P',((% o)ing to the City of Manila for the concession,
*u+on urety Co., had to ma.e good the said amount. *u+on urety Co., thereupon sued
Paulino Matic and Benita ,uiogue for the recovery of this amount. Paulino Matic and Benita
,uiogue, in turn, filed the present action against Mora Electric Co., -nc., to recover from the
latter the amount of P',((% to )hich they )ere sentenced to pay in the case commenced
against them by *u+on urety Co. 0he Court of Appeals, affirming the 2udgment of the Court
of 1irst -nstance, sentenced Mora Electric Co., -nc., to pay Paulino Matic and Benita ,uiogue
the amount of P',((%, minus that of P3%4 )hich had already been paid on account of the
former, or P',4#' )ith interest thereon at #3 per cent per annum, plus ' per cent of this
amount as attorney!s fee.
Mora Electric Co., -nc., has appealed this case to this court of certiorari. 0he Court of
Appeals, relying upon the evidence oral and documentary, held that Mora Electric Co., -nc.,
bound itself in its contract )ith Benita ,uiogue to pay the City of Manila the P',((%. 5nable
to revie) this evidence, )e have to decide this appeal on the basis of this finding of the Court
of Appeals. 6aving underta.en to pay this amount to the City of Manila, Mora Electric Co.,
-nc., is under a duty to reimburse )hoever made good the amount for it, namely, Paulino
Matic and Benita ,uiogue.
6o)ever, Mora Electric Co., -nc., also contends that, at all events, Benita ,uiogue should
share in the payment of this amount to the City of Manila. -t alleges that the contract entered
into bet)een them is a civil partnership. -t then invo.es the provisions of the Civil Code
regarding the distribution of the profits and losses bet)een the partners.
0his 7uestion, ho)ever, is not raised in this case. -t properly pertains to the li7uidation of the
partnership and the distribution of the profits and losses, )hich are not here at issue. 0he
amount no) sought to be recovered is not claimed as loss or profit, but as the contribution
)hich Mora Electric Co., -nc., bound itself to ma.e to the partnership and )hich it )as under
a duty to pay, although it )as paid instead by Matic and ,uiogue. 0he li7uidation of the
partnership is not no) sought. -ndeed, there is no reason for such li7uidation. 8hile it is
mentioned in the appealed decision that the business produced P$,9%9.&:, it does not appear
that the parties have made a report, as they have agreed to do, of the e/penses incurred by
each, and it is not possible to determine )hether there )as a profit or loss and )hat is the
e/tent thereof and the measure of the respective liability or benefit.
As to the interest on the amount of P',4#', Matic and ,uiogue having been sentenced to pay
it, it constitutes damages suffered by them due to the breach by Mora Electric Co., -nc., of the
obligation it assumed to pay the City the amount of the concession. 0he same is true )ith
respect to the 2udgment to pay ' per cent on the amount of P',4#'.
8herefore, the 2udgment of the Court of Appeals is affirmed, )ith the costs to the petitioner.
o ordered.