57. Tai Tong Chuache v.

Insurance Commission, 158 SCRA 366 (1988)

CASE DIGEST

FACTS:

Petitioner seeks to recover from private respondent, its insurer, indemnity as the property subject of the same was
lost due to an insurable risk as per their policy.

Respondent counters that the the petitioner has no legal standing to claim the same as the policy was executed
between it and a certain Arsenio Chua in his own name and not the petitioner.

ISSUE:

Is the petitioner allowed to recover indemnity?

RULING:

Yes, it is.

Art. 1800. The partner who has been appointed manager in the articles of partnership may execute all acts of
administration despite the opposition of his partners, unless he should act in bad faith; and his power is irrevocable
without just or lawful cause. The vote of the partners representing the controlling interest shall be necessary for such
revocation of power.

A power granted after the partnership has been constituted may be revoked at any time.

It should be borne in mind that petitioner being a partnership may sue and be sued in its name or by its duly
authorized representative.

The fact that Arsenio Lopez Chua is the representative of petitioner is not questioned. Petitioner’s declaration that
Arsenio Lopez Chua acts as the managing partner of the partnership was corroborated by respondent insurance
company. Thus Chua as the managing partner of the partnership may execute all acts of administration including the
right to sue debtors of the partnership in case of their failure to pay their obligations when it became due and
demandable. Or at the very least, Chua being a partner of petitioner Tai Tong Chuache& Company is an agent of the
partnership. Being an agent, it is understood that he acted for and in behalf of the firm.