Iguildez v. Levy Hermanos
REITERATIONFacts
1. The Antecedents: The plaintiff, as administratrix of the estate of Abraham Weill, deceased, sought to recover P155,437 from the defendant, Levy Hermanos. The plaintiff alleged that Abraham Weill was a chief partner of the firm La Estrella del Norte, which was later incorporated as Levy Hermanos, Inc., and that Weill had left this sum on deposit with the defendant. The defendant denied these allegations, asserting that La Estrella del Norte was a foreign partnership and Weill was never a partner, and that any balance in Weill's favor had been fully paid. 2. Procedural History: The Court of First Instance of Iloilo rendered a judgment absolving the defendant from the complaint. The plaintiff appealed this decision to the Supreme Court, assigning several errors to the trial court's rulings, including the admission of certain exhibits (account books and a public document) and the finding that the claimed sum had been fully paid. 3. The Petition: The plaintiff's appeal to the Supreme Court argues that the trial court erred in admitting the defendant's account books and other exhibits as evidence and in concluding that the P155,437 claimed by the estate had been fully paid. The appellant contends that the trial court should not have accepted the entries in the defendant's books and that the property in question belonged to the deceased, not the defendant. The Supreme Court, however, affirmed the lower court's decision, finding that the account books were properly admitted and that the evidence supported the conclusion that the balance due to Abraham Weill had been settled, with the defendant corporation only assuming a P9,490.87 balance upon its organization.
Issue(s)
Whether the trial court erred in accepting the entries in the defendant's books of account (Exhibits 1-8). Whether the trial court erred in holding that the Kilayco property belonged to "Levy Hermanos" and not to the deceased Abraham Weill. Whether the sum claimed by the plaintiff had already been fully paid by the defendant.
Ruling
The Supreme Court affirmed the decision of the trial court, absolving the defendant from the complaint. The Court found that the evidence, particularly the books of account and agreed-upon facts, supported the defendant's claim of full payment.
Ratio Decidendi
On the admissibility and correctness of the books of account: The Court held that the appellant's contention regarding the wrong admission of exhibits was untenable. It was noted that the bill of exceptions did not show that the commercial books were not kept in accordance with the Code of Commerce. Furthermore, the trial court found the books to be kept in conformity with the code, and they were admitted by the appellant's counsel. Citing Tan Machan vs. Gan Aya de la Trinidad and Garrido v. Asencio, the Court reiterated that books of account, even if not strictly conforming to the Code of Commerce, are admissible if not objected to or if admitted under Section 338 of the Code of Civil Procedure. The entries were found to be regularly made in the ordinary course of business, showing Weill's interest and credited share, thus importing trustworthiness. The trial judge's personal examination also found no indication of falsity. Regarding Exhibit 8, a public document, its admission was not opposed. This exhibit, a declaration by the deceased Weill, stated that Rafael Levy was the sole owner of "La Estrella del Norte" doing business as "Levy Hermanos," and that Weill was merely the attorney-in-fact, directly contradicting the plaintiff's allegation of Weill being a partner or chief. On the ownership of the Kilayco property: While an entry in Weill's current account showed a debit for the Kilayco house, a witness for the plaintiff testified that this was an erroneous entry and was corrected. This testimony was corroborated. The Court found it unreasonable to infer ownership from a mere debit entry. Moreover, the property was sold by "Levy Hermanos, Inc.," and registered under its certificate of title, suggesting it belonged to the corporation, not the deceased. On the issue of full payment: The Court noted a significant agreement between the parties. It was agreed that according to the 1914 ledger, there was a balance of P69,794.21 in Weill's favor in his current account with "Levy Hermanos" (not "Levy Hermanos, Inc."). It was also admitted that "Levy Hermanos, Inc.," on January 31, 1922, had a balance of P9,490.87 in Weill's favor, which it took over upon its organization on February 1, 1922. The Court found that this balance of P9,490.87 was fully paid, as evidenced by vouchers (Exhibits 5-A to 5-S), despite the original vouchers for the P69,794.21 balance being lost due to fire. The Court emphasized that "Levy Hermanos, Inc.," a domestic partnership, was distinct from "Levy Hermanos," whose sole owner was Rafael Levy. The reduction of the P69,794.21 balance to P9,490.87 was explained by various drafts and other reasons detailed in Exhibit 6.
Main Doctrine
Books of account, even if not strictly kept in accordance with the Code of Commerce, are admissible in evidence, especially if not objected to, or if admitted by counsel, and may serve to refresh the memory of a witness or be admitted under Section 338 of the Code of Civil Procedure. Entries regularly made in the ordinary course of business, showing the interest of a party and crediting their share, are presumed to be correct.