Ysmael & Co. v. Salinas

G.R. Nos. 48165 and 48166 · 1942-06-19 · J. MORAN, J.: · Primary: Civil; Secondary: Commercial
REITERATION

Facts

The Antecedents: Appellants Rev. Fr. D. R. Salinas and Dr. Jose Ma. Delgado were condemned by the Court of First Instance of Manila to pay Juan Ysmael & Co., Inc., jointly and severally, the sum of P8,894.92 plus legal interest, P200 for attorney's fees, and costs, for the lease of the fourth floor of the building known as "Ysmael" located at Echague Street No. 101, Manila. Procedural History: The case was tried before the Court of First Instance of Manila, which rendered a judgment against the defendants, ordering them to pay the plaintiff jointly and severally. The defendants appealed this decision to the Supreme Court. The Appeal: The sole issue raised in this appeal is whether the obligation to pay rentals contracted by the defendants and appellants is merely joint (mancomunada) as they contend, or solidary as declared by the lower court. The appellants argue that the contract of lease does not contain any express stipulation for solidarity.

Issue(s)

Whether the obligation to pay rentals under the lease contract is joint (mancomunada) or solidary. Whether the indivisibility of the obligation to return the leased premises implies solidarity in the obligation to pay rentals.

Ruling

The Supreme Court reversed the decision of the lower court, ruling that the obligation of the appellants to pay rentals is joint (mancomunada) and not solidary. The dispositive portion ordered the appellants to pay the plaintiff jointly the sums of P1,434.86 with legal interest from February 26, 1938, and P6,960.06 with legal interest from October 26, 1938, until full payment, plus P200 for attorney's fees and costs.

Ratio Decidendi

On Issue 1: The Court held that obligations are presumed to be joint (mancomunada) unless there is an express pact for solidarity, citing Articles 1137 and 1138 of the Civil Code. The Court found no express stipulation in the lease contract, either directly or indirectly, that indicated the obligation to pay rentals was solidary. The mere fact that the two lessees rented the entire fourth floor together does not, by itself, establish solidarity. The Court emphasized that the presumption of joint liability is a fundamental tenet of civil law and requires clear contractual language to be overcome. Therefore, the obligation to pay rentals should be divided equally among the debtors. On Issue 2: The Court distinguished between the indivisibility of an obligation and its solidarity. It explained that not all indivisible obligations are solidary. For instance, the obligation of two or more persons to return a house is indivisible due to its physical nature, yet it can be joint as per Article 1139 of the Civil Code. In such a joint indivisible obligation, all debtors must be proceeded against for performance. However, if the obligation converts into an indemnity for damages due to non-performance, the indemnity is divided among the debtors responsible for the breach, according to Article 1150. The Court clarified that this principle of indivisibility does not automatically extend to solidarity, especially concerning the payment of rentals, which is a divisible obligation in terms of payment, absent a contrary stipulation.

Main Doctrine

The Supreme Court reiterated the fundamental principle that obligations are presumed to be joint (mancomunada) unless there is an express pact for solidarity. This presumption is based on Articles 1137 and 1138 of the Civil Code. The Court clarified that the mere fact that an obligation is indivisible, meaning it cannot be physically divided, does not automatically render it solidary. Indivisible obligations can still be joint, as recognized by Article 1139 of the Civil Code, where performance must be by all debtors, but liability for damages upon breach may be divided.

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