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Brief Summary: On the third day of March 1997, Atty. Glen C. Gacott (Gacott) from Palawan bought two (2) brand-new transceivers from Quantech Systems Corporation (QSC) in Manila. Rey Medestomas, who worked for QSC, helped Gacott make the purchase amounting to a total of P18,000.00. After a while, on the tenth day of May of the same year, he personally sent it back because it had major defects and asked for replacement. However, as time went on, he could not get the replacement units, and was told that there were no units available and he could not get his money back. Even if there are several demands, Gacott never received neither a replacement nor refund resulting to incur expenses amounting to P40,936.44. He then asked for money in the form of a complaint for damages. During the execution, he found out that QSC wasn't a corporation but a general partnership having Mr. Michael C. Guy as the partner and general manager. Because of this, Gacott told the sheriff to start the process of attaching one of Guy's motor vehicle after finding out that Guy had personal properties registered. After that, Guy filed a Motion to lift Attachment Upon Personalty. He said that he was not a judgment debtor, so his vehicle could not be taken away. However, the RTC and CA denied his request, saying that, as the general manager of the partnership, he is solidarily liable for the partnership's debts.

Before a partner can be bound by a judgment, the Supreme Court stated that he or she must be named separately and in a clear way. It is not clear that a lawsuit against a partnership will also be a lawsuit against each partner unless it can be shown that the legal fiction of a different juridical personality was used for fraudulent, unfair, or illegal purposes. Since Guy didn't do anything malicious, he and his personal property can't be held directly and solely responsible for QSC's debt. Since he was not the judgment debtor in the case before the RTC, his vehicle was released.

ALTERNATIVE COURSES OF ACTION

1. Provide immediately replacements or refunds of the defected units of transreceivers

Adv. Gacott will continue with his plans of utilizing the transceivers Disadv. The time lost waiting for the transceivers cannot be returned

2. Ensure that the partnership's assets are all exhausted before filing an Attachment upon Personalty of the general partner's personal assets.

Adv. Guy's motor vehicle will not be taken away

Disadv. Gacott's money will be difficult to return

3. Issue strong and evidences why Guy is not personally liable starting from RTC.

Adv. Guy will not have to pay for the damages to Gacott

Disadv. Gacott's time and money will not be returned back

subject: LAW