HEIRS OF LIM v. JULIET LIM because the SC is not a trier of facts.

Generally, we are not duty-bound to analyze

INTRODUCTION: again and weigh the evidence introduced in and considered by the tribunals below.
 Jose Lim has a wife, Cresencia Palad, and six children namely, Elfledo, Elenito, When supported by substantial evidence, the findings of fact of the CA are
Evelia, Imelda, Edelyna and Edison, all surnamed Lim. conclusive and binding on the parties and are not reviewable by this Court.
 Their eldest son Elfledo had a wife named Juliet Lim However, as one of the exceptions, the SC can review findings of fact when the
 Jose Lim, the father, and Elfledo (Elfledo) Lim, the son, are already dead. The Heirs of findings of fact of the RTC are contrary to those of the CA.
Jose Lim (namely the wife and the remaining 5 children) filed a suit for partition,  A contract of partnership is defined by the NCC as one where two or more persons
accounting, and damages against Juliet Villa Lim. bind themselves to contribute money, property, or industry to a common fund, with the
intention of dividing the profits among themselves.
HEIRS OF LIM’s VERSION OF THE FACTS: o The best evidence would have been the contract of partnership or the
 Jose Lim together with his friends Jimmy Yu (Jimmy) and Norberto Uy (Norberto), articles of partnership. Unfortunately, there is none in this case,
formed a partnership to engage in the trucking business. Initially, with a contribution of because the alleged partnership was never formally organized.
P50,000 each, they purchased a truck to be used in the hauling and transport of  In determining the existence of a partnership, we apply:
lumber of the sawmill. Jose managed the operations of this trucking business until his
death. Art. 1769. In determining whether a partnership exists, these rules shall apply:
 The Heirs of Lim, Norberto, and Jimmy, agreed to continue the business under the (1) Except as provided by Article 1825, persons who are not partners as to each other
management of Elfledo Lim (the eldest son). The shares in the partnership profits and are not partners as to third persons;
income that formed part of the estate of Jose Lim were held in trust by Elfledo, with (2) Co-ownership or co-possession does not of itself establish a partnership, whether
the authority for Elfledo to use, purchase or acquire properties using said funds. such co-owners or co-possessors do or do not share any profits made by the use of
 The Heirs of Lim alleged that Elfledo was never a partner or an investor in the the property;
business and merely supervised the purchase of additional trucks using the income (3) The sharing of gross returns does not of itself establish a partnership, whether or
from the trucking business of the partners. not the persons sharing them have a joint or common right or interest in any property
o They also alleged Elfledo was a mere fresh commerce graduate who served from which the returns are derived;
as his father’s driver. (4) The receipt by a person of a share of the profits of a business is a prima facie
 Nonetheless, when the partnership ceased, the business had 9 trucks which were all evidence that he is a partner in the business, but no such inference shall be drawn if
under the same of Ellfedo. Elfledo was also able to purchase numerous real such profits were received in payment:
properties by using the profits derived from the partnership, all of which were (a) As a debt by installments or otherwise;
registered in his name and that of his wife Juliet Lim. (b) As wages of an employee or rent to a landlord;
o Elfledo eventually died, leaving Juliet Lim as his sole heir. (c) As an annuity to a widow or representative of a deceased partner;
(d) As interest on a loan, though the amount of payment vary with the profits of the
 Claiming to be co-owners of the aforementioned properties, the Heirs of Lim claimed
business;
Juliet Lim took over the administration of the aforementioned properties, which
(e) As the consideration for the sale of a goodwill of a business or other property by
belonged to the estate of Jose Lim, without their consent and approval.
installments or otherwise.
o They seek to compel Juliet Lim to submit an accounting of all income, profits
and rentals received from the estate of Elfledo Lim, and to surrender the
 Applying said provision, Elfledo Lim is a partner because:
administration thereof.
o Jose gave Elfledo P50,000, as share in the partnership, on a date that
coincided with the payment of the initial capital in the partnership;
JULIET LIM’s VERSION OF THE FACTS:
o Elfledo ran the affairs of the partnership, wielding absolute control, power
 Juliet asserted that it was her husband Elfledo Lim, not his father-in-law Jose Lim, who
and authority, without any intervention or opposition whatsoever from any of
was a partner together with Norberto and Jimmy in the trucking business.
the Heirs of Lim;
o Jose Lim allegedly gave Elfledo P50,000 as the latter’s capital in an informal
o All of the properties, particularly the nine trucks of the partnership, were
partnership with Jimmy and Norberto.
registered in the name of Elfledo;
 Other than this trucking business, Elfledo, together with Juliet engaged in other
o Jimmy testified that Elfledo did not receive wages or salaries from the
business ventures. Thus, they were able to buy real properties and to put up their own
partnership, indicating that what he actually received were shares of the
car assembly and repair business.
profits of the business;
 When Elfledo Lim and one of the partners died (Norberto), the trucking business
o None of the Heirs of Jose Lim, the alleged partner, demanded periodic
started to falter, Juliet decided that she could no longer run the business.
o The partnership eventually ceased, 3 of the 9 trucks were given to Jimmy as accounting from Elfledo during his lifetime.
 A demand for periodic accounting is evidence of a
his share, while Juliet acquired 3 trucks as well purchased Norberto’s
partnership.
remaining 3 trucks on installment.
 Elfledo was not just a hired help but one of the partners in the trucking business,
active and visible in the running of its affairs from day one until it ceased operations
PROCEDURAL:
upon his demise. The extent of his control, administration and management of the
 RTC: in favor of Heirs of Lim; CA: reversed RTC, dismissed the complaint of the Heirs
partnership and its business, the fact that its properties were placed in his name, and
that he was not paid salary or other compensation by the partners, are indicative of
ISSUE: W/N Elfledo Lim was partner in the trucking business – YES
the fact that Elfledo was a partner and a controlling one at that. It is apparent that the
 The evaluation and calibration of the evidence necessarily involves consideration of other partners only contributed in the initial capital but had no say thereafter on how
factual issues—an exercise that is not appropriate for a petition for review on certiorari the business was ran.
under Rule 45. This rule provides that the parties may raise only questions of law,
  Jose Lim died when the partnership was barely a year old, and the partnership and its
business not only continued but also flourished. If it were true that it was Jose Lim
and not Elfledo who was the partner, then upon his death the partnership
should have been dissolved and its assets liquidated. On the contrary, these
were not done but instead its operation continued under the helm of Elfledo and
without any participation from the heirs of Jose Lim.

PETITION DENIED.