23 Jm Tuason _ Co V Quirino Bolanos.docx

JM Tuason & Co, represented by its managing partner Gregorio Araneta Inc. v Quirino Bolanos [No. L-4935. May 28, 1954] FACTS:  This is an action originally brought in the Court of First Instance of Rizal, Quezon City Branch, to recover possession of registered land situated in barrio Tatalon, Quezon City.  JM Tuason & Co owned the land, 13 hectares of which Quirino Bolanos is claiming adverse ownership  The lower court ruled for JM Tuason, declaring Bolanos to be without any right to the land in question and ordering him to return the land and to pay JM Tuason monthly rent until he vacates the land, and also to pay the costs. Hence this appeal.  Bolanos contends that the trial court erred in not dismissing the case on the ground that it was not brought by the real party in interest; and, that it is illegal for two corporations to enter into a partnership. ISSUE: Whether it is illegal for one corporation to represent another corporation as its managing partner HELD: No. It is true that the complaint also states that the plaintiff is "represented herein by its Managing Partner Gregorio Araneta, Inc.", another corporation, but there is nothing against one corporation being represented by another person, natural or juridical, in a suit in court. The contention that Gregorio Araneta, Inc. can not act as managing partner for plaintiff on the theory that it is illegal for two corporations to enter into a partnership is without merit, for the true rule is that "although a corporation has no power to enter into a partnership, it may nevertheless enter into a joint venture with another where the nature of that venture is in line with the business authorized by its charter." (Wyoming-Indiana Oil Gas Co. vs. Weston, 80 A. L. R., 1043, citing 2, Fletcher Cyc. E. 1082.)

In this case, there is nothing in the record to indicate that the venture in which plaintiff is represented by Gregorio Araneta, Inc. as "its managing partner" is not in line with the corporate business of either of them. Hence, Gregorio Aranate Inc. can represent JM Tuason & Co, Inc. as managing partner and it can bring an action in the name of the real party in interest according to the Rules of Court (Section 2, Rule 2.) Affirmed.