TITLE: G.R. NOS.

166299-300: December 13, 2005

AURELIO K. LITONJUA,JR., Petitioner,vs.
EDUARDO K. LITONJUA, SR., ROBERT T. YANG, et.,al Respondents.
TOPIC: Innominate Contract
FACTS: Aurelio filed a complaint against his brother Eduardo, a business partner named
Robert Bobby Yang, and several corporate respondents at the Regional Trial
Court of Pasig on December 4, 2002. The said complaint alleged the respondents
of specific performance and accounting and claimed that he and his brother
entered into a joint venture/partnership for the continuation of their family
business. On the memorandum allegedly written by Eduardo, which is labeled as
Annex A-1, it was said that Whatever is left in the corporation, I (Eduardo)
will make sure that you get ONE MILLION PESOS ( 1, 000,000.00) or ten
percent (10%) equity, whichever is greater The trial court denied the
affirmative defenses of Eduardo, et.al which stated that there was no cause of
action that can be derived from the actionable document. The Court of Appeals
rendered that the complaint be dismissed. The actionable document which the
petitioner presented as Annex A-1 to claim his right allegedly violated by the
respondents was void or legally inexistent. However, Aurelio raised the notion of
innominate contract at the Supreme Court with the contention that the actionable
document may be considered as an innominate contract.
ISSUES: Whether or not there is an actionable document of partnership between the
petitioner, Aurelio Litonjua and defendants, Eduardo Litonjua and Robert Yang.
Whether or not the contention of an innominate contract is valid or legal.
RULING: The petitioners claim of right of action against the respondents Eduardo K.
Litonjua Sr., and Robert Yan thrusted on the undated and unsigned evidence
Annex A-1. Likewise, the complaint for the delivery and accounting of
partnerships property based on the said non-existent document was dismissible
for failure to state cause of action and presupposed that the first theorys
adaptation and prosecution before the court was a mistake. The Supreme Court
denied the petition of review and affirmed the impugned Decision and Resolution
of the Court of Appeals.
REMARKS: Before you file a complaint, make sure that the evidence you have is strong
enough to institute a cause of action. Cause of action is defined by Rule 2, Sec. 2
of the Rules of Court as: A cause of action is the act omission by which a party
violates a right of another.