THERE IS NO LAW AUTHORIZING SOLE PROPRIETORSHIPS TO BRING SUIT IN COURT

The 1997 Rules of Civil Procedure requires that every action must be prosecuted or defended in the name of the real party-in-interest, i.e., the party who stands to be benefited or injured by the judgment in the suit, or the party entitled to the avails of the suit. (Rule 3, Section 2).  x x x x x

In Juasing Hardware v. Mendoza, 201 Phil. 369, 372-373 (1982), the Supreme Court said:

“Finally, there is no law authorizing sole proprietorships like petitioner to bring suit in court. The law merely recognizes the existence of a sole proprietorship as a form of business organization conducted for profit by a single individual, and requires the proprietor or owner thereof to secure licenses and permits, register the business name, and pay taxes to the national government. It does not vest juridical or legal personality upon the sole proprietorship nor empower it to file or defend an action in court.

Thus, the complaint in the court below should have been filed in the name of the owner of Juasing Hardware. The allegation in the body of the complaint would show that the suit is brought by such person as proprietor or owner of the business conducted under the name and style Juasing Hardware. The descriptive words “doing business as Juasing Hardware” may be added to the title of the case, as is customarily done. [Emphasis supplied.] (ROGER V. NAVARRO, vs. HON. JOSE L. ESCOBIDO, G.R. No.  153788, November 27, 2009, BRION, J.).