CATALAN vs. GATCHALIAN 105 Phil 1270, G.R. No.

L-
11648, April 22, 1959

FACTS: Catalan and Gatchalian are partners. They

mortgaged two lots to Dr. Marave together with the
improvements thereon to secure a credit from the latter. The
partnership failed to pay the obligation. The properties were
sold to Dr. Marave at a public auction. Catalan redeemed the
property and he contends that title should be cancelled and a
new one must be issued in his name.

ISSUE: Did Catalan’s redemption of the properties make him

the absolute owner of the lands?

HELD: No. Under Article 1807 of the NCC every partner

becomes a trustee for his copartner with regard to any
benefits or profits derived from his act as a partner.
Consequently, when Catalan redeemed the properties in
question, he became a trustee and held the same in trust for
his copartner Gatchalian, subject to his right to demand from
the latter his contribution to the amount of redemption.