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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 Catalans redemption of the properties make him the absolute owner of the lands? Ruling: 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. Art. 1830. The marriage of the general partner to a limited partner did not result in the dissolution of the partnership.

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