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?
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.