DELUAO VS.

CASTEEL
26 SCRA 475. December 24, 1968.
J.Castro.
FACTS:
Nicanor Casteel filed for fishpond application for a tract of
swampy land in Davao. After the first three applications had been
unsuccessful, he filed a motion for reconsideration from the denial of the
third one, while it was pending, he filed a forth application following the
advice of the district forester of the Bureau of Lands. Because of the
threat poised upon his position by the above applicants who entered upon
and spread themselves within the area, Casteel realized the urgent
necessity of expanding his occupation thereof by constructing dikes and
cultivating marketable fishes, in order to prevent old and new squatters
from usurping the land. But lacking financial resources at that time, he
sought financial aid from his uncle Felipe Deluao who then extended
loans totaling more or less P27,000 with which to finance the needed
improvements on the fishpond. Hence, a wide productive fishpond was
built. Casteel was forced by circumstance to enter into a contract of
partnership to divide the fishpond after the award. Casteel opposed rival
applicants who occupied portions of the fishpond area, and relentlessly
pursued claim to the said area up to the Office of the DANR Secretary
until it was finally awarded to him. It was originally agreed that the
fishpond will be divided after the said award.
ISSUE:
Whether or not the parties can validly divide the fishpond
HELD:
No, the parties cannot validly divide the fishpond, as it is not under
the partnerships specific partnership property.
RATIO DECIDENDI:
Spouses Deluaos statement that the beneficial right over the
fishpond in question is the "specific partnership property" contemplated
by Art. 1811 of the Civil Code is incorrect. A reading of the said
provision will show that what is meant is tangible property, such as a car,
truck or a piece of land, but not an intangible thing such as the beneficial
right to a fishpond. If what they have in mind is the fishpond itself, they
are grossly in error. A fishpond of the public domain can never be
considered a specific partnership property because only its use and

enjoyment never its title or ownership is granted to specific private

persons