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    2 Catalan VS Gatchalian PDF

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    2 Catalan VS Gatchalian PDF

    Uploaded by

    Nathalie Bermudez
    209 views2 pages

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    2 CATALAN VS GATCHALIAN.pdf

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    209 views2 pages

    2 Catalan VS Gatchalian PDF

    Uploaded by

    Nathalie Bermudez

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    7/28/2019 PHILIPPINE REPORTS ANNOTATED VOLUME 105

    [No. L-11648. April 22, 1959]

    THE DIRECTOR OF LANDS, petitioner, vs. LOPE ALBA, ET AL.,


    claimants. ELIGIO CATALAN, movant and appellee, vs. RAMON
    GATCHALIAN, oppositor and appellant.

    Appeal from the order of the Court of First Instance of Tacloban


    City. It appears that Eligio Catalan and Ramon Gatchalian, as
    partners, mortgaged to Dr. Dionisio Marave two lots in Tacloban
    City, including the improvements thereon, all belonging to the
    partnership, to secure the payment of a loan. The partnership
    failed to pay the loan; the mortgage was foreclosed and the
    properties were sold at public auction to Dr. Marave. Before the
    expiration of the one year period of redemption, Catalan, on his
    own behalf, redeemed the properties with his private funds. The
    Sheriff issued the corresponding certificate of redemption in
    favor of Catalan. Upon Catalan's petition, the lower court
    ordered the cancellation of the title in the name of the
    partnership and to issue in its stead another in the name of
    Catalan. Held: The theory of Catalan, accepted by the trial court,
    that he became the absolute owner of the properties in question
    upon
    1271

    making the redemption because he was subrogated to the rights of


    Dr. Marave who made the purchase at public auction, is untenable.
    Under general principles of law, a partner is an agent of the
    partnership. (Art. 1818, new Civil Code). Furthermore, every
    partner becomes a trustee for his copartner with regard to any
    benefits or profits derived from his act as partner (Art. 1807, new
    Civil Code). 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. The principle of
    subrogation cannot be applied because at the time Catalan
    redeemed the property, Dr. Marave, the purchaser at public
    auction, had not yet become the absolute owner of said properties.
    He never received the definite and formal certificate of sale
    constituting muniment of title, for the reason that redemption was
    made. Consequently, there was no title to the properties which he
    could convey to Catalan as redemptioner.

    Judgment reversed. Montemayor, J., ponente.

    ______________

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    7/28/2019 PHILIPPINE REPORTS ANNOTATED VOLUME 105

    © Copyright 2019 Central Book Supply, Inc. All rights reserved.

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