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    DELUAO V Casteel

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    Lorelie
    This case involves a dispute over ownership of a 178-hectare fishpond tract between Nicanor Casteel and Felipe Deluao. Casteel unsuccessfully applied to register the fishpond three times. He later constructed dikes and cultivated fish with financial help from Deluao. The Director of Fisheries rejected Casteel's application and ordered him to remove improvements. Casteel then entered a "contract of service" with Deluao's wife to work the fishpond. The Secretary of Agriculture later reinstated Casteel in the area. The Supreme Court ruled this dissolved the partnership between Casteel and Deluao as the fishpond could no longer be divided between them

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    DELUAO V Casteel

    Uploaded by

    Lorelie
    24 views2 pages
    This case involves a dispute over ownership of a 178-hectare fishpond tract between Nicanor Casteel and Felipe Deluao. Casteel unsuccessfully applied to register the fishpond three times. He later constructed dikes and cultivated fish with financial help from Deluao. The Director of Fisheries rejected Casteel's application and ordered him to remove improvements. Casteel then entered a "contract of service" with Deluao's wife to work the fishpond. The Secretary of Agriculture later reinstated Casteel in the area. The Supreme Court ruled this dissolved the partnership between Casteel and Deluao as the fishpond could no longer be divided between them

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    DELUAO v Casteel

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    This case involves a dispute over ownership of a 178-hectare fishpond tract between Nicanor Casteel and Felipe Deluao. Casteel unsuccessfully applied to register the fishpond three times. He later constructed dikes and cultivated fish with financial help from Deluao. The Director of Fisheries rejected Casteel's application and ordered him to remove improvements. Casteel then entered a "contract of service" with Deluao's wife to work the fishpond. The Secretary of Agriculture later reinstated Casteel in the area. The Supreme Court ruled this dissolved the partnership between Casteel and Deluao as the fishpond could no longer be divided between them

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    24 views2 pages

    DELUAO V Casteel

    Uploaded by

    Lorelie
    This case involves a dispute over ownership of a 178-hectare fishpond tract between Nicanor Casteel and Felipe Deluao. Casteel unsuccessfully applied to register the fishpond three times. He later constructed dikes and cultivated fish with financial help from Deluao. The Director of Fisheries rejected Casteel's application and ordered him to remove improvements. Casteel then entered a "contract of service" with Deluao's wife to work the fishpond. The Secretary of Agriculture later reinstated Casteel in the area. The Supreme Court ruled this dissolved the partnership between Casteel and Deluao as the fishpond could no longer be divided between them

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    DELUAO v.

    CASTEEL
    G.R. No. L-21906; December 24, 1968
    Ponente: J. Castro

    FACTS:

    In 1940 Nicanor Casteel unsuccessfully registered a fishpond in a big tract of swampy


    land, 178.76 hectares, in the then sitio of Malalag, municipality of Padada, Davao for 3
    consecutive times because the Bureau of Fisheries did not act upon his previous
    applications.
    Despite the said rejection, Casteel did not lose interest. Because of the threat poised
    upon his position by the other 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. But lacking financial
    resources at that time, he sought financial aid from his uncle Felipe Deluao.
    Moreover, upon learning that portions of the area applied for by him were already
    occupied by rival applicants, Casteel immediately filed a protest. Consequently, two
    administrative cases ensued involving the area in question.

    However, despite the finding made in the investigation of the above administrative
    cases, the Director of Fisheries nevertheless rejected Casteel's application on October
    25, 1949, required him to remove all the improvements which he had introduced on the
    land, and ordered that the land be leased through public auction

    On November 25, 1949 Inocencia Deluao (wife of Felipe Deluao) as party of the first
    part, and Nicanor Casteel as party of the second part, executed a contract —
    denominated a "contract of service". On the same date the above contract was entered
    into, Inocencia Deluao executed a special power of attorney in favor of Jesus Donesa

    On November 29, 1949 the Director of Fisheries rejected the application filed by Felipe
    Deluao on November 17, 1948. Unfazed by this rejection, Deluao reiterated his claim
    over the same area in the two administrative cases and asked for reinvestigation of the
    application of Nicanor Casteel over the subject fishpond.

    The Secretary of Agriculture and Natural Resources rendered a decision ordering


    Casteel to be reinstated in the area and that he shall pay for the improvement made
    thereupon.
    Sometime in January 1951 Nicanor Casteel forbade Inocencia Deluao from further
    administering the fishpond, and ejected the latter's representative (encargado), Jesus
    Donesa, from the premises.

    ISSUE:
    Whether the reinstatement of Casteel over the subject land constitute a dissolution of
    the partnership between him and Deluao

    HELD:

    Yes, the reinstatement of Casteel dissolved his partnership with Deluao.

    The Supreme Court ruled that the arrangement under the so-called "contract of service"
    continued until the decision both dated Sept. 15, 1950 were issued by the Secretary of
    Agriculture and Natural Resources in DANR Cases 353 and 353-B.

    This development, by itself, brought about the dissolution of the partnership. Since the
    partnership had for its object the division into two equal parts of the fishpond between
    the appellees and the appellant after it shall have been awarded to the latter, and
    therefore it envisaged the unauthorized transfer of one half thereof to parties other than
    the applicant Casteel, it was dissolved by the approval of his application and the award
    to him of the fishpond.
    The approval was an event which made it unlawful for the members to carry it on in
    partnership. Moreover, subsequent events likewise reveal the intent of both parties to
    terminate the partnership because each refused to share the fishpond with the other.

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