Case No. 13 GR No. 225207 Hernando Bar

 Case No. 13 GR No. 225207 2021-09-29
ATTY. ARISTOTLE T. DOMINGUEZ v. BANK OF COMMERCE 
✍️👨‍⚖️ HERNANDO, J.

Cases penned by Justice Ramon Paul L. Hernando PART 1 case no. 1 to 40 [FULLTEXT].pdf

A lawyer is as much entitled to judicial protection against injustice or imposition of fraud on the part of his client as the client is against abuse on the part of his counsel. The duty of the court is not only to ensure that a lawyer acts in a proper and lawful manner, but also to see to it that a lawyer is paid his just fees. 

Thus, when a compromise agreement is entered into by the patties and as a consequence of which, the suit did not result in a court's judgment on money claims, said compromise agreement may serve as a basis in the award for attorney's fees. 

In petitions for cancellation of
adverse claim, trial courts
are not precluded from
adjudicating matters involving
attorney's fees.

The language of Section 70 of the Property Registration Decree (PD 1529) is clear; it does not limit the issues that may be resolved by the trial court in a petition for cancellation of adverse claim. 

While the trial court is directed to speedily hear the case on the validity of the adverse claim, there is no prohibition or any restriction on the trial court from hearing issues on money judgment particularly on matters concerning attorney's fees and lien.

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In Palanca v. Pecson (Palanca) the Court En Banc upheld the rule against multiplicity of suits to justify its holding that probate courts may pass upon a petition to determine attorney's fees. 

Appropriately, We hold that in a petition for cancellation of adverse claim, trial courts may at the same time hear matters regarding claims for attorney's fees and charging of lien, in observance of the policy against multiplicity of suits. Hence, the lawyer may choose to record and enforce his attorney's fees and lien in a petition for cancellation of adverse claim or he may opt to file an entirely separate action for this purpose.

A Compromise Agreement
between the counsels client
and the adverse party is
one of the factors is
determining the counsel's
lawful fees for the legal
services he rendered. 

Indeed, the compromise agreement and those factors enumerated under Rule 20.01 of the Code of Professional Responsibility (CPR)S may serve as basis for the award, of attorney's fees. 

Granting that a compromise agreement had been reached by the parties, the same may be used to determine the counsel's lawful fees provided it is produced and admitted before the trial court for proper scrutiny and consideration. Gubat v. National Power Corporation is instructive, to wit:

A client may enter into a compromise agreement without the intervention of the lawyer, but the terms of the agreement should not deprive the counsel of his compensation for the professional services he had rendered. If so, the compromise shall be subjected to said fees, x x x.

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As the validity of a compromise agreement cannot be prejudiced, so should not be the payment of a lawyer's adequate and reasonable compensation for his services should the suit end by reason of the settlement. X x x. 

A lawyer is as much entitled to judicial protection against injustice or imposition of fraud on the part of his client as the client is against abuse on the part of his counsel. The duty of the court is not only to ensure that a lawyer acts in a proper and lawful manner, but also to see to it that a lawyer is paid his just fees. Thus, when a compromise agreement is entered into by the patties and as a consequence of which, the suit did not result in a court's judgment on money claims, said compromise agreement may serve as a basis in the award for attorney's fees. Furthermore, quantum meruit, which means as much as he deserves, is likewise a basis especially when the attorney-client relationship was severed prior to the finality of the case. 

Villarama v. Da Jesus mandates such effect in this wise;

Once the attorney has performed the task assigned to him in a valid agreement, his compensation is determined on the basis of what he and the client agreed. In the absence of the written agreement, the lawyer's compensation shall be based on quantum meruit, which means "as much as he deserved." The determination of attorney's fees on the basis of quantum meruit is also authorized "when the counsel, for justifiable cause, was not able to finish the case to its conclusion." 

Memo Plus Gold 30's

In charging lien to secure
attorney's fees, money
judgment and execution
are necessary. 

We hold that a money judgment and execution are necessary in order to charge or enforce attorney's lien. Section 37, Rule 138 of the Rules of Court expresses mandates that:

Section 37. Attorneys' liens. — x x x. He shall also have a lien to the same extent upon all judgments for the payment of money, and executions issued in pursuance of such judgments, which he has secured in a litigation of his client, from and after the time when he shall have the caused a statement of his claim of such lien to be entered upon the records of the court rendering such judgment, or issuing such execution, and shall have the caused written notice thereof to be delivered to his client rod to the adverse party; and he shall have the same right and power over such judgments and executions as his client would have to enforce his lien and secure the payment pf his just fees and disbursements.It is clear from the said provision that attorney's lien attaches on all money judgments and on the subsequent execution thereof which the lawyer secured in advocating the cause of his client in a litigation, provided that (1) the lawyer caused the registration of his lien on the records of the court; and (2) the lawyer caused a written notice to such effect to be delivered to his client and to the adverse party. Logically, it would, be absurd to charge or enforce a lien without judgment or resolution of the case as there is absence of basis for the determination of the legal fees. 

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WHEREFORE, the Petition is GRANTED. The assailed June 22, 2015 Decision of the Court of Appeals is REVERSED sad SET ASIDE, This case is hereby REMANDED to the Regional Trial Court, Branch 193 of Marikina City, for the determination of attorney's fees based on quantum meruit.

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