CASE DIGEST
DOMINGUEZ V. BANK OF
COMMERCE
G.R. No. 225207, September 29, 2021
SECOND DIVISION, HERNANDO
J.
Attorney's Fees; Attorney's Lien
DOCTRINE: In petitions for cancellation of adverse
claim, trial courts are not precluded from adjudicating matters involving attorney's
fees.
In 2007, Carmelo Africa Jr. and his
brothers engaged the legal services of Atty. Dominguez to prevent the Bank of
Commerce from taking possession of their family homes. Atty. Dominguez charged
P250,000.00 as his acceptance fee and was promised a success fee of 20% of the
amount reduced from the original redemption price. In 2009, Carmelo and his
brothers sought Atty. Dominguez's services again in a suit against Hanjin Heavy
for proceedings for cancellation of adverse claim. It is in this case that the
lawyer filed for a lien on the judgment in the form of attorney's fees. The RTC
denied it stating that the claim for attorney's fees should be made in a
separate civil case.
Whether or not the claim for attorney's fees should
be pursued in a separate action rather than in the petition for cancellation of
adverse claim.
NO.
The court ruled in favor of Atty. Dominguez, stating that trial courts can rule
on money judgments, including attorney's fees, in such petitions. The court
clarified that attorney's lien can only be enforced after a money judgment
becomes final and executory. A compromise agreement between the client and the
adverse party is one factor in determining lawful fees for legal services. The
court also held that money judgment and execution are necessary to charge or
enforce attorney's lien. The case is remanded to the trial court to determine
the attorney's fees based on quantum
meruit.
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