Facts:
On February 4, 1993,
Primetown Property Group, Inc. contracted with
Titan-Ikeda Construction and Development Corporation for structural works on the Prime Tower in Kalayaan Avenue, Makati City, and on January 31, 1994 they executed a Supplemental Agreement awarding architectural works to Titan-Ikeda Construction to be paid by conveyance of condominium units and parking slots; on June 30, 1994, Primetown Property executed a Deed of Absolute Sale conveying a total of 114 condominium units and 20 parking slots in exchange for P130,000,000.00. As works progressed, Integraltech, Inc. assessed that as of October 12, 1995 Titan-Ikeda Construction had completed only 48.71% of the architectural works, leaving an overpayment equivalent to P66,677,000.00 in condominium units and parking slots, and Primetown Property filed suit on July 2, 1997 to recover the excess; Titan-Ikeda filed counterclaims, and administrative relief was earlier sought at the HLURB which on April 29, 1997 directed delivery of keys and management certificates. The RTC rendered judgment on August 5, 1998 granting Titan-Ikeda relief on its counterclaim, but this was set aside by the Supreme Court on February 12, 2008, which remanded the case to the RTC to determine the percentage of work completed as of October 12, 1995, the number of units sold to third persons, and to compute liabilities; on remand the RTC on April 30, 2012 found 48.71% completion and ordered Titan-Ikeda to return sixty condominium units (identifying specific Certificate of Title numbers), and that decision became final and executory after dismissal of Titan-Ikeda’s belated appeal for failure to pay fees. As counsel for Primetown Property,
Dimayuga Law Offices caused annotation of an attorney’s lien based on a retainer agreement entitling it to 12% of monetary awards and enforcement by motion, and the RTC in an Omnibus Order dated April 10, 2013 subjected ten specified condominium titles to the attorney’s lien; Primetown Property paid the law firm in kind by Deeds of Absolute Sale dated May 5, 2015 for the ten units and the firm updated real property taxes and filed an Affidavit of Adverse Claim annotated on those ten certificates. Unexpectedly, Primetown Property and Titan-Ikeda later filed a Joint Motion to Approve Compromise Agreement which the RTC approved and which contained provisions for cancellation of lis pendens and adverse claims on the sixty titles, and on June 4, 2018 the RTC granted Titan-Ikeda’s motion to cancel Dimayuga Law Offices’ attorney’s lien and adverse claim on the ten titles; the CA dismissed and later denied Dimayuga Law Offices’ petition for certiorari, and this petition for review under Rule 45 followed, culminating in this decision dated September 23, 2020.
Issues:
Can the attorney’s fees and adverse claim of
Dimayuga Law Offices annotated as a lien on the ten condominium certificates of title be cancelled pursuant to the compromise agreement entered into between
Primetown Property Group, Inc. and
Titan-Ikeda Construction and Development Corporation?
Ruling:
Ratio:
Doctrine: