Title
Inciong vs. Domingo
Case
G.R. No. 96628
Decision Date
Jul 3, 1992
In the case of Inciong v. Domingo, the Commission on Audit's power to diminish substantive rights is questioned when it disallows the payment of attorney's fees to petitioner Atty. Ceferino Inciong, despite a final and executory decision of the Regional Trial Court ordering the payment.
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Case Digest (G.R. No. 96628)

Facts:

  • The case involves the question of whether the Commission on Audit (COA) has the power to diminish substantive rights when it disallows the payment of attorney's fees to petitioner Atty. Ceferino Inciong.
  • The Philippine Sugar Commission (PHILSUCOM) failed to pay real estate taxes on its sugar refinery in Barangay Caloocan, Balayan, Batangas.
  • The Provincial Treasurer of Batangas scheduled the sale of the refinery, but PHILSUCOM filed a petition for prohibition in the Court of Appeals to restrain the sale.
  • The Court of Appeals issued a restraining order to maintain the status quo.
  • Atty. Ceferino Inciong, representing Barangay Caloocan, filed a motion for intervention, claiming that the barangay has a 10% share of the property tax being collected from PHILSUCOM.
  • PHILSUCOM entered into an Amnesty Compromise Agreement with the Municipal Treasurer of Balayan, Batangas, and paid the amount due.
  • Atty. Ceferino Inciong filed a case for payment of attorney's fees against the Province of Batangas, Municipality of Balayan, and Barangay Caloocan before the Regional Trial Court.
  • The court rendered a judgment in favor of Atty. Inciong, ordering Barangay Caloocan to pay him attorney's fees equivalent to 10% of the amount awarded to the barangay.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court ruled in favor of Atty. Inciong and granted the petition.
  • The Court held that the position of the COA Chairman, Eufemio Domingo, in disallowing t...(Unlock)

Ratio:

  • The employment of Atty. Inciong by Barangay Caloocan, even if allegedly unauthorized by the Sangguniang Barangay, is binding on the barangay as it took no prompt measure to repudiate his employment.
  • The decision of the Regional Trial Court in Civil Case No. 1878, which directed Barangay Caloocan to pay attorney's fees to Atty. Inciong, has become final and executory and is binding on the barangay.
  • COA Circular No. 86-255 cannot diminish the substantive right of Atty. Inciong to recover attorney's fees under the final and executory decision of the Regional Trial Cour...continue reading

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