Title
Manila Building and Loan Association vs. B. A. Green
Case
G.R. No. 31884
Decision Date
Feb 27, 1930
In a foreclosure proceeding with two suits in different courts, the plaintiff may recover reasonable attorney's fees from both but is limited to one fee as per the mortgage, with satisfaction of one judgment fulfilling the other.
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Case Digest (G.R. No. 31884)

Facts:

  • The case involves the Manila Building & Loan Association (plaintiff/appellee) against B. A. Green (defendant/appellant) and S. W. O'Brien et al. (defendants/appellees).
  • The decision was rendered on February 27, 1930, concerning two consolidated cases from the Court of First Instance of Rizal and the City of Manila.
  • The first judgment in Rizal was for P102,597.38, and the second in Manila was for P103,297.38, with the difference due to accumulated interest.
  • The mortgage stipulated a 10% attorney's fee in the event of foreclosure.
  • The courts allowed a total of P7,500 in attorney's fees, which was less than the 10% fee of approximately P10,330.
  • B. A. Green admitted to executing the note and mortgage but argued that only one attorney's fee should be awarded for the same mortgage.
  • The mortgage covered properties in two provinces, necessitating separate decrees from both courts.
  • The court awarded P7,000 in attorney's fees for the association and upheld P2,500 for O'Brien et al., with interest from the date of the answer in the first case.

Issue:

  • (Unlock)

Ruling:

  • The court ruled that the Manila Building & Loan Association is entitled to recover attorney's fees from both courts due to the necessity of separate decrees for properties in different provinces.
  • The attorney's fees for the Manila Building & Loan Association were mo...(Unlock)

Ratio:

  • The court's decision was based on the principle that the mortgage covered properties in two distinct provinces, requiring separate legal actions for each property.
  • This justified ...continue reading

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