Facts:

• The case involves the Municipal Council of Iloilo (plaintiff-appellee) and Tan Ong Sze Vda. de Tan Toco (appellant), among others.
• The dispute centers on the legality of an assignment of credits, rights, and interests in a judgment.
• On March 20, 1924, the Court of First Instance of Iloilo ruled in favor of Tan Ong Sze Vda. de Tan Toco, awarding her P42,966.40 for a strip of land taken by the municipality to widen a public street.
• This judgment was affirmed by the Supreme Court on November 28, 1924.
• Various claims were made against the judgment amount, including those by Attorney Jose Evangelista for professional services, and by the Philippine National Bank, Antero Soriano, and Mauricio Cruz & Co.
• The court ordered the municipality to file an interpleader action to resolve these claims, resulting in the present case.
• The lower court upheld the validity of the assignment of the judgment amount by Tan Toco's attorney-in-fact, Tan Buntiong, to Attorney Antero Soriano, and subsequently to Mauricio Cruz & Co.
• The appellant challenged this decision, arguing that the assignment was not made in consideration of professional services and violated legal prohibitions.

Issue:

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Ruling:

• The Supreme Court affirmed the decision of the lower court, declaring the assignment valid and binding.
• The court ordered the Municipal Council of Iloilo to pay Mauricio Cruz & Co., Inc. the balance of P30,966.40 and to deposit this amount in a local bank within ninety days.
• If the deposit was not made, the amount would bea...(Unlock)

Ratio:

• The court held that an agent or attorney-in-fact empowered to pay the debts of the principal and employ lawyers to defend the principal's interests is impliedly empowered to pay attorney's fees for services rendered in the principal's interests.
• This includes satisfying such fees by assigning a judgment rendered in favor of the principal.
• The court noted that when a...continue reading