Facts:

• C.N. Hodges sold a truck to Juan Sobredo for P1,800.
• Sobredo and Rosalio Carteciano executed a promissory note promising to pay Hodges the sum of P1,800 with interest and attorney's fees in case of litigation.
• Sobredo only paid P800, so Hodges sued him and Carteciano in the Municipal Court of Iloilo.
• The court decided in favor of Hodges and ordered Sobredo and Carteciano to pay him P1,000 with interest and attorney's fees.
• Defendants appealed to the Court of First Instance (CFI) of Iloilo, claiming that Carteciano was only a guarantor, not a surety, and that they should be awarded damages for the attachment of their properties.
• The CFI affirmed the decision of the Municipal Court and dismissed the counterclaim of the defendants.
• Defendants appealed to the Court of Appeals, where Sobredo was granted partial relief. The Court of Appeals ordered Hodges to pay Sobredo P480 on his counterclaim, which should be offset against the judgment of P1,000 with interest.
• During the pendency of the appeal, Hodges died and Philippine Commercial and Industrial Bank (PCIB) was appointed as the administrator of his estate.
• After the decision of the Court of Appeals became final, PCIB filed a motion for execution of the amount adjudged plus costs in the CFI and Municipal Court.
• Defendants filed an urgent motion to declare the notice of sale illegal and to suspend the sale at public auction.
• They argued that the notice did not conform to the writ of execution, that they should only pay P520 plus interest instead of P1,000 as stated in the notice of sale, that the notice was made less than 10 days from receipt of the writ of execution, and that the attorney's fees had already been paid to Hodges' former counsel.
• The trial court declared the notice of sale illegal and fixed the total amount payable by Carteciano after deducting Sobredo's counterclaim and interest.
• The court also held that there was no need to pay attorney's fees to the plaintiff.
• PCIB filed a motion for reconsideration, and the court modified the judgment by including the bill of costs allowed for the plaintiff in the CFI.

Issue:

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Ruling:

• The trial court correctly gave Carteciano the benefit of Sobredo's counterclaim, making the amount due to the Hodges estate as of May 23, 1954, only P520.
• It was improper to deduct again the amount representing Carteciano's co-debtor liability, as it had already been previously deducted.
• The total amount payable by defendants as of September 23, 1966, was P1,426.93, not P946.93.
• The payment of attorney's fees to Hodges' former counsel should not have been deducted from what was due under the judgment, as the fees were not due personally to the attorney but to Ho...(Unlock)