Case Digest (G.R. No. 124518)
Facts:
In Rodco Consultancy and Maritime Services Corporation v. Floserfino G. Ross and Antonia T. Ross (G.R. No. 259832, November 6, 2023), petitioner Rodco is a Philippine corporation providing litigation financing and professional assistance to repatriated seafarers. In August 2006, respondent Floserfino Ross, a repatriated seafarer, engaged Rodco through a Special Power of Attorney, an Affidavit of Undertaking, and an Irrevocable Memorandum of Agreement, authorizing it to process his claims against his manning agency, shipowner, and insurer in exchange for reimbursement of expenses and a portion of his proceeds. Ross and his wife, Antonia, issued two Philippine National Bank checks dated April 16, 2009, totalling ₱1,240,800.00, which were dishonored for insufficient funds. Rodco sent demand letters but received no payment. It then filed a Complaint for Sum of Money and Damages before the Regional Trial Court (RTC) of Quezon City, which ruled in favor of Rodco, ordering payment of tCase Digest (G.R. No. 124518)
Facts:
- Background and Parties
- RODCO Consultancy and Maritime Services Corporation is a domestic corporation providing consultancy, financial assistance, and referral to lawyers for repatriated seafarers seeking benefits, claims, and insurance proceeds.
- Floserfino G. Ross, a repatriated seafarer, engaged RODCO’s services to file claims against his manning agency, foreign shipowner, and insurer.
- Agreements Executed
- Special Power of Attorney (SPA) granted RODCO exclusive rights to process and negotiate claims, required prior approval before any settlement, and provided for segregation of professional fees from claim proceeds.
- Affidavit of Undertaking bound Floserfino to reimburse RODCO from proceeds and made revocation without just cause ground for liability.
- Irrevocable Memorandum of Agreement integrated SPA and Affidavit, detailing RODCO’s financing of litigation expenses—including lawyers’ fees, medical and liaison fees—and obliging Floserfino and his wife Antonia to issue post-recovery checks to RODCO.
- Proceedings Below
- After successful recovery, Floserfino allegedly issued two PNB checks amounting to PHP 1,240,800, both dishonored for closed account; RODCO’s demand letters went unheeded.
- RODCO filed a Complaint for Sum of Money and Damages; the RTC rendered judgment in RODCO’s favor, ordering full payment, 6% interest, moral and exemplary damages, attorney’s fees, and costs.
- On appeal, the CA reversed and dismissed the complaint, holding the contract void for (a) unlawful practice of law by RODCO (not a law firm), (b) absence of a price-certain contingent fee, (c) no proof of cash advances, and (d) parties being in pari delicto for dishonored checks.
Issues:
- Whether the contract entered into by RODCO, Floserfino G. Ross, and Antonia T. Ross is valid and enforceable.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)