Case Summary (G.R. No. 113447)
Case Background
The case originated when M. E. Grey initiated a legal action against Insular Lumber Company to recover a monetary sum. Following Grey's death, Ruth Grey was appointed administratrix of the estate and substituted as the plaintiff in the ongoing action. The trial court ultimately ruled in favor of the plaintiff, and Insular Lumber Company issued a check in the amount of P88,453.56, made payable to Ruth Grey, which was subsequently delivered to Atty. Carlos Hilado, representing the plaintiff.
Attorney's Fee Dispute
Atty. Hilado filed a motion to collect a contingent fee totaling 25% of the judgment amount, which equated to P22,113.89. Hilado argued that as per his contract with M. E. Grey, he was entitled to this fee and requested that a second check be issued directly to him. Insular Lumber Company opposed the motion, contending that it had fulfilled its obligation by issuing the check to the administratrix and that any claims for attorney's fees should be filed in the probate proceedings.
Court's Decision and Implications
The trial court, upon reviewing Hilado's motion, ruled in his favor, recorded the attorney's lien, and ordered the company to issue two separate checks. The company subsequently appealed the order, raising concerns about the appropriateness of the trial court's decision, pointing out it had no vested interest in the estate's distribution.
Legal Considerations and Lien Issues
The appellate court emphasized the principle that judgment debtors have fully complied with their obligations once payment is made. The court noted that while Atty. Hilado's lien was recognized, it had to be established that his claim was justified and that the legal representative of the estate—that is, administratrix Ruth Grey—had not been afforded an adequate opportunity to respond to Hilado's motion. The attorneys involved were required to ensure that the estate's representative had the chance to address any claims against the estate, particularly giv
...continue readingCase Syllabus (G.R. No. 113447)
Case Background
- The case originated as a collection suit filed by M. E. Grey against the Insular Lumber Company in the Court of First Instance of Negros Occidental.
- Following M. E. Grey's death, Special Proceedings No. 387 were initiated for the administration of his estate, leading to Ruth Grey's appointment as the administratrix.
- Ruth Grey replaced M. E. Grey as the plaintiff in the existing case against the Insular Lumber Company.
Proceedings and Judicial Decisions
- The trial court ruled in favor of the plaintiff, but the Supreme Court modified the judgment in G.R. No. L-535.
- In compliance with the Supreme Court's final judgment, the Company issued Check No. 220481 for P88,453.56 to Ruth Grey, as administratrix, and delivered it to Atty. Carlos Hilado, counsel for the plaintiff.
Attorney's Fee Claim
- On February 23, 1954, Atty. Hilado filed a motion claiming a 25% contingent fee of P22,113.89, asserting that he had a contract with M. E. Grey for these fees.
- Atty. Hilado requested the court to cancel Check No. 220481 and reissue two separate checks: one to the administratrix for P66,340.17 and another to himself for P22,113.39.
- He indicated that he was unsure of Ruth Grey's stance on the fee since she was residing in the United States.