Case Summary (G.R. No. 31884)
Judgments and Initial Considerations
The total judgment awarded in the Court of First Instance of Rizal was P102,597.38, while the judgment in Manila amounted to P103,297.38. The discrepancy between these amounts can be attributed to accumulated interest accrued between the dates of the judgments. Central to the case is the stipulation in the mortgage contracts for attorney's fees, which were set at 10% of the amounts due.
Attorney's Fees Dispute
Defendant B.A. Green admitted the execution of both the note and the mortgage but contested the recoverability of attorney's fees, arguing that the Manila Building & Loan Association is entitled to only one set of attorney's fees despite the parallel proceedings in different jurisdictions. The core of the legal discussion revolved around the interpretation of whether multiple awards of attorney's fees could be justified given the requirements for foreclosure in separate courts for properties in different locations.
Court's Reasoning on Attorney's Fees
The court recognized that the mortgage encompassed real property located in two distinct locations, necessitating actions in both the Manila and Rizal courts for the legal foreclosure process. This dual requirement mandated additional legal effort, justifying the allowance for attorney's fees in both cases. Ultimately, the court decided to award attorney's fees of P7,000 to the Manila Building & Loan Association applicable to the aggregate work across both jurisdictions.
Fees in O’Brien Case
In the case involving O’Brien et al., the mortgage expressly stipulated an attorney's fee of P2,500 for foreclosure actions. The court maintained that the parties bound themselves to this stipulation and thus granted attorney's fees for that specific amount, which would cover all actions related to the mortgage across the courts.
Finality of Judgments
The court mandated that both the Manila Building & Loan Association and O’Brien et al. are entitled to only one satisfaction of their respective judgments. This means that payment
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Case Overview
- The case involves two consolidated appeals from the Manila Building & Loan Association against B. A. Green and S. W. O’Brien et al.
- The rulings were issued on February 27, 1930, under G.R. No. 31884 and G.R. No. 31866.
- The decisions stem from judgments rendered in the Court of First Instance of Rizal and the City of Manila, with amounts of P102,597.38 and P103,297.38, respectively.
Key Facts
- The Manila Building & Loan Association holds a mortgage that stipulates a 10% attorney's fee in the event of foreclosure.
- The total attorney's fees allowed by the courts were P7,500, while the stipulated fee would have been approximately P10,330.
- B. A. Green admitted to executing both the note and the mortgage but did not contest the merits or the amount owed.
Legal Issues
- The central legal issue revolves around whether the Manila Building & Loan Association can recover attorney's fees for foreclosure actions in both provinces for the same mortgage.
- Green contended that only one attorney's fee should be applicable despite the need for separate decrees