GR 42390; (February, 1978) (Digest)
G.R. No. L-42390. February 28, 1978.
EUNILA MARAPO, for herself and for and in behalf of her minor children, petitioners, vs. PHILIPPINE PACKING CORPORATION and the WORKMEN’S COMPENSATION COMMISSION, respondents.
FACTS
This case involves an Amending Resolution to a prior decision of the Supreme Court. In the main case, the petitioners, the widow and minor children of a deceased employee, successfully claimed death compensation benefits from the respondent, Philippine Packing Corporation. The Court’s decision dated January 31, 1977, reversed the Workmen’s Compensation Commission and ordered the corporation to pay the petitioners the sum of P6,000.00 as death compensation benefit plus P200.00 as burial expenses.
Subsequent to that decision, the petitioners’ counsel, Francisco D. Alas, filed a Manifestation and Motion for Attorney’s Fee. He prayed for an amendment to the dispositive portion of the January 31, 1977 decision to include an award for attorney’s fees. His motion was based on Section 31 of the Workmen’s Compensation Act, as amended, which provides for such fees.
ISSUE
The sole issue presented in this Amending Resolution is whether the petitioners’ counsel is entitled to an award of attorney’s fees under Section 31 of the Workmen’s Compensation Act, and if so, on what amount the percentage-based fee should be computed.
RULING
The Supreme Court granted the motion, finding it meritorious. The Court ruled that an award of attorney’s fees is mandatory under Section 31 of the Workmen’s Compensation Act when compensation is recovered. The legal logic is clear: the statute itself creates the right to such fees to ensure successful claimants are properly represented without diminution of their awarded benefits, as the fee is an additional liability of the employer.
However, the Court clarified the proper computation base. It held that the 10% attorney’s fee should be calculated solely on the principal death compensation benefit of P6,000.00. The statutory burial expense of P200.00 is excluded from this computation. The Court reasoned that the burial expense is a separate, fixed reimbursement provided by law, distinct from the compensation benefit itself. Therefore, the attorney’s fee is P600.00 (10% of P6,000.00).
Consequently, the dispositive portion of the January 31, 1977 decision was amended to order the respondent corporation to pay the petitioners P6,000.00 as death compensation, P200.00 as burial expenses, and the additional amount of P600.00 as attorney’s fee, with costs.