G.R. No. 28252 , March 14, 1928
HELEN DAHLKE, assisted by her husband Albert H. Dahlke, plaintiff-appellant, vs. CARMEN VIÑA, defendant. GIBBS & McDONOUGH, appellees.

FACTS

The law firm of Gibbs & McDonough, attorneys for plaintiff Helen Dahlke, filed a notice of attorney’s lien for P2,000 upon a judgment rendered in Dahlke’s favor. The Supreme Court noted the lien on record. After the case was remanded to the trial court, the attorneys petitioned for a writ of execution to be issued in their name so the judgment amount could be paid directly to them. The trial court granted the petition. Dahlke moved to revoke the order, arguing she did not owe the attorneys that amount, had not been informed of any debt, was not insolvent, and no formal demand had been made. The trial court denied her motion without receiving evidence on the value of the attorneys’ services. Dahlke appealed.

ISSUE

Whether the trial court erred in ordering the issuance of a writ of execution in favor of the attorneys for the full amount of their claimed lien (P2,000) without first determining the actual amount of the “just fees” due to them, especially when the client contests the amount.

RULING

YES. The Supreme Court reversed the trial court’s order and remanded the case.
The Court held that while Gibbs & McDonough properly filed a notice of lien in compliance with Section 37 of the Code of Civil Procedure, and were entitled to a lien for their “just fees and disbursements,” the amount of that lien had not been legally determined. The lien was based on a *quantum meruit* claim (reasonable value of services), not a written contract, and the client contested the amount. The statute grants the attorney the right to enforce the lien “to the extent that may be necessary for the payment of his just fees.” Therefore, before enforcement via execution, the exact amount of the just fees must be judicially ascertained, especially when disputed. The client has a right to be heard and to present evidence on the reasonableness of the claimed fees. The proper procedure is for the court to receive evidence from both parties to determine the value of the services and fix the amount of the lien. Only after such determination may execution issue in favor of the attorneys for that specific amount.