G.R. No. 44248 ; October 26, 1935
VICENTE ARTUYO, plaintiff-appellee, vs. ANTERO AZAÑA, ET AL., defendants. ANTERO AZAÑA, appellant.

FACTS

The case originated from a judgment of the Court of First Instance of Manila awarding a deposit of fifty thousand pesos (P50,000) in the Philippine National Bank, held in the name of defendant-appellant Antero Azaña, to plaintiff-appellee Vicente Artuyo. While the appeal was pending before the Supreme Court, the parties filed a joint motion to dismiss the appeal based on a compromise agreement. They stipulated that the amount in dispute, which had been deposited with the Monte de Piedad and Savings Bank by court order, be divided: P15,000 to Azaña and P35,000 plus all accrued interest to Artuyo. Subsequently, both parties filed motions requesting that their respective attorneys’ fees be deducted from their shares before distribution.

ISSUE

Whether the Supreme Court should approve the parties’ compromise agreement and the ancillary motions for payment of attorneys’ fees from the respective shares.

RULING

Yes. The Supreme Court approved the compromise agreement, as it is authorized under Article 1809 of the Civil Code. Judgment was rendered ordering the Monte de Piedad and Savings Bank to distribute the deposited funds as follows: (1) Pay P15,000 to Antero Azaña, from which P2,000 shall be paid to his attorney, Anastacio R. Teodoro, and P1,000 to his other attorney, Jose O. Vera; (2) Pay the remaining P35,000, plus all unpaid and future interest on the total P50,000 deposit, to Vicente Artuyo, from which P5,000 shall be deducted and paid to his attorneys, Ezpeleta & Varona. The appeal was dismissed without special pronouncement as to costs.

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