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

FACTS

The case involved a dispute over a deposit of P50,000 with the Philippine National Bank (later referenced as deposited with the Monte de Piedad and Savings Bank) in the name of defendant-appellant Antero Azaña. The Court of First Instance of Manila initially adjudicated the entire sum, plus interest, to plaintiff-appellee Vicente Artuyo, subject to payment of income tax. During the appeal before the Supreme Court, the parties filed a joint motion to dismiss the appeal based on a compromise agreement (stipulation) they had entered into. The agreement provided for the settlement of the case, with P15,000 to be paid to Azaña and the remainder (P35,000 plus all interest) to Artuyo. Subsequently, both parties filed separate motions, with their clients’ conformity, requesting the Supreme Court to order the deduction and payment of their respective attorneys’ fees from the amounts due to their clients before distribution.

ISSUE

Whether the Supreme Court should approve the parties’ compromise agreement and grant the motions for the payment of attorneys’ fees from the deposited funds.

RULING

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

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