GR 45105; (November, 1938) (Digest)
G.R. No. 45105 ; November 26, 1938
MACONDRAY & CO., INC. vs. MACARIO JOSE
FACTS
Plaintiff Macondray & Co. obtained a final judgment against defendant Macario Jose for a sum of money. To satisfy part of the judgment, two mortgaged refrigerators were delivered to the plaintiff and sold at auction for P125, leaving a balance due. The plaintiff sought execution against the surety, Luzon Surety Co., Inc., but the Supreme Court reversed the order granting execution and instead sentenced the plaintiff to pay costs to the defendant. Before the case was remanded, defendant’s counsel, Attorney Zosimo Rivas, filed a notice of his attorney’s lien over the costs awarded to his client and petitioned the Supreme Court to order the plaintiff to pay him those costs directly. The Supreme Court denied his petition. After remand, Attorney Rivas moved in the trial court for recognition of his lien as preferred and for a writ of execution against the plaintiff for the costs. The trial court granted his motion ex parte. The plaintiff moved to set aside the order, arguing its right to set off the costs against the balance still owed by the defendant was superior to the attorney’s lien. The trial court denied the plaintiff’s motion, declaring the attorney’s lien superior. The plaintiff appealed.
ISSUE
Whether the plaintiff’s right to set off the costs awarded against the defendant against the unpaid balance of its judgment is superior and preferred to the attorney’s lien of defendant’s counsel over those same costs.
RULING
Yes. The Supreme Court reversed the trial court’s order. First, the issue of preference was already res judicata; the Supreme Court’s prior resolution denying Attorney Rivas’s petition to order the plaintiff to pay him the costs constituted a final ruling that his lien was not preferred over the plaintiff’s right. Second, even assuming the issue was not res judicata, under Section 37 of the Code of Civil Procedure, an attorney’s lien on a judgment takes effect only from the time notice is entered in the record and served on the adverse party. Here, the plaintiff’s judgment credit against the defendant arose long before Attorney Rivas filed his notice of lien. Therefore, under Article 1924 of the Civil Code, the plaintiff’s earlier credit enjoys preference. The plaintiff is entitled to set off the costs against the judgment balance, and Attorney Rivas is not entitled to the writ of execution.
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