G.R. No. L-4406, October 23, 1908

FACTS: Antonia Valencia y Orus (Plaintiff), through a new attorney, filed a motion to discontinue her action against Juan Jimenez y Mijares and Gabriel Fuster y Fuster (Defendants) claiming ownership and seeking annulment of the sale of land. However, her original attorneys had a lien on the judgment (awarding the property to Plaintiff) for fees and disbursements. The Defendants claimed the land through a tax deed; a question arose concerning their good faith in the acquisition.

ISSUES: (1) Whether the motion to discontinue filed by the Plaintiff through a new attorney should be granted; (2) Whether the Plaintiff is entitled to rents and profits from the Defendants beyond the date they appeared in the action, given the assertion of good faith.

RULING: (1) No. The motion to discontinue was denied because (a) the new attorney’s power of attorney did not authorize a judgment absolving the defendants on the merits (only discontinuance), (b) the motion conditioned the discontinuance on waiving costs, which prejudiced the Defendants, and (c) the original attorneys’ lien gave them an interest in the judgment and the right to pursue the action to secure their fees.

(2) Yes. Plaintiff is entitled to rents and profit from on or after the date the Defendants appeared in the action (May 16, 1906), because that is the date when Defendants were advised of the vice of their title and therefore were in bad faith. Prior to this time, Defendants claim that they were in good faith since their deed was regular and they had no actual knowledge of defects.