GR L 46365; (April, 1939) (Digest)
G.R. No. L-46365. April 26, 1939.
THE PHILIPPINE NATIONAL BANK, plaintiff-appellant, vs. PARDO Y ROBLES HERMANOS, ET AL., defendants-appellees.
FACTS
The Philippine National Bank (PNB), as the highest bidder in a public sale of mortgaged properties under receivership, moved for the receiver to deliver possession and render a final accounting. The defendants opposed delivery unless their attorney, J. Exequiel Espinas, was first paid a balance of P1,700 for his fees (total P2,000, with P300 already paid by the receiver under prior court orders). The trial court, in its order, denied the immediate payment of the P1,700 but held it could later fix the amount of attorney’s fees and order PNB to pay it. PNB appealed this portion of the order.
ISSUE
Whether the trial court could fix the amount of attorney’s fees for the defendants’ counsel and order the plaintiff (PNB) to pay them from the receivership funds.
RULING
No. The Supreme Court reversed the trial court’s order. The general rule is that attorney’s fees are to be paid by the party who engaged the attorney’s services (the defendants). Fees cannot be charged against the receivership funds or the plaintiff absent evidence that the legal services rendered by the defendants’ attorney benefited the receivership estate or the plaintiff. The Court found no such evidence adduced. The plaintiff’s prior compliance with orders to pay P300 did not constitute consent to pay the remaining balance. Each party must bear the cost of its own attorney.
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