Professional Documents
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Occena vs. Marquez
Occena vs. Marquez
Republic of the Philippines second Motion for Payment of Partial Attorneys' Fees, dated July 5, 1966, praying for the
SUPREME COURT release to them of the amount of P30,000.00 previously prayed for by them. Action on the
Manila matter was, however, deferred in an order dated August 6, 1966, upon the request of the
SECOND DIVISION Quijano and Arroyo Law Offices in behalf of heirs William Ogan, Jr. and Ruth Ogan for
deferment until after all the instituted heirs shall have agreed in writing on the total
G.R. No. L-27396 September 30, 1974 attorney's fees. Petitioners filed a Motion for Reconsideration under date of September 12,
JESUS V. OCCEÑA and SAMUEL C. OCCEÑA, Petitioners, vs. HON. PAULINO S. 1966, asking the court to reconsider its deferment order and praying that payment to them
MARQUEZ, District Judge, Court of First Instance of Bohol, Branch I, respondent. of P30,000.00 be approved on the understanding that whatever amounts were paid to
I.V. BINAMIRA, Co-Executor, Estate of W.C. Ogan, Sp. Proc. No. 423, CFI of Bohol, them would be chargeable against the fees which they and the instituted heirs might
Intervenor. agree to be petitioners' total fees.chanroblesvirtuallawlibrary chanrobles virtual law library
ANTONIO, J.: On November 2, 1966, respondent Judge issued an order fixing the total fees of petitioners
In this petition for certiorari with mandamus, petitioners seek (1) to nullify the order of for the period March, 1963 to December, 1965 at P20,000.00. Petitioners moved to
respondent Judge Paulino S. Marquez of the Court of First Instance of Bohol, Branch I, in Sp. reconsider that order. On January 12, 1967, respondent issued an order not only denying
Proc. No. 423 entitled "In the Matter of the Testate Estate of William C. Ogan," in relation petitioners' Motion for Reconsideration but also modifying the original order by fixing
to petitioners' claim for partial payment of attorney's fees in the amount of P30,000.00, petitioners' fees for the entire testate proceedings at
dated November 2, 1966, fixing at P20,000.00 petitioners' attorney's fees, "which would P20,000.00.chanroblesvirtuallawlibrary chanrobles virtual law library
cover the period March 1963 to December 1965," and directing its immediate payment Petitioners contend that respondent Judge acted with grave abuse of discretion or in
minus the amount of P4,000.00 previously received by petitioners, and his second order, excess of jurisdiction in fixing the entire attorney's fees to which they are entitled as
dated January 12, 1967, denying petitioners' motion for reconsideration and modifying the counsel for the executrix, and in fixing the said fees in the amount of P20,000.00. The
November 2, 1966 order by deleting therefrom the above-quoted phrase; (2) to direct the reasons given by petitioners in support of their contention are: (1) the motion submitted by
said court to approve the release to them as attorney's fees the amount of P30,000.00 petitioners for the court's resolution was only for partied payment of their attorney's fees,
minus the amount of P4,000.00 already advanced to them by the executrix; and (3) to without prejudice to any agreement that might later be reached between them and the
allow petitioners to submit evidence to establish the total attorney's fees to which they are instituted heirs on the question of total attorney's fees, yet respondent Judge resolved the
entitled, in case no agreement thereon is reached between them and the instituted question of total attorney's fees; (2) considering that the only question raised by
heirs.chanroblesvirtuallawlibrary chanrobles virtual law library petitioners for the court's determination was that of partial attorney's fees, they never
The gross value of the estate of the late William C. Ogan subject matter of the probate expected the court to make a ruling on the question of total attorney's fees; consequently,
proceeding in Sp. Proc. No. 423 is more than P2 million. Petitioners, Atty. Jesus V. Occeña petitioners did not have the opportunity to prove to total fees to which they were entitled,
and Atty. Samuel C. Occeña, are the lawyers for the estate executrix, Mrs. Necitas Ogan and, hence, they were denied due process of law; (3) of the seven heirs to the estate, five
Occeña, and they had been representing the said executrix since 1963, defending the had agreed to petitioners' motion for partial payment to them of attorney's fees in the
estate against claims and protecting the interests of the estate. In order to expedite the amount of P30,000.00, while the remaining two did not oppose the motion; (4) in his order,
settlement of their deceased father's estate, the seven instituted heirs decided to enter respondent Judge stated that he based the amount of P20,000.00 on the records of the
into compromise with the claimants, as a result of which the total amount of P220,000.00 case, but the amount of attorney's fees to which a lawyer is entitled cannot be determined
in cash was awarded to the claimants, including co-executor Atty. Isabelo V. Binamira, his on the sole basis of the records for there are other circumstances that should be taken into
lawyers and his wife. A partial distribution of the corpus and income of the estate was consideration; and (5) contrary to respondent Judge's opinion, the mere fact that one of
made to the heirs in the total amount of P450,000.00. On November 18, 1966, the estate the attorneys for the executrix is the husband of said executrix, is not a ground for denying
and inheritance taxes were completely settled by the executrix and the requisite tax the said attorneys the right to the fees to which they are otherwise
clearance and discharge from liability was issued by the Commissioner of Internal entitled.chanroblesvirtuallawlibrary chanrobles virtual law library
Revenue.chanroblesvirtuallawlibrary chanrobles virtual law library Only Judge Paulino S. Marquez is named respondent in the present petition, for, according
Petitioners filed a Motion for Partial Payment of Attorneys' Fees, dated November 18, 1965, to petitioners, "no proper party is interested in sustaining the questioned proceedings in
asking the court to approve payment to them of P30,000.00, as part payment of their fees the Lower Court." chanrobles virtual law library
for their services as counsel for the executrix since 1963, and to authorize the executrix to In his Answer to the petition, respondent Judge alleged that (a) petitioners' proper remedy
withdraw the amount from the deposits of the estate and pay petitioners. Three of the is appeal and not a special civil action, considering that there is already a final order on the
heirs, Lily Ogan Peralta, William Ogan, Jr. and Ruth Ogan, moved to defer consideration of motion for payment of fees; (b) petitioner Atty. Samuel Occeña is the husband of executrix
the motion until after the total amounts for the executrix's fees and the attorney's fees of Necitas Ogan Occeña, hence, Samuel Occeña's pecuniary interest now goes against the
her counsel shall have been agreed upon by all the heirs. In July, 1966, five of the seven pecuniary interest of the four heirs he is representing in the special proceeding; (c) one
instituted heirs, namely, Lily Ogan Peralta, Necitas Ogan Occena, Federico M. Ogan, Liboria reason why respondent Judge ordered the deletion of the phrase containing the period
Ogan Garcia and Nancy Ogan Gibson, filed with the court a Manifestation stating that they March, 1963 to December, 1965 from his November 2, 1966 order is that there are
had no objection to the release of P30,000.00 to petitioners as partial payment of miscellaneous payments appearing in the compromise agreement and in the executrix's
attorney's fees and recommending approval of petitioners' accounting which cover expenses incurred by petitioners for the estate; (d) co-executor I.
motion.chanroblesvirtuallawlibrary chanrobles virtual law library V. Binamira should be included as party respondent to comply with Section 5, Rule 65 of
the Revised Rules of Court; and (e) it is the duty of respondent Judge not to be very liberal followed by counsel in order to collect his fees is to request the administrator to make
to the attorney representing the executrix, who is at the same time the wife of said payment, and should the latter fail to pay, either to (a) file an action against him in his
counsel and is herself an heir to a sizable portion of the estate, for respondent Judge's duty personal capacity, and not as administrator, 1 or (b) file a petition in the testate or intestate
is to see to it that the estate is administered "frugally," "as economically as possible," and proceedings asking the court, after notice to all the heirs and interested parties, to direct
to avoid "that a considerable portion of the estate is absorbed in the process of such the payment of his fees as expenses of administration. 2 Whichever course is adopted, the
division," in order that there may be a worthy residue for the heirs. As special defenses, heirs and other persons interested in the estate will have the right to inquire into the
respondent Judge alleged that the seven instituted heirs are indispensable parties in this value, of the services of the lawyer and on the necessity of his employment. In the case at
case; that mandamus cannot control the actuations of the trial court because they bar, petitioner filed his petition directly with the probate court.chanroblesvirtuallawlibrary
involved matters of discretion; and that no abuse of discretion can be imputed to chanrobles virtual law library
respondent Judge for trying his best to administer the estate There is no question that the probate court acts as a trustee of the estate, and as such
frugally.chanroblesvirtuallawlibrary chanrobles virtual law library trustee it should jealously guard the estate under administration and see to it that it is
On the arguments that he had opposed in the lower court petitioners' motion for payment wisely and economically administered and not dissipated. 3 This rule, however, does not
of partial attorney's fees in the amount of P30,000.00, and that since petitioners Samuel C. authorize the court, in the discharge of its function as trustee of the estate, to act in a
Occeña and Jesus V. Occeña are the husband and father-in-law, respectively, of executrix whimsical and capricious manner or to fix the amount of fees which a lawyer is entitled to
Necitas Ogan Occeña, the latter cannot be expected to oppose petitioners' claims for without according to the latter opportunity to prove the legitimate value of his services.
attorney's fees, thus leaving the co-executor as the lone party to represent and defend the Opportunity of a party to be heard is admittedly the essence of procedural due
interests of the estate, Atty. I. V. Binamira, who claims to be co-executor of the Ogan process.chanroblesvirtuallawlibrary chanrobles virtual law library
estate, filed with this Court on July, 1967, a Motion for Leave to Intervene, which was What petitioners filed with the lower court was a motion for partial payment of attorney's
granted in a resolution of August 9, 1967. Petitioners filed a Motion for Reconsideration of fees in the amount of P30,000.00 as lawyers for the executrix for the period February,
Resolution of August 9, 1967 and an Opposition to "Motion for Leave to Intervene," 1963, up to the date of filing of the motion on or about November 18, 1965. Five of the
contending that Atty. Binamira ceased to be a co-executor upon his resignation effective seven heirs had manifested conformity to petitioners' motion, while the remaining two
October 29, 1965. On August 15, 1967, Atty. Binamira filed Intervenor's Opposition to merely requested deferment of the resolution of the motion "until the total amount for
Petition (answer in intervention) traversing the material averments of the Executrix's fees and attorney's fees of her counsel is agreed upon by all the heirs." The
petition.chanroblesvirtuallawlibrary chanrobles virtual law library court, however, in spite of such conformity, and without affording petitioners the
On August 25, 1967, intervenor filed a Reply to Executrix's Opposition and Opposition to opportunity to establish how much attorney's fees they are entitled to for their entire legal
Exicutrix's Motion for Reconsideration. On September 18, 1967, intervenor filed services to the executrix, issued an order fixing at P20,000.00 the entire attorney's fees of
Intervenor's Comments on Petitioners' Motion for Reconsideration of the Resolution dated petitioners.chanroblesvirtuallawlibrary chanrobles virtual law library
August 9, 1961. On September 21, 1967, petitioners filed against intervenor a Petition for In his Order of January 12, 1967, respondent Judge explained:
Contempt asking this Court to hold intervenor in contempt of court. We required intervenor The records of this case are before the Court and the work rendered by Atty. Samuel
to comment thereon. On October 9, 1967, petitioners filed a Supplemental Petition for Occeña, within each given period, is easily visible from them; his work as revealed by
Contempt. Invervenor filed on October 20, 1967, Intervenor's Comments and Counter those records is the factual basis for this Court's orders as to attorney's
Petition, asking this Court to dismiss petitioners' motion for indirect contempt and instead fees.chanroblesvirtuallawlibrary chanrobles virtual law library
to hold petitioners guilty of indirect contempt for gross breach of legal ethics. We deferred Whatever attorney's fees may have been approved by the Court on October 28, 1965 were
action on the contempt motion until the case is considered on the merits. On January 15, as a result of compromise and were with the written consent of all the heirs and of all the
1968. Intervenor I. V. Binamira filed an Answer to Supplemental Petition. This was followed signatories of the compromise agreement of October 27, 1965. That is not so with respect
on February 12, 1968, by another Petition for Contempt, this time against one Generoso L. to Atty. Occeña's thirty-thousand peso claim for fees; and so, this Court, after a view of the
Pacquiao for allegedly executing a perjured affidavit dated December 20, 1967, to aid record, had to fix it at P20,000.00. The record can reflect what an attorney of record has
intervenor I. V. Binamira to escape liability for his deliberate falsehoods, which affidavit done.
intervenor attached to his Answer to Supplemental Petition. On the same date, February In fixing petitioners' attorney's fees solely on the basis of the records of the case, without
12, 1968, petitioners filed against intervenor a Second Supplemental Petition for allowing petitioners to adduce evidence to prove what is the proper amount of attorney's
Contempt. On February 19, 1968, petitioners filed Petitioners' Manifestation Re fees to which they are entitled for their entire legal services to the estate, respondent
Documentary Evidence Supporting Charges.chanroblesvirtuallawlibrary chanrobles virtual Judge committed a grave abuse of discretion correctable by certiorari. Evidently, such fees
law library could not be adequately fixed on the basis of the record alone considering that there are
We shall now consider the merits of the basic petition and the petitions for other factors necessary in assessing the fee of a lawyer, such as: (1) the amount and
contempt.chanroblesvirtuallawlibrary chanrobles virtual law library character of the service rendered; (2) the labor, time and trouble involved; (3) the nature
I chanrobles virtual law library and importance of the litigation or business in which the services were rendered; (4) the
The rule is that when a lawyer has rendered legal services to the executor or administrator responsibility imposed; (5) the amount of money or the value of the property affected by
to assist him in the execution of his trust, his attorney's fees may be allowed as expenses the controversy or involved in the employment; (6) the skill and experience called for in
of administration. The estate is, however, not directly liable for his fees, the liability for the performance of the services; (7) the professional character and social standing of the
payment resting primarily on the executor or administrator. If the administrator had paid attorney; and (8) the results secured, it being a recognized rule that an attorney may
the fees, he would be entitled to reimbursement from the estate. The procedure to be
properly charge a much larger fee when it is contingent than when it is not. 4 chanrobles there was a distribution of the 1965 income of the estate.chanroblesvirtuallawlibrary
virtual law library chanrobles virtual law library
It should be noted that some of the reasons submitted by petitioners in support of their 5. To discredit petitioner and the executrix, intervenor alleged in his Intervenor's
fees do not appear in the records of the case. For instance, they claim that in connection Opposition to Petition that petitioners caused to be filed with the court the executrix's
with their legal services to the executrix and to the estate, petitioner Samuel C. Occeña verified inventory which failed to include as assets of the estate certain loans granted to
had been travelling from Davao to Tagbilaran from 1965 to March, 1967, and from Davao petitioner Samuel C. Occeña in the sum of P4,000.00 and to the executrix various sums
to Cebu and Manila from 1963 to March, 1967, and that in fact he and his family had to totalling P6,000.00. The letters written by the late W. C. Ogan to his daughter, the
stay for almost a year in Dumaguete City. These claims apparently bear strongly on the executrix (Annexes F, G. and H-Contempt), show that the said sums totalling P10,000.00
labor, time and trouble involved in petitioners' legal undertaking, and, consequently, were in reality partly given to her as a gift and partly for the payment of certain furniture
should have been subject to a formal judicial inquiry. Considering, furthermore, that two of and equipment.chanroblesvirtuallawlibrary chanrobles virtual law library
the heirs have not given their conformity to petitioners' motion, the need for a hearing 6. Intervenor, in Order to further discredit petitioners and the executrix, stated in his Reply
becomes doubly necessary. This is also the reason why at this stage it would be premature to Executrix's and Opposition to Executrix's Motion for Reconsideration that the executrix
to grant petitioners' prayer for the release to them of the amount of P30,000.00 as partial and petitioners refused to pay and deliver to him all that he was entitled to under the
payment of their fees.chanroblesvirtuallawlibrary chanrobles virtual law library compromise agreement. The receipt dated October 29, 1965, signed by intervenor himself
II chanrobles virtual law library (Annex I-Contempt), shows that he acknowledged receipt from petitioner Samuel C.
As stated above, petitioners have filed petitions for indirect contempt of court against Occeña, lawyer for the executrix, the sum of P141,000.00 "in full payment of all claims and
intervenor I. V. Binamira charging the latter of having made false averments in this fees against the Estate, pursuant to the Agreement dated October 27, 1965." chanrobles
Court.chanroblesvirtuallawlibrary chanrobles virtual law library virtual law library
We have carefully considered these charges and the answers of intervenor, and, on the 7. In his Reply to Executrix's Opposition and Opposition to Executrix's Motion for
basis of the evidence, We conclude that intervenor I. V. Binamira has deliberately made Reconsideration, intervenor alleged that he signed Atty. Occeña's prepared receipt without
false allegations before this Court which tend to impede or obstruct the administration of receiving payment, trusting that Atty. Occeña would pay the amount in full, but later Atty.
justice, to wit: chanrobles virtual law library Occeña withheld Chartered Bank Check No. 55384 for P8,000.00 drawn in favor of
1. To bolster his claim that the executrix, without approval of the court, loaned intervenor and P15,000.00 in cash. A receipt signed by intervenor I. V. Binamira (Annex K-
P100,000.00 to the Bohol Land Transportation Company, Inc., intervenor submitted as Contempt) shows that he acknowledged receipt of the check in question in the amount of
Annex 5 of his Answer to Supplemental Petition a so-called "Real Estate Mortgage" which P8,000-00 "intended for Mrs. Lila Ogan Castillo ... ." Anent the sum of P15,000.00 in cash,
he made to appear was signed by Atty. Vicente de la Serna and the executrix. The Annex J-Contempt (Reply to the Opposition for Authority to Annotate Interest, etc. filed by
certification of the Deputy Clerk of Court (Annex A-Contempt) shows that what intervenor intervenor with the probate court) shows that intervenor, as movant, himself had alleged
claims to be a duly executed mortgage is in reality only a proposed mortgage not even that "no check was issued to movant, but withdrawn amount of P15,000.00 was included in
signed by the parties.chanroblesvirtuallawlibrary chanrobles virtual law library purchasing Manager's check No. 55398 for the Clerk of Court (deposit) for P75,000.00," for
2. Intervenor, in his Intervenor's Opposition to Petition, also stated that in December, 1965, the said amount was voluntarily extended by intervenor as a favor and gesture of goodwill
the executrix, without the court's approval or of the co-executor's consent, but with to form part of the total cash bond of P75,000.00 deposited with the Clerk of Court, as
petitioners' consent, loaned P100,000.00 to the Bohol Land Transportation Company, Inc. shown by a receipt signed by Atty. Samuel C. Occeña (Annex K-11-Contempt) which forms
out of the estate's funds. The record shows that only P50,000.00 was loaned to the part of the record in the court below.chanroblesvirtuallawlibrary chanrobles virtual law
company to protect the investment of the estate therein, and that the same was granted library
pursuant to a joint motion signed among others, by intervenor, and approved by the 8. In his intervenor's Comments and Counter-Petition, intervenor denied the truth of
court.chanroblesvirtuallawlibrary chanrobles virtual law library petitioners' claim that intervenor had voluntarily and willingly extended the sum of
3. To discredit petitioner Samuel C. Occeña and his wife, the executrix, intervenor stated in P15,000.00 as a favor and gesture of goodwill to form part of the P75,000.00-deposit. In
his Intervenor's Opposition to Petition that less than a month after the loan of P100,000.00 the Opposition to Motion of Executrix for Reconsideration of Order of February 19, 1966,
had been granted to the transportation company, petitioner Samuel C. Occeña was elected dated April 16, 1966 (Annex K-2-Contempt), intervenor had, however, admitted that "out of
president by directors of his own choosing in the Bohol Land Transportation Company, Inc., the goodness of his heart ... in the nature of help," he had "willingly extended as a favor
insinuating that in effect the executrix loaned to her husband the said sum of money. The and gesture of goodwill" the said sum of P15,000.00.chanroblesvirtuallawlibrary
certification of the corporate secretary of the Bohol Land Transportation Company, Inc. chanrobles virtual law library
(Annex D-Contempt) states that petitioner Samuel C. Occeña was not the president of the 9. To impugn the claim of petitioner Samuel C. Occeña that he stayed in Dumaguete City
company at the time, nor did he act as president or treasurer thereof, and that the for almost one year to attend to the affairs of the estate, intervenor, in his intervenor's
president was Atty. Vicente de la Serna. This last fact is also shown in intervenor's own Opposition to Petition, alleged that said petitioner's stay in Dumaguete City was not to
Annex 5 of his Answer to Supplemental Petition.chanroblesvirtuallawlibrary chanrobles attend to the affairs of the estate, but to enable him to teach in Silliman University. The
virtual law library certification of the Director of the personnel office of Silliman University, dated December
4. In intervenor's Opposition to this petition for certiorari, he stated that contrary to the 4, 1967 (Annex V-Contempt) is, however, to the effect that their "records do not show that
executrix's statement in the 1965 income tax return of the estate that an estate "income Atty. Samuel C. Occeña was teaching at Silliman University or employed in any other
of P90,770.05 was distributed among the heirs in 1965, there was in fact no such capacity in 1963, or at any time before or after 1963." chanrobles virtual law library
distribution of income. The executrix's project of partition (Annex E-Contempt) shows that
The foregoing are only some of the twenty-one instances cited by petitioners which clearly
show that intervenor had deliberately made false allegations in his
pleadings.chanroblesvirtuallawlibrary chanrobles virtual law library
We find no rule of law or of ethics which would justify the conduct of a lawyer in any case,
whether civil or criminal, in endeavoring by dishonest means to mislead the court, even if
to do so might work to the advantage of his client. The conduct of the lawyer before the
court and with other lawyers should be characterized by candor and fairness. It is neither
candid nor fair for a lawyer to knowingly make false allegations in a judicial pleading or to
misquote the contents of a document, the testimony of a witness, the argument of
opposing counsel or the contents of a decision. Before his admission to the practice of law,
he took the solemn oath that he will do no falsehood nor consent to the doing of any in
court, nor wittingly or willingly promote or sue any false, groundless or unlawful suit, and
conduct himself as a lawyer with all good fidelity to courts as well as to his clients. We find
that Atty. Binamira, in having deliberately made these false allegations in his pleadings,
has been recreant to his oath.chanroblesvirtuallawlibrary chanrobles virtual law library
The charges contained in the counter-petition for indirect contempt of intervenor I. V.
Binamira against petitioners have not been substantiated by evidence, and they must,
therefore, be dismissed.chanroblesvirtuallawlibrary chanrobles virtual law library
We note that no further action was taken on the petition for contempt filed by petitioners
against Generoso L. Pacquiao, who executed the affidavit attached to intervenor's Answer
to Supplemental Petition, the contents of which petitioners claim to be deliberate
falsehoods. The said respondent Pacquiao not having been afforded an opportunity to
defend himself against the contempt charge, the charge must be
dismissed.chanroblesvirtuallawlibrary chanrobles virtual law library
WHEREFORE, (1) the petition for certiorari is granted, and the court a quo is directed to
hold a hearing to determine how much the total attorney's fees petitioners are entitled to,
and (2) Atty. Isabelo V. Binamira, who appeared as intervenor in this case, is hereby
declared guilty of contempt and sentenced to pay to this Court within ten (10) days from
notice hereof a fine in the sum of Five Hundred Pesos (P500.00). Costs against intervenor.
Fernando, Barredo, Fernandez and Aquino, JJ., concur.