PDF -International Arbitration Yearbook - V - Cadavedo v. Lacaya.torts
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Cadavedo v. Lacaya.torts

International Arbitration Yearbook - V

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Description

January 15,

THE CONJUGAL PARTNERSHIP OF THE SPOUSES VICENTE CADAVEDO AND BENITA ARCOY-CADAVEDO (both deceased),

PASTORA,

Heirs of FRUCTUOSA,

Heirs of RAQUEL,

EVANGELINE,

VICENTE,

Petitioners,

VICTORINO (VIC) T

LACAYA,

Respondents

FACTS: The Spouses Cadavedo acquired a homestead grant over a 230,765-square meter parcel of land known as Lot 5415 (subject lot) located in Gumay,

Piñan,

Zamboanga del Norte

They were issued Homestead Patent No

V-15414 on March 13,

P-376 on July 2,

On April30,

the spouses Cadavedo sold the subject lot to the spouses Vicente Ames and Martha Fernandez (the spouses Ames) Transfer Certificate of Title (TCT) No

T-4792 was subsequently issued in the name of the spouses Ames

The present controversy arose when the spouses Cadavedo filed an action before the RTC against the spouses Ames for sum of money and/or voiding of contract of sale of homestead after the latter failed to pay the balance of the purchase price

The spouses Cadavedo initially engaged the services of Atty

Rosendo Bandal who,

On February 24,

Lacaya amended the complaint to assert the nullity of the sale and the issuance of TCT No

T-4792 in the names of the spouses Ames as gross violation of the public land law

The amended complaint stated that the spouses Cadavedo hired Atty

Lacaya on a contingency fee basis

The contingency fee stipulation specifically reads: 10

That due to the above circumstances,

the plaintiffs were forced to hire a lawyer on contingent basis and if they become the prevailing parties in the case at bar,

they will pay the sum of P2,000

Eventually Atty

Lacaya represented the Cadavedo spouses I two other cases in connection with the subject lot

On appeal to the CA the appellate court granted attorney’s fee consisting of onehalf or 10

Lacaya,

instead of confirming the agreed contingent attorney’s fees of ₱2,000

ISSUE: Whether or not the award by the CA of attorey's fees is valid

HELD: No

The agreement on attorney’s fee consisting of one-half of the subject lot is void

the petitioners are entitled to recover possession

The written agreement providing for a contingent fee of P2,000

Lacaya’s acquisition of the one-half portion contravenes Article 1491 (5) of the Civil Code

Article 1491 (5) of the Civil Code forbids lawyers from acquiring,

the property that has been the subject of litigation in which they have taken part by virtue of their profession

we find that the subject lot was still in litigation when Atty

Lacaya acquired the disputed one-half portion

We note in this regard the following established facts:(1)on September 21,

Lacaya filed a motion for the issuance of a writ of execution in Civil Case No

the spouses Ames filed Civil Case No

the RTC granted the motion filed for the issuance of a writ of execution in Civil Case No

the subject lot was surveyed and subdivided into two equal portions,

Lacaya took possession of one of the subdivided portions

Vicente and Atty

Lacaya executed the compromise agreement