SpecPro Digest Midterm

contract]
- cover a much wider range

TRUSTEESHIP OF THE MINORS PEREZ Y TUASON, PNB,

ARANETA VS PEREZ 1962 [trustee 3]
1] W/N THE TRUSTEE ARANETA MAY BE ALLOWED TO PAY A SUM OF
MONEY TO THE LAW FIRM [ARANETA & ARANETA] FOR SERVICES
RENDERED TO HIM - YES
2] W/N THE PURCHASE OF CERTAIN SHARES OF STOCK NUDE BY
THE APPELLEE FOR THE BENEFIT OF THE TRUSTEESHIP MERITS
JUDICIAL APPROVAL - YES
Facts:
law firm through its assistant, Atty Papa rendered services for
the appellees
lower court authorized the payment of P5, 500 for the services
rendered
appellant Antonio assailed on the ground that Sec 7, R86
provides,
when an executor or administrator is an attorney he shall
not charge against the estate any professional fees for legal
services rendered by him
HELD 1
Sec 7, R86 refers only to executors and administrators of the
estate of the deceased persons
- not apply to trustees
trustee [like an admin or exec[r]] holds an office of trust, as in
this case, trustee acts as such under judicial authority
[t] generally, the above rule should apply
[but]
Duties of exec or admin
- fixed or limited by law

Duties of trustee
- [express trust] governed by
the intention of the trustor or
parties
[if
established
by

considering the circumstances, the trustor would have sanctioned

[authorize] the payment of attys fees involved
- more costly for the estate to engage the services of a law
firm other than Aranetas
- the will creating the trust and designating appellees as
trustee explicitly grants him the right to collect for his services
such reasonable fees
settled: a trustee may be indemnified out of the trust estate for
his expenses in rendering and proving his accounts and for costs
and counsel fees in connection therewith
compensation was not also excessive
HELD 2
the purchase of 118 common shares of stock of the Phil American
Drug at P100 each for the trust estate has been approved by the
court
purchase by the trustee may be considered as an indication that
he had displayed in the mgt of the trust estate the same interest he
had in the protection of his own property
evident in:
1] trustee has 199 out of 30, 000 common shares of
stock
2] trustees children has 270 out of 5, 000
preferred shares of stock
established:
- book value of each of said 118 common shares of stock
P202.80
- 1954: PAD paid a cash dividend of 6% aside from
declaring a 33-1/3% stock dividend for its common shares
- 6 % and 4% cash dividends paid in 1955 and 1957
- statement of accounts of the company from 1954-1957
PAD is financially stable and sound