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So Pek Giok, managing partner of Tek Hua Please give this urgent matter your
Trading, died in 1986. So Pek Giok’s preferential attention to avoid inconvenience
grandson, petitioner So Ping Bun, occupied on your part.
the warehouse for his own textile business,
Trendsetter Marketing. Very truly yours,
(Sgd) Manuel C. Tiong This judgment is without prejudice to the
rights of plaintiff Tek Hua Enterprising
MANUEL C. TIONG Corporation and defendant Dee C. Chuan &
Sons, Inc. to negotiate for the renewal of
President" 4 their lease contracts over the premises
located at Nos. 930, 930-Int., 924-B and
Petitioner refused to vacate. On March 4, 924-C Soler Street, Binondo, Manila, under
1992, petitioner requested formal contracts such terms and conditions as they agree
of lease with DCCSI in favor of Trendsetter upon, provided they are not contrary to law,
Marketing. So Ping Bun claimed that after the public policy, public order, and morals.
death of his grandfather, So Pek Giok, he
had been occupying the premises for his SO ORDERED." 5
textile business and religiously paid rent.
DCCSI acceded to petitioner’s request. The Petitioner’s motion for reconsideration of the
lease contracts in favor of Trendsetter were above decision was denied.
executed.
On appeal by So Ping Bun, the Court of
In the suit for injunction, private respondents Appeals upheld the trial court. On motion for
pressed for the nullification of the lease reconsideration, the appellate court modified
contracts between DCCSI and petitioner. the decision by reducing the award of
They also claimed damages. attorney’s fees from five hundred thousand
(P500,000.00) pesos to two hundred
After trial, the trial court thousand (P200,000.00)
ruled:jgc:chanrobles.com.ph
Petitioner is now before the Court raising the
"WHEREFORE, judgment is rendered:y following issues:
1. Annulling the four Contracts of Lease I. WHETHER THE APPELLATE COURT ERRED
(Exhibits A, A-1 to A-3, inclusive) all dated IN AFFIRMING THE TRIAL COURT’S
March 11, 1991, between defendant So Ping DECISION FINDING SO PING BUN GUILTY OF
Bun, doing business under the name and TORTUOUS INTERFERENCE OF CONTRACT?
style of ‘Trendsetter Marketing’, and
defendant Dee C. Chuan & Sons, Inc. over II. WHETHER THE APPELLATE COURT ERRED
the premises located at Nos. 924-B, 924-C, IN AWARDING ATTORNEY’S FEES OF
930 and 930, Int., respectively, Soler Street, P200,000.00 IN FAVOR OF PRIVATE
Binondo Manila; RESPONDENTS.
2. Making permanent the writ of preliminary The foregoing issues involve, essentially, the
injunction issued by this Court on June 21, correct interpretation of the applicable law on
1991; tortuous conduct, particularly unlawful
interference with contract. We have to begin,
3. Ordering defendant So Ping Bun to pay the obviously, with certain fundamental
aggrieved party, plaintiff Tek Hua principles on torts and damages.
Enterprising Corporation, the sum of
P500,000.00, for attorney’s fees; Damage is the loss, hurt, or harm which
results from injury, and damages are the
4. Dismissing the complaint, insofar as recompense or compensation awarded for
plaintiff Manuel C. Tiong is concerned, and the damage suffered. 6 One becomes liable
the respective counterclaims of the in an action for damages for a
defendant; nontrespassory invasion of another’s interest
in the private use and enjoyment of asset if
5. Ordering defendant So Ping Bun to pay the (a) the other has property rights and
costs of this lawsuit; privileges with respect to the use or
enjoyment interfered with, (b) the invasion is
substantial, (c) the defendant’s conduct is a
legal cause of the invasion, and (d) the
invasion is either intentional and As early as Gilchrist v. Cuddy, 14 we held
unreasonable or unintentional and actionable that where there was no malice in the
under general negligence rules. 7 interference of a contract, and the impulse
behind one’s conduct lies in a proper
The elements of tort interference are: (1) business interest rather than in wrongful
existence of a valid contract; (2) knowledge motives, a party cannot be a malicious
on the part of the third person of the interferer. Where the alleged interferer is
existence of contract; and (3) interference of financially interested, and such interest
the third person is without legal justification motivates his conduct, it cannot be said that
or excuse. 8 he is an officious or malicious intermeddler.
15
A duty which the law of torts is concerned
with is respect for the property of others, and In the instant case, it is clear that petitioner
a cause of action ex delicto may be So Ping Bun prevailed upon DCCSI to lease
predicated upon an unlawful interference by the warehouse to his enterprise at the
one person of the enjoyment by the other of expense of respondent corporation. Though
his private property. 9 This may pertain to a petitioner took interest in the property of
situation where a third person induces a respondent corporation and benefited from it,
party to renege on or violate his undertaking nothing on record imputes deliberate
under a contract. In the case before us, wrongful motives or malice on him.
petitioner’s Trendsetter Marketing asked
DCCSI to execute lease contracts in its favor, Section 1314 of the Civil Code categorically
and as a result petitioner deprived provides also that, "Any third person who
respondent corporation of the latter’s induces another to violate his contract shall
property right. Clearly, and as correctly be liable for damages to the other
viewed by the appellate court, the three contracting party." Petitioner argues that
elements of tort interference above- damage is an essential element of tort
mentioned are present in the instant interference, and since the trial court and the
case.cralawnad appellate court ruled that private
respondents were not entitled to actual,
Authorities debate on whether interference moral or exemplary damages, it follows that
may be justified where the defendant acts for he ought to be absolved of any liability,
the sole purpose of furthering his own including attorney’s fees.chanrobles.com :
financial or economic interest. 10 One view is virtual law library
that, as a general rule, justification for
interfering with the business relations of It is true that the lower courts did not award
another exists where the actor’s motive is to damages, but this was only because the
benefit himself. Such justification does not extent of damages was not quantifiable. We
exist where his sole motive is to cause harm had a similar situation in Gilchrist, where it
to the other. Added to this, some authorities was difficult or impossible to determine the
believe that it is not necessary that the extent of damage and there was nothing on
interferer’s interest outweigh that of the record to serve as basis thereof. In that case
party whose rights are invaded, and that an we refrained from awarding damages. We
individual acts under an economic interest believe the same conclusion applies in this
that is substantial, not merely de minimis, case.
such that wrongful and malicious motives are
negatived, for he acts in self-protection. 11 While we do not encourage tort interferers
Moreover, justification for protecting one’s seeking their economic interest to intrude
financial position should not be made to into existing contracts at the expense of
depend on a comparison of his economic others, however, we find that the conduct
interest in the subject matter with that of herein complained of did not transcend the
others. 12 It is sufficient if the impetus of his limits forbidding an obligatory award for
conduct lies in a proper business interest damages in the absence of any malice. The
rather than in wrongful motives. 13 business desire is there to make some gain
to the detriment of the contracting parties. award for attorney’s fees in favor of private
Lack of malice, however, precludes damages. respondent corporation.
But it does not relieve petitioner of the legal
liability for entering into contracts and WHEREFORE, the petition is hereby DENIED.
causing breach of existing ones. The The assailed Decision and Resolution of the
respondent appellate court correctly Court of Appeals in CA-G.R. CV No. 38784
confirmed the permanent injunction and are hereby AFFIRMED, with MODIFICATION
nullification of the lease contracts between that the award of attorney’s fees is reduced
DCCSI and Trendsetter Marketing, without from two hundred thousand (P200,000.00) to
awarding damages. The injunction saved the one hundred thousand (P100,000.00) pesos.
respondents from further damage or injury No pronouncement as to costs.
caused by petitioner’s interference. SO ORDERED.
In the present case, the findings of facts of The facts of the case reveal that the second
the R TC and the CA are apparently in condition ·has been rendered legally
contrast, hence, this Court deems it proper impossible to fulfill or considered manifestly
to rule on the issues raised in the petition. difficult to perform. The trial court failed to
take into consideration the manifestation in
After careful consideration, this Court finds Villarama's evidence particularly Exhibit "4"
the petition unmeritorious. which states that:
The payment of the success fee, as On 1 December 1987, [Crisantomas Guno]
contained in the Contract for Legal Services, and his wife filed the complaint for
is dependent on the fulfillment of two nullification of defendant Bank's title due to
defect in foreclosure proceedings, entitled De Jesus from the obligation of fulfilling the
'Spouses Crisantomas and Carmelita Guno same before he could obtain the success
vs. Prudential Bank and Trust Company 21
docketed as Civil Case No. Q-52422 in the fee.
Regional Trial Court Branch 95 of Quezon
City. On 18 October 1991, the RTC Upon consideration of the arguments of both
rendered a Decision annulling defendant parties, this Court finds that the above-
Bank's Title and ordering the reinstatement reasoning of the CA is erroneous. There is
of the spouses Guno's title. The RTC no legal impossibility in the fulfillment of the
Decision was affirmed on appeal by the second condition. There is still a remedy
Supreme Court and became final and upon which petitioner may be able to
executory on 11 March 1997. This the transfer the title of the subject property
Decision which [Crisantomas Guno] seeks under his name. In fact, respondent
to enforce in this action. admitted in his Comment that there was no
legal impossibility and that the only
It must also be noted that when the terms of hindrance was the refusal of petitioner to
the agreement was drafted in 1996, the pay Prudential Bank the value of the 30%
prevailing circumstance then was that the equity of the property in the amount of
30% portion of the property was titled in the ₱1,325,000.00. Although petitioner insists
name of Prudential Bank. Later, however, that it has already taken steps in offering
spouses Guno was able to obtain a final and Prudential Bank an amount to settle the
favourable judgment in 1997 ordering the issue, this still negates the finding of the CA
cancellation of Prudential Bank's title. that it is legally impossible for petitioner to
Spouses Guno has yet to implement said transfer the title of the property under his
Decision. Thus, the previous understanding name.
that after Atty. De Jesus shall have ensured
the ownership of Villarama over the 70% Be that as it may, the fact still remains that
portion of the property and the latter shall petitioner was already awarded 70% of the
buy the remaining 30% of said property from subject property by virtue of the RTC's
the bank so that Atty. De Jesus can now decision in Civil Case No. 95-973 through
have it fully titled to Villarama' s name was the services of Atty. De Jesus. Thus, this
also rendered legally impossible because of Court finds that Atty. De Jesus, as well as
the final Decision annulling Prudential every attorney, is entitled to have and
Bank's title to the subject property. receive a just and reasonable compensation
for services performed at the special
Accordingly, under the foregoing instance and request of his client. Once the
subsequent circumstances, the happening attorney has performed the task assigned to
of the second condition was jeopardized and him in a valid agreement, his compensation
placed beyond performance because of is determined on the basis of what he and
these intervening legal developments. Had 22
the trial court been more circumspect and the client agreed. In the absence of the
receptive of the present factual written agreement, the lawyer's
circumstances it would have considered that compensation shall be based on quantum
our laws on contract admit certain meruit, which means "as much as he
exceptions in order to discharge the obligor 23
deserved." The determination of
from fulfilling the condition when said
condition is rendered beyond performance attorney's fees on the basis of quantum
or it has become so difficult to perform. meruit is also authorized "when the
counsel, for justifiable cause, was not
xxxx able to finish the case to its
24
Here, there is no dispute that the legal conclusion." Moreoyer, quantum meruit
developments that transpired in the string of becomes the basis of recovery of
cases of Villarama relative to the subject compensation by the attorney where the
property has rendered the second condition circumstances of the engagement indicate
impossible to perform which factor cannot that it will be contrary to the parties'
be attributed to Atty. De Jesus. Thus, the expectation to deprive the attorney of all
condition should be annulled excuse atty.
25 i) The character of the employment, whether
compensation. In this case, since occasional or established; and
respondent was not able to fulfill one of the
conditions provident in the Contract for j) The professional standing of the lawyer.
Legal Services, his attorney's fees shall be
based on quantum meruit. Having established that petitioner is entitled
to attorney's fees and that he filed his claim
Quantum meruit- literally meaning as much well within the prescribed period, the proper
as he deserves - is used as basis for remedy is to remand the case to the R TC
determining an attorney's professional fees for the determination of the correct amount
in the absence of an express agreement. of attorney's fees. Such a procedural route,
The recovery of attorney's fees on the basis however, would only contribute to the delay
of quantum meruit is a device that prevents of the final disposition of the controversy as
an unscrupulous client from running away any ruling by the trial court on the matter
with the fruits of the legal services of would still be open for questioning before
counsel without paying for it and also avoids the CA and this Court. In the interest of
unjust enrichment on the part of the attorney justice, this Court deems it prudent to
himself. An attorney must show that he is suspend the rules and simply resolve the
entitled to reasonable compensation for the 27
effort in pursuing the client's cause, taking matter at this level.
into account certain factors in fixing the
26 Based on the considerations set forth in
amount of legal fees. Rule 20.01 of the Code of Professional
Responsibility, this Court rules that the CA
Rule 20.01 of the Code of Professional was correct in its determination that Atty. De
Responsibility lists the guidelines for Jesus is entitled to the extent of 50% of the
determining the proper amount of attorney's Php1,000,000.00 success fee stipulated in
fees, to wit: the contract. As ruled by the CA:
Rule 20.1 - A lawyer shall be guided by the At any rate, Atty. De Jesus cannot claim the
following factors in determining his fees: entire Phpl,000,000.00 success fee because
the fact remains that Villarama has yet to
a) The time spent and the extent of the place the entire subject property to his
services rendered or required; name. Thus, applying the quantum meruit
principle in this case, Atty. De Jesus is
b) The novelty and difficulty of the questions deemed to be entitled only to half of the
involved; success fee for the effort and legal services
he had provided to Villarama. xxx
c) The importance of the subject matter;
In fine, Villarama, under the Contract of
d) The skill demanded; Legal Services, is obliged to pay Atty. De
Jesus his success fee to a fair and
e) The probability of losing other reasonable extent of 50% or Php500,000.00
employment as a result of acceptance of the considering the latter's substantial
proffered case; performance of his part of the contract. The
previous payment made by Villarama in the
f) The customary charges for similar
amount of Php100,000.00 shall be
services and the schedule of fees of the IBP
considered as an advanced payment
chapter to which he belongs;
deductible from the Php500,000.00 of which
g) The amount involved in the controversy 28
Atty. De Jesus is entitled.
and the benefits resulting to the client from
the service; It must always be remembered that the fact
that the practice of law is not a business and
h) The contingency or certainty of
the attorney plays a vital role in the
compensation;
administration of justice underscores the
need to secure him his honorarium lawfully
earned as a means to preserve the decorum
and respectability of the legal profession. A The Antecedents:
lawyer is as much entitled to judicial
protection against injustice, imposition or On April 7, 1988, Lorna Tampan-
fraud on the part of his client as the client Naldoza (Lorna) purchased a residential
against abuse on the part of his counsel. house and lot from Socorro Cabilao
The duty of the court is not alone to see that (Socorro) located at 599 Narciso St.,
a lawyer acts in a proper and lawful manner; Surigao City (subject property), covered by
it is also its duty to see that a lawyer is paid TCT No. T-59, through a Deed of Absolute
his just fees. With his capital consisting of Sale of a Residential Land together with a
his brains and with his skill acquired at 5
tremendous cost not only in money but in House (Deed of Sale), in the amount of
expenditure of time and energy, he is P10,000.00. Since Lorna was in the United
entitled to the protection of any judicial States, her mother, Antonieta, purchased
tribunal against any attempt on the part of 6
the property on her behalf. In 1995, Lorna
his client to escape payment of his just
compensation. It would be ironic if after decided to have TCT No. T-59 registered in
putting forth the best in him to secure justice her name but she discovered that the
for his client he himself would not get his owner's duplicate got lost while it was kept
29 by Judith Tampan-Montinola (Judith) in the
due. house. Thereafter, Lorna, through Judith,
filed a petition for the issuance of a new
WHEREFORE:, the Petition for Review on owner's duplicate. However, spouses
Certiorari under Rule 45 of the Rules of Lapulapu and Lelita (Lelita) Buyser
Court, dated April 20, 2015, of petitioner (collectively, spouses Buyser) opposed her
Ramon R. Villarama is DENIED for lack of petition on the ground that they were in
merit. Consequently, the Decision dated possession of the said title after buying the
March 31, 2014 and the Resolution dated same from Socorro. Thus, Lorna's petition
February 18, 2015 of the Court of Appeals 7
are AFFIRMED. was dismissed.