Law Firm of Tungol & Tibayan v · G.R. 169298

Petitioner: Law Firm of Tungol & Tibayan
Respondent: Court of Appeals
Citation: G.R. No. 169298
Court: Supreme Court
Division: Second Division
Ponente: Quisumbing, J.
Decided: July 9, 2008

Summary

The Supreme Court resolved a dispute over contingent attorney's fees between Law Firm of Tungol & Tibayan and their former clients, Spouses Ingco. The law firm sought additional fees of P4.5 million based on the alleged excess market value of three lots the spouses acquired through execution sale, beyond the P1.5 million already paid. The Court applied Article 1370 of the Civil Code on contract interpretation, holding that the clear and unambiguous attorney's fee agreement only covered enforcement of title delivery or refund of the P5.1 million purchase price. Since the three lots were acquired through the spouses' successful bid at execution sale rather than the law firm's recovery efforts, and the attorney-client relationship had already ended, no additional fees were due. The Court found the P1.5 million payment adequate, even exceeding the 25% contingent fee on the original lot value.

Statutes applied

Civil Code, Art. 1370

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By the Intellegal Editorial Board · July 9, 2008

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