Quasha Vs Juan

9/6/2019 SUPREME COURT REPORTS ANNOTATED VOLUME 118
VOL. 118, NOVEMBER 19, 1982 505

Quasha Asperilla Ancheta Valmonte Peña & Marcos vs. Juan
*
No. L-49140. November 19, 1982.
QUASHA ASPERILLA ANCHETA VALMONTE PEÑA &

MARCOS, petitioner, vs. THE HONORABLE CELESTINO P.
JUAN, FILIPINAS CARRIERS, INC., represented by its President,
FEDERICO TABORA, JR., APOLLO KOKIN TRADING CO.,
LTD., et al., respondents.
Action; Jurisdiction; An action based on an oral contract of

transportation of goods by water is an action in admiralty under original
and exclusive CFI jurisdiction.—There is no pretense that respondent court
has jurisdiction over the cause of action. It is much too obvious to merit a
fuller discussion. Suffice it to say that an action based upon an oral contract
of transportation of goods by water is an action in admiralty which comes
under the original and ex-
________________
* SECOND DIVISION.
506
506 SUPREME COURT REPORTS ANNOTATED
elusive jurisdiction of the Court of First Instance irrespective of the value of

the cargo.
Same; Same; An action brought for enforcement of a maritime lien is

an action quasi in rem by virtue of which the fact that one of the named
defendants is a foreigner residing in a foreign land is not essential to the
court’s acquisition of jurisdiction over the res in question.—As to the person
of Baroom, it is to be conceded that at the initial stage of the proceeding in
the Court of First Instance of Manila prior to the issuance of the order of
www.central.com.ph/sfsreader/session/0000016d071f074080c59e3a003600fb002c009e/t/?o=False 1/20
April 28, 1977 directing the sale of the property and petitioner’s filing of
various pleadings, said court did not have jurisdiction over Baroom. Baroom
was a non-resident alien and he was beyond the reach of the court’s legal
processes. But since the action is brought principally for the enforcement of
maritime lien against the property of defendants who failed to pay the
charter hire fee, and therefore the same is in the nature and character of a
proceeding quasi in rem, jurisdiction over defendant Baroom is not
essential. An action quasi in rem has been defined as “an action between
parties where the direct object is to reach and dispose of property-owned by
them or of some interest therein.” As such the properties allegedly owned by
him are primarily made liable.
Same; Same; Same.—If however, the defendant is a non-resident and,

remaining beyond the range of the personal process of the court, refuses to
come in voluntarily, the court never acquires jurisdiction over the person at
all. Here the property itself is in fact the sole thing which is impleaded and
is the responsible object which is the subject of the exercise of judicial
power. It follows that the jurisdiction of the court in such case is based
exclusively on the power which, under the law, it possesses over the
property; and any discussion relative to the jurisdiction of the court over the
person of the defendant is entirely apart from the case.
Same; Issue of jurisdiction abandoned by foreigner’s filing an answer

to the complaint—At any rate, defendant Baroom, filed later, aside from a
motion to dismiss, an answer with counterclaim praying that plaintiff be
directed to deliver the cargoes of defendant Baroom to Jeddah and to pay
damages, etc. and a crossclaim against Sierra Madre, thereby abandoning
any question on jurisdiction over the person and submitting himself to the
jurisdiction of the court.
Same; Jurisdiction; Attachment; When a court acquires jurisdiction

over the res as in actions quasi in rem, a writ of attach-
507
VOL. 118, NOVEMBER 19, 1982 507
ment is no longer necessary in order that jurisdiction may be obtained.—As

regards jurisdiction over the res, We hold that respondent acquires
jurisdiction over it. Where a property is burdened by a lien, a writ of
attachment is no longer necessary in order that jurisdiction over the property
may be obtained by the court.
Same; Same; Same; Reason for the rule.—Thereason for the rule is
obvious. An attachment proceeding is for the purpose of creating a lien on
the property to serve as security for the payment of the creditors’ claim.
Hence, where a lien already exists, as in this case a maritime lien, the same
is already equivalent to an attachment. Moreover, since the property subject
of the action for the enforcement of the maritime liens was already in the
possession of private respondent, there is no need for seizure for the court to
obtain jurisdiction over the res.
Attorneys; Damages; Obligations; Petitioners should have pursued

their claim for attorney’s fees with respondent court after they had
withdrawn as attorneys of one of the defendants instead of going to another
court for the same claim.—The foregoing entails determination of facts. It
would be highly irregular if this Court would have to resolve those
questions, this Court not being a trier of facts. The several documents
mentioned by petitioner and attached to its pleadings before this Court were
never presented before the lower court. After Baroom had abandoned bis
defense which created the presumption that he had no defense, that he is not
the owner of the cargo, petitioner should have pursued the same argument
before respondent court in claiming the alleged professional fee.
Same; Same; Same; Same; Same.—Indeed, petitioner should have

maintained its action in respondent’s court. After all, a court which has in its
possession, control or equivalent dominion, property or funds involved in
litigation may exercise exclusive jurisdiction over such property or funds to
determine the rights therein, such as questions respecting the title,
possession or control, management and disposition thereof and another
court of concurrent or coordinate jurisdiction cannot interfere with such
possession or control The rights to be determined by said court necessarily
include the attorney’s fees due to the lawyers who represented the parties.
Jurisdiction; Courts; Once a court acquires jurisdiction over a case

and the res involved therein, its order to have said property sold pendente
lite does not constitute interference over the jurisdiction of
508
another court to which an attorney subsequently filed a claim for attorney’s

fees against a defendant in the case before the former.—Prescinding from
the foregoing, We find no abuse of discretion in issuing the questioned order
of August 25, 1978, and therefore the instant petition should be dismissed. It
could not be claimed that the act of respondent Judge in issuing the said
order amounts to interference with the writ of attachment dated February 28,
1978 issued by Judge Pineda, for by the time the said writ was issued,
respondent Judge had already control and disposition of the case. The order
of August 25, 1978 was but an implementation of the earlier order of April
28, 1977 directing the sale of the cargoes on the ground of extreme necessity
as the cargoes as found by respondent Judge upon ocular inspection were in
danger of deteriorating and losing their market value and the vessel was also
in danger of sinking. By then, respondent Judge had also issued the order
dated July 19, 1977 approving a Deed of Sale of subject cargoes.
Attorneys; An attorney errs in filing a suit for a charging lien which

applies only to fund or documents of a client which lawfully comes to an
attorney’s possession. The proper action is an intervention petition for
recovery of attorney’s fees.—It is curious to note that petitioner never
questioned said orders on appeal or by a special civil action. Petitioner’s
client in fact even abandoned its case. Hence, having no favorable judgment
that could be anticipated, the charging lien has no leg to stand on. Perhaps
because it was aware of its predicament that petitioner filed an independent
action for recovery of its professional fees and for reimbursement of
expenses which would have been proper, except that the ownership of the
property sought to be attached was questionable and the same was already
sold by respondent court. But just as We had said before, petitioner should
have filed its claim for professional fees in respondent’s court for said court
has the exclusive jurisdiction to determine the real owner of the cargoes. We
hasten to add, however, that the action should not be for a charging lien, but
a simple complaint in intervention for recovery of professional services and
reimbursement of expenses, thus avoiding multiplicity of suits.
Actions; Garnishment; Garnishment of proceeds of sale ordered by

trial court cannot be made without prior determination of ownership of the
cargo ordered sold. Petitioner law firm should not have allowed
considerable period to lapse before claiming right over the cargo.—
Petitioner prays for the garnishment of the proceeds, but to allow the same,
there must first be a determination of the ownership
509
VOL. 118, NOVEMBER 19, 1982 509
of the cargo. Again, We say We are not in a position to do so. Petitioner

failed to file motion for reconsideration of the order of August 25, 1978
approving the sale of the cargo, and it abandoned its own case before
respondent Judge. The result of its negligence in allowing considerable
period to lapse before claiming right over the cargo, and resorting to
injunctive relief must be borne by it. Petitioner is not entitled to any relief
and the instant petition must be dismissed. We shall also dismiss petitioner’s
charge of contempt against respondents since as We said before, before the
temporary restraining order could be served everything was already fait

accompli.
Attorneys; Contempt; The tactics of lawyers of slanting their

presentation of a client’s case is generally tolerated. Contempt not proper
remedy.—Likewise, We also dismiss the respondents’ charge against
petitioner for direct contempt for allegedly omitting material facts vital to
the full appreciation of this Court. In De Midgely vs. Ferandos, this Court
ruled that such tactic is generally tolerated because understandably lawyers
are apt to slant the presentation of their clients’ case so that they would have
favorable judgments. “Courts are not deceived by the exaggerations and
distortions in a counsel’s lopsided submission of his client’s case especially
where, as in this case, the alert opposing counsel calls the court’s attention
to that fact.”
PETITION for certiorari and prohibition with preliminary injunction

to review the order of the Court of First Instance of Manila.
The facts are stated in the opinion of the Court.

Quasha, Asperilla, Ancheta, Valmonte, Peña and Marcos Law
Offices for petitioner.
Antonio V. Raquiza & Assoc, for respondent Eugene A. Tan.
DE CASTRO, J.:
In this petition for certiorari and prohibition with preliminary

injunction, petitioner seeks the annulment of the order of respondent
Judge of the Court of First Instance of Manila in Civil Case No.
105048 dated August 25, 1978 which approved the sale of the
subject cargo and prays instead that the writ of preliminary
attachment over the same property
510

issued by Hon. Gregorio Pineda of the Court of First Instance of

Rizal in Civil Case No. 28710 be allowed to remain in force.
It appears that on October 22, 1976, respondent Filipinas
Carriers, hereinafter referred to as Filcar, filed a complaint for sum
of money, enforcement of lien and damages with the Court of First
Instance of Manila, and the same was assigned to Branch X, which
was presided by respondent Judge, against AB Charles Thorburn &
Co., through its receiver Sjoegren and Winstrand; Estero Shipping
and Trading; Bank of Melli of Iran, Jeddah Branch; Perstorp AB;
Skogshgarnas Industries; Ekman and Company AB; and Abdullah
Baroom. In the complaint which was docketed as Civil Case No.
105048, Filcar alleged that it is the disponent owner of a vessel, MV

San Vicente, which was duly registered with the Republic of the
Philippines; that on April 2, 1976, defendant Carles Thorburn & Co.
chartered said vessel by time charter for two or three months for a
voyage from Sweden to Jeddah, Saudi Arabia at three thousand two
hundred US dollars (US $3,200.00) a day, that Abdullah Baroom
was impleaded as defendant for being the agent of Charles Thorburn
& Co. at Jeddah and Sjoegren and Winstrand of Sweden for being
the receiver of Charles Thorburn & Co.; that the vessel left Sweden
with construction materials as cargoes belonging to the following
shippers and consignees, namely, defendants Bank of Melli of Iran,
Jeddah Branch; the National Commercial Bank, Jeddah Branch;
Perstorp AB of Perstorp, Sweden; Skogshgarnas Industries of
Sweden; Ekman and Company of Sweden; that after the second
month, Charles Thorburn failed to pay the daily hire; that the vessel
has been in Jeddah since May 19, 1976 and is now in international
waters; that in view of Thorburn’s failure to pay the charter hire, it
had struck a lien through the vessel’s captain; that the charter party
has expired but the vessel has not yet discharged the cargoes due to
inadequate port facilities and failure of the shippers, consignees and
charterer to pay the charter hire; that Filcar demanded from Charles
Thorburn the payment of the charter hire but Thorburn failed to pay
and instead declared bankruptcy and is now under receivership in
Sweden; that on demand. Baroom, the agent of Thorburn in Jeddah,
and the consignees and shippers refused to pay; that
511
VOL. 118, NOVEMBER 19, 1982 511

consequently, Filcar was forced to exercise its lien on the cargoes

consistent with Clause 18 of the Charter Party, notice of which was
sent to defendants. The plaintiff thus prayed, among others, that the
defendants pay the daily charter hire from the time they were in
arrears until payment is made and that the Court allow the sale of the
cargoes to satisfy its claims.
On November 25, 1976, Sierra Madre Wood Industries, Inc.,
hereinafter called Sierra Madre, the alleged owner, end-user and
operator of MV San Vicente filed a motion to intervene in the Court
of First Instance of Manila (Civil Case No. 105048) for the purpose
of enforcing its lien over the cargo, claiming that it had chartered the
vessel to Filcar for six months renewable every six months at agreed
charter hire fee (US $825,000.00 per year). Respondent Judge
allowed the intervention of Sierra Madre as plaintiff-intervenor.
On December 2, 1976, Filcar filed an extra-parte motion to sell
the goods subject of lien, alleging among others, that the MV San
Vicente had arrived in the Philippines, and was due for dry-docking
and needed urgent repairs; and that the goods subject of its lien were
in danger of deteriorating and losing their market value and if the
goods were not sold immediately, the plaintiff would have to pay a
staggering amount for warehousing so that the value of the goods
would not even be enough to pay for warehousing expenses.
Thereafter, respondent Judge conducted hearings in Civil Case
No. 105048 and an ocular inspection of the vessel. On April 18,
1977, respondent Judge, convinced that the vessel as well as the
cargoes were in a very bad condition, issued an order, the dispositive
portion of which reads:
“WHEREFORE, in view of all the above and due to the condition of the
vessel and/or its cargo, while we are not convinced as asserted that Section
17, Rule 14 and 15 of the Rules of Court, do not apply, for we still believe
that one of the four modes of service must at least be observed, yet on the
ground of extreme necessity, this Court believes that somehow, somebody
must act boldly in order to protect the interest of parties and of the owner of
the vessel which is believed to be the government of the Philippines. On the
ground of extreme necessity and partly by virtue of the provisions of Rule
57,
512

Section 11, the cargo on board the MV San Vicente, is ordered sold
privately, so that the vessel may immediately be sent for drydock. subject to
the following conditions:
“1. That the negotiations for the sale of the cargo shall be the sole
responsibility of plaintiff Filcar subject to the supervision by this
Court and the intervention of plaintiff-intervenor, the Sierra Madre
Wood Industries, Inc.;
“2. That the Court and the plaintiff-intervenor be fully informed
regarding the progress of the negotiations and that the sale shall not
be finalized without first securing the approval of this Court as to
the selling price;
“3. The proceeds of the sale shall be deposited with a banking
institution as approved by this Court and shall be disposed of only
upon order of this Court, subject to the first lien of plaintiff-
intervenor; and
“4. Defendant AB Charles Thorburn & Co., etc. shall be notified of the
Order of this Court together with a copy of the amended complaint
and the complaint in intervention, thru the Department of Foreign
Affairs, and the Philippine Embassy at Jeddah, Saudi Arabia. Proof
of Service shall be submitted to this Court. After such time
afforded the defendant, in order to enable them to answer or appear
in this Court or make any claim whatsoever, and still they fail to
make any manifestation, hearing of this case shall resume regarding
the final disposition of the proceeds to all concerned.”
On June 27, 1977, respondent Judge approved tentatively the sale of

the cargo to Bengzon’s Industries. This Order was followed by
another dated
1
July 19, 1977, approving the Deed of Absolute Sale of
the cargo.
On August 15, 1977, petitioner law firm filed with respondent
Judge a special appearance for defendant Ahmed Baroom contesting
the Court’s jurisdiction over Baroom’s person and property and a
Motion to Dismiss on the ground that the Court had not acquired
jurisdiction
2
over Baroom’s ‘person or property aboard the MV San
Vicente.”
On August 29, 1977, respondent Judge issued an Order directing
petitioner law firm to show on or before September
________________
1 p. 117, Rollo.
2 p. 78, Rollo.
513
VOL. 118, NOVEMBER 19, 1982 513

20, 1977 a written authorization

3
signed by its client, Baroom, “since
the latter is a foreigner.”
On November 15, 1977, petitioner, as Baroom’s counsel, filed an
answer with compulsory counterclaim, claiming that defendant
Baroom is not an agent of Charles Thorburn since the cargoes
belong to him, and denying the validity of plaintiff’s lien over the
cargo. Petitioner reiterates the defense that plaintiff’s action being in
personam, involving defendant who is not a resident within the
territorial jurisdiction of the Court, and there is no showing in the
records that the provisions of Section 17, Rule 14 in relation to
Section 1, Rule 57, of the Rules of Court have been complied with
to convert the action in rem, the Court had no jurisdiction over the
case. Baroom, through petitioner, prayed that plaintiff be directed to
deliver the cargoes to Jeddah, pay damages corresponding to the full
value of the goods and to the lost income and profits he could have
realized had plaintiff delivered the cargo to him. Baroom, likewise,
filed a cross-claim against Sierra Madre, plaintiff-intervenor.
On January 23, 1978, petitioner filed with respondent Judge a
manifestation and motion that it be “allowed to withdraw from this
case and charging lien be recorded against the properties of Mr.
Baroom now aboard MV San4 Vicente for unpaid professional fees

and reimbursement expenses.”
Thereafter, on February 17, 1978, petitioner filed before the
Court of First Instance of Rizal a complaint with a prayer for a writ
of preliminary attachment for the recovery of professional fees and
reimbursement of expenses against Baroom whom it alleged to have
represented in Civil Case No. 105048, CFI, Manila. The case was
docketed as Civil Case No. 28710 and the same was assigned to
Branch XXI presided over by Judge Gregorio C. Pineda.
By virtue of the order dated February 28, 1978 issued by Judge
Pineda in the new case, petitioner obtained a writ of preliminary
attachment against Baroom’s alleged cargoes which is the subject
matter in Civil Case No. 105048.
________________
3 p. 118, Rollo.
4 pp. 119-121, Rollo.
514

Meanwhile, in Civil Case No. 105048, on August 2, 1978,

respondent Judge gave Attys. Quasha and Valmonte ten (10) days
from receipt of order within which to explain why they should not
be held in contempt of court for filing a case entitled “Quasha
Asperilla Ancheta Valmonte Peña and Marcos vs. AlSayed Abdullah
Mohammed Baroom” docketed as Civil Case No. 28710 in the
Court of First Instance of Rizal, Branch XXI, where they obtained a
writ of preliminary attachment over the cargoes, which they knew to
be subject
5
matter of Civil Case No. 105048 pending before his
sala.” A compliance with said order was filed on August 24, 1978,
with petitioner alleging that their cause of action against Baroom
was for payment of professional fees and reimbursement of
expenses while Case No. 105048 before Judge Juan was for alleged
unpaid charter hire fees.
On August 25, 1978, respondent Judge issued an order approving
the sale of the cargo in question to Apollo Kokin Trading Co., Ltd.
In accordance with the earlier order of April 28, 1977, respondent
Judge directed the deposit of the sale proceeds with a banking
institution to be approved
6
by the Court and its disposition only on
orders of the Court.
On September 8, 1978, Filcar filed with the Court of First
Instance of Rizal an urgent omnibus motion to be allowed to appear
and to dismiss the case and to lift the writ of preliminary attachment
and set aside the order to auction the cargo, attaching thereto the
order of respondent Judge dated August 25, 1978, approving the sale
in favor of Apollo Kokin Trading Co., Ltd. of the subject cargo, the
proceeds of which after deducting all expenses shall be deposited
with the court.
Thus, petitioner, on October 23, 1978, filed before this Court the
instant petition. Petitioner assails the order of August 25, 1978, not
the earlier order of April 28, 1977 approving the sale in favor of
Apollo Kokin Trading Co., Ltd. of the questioned cargo for having
been issued in grave abuse of discretion considering that subject
cargo was allegedly earlier attached by the Court of First Instance of
Rizal.
________________
5 p. 123, Rollo.
6 pp. 133-134, Rollo.
515
VOL. 118, NOVEMBER 19, 1982 515

Without giving due course to the petition and pending the filing of
comments by respondents, this Court issued on October 24, 1978 a
temporary restraining order,
“enjoining respondents to immediately cease and desist from taking,

unloading, transferring, conveying, transporting or disposing of the* cargoes
or any part thereof aboard the MC San Vicente and Dong Myung, or from
taking the cargoes away, subject matter of Civil Case No. 105048 entitled
‘Filipinas Carriers, Inc. vs. AB Charles7 Thorburn & Co., et al.’ of the Court
of First Instance of Manila, Branch X.”
On October 30, 1978, petitioner filed a manifestation and motion

informing this Court that notwithstanding the restraining order, the
MV Don Myung, with the cargo aboard left surreptitiously at
midnight of October 24, 1978 without the assistance of any pilot in
violation of Harbor rules. The goods were then allegedly sold for US
$220,200.43 under irrevocable letters of credit issued by the Fuji
Bank of Osaka, Japan. Petitioner, thus, prayed that several persons,
namely, Mr. Federico Tabora, Jr., President of Filipinas Carriers,
Inc., Mr. Gregorio Gatchalian, allegedly operations manager of the
American Steamship Agencies, Inc. being the agent representing the
MV Dong Myung, Lt. JG Godolredo Orcullo of the Operations
Center and Seaman 1st Class Avelino Lontoc of the Philippine Coast
Guard be cited for contempt.
In the meanwhile, a compromise agreement dated October 16,
1978 and filed on November 2, 1978 wherein Filcar assigned its
interests and rights in the proceeds of the sale of the subject cargoes
to Sierra Madre which the latter accepted was approved by the
respondent court in its decision of November 3, 1978. An amended
petition was thus filed in this Court impleading Sierra Madre as
partly respondent in this case with prayer that a writ of garnishment
be issued on the proceeds of the sale of the cargoes which are in the
possession of Sierra Madre, and an order be issued directing Sierra
Madre and all
________________
* Pending the issuance of the temporary restraining order, the properties were
being discharged from the MV San Vicente into MV Dong Myung.
7 p. 36, Rollo.
516

those to whom such proceeds may subsequently be reassigned to

deliver to petitioner such portion of the proceeds of the sale as
would satisfy the attorney’s lien in the interest of justice.
Coming back to the omnibus motion of Filcar for the lifting of
the preliminary attachment issued by the Court of First Instance of
Rizal, the said court on December 7, 1978 dismissed petitioner’s
case and lifted the preliminary attachment issued therein. Upon
motion for reconsideration dated April 7, 1979, the said preliminary
attachment was reinstated by 8
the Court of First Instance of Rizal in
its order dated July 5, 1979.
After several pleadings
9
were filed in this Court, We gave due
course to the petition.
Petitioner contends that respondent court did not acquire
jurisdiction neither over any of the defendants as they have not
voluntarily submitted themselves to the jurisdiction of respondent
court, nor over the res, since there had been no seizure of the
property under a legal process, as by a writ of attachment or other
process of similar effect. The instant case is allegedly neither a
proceeding in rem as would place the property under its potential
10
power citing the leading case of Ban-co Español v. Palanca which
held:
“Jurisdiction over the property which is the subject of litigation may result
either from a seizure of the property under legal process, whereby it is
brought into the actual custody of the law, or it may result from the
institution of legal proceedings wherein under special provisions of law, the
power of the court over the property is recognized and made effective. In the
latter case the property, though at all times within the potential power of the
court, may never be taken into actual custody at all. An illustration of the
jurisdiction acquired by actual seizure is found in attachment proceedings,
where the property is seized at the beginning of the action, or some
subsequent stage of its progress and held to abide the final event of the
litigation. An illustration of what we term potential jurisdiction over the
resis found in the proceeding to register the title of land under our system
for the registration of land. Here the court, without taking actual physical
control over the property assumes, at
________________
8 p. 403, Rollo
9 p. 436, Rollo
10 37 Phil. 921
517
VOL. 118, NOVEMBER 19, 1982 517

the instance of some person claiming to be the owner, to exercise a

jurisdiction in rem over the property and to adjudicate the title in favor of
the petitioner against all the world.”
Claiming that it was the Court of First Instance of Pasig that first
acquired jurisdiction over the res to the exclusion of respondent
court, petitioner insists that the latter court’s act is undue
interference which cannot be countenanced.
There is no pretense that respondent court has jurisdiction over
the cause of action.It is much too obvious to merit a fuller
discussion. Suffice it to say that an action based upon an oral
contract of transportation of goods by water is an action in admiralty
which comes under the original and exclusive jurisdiction11 of the
Court of First Instance irrespective of the value of the cargo.
As to the person of Baroom, it is to be conceded that at the initial
stage of the proceeding in the Court of First Instance of Manila prior
to the issuance of the order of April 28, 1977 directing the sale of
the property and petitioner’s filing of various pleadings, said court
did not have jurisdiction over Baroom. Baroom was a non-resident
alien and he was beyond the reach of the court’s legal processes. But
since the action is brought principally for the enforcement of
maritime lien against the property of defendants who failed to pay
the charter hire fee, and therefore the same is in the nature and
character of a proceeding quasi in rem, jurisdiction over defendant
Baroom is not essential. An action quasi in rem has been defined as
“an action between parties where the direct object is to reach and
dispose of property owned by them or of some interest therein.” As
such the properties allegedly owned by him are primarily made
liable. In elucidating the characteristic of a proceeding where a non-

resident defendant fails to appear, this Court in the aforecited
leading case of Banco Espanol Filipino v. Palanca said:
“If however, the defendant is a non-resident and, remaining beyond the

range of the personal process of the court, refuses to come in voluntarily, the
court never acquires jurisdiction over the person
________________
11 Negre v. Cabahug Shipping & Co., 16 SCRA 655.
518

at all.Here the property itself is in fact the sole thing which is impleaded and
is the responsible object which is the subject of the exercise of judicial
power.It follows that the jurisdiction of the court in such case is based
exclusively on the power which, under the law, it possesses over the
property; and any discussion relative to the jurisdiction of the court over the
person of the defendant is entirely apart from the case.
12
The foregoing ruling was applied in Mabanag vs. Gallimore:
“As a general rule, when the defendant is not residing and is not found in
the Philippines, the Philippine courts cannot try any case against him
because of impossibility of acquiring jurisdiction over his person, unless he
voluntarily appears in court.But when the action x x x is intended to seize or
dispose of any property, real or personal, of the defendant, located in the
Philippines, it may validly be tried by the Philippine courts, for then, they
have jurisdiction over the res, i.e. x x x the property of the defendant, and
their jurisdiction over the person of the non-resident is not essential x x x.”
(Citing I Moran’s Comments on the Rules of Court, 2d Ed., 105).
At any rate, defendant Baroom filed later, aside from a motion to

dismiss, an answer with counterclaim praying that plaintiff be
directed to deliver the cargoes of defendant Baroom to Jeddah and to
pay damages, etc. and a crossclaim against Sierra Madre, thereby
abandoning any question on jurisdiction over the person and
submitting
13
himself to the jurisdiction of the court. In Tenchavez vs.
Escaño, this Court quoted with approval the ruling in Merchant’s
Heat and Light Co. vs. Clow & Sons, 204 U.S. 286, 51 Law Ed.
488:
“We assume that the defendant lost no rights by pleading to the merits, as
required, after saving its rights. Harkness vs. Hyde, 98 U.S. 476, 25 L. ed.
237; Southern P. Co. vs. Denton, 146 U.S. 202, 36 L. ed. 943, 13 Sup. Ct.
Rep. 44. But by setting up its counterclaim the defendant became a plaintiff
in its turn, invoked the jurisdiction of the court in same action, and, by
invoking submitted to it. It is true that the counterclaim seems to have arisen
wholly out of the same
________________
12 81 Phil. 254.
13 17 SCRA 685.
519
VOL. 118, NOVEMBER 19. 1982 519

transaction that the plaintiff sued upon, and so to have been in recoupment
rather than in set-off proper. But, even at common law, since the doctrine
has been developed, as demand in recoupment is recognized as a cross
demand, as distinguished from a defense. Therefore, although there has been
a difference of opinion as to whether a defendant, by pleading it, is
concluded by the judgment from bringing a subsequent suit for the residue
of his claim, a judgment in his favor being impossible at common law, the
authorities agree that be is not concluded by the judgment if he does not
plead his cross demand, and that wnether he shall do so or not is left wholly
to his choice.Davis vs. Hedges, L.R. 6 Q.B.687; Mondel vs. Steel, 8 Mees &
W. 858, 872; O’Connor vs. Varney, 10 Gray, 231. This single fact shows
that the defendant, if he elects to sue upon his claim in the action against
him, assumes the position of an actor and must take tbe consequence. The
right to do so is of modern growth, and is merely a convenience that saves
bringing another suit, not a necessity of tbe defense.”
In the aforecited case, the Court explains that the rule is such
because “it cannot look with favor upon a party adopting not merely
inconsistent, but actually contradictory positions in one and the same
suit, claiming that a court has no jurisdiction to render judgment 14
against it, but has such jurisdiction to give a decision its favor.”
It may be noted that if the defendant voluntarily appears, the
action becomes as to him a personal action and is conducted as such.
Even then, the court does not lose its jurisdiction over the res,
assuming that it has indeed jurisdiction over the res. The res still
remains under its control and disposition.
As regards jurisdiction over the res, We hold that respondent
acquires jurisdiction over it. Where a property is burdened by a lien,
a writ of attachment is no longer necessary in order that jurisdiction
over the property may be obtained by the court. In the same cited
case by petitioner, in the Banco Español case, it was clarified:
“In an ordinary attachment proceeding, if the defendant is not personally

served, the preliminary seizure is to be considered necessary in order to
confer jurisdiction upon the court. In this case
________________
14 Ibid.
520

the lien on the property is acquired by seizure; and the purpose of the
proceeding is to subject the property to that lien. If a lien already exists,
whether created by mortgage, contract, or statute, the preliminary seizure is
not necessary, and the court proceeds to enforce such lien in the manner
provided by law precisely as though the property had been seized upon
attachment (Roller v. Holly, 176 U.S. 398, 405; 44 L. ed. 520).”
The reason for the rule is obvious. An attachment proceeding is for

the purpose of creating a lien on the property to serve as security for
the payment of the creditors’ claim. Hence, where a lien already
exists, as in this case a maritime lien, the same is already equivalent
to an attachment. Moreover, since the property subject of the action
for the enforcement of the maritime liens was already in the
possession of private respondent, there is no need for seizure for the
court to obtain jurisdiction over the res.
“Where a party in actual possession of the res subject to the lien is before
the court, the res is within the jurisdiction of the court for the enforcement
of the lien. A suit may be maintained to foreclose a lien on property within
the jurisdiction of the
15
court, although some interest or claim therein is held
by a non-resident.”
The other argument posed by petitioner to challenge respondents’

right over the property is that there is no privity of contract between
Baroom and respondents. It avers that Baroom is not merely the
agent of Thorburn but himself the owner of some of the cargoes and
whose contract to ship the same is with sub-charterer Thorburn. It
avers further that neither Thorburn could attach a lien on the
property since Baroom had allegedly paid fully for the shipment
even before the vessel sailed, as evidenced by the clean freight pre-
paid bills of lading.
Claiming right over the cargo to answer for the unpaid
professional fees, petitioner submits to this Court the required
written authority from Baroom claiming that due to snag in
communication and unreliability of the mailing system, it did not
receive the documents from its client on time.
________________
15 53 C.J.S. 875.
521
VOL. 118, NOVEMBER 19, 1982 521

The foregoing entails determination of facts. It would be highly

irregular if this Court would have to resolve those questions, this
Court not being a trier of facts. The several documents mentioned by
petitioner and attached to its pleadings before this Court were never
presented before the lower court. After Baroom had abandoned his
defense which created the presumption that he had no defense, that
he is not the owner of the cargo, petitioner should have pursued the
same argument before respondent court in claiming the alleged
professional fee. This is in accordance with Article 1177 of the New
Civil Code which provides:
“Art. 1177. The creditors having pursued the property in possession of the
debtor to satisfy their claims may execise all the rights and bring all the
actions of the latter for the same purpose, save those which are inherent in
his person; they may also impugn the acts which the debtor may have done
to defraud them.”
Indeed, petitioner should have maintained its action in respondent’s

court. After all, a court which has in its possession, control or
equivalent dominion, property or funds involved in litigation may
exercise exclusive jurisdiction over such property or funds to
determine the rights therein, such as questions respecting the title,
possession or control, management and disposition thereof and
another court of concurrent or coordinate16 jurisdiction cannot
interfere with such possession or control. The rights to be
determined by said court necessarily include the attorney’s fees due
to the lawyers who represented the parties. Significantly, the lower
court which undoubtedly has in its favor the presumption of
regularity and which was never restrained by this Court from17
proceeding with the case issued an order dated January 25, 1979
making the following findings of fact:
1. Thorburn fails to pay the freight so that respondent Filcar had the right to
impose its lien on the cargo including sub-freights.
Paragraph 16 of the time charter contract provides:
________________
16 21 C.J.S. 755-757.
17 p. 421, Rollo.
522

“That the owners shall have a lien upon all cargoes and all sub-freights for any
amounts due under this Charter including General Average contributions and the
charterers to have a lien on the ship for all monies paid in advance and not earned,
and any overpaid hire or excess deposit to be returned at once. Charterers will not
suffer nor permit to be continued, any lien or encumbrance incurred by them or their
agents, which might have priority over the title and interest of the owners of the
vessel.”
2. Thorburn executed a liner term contract with Baroom who was

playing the double role of agent of said Thorburn and agent of three
consignee banks in Jeddah.
3. Baroom applied to Filcar to be its agent, but when it was
discovered that he was the agent of Charles Thorburn and the three
(3) consignee banks, the application was rejected due to conflict of
interest.
4. The pre-paid freight representation of Baroom is false because the
condition of the L/C issued by the 3 consignee banks provides a
C/F arrangement which means payment of the goods, insurance and
freight can only be made upon physical delivery of the goods in
Jeddah.
5. Baroom intervened in the case (before respondent court) using the
Quasha law office.He later withdrew upon knowing he has no
defense.In fact, he did not even give Quasha written authority to
appear for him as his lawyer.
6. The court of respondent Judge “has jurisdiction over the person of
defendant and subject cargo of the vessel.”
7. The Quasha law office is not entitled to any claim for attorney’s
lien.
Prescinding from the foregoing, We find no abuse of discretion in

issuing the questioned order of August 25, 1978, and therefore the
instant petition should be dismissed. It could not be claimed that the
act of respondent Judge in issuing the said order amounts to
interference with the writ of attachment dated February 28, 1978
issued by Judge Pineda, for by the time the said writ was issued,
respondent Judge had already control and disposition of the case.
The order of August 25, 1978 was but an implementation of the
earlier order of April 28, 1977 directing the sale of the cargoes on
the ground of ex-
523
VOL. 118, NOVEMBER 19, 1982 523

treme necessity as the cargoes as found by respondent Judge upon

ocular inspection were in danger of deteriorating and losing their
market value and the vessel was also in danger of sinking. By then,
respondent Judge had also issued the order dated July 19, 1977
approving a Deed of Sale of subject cargoes.
It should be noted that at the time petitioner filed the action
before Judge Pineda, it has already submitted itself to the
jurisdiction of respondent court and in fact its “charging lien” which
is the same cause of action before Judge Pineda was still pending
before respondent court. Pending also before respondent Judge were
petitioner’s answer with counterclaim, cross claim, motion to
dismiss and motion to withdraw from the case.
Petitioner may not enforce its attorney’s lien, which accordingly
is based on Section 37 of Rule 138 which provides:
“Sec. 37. Attorney’s lien.—An attorney shall have a lien upon the funds,
documents and papers of his client which have lawfully come into his
possession and may retain the same until his lawful fees and disbursements
have been paid and may apply such funds to the satisfaction thereof. He
shall also have a lien to the same extent upon all judgments for the payment
of money, and executions issued in pursuance of such judgments, which he
has secured in a litigation of his client, from and after the time when he
shall have caused a statement of his claim of such lien to be entered upon
the records of the court rendering such judgment, or issuing such execution,
and shall have caused written notice thereof to be delivered to his client and
to the adverse party; and he shall have the same right and power over such
judgments and executions as his client would have to enforce his lien and
secure the payment of his just fees and disbursements.”
Based on the foregoing provision, the liens for attorney’s fees and
expenses apply only on the funds or documents of clients which
lawfully come to the possession of the counsel (called retaining lien)
and to all judgments secured by the counsel (called charging lien). In
his manifestation and motion before respondent Judge, petitioner is
claiming for his charging lien. But it should be noted that at the time
of its filing, the orders of April 27, 1977 ordering the sale of the
cargoes and
524

July 19, 1977 approving the Deed of Sale of cargoes were already in
existence and both were in fact in favor of private respondent. It is
curious to note that petitioner never questioned said orders on appeal

or by a special civil action. Petitioner’s client in fact even abandoned
its case. Hence, having no favorable judgment that could be
anticipated, the charging lien has no leg to stand on. Perhaps because
it was aware of its predicament that petitioner filed an independent
action for recovery of its professional fees and for reimbursement of
expenses which would have been proper, except that the ownership
of the property sought to be attached was questionable and the same
was already sold by respondent court. But just as We had said
before, petitioner should have filed its claim for professional fees in
respondent’s court for said court has the exclusive jurisdiction to
determine the real owner of the cargoes. We hasten to add, however,
that the action should not be for a charging lien, but a simple
complaint in intervention for recovery of professional services and
reimbursement of expenses, thus avoiding multiplicity of suits.
On October 24, 1978, We issued a temporary restraining order
enjoining the disposition or unloading of the cargoes. It turned out,
however, that before the said order could be served upon the private
respondents, all the cargoes subject of the petition had been loaded
into the M.V. Dong Myung, of which this Court has no jurisdiction
being a foreign vessel. When the vessel sailed and the cargoes
eventually sold, everything became fait accompli and the case before
Us moot and academic.
Petitioner prays for the garnishment of the proceeds, but to allow
the same, there must first be a determination of the ownership of the
cargo. Again, We say We are not in a position to do so. Petitioner
failed to file motion for reconsideration of the order of August 25,
1978 approving the sale of the cargo, and it abandoned its own case
before respondent Judge. The result of its negligence in allowing
considerable period to lapse before claiming right over the cargo,
and resorting to injunc-tive relief must be borne by it. Petitioner is
not entitled to any relief and the instant petition must be dismissed.
We shall also dismiss petitioner’s charge of contempt against
respondent
525
VOL. 118, NOVEMBER 19, 1982 525

since as We said before, before the temporary restraining order could

be served everything was already fait accompli.
Likewise, We also dismiss the respondents’ charge against
petitioner for direct contempt for allegedly omitting material facts
Vital to the
18
full appreciation of this Court. In De Midgely vs.
Ferandos, this Court ruled that such tactic is generally tolerated
because understandably lawyers are apt to slant the presentation of
their clients’ case so that they would have favorable judgments.
“Courts are not deceived by the exaggerations and distortions in a

counsel’s lopsided submission of his client’s case especially where,
as in this case, the alert opposing counsel calls the court’s attention
to that fact.”
Indeed, “contempt of court presupposes a contumacious19attitude,
a flouting of arrogant belligerence, a defiance of the court. It is an
offense against the authority and dignity of the court.
WHEREFORE, the petition is hereby dismissed.
SO ORDERED.
Makasiar (Chairman), Aquino, Concepcion, Jr., and

Guerrero, JJ., concur.
Abad Santos and Escolin, JJ., in the result.
Petition dismissed.
Notes.—The courts may reduce the contingent fee of legal

counsels. (FFF vs. Court of Appeals, 107 SCRA 352.)
A lawyer is not entitled to attorney’s fees where no special effort
was exerted nor special service rendered by him on behalf of a labor
union. (NPC Supervisors’Union vs. NPA, 106 SCRA 556.)
——o0o——
________________
18 64 SCRA 31.
19 citing Matutina vs. Judge Buston, et al., 109 Phil. 140, 142.
526
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9/6/2019 SUPREME COURT REPORTS ANNOTATED VOLUME 118

VOL. 118, NOVEMBER 19, 1982 505

QUASHA ASPERILLA ANCHETA VALMONTE PEÑA &

Action; Jurisdiction; An action based on an oral contract of

506 SUPREME COURT REPORTS ANNOTATED

Quasha Asperilla Ancheta Valmonte Peña & Marcos vs. Juan

elusive jurisdiction of the Court of First Instance irrespective of the value of

Same; Same; An action brought for enforcement of a maritime lien is

Same; Same; Same.—If however, the defendant is a non-resident and,

Same; Issue of jurisdiction abandoned by foreigner’s filing an answer

Same; Jurisdiction; Attachment; When a court acquires jurisdiction

VOL. 118, NOVEMBER 19, 1982 507

Quasha Asperilla Ancheta Valmonte Peña & Marcos vs. Juan

ment is no longer necessary in order that jurisdiction may be obtained.—As

Attorneys; Damages; Obligations; Petitioners should have pursued

Same; Same; Same; Same; Same.—Indeed, petitioner should have

Jurisdiction; Courts; Once a court acquires jurisdiction over a case

508 SUPREME COURT REPORTS ANNOTATED

Quasha Asperilla Ancheta Valmonte Peña & Marcos vs. Juan

another court to which an attorney subsequently filed a claim for attorney’s

Attorneys; An attorney errs in filing a suit for a charging lien which

Actions; Garnishment; Garnishment of proceeds of sale ordered by

VOL. 118, NOVEMBER 19, 1982 509

Quasha Asperilla Ancheta Valmonte Peña & Marcos vs. Juan

of the cargo. Again, We say We are not in a position to do so. Petitioner

temporary restraining order could be served everything was already fait

Attorneys; Contempt; The tactics of lawyers of slanting their

PETITION for certiorari and prohibition with preliminary injunction

The facts are stated in the opinion of the Court.

In this petition for certiorari and prohibition with preliminary

510 SUPREME COURT REPORTS ANNOTATED

issued by Hon. Gregorio Pineda of the Court of First Instance of

105048, Filcar alleged that it is the disponent owner of a vessel, MV

VOL. 118, NOVEMBER 19, 1982 511

consequently, Filcar was forced to exercise its lien on the cargoes

512 SUPREME COURT REPORTS ANNOTATED

On June 27, 1977, respondent Judge approved tentatively the sale of

VOL. 118, NOVEMBER 19, 1982 513

20, 1977 a written authorization

Baroom now aboard MV San4 Vicente for unpaid professional fees

514 SUPREME COURT REPORTS ANNOTATED

Meanwhile, in Civil Case No. 105048, on August 2, 1978,

VOL. 118, NOVEMBER 19, 1982 515

“enjoining respondents to immediately cease and desist from taking,

On October 30, 1978, petitioner filed a manifestation and motion

516 SUPREME COURT REPORTS ANNOTATED

those to whom such proceeds may subsequently be reassigned to

VOL. 118, NOVEMBER 19, 1982 517

the instance of some person claiming to be the owner, to exercise a

liable. In elucidating the characteristic of a proceeding where a non-

“If however, the defendant is a non-resident and, remaining beyond the

11 Negre v. Cabahug Shipping & Co., 16 SCRA 655.

518 SUPREME COURT REPORTS ANNOTATED

At any rate, defendant Baroom filed later, aside from a motion to

VOL. 118, NOVEMBER 19. 1982 519

“In an ordinary attachment proceeding, if the defendant is not personally

520 SUPREME COURT REPORTS ANNOTATED

The reason for the rule is obvious. An attachment proceeding is for