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    Gan Tion v. CA 28 SCRA 235

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    Jarmie Ciapa
    The petitioner filed an eviction lawsuit against the respondent for unpaid rent totaling ₱360. The respondent claimed the agreed rent was lower and offered payment, which was declined. The lower courts ruled in favor of the respondent, ordering the petitioner to pay ₱500 in attorney's fees. The Supreme Court reversed, finding that legal compensation was appropriate since the respondent owed the petitioner over ₱4,000 in unpaid rent, and forcing payment of the ₱500 would be unreasonable.

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    Gan Tion v. CA 28 SCRA 235

    Uploaded by

    Jarmie Ciapa
    30 views2 pages
    The petitioner filed an eviction lawsuit against the respondent for unpaid rent totaling ₱360. The respondent claimed the agreed rent was lower and offered payment, which was declined. The lower courts ruled in favor of the respondent, ordering the petitioner to pay ₱500 in attorney's fees. The Supreme Court reversed, finding that legal compensation was appropriate since the respondent owed the petitioner over ₱4,000 in unpaid rent, and forcing payment of the ₱500 would be unreasonable.

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    The petitioner filed an eviction lawsuit against the respondent for unpaid rent totaling ₱360. The respondent claimed the agreed rent was lower and offered payment, which was declined. The lower courts ruled in favor of the respondent, ordering the petitioner to pay ₱500 in attorney's fees. The Supreme Court reversed, finding that legal compensation was appropriate since the respondent owed the petitioner over ₱4,000 in unpaid rent, and forcing payment of the ₱500 would be unreasonable.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views2 pages

    Gan Tion v. CA 28 SCRA 235

    Uploaded by

    Jarmie Ciapa
    The petitioner filed an eviction lawsuit against the respondent for unpaid rent totaling ₱360. The respondent claimed the agreed rent was lower and offered payment, which was declined. The lower courts ruled in favor of the respondent, ordering the petitioner to pay ₱500 in attorney's fees. The Supreme Court reversed, finding that legal compensation was appropriate since the respondent owed the petitioner over ₱4,000 in unpaid rent, and forcing payment of the ₱500 would be unreasonable.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    of 2

    Assignment no 4: Extinguishment of Obligations

    [G.R. No. L-22490 May 21, 1969]


    GAN TION, petitioner, vs.HON. COURT OF APPEALS, HON.
    JUDGE AGUSTIN P. MONTESA, as Judge of the Court of First
    Instance of Manila, ONG WAN SIENG and THE SHERIFF OF
    MANILA, respondents.
    Facts:
    1. Petitioner's/Plaintiff's claim/s

    Ong Wan Sieng was a tenant at some of Gan Tion's


    properties. In 1961, the latter filed an eviction lawsuit against
    the former, alleging non-payment of rents of ₱ 180 per month,
    or ₱ 360 total, for August and September of that year.

    2. Respondent’s/Defendant’s claim/s

    The defendant contesting the claim, claiming that the


    agreed-upon monthly rental was just ₱ 160, which he had
    offered but the plaintiff has declined.

    3. Decision on lower courts


    The plaintiff won a favorable verdict at the municipal court
    (manila), but the Court of First Instance reversed the judgment
    and dismissed the complaint on July 2, 1962, ordering the
    plaintiff to pay the defendant ₱ 500 in attorney's fees. The
    judgment of the Court of appeals was reversed, and the writ of
    execution of CFI Manila is set aside. The petition was accepted
    by the appellate court but eventually decided for the respondent,
    holding that although "respondent Ong is indebted to the
    petitioner for unpaid rentals in an amount of more than ₱ 4,000"
    the sum of ₱ 500 could not be the subject of legal compensation,
    In the opinion of said Court, the requisites of legal compensation,
    namely, that the parties must be creditors and debtors of each
    other in their own right (Art. 1278, Civil Code) and that each of
    them must be bound principally and simultaneously be a principal
    creditor of the other (Art. 1279), are not present in the instant
    case.

    ISSUES
    4. Issue/s
    Whether there was legal compensation between petitioner
    and private respondent.

    HELD:
    5. Disposition of the case
    The award is granted in the litigant's favor, not his
    counsel's, and is justified as indemnity for losses recoverable by
    the former under the instances listed in Article 2208 of the Civil
    Code; as a result, legal recompense for such credit may be
    appropriate, which obviously forcing the petitioner to pay a debt
    of ₱ 500 when his creditor owes him more than ₱ 4,000 would
    be unreasonable.

    6. Dictum
    While the Court of Appeals reasoned that the attorney's
    fees are a trust fund for the benefit of the lawyer, which would
    have to be turned over by the client to his counsel and thus
    cannot be subject to legal compensation, the Supreme Court
    disagreed, ruling that the award is in the litigant's favor, not the
    counsel's. The judgment creditor is the plaintiff, and he or she
    has the power to enforce the legal compensation judgment
    through execution. The facts of the case demonstrated that
    enforcing it would be unreasonable because the respondent
    owes the petitioner more than ₱ 4,000, hence the writ of
    execution was dismissed.

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