Canlas vs. CAPATERNO R. CANLAS, petitioner,vs.HON. COURT OF APPEALS, and FRANCISCO HERRERA,respondents.

G.R. No. L-77691August 8, 1988

SARMIENTO,J .:

Facts:

The private respondent own several parcels of land located in Quezon City for which he is the registered owner. He secured loans from L and R corporations and executed deeds of mortgage over the parcels of land for the security of the same. Upon the maturity of said loans, the firm initiated an extrajudicial foreclosure of the properties in question after private respondent failed to pay until maturity. The private respondent filed a complaint for injunction over the said foreclosure and for redemption of the parcels of land. Two years after the filing of the petition, private respondent and L and R corporation entered into a compromise agreement that renders the former to be insured another year for the said properties. Included in the stipulations were the attorney’s fees amounting to Php 100,000.00. The private respondent however, remained to be in turmoil when it came to finances and was apparently unable to pay and secure the attorney’s fees, more so the redemption liability. Relief was discussed by petitioner and private respondent executed a document to redeem the parcels of land and to register the same to his name.

Allegations were made by the private respondent claiming the parcels of land to his name but without prior notice, the properties were already registered under the petitioner’s name. The private respondent calls for a review and for the court to act on the said adverse claim by petitioner on said certificates for the properties consolidated by the redemption price he paid for said properties. The private respondent filed a suit for the annulment of judgment in the Court of appeals which ruled over the same.

Issue: whether the petitioner is on solid ground on the reacquisition over the said properties.

Ruling:By Atty. Canlas' own account, "due to lack of paying capacity of respondent Herrera, no financing entity was willing to extend him any loan with which to pay the redemption price of his mortgaged properties and petitioner's P100,000.00 attorney's fees awarded in the Compromise Judgment," a development that should have tempered his demand for his fees. For obvious reasons, he placed his interests over and above those of his client, in opposition to his oath to "conduct himself as a lawyer ... with all good fidelity ... to [his] clients." The Court finds the occasion fit to stress that lawyering is not a moneymaking venture and lawyers are not merchants, a fundamental standard that has, as a matter of judicial notice, eluded not a few law advocates. The petitioner's efforts partaking of a shakedown" of his own client are not becoming of a lawyer and certainly, do not speak well of his fealty to his oath to "delay no man for money." We are not, however, condoning the private respondent's own shortcomings. In condemning Atty. Canlas monetarily, we cannot overlook the fact that the private respondent has not settled his liability for payment of the properties. To hold Atty. Canlas alone liable for damages is to enrich said respondent at the expense of his lawyer. The parties must then set off their obligations against the other.