Beruflich Dokumente
Kultur Dokumente
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* FIRST DIVISION.
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325
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627
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628
“x x x x
The Memorandum of Agreement entered into by the Province
of Albay and NPC merely enunciates the tax liability of NPC. The
Memorandum of Agreement does not provide for the manner of
payment of NPC’s liability. Thus, the manner of payment as
provided for by law shall govern. In any event, the Memorandum
of Agreement cannot amend the law allowing the payment of said
taxes to the Municipality of Tiwi.
The decision in the case of NPC v. Province of Albay (186 SCRA
198), likewise, only established the liability of NPC for real
property taxes but does not specifically provide that said back
taxes be paid exclusively to Albay province.
Therefore, it is our opinion that the NPC may pay directly to
the municipality of Tiwi the real property taxes accruing to the
same.
Please be guided accordingly.
Very truly yours,
(Sgd.)
ANTONIO T. CARPIO
Chief Presidential Legal Counsel7
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631
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632
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633
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11 Id., at p. 190.
634
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The appellate court agreed with the trial court that the
genuineness and due execution of the Contract of Legal
Services and Resolution No. 15-92 was impliedly admitted
by petitioners because of their failure to make a verified
specific denial thereof. Further, the answer filed by the
petitioners admitted the material averments of the
complaint concerning Tiwi’s liability under the subject
contract and its receipt from the NPC of a total of
P146,579,661.84 as realty taxes. Petitioners cannot claim
that the subject contract required ratification because this
is not a requisite for the enforceability of a contract against
a local government unit under the express terms of the
contract and the provisions of the Local Government Code
(LGC). Also, petitioners are estopped from questioning the
enforceability of the contract after having collected and
enjoyed the benefits derived therefrom.
The appellate court found nothing objectionable in the
stipulated contingent fee of 10% as this was voluntarily
agreed upon by the parties and allowed under existing
jurisprudence. The fee was justified given the numerous
administrative and court cases successfully prosecuted and
defended by the respondent in the face of the provincial
government’s stubborn refusal to release Tiwi’s share in
the realty taxes paid by NPC. The stipulated fee is not
illegal, unreasonable or unconscionable. It is enforceable as
the law between the parties.
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12 Rollo, p. 52.
635
Issues
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Petitioners’ Arguments
Petitioners claim that their answer raised factual issues
and defenses which merited a full-blown trial. In their
answer, they asserted that the 10% contingent fee is
unreasonable, unconscionable and unfounded considering
that respondent did not render any legal service which
accrued to the benefit of Tiwi. The Contract of Legal
Services specifically provided that for the attorney’s fees to
accrue, respondent’s legal services should result to the
recovery of Tiwi’s claims against Albay and NPC. It is,
thus, incumbent upon respondent to prove in a trial on the
merits that his legal efforts resulted to the collection of the
realty taxes in favor of Tiwi. Petitioners belittle as mere
messengerial service the legal services rendered by
respondent on the ground that what remained to be done
was the execution of the judgment of this Court in National
Power Corporation v. Province of Albay and the opinion of
then Chief Presidential Legal Counsel Antonio T. Carpio.
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636
Our Ruling
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638
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639
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does not appear to be a party to the instrument or when compliance with an order
for an inspection of the original instrument is refused.
18 Id.; Gaw v. Court of Appeals, G.R. No. 60783, October 31, 1990, 191 SCRA
77, 85.
19 Rollo, pp. 30-32.
640
641
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4. That the legal services which the Party of the FIRST PART is
obliged to render to the Party of the SECOND PART under this
AGREEMENT consists of the following:
a) To prepare and file cases in courts, Office of the President,
Ombudsman, Sandiganbayan, Department of Interior and Local
Government and Department of Finance or to represent the Party
of the SECOND PART in cases before said bodies;
b) To coordinate or assist the Commission on Audit, The National
Bureau of Investigation or the Fiscals Office in the prosecution of
cases for the Party of the SECOND PART;
c) To follow-up all fees, taxes, penalties and other receivables from
National Power Corporation (NPC) and Philippine Geothermal
Inc. due to the Municipality of Tiwi;
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25 Vergara v. Ombudsman, G.R. No. 174567, March 12, 2009, 580
SCRA 693, 714.
645
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(3) x x x x
(i) Represent the local government unit in all civil actions and special
proceedings wherein the local government unit or any official thereof, in
his official capacity, is a party: Provided, That, in actions or proceedings
where a component city or municipality is a party adverse to the
provincial government or to another component city or municipality, a
special legal officer may be employed to represent the adverse
party; (Emphasis supplied)
647
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28 Emphasis supplied.
648
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29 Records, p. 5.
30 Supra note 5 at p. 917.
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293 of the present Local Government Code and not through the
effort of the plaintiff. Annex “R” is hearsay and self-serving.”
While the plaintiff directly averred that “the Municipality of
Tiwi received One Hundred Ten Million Nine Hundred Eighty
Five Thousand One Hundred Eighty One & 83/100 (P110,985.83)
[sic] plus Thirty Five Million Five Hundred Ninety Four
Thousand Four Hundred Eighty (P35,594,480.00) Pesos
remittances from the said agency,” the defendant evasively stated
that “the amount of P110,985.83 [sic] was remitted to Albay
province” and that “the same is immaterial, useless as there was
no allegation that this was recovered/received by Tiwi.” Thereby,
the answer was a negative pregnant because its denial was not
specific. Hence, the defendants have admitted that Tiwi was paid
the stated amounts.
The defendants further stated that Tiwi received the amount of
P35,594,480.00 “as a matter of the clear provision of the law, [sic]
and not through the effort of the plaintiff.” However, considering
that the legal services of the plaintiff were rendered under a
written contract, the qualification as to the P35,594,480.00 was
meaningless.
The pleadings render it indubitable, therefore, that the total
amount of P146,579,661.84, which was received by Tiwi from
NPC, is subject to the 10% attorney’s fees under the plaintiff’s
contract of legal services.”31
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34 Id., at p. 34.
653
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35 Cortes v. Court of Appeals, 443 Phil. 42, 54; 395 SCRA 33, 42 (2003).
654
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