Hiyas Savings and Loan bank vs CA, Spouses Delfin Mendoza and Solita

Santos and Spouses Felix Santos and Demetria Pacheco

GR No. 95625, October 4, 1991
Facts:
RTC rendered decision and ordered that the plaintiff shall pay Hiyas Savings
and Loan Association the following sums:
1. P200,000 representing the principal amount of loan with 14% interest per
annum
2. Ten percent (10%) of the amount due as and by way of attorneys fees;
and
3. The costs of the suit.
June 7, 1989, private respondents deposited in court two treasury checks in
the amount of P428,600 in satisfaction of judgment favoring Hiyas Savings and Loan
Bank in a civil case. The amount of P40,735.35 was applied by the petitioner as
attorneys fees. However, on August 18, 1989, petitioner filed an amended motion
for execution. Petitioner claimed that the total liability of the private respondents
was P448,941.92. Hence, there was still an unsatisfied balance which it claimed to
be P20,250.38 as 10% of attorneys fee from the interest of principal obligation.
The motion was denied and dismissed by CA.
Issue:
Whether or not the attorneys fee will only be based to 10% of the principal
amount due?
Held:
There is no ambiguity as regards the amount of attorneys fees awarded. It is
clear that the final and executory decision of the RTC awarded ten percent (10%) of
the amount due as attorneys fees. Since there was no qualification that the ten
percent attorneys fees shall be taken only is the total amount due on the loan
obligation (principal + interest). Had the decision really intended that the attorneys
fees shall be ten percent (10%) of the principal only, it could have so provided.
Courts are cautioned to be careful in writing their decisions, to be clear and
precise in the use of words, especially in the dispositive portion.
The petition was granted declaring that the total amount of the judgment
debt unsatisfied in Civil Case is P20,250.38 plus 14% interest until full payment.