Thursday, July 27, 2023

Case Digest: Castaneda vs Ago, 65 SCRA 512, G.R. No. L-28546


Castaneda vs Ago, 65 SCRA 512, G.R. No. L-28546, July 30, 1975

Subject: Basic Legal Ethics


FACTS

In 1955, the petitioners, Venancio Castañeda and Nicetas Henson filed a replevin suit against Pastor Ago in the Court of First Instance of Manila to recover certain machineries. In 1957 judgment was rendered in favor of the plaintiffs, ordering Ago to return the machineries or pay definite sums of money.

In 1961, Ago appealed to the Supreme Court which affirmed the 1957 judgment, and the case was remanded to trial court. The trial court then issued a writ of execution for the sum of P172,923.87. Ago moved for a stay of execution but his motion was denied, and levy was made on Ago's house and lot located in Quezon City. The sheriff then advertised them for auction sale on October 25, 1961. Ago moved to stop the auction sale, failing in which he filed a petition for certiorari with the Court of Appeals. The appellate court dismissed the petition and Ago appealed. In 1966, Supreme Court affirmed the dismissal.

Ago thrice attempted to obtain a writ of preliminary injunction to restrain the sheriff from enforcing the writ of execution "to save his family house and lot;" his motions were denied.

In 1963, the sheriff sold the house and lots to the highest bidders, the petitioners Castañeda and Henson. In 1964, Ago failed to redeem and the sheriff executed the final deed of sale in favor of the vendees Castañeda and Henson. Upon their petition, the Court of First Instance of Manila issued a writ of possession to the properties.

In 1964, however, Pastor Ago, now joined by his wife, Lourdes Yu Ago, as his co-plaintiff, filed a complaint in the Court of First Instance of Quezon City to annul the sheriff's sale on the ground that the obligation of Pastor Ago upon which judgment was rendered against him in the replevin suit was his personal obligation and which did not benefit the conjugal partnership. They alleged that the wife own’s half of the share of the property. The Court of First Instance of Quezon City issued an ex parte writ of preliminary injunction restraining the petitioners, the Register of Deeds and the sheriff of Quezon City, from registering the latter's final deed of sale, from cancelling the respondents' certificates of title and issuing new ones to the petitioners and from carrying out any writ of possession. A situation thus arose where what the Manila court had ordered to be done, the Quezon City court countermanded.

In 1965, the Quezon City court lifted the preliminary injunction it had previously issued, and the Register of deeds of Quezon City cancelled the respondents' certificates of title and issued new ones in favor of the petitioners. But enforcement of the writ of possession was again thwarted as the Quezon City court again issued a temporary restraining order which it later lifted but then re-restored.

In 1966, while the battle on the matter of the lifting and restoring of the restraining order was being fought in the Quezon City court, the Agos filed a petition for certiorari and prohibition in the Supreme Court. SC finding no merit in the petition and dismissed the case. The respondents then again filed a similar petition for certiorari and prohibition with the CA which also dismissed the petition. The respondents then again appealed to the Supreme Court which was dismissed it in 1967.

The Ago spouses repaired once more to the CA where they filed another petition for certiorari and prohibition with preliminary injunction. The said court gave due course to the petition and granted preliminary injunction. In 1967, the court finally, and for the third time, lifted the restraining order.

ISSUE

Whether or not Agos’ lawyer encouraged the Agos to avoid controversy.

RULING

No, Ago’s lawyer did not encourage the Agos to avoid controversy.

Under the Code of Professional Responsibility, Canon 1, Rule 1.04 - A lawyer shall encourage his clients to avoid, end or settle a controversy if it will admit of a fair settlement.

In this case, SC held that despite the pendency in the trial court of the complaint for the annulment of the sheriff's sale (civil case Q-7986), elementary justice demands that the petitioners, long denied the fruits of their victory in the replevin suit, must now enjoy them, for, the respondents Agos, abetted by their lawyer Jose M. Luison, have misused legal remedies and prostituted the judicial process to thwart the satisfaction of the judgment, to the extended prejudice of the petitioners. The respondents, with the assistance of counsel, maneuvered for fourteen (14) years to doggedly resist execution of the judgment thru manifold tactics in and from one court to another (5 times in the Supreme Court). Forgetting his sacred mission as a sworn public servant and his exalted position as an officer of the court, Atty. Luison has allowed himself to become an instigator of controversy and a predator of conflict instead of a mediator for concord and a conciliator for compromise, a virtuoso of technicality in the conduct of litigation instead of a true exponent of the primacy of truth and moral justice.

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