G.R. No. L-62169 February 28, 1983 MINDANAO PORTLAND CEMENT CORPORAT CORPORATION, ION, petitioner, vs. CORT OF APPEAL!, PAC"ELD !TEEL CORPORATION a#$ ATT%. CA!IANO P. LA&I'ON respondents.
Po#e#(e) Teehankee, J. To*+) E. Modes of Extinguishment of Obligations, 5. Compensation Compensation
Fa() 1. On Januar !, 1"#$, one %tt. Casiano &. &. 'a(uihon, in behalf of third)part defendant &a*+eld teel Corporation -&a*+eld for short as the latter/s attorne. 0 filed a pleading addressed to the defendant defendant Third)&art &laintiff &laintiff Mindanao &ortland Cement Cement Corporation -M&CC for short, herein appellant 0 entitled /motion to dire*t pament pament of attorne/s fee fee to *ounsel/ -himself , 0 invoking in his motion the fa*t that in the de*ision of the the *ourt of ept. 12, 1"#3 0 in +hi*h M&CC +as ad4udged to pa pa &a*+eld the sum of &1,. &1,. as attorne/s fees fees
6. On Mar*h 12, 1"#$, M&CC filed an opposition to %tt. %tt. 'a(uihon/s motion, 0 stating, as grounds therefor, that said amount is set)off b a like sum of &1,. +hi*h M&CC has *olle*tible in its favor from &a*+eld also b +a of attorne/s fees 0 +hi*h M&CC re*overed from the same C78 in Civil Case 9o. 3$!23, entitled &a*+eld teel Corporation, et al. +rit of exe*ution to this e ffe*t having been issued b said *ourt.
!. On June 63, 1"#$ the *ourt issued issued the order appealed from and despite M&CC:s motion for for re*onsideration of said order, *iting the la+ appli*able and C de*isions, denied the same in its order of %ugust 6$, 1"#$, also sub4e*t matter of this appeal.
2. The +rit of exe*ution referred to above +hi*h M&CC has invoked to set) off the amount sought to be *olle*ted b &a*+eld through the latter/s la+er, %tt. Casiano &. 'a(uihon, is hereunder (uoted in full. 0 8n his brief, appellee *omments that the statements in appellant/s brief are /substantiall *orre*t,/ as follo+s; T%TEME9T O7 T dated June 63, 1"#$ ordering the appellant -M89?%9%O &O@T'%9? CEME9T CO@&O@%T8O9 to pa the amount of &1,. attorne/s fees dire*tl to %tt. Casiano =. 'a(uihon -@e*ord on %ppeal, pp. 62)65 and from the Order dated %ugust 6$, 1"#$ dening appellant/s motion for re*onsideration -@e*ord on %ppeal, p. !#. There +as no trial or submission of do*umentar eviden*e. %gainst the orders of June 63. 1"#$, and %ugust 6$, 1"#$, appellant has brought this appeal to this Court, *ontending that; The lo+er *ourt erred in not holding that the t+o obligations are extinguished re*ipro*all b operation of la+./ -p. 3, %ppellant/s =rief This appeal *alls for the appli*ation of %rts. 16#$, 16#" and 16" of the Civil Code, as urged b the appellant. %nother (uestion is; The 4udgment in Civil Case 9o. #51#" being alread final at the time the motion under *onsideration +as filed, does not the order of June 63, 1"#3 *onstitute a *hange or alteration of the said 4udgment, though issued b the ver same *ourt that rendered the 4udgmentA B
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%fter *onsidering the briefs of the parties in the appellate *ourt and the additional pleadings re(uired of them b this Court, the Co urt finds merit in the appeal and sets aside the appealed orders of June 63 and %ugust 6$, 1"#$ of the Court of 7irst 8nstan*e -no+ @egional Trial Court of Manila, =ran*h >>.
8t is *lear from the re*ord that both *orporations, petitioner Mindanao &ortland Cement Corporation -appellant and respondent &a*+eld teel Corporation -appellee, +ere re$+(or a#$ $eb(or o/ ea0 o(0er , their debts to ea*h other *onsisting in final and exe*utor 4udgments of the Court of 7irst 8nstan*e in t+o -6 separate *ases, ordering the pament to ea*h other of the sum of &1,. b +a of attorne/s fees. The t+o -6 obligations, therefore, respe*tivel o//e( ea0 o(0er, o*e#a(+o# 0a+# (a4e# e//e( by o*era(+o# o/ a5 a#$ e(+#u+0e$ bo(0 $eb( to the *on*urrent amount of &1,., pursuant to the provisions of %rts. 16#$, 16#" and 16" of the Civil Code, sin*e all the re(uisites provided in %rt. 16#" of the said Code for au tomati* *ompensation even though the *reditors and debtors are not a+are of the *ompensation +ere dul present.DD
9e*essaril, the appealed order of June 63, 1"#$ granting %tt. 'a(uihon/s motion for amendment of the 4udgment of eptember 12, 1"#3 against Mindanao &ortland Cement Corporation so as to make the a+ard therein of &1,. as attorne/s fees paable dire*tl to hi mself as *ounsel of &a*+eld teel Corporation instead of p aable dire*tl to said *orporation as provided in the 4udgment, +hi*h had be*ome final and exe*utor long before the issuan*e of said amendator order +as a void alteration of 4udgment. 8t +as a substantial *hange or amendment beond the trial *ourt/s 4urisdi*tion and authorit and it *ould not defeat the *ompensation or set)off of the t+o -6 obligations of the *orporations to ea*h other +hi*h had alread extinguished both debts b operation of la+.
%CCO@?89'F. the appealed orders are hereb annulled and set aside. 9o *osts.
