MANILA BUILDING & LOAN ASSOCIATION, PLAINTIFF AND APPELLEE, VS. B. A. GREEN, DEFENDANT AND APPELLANT, S. W. O’BRIEN ET AL., DEFENDANTS AND APPELLEES.

For brevity, the two cases will be deemed consolidated and tried here as one, and this decision will apply to both appeals.

The amount of the judgment rendered in the Court of First Instance
of the Province of Rizal was P102,597.38, which was the first one
rendered, and the amount of the judgment in the Court of First Instance
of the City of Manila was P103,297.38, the difference representing
accumulated interest between the dates of the respective judgments.

The mortgage in favor of the Manila Building & Loan Association
expressly provides for an attorney’s fee of 10 per cent in the event of
suit or action to foreclose the mortgage. As stated, the total amount
of attorney’s fees allowed by the different courts was P7,500 as
against the fee of 10 per cent of the amount found due and owing, as
stipulated in the mortgage, which would be about P10,330. The defendant
Green admitted the execution of both the note and the mortgage and
never made any defense on the merits or as to the amount due and owing
on the note. In legal effect, he claims and asserts that the Building
& Loan Association is entitled to one attorney’s fee only, and that
it cannot recover attorney’s fees in both courts for the foreclosure of
the same mortgage. But upon that point it will be noted that the
mortgage covers real property lying in two different provinces, and
that to obtain and perfect the title under the practice here, it is
necessary to procure decrees in both courts, in the one for the real
property situate in the City of Manila, and in the other for the
property in the Province of Rizal, which means at least double work for
the attorneys.

After some discussion among the members of the court as to what,
under the circumstances, would be a reasonable attorney’s fee, the
court finally agreed that P7,000 should be allowed the Building &
Loan Association as attorney’s fees, for the foreclosure of its
mortgage lying in both provinces, with interest thereon at 6 per cent
per annum from the date of the filing of the second complaint, which
shall be deemed and treated as the full amount of all attorney’s fees
allowed by both lower courts. As to the attorney’s fees allowed in the
O’Brien et al. case, it appears that there is an express stipulation in
that mortgage for an attorney’s fee of P2,500 in the event of suit or
action to foreclose. The parties to the mortgage, having made that
stipulation, are bound by it, and for such reason the total amount of
attorney’s fees to be allowed for the foreclosure of that mortgage in
both courts must be confined and limited to P2,500, with interest
thereon at 6 per cent per annum from the date of the filing of the
answer in the first, case, and as to the defendants O’Brien et al., the
payment of the P2,500, with such interest, will operate as a full and
complete satisfaction of all attorney’s fees in both courts.

It is needless to say, that both the Manila Building & Loan
Association and S. W. O’Brien et al., are only entitled to one
satisfaction of their respective judgments, and that when the second
judgments rendered in the Court of First Instance of Manila are
satisfied in full, it shall operate as a complete satisfaction of both
judgments. That is to say, that when either party receives the full
amount which is due and owing on their respective notes, together with
such attorney’s fees, interest and costs, it shall operate as a full
and complete satisfaction of both judgments.

It follows that on the merits, the judgments in both courts in favor
of the Manila Building & Loan Association and the defendants,
O’Brien et al.. in all things and respects are affirmed, and the gross
amount of attorney’s fees allowed in both courts in favor of the
Building & Loan Association is modified and reduced to P7,000 and
such interest, and the attorney’s fees of P2,500 allowed in each case
in favor of O’Brien et al., is modified and reduced to P2,500 only, the
amount stipulated in the second mortgage, with such interest. Neither
party to recover costs on this appeal. So ordered.

Malcolm, Villamor, Ostrand, Romualdez and Villa-Real, JJ., concur.