Principal's remedy against erring agent includes nullifying judgment enforced against him

This ruling was adopted in Jacinto v. Montesa, by Mr. Justice J.B.L. Reyes, a much-respected authority on civil law, where the Court declared that a judgment based on a compromise entered into by an attorney without specific authority from the client is void. Such judgment may be impugned and its execution restrained in any proceeding by the party against whom it is sought to be enforced. The Court also observed that a defendant against whom a judgment based on a compromise is sought to be enforced may file a petition for certiorari to quash the execution. He could not move to have the compromise set aside and then appeal from the order of denial since he was not a party to the compromise. Thus it would appear that the obiter of the appellate court that the alleged nullity of the compromise agreement should be as a defense against its enforcement is not legally feasible. Petitioner could not be in a position to question the compromise agreement in the action to revive the compromise judgment since it was never privy to such agreement. Villamil-Estrada who signed the compromise agreement may have been the attorney-in-fact but she could not legally bind petitioner thereto as she was not entrusted with a special authority to sell the land, as required in Art. 1878, par. (5), of the Civil Code. [G.R. No. 114311. November 29, 1996]