When's attorney's fee recoverable? Is it automatic?
Philphos claims attorney's fees under Article 2208 of the Civil Code which provides that attorney's fees may be granted where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiffs plainly valid, just and demandable claim. Suffice it to say the evidence does not bear out any gross and evident bad faith on the part of Kamalig.
As to the Court of Appeals award of attorney's fees to Kamalig, it appears that the award was granted under the auspices of Art. 2208, par. (4) of the Civil Code which provides that attorney's fees may be recovered in case of a clearly unfounded civil action or proceeding against the plaintiff or in this case, against then defendant Kamalig since the appellate court reasoned that Kamalig was compelled to hire the services of a lawyer to defend itself. In this case, over withdrawals of fertilizer products in Iloilo had been proven, showing that indeed there was cause for filing of a complaint against Kamalig. Kamalig is thus not entitled to attorney's fees. The general rule is that attorney's fees cannot be recovered as part of damages because no premium should be placed on the right to litigate. In short, the grant of attorney's fees as part of damages is the exception rather than the rule, and counsels fees are not awarded every time a party prevails in a suit. (G.R. No. 165608; December 13, 2007)
As to the Court of Appeals award of attorney's fees to Kamalig, it appears that the award was granted under the auspices of Art. 2208, par. (4) of the Civil Code which provides that attorney's fees may be recovered in case of a clearly unfounded civil action or proceeding against the plaintiff or in this case, against then defendant Kamalig since the appellate court reasoned that Kamalig was compelled to hire the services of a lawyer to defend itself. In this case, over withdrawals of fertilizer products in Iloilo had been proven, showing that indeed there was cause for filing of a complaint against Kamalig. Kamalig is thus not entitled to attorney's fees. The general rule is that attorney's fees cannot be recovered as part of damages because no premium should be placed on the right to litigate. In short, the grant of attorney's fees as part of damages is the exception rather than the rule, and counsels fees are not awarded every time a party prevails in a suit. (G.R. No. 165608; December 13, 2007)