Orocio v.

Anguluan
G.R. No. 179892-93 30 January 2009
J. Chico-Nazario
Facts:
NAPOCOR Board of Directors passed a resolution granting a monthly welfare
allowance equivalent to 10% of an employees basic pay to all NAPOCOR employees
effective 01 October 1978 through the NAPOCOR Welfare Fund. Two decades later,
Congress passed the Energy Industry Reform Act (EPIRA). As part of the
reorganization brought about by the law, the NAPOCOR welfare fund was
subsequently abolished effective 26 June 2001. This led to the dissolution and
liquidation of the said fund. Respondent Edmund Anguluan, ex officio chair of the
NAPOCOR Welfare Fund Board of Trustees (NWFBT) implemented the release of P
184 million only to EPIRA separated members excluding NAPOCOR employees who
have resigned, retired or separated prior to the effectivity of EPIRA (non-EPIRA
separated members). Perla Segovia, on behalf of 559 non-EPIRA separated
members filed a petition for mandamus with the Quezon City RTC against
NAPOCOR, Anguluan and others. Segovia and the other non EPIRA separated
members were represented by petitioner Atty. Victoriano Orocio under a legal
retainer agreement, which stipulated, among others, that Atty. Orocio will be paid
15% of whatever amounts or value of assets to be recovered.
The parties, through the assistance of their respective clients, later on
executed a compromise agreement which both EPIRA and non-EPIRA separated
members are entitled to earning differentials, which was subsequently filed and
approved by the RTC. The petitioner filed with the RTC a motion for approval of
charging lien, which was also granted. Respondents opposed the motion on the
ground that there was no stipulation in the Compromise Agreement to the effect
that the petitioner is entitled to collect 15% of the monies due non-EPIRa separated
members. This was denied by the RTC, but was subsequently overturned by the CA.
Held:
CAs decision is overturned. Atty. Orocio should be paid 15% of the earning
differential due his client, the non-EPIRA separated members. This was clearly
stipulated in the legal retainer agreement signed with Orocio.