Gentlemen:

Quoted hereunder, for your information, is a resolution of this Court dated JUL 5 2004.

G.R. No. 137680 (Concept Placement Resources, Inc. vs. Richard V. Funk.)

On February 6, 2004, we rendered a Decision in this case, the pertinent portions of which read:

"Significantly, in German Marine Agencies, Inc. vs. NLRC (G.R. No. 142049, January 30, 2001, 350 SCRA 629), we held that there must always be a factual basis for the award of attorney's fee. Here, since petitioner agreed to be represented by respondent as counsel in the labor case and to pay him his attorney's fee, it must abide with its agreement which has the force of law between them (Article 1308, Civil Code; Jespajo Realty Corporation vs. Court of Appeals, G.R. No. 113626, September 27, 2002, 390 SCRA 27).

"We observe, however, that respondent did not encounter difficulty in representing petitioner. The complaint against it was dismissed with prejudice. All that respondent did was to prepare the answer with counterclaim and possibly petitioner's position paper. Considering respondent's limited legal services and the case involved is not complicated, the award of P50.000.00 as attorney's fee is a bit excessive. In First Metro Investment Corporation vs. Este del Sol Mountain Reserve, Inc. (G.R. No. 141811, November 15, 2001, 369 SCRA 99), we ruled that courts are empowered to reduce the amount of attorney's fee if the same is iniquitous or unconscionable. Under the circumstances obtaining in this case, we consider the amount of P20,000.00 reasonable.

"WHEREFORE, the petition is GRANTED. The assailed Decision of the Court of Appeals is AFFIRMED with MODIFICATION in the sense that the award of P50,000.00 as attorney's fee to herein respondent is reduced to only P10,000.00. No costs.

"SO ORDERED."[1]

Subsequently, respondent filed a motion dated May 21, 2004[2] seeking a clarification on what should be the correct amount of the attorney's fee awarded to him.

Obviously, the P10,000.00 attorney's fee stated in the dispositive portion of our Decision is merely a clerical error. As stated in the body of our Decision, the attorney's fee awarded to him should be in the amount of P20,000.00.

ACCORDINGLY, the dispositive portion of our Decision is hereby amended to read as follows:

WHEREFORE, the petition is GRANTED. The assailed Decision of the Court of Appeals is AFFIRMED with MODIFICATION in the sense that the award of P50,000.00 as attorney's fee to herein respondent is reduced to only P20,000.00.

No costs.

SO ORDERED.

Very truly yours,

(Sgd.) JULIETA Y. CARREON

Clerk of Court