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and
Compensation for
legal services
(a) the time spent and the extent of the service rendered or
required;
(b) the novelty and difficulty of the questions involved;
(c) The importance of the subject matter;
(d) The skill demanded;
(e) The probability of losing other employment as a result of
acceptance of the proffered case;
Cont
(f) The customary charges for similar services and the schedule of
fees of the IBP chapter to which he belongs;
(g) The amount involved in the controversy and the benefits
resulting to the client from the service;
(h) The contingency or certainty of compensation;
(i) The character of the employment, whether occasional or
established; and
(j) The professional standing of the lawyer.
Cont
Rule 138
Sec. 24. Compensation of attorneys; agreement as to fees. - An
attorney shall be entitled to have and recover from his client no
more than a reasonable compensation for his services, with a
view:
1) to the importance of the subject matter of the controversy,
2) the extent of the services rendered, and
3) the professional standing of the attorney.
No court shall be bound by the opinion of attorneys as expert
witnesses as to the proper compensation, but may disregard
such testimony and base its conclusion on its own professional
knowledge. A written contract for services shall control the
amount to be paid therefor unless found by the court to be
unconscionable or unreasonable.
Cont
Cont
Rule 16.04 - A lawyer shall not borrow money from his client unless
the client's interest are fully protected by the nature of the case or
by independent advice. Neither shall a lawyer lend money to a
client except, when in the interest of justice, he has to advance
necessary expenses in a legal matter he is handling for the client.
10
Non-payment of loan is a
violation of PCR not
misappropriation or embezzlement
11
It appears from the record that on July 31, 1921, the respondents
by means of a written contract, retained the petitioner to represent
them as their lawyer. The contract fixed the petitioner's fee at P200
in advance with an additional contigent fee of P1,300. It was also
provided in the contract that respondent should not compromise
the claim against the defendant in the case without express
consent of his lawyer.
13
We have recently held that a client has always the right to settle his
cause of action and stop litigation at any stage of the proceeding,
subject, however, to the right of the attorney to receive
compensation for services rendered. - Aro v. The Hon. Naawa, G.R.
No. L-24163 [1969]
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15
While We here reaffirm the rule that "the client has an undoubted right to
compromise a suit without the intervention of his lawyer", We hold that
when such compromise is entered into in fraud of the lawyer, with
intent to deprive him of the fees justly due him, the compromise must
be subject to the said fees, and that when it is evident that the said fraud is
committed in confabulation with the adverse party who had knowledge of
the lawyer's contingent interest or such interest appears of record and
who would benefit under such compromise, the better practice is to
settle the matter of the attorney's fees in the same proceeding, after
hearing all the affected parties and without prejudice to the finality of the
compromise in so far as it does not adversely affect the rights of the
lawyer.
lawyer - Aro v. The Hon. Naawa, G.R. No. L-24163 [1969]
16
Quantum meruit
17
2 purposes of application
Quantum meruit
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21
Champertous contract
"1. On all commission or attorneys fees that we shall receive from our
clients by virtue of the collection that we shall be able to effect on their
accounts, we shall divide fifty-fifty. Likewise you are entitled to
commission, 50/50 from domestic, inheritance and commercial from
our said clients or in any criminal cases where they are involved.
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23
Funding litigation
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25
Retaining lien
Rule 138 Sec. 37. Attorney's liens. An attorney shall have a lien upon the
funds, documents and papers of his client, which have lawfully come
into his possession and may retain the same until his lawful fees and
disbursements have been paid, and may apply such funds to the
satisfaction thereof. He shall also have a lien to the same extent upon all
judgments for the payment of money, and executions issued in pursuance
of such judgments, which he has secured in a litigation of his client, from
and after the time when he shall have caused a statement of his claim of
such lien to be entered upon the records of the court rendering such
judgment, or issuing such execution, and shall have caused written notice
thereof to be delivered to his client and to the adverse party; and he shall
have the same right and power over such judgments and executions as his
client would have to enforce his lien and secure the payment of his just fees
and disbursements."
26
Charging lien
Rule 138 Section 37. xxx He shall also have a lien to the same extent
upon all judgments for the payment of money, and
executions issued in pursuance of such judgments, which he
has secured in a litigation of his client, from and after the time
when he shall have caused a statement of his claim of such lien to
be entered upon the records of the court rendering such judgment,
or issuing such execution, and shall have caused written notice
thereof to be delivered to his client and to the adverse party; and
he shall have the same right and power over such judgments and
executions as his client would have to enforce his lien and secure
the payment of his just fees and disbursements."
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28
29
30
We have noted in the beginning that the services here were rendered in a
case of an administrative nature. But that does not alter the
application of the proper rule:
31
The absence of a written contract will not preclude the finding that
there was a professional relationship which merits attorney's fees
for professional services rendered. Documentary formalism is not
an essential element in the employment of an attorney; the
contract may be express or implied. To establish the relation, it is
sufficient that the advice and assistance of an attorney is
sought and received in any matter pertinent to his
profession. An acceptance of the relation is implied on the part of
the attorney from his acting on behalf of his client in pursuance of
a request from the latter. - Dee vs. Court of Appeals, G.R. No.
77439, August 24, 1989
32
A lawyer may enforce his right to his fees by filing the necessary
petition as an incident of the main action in which his services
were rendered or in an independent suit against his client. The
former is preferable to avoid multiplicity of suits. - Pineda v. Atty.
De Jesus, et. al. G.R. No. 155224 August 23, 2006
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34
35
36
The contract of services did not violate said provision of law. Article 1491 of the Civil
Code, specifically paragraph 5 thereof, prohibits lawyers from acquiring by
purchase even at a public or judicial auction, properties and rights which are the
objects of litigation in which they may take part by virtue of their profession. The
said prohibition, however, applies only if the sale or assignment of the property
takes place during the pendency of the litigation involving the client's property.
Hence, a contract between a lawyer and his client stipulating a contingent fee is
not covered by said prohibition under Article 1491 (5) of the Civil Code
because the payment of said fee is not made during the pendency of the litigation
but only after judgment has been rendered in the case handled by the lawyer. In
fact, under the 1988 Code of Professional Responsibility, a lawyer may have a lien
over funds and property of his client and may apply so much thereof as may be
necessary to satisfy his lawful fees and disbursements. - Fabillo and Tana v. IAC
G.R. No. L-68838 [1991]
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38
39
Rule 9.02 - A lawyer shall not divide or stipulate to divide a fee for
legal services with persons not licensed to practice law, except:
(a) Where there is a pre-existing agreement with a partner or
associate that, upon the latter's death, money shall be paid over a
reasonable period of time to his estate or to persons specified in
the agreement; or
(b) Where a lawyer undertakes to complete unfinished legal
business of a deceased lawyer; or
(c) Where a lawyer or law firm includes non-lawyer employees in a
retirement plan even if the plan is based in whole or in part, on a
profit sharing agreement.
40
41
42
Case law
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44
Decision
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46
I, do solemnly swear that xxx I will delay no man for money xxx.
47
Establishment of lawyer-client
relationship not influenced by personal
affiliation
48
49
Duty of accounting
50
Change of attorney
51
Withdrawal of counsel
52
53
54
The client and his lawyer may enter into a written contract
whereby the latter would be paid attorneys fees only if the suit
or litigation ends favorably to the client. This is called a
contingency fee contract. The amount of attorneys fees in this
contract may be on a percentage basis, and a much higher
compensation is allowed in consideration of the risk that the
lawyer may get nothing if the suit fails.
In the case at bar, the non-EPIRA separated members and
petitioner voluntarily entered into a contingency fee contract
whereby petitioner did not receive any acceptance fee or
appearance/meeting fee. - Atty. Orocio v. Angulan et. al., G.R. No.
179892-93 [2009]
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Under Section 24, Rule 138 of the Rules of Court, a written contract
for services shall control the amount to be paid therefor unless
found by the court to be unconscionable or unreasonable.
. It follows that a lawyers compensation for professional services
rendered is subject to the supervision of the court, not just to
guarantee that the fees he charges and receives remain
reasonable and commensurate with the services rendered, but also
to maintain the dignity and integrity of the legal profession to
which he belongs. Upon taking his attorneys oath as an officer of
the court, a lawyer submits himself to the authority of the
courts to regulate his right to charge professional fees . - Atty.
Orocio v. Angulan et. al., G.R. No. 179892-93 [2009]
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