Compensation of Attorney

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COMPENSATION OF

ATTORNEY


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A. RIGHT TO ATTORNEYS FEES

Two Concepts of Attorneys Fees:

a. Reasonable compensation paid to a

lawyer by his client for the legal services

b. Amount of damages which the court may

reward to be paid by the losing party tothe prevailing party


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The compensation of a lawyer should

be a mere incident to the practice of

law, the primary purpose of which is to

render public service.


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A lawyer is as much entitled to judicialprotection against injustice, imposition orfraud on the part of his client as the client

against abuse on the part of his counsel.

The duty of the court is not alone to see that

a lawyer acts in a proper and lawful manner,it is also its duty to see that a lawyer is paidhis just fees.

Right to Protection of Counsel Fees


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1. Attorney-client relationship

2. Rendition by the lawyer of services to theclient

Requisites for Right to Accrue


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A written agreement is not necessary toestablish a clients obligation to payattorneys fees.

The clients obligation to pay attorneys feesarises from the inanimate contract offacio ut

des, which is based on the principle that noone shall unjustly enrich himself at theexpense of another.

Written Agreement


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-means as mush as the lawyer deserves or

such amount which his services merit

Quantum Meruit


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1. when there is no express contract forpayment of attorneys fees;

2. When although theres a formal contractfor attorneys fees, the fees stipulated arefound unconscionable or unreasonable bythe court;

3. When the contract of attorneys fees isvoid due to purely formal defects ofexecution;

Recovery of Attorneys Fees on the basis of Quantum

Meruit is authorized:


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4. When the lawyer, for justifiable cause,

was not able to finish the case to its

conclusion;5. When the lawyer and the client

disregarded the contract for attorneys fees;

6. When the client dismissed his counselbefore termination of the case or the latter

withdrew therefrom for valid reasons

Recovery of Attorneys Fees on the basis of Quantum

Meruit is authorized:


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General Rule:

the client who engaged the services of

counsel either personally or through anauthorized agent

Who is liable for Attorneys Fees:


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Exception:

Persons who accept the benefits of the legal

representation

Who is liable for Attorneys Fees:


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1. The lawyer who has been engaged by theclient

2. If more than one lawyer have beenemployed by a client:

General rule: lawyers who jointly represent acommon client for a given fee, in the

absence of an agreement as to thedivision of fees, share equally as they arespecial partners for a special purpose.

Who are entitle to or to share in attorneys fees:


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1. A non-lawyer cannot recover attorneys feeseven of there is a law authorizing him torepresent a litigant in court

2. A lawyer who is absolutely disqualifiedfrom engaging in the private practice of lawby reason of his government position

3. An executor or administrator is prohibited

from engaging the estate under hisadministration of his professional fees forservices rendered by him as a lawyer.

Restrictions to charge fees:


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-in the absence of a law allowing

compensation, the lawyer designated as

counsel de officio cannot charge thegovernment nor the indigent litigant for his

professional services.

Right of Counsel de Officio to fees


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a. Php 3050: light felonies

b. Php 51100: less grave felonies

c. Php 101200: grave felonies otherthan capital offenses

d. Php 201500: capital offenses

Rules of Court token of compensation for Counsel de

Officio:


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B. CONTRACT FOR ATTORNEYS FEES

Generally:

a. Oral or in writing

b. Absolute or contingent

c. Fee per appearance, per piece of work or

on hourly basis

d. Combination


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a. General/ Retainer fee

- Fee paid to a lawyer to secure his future

services as general counsel for any ordinarylegal problem that may arise in the routinary

business of the client and offered to him for

legal action.

Kinds of Retainer


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a. Special Retainer

- A fee for a specific case handled or special

service rendered by the lawyer for a client

Kinds of Retainer


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-is an agreement in writing in which the fee,

usually a fixed percentage of what may be

recovered in the action, is made to dependupon the success in the effort to enforce or

defend a supposed right.

Contingent Fee Contract


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-a contingent fee contract is generally valid

and binding, unless it is obtained by fraud,

imposition or suppression of facts, or the feeis so clearly excessive as to amount to an

extortion



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-a contingent fee contract is generally valid

and binding, unless it is obtained by fraud,

imposition or suppression of facts, or the feeis so clearly excessive as to amount to an

extortion



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C. MEASURE OF COMPENSATION

a. Amount fixed in valid contract

b. Amount based on Quantum Meruit


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a. Time spent and extent of services

rendered or requiredb. The novelty and difficulty of the

questions involved

c. The importance of the subject matterd. The skill demanded

Factors in determining the amount of fees which a

lawyer may charge his client:Rule 20.01 of Code


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e. The probability of losing other employmentas a result of acceptance of the proposed case

f. The customary charges for similar servicesand the schedule of fees of the IBP charter towhich he belongs

g. The amount involved in the controversy andthe benefits resulting to the client from theservice




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h. The contingency or certainty of

compensationi. The character of the employment,

whether occasional or established

j. The professional standing of the lawyer




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a. Actual purchasing power of the

Philippine pesob. Omission of fault of the lawyer on the

discharge of his duties

c. Loss of opportunity on the part of thelawyer for other employment

d. Financial capacity of the client

Other considerations:


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The legislature, in the exercise of its police

power, may by law prescribes the limits of

the amount of attorneys fees which a lawyermay charge his client.

Statutory limitations as to fees


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Article 111 Attorneys fees.

1.In cases of unlawful withholding of wages,the culpable party may be assessed attorneys

fees equivalent to ten percent of the amount ofwages recovered.

2.It shall be unlawful for any person to demand

or accept, in any judicial or administrativeproceedings for the recovery of wages,attorneys fees which exceed ten percent of theamount of wages recovered.

Labor Code


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Article 222 Appearances and Fees.

a. Non-lawyers may appear before the Commission or any Labor

Arbiter only:

1. If they represent themselves; or

2. If they represent their organization or members thereof.

b. No attorneys fees, negotiation fees or similar charges of any kind

arising from any collective bargaining agreement shall be imposed on

any individual member of the contracting union: Provided, However,

that attorneys fees may be charged against union funds in an amount to

be agreed upon by the parties.

Any contract, agreement or arrangement of any sort to the contrary shall

be null and void. (As amended by Presidential Decree No. 1691, May 1,

1980)

Labor Code


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Article 203 Prohibition

No agent, attorney or other person pursuing or in charge of the

preparation or filing of any claim for benefit under this Title shall

demand or charge for his services any fee, and any stipulation to thecontrary shall be null and void. The retention or deduction of any

amount from any benefit granted under this Title for the payment of fees

for such services is prohibited. Violation of any provision of this Article

shall be punished by a fine of not less than five hundred pesos nor more

than five thousand pesos, or imprisonment for not less than six monthsnor more than one year, or both, at the discretion of the court.

Labor Code


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Rule 20.03 of the Code

A lawyer shall not, without the full knowledge

and consent of the client, accept fee, reward, cost,

commission, interest, rebate of forwarding

allowance or other compensation whatsoever

related to the employment from anyone other thanthe client.

A lawyer shall not receive fee from another without

clients consent


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D. PROCEDURE TO RECOVER FEES

1. Lawyers application to pay his feesCanon 16, Rule 16.03 of the Code of Prof. Resp.

A lawyer may apply so much of the clients funds

that come into his possession as may be necessary

to satisfy his fees and disbursements, giving notice

promptly thereafter to his client


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2. Petition as incident of main action3. Independent civil action


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A lawyer can enforce his right to a reasonablecompensation for services rendered in an

independent civil action on cases where:

1. The court trying the main action in which thelawyers services were rendered dismissed the

clients action or awarded nothing to the client.

2. The court that decided the main litigation hadno jurisdiction over the action or had already

lost it


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3. The person liable for attorneys fees is not aparty in the main action

4. The court reserved to the lawyer the right to file

a separate civil suit for the recovery of his fees5. Other services for which the lawyer seeks

payment were rendered in connection with a

matter not in litigation


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6. The court rendered judgment in the case withoutrequiring payment for attorneys fees and the

judgment had become final.


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E. ATTORNEYS FEES AS DAMAGES

Attorneys fees in the concept of damaged are not

recoverable.

General Rule:


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1. When there is agreement

2. When exemplary damages are awarded

3. When defendants action or omission compelledplaintiff to litigate

4. In criminal cases of malicious prosecution

5. When the action is clearly unfounded6. When defendant acted in gross and evident bad

faith

Exception:


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7. In actions for support

8. In cases of recovery of wages

9. In action for indemnity under workmenscompensation and employees liability laws

10. In a separate civil action arising from a crime

11. When at least double costs are awarded12. When the court deems it just and equitable

13. When a special law so authorizes

Exception:

Documents

Compensation of Attorney