COMPENSATION OF ATTORNEY

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 to the prevailing party

A. RIGHT TO ATTORNEYS FEES

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.

A. RIGHT TO ATTORNEYS FEES

Right to Protection of Counsel Fees A lawyer is as much entitled to judicial protection against injustice, imposition or fraud 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 paid his just fees.

A. RIGHT TO ATTORNEYS FEES

Requisites for Right to Accrue 1. Attorney-client relationship 2. Rendition by the lawyer of services to the client

A. RIGHT TO ATTORNEYS FEES

Written Agreement A written agreement is not necessary to establish a clients obligation to pay attorneys fees. The clients obligation to pay attorneys fees arises from the inanimate contract of facio ut des, which is based on the principle that no one shall unjustly enrich himself at the expense of another.

A. RIGHT TO ATTORNEYS FEES

Quantum Meruit -means as mush as the lawyer deserves or such amount which his services merit

A. RIGHT TO ATTORNEYS FEES

Recovery of Attorneys Fees on the basis of Quantum Meruit is authorized:

1. when there is no express contract for payment of attorneys fees; 2. When although theres a formal contract for attorneys fees, the fees stipulated are found unconscionable or unreasonable by the court; 3. When the contract of attorneys fees is void due to purely formal defects of execution;

A. RIGHT TO ATTORNEYS FEES

Recovery of Attorneys Fees on the basis of Quantum Meruit is authorized:

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 counsel before termination of the case or the latter withdrew therefrom for valid reasons

A. RIGHT TO ATTORNEYS FEES

Who is liable for Attorneys Fees:

General Rule: the client who engaged the services of counsel either personally or through an authorized agent

A. RIGHT TO ATTORNEYS FEES

Who is liable for Attorneys Fees:

Exception: Persons who accept the benefits of the legal representation

A. RIGHT TO ATTORNEYS FEES

Who are entitle to or to share in attorneys fees:

1. The lawyer who has been engaged by the client 2. If more than one lawyer have been employed by a client: General rule: lawyers who jointly represent a common client for a given fee, in the absence of an agreement as to the division of fees, share equally as they are special partners for a special purpose.

A. RIGHT TO ATTORNEYS FEES

Restrictions to charge fees:

1. A non-lawyer cannot recover attorneys fees even of there is a law authorizing him to represent a litigant in court 2. A lawyer who is absolutely disqualified from engaging in the private practice of law by reason of his government position 3. An executor or administrator is prohibited from engaging the estate under his administration of his professional fees for services rendered by him as a lawyer.

A. RIGHT TO ATTORNEYS FEES

Right of Counsel de Officio to fees

-in the absence of a law allowing compensation, the lawyer designated as counsel de officio cannot charge the government nor the indigent litigant for his professional services.

A. RIGHT TO ATTORNEYS FEES

Rules of Court token of compensation for Counsel de Officio:

a. Php 30 50: b. Php 51 100: c. Php 101 200:

d. Php 201 500:

light felonies less grave felonies grave felonies other than capital offenses capital offenses

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

B. CONTRACT FOR ATTORNEYS FEES

Kinds of Retainer

a. General/ Retainer fee - Fee paid to a lawyer to secure his future services as general counsel for any ordinary legal problem that may arise in the routinary business of the client and offered to him for legal action.

B. CONTRACT FOR ATTORNEYS FEES

Kinds of Retainer

a. Special Retainer - A fee for a specific case handled or special service rendered by the lawyer for a client

B. CONTRACT FOR ATTORNEYS FEES

Contingent Fee Contract

-is an agreement in writing in which the fee, usually a fixed percentage of what may be recovered in the action, is made to depend upon the success in the effort to enforce or defend a supposed right.

B. CONTRACT FOR ATTORNEYS FEES

Contingent Fee Contract

-a contingent fee contract is generally valid and binding, unless it is obtained by fraud, imposition or suppression of facts, or the fee is so clearly excessive as to amount to an extortion

B. CONTRACT FOR ATTORNEYS FEES

Contingent Fee Contract

-a contingent fee contract is generally valid and binding, unless it is obtained by fraud, imposition or suppression of facts, or the fee is so clearly excessive as to amount to an extortion

C. MEASURE OF COMPENSATION

a. Amount fixed in valid contract b. Amount based on Quantum Meruit

C. MEASURE OF COMPENSATION
Factors in determining the amount of fees which a lawyer may charge his client: Rule 20.01 of Code

a. Time spent and extent of services rendered or required b. The novelty and difficulty of the questions involved c. The importance of the subject matter d. The skill demanded

C. MEASURE OF COMPENSATION
Factors in determining the amount of fees which a lawyer may charge his client: Rule 20.01 of Code

e. The probability of losing other employment as a result of acceptance of the proposed case f. The customary charges for similar services and the schedule of fees of the IBP charter to which he belongs g. The amount involved in the controversy and the benefits resulting to the client from the service

C. MEASURE OF COMPENSATION
Factors in determining the amount of fees which a lawyer may charge his client: Rule 20.01 of Code

h. The contingency or certainty of compensation i. The character of the employment, whether occasional or established j. The professional standing of the lawyer

C. MEASURE OF COMPENSATION
Other considerations:

a. Actual purchasing power of the Philippine peso b. Omission of fault of the lawyer on the discharge of his duties c. Loss of opportunity on the part of the lawyer for other employment d. Financial capacity of the client

C. MEASURE OF COMPENSATION
Statutory limitations as to fees

The legislature, in the exercise of its police power, may by law prescribes the limits of the amount of attorneys fees which a lawyer may charge his client.

C. MEASURE OF COMPENSATION
Labor Code

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 of wages recovered. 2.It shall be unlawful for any person to demand or accept, in any judicial or administrative proceedings for the recovery of wages, attorneys fees which exceed ten percent of the amount of wages recovered.

C. MEASURE OF COMPENSATION
Labor Code
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)

C. MEASURE OF COMPENSATION
Labor Code
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 the contrary 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 months nor more than one year, or both, at the discretion of the court.

C. MEASURE OF COMPENSATION
A lawyer shall not receive fee from another without clients consent

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 than the client.

D. PROCEDURE TO RECOVER FEES

1. Lawyers application to pay his fees Canon 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

D. PROCEDURE TO RECOVER FEES

2. Petition as incident of main action 3. Independent civil action

D. PROCEDURE TO RECOVER FEES

A lawyer can enforce his right to a reasonable compensation for services rendered in an independent civil action on cases where: 1. The court trying the main action in which the lawyers services were rendered dismissed the clients action or awarded nothing to the client. 2. The court that decided the main litigation had no jurisdiction over the action or had already lost it

D. PROCEDURE TO RECOVER FEES

A lawyer can enforce his right to a reasonable compensation for services rendered in an independent civil action on cases where: 3. The person liable for attorneys fees is not a party in the main action 4. The court reserved to the lawyer the right to file a separate civil suit for the recovery of his fees 5. Other services for which the lawyer seeks payment were rendered in connection with a matter not in litigation

D. PROCEDURE TO RECOVER FEES

A lawyer can enforce his right to a reasonable compensation for services rendered in an independent civil action on cases where: 6. The court rendered judgment in the case without requiring payment for attorneys fees and the judgment had become final.

E. ATTORNEYS FEES AS DAMAGES

General Rule:

Attorneys fees in the concept of damaged are not recoverable.

E. ATTORNEYS FEES AS DAMAGES

Exception:

1. When there is agreement 2. When exemplary damages are awarded 3. When defendants action or omission compelled plaintiff to litigate 4. In criminal cases of malicious prosecution 5. When the action is clearly unfounded 6. When defendant acted in gross and evident bad faith

E. ATTORNEYS FEES AS DAMAGES

Exception:

7. In actions for support 8. In cases of recovery of wages 9. In action for indemnity under workmens compensation and employees liability laws 10. In a separate civil action arising from a crime 11. When at least double costs are awarded 12. When the court deems it just and equitable 13. When a special law so authorizes