Between grand theft and a legal fee, there only stands a law degree.

------Anonymous

RULE 138 RULES OF COURT SECTION 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 to the importance of the subject matter of the controversy, the extent of the services rendered, and 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.

Cannon 20 on The Code of Professional Responsibility RULE 20.01 A lawyer shall charge only fair and reasonable fees"

Time Spent and Extent of the Services Rendered

Novelty and Difficulty of Questions Involved

Importance of Subject Matter

Skill Demanded of the Lawyer

GUIDELINES IN DETERMINING LAWYER'S FEES BASED ON CANON 20 RULE 20.01

Probability of Losing Other Employment

Contingency or Certainty of Compensation

Amount Involved in the Controversy and Benefits Resulting to the Client From the Service

Customary Charges For Similar Services and Schedule of Fees of IBP

Contingent fees A contract for a contingent fee, where sanctioned by law, should be reasonable under all the circumstances of the case including the risk and uncertainty of the compensation, but should always be subject to the supervision of a court, as to its reasonableness
CONTINGENCY FEE The amount of contingent fees agreed upon by the parties is subject to the stipulation that counsel will be paid for his legal services only if the suit or litigation prospers.

CANONS OF PROFESSIONAL ETHICS SECTION 13

G.R. No. 118746 September 7, 1995 ATTY. WILFREDO TAGANAS, vs. NLRC The financial capacity and economic status of the client have to be taken into account in fixing the reasonableness of the fee. Petitioner's contingent fee falls within the purview of Article 111 of the Labor Code. This article fixes the limit on the amount of attorney's fees which a lawyer, like petitioner, may recover in any judicial or administrative proceedings since the labor suit where he represented private respondents asked for the claim and recovery of wages.

Time Spent and Extent of the Services Rendered Professional Standing of the Lawyer
Character of Employment Whether Occasional or Established

Novelty and Difficulty of Questions Involved

Importance of Subject Matter

Skill Demanded of the Lawyer

GUIDELINES IN DETERMINING LAWYER'S FEES BASED ON CANON 20 RULE 20.01

Probability of Losing Other Employment

Contingency or Certainty of Compensation

Amount Involved in the Controversy and Benefits Resulting to the Client From the Service

Customary Charges For Similar Services and Schedule of Fees of IBP

1 3 10

CANON 20 RULE 20.01

GUIDELINES IN DETERMINING LAWYER'S FEES

RULE 138 SECTION 24

Fair And Reasonable Fees QUANTUM MERUIT

SECTION 13

"There is no hard and fast rule which will serve as guide in determining what is or what is not a reasonable fee. That must be determined from the facts of each case. The power to determine the reasonableness or the unconscionable character of a lawyer's fee is a matter falling within the regulatory prerogative of the Court". Dalisay vs. Mauricio A.C. No. 5655 (2005)

A champertous contract is defined as a contract between a stranger and a party to a lawsuit, whereby the stranger pursues the partys claim in consideration of receiving part or any of the proceeds recovered under the judgment; Blacks Dictionary

A.M. No. 1625 February 12, 1990 Bautista v Gonzales HELD: A lawyer may, in good faith, advance expenses of litigation, but subject to reimbursement. The agreement did not provide for reimbursement. The court has held such an arrangement champertous (illegal agreement in which a person with no previous interest in a lawsuit finances it with a view to sharing the disputed property in case of success). This agreement is against public policy. G.R. No. L-68838 March 11, 1991 Fabillo vs IAC Contract did not violate 1491 (prohibition on lawyers acquiring property of their clients, even at public auction, which are the object of litigation) as the prohibition applies only during the pendency of the litigation. Since this was a contingent fee, it is not covered by 1491 of the civil code. The CPR even provides that a lawyer may have lien over funds and property of his client and may apply so much thereof as may be necessary to satisfy his lawful fees.

Unconscionable attorney's fees are those which no man in his right senses would offer on one hand and no honest and fair man would accept. Attorney's fees are unconscionable if they affront one's senses of justice, decency or reasonableness. Legal Ethics 2009 ed Pineda p 342 citing 7 C.J.S. 1065

G.R. No. 152072 January 31, 2006 ROXAS vs DE ZUZUARREGUI, JR HELD: Attorneys fees are unconscionable if they are an affront to ones sense of justice and decency. It is thus within the power of the court to decide what is reasonable or not.

G.R. No. L-33493 August 18, 1988 KAPISANAN NG MANGGAGAWA SA MANILA RAILROAD CO.,vs.ATTY. GREGORIO FAJARDO & THE COURT OF INDUSTRIAL RELATIONS HELD: We hold that the 25% fee fixed by the Court of Industrial

Relations was excessive. Omnibus Rules Implementing the Labor Code fixes the attorney's fees in judicial and administrative proceedings at 10% of the amount awarded. This is the same percentage allowed by law to lawyers prosecuting workmen's compensation cases that reach the appellate court. Moreover, considering the low economic status of their clientele, the slice that labor lawyers should take from the avails of their clients' suit should not be too large as to leave the latter with only a pittance for themselves.

RULES OF COURT RULE 138 SECTION 24 Cannon 20 on The Code of Professional Responsibility and Section 13 of the canons of professional ethics
The doctrine of quantum meruit is a rule founded on equity to prevent unjust enrichment on the ground that it is unjust for a person to retain benefits without paying for it.

Quantum meruit means as much as the lawyer deserves or an amount

which is reasonable to equate the services rendered.

Attorneys fees based on quantum meruit find application when:

1. 2. There is no express agreement as to the payment of attorneys fees. There is a contract but the fee as found by the court is unconscionable or unreasonable.

3.
4.

When the lawyer, for just causes, was not able to finish the case, or withdrew for valid reasons.
When the client dismissed the counsel prior to the termination of the case.

C.A. No. 8977 March 22, 1946 TORIBIO P. PEREZ, plaintiff-appellee, vs. SCOTTISH UNION AND NATIONAL INSURANCE CO.,defendant. MIGUEL H. MITRE, appellant.

HELD: "The income of a lawyer is not a safe criterion of his professional ability. Many very good lawyers earn but small incomes while lawyers of inferior ability may prosper financially. Neither is the length of time a lawyer has practiced a reliable measure of his ability; his competency must be judged by the character of his work."

G.R. No. L-16349 January 31, 1964 IN RE TESTATE ESTATE OF DOA GABINA RAQUEL. HELD: The allowance of counsel fees in probate proceedings rests largely in the sound discretion of the court (probate) which should not be interfered with except for manifest abuse; but it may be modified by the reviewing court, when the fee allowed is inadequate or excessive.

Canon 20 Rule 20.02, Code of Professional Responsibility

" A lawyer shall, in cases of referral, with the consent of the client, be entitled to a division of fees in proportion to work performed and responsibility assumed.

In a Lawyer-Referral System, which helps clients locate lawyers competent to handle their specific problems, it is improper for the referring lawyer to ask for a fee for merely recommending another lawyer. Such practice is degrading to the legal profession.

Those lawyers proved themselves in court, and, as their good reputation grew, more and more cases were referred to them, providing stronger and larger cases and allowing them to be more selective, prohibition on referral fees would remove the incentive that, in turn, would encourage lawyers who are not the best suited for a particular claim to give it a shot and to try to litigate the case themselves to the detriment of the client.
New Jersey Rule of Professional Conduct 1.5(e): (e) Except as otherwise provided by the Court Rules, a division of fee between lawyers who are not in the same firm may be made only if: (1) the division is in proportion to the services performed by each lawyer, or, by written agreement with the client, each lawyer assumes joint responsibility for the representation; and (2) the client is notified of the fee division; and (3) the client consents to the participation of all the lawyers involved; and (4) the total fee is reasonable.

Canon 20 Rule 20.03, Code of Professional Responsibility A lawyer shall not, without the full knowledge and consent of the client, accept any fee, reward, costs, commission, interest, rebate or forwarding allowance or other compensation whatsoever related to his professional employment from anyone other than the client.

Canon 20 Rule 20.04, Code of Professional Responsibility A lawyer shall avoid controversies with clients concerning his compensation and shall resort to judicial action only to prevent imposition, injustice of fraud.

G.R. No. 155224 August 23, 2006 PINEDA vs DE JESUS HELD: The CPR advises lawyers to avoid controversies with clients concerning compensation and to resort to judicial action only to prevent imposition, injustice or fraud. Suits to collect fees should be avoided. In this case there was no justification for the additional legal fees. They were just being greedy. Award of additional fees deleted.

When proper, a lawyer may pursue judicial actions to protect or collect money due to him. There are two options available to a lawyer:

1. In the same proceeding by filing an appropriate motion or petition as an incident to the main action where he rendered legal services.
2. In a separate Civil action

There should never be a instance where a lawyer acquires all the property in litigation. A lawyer must never take more than the client. It just violates some gut level instinct for the lawyer to get more money than the client out of a settlement. At the time of closing, the lawyer must explain to the client that they have the right to challenge the attorney's fee as excessive. After all, the contract with the client is only enforceable if it is reasonable and the lawyer should tell the client so.

Discourage litigation. Persuade your neighbors to compromise whenever you can. As a peacemaker the lawyer has superior opportunity of being a good man. There will still be business enough. Abraham Lincoln

It is unfair to believe everything we hear about lawyers. Some of it might not be true. Gerald F. Lieberman

Make crime pay. Become a lawyer.

Will Rogers