BASIC LEGAL ETHICS (13)

1. What are parameters to be followed so that a lawyer’s fees are considered fair and
reasonable?

CANON 20 - A lawyer shall charge only fair and reasonable fees.

Rule 20.01-A lawyer shall be guided by the following factors in determining
his fees: [STIPSNACCC]
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;
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

NOTE: Generally, the amount of attorney’s fees due is that stipulated in the
retainer agreement which is conclusive as to the amount of lawyer’s
compensation (Funa, 2009) unless the stipulated amount in the written
contract is found by the court to be unconscionable or unreasonable. (Sec. 24,
Rule 138, RRC)

In the absence thereof, the amount of attorney’s fees is fixed on the basis of
quantum meruit. (Sesbreno v. Court of Appeals, G.R. No. 117438, June 8,
1995; Funa, 2009)

2. What is/are the difference/s between ordinary and extraordinary attorney’s fees?

Two Concepts of Attorney’s Fees

1. Ordinary Attorney’s Fee- it is the reasonable compensation paid to the

lawyer for the legal services he had rendered the client. The basis of this
compensation is the fact of employment by the client.

2. Extraordinary Attorney’s Fee- an indemnity for damages ordered by the

court to be paid by the losing party to the prevailing party in a litigation. The
basis of this is any of the cases authorized by law and is payable not to the
lawyer but to the client unless they have agreed that the award shall pertain
to the lawyer as additional compensation or as part thereof.

3. Discuss what is QUANTUM MERUIT. Cite at least five examples when lawyer’s fee will
be on quantum meruit basis.

Quantum Meruit− means as much as the lawyer deserves or such amount as his
services merit.
Determining Attorney’s Fees on Quantum Meruit Basis (TINS)
1. Time spent and extent of the services rendered or required – a lawyer is justified
in fixing higher fees when the case is so complicated and requires more time and
effort to finish it.

2. Novelty and difficulty of questions involved – when the questions in a case are
novel and difficult, greater effort, deeper study and research are bound to burn the
lawyer’s time and stamina considering that there are no local precedents to rely upon

3. Importance of subject matter − the more important the subject matter or the
bigger the value of the interest of property in litigation, the higher is the attorney’s
fees

4. Skill demanded of a lawyer − the totality of the lawyer’s experience provides him
the skill and competence admired in lawyers.

Instances of Recovery of Attorney’s Fees on the Basis of Quantum Meruit

1. There is no express contract for payment of attorney’s fees agreed upon between
the lawyer and the client.

2. When although there is a formal contract for attorney’s fees, the fees stipulated
are found unconscionable.

3. When the contract for attorney’s fees is void due to formal matter.

4. When for justifiable cause the lawyer was not able to finish the case.

5. When the lawyer and the client disregard the contract for fees.

6. When the client dismissed his counsel before the termination of the case or the
latter withdrew therefrom for valid reasons.