Professional Documents
Culture Documents
CANON 15 – A lawyer shall observe candor, fairness and loyalty in all his dealings and
transactions with his client.
Rule 15.01 – A lawyer in conferring with a prospective client, shall ascertain as soon as
practicable whether the matter would involve a conflict with another client or his own
interest, and if so, shall forthwith inform the prospective client.
Rule 15.02 – A lawyer shall be bound by the rule on privilege communication in respect of
matters disclosed to him by a prospective client.
Rule on Revealing Client’s Identity
General Rule: A lawyer may not invoke privilege communication to refuse revealing a
client’s identity. (Regala vs. Sandiganbayan, 262 SCRA 122, September 20, 1996)
Exceptions:
1. When by divulging such identity, it would implicate the client to that same controversy
for which the lawyer’s services were required.
2. It would open client to civil liability
3. The disclosure of such identity will provide for the only link in order to convict the
accused, otherwise, the government has no case.
Rule 15.03 – A lawyer shall not represent conflicting interests except by written consent of all
concerned given after a full disclosure of the facts.
CANON 16 – A lawyer shall hold in trust all moneys and properties of his client that may come
into his possession.
Rule 16.01 – A lawyer shall account for all money or property collected or received for or from
the client.
Rule 16.02 – A lawyer shall keep the funds of each client separate and apart from his own and
those of others kept by him.
Rule 16.03 – A lawyer shall deliver the funds and property of his client when due or upon
demand. However, he shall have a lien over the funds and may apply so much thereof as may
be necessary to satisfy his lawful fees and disbursements, giving notice promptly thereafter to
his client. He shall also have a lien to the same extent on all judgments and executions he has
secured for his client as provided for the Rules of Court.
Attorneys’ 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 finds to the satisfaction thereof. He
shall also have a lien to the same extent upon all judgements for the payment of money, and
executions issued in pursuance of such judgements 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 judgement, 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 fees and disbursements. (Sec,
37, Rule 138, RRC)
Rule 16.04 – A lawyer shall not borrow money from his client unless the client’s interests 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 the legal matter he is handling for the client.
Attorney’s lien is not an excuse for non-rendition of accounting
Cannot disburse client’s money to client’s creditors without authority.
Failure to deliver upon demand gives rise to the presumption that he has
misappropriated the funds for his own use to the prejudice of the client and in violation
of the trust reposed in him.
Notify client if retaining lien shall be implemented
When a lawyer enforces a charging lien against his client, the client-lawyer relationship
is terminated.
The principle behind Rule 16.04 is to prevent the lawyer from taking advantage of his
influence over the client or to avoid acquiring a financial interest in the outcome of the
case.
CANON 17 – A lawyer owes fidelity to the cause of his client and he shall be mindful of the
trust and confidence reposed in him.
No fear of judicial disfavor or public popularity should restrain him from full discharge of
his duty.
It is the duty of the lawyer at the time of retainer to disclose to the client all the
circumstances of his relations to the parties and any interest in, or connection with, the
controversy which might influence the client in the selection of counsel.
The lawyer owes loyalty to his client even after the relation of attorney and client has
terminated. It is not good practice to permit him afterwards to defend in another case
other persons against his former client under the pretext that the case is distinct from
and independent of the former case.
CANON 18 – A lawyer shall serve his client with competence and diligence.
Rule 18.01 – A lawyer shall not undertake a legal service which he knows or should know that
he is not qualified to render. However, he may render such service if, with the consent of his
client, he can obtain as collaborating counsel a lawyer who is competent on the matter.
Rule 18.02 – A lawyer shall not handle any legal matter without adequate preparation.
Rule 18.03 – A lawyer shall not neglect a legal matter entrusted to him and his negligence in
connection therewith shall render him liable.
Rule 18.04 – A lawyer shall keep the client informed of the status of his case and shall respond
within a reasonable time to the client’s request for information.
Competence: sufficiency of lawyer’s qualification to deal with the matter in question
and includes knowledge and skill and the ability to use them effectively in the interest
of the client.
A lawyer must keep himself constantly abreast with the trend of authoritative
pronouncements and developments in all branches of law.
There must be extraordinary diligence in prosecution or defense of his client’s cause.
If a lawyer errs like any other human being, he is not answerable for every error or
mistake, and will be protected as long as he acts honestly and in good faith to the best
of his skill and knowledge.
Lawyer is not an insurer of the result in a case where he is engaged in the counsel.
CANON 19 – A lawyer shall represent his client with zeal within the bounds of the law.
Rule 19.01 – A lawyer shall employ only fair and honest means to attain the lawful objectives
of his client and shall not present, participate in presenting or threaten to present unfounded
criminal charges to obtain an improper advantage in any case or proceeding.
Rule 19.02 – A lawyer who has received information that his client has, in the course of the
representation, perpetuated a fraud upon a person or tribunal, shall promptly call upon the
client to rectify the same, and failing which he ha to terminate the relationship with such
client in accordance with the Rules of Court.
Rule 19.03 – A lawyer shall not allow his client to dictate the procedure in handling the case.
General Rule: Negligence binds client
Exception: Reckless imprudence (deprives client of due process)
Must not present in evidence any document known to be false; nor present a false
witness.
Negative pregnant is improper since it is an ambiguous pleading (improper if in bad faith
and the purpose is to confuse the other party)
In defense: present every defense the law permits.
Lawyer should do his best efforts to restrain and to prevent his clients from perpetrating
acts which he himself ought not to do. Or else, withdraw. But lawyer shall not volunteer
the information about the client’s commission of fraud to anyone – counter to duty to
maintain client’s confidence and secrets.
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:
a. The time spent and the extent of the services 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 services;
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.
Kinds of Payment which may be stipulated upon:
1. a fixed or absolute fee which is payable regardless of the result of the case
2. a contingent fee that is conditioned to the securing of a favorable judgment and
recovery of money or property and the amount of which may be on a percentage basis
3. a fixed fee payable per appearance
4. a fixed fee computed by the number of hours spent
5. a fixed fee based on a piece of work
Attorney’s Fees
1. Ordinary attorney’s fee -the reasonable compensation paid to a lawyer by his client for
the legal services he has rendered to the latter. The basis for this compensation is the
fact of his employment by and his agreement with the client.
2. Extraordinary attorney’s fee – an indemnity for damages ordered by the court to be paid
by the losing party in litigation. The basis for this is any of the cases provided for by law
where such award can be made, such as those authorized in Article 2208 of the Civil
Code, 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.
How attorney’s fees may be claimed by the lawyer:
1. It may be asserted either in the very action in which the services of a lawyer had been
rendered or in a separate action.
2. A petition for attorney’s fees may be filed before the judgment in favor of the client is
satisfied or the proceeds thereof delivered to the client.
3. The determination as to the propriety of the fees or as to the amount thereof will have
to be held in abeyance until the main case from which the lawyer’s claim for attorney’s
fees may arise has become final. Otherwise, the determination of the courts will be
premature.
Kinds of Retainer Agreements on Attorney’s fees:
1. General Retainer or Retaining Fee – it is the fee paid to a lawyer to secure his future
services as general counsel for any ordinary legal problem that may arise in the ordinary
business of the client and referred to him for legal action;
2. Special Retainer – that is a fee for a specific case or service rendered by the lawyer for
a client
Quantum Meruit –it means “as much as he deserves”, and is used as the basis for
determining the lawyer’s professional fees in the absence of a contract, but recoverable
by him from his client.
Quantum Meruit is resorted to where:
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 stipulated fees are
found unconscionable or unreasonable by the court.
3. When the contract for attorney’s fees is void due to purely formal matters or defects of
execution
4. When the counsel, for justifiable cause, was not able to finish the case to its conclusion
5. When lawyer and client disregard the contract for attorney’s fees.
Skill: length of practice is not a safe criterion of professional ability.
Rule 20.02 – A lawyer shall, in cases of referral, with the consent of the client, be entitled to
a division of fees in proportion to the work performed and responsibility assumed.
Rule 20.03 – 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.
Rule 20.04 – A lawyer shall avoid controversies with clients concerning his compensation and
shall resort to judicial action only to prevent imposition, injustice or fraud.
Unauthorized counsel: Not entitled to attorney’s fees.
Stipulation regarding payments of attorney’s fees is not illegal/immoral and is
enforceable as the law between the parties provided such stipulation does not
contravene law, good morals, etc.
When counsel cannot recover full amount despite written contract for attorneys’ fees:
1. When he withdraws before the case is finished
2. justified dismissal of attorney (payment: in quantum meruit only)
The reason for the award of attorney’s fees must be stated in the text of the decision;
otherwise, if it is stated only in the dispositive portion of the decision, the same must be
disallowed on appeal.
Even though the interest or property involved is of considerable value, if the legal
services rendered do not call for much efforts there is no justification for the award of
high fees.
Champertous Contracts (void) – Lawyer stipulates with his client that in the prosecution
of the case, he will bear all the expenses for the recovery of things or property being
claimed by the client and the latter agrees to pay the former a portion of the
thing/property recovered as compensation.
Compensation to an attorney for merely recommending another lawyer is improper
(agents)
Attorney’s fees for legal services shared or divided to non-lawyer is prohibited. Division
of fees is only for division of service or responsibility.
A lawyer should try to settle amicably any differences on the subject. A lawyer has 2
options. Judicial action to recover attorney’s fees:
1. In same case: Enforce attorney’s fees 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.
CANON 21 – A lawyer shall preserve the confidences and secrets of his client even after the
attorney-client relation is terminated.
Confidence – refers to information protected by the attorney-client privilege (RRC)
Secret – refers to other information gained in the professional relationship that the
client has regulated to be held inviolate or the disclosure of which would be
embarrassing or would likely be detrimental to the client.
An attorney cannot, without the consent of his client, be examined as to any
communication made by the client to him, or his advice given thereon in the course of
professional employment; nor can an attorney’s secretary, stenographer, or clerk be
examined, without the consent of the client and his employees, concerning any fact the
knowledge of which has been acquired in such capacity (Rule 130, Sec. 21 (b), RRC)
The mere establishment of a client-lawyer relationship does not raise a presumption of
confidentiality. There must be an intent or that the communication relayed by the
client to the lawyer be treated as confidential.
Rule 21.01 – A lawyer shall not reveal the confidences or secrets of his client except:
1. a. When authorized by the client after acquainting him of the consequences of
the disclosure:
2. b. When required by law;
3. c. When necessary to collect his fees or to defend himself, his employees or
associates or by judicial action.
When properly authorized after having been fully informed of the consequences to
reveal his confidences/secrets, then there is a valid waiver.
Art. 209. Betrayal of Trust by an Attorney or Solicitor. Revelation of secrets. In addition
to the proper administrative action, the penalty of prision correccional in its minimum
period, or a fine ranging from P200 to P1000, or both, shall be imposed upon any
attorney at law or solicitor who, by any malicious break of professional duty as
inexcusable negligence or ignorance, shall prejudice his client, or reveal any of the
secrets of the latter learned by him in his professional capacity.
The same penalty shall be imposed upon an attorney at law or solicitor who, having undertaken
the defense of a client, or having received confidential information from said client in a case,
shall undertake the defense of the opposing party in the same case, without the consent of his
first client (Rule 209, RPC)
Rule 21.02 – A lawyer shall not, to the disadvantage of his client, use information acquired in
the course of employment, nor shall he use the same to his own advantage or that of a third
person, unless the client with full knowledge of the circumstances consents thereto.
Rule 21.03 – A lawyer shall not, without the written consent of his client, give information
from his files to an outside agency seeking such information for auditing, statistical,
bookkeeping, accounting, data processing, or any other similar purposes.
Rule 21.04 – A lawyer may disclose the affairs of a client of the firm to partners or associates
thereof unless prohibited by the client.
Rule 21.05 – A lawyer shall adopt such measures as may be required to prevent those whose
services are utilized by him, from disclosing or using confidences or secrets of the client.
Rule 21.06 – A lawyer shall avoid indiscreet conversation about a client’s affairs even with
members of his family.
Rule 21.07 – A lawyer shall not reveal that he has been consulted about a particular case
except to avoid possible conflict of interest.
Avoid committing calculated indiscretion – accidental revelation of secrets obtained in
his professional employment.
Prohibition applies, even if the prospective client did not thereafter actually engage the
lawyer.
CANON 22 – A lawyer shall withdraw his services only for good cause and upon notice
appropriate in the circumstances.
Rule 22.01 – A lawyer may withdraw his services in any of the following cases:
a. When the client pursues an illegal or immoral course of conduct in connection
with the matter he is handling;
b. When the client insists that the lawyer pursue conduct violative of these canons
and rules;
c. When his inability to work with co-counsel will not promote the best interest of
the client;
d. When the mental or physical condition of the lawyer renders it difficult for him
to carry out the employment effectively;
e. When the client deliberately fails to pay the fees for the services or fails to
comply with the retainer agreement;
f. When the lawyer is elected or appointed to a public office, and
g. Other similar cases
Rule 22.02 – A lawyer who withdraws or is discharged shall subject to a retaining lien,
immediately turn over all papers and property to which the client is entitled, and shall
cooperate with his successor in the orderly transfer of the matter, including all information
necessary for the proper handling of the matter.
In withdrawal as counsel for a client, an attorney may only retire from a case either by
written consent of his client or by permission of the court after due notice and hearing,
in which event the attorney should see to it that the name of the new attorney is
recorded in the case.
An attorney who could not get the written consent of his client must make an
application to the court, for the relation does not terminate formally until there is a
withdrawal of record. Counsel has no right to presume that the court would grand his
withdrawal and therefore must still appear on the date of hearing.
A lawyer cannot recover compensation from one who did not employ or authorize his
employment, however valuable the results of his services may have been to such person.
In similar cases, no compensation when:
1. client conducts himself in a manner which tends to degrade his attorney;
2. client refuses to extend cooperation;
3. client stops having contact with him.
The right of a client to terminate a lawyer is absolute. Such termination may be with or
without cause.
Nature of Atty-Client Relationship
The relation of attorney and client is one of trust and confidence of the highest
order. It is highly fiduciary in nature and demands utmost fidelity and good faith.
A lawyer becomes familiar with all the facts connected with his client’s case. He
learns from his client the weak points of the action as well as the strong ones.
Such knowledge must be considered sacred and guarded with care. No
opportunity must be given him to take advantage of the client’s secrets.
The rule is a rigid one designed not alone to prevent the dishonest practitioner
from fraudulent conduct as well as preclude the honest practitioner from putting
himself in a position where he may be required to choose between conflicting
duties, and to protect him from unfounded suspicion of professional misconduct.
The question is not necessarily one of the rights of the parties but adherence to
proper professional standards. An attorney should not only keep inviolate his
client’s confidence but should likewise avoid the appearance of treachery and
double-dealing. (PCGG vs. SB, et al., supra.).
Counsel de parte is the counsel of choice of the accused engaged by him to represent him
in court. It is in line with his constitutional right to have a competent and independent
counsel preferably of his own choice. Most often than not, this counsel de parte is a private
practitioner and his legal services are not for gratis.
However, if the accused cannot afford the services of a counsel, he must be provided with
one. This counsel provided by court to defend the accused is known as counsel de oficio.
As provided in the Revised Rules of Court of the Philippines, it is a duty of the court to
inform the accused of his right to counsel. Thus:
“Before arraignment, the court shall inform the accused of his right to counsel and ask him if
he desires to have one. Unless the accused is allowed to defend himself in person or has
employed counsel of his choice, the court must assign a counsel de oficio to defend him.”
(Section 6, Rule 116, Revised Rules of Criminal Procedures of the Philippines)
As provided in the Revised Rules of Court of the Philippines, a counsel de oficio are
members of the bar (lawyer) in good standing who, by reason of their experience and
ability, can competently defend the accused.
By this definition alone, only lawyers who are of good standing that can competently defend
the accused may be appointed as counsel de oficio.
However, the same Rules of Court continues that in localities where such members of the
bar are not available, the court may appoint ANY PERSON, resident of the province and of
good probity and ability, to defend the accused.
Hence, in the absence of a lawyer who is of good standing to defend the accused, the court
may appoint any person to defend the accused. This any person shall be a resident of the
province and good probity and ability to defend the accused.
Counsel De Officio
Sec. 7. Appointment of counsel de officio. – The court, considering the gravity of the offense
and the difficulty of the questions that may arise, shall appoint as counsel de officio such
members of the bar in good standing who, by reason of their experience and ability, can
competently defend the accused. But in localities where such members of the bar are not
available, the court may appoint any person, resident of the province and of good repute for
probity and ability, to defend the accused.
Sec. 8. Time for counsel de officio to prepare for arraignment. – Whenever a counsel de
office is appointed by the court to defend the accused at the arraignment, he shall be given a
reasonable time to consult with the accused as to his plea before proceeding with the
arraignment.
> The court, considering the gravity of the offense and the difficulty of the questions that may
arise shall appoint as counsel de officio
1. A member of the bar in good standing
2. And such member, by reason of his/her experience and ability, can competently defend
the accused
> ONLY DURING TRIAL: But, in localities where such members of the bar are not
available, the court may appoint any person who
is—
1. A resident of the province
2. And of good repute for probity and with ability to defend the accused
Attorney of record vs Of Counsel
Attorney of Record – one who has filed a notice of appearance and who hence is formally
mentioned in court records as the official attorney of the party. Person whom the client
has named as his agent upon whom service of papers may be made.
(Reynolds v. Reynolds, Cal.2d580).
Of Counsel – to distinguish them from attorneys of record, associate attorneys are referred
to as “of counsel” (5 Am. Jur. 261).
Amicus curiae par excellence – bar associations who appear in court as amici curiae or friends
of the court. Acts merely as a consultant to guide the court in a doubtful question or issue pending
before it.
Aid Service governing the mandatory requirement for practicing lawyers to render free legal aid services
in all cases (whether civil, criminal, or administrative) involving indigent and pauper litigants where the
assistance of a lawyer is needed. It also mandates other members of the legal profession to support the
indigent litigants in a year. Clerks of Court and the IBP Legal Aid Chairperson of the IBP Chapter are
designated to coordinate with a lawyer for cases where he may render free legal aid service.
The following lawyers are excluded in the term “practicing lawyer”:
1. Government employees and incumbent elective officials not allowed by law to practice;
3. Supervising lawyers of students enrolled in law student practice in duly accredited legal clinics of law
schools and lawyers of non-governmental organizations (NGOs) and peoples organizations (POs) like the
Free Legal Assistance Group who by the nature of their work already render free legal aid to indigent and
private sector but do not appear for and in behalf of parties in courts of law and quasi-judicial agencies.
Indigent and pauper litigants are those whose gross income and that of their immediate family do not
exceed an amount double the monthly minimum wage of an employee and those who not own any real
property. They are exempt from payment of docket fees and lawful fees as well as transcripts of
stenographic notes.
A penalty of Php 4,000 shall be imposed on the lawyer who fails to meet the required minimum number
of hours of legal aid service each year required by the IBP without satisfactory explanation. The lawyer
shall have a “not in good standing” status and shall not be allowed to appear in court or any quasi-
judicial body as counsel for a period of 3 months. A lawyer who fails to comply with the duties in the
Rule for at least 3 consecutive years shall be subject to disciplinary proceedings and may be suspended
Section 1. Short Title. - This Act shall be known as the "Free Legal Assistance Act of
2010".
Section 2. Declaration of Policy. - It is the declared policy of the State to value the dignity of
every human person and guarantee the rights of every individual, particularly those who
cannot afford the services of legal counsel.
Furthermore, it is the policy of the State to promote a just and dynamic social order that will
ensure the prosperity and independence of the nation and free the people from poverty
through policies and programs that provide adequate social services and improve the quality
of life for all.
In addition, the State shall guarantee free legal assistance to the poor and ensure that every
person who cannot afford the services of a counsel is provided with a competent and
independent counsel preferably of his/her own choice, if upon determination it appears that
the party cannot afford the services of a counsel, and that services of a counsel are
necessary to secure the ends of justice and protect of the party.
Section 3. Definition of Terms. - As provided for in this Act, the term legal services to be
performed by a lawyer refers to any activity which requires the application of law, legal
procedure, knowledge, training and experiences which shall include, among others, legal
advice and counsel, and the preparation of instruments and contracts, including appearance
before the administrative and quasi-judicial offices, bodies and tribunals handling cases in
court, and other similar services as may be defined by the Supreme Court.
Section 4. Requirements for Availment. - For purposes of availing of the benefits and
services as envisioned in this Act, a lawyer or professional partnership shall secure a
certification from the Public Attorney's Office (PAO), the Department of Justice (DOJ) or
accredited association of the Supreme Court indicating that the said legal services to be
provided are within the services defined by the Supreme Court, and that the agencies cannot
provide the legal services to be provided by the private counsel.
For purpose of determining the number of hours actually provided by the lawyer and/or
professional firm in the provision of legal services, the association and/or organization duly
accredited by the Supreme Court shall issue the necessary certification that said legal
services were actually undertaken.
The certification issued by, among others, the PAO, the DOJ and other accredited
association by the Supreme Court shall be submitted to the Bureau of Internal Revenue
(BIR) for purposes of availing the tax deductions as provided for in this Act and to the DOJ
for purposes of monitoring.
The report shall state in detail, among others, the geographic location, demographic
characteristics and socioeconomic profile of the beneficiaries of this Act.
Section 8. Implementing Rules and Regulations (IRR). - Within ninety (90) days from the
date effectivity of this Act, the BIR shall formulate the necessary revenue regulations for the
proper implementation of the tax component as envisioned in this Act.
The Supreme Court shall formulate the necessary implementing rules and regulations with
respect to the legal services covered under this Act and the process of accreditation of
organizations and/or associations which will provide free legal assistance.
Section 10. Repealing Clause. - Any law, decree, ordinance or administrative circular not
consistent with any provision of this Act is hereby amended, repealed or modified
accordingly.
Section 11. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in two (2) newspapers of general circulation.
The general rule is that the principal is chargeable with and bound by the
knowledge of or notice to his agent, received while the latter was acting as
such. The well-established exception is where the conduct and dealings of
the agent are such as to raise a clear presumption that he will not
communicate to the principal the facts in controversy. (G.R. No. 114311)
OTHER EXCEPTIONS:
[1] The agent maintains interests that are adverse to those of the principal;
[2] The person invoking the theory of imputed knowledge is in collusion
with the agent for the purpose of defrauding the principal; and
[3] The agent receives confidential information.
It’s important to know just what you’re paying for in any type of transaction – especially
when it comes to legal fees which can pile up pretty quickly.
To prevent unwanted surprises, here’s a quick guide to fees and arrangements typically
paid to lawyers:
In the Philippines, there is no standard practice when it comes to initially consulting with
a lawyer. Some lawyers charge a fixed rate for consultations; others charge by the hour.
Inquire before scheduling an appointment.
Acceptance fee
Following the initial consultation, both you and the lawyer you consulted can opt to
reject or proceed with the case.
When a lawyer accepts your case, it comes with a fee. This payment indicates that the
lawyer is entering an exclusive arrangement with you and relinquishes opportunities to
represent other parties. Call it an opportunity cost.
Once you decide to hire a lawyer, a fixed retainer fee is paid in advance. This covers
the lawyer’s initial expenses as well as the services your lawyer will render down the
road. Call it a down payment, if you will.
The retainer fee often puts attorneys on call basis when they handle legal cases for their
clients over a set period of time. The fee is usually held in an account separate from the
lawyer’s regular hourly wage.
Flat fee
Flat fees are paid for cases or services considered basic or routine such as filing
copyright registrations, writing a will, and preparing basic estate planning documents.
Hourly rate
This charge covers the hours the lawyer spends working on a client’s case – from
consultations to meetings to research.
An attorney’s hourly rate is usually billed per month. Some attorneys will charge
different hourly rates for different services. A law firm’s senior members are pricier than
younger associates.
Before agreeing to anything, ask your lawyer for an estimate of how long the prep work
and the actual litigation might take. This will give you a fair idea of how much you may
be paying in the future.
Contingency fee
If a client can’t afford a lawyer’s services, they can enter into a contingent fee
arrangement. The attorney’s fee will be paid with a percentage of the compensation
awarded in a successful case.
If the client loses, no money changes hands. However, the client will still have to pay for
the attorney’s services.
This type of fee may be arranged in cases involving large payouts sought in damages
pertaining to property or personal injuries.
If you’re looking for a lawyer, it’s important to remember that professional fees are
sometimes negotiable, so don’t be afraid to ask.
In lieu of a negotiated fee, you may be offered a payment scheme. Some lawyers may
even allow you to negotiate the terms of payment.
Champertous contract - It is when the lawyer stipulates with his client that in the
prosecution of the case, he will bear all the expenses for the recovery of things or
property being claimed by the client and the latter agrees to pay the former a portion of
the thing/property recovered as compensation. Champertous contracts are prohibited as
they are against public policy and ethics of the profession.
Attorney’s Fees
o Principle of Quantum Meruit
Quantum meruit – literally meaning as much as he deserves – is used as basis for
determining an attorney’s professional fees in the absence of an express agreement. The
recovery of attorney’s fees on the basis of quantum meruit is a device that prevents an
unscrupulous client from running away with the fruits of the legal services of counsel without
paying for it and also avoids unjust enrichment on the part of the attorney himself. An
attorney must show that he is entitled to reasonable compensation for the effort in pursuing
the client’s cause, taking into account certain factors in fixing the amount of legal fees.
The fee as an item of damages belongs to the party litigant and not to his lawyer. It forms
part of his judgment recoveries against the losing party. The client and his lawyer may,
however, agree that whatever attorney’s fee as an element of damages the court may award
shall pertain to the lawyer as his compensation or as part thereof. In such a case, the court
upon proper motion may require the losing party to pay such fee directly to the lawyer of the
prevailing party.
The two concepts of attorney’s fees are similar in other respects. They both require, as a
prerequisite to their grant, the intervention of or the rendition of professional services by a
lawyer. As a client may not be held liable for counsel fees in favor of his lawyer who never
rendered services, so too may a party be not held liable for attorney’s fees as damages in
favor of the winning party who enforced his rights without the assistance of counsel.
Moreover, both fees are subject to judicial control and modification. And the rules governing
the determination of their reasonable amount are applicable in one as in the other.
CANON 19 AURORA AGUILAR-DYQUIANGCO VS ATTY. DIANA LYNN M. ARELLANO
(A.C. No. 10541, July 12, 2016)
FACTS:
Sometime in 2006, Complainant engaged Respondent's services for the purpose of filing a case
for collection of sum of money against a certain Delia Antigua ("Antigua"), advancing P1
0,000.00 for filing fees and P2,000.00 as part of the attorney's fees out of the agreed amount of
P20,000.00. Three years later, Complainant, upon inquiry with the Regional Trial Court ("RTC")
of San Fernando, La Union, discovered that Respondent failed to file her case against Antigua.
Consequently, Complainant sent a letter to Respondent terminating Respondent's services and
demanding the return of the said money and documents she entrusted to Respondent, who, in
turn, refused to return Complainant's documents alleging that she was enforcing her retainer's
lien. During the existence of a lawyer-client relationship between them, Respondent frequently
borrowed money from Complainant and her husband, Antonio Dyquiangco ("Antonio") , for
which Respondent issued postdated checks in July 2008 ("checks issued in July 2008") as
security. Complainant and Antonio later stopped lending money to Respondent when they
discovered that she was engaged in "kiting", that is, using the newer loans to pay off the
previous loans she had obtained. Upon presentment by Complainant, all of the said checks
were dishonored due to insufficiency of funds and closure of accounts. Hence, Complainant
filed complaints for violation of Batas Pambansa Blg. 22 ("BP Blg. 22") against Respondent.
Complainant and her husband sent a demand letter dated August 26, 2009 to Respondent for
the payment of the dishonored checks issued in July 2008. The Respondent's failure to pay
despite demand resulted in letter exchanges between the parties dated September 28, 2009
and October 7, 2009. The October 7, 2009 demand letter by Complainant was also sent to
Respondent's mother, Florescita M. Arellano. This exchange of letters, which the Respondent
believed to be libelous, led to the filing of two (2) complaints for Libel against Complainant with
the Office of the City Prosecutor of Manila and the Office of the Provincial Prosecutor of La
Union, both of which were eventually dismissed for lack of probable cause.
ISSUE:
Whether or not the respondent violated Canon 19 particularly Rule 19.01 of the Code of
Professional Responsibility.
HELD:
Yes. The Court noted that Respondent's act of filing two (2) baseless complaints for libel against
Complainant in two (2) different venues (Manila and San Fernando City, La Union) for the same
alleged act is a clear violation of the Lawyer's Oath — which states that a lawyer shall "not
wittingly or willingly promote or sue any groundless, false or unlawful suit, nor give aid or
consent to the same." Canon 19 of the Code of Professional Responsibility states that "a lawyer
shall represent his client with zeal within the bounds of the law”. In particular, Rule 19.01
commands that a "lawyer shall employ only fair and honest means to attain the lawful objectives
of his client and shall not present, participate in presenting or threaten to present unfounded
criminal charges to obtain an improper advantage in any case or proceeding." Under this Rule,
a lawyer should not file or threaten to file any unfounded or baseless criminal case or cases
against the adversaries of his client designed to secure a leverage to compel the adversaries to
yield or withdraw their own cases against the lawyer's client.