December 9, 2023

BLJE

How to you know if the a=y’s fees reasonable? (SecDon 41, Canon 3)

- What the profession is

When to apply to quantum meruit & secDon 41, canon 3?

Quantum meruit

SecDon 41, Canon 3:

SECTION 41. Fair and reasonable fees. — A lawyer shall
charge only fair and reasonable fees.

How does the client know how much to pay?

- the IBP has listed the minimum rate of the a3orney’s fee
- based on the standards of the lawyer
- can be charged by the hour (ex: wri>ng, hearing, >me researching) or charge by
output (ex: by the pleading – flat rate)

Can you charge a=y fees by winning the chance?

I will not charge anything, but I will get it from the advancement necessary expenses
(filing fee, occasional fee, transpo fee, etc).

- Ex: Nullity case – won’t charge for anything, but if we win I get 20%
- is this sancDon by cpra? – secDon 41 – YES 41 (g)
(g) The contingency or certainty of compensation;
* This is a classic example of con1ngency fees but should only be limited to the
lawyer’s fees *

Does the lawyer spend for necessary expenses?

- No. it is the role of the client

Can the lawyer pay it first?

- Yes and request for reimbursement
When do you seek reimbursement?
- any>me

Different types of lawyer’s fees

-Acceptance fees
- Appearance fees
-Consulta=on fees
-Awarded for damages
-Retainer fee

Caper tus contract (against public policy)

- the li>gant spends nothing.

What happens when the a=y is not reasonable?

- the SC can reduce or totally erase a3y fees if unreasonable

Factors affecting reasonable attys fees

(a) The time spent and the extent of the service rendered or required;
Ex: 100,000 – 3,000

*What is the standard of the court in atty’s fees?

-- Quantum meruit (what you deserve) based on the time served

Roxas v. de Zuzuarregui
-case about contingency fees (44% - big or small based on your base amount)

44% of 54 Million – reduced to 15% based on jurisprudence

*contingency fees are relatively higher than other fees (depends on the complexity
of the case)

CANON 3, SECTION 41. Fair and reasonable fees.

(b) The novelty and difficulty of the issues involved;

(c) The skill or expertise of the lawyer, including the level of study and
experience required for the engagement;

(d) The probability of losing other engagements as a result of acceptance of the

case;
(e) The customary charges for similar services and the recommended schedule of
fees, which the IBP chapter shall provide;

Common case – cancellation of lien titles in QC – petition, 2 hearings.

The rates differs per chapter

(f) The quantitative or qualitative value of the client’s interest in the

engagement, or the benefits resulting to the client from the service;

(g) The contingency or certainty of compensation;

(h) The character of the engagement, whether limited, seasonal, or otherwise; and

(i) Other analogous factors. (20.01a)

Tanhueco v. de Dumo (capacity to pay)

If you have an indigent client, how much will you pay?

- pro bono (FOR THE PUBLIC GOOD)

The damages received from the court, can you get it as atty fees?

- If the client agrees

There are damages called, atty fees, can you get it straight from the court?

- No. Since it is an “extraordinary atty fees”

*ordinary Atty fees – payable, demandable by you

- can be imposed based on the civil code and Art 111 Labor code (Masmud v NLRC)
What do you do if your client doesn’t want to pay the attys fees?
- It can’t be because it’s the responsibility of the client to pay for the
attorney’s fees
Ex:
- You accepted a case for 100,000 pesos for acceptance fees
- Also asked your client , another 100,000 pesos for filing fees (Necessary expenses)

Client gave 100,000 pesos and the atty fee will be to followed.
After filling the case, the court said that the filing fee is only 50K. Can you claim
the unused 50K as your atty fee?

- you need to account the 100,000 because the money is for a specific purpose.
One of the roles of fidelity of lawyers.

How do you account the money?

- get a receipt from your expenses & get a receipt from the court
- you have to list it down on your lawyer book for both expenses so you can you
on your records on how you account the money
- you can show it now to the client
- the remaning balance should be in a separate bank account

What are you due bound to do with the remaining balance?

you return it to the client because the purpose has been served.

But the client said it for other purposes. Can you keep it?

Yes, if confirmed by the client. Do the same process if you used the remaining
balance

Can you use the balance as your atty fees?

- It can be considered as a lien.

What type of lien?

- it is a retaining lien, last paragraph of Section 56 lien

Two types of attys lien

- Section 47 Lien (Canon 3, CPRA) – charging lien
- Section 56 Lien (Canon 3, CPRA) – retaining lien
*The fact you accepted the case, there is a lawyer-client relationship even
without payment

How do you apply the retaining lien as your atty fee?

Still do the accounting and report it to the client that you are using it as your
acceptance fee. The knowledge of the client is crucial

Question:

300K awarded during judgement. Total judgement award,

You still have receivables of ordinary atty fees – 100k and you are not yet paid.

Can you get your atty fees from the judgement award of 300k? (the money is still at
the hands of the losing party and still needs to convince them to turn it over)

No. it is still not yet in your hands. File a motion of execution (Rules of
Procedure 39). The sheriff will execute the motion

If the money is already given by the losing party? Can you get your 100k? Do you
have atty liens from it?

It is a retaining lien

You filed a motion of execution and the sheriff now got the payment of 300K. Can
you get your 100k?

It is now a charging lien.

How can you get the charging lien to you and not to your client?

By filing the notice of enforcement of atty lien (Section 47). You need to seek
court intervention.

SECTION 47. Enforcement of attorney’s lien.

When do you file notice of enforcement of atty lien?

You can file it before. You can notify the court that you have receivable but you
can only enforce it by getting a favorable monetary judgement
What do you do if you don’t have any lien and you aren’t paid of your atty fees?

File a separate action in the same court. If you enforce your charging lien,
propriety of charging lien and propriety of judgement. Because the court knows
what happened in the case.

The court will decided if the payment is fair and reasonable ( time in court, manner
in the court)

Can nonpayment of atty fee cause termination of engagement? (if all methods are
exhausted)

Yes. Canon 3. SECTION 53. Termination of engagement by the lawyer. — A

lawyer shall terminate the lawyer-client engagement only for good
cause and upon written notice

What factors that the court use to know how much you deserve?

- Section 41, canon 3. Everything should be quantum meruit. It will only be sanction
if fair and reasonable

SECTION 41. Fair and reasonable fees. — A lawyer shall charge only fair and
reasonable fees.

Can we have an arrangement based on the percentage on the property (lot, car, etc)
being recovered?

No.

Section 51, based from the civil code, Prohibition against acquiring interest in
object of litigation or transaction.

If the case is closed, can you get the car now after recovery?

Yes.

Will the car be the subject of the litigation after judgement?

*See footnote of section 51, Heirs of Uy Ek Liong v. Meer Castillo

Prohibition ends once litigation ends. It applies only during the dependency of the
case.

Why are atty not allowed to acquire properties subject to the litigation?

- if you acquire interest to the object of the litigation, you partly become a party
to the case however formal or informal.

Is it a bad thing?

- it is a bad thing. It will affect your independence and decision making.

*As long as it is contingent, it is fine. As long as it is to the future.*

Who can termination the engagement?

- both parties, lawyer or client.

The client can terminate the engagement anytime upon lose of trust and confidence
with or without cause

If the client terminate you as a lawyer, as you still going to be paid?

Yes, for services made.

Do you need to return the acceptance fee?

No.

If there was an engagement of 500k but suddenly you were terminated half way, can
you claim money?

Yes, you can claim the entire the 500k since there was an engagement (Section
54). Especially so if based on a whim. If deemed uncontrollable by the court.

CANON 3, SECTION 54. Termination of engagement by the client. —The lawyer-

client engagement may be terminated by the client at any time upon loss of trust
and confidence.
You have several grounds for the lawyers to terminate the engagement. How can
you terminate your client?

Create a written notice to the client and court. You need to inform the court.
Same as your client. The terminated lawyer must report that he has been
terminated and report his lien.

Do you need the client's consent to terminate the engagement?

If there is no cause, you cant use section 53 but you can ask for your client’s
consent if as a lawyer you don’t want to represent him anymore.

If there is a cause, use section 53 and present it to the court.

SECTION 53. Termination of engagement by the lawyer. — A lawyer shall

terminate the lawyer-client engagement only for good cause and upon written
notice

Public policy/SC requires you to fulfill the engagement

What do you do if you your client pursue illegal acts?

You must first try to rectify the acts and not terminate the engagement

You rectified the actions of the client but can you now terminate?

Yes because the client performed an illegal act. You must not show that you are
condoning the act of you client

What do you do if your client made death threats so the witness didn’t appear in
court?

- You discovered the fraudulent act. Exercise the ascendancy to rectify the act
(section 9, Canon 3)
SECTION 9. Duty to call client to rectify fraudulent act.

*you don’t outright disclose privileged communications.

Only if there is a life-threatening issue but you must really be convinced, you can
justify it
*No resetting the trial unless there is justifiable cause

Good response: is that the absent of the witness, is a waiver of his participation.
After the case, terminate the engagement with the client based on fraudulent
act.

Section 1, Canon 5 – No discrimination to not represent the client

*The moral predisposition is new. It is about your moral beliefs

Section 53(G) of Canon 3 is related = Section 3 of Canon 5 (exemptions to lawyer

not to represent an indigent)

Section 53(f) When the lawyer is elected or appointed to public office

Applicable to PAO and Counsel de officio

Being a public official is not a ground for declining being a counsel de officio

Is the lawyer duty bound to represent his client’s relatives?

No. Sec 16 of Rules 3, Rules of Court – Duty of the counsel – to inform the court
of the death of the party.

Give name and address of the parties legal representative. Failure to do this,
grounds for penalties

How do you ensure that you are competent to represent the cause of your client?

When you're handling a real case, reviewers are no longer enough. Don’t bite
something you can’t chew

For the competence and diligence, litigation and defense special groups – Falcis v
Civil Registrar general
You must also discuss with your client, honesty. The possibility of getting a
favorable judgment (sec 5, Canon 4)

SECTION 5. Prompt and objective assessment of the merits. — A lawyer shall,

after reasonable inquiry, promptly give an objective assessment of the merits
and probable results of the client’s case.

Temper your client's desire to litigate. Reminder from the court in the execution
stage. Help the court by explaining to your client that it will come to a point you
have to accept the results of the case.

The purpose of the memorandum: is to summarize the pleadings to help the court to
review all the documents filed.

The practical reason that will aid the administration of justice. For the lawyer to
inform the court that he is no longer filing a memorandum, to arrest the period
for something that is not coming. Especially when the pleading is required by the
court

– Candor to the court

*Pleadings are filed through registered mail.

Are you going to wait for an actual case, new decisions, new provisions to be brought
to you before researching?

- Lawyers should be life long learners. Follow SC, PHLJA, read journals
- MCLE every 3 years (mandatory)

What happens if you don’t take MCLE?

- You will be a IBP member of not good standing. You can’t practice law (two-
fold requirement)

Advertisement – problem areas in legal ethics

Section 1, Canon 5 – Non-discrimination

Can you decline a proposed engagement?

Yes, on the grounds of: if you have a lot of cases (number of your staff), conflict
of interest

Can you represent 2 female romantic relationship of your 2 friends? What will be
your legal path if it is not in the court?

You go to the congress to lobby the concern. You’ll take your cause. (Section 4,
Canon 5)

SECTION 4. Diligence in all undertakings. — A lawyer shall observe diligence

in all professional undertakings, and shall not cause or occasion delay in any
legal matter before any court, tribunal, or other agency.

You need to be more diligent to represent advocacy work.

Thought police – finding the prejudice (Thought crimes) – 1984

Section 3, Canon 5 – refusal to represent an indigent persons must be justified with

real, authentic, in good faith and will affect the result of the representation

Injunction of the SC to elevate your service when it comes to vulnerable service.

Atty. Mane v. Judge Belen – clear example of discriminatory overact. Belittle the legal
education of the lawyer (MLQU)

Disciplinary proceedings is neither Civil, Criminal, Administrative. It is sui generis. It is for those
with lacking moral character.

Sui generis – other defense that will be raised may not necessarily raised during disciplinary
proceedings

Can you still file?

Disciplinary proceedings is imprescriptible.

Complainant filed, withdraw the complaint, what is the effect in judicial proceesings?

Restitution, withdrawal, or change of heart does not disbar the complaint like normal
complaint that will be closed since it is a matter of public interest.
What is the role of the complainant?

Witness of the act. The complaint also has fault,

In pari delicto defense in a court of law is an invalid defense. You shouldn’t come to court
with dirty hands.

Can the proceedings be streamed online? Can we watch proceedings?

No. Proceedings are confidential.

Are filing or instituted a case against a lawyer also confidential? (Fortun v. Quinsayas)

The filing of pleading is confidential. What is not confidential is the final judgement.

If it is a public interest concern – freedom of press – you can share

*You are bound of the disbarment complaint as a lawyer

Guevarra-Castil v. Atty. Trinidad – how to know the jurisdiction between SC and ombudsman

Section 10 – Prohibitive submission

Section 16 - desistance

Section 31 – preventive suspension (In the case of larry gadon)

Quantum of proof - for substantial evidence for disbarment (enough to justify the conclusion)

Quantum of proof to overturn presumptions – clear and convincing evidence

Quantum proof hierarchy

• Proof beyond reasonable doubt
• Clear and convincing
• Preponderance of evidence
• Substantial evidence

Assisting in the offense, make the lawyer liable (Sec 36)

When can the lawyer resume practice of law when suspension?

Valdez v Atty hipe.

Don’t wait for the decision of the Supreme Court. After you submit your sworn statement
and submit your docket and you can practice law again. The sworn statement is proof of
your compliance with the requirements of the CPRA
Can you be disbarred or disciplinarily proceeded against?

Due process is always needed. It can be used as prima facie evidence (In Re: Petition Re-
Acquire the Privilege to Practice Law in The Philippines, Epifanio B. Muneses,

What is harder, to resume practice or to be reinstated?

Reinstated because you need to file a petiton and clear and convincing evidence

When you file?

At least 5 years (Earliest possible time)

What do you need to do?

Restitution (pinapabalik ang pera), follow the disbardment orders, must be apologetic, reconcile
with the wronged party

Why you should be reinstated? (Section 48)

Macarrubo v. Atty. Macarrubo – twice denied due to lack of reconciliation

Valdez v. Atty. Hipe
In Re: Edilion – refused to pay his dues,

What are the Requirements during notarization?

The one notarizing should personally appear before you in the execution of notarization.
Request them to present an gov’t ID with picture and signature

Donton v. Atty. Tansingco – occupancy agreement

In re: Atty. Santiago – Husband went to the notary republic, contract to remarry and waive all
rights of husband and wife

New Code of Judicial Conduct of the Philippine Judiciary (A.M. No. 03-05-01-SC)

Provides for the ethics of judge and justices

Sources of administrative liabilities
It is parallel with the CPRA
Product of an international document, Bangalor principle – 2002
Representated CJ Davide & Puno
CANON 1 - Independence – guarantee of due process (personal-interpretation of the and
institutional-judicial branch, separation)

Perception of independence is as important of actual independence

CANON 2 - Integrity – catch all for everything (totality of all values on part of the
personal demeanor of the judges (better to have a mediocre judge with integrity; moral character
over legal knowledge)

Common complaints
- demanding or accepting bribes, fraternizing with litigants and lawyers, altering orders,
delaying of judgement, sexual harassment of employees, gross ignorance of the law

Having misteresses and affairs, frequenting casino & sabungan, coming intoxicated.

Honesty, immorality, grave abuse of authority (create orders that is not aligned with the rules,
issues a TRO without any grounds and outside the rules, favoring one party over the other

CANON 3 - Impartiality - intertwined with independence

Capacity of the judge to render the law without bias and prejudice. Basis is the law, facts, and
process

Perception of impartiality is as important of actual impartiality

Cold neutrality of the judge – clarification of questions

Inhibition is the remedy from actual bias, if you have relations and interest on the case

Do not inhibit when there is no bias.

Can judges freely express themselves. Yes but as a judge it is limited.

*CANON 1, 2, 3 normally overlapping each other

CANON 4 - Propriety
CANON 5 - Equality
CANON 6 - Competence and Diligence