MODULE 9 - Lawyer’s Duties in Handling the

Client’s Cause

Entire Devotion Within the Law

Are lawyers required to accept all clients that seek their services?
• No. A lawyer has a right to decline a client subject to Canon 14.
• 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 18.01)
• A collaborating counsel is a lawyer who is subsequently engaged to assist another lawyer
already handling a particular case for a client.
• However, once a lawyer accepts to take up the cause of the client, the lawyer owes fidelity to such cause
and must always be mindful of the trust and confidence reposed in him. No fear of judicial disfavor or
public unpopularity should restrain him from the full discharge of his duty.
• Note that the lawyer’s duty of entire devotion to his client’s cause must be within performed within the
bounds of the law.
• A lawyer shall represent his client with zeal within the bounds of the law. (Canon 19)
• A lawyer is not only expected to observe the laws himself, but he is also duty bound to impress upon his
clients compliance with the laws and principle of fairness (Rule 15.07)

What is the duty of a lawyer regarding requests of clients?

• The lawyer must comply with the lawful requests of clients.
• A lawyer shall resist and should never follow any unlawful requests from a client.
• Note that in matters of law and procedure, the client must yield to the lawyer and not the other way
around. A lawyer shall not allow the client to dictated the procedure in handling the case. (Rule 19.03)

Can a lawyer evade responsibility regarding contemptuous allegations in the pleadings he filed for his
client?
• No. As a lawyer, he is not just an instrument of his client. His client came to him for professional
assistance in the representation of a cause, and while he owed him whole-souled devotion, there were
bounds set by his responsibility as a lawyer which he could not overstep. (Wicker v. Arcangel, G.R. No.
112869, 1996)

Employment of Honorable Means

In representing a client, what means should a lawyer employ?
• 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 19.01)
• It is the duty of an attorney to employ, for the purpose of maintaining the causes confided to him, such
means only as are consistent with truth and honor, and never seek to mislead the judge or any judicial
officer by an artifice or false statement of fact or law. (Sec. 20, Rule 138, Rules of Court)

Suppose a lawyer becomes aware that his client has perpetuated a fraud, what is the duty of the lawyer?
• A lawyer who has received information that his client has, in the course of the representation,
perpetrated a fraud upon a person or tribunal, shall promptly call upon the client to rectify the same, and
failing which he shall terminate
the relationship with such client in accordance with the Rules of Court. (Rule 19.02)

Is a defense purely based on technicalities consistent with the requirement of employment of honorable
means?
• Some hold the view that defenses like prescription may not be properly raised to frustrate honest and
just demands.
• However, if such defense is provided by law, then any litigant can avail of such defense and the lawyer
may assert and make them effective. Note that a lawyer must use all defenses available to his client within
the bounds of the
law.

What are Required to Protect Client’s Interests

• Note that when a lawyer accepts professional employment from a client, he agrees that he shall serve
his client with competence and diligence. (Canon 18)
• When a lawyer accepts a retainer, he impliedly represents that:
1. He possess the requisite degree of learning, skill and ability which is necessary to the practice of
his profession and which others similarly situated possess.
2. He will exert his best judgment in the prosecution or defense of the litigation entrusted to him.
3. He will exercise reasonable and ordinary care and diligence in the use of his skill and in the
application of his knowledge to his client’s cause.
4. He will take such step as will adequately safeguard his client’s interest.

What is the degree of diligence required from a lawyer in handling the client’s cause?
• A lawyer must exercise ordinary diligence or that reasonable degree of care and skill having reference to
the character of the business he undertakes to do, as any other member of the bar similarly situated
commonly possesses and exercises. (Pajarillo v. Workmen’s Compensation Commission, 1980)
• A lawyer shall not handle any legal matter without adequate preparation. (Rule 18.02)
• Note: In the absence of evidence on the contrary, however, a lawyer is presumed to be prompt and
diligent in the performance of his obligations and to have employed his best efforts, learning, and ability in
the protection of his client’s interests and in the discharge of his duties as an officer of the court

How can a lawyer exercise this degree of diligence?

• A lawyer can satisfy the required diligence by preparing for the cause of his client. A lawyer shall not
handle any legal matter without adequate preparation. (Rule 18.02)
- Preparation of pleadings and interviewing witnesses.
• A lawyer should safeguard his client’s rights and interests by thorough study and preparation, mastering
applicable law and facts involved in a case, and keeping constantly abreast of the latest jurisprudence and
developments in
all branches of the law.

How can a lawyer exercise this degree of diligence?

• As member of the Philippine Bar he owes complete fidelity to the cause of his client. He should give
adequate attention, care and time to his cases. This is the reason why a practicing lawyer should accept
only so many cases he can afford to handle. And once he agrees to handle a case, he should undertake the
task with dedication and care. If he should do any less, then he is not true to his oath as a lawyer. (Legarda
v. CA, G.R. No. 94457, 1991)

What should a lawyer do in case there are conflicting trial dates with different clients?
• Where a lawyer has two cases set for hearing on the same day in two different courts of first instance,
he should generally ask postponement of the case in the court where notice of hearing be received last.
(Siojo v. Tecson,
1951)

Standard of Duty in Criminal Actions

What is the duty of a defense lawyer in a criminal case?
• The defense lawyer has the duty to make the accused’s right to counsel meaningful.
• Note that in a civil case, the lawyer can refuse to render legal service when he is convinced that the civil
case is intended to harass or injure the opposing party. In criminal cases, the defense lawyer has the duty
to render effective legal assistance to the accused regardless of his personal opinion as to the guild of his
client.
• It is the duty of an attorney in the defense of a person accused of crime, by all fair and honorable means,
regardless of his personal opinion as to the guilt of the accused, to present every defense that the law
permits, to the end that no person may be deprived of life or liberty, but by due process of law. (Sec. 20(i),
Rule 138, Rules of Court)

What is the standard of duty of a counsel de oficio in a criminal case?

• A counsel de oficio is expected to render effective service and to exert his best efforts on behalf of an
indigent accused.
• A lawyer who accepts the cause of a person unable to pay his professional fees shall observe the same
standard of conduct governing his relations with paying clients. (Rule 14.04)

What are the duties of a defense counsel in case the accused wants to plead guilty?
• It is the duty of the defense counsel to:
- Fully acquaint himself of the records and surrounding circumstances of the case.
 - Confer with the accused and obtain from his account of what had happened.
- Advise the accused of his constitutional rights.
- Thoroughly explain to the accused the import of a guilty plea and the inevitable conviction that
will follow.
- See to it that the prescribed procedure which experience has shown to be necessary to the
administration of justice is strictly followed and disclosed in the court records.
- As in the case of a plea of guilty for a grave offense, the court should take the testimony
of witnesses to determine the precise degree of culpability of the accused.

Consequences of Failure to Perform Duties

What happens if the lawyer is negligent in handling the clients cause?
• A lawyer shall not neglect a legal matter entrusted to him, and his negligence in connection therewith
shall render him liable. (Rule 18.03)
• If by reason of the lawyer’s negligence, actual loss has been caused to his client, the latter has a cause of
action against him for damages.

Suppose a decision is rendered by the court against a party whose lawyer is negligent, will the negligence
of the lawyer invalidate the decision of the court?
• As a general rule, no. A client is bound by the attorney’s conduct, negligence and mistake in handling the
case or in management of litigation and in procedural technique, and he cannot be heard to complain that
the result might have been different had his lawyer proceeded differently.
• However, the client is not so bound where the ignorance, incompetence or inexperience of a lawyer is
so great and error so serious that the client, who has good cause, is prejudiced and denied a day in court.
In certain cases, a new trial can be had upon motion.

MODULE 10 - Compensation of Attorney and Attorney’s Liens

Right to Attorney’s Fees

What is the concept of attorney’s fees?
• There are two concepts of attorney’s fees.
• It is the reasonable compensation paid to a lawyer by his client for the legal services he has rendered to
the latter.
• The other concept is the amount of damages which the court may award to be paid by the losing party
to the prevailing party.

Is acceptance of attorney’s fees contrary to the principle that the practice of law is not a business?
• No. This principle does not deny a lawyer the right to attorney’s fees for his professional services. He has
a right to have and recover from his client a fair and reasonable compensation for his services except in
cases where he
agreed to render service gratuitously of has been appointed as counsel de oficio.
• Note however that lawyers are officers of the court charged with the duty of assisting the court to
render impartial justice, thus the amount that a lawyer can collect is subject to judicial control and it is
regulated by the Code of
Professional Responsibility.

What are the requisites before a lawyer can be entitled to attorney’s fees?
• There must be a retainer between the lawyer and the client.
• The lawyer must actually render legal service to the client.
• Absent one requisite, then the lawyer is not entitled to attorney’s fees.
• A lawyer who rendered legal services notwithstanding the objection of the party is not entitled to
attorney’s fees even if such service benefited such party. Note however that such objection must be
before the benefit is received.
• A lawyer who is retained by a client but did not actually perform any legal service for the client is also
not entitled to attorney’s fees.

Who is liable to pay attorney’s fees?

• Generally, it is only the client who engaged the services of a lawyer either personally or through an
authorized agent is liable for the attorney’s fees.
• A person who is not a party to the retainer or who did not authorize such retainer is generally not liable
for attorney’s fees. Note however that there are exceptions to this rule.
• Ex: A party to an action who refused to appeal an adverse judgment is not liable to pay attorney’s fees
for the successful prosecution of the appeal made by other interested parties.

When is a person, who benefited from the services of a lawyer who he did not retain, liable to pay
attorney’s fees?
• If the person objects to the representation of the lawyer after he receives the benefit brought about by
such representation, then such person will be liable to pay attorney’s fees.

Is an assignee pendete lite liable to pay the lawyer of the assignor?

• Generally, the assignee steps into the shoes of the assignor and acquires all rights and obligation in the
action. This will include the obligation to pay attorney’s fees to the lawyer of the assignor. This however is
subject to stipulation of the parties.

Who is liable to pay attorney’s fees in labor cases?

• A lawyer who is retained by a union is entitled to be paid by not only the union members but also by
non-union members who derive benefits from his services.
• Exemption of non-union members who benefited from the award obtained by the union members from
sharing in the payment of the attorney’s fees would run counter to the general policy of the law to
encourage unionism to enable the employees to bargain with the employer upon a more or less equal
footing because it would tend to encourage a substantial portion of the employee force of any
corporation not to affiliate with the union that has a collective bargaining agreement with the company
and sit idly while the union members are fighting to secure
benefits that are later extended not only to them but also to all other employees of the company. (Pascual
v. CIR, G.R. Nos. L-27856-57, 1979)

Is a corporation liable to pay attorney’s fees to a lawyer retained by a stockholder for a derivative suit?
• Yes. The attorney’s fees may be charged against the corporate funds if the action is beneficial to the
corporation.
• Note however that any stockholder may intervene and oppose the grant of such attorney’s fees as a
charge against the corporate funds. (Lichauco v. CA, G.R. No. L-23842, 1975)

Who is liable to pay for attorney’s fees of a lawyer hired by an administrator or executor in the settlement
of estate?
• The one primarily liable is the administrator or executor because he is the one who hired the lawyer for
assistance. However, such administrator or executor can demand reimbursement from the estate.

Who are entitled to a share in the attorney’s fees?

• The lawyer who is retained by the client and who actually rendered legal service is the one entitled to
the attorney’s fees.
• If there are multiple lawyers retained by the client and there is no agreement as to the shares in the
attorney’s fees, then the attorney’s fees will be divided equally among the lawyers.
• If the lawyers are separately retained by the client, then the attorney’s fees will depend upon their
respective agreements.
• If the lawyers do not have an express agreement with the client or if the lawyers have rendered services
at one time or another in the action, each of them will be entitled to no more than what his services
actually performed
are reasonably worth.
• A lawyer shall, in case 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 20.02)

Are non-lawyers entitled to attorney’s fees?

• No. A retainer is required before one can be entitled to attorney’s fees. A nonlawyer cannot be retained
by a client because such non-lawyer person is not allowed to practice law.

Note the following lawyer who are disqualified to receive attorney’s fees:
• A lawyer who is disqualified to engage in private practice by reason of his government position is not
allowed to charge attorney’s fees.
• A lawyer who is also an administrator or executor of an estate is prohibited from charging the estate
under his administration of his professional fees for services rendered by him as a lawyer. (Sec. 7, Rule 85,
Rules of Court)
• A lawyer assigned as counsel de oficio cannot charge attorney’s fees against the client he is
representing. Note however that lawyers appointed as counsel de oficio are entitled to allowances from
the IBP.
• A lawyer who is guilty of misconduct or negligence in handling the clients cause is disqualified to receive
attorney’s fees.
• A lawyer who withdraws without a valid reason is also disqualified from receiving attorney’s fees from
the client. However, a lawyer who withdraws in accordance with the rules and who has faithfully done his
work is entitled to attorney’s fees.

Will the discharge of a lawyer by the client affect the right of the lawyer to attorney’s fees?
• If the discharge is without a valid reason, then the lawyer will still be entitled to attorney’s fees for
services already rendered. However, if there is a written contract stipulating the amount of attorney’s
fees, then the lawyer will be entitled to the full amount.
• If the attorney’s fees stipulated in a valid contract is contingent and the lawyer is unlawfully dismissed
before the conclusion of the action, the lawyer may still recover the reasonable value of his services
already rendered. If the contingency occurs of the client prevents its occurrence by dismissing, settling or
waiving his cause, the lawyer may be entitled to the full amount agreed in the contract.
• In these cases, the lawyer should question his discharge to entitle him to recover under the contract,
otherwise he will be allowed to recover on a quantum meruit basis.

If a client enters into a compromise agreement that led to the dismissal of a case, is the lawyer still
entitled to attorney’s fees?
• Yes. A client cannot deprive his lawyer of his attorney’s fees by entering into a compromise agreement,
unless the lawyer waived his attorney’s fees.

Contract for Attorney’s Fees

Is there a formal requirement for a contract for the payment of attorney’s fees?
• No. A contract for the payment of attorney’s fees is not required to be in writing or to be in any form.

What laws govern the retainer agreement including the payment of attorney’s fees?
• The contract will be governed by the general laws governing contracts, but it is also governed by the
Canons of Professional Responsibility.

What is the effect to the attorney’s fees if the retainer is void?

• Generally, if the contract is void, then the lawyer is not entitled to attorney’s fees. However, if the nullity
is based on the lack of authority of one of the contracting parties or to some irregularity in the form of the
contract, or to
the unreasonable amount of the attorney’s fees, then the lawyer will still be entitled to recover what is
justly due him based on quantum meruit.

What is a contract for contingent fee?

• A contract for contingent fee 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.
• In a contingent fee contract, the lawyer gets paid for his services only if he wins the case for the client
unless the client prevents the successful prosecution of the action, in which case the lawyer will be
entitled to recover on the basis of quantum meruit or to the full amount if the client acted in bad faith.

What is a contract for contingent fee?

• In these cases, the lawyer usually advances the expenses for the litigation because the usual clients with
a contingent fee contract are clients who are not in a financial capacity to finance his action.

Is a contingent fee contract allowed?

• Yes. A contingent fee contract is not prohibited by Art. 1491 (5) of the Civil Code because the fees will be
given after litigation.
• The validity of contingent fee contract will be based on its reasonableness under the circumstances.
• Note however that the court can reduce the amount of an unconscionable contingent fee to a
reasonable sum, even if the client manifests conformity to the amount. Note further that these contracts
are susceptible to abuse on the part of the lawyer as the lawyer effectively becomes financially interested
in the action, thus such contracts will be under the strict scrutiny of the courts.

What is a champertous contract?

• A champertous contract is one where the lawyer stipulates with his client that he will bear all the
expenses for the prosecution of the case, the recovery of things or property being claimed, and the latter
pays only upon successful
litigation.

Is a champertous contract valid?

• No. A champertous contract is void for being contrary to public policy.

Measure for Compensation

What will be the amount of attorney’s fees that will be paid by the client?
• The amount is subject to the stipulation of the parties. The client who wishes to reduce the amount or
the lawyer who seeks to increase the amount cannot simply disregard their agreement.

What is quantum meruit?

• Quantum meruit means “as much as the lawyer deserves” or “such amount which his services merit.”

When will the recovery of attorney’s fees be based on quantum meruit?

• When there is no express contract for the payment of attorney’s fees.
• When although there is a formal contract for attorney’s fees, the fees stipulated are found to be
unconscionable or unreasonable by the court.
• When the contract for attorney’s fees is void due to purely formal defects or execution.
• When the lawyer, for justifiable cause, was not able to finish the case to its conclusion.
• When the lawyer and the client disregard the contract for attorney’s fees.
• When the client dismissed his counsel before the termination of the case, or the latter withdrew
therefrom for valid reasons.

What are the factors to consider in determining the amount of attorney’s 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 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.

When a lawyer refers a client to another lawyer, is he entitled to attorney’s fees?

• No. “A lawyer shall, in case of referral, with the consent of the client, be entitled to a division of fees in
proportion to the work performed and responsibility assumed.” under Rule 20.02 presumes that the
lawyer who made the referral also performed some legal service for the referred client.

Procedure to Recover Fees

What is the procedure to recover unpaid attorney’s fees?
• The lawyer may assert his claim in the same action in which his services were rendered, or he can file a
separate case against the client for recovery of the unpaid attorney’s fees.
• Note however that the lawyer may apply so much of the client’s funds the come into his possession as
may be necessary to satisfy his fees giving notice promptly to his client (Rule 16.03). This provision
however presumes that the lawyer and the client has already agreed upon the amount of attorney’s fees.
If there is no agreement as the amount of attorney’s fees, then the lawyer cannot arbitrarily apply the
funds to pay his demanded attorney’s fees. The lawyer should file a case in court to determine the proper
amount of the attorney’s fees.

What court has jurisdiction in cases for recovery of attorney’s fees?

• It is well-settled that a claim for attorney’s fees may be asserted either in the very action in which the
services in question have been rendered, or in a separate action. If the first alternative is chosen, the
Court may pass upon said claim, even if its amount were less than the minimum prescribed by law for the
jurisdiction of the court over the subject-matter of the case, so long as the main action is within the
jurisdiction of said court, upon the theory that
the right to recover attorney’s fees is but an incident of the case in which the services of counsel have
been rendered. Jovenal R. Fernandez for petitioners. (Tolentino v. Escalona, G.R. No. L-26556, 1969)
• Note: A lawyer shall avoid controversies with clients concerning his compensation and shall resort to
judicial action only to prevent imposition, injustice or fraud. (Rule 20.04)

Attorney’s Fees as Damages

What is the s2nd concept of attorney’s fees?
• It is the amount of damages which the court may award to be paid by the losing party to the prevailing
party.

Are attorney’s fees paid by the client to the lawyer recoverable as damages called attorney’s fees?
• Aa a general rule. attorney’s fees paid by the party to his lawyer is not recoverable as damages. A
decision of the court will not automatically award attorney’s fees as damages.

When are attorney’s fees as damages awarded?

• ARTICLE 2208. In the absence of stipulation, attorney’s fees and expenses of litigation, other than
judicial costs, cannot be recovered, except:
(1) When exemplary damages are awarded;
(2) When the defendant’s act or omission has compelled the plaintiff to litigate with third persons
or to incur expenses to protect his interest;
(3) In criminal cases of malicious prosecution against the plaintiff;
(4) In case of a clearly unfounded civil action or proceeding against the plaintiff;
(5) Where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiff’s
plainly valid, just and demandable claim;
(6) In actions for legal support;
In actions for the recovery of wages of household helpers, laborers and skilled workers;
(8) In actions for indemnity under workmen’s compensation and employer’s liability
laws;
(9) In a separate civil action to recover civil liability arising from a crime;
(10) When at least double judicial costs are awarded;
(11) In any other case where the court deems it just and equitable that attorney’s fees and
expenses of litigation should be recovered.
• Note also that attorney’s fees as damages is only awarded if the party indeed retained a lawyer for the
case.
• If the party is represented by a government lawyer, then no attorney’s fees as
damages can be awarded.
• Note further that the award of attorney’s fees as damages is subject to the discretion of the court. It
must also be pleaded by the party seeking the award of attorney’s fees as damages.

Attorney’s Liens in General

What are the two kinds of attorney’s lien?
• A retaining lien and a charging lien.

What is a retaining lien?

• A retaining lien is the right of an attorney to retain the funds, documents and papers of his clients which
have lawfully come into his possession until his lawful fees and disbursements have been paid and to
apply such funds to the satisfaction thereof.
• Note that the lawyer cannot simply apply the funds to satisfy his claim. The client must give consent to
the application of the funds.

What is a charging lien?

• A charging lien is the right which the attorney has upon all judgments for the payment of money and
executions issued in pursuance thereof, secured in favor of the client.

Retaining Lien
What are the requisites for a valid retaining lien?
• In order that a retaining lien is valid the following requisites must be present:
- Attorney-client relationship.
- Lawful possession by the lawyer of the client’s funds, documents and papers in his professional
capacity.
- Unsatisfied claim for attorney’s fees or disbursements.

Is the client required to be notified by the lawyer for the retaining lien to be effective?
• No. It takes effect upon the lawful possession of the funds, documents and papers of the client by the
lawyer. Notice to the client or the adverse party is not required for the retaining lien to be effective.

Is the retaining lien dependent upon the success in the litigation where the lawyer represented the client?
• No. A retaining lien is effective regardless of the outcome of the case.

Is the retaining lien only effective on the funds, documents, and papers received by the lawyer for the
particular case he handled for the case?
• No. If the lawyer has in his possession funds, documents, and papers of the client for a different matter
he handled in his professional capacity, then the retaining lien is also effective on such funds, documents,
and papers.
• Note however that if the funds, documents, and papers were received by the lawyer in some different
capacity and not in his professional capacity as a lawyer, then there will be no retaining lien over those
funds, documents, and
papers, even if it belongs to a client who still owes him attorney’s fees.

Can the court compel the lawyer to deliver the funds, documents, and papers of the client that is subject
to a retaining lien?
• Generally, the court cannot compel the lawyer to surrender possession of the funds, documents, and
papers of the client without proof that the attorney’s fees of the lawyer is already satisfied.
• Note however that the court can require the client to post a bond to secure the payment of attorney’s
fees. In this case, the court can compel the lawyer to part with the funds, documents, and papers.

How is a retaining lien extinguished?

• It is extinguished once the lawyer parts with the possession of the funds, documents, and papers of his
client or offers them in evidence in court. (Villanueva v. Querubin, 1968)
• Note that if the funds, documents, and papers are illegally taken from the lawyer, then the retaining lien
is not extinguished. He may compel restoration of the funds, documents, and papers by mandamus.

How is a retaining lien satisfied?

• If the lawyer has in his possession the documents and papers of the client, then the lawyer must file the
necessary action to recover what is due him from his client.
• If the lawyer has in his possession the funds of the client and the client does not dispute the amount of
attorney’s fees, then the lawyer will simply apply the funds to satisfy his attorney’s fees and send an
accounting to the client.
This extinguishes the retaining lien.
• If the client questions the amount of attorney’s fees, the lawyer cannot simply apply the funds to satisfy
his attorney’s fees. The lawyer should file the necessary action or motion to fix the amount of fees, and
only after the same is adjudicated that he can apply the client’s funds to pay his attorney’s fees.

Charging Lien
What are the requisites for validity of a charging lien?
• There must be an attorney-client relationship.
• The attorney has rendered services.
• A money judgment favorable to the client has been secured in the action.
• The attorney has a claim for attorney’s fees or advances.
• A statement of his claim has been duly recorded in the case with notice thereof served upon the client
and the adverse party.
Is it required that the lawyer who asserts the charging lien is the one who secured the favorable
judgement for the client?
• No. It is enough that the lawyer rendered services at any stage of the proceeding to be entitled to a
charging lien recorded in the case to secure payment of a reasonable value of his services.

When is a charging lien effective?

• A charging lien takes effect from the time the attorney has caused a notice of his lien to be duly entered
in the record of the case. The operative fact that will make the charging lien effective is the recording of
claim of the lawyer
with copies duly served to the client and the adverse party. Compliance with the notice requirement is
necessary to make the charging lien effective.
• Note that the court must still have jurisdiction over the main case and that the judgment is not yet
satisfied at the time of the recording. A trial court has no jurisdiction to annotate a charging lien on
appeal.

What is the effect of a charging lien?

• A charging lien is a security on real or personal property. The lien gives the lawyer the right to collect, in
payment of his attorney’s fees and disbursements, a certain amount from out of the judgment or award
rendered in favor of his client.
• The client who receives the proceeds of a judgment holds the amount in trust for the lawyer to the
extent of the lawyer’s attorney’s fees.

How is a charging lien extinguished?

• A charging lien may be extinguished if the client loses the case because the charging lien will only attach
to the judgment in favor of the client.

Will the satisfaction of the judgment extinguish the charging lien?

• If the satisfaction has been in disregard of the lawyer’s right to his fees, then the satisfaction of the
judgment will not extinguish the charging lien. In this case, the court may, upon motion of the lawyer,
vacate the satisfaction of the
judgment and enforce the lien by issuing a writ of execution for the full amount against the judgment
debtor.

What are the distinctions between a retaining lien and a charging lien?
• As to nature:
RL = Passive lien. It cannot be actively enforced. It is a general lien.
CL = Active lien. It can be enforced by execution. It is a special lien.
• As to basis:
RL = Lawful possession of funds, documents and papers belonging to client.
CL = Securing of a favorable money judgment for client.
• As to coverage:
RT = Covers only funds, documents and papers in the lawful possession of the attorney by reason
of his professional employment.
CL = Covers all judgments for the payment of money and executions issued in pursuance of such
judgment.
• As to effectivity:
RL = As soon as the lawyer gets possession of the funds, documents and papers of the client.
CL = As soon as the claim for attorney’s fees had been entered into the records of the case.
• As to applicability:
RL = May be exercised before judgment or execution, or regardless thereof.
CL = Generally, it is exercisable only when the attorney had already secured a favorable judgment
for his client.
• As to notice:
RL = Client need not be notified to make it effective.
CL = Client and adverse party need to notified to make it effective.