CONTRACT FOR

ATTORNEY’S FEES
ORAL OR IN
WRITING
FEE STIPULATED
MAY BE
ABSOLUTE OR
CONTINGENT
A RETAINER MAY
BE GENERAL OR
SPECIAL
 EFFECT OF
UNCONSCIONABILITY OF
AMOUNT OF ATTORNEY’S FEES

INVALID IF
AMOUNT IS
UNCONCIONABLE
 Kinds of Payment which may be
stipulated upon:

• a fixed or absolute fee which is payable

regardless of the result of the case
• 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
• a fixed fee payable per appearance
• a fixed fee computed by the number of hours
spent
• a fixed fee based on a piece of work
Note: CONTINGENT
FEE
AN AGREEMENT IN WRITING
IN WHICH THE FEE, USUALLY A
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
 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.
The rules of the profession
forbid a lawyer from
agreeing to pay or bear the
expenses of litigation. He
may, however, in good faith
advance the expenses as a
matter of convenience but
subject to reimbursement.
Rule on interpretation of a
professional contract –

General rule, to adopt such

construction as would be more
favorable to the client even if it
would work prejudice to the
lawyer.
QUANTUM MERUIT –
“AS MUCH AS A LAWYER
DESERVES” 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.
FACTORS TAKEN INTO
ACCOUNT:
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;
FACTORS TAKEN INTO
ACCOUNT:

(b) the novelty and

difficulty of the
questions involved;
FACTORS TAKEN INTO
ACCOUNT:

(c) The importance of

the subject matter;
FACTORS TAKEN INTO
ACCOUNT:

(d) The skill

demanded;
(Note: length of practice is not a
safe criterion of professional
ability.)
FACTORS TAKEN INTO
ACCOUNT:

e) The probability of
losing other employment
as a result of acceptance
of the proffered case;
FACTORS TAKEN INTO
ACCOUNT:

(f) The customary charges

for similar services and
the schedule of fees of
the IBP chapter to which
he belongs;
FACTORS TAKEN INTO
ACCOUNT:

(g) The amount involved

in the controversy and
the benefits resulting to
the client from the
service;
FACTORS TAKEN INTO
ACCOUNT:

(h) The contingency

or certainty of
compensation;
FACTORS TAKEN INTO
ACCOUNT:

(i) The character of

the employment,
whether occasional or
established; and
FACTORS TAKEN INTO
ACCOUNT:

(j) The professional

standing of the
lawyer.
 Quantum Meruit is resorted
to where:
• there is no express contract for
payment of attorney’s fees agreed
upon between the lawyer and the
client;
• when although there is a formal
contract for attorney’s fees, the
stipulated fees are found
unconscionable or unreasonable by
the court.
 Quantum Meruit is resorted
to where:
• When the contract for attorney’s
fees is void due to purely formal
matters or defects of execution
• When the counsel, for justifiable
cause, was not able to finish the case
to its conclusion
• When lawyer and client disregard the
contract for attorney’s fees.
Attorney; attorney’s fees. The issue of
the reasonable legal fees due to
respondent still needs to be resolved in
a trial on the merits with the following
integral sub-issues: (1) the
reasonableness of the 10% contingent
fee given that the recovery of Tiwi’s
share [in unpaid realty taxes] was not
solely attributable to the legal services
rendered by respondent...
(2) the nature, extent of legal work, and
significance of the cases allegedly handled by
respondent which reasonably contributed,
directly or indirectly, to the recovery of Tiwi’s
share, and (3) the relative benefit derived by
Tiwi from the services rendered by
respondent. The amount of reasonable
attorney’s fees finally determined by the trial
court should be without legal interest in line
with well-settled jurisprudence. Municipality of
Tiwi, represented by Hon. Mayor Jaime C.
Villanueva and Sangguniang Bayan of Tiwi Vs.
Antonio B. Betito, G.R. No. 171873, July 9,
2010.
 Note:
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.
Myrna, petitioner in case for custody of children
against her husband, sought advice from Atty.
Mendoza whom she met at a party. She informed
Atty. Fernandez that her lawyer, Atty. Khan, has
been charging her exorbitant appearance fees when
all he does is move for postponements which have
unduly delayed the proceedings; and that recently,
she learned that Atty. Khan approached her husband
asking for a huge amount in exchange for the
withdrawal of her Motion for issuance of Hold
Departure Order so that he and his children can leave
for abroad.
1. Is it ethical for Atty. Mendoza to advise Myrna
to terminate the services of Atty. Khan and hire him
instead for a reasonable attorney's fees? How should
reasonable fees be interpreted?
2. What should Atty. Mendoza do about the
information relayed to him by Myrna that Atty. Khan
approached her husband with an indecent proposal?