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NOEL GRETARE
Bagundang, Zaidamin D. Problem Areas in Legal Ethics
Harun, Jehan V.
Maulana, Princess Joy M.
Mansilla, Andrei Casimiro A.
Jamon, Lilybeth B.
ATTORNEYS FEES
I. In general
Definition:
- He must not only show that the case falls under any of the
exceptions that may warrant the award thereof; he must have
employed and, in the case of a public litigant, must show his
right to employ a private counsel as well.
- For this reason, a successful litigant who prosecuted his action
without the assistance of counsel is not entitled to the award of
1
attorneys fees.
III. CANON 20 A lawyer shall charge only fair and reasonable fees.
IV. 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.
V. 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.
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 decision should state the reason why the award is made,
unless the text thereof plainly shows the case comes within one
of the exceptions.
- A statement by the trial court that it considers it just and
equitable to require the payment of attorneys fees because the
claim set up or the defense raised is untenable is insufficient to
justify the award.
IX. Pleading and practice.
2
Jimenes v. Bucoy, 193 Phil. 40 (1958)
3
Art. 2208, Civil Code of the Philippines.
4
Rizal surety & Ins. Co. v. Court of Appeals, 20 SCRA 61 (1967)
GROUP 5 ATTY. NOEL GRETARE
Bagundang, Zaidamin D. Problem Areas in Legal Ethics
Harun, Jehan V.
Maulana, Princess Joy M.
Mansilla, Andrei Casimiro A.
Jamon, Lilybeth B.
- The claim for attorneys fee in the concept of damages and the
ground relied upon must be pleaded. In the absence of such
allegation, neither the trial court nor the appellate court may
grant attorneys fees. 5
- To merit the award of attorneys fees as item of damages, the
amount thereof must be proved and it must be specifically
prayed for, not just in such other relief and remedy as the court
may dee, just and equitable. 6
- For it is settled that the award of attorneys fee is the exception
rather than the rule; hence, the trial court should make
findings of fact and law, which would bring the case within the
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exception and justify the award.
X. JURISPRUDENCE
It is settled that a claim for attorneys fees may be asserted either in the
very action in which a lawyer rendered his services or in a separate action.
But enforcing it in the main case bodes well as it forestalls multiplicity of
suits. The intestate court in this case, therefore, correctly allowed Atty.
Siapian to interject his claim for attorneys fees in the estate proceedings
against some of the heirs and, after hearing, adjudicate the same on April 3,
1997 with an order for Arturo, et al to pay Atty. Siapian the fees of P3
million due him. Since the award of P3 million in attorneys fees in favor of
Atty. Siapian had already become final and executory, the intestate court
was within its powers to order the Register of Deeds to annotate his lien on
the Estates titles to its properties. The Estate has no cause for complaint
since the lien was neither a claim nor a burden against the Estate itself. It
was not enforceable against the Estate but only against Arturo, et al, who
constituted the majority of the heirs.
5
Enecillat v. Magsaysay, 17 SCRA 125 (1966); PNB v. CA, 256 SCRA 491 (1996)
6
Trans-Asia Shipping Lines, Inc. v. Court of Appeals, 69 SCRAD 40, 254 SCRA 260 (1996)
7
SCC Chemical Corp. v. CA, G.R. No. 128538, Feb. 28, 2001.
GROUP 5 ATTY. NOEL GRETARE
Bagundang, Zaidamin D. Problem Areas in Legal Ethics
Harun, Jehan V.
Maulana, Princess Joy M.
Mansilla, Andrei Casimiro A.
Jamon, Lilybeth B.
It is settled that the award of attorneys fees is the exception rather than
the general rule; counsels fees are not awarded every time a party prevails
in a suit because of the policy that no premium should be placed on the
right to litigate. Attorneys fees, as part of damages, are not necessarily
equated to the amount paid by a litigant to a lawyer. In the ordinary sense,
attorneys fees represent the reasonable compensation paid to a lawyer by
his client for the legal services he has rendered to the latter; while in its
extraordinary concept, they may be awarded by the court as indemnity for
damages to be paid by the losing party to the prevailing party. Attorneys
fees as part of damages are awarded only in the instances specified in
Article 2208 of the Civil Code. As such, it is necessary for the court to make
findings of fact and law that would bring the case within the ambit of these
enumerated instances to justify the grant of such award, and in all cases it
must be reasonable.
There are two commonly accepted concepts of attorney's fees, the so-called
ordinary and extraordinary. In its ordinary concept, an attorney's fee is the
reasonable compensation paid to a lawyer by his client for the legal services
he has rendered to the latter. The basis of this compensation is the fact of
his employment by and his agreement with the client.
With respect to the first situation, the remedy for recovering attorney's fees
as an incident of the main action may be availed of only when something is
due to the client. Attorney's fees cannot be determined until after the main
litigation has been decided and the subject of the recovery is at the
disposition of the court. The issue over attorney's fees only arises when
something has been recovered from which the fee is to be paid.
GROUP 5 ATTY. NOEL GRETARE
Bagundang, Zaidamin D. Problem Areas in Legal Ethics
Harun, Jehan V.
Maulana, Princess Joy M.
Mansilla, Andrei Casimiro A.
Jamon, Lilybeth B.
While a claim for attorney's fees may be filed before the judgment is
rendered, 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 to be made by the courts will be premature.
Of course, 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.