BASIC LEGAL AND JUDICIAL ETHICS
Atty. Princess Hazel Griño
SECTION 23. Amicus curiae. — A lawyer shall not decline, without just cause, a request by any court,
tribunal, or other government agency to act as amicus curiae in any proceeding relating to the lawyer’s
expertise or field of specialization. (14.02a)
Rule 14.02 – A lawyer shall not decline appointment by the court or by the IBP.
The relation of attorney and client may be created by


Voluntary agreement between them
Appointment of an attorney as counsel de oficio for a poor or indigent litigant
It shall be the duty of the attorney so assigned to render the required service, unless he is excused therefrom
by the court for sufficient cause shown. (Legal and Judicial Ethics, Agpalo 2009, p. 178)
A court may assign an attorney to render professional aid free of charge to any party in case, if upon
investigation it appears that the party is destitute and unable to employ an attorney and that the services
of counsel are necessary to secure the ends of justice and to protect the rights of the party. It shall be the
duty of the attorney so assigned to render the required service, unless he is excused therefrom by the court
for sufficient cause shown. (Sec. 31, Rule 138, Rules of Court, as amended)
Counsel de Officio
A counsel de officio must be (a) a member of the bar in good standing; and, (b) any person, resident of the
province and of good repute for probity and ability, in localities without lawyers. (Sec. 7, Rule 116, Rules of
Court)
Considerations in appointing a Counsel de Officio
The following matters should be considered in the appointment of a counsel de officio:
1.
2.
3.
gravity of offense
difficulty of questions that may arise; and,
experience and ability of appointee
A counsel de officio must take the case not as a burden but as an opportunity to assist in the proper
dispensation of justice. No lawyer is to be excused from this responsibility except only for the most
compelling and cogent reasons.
Obviously, in the instant case, the aforenamed defense lawyers did not protect, much less uphold, the
fundamental rights of the accused. Instead, they haphazardly performed their function as counsel de officio
to the detriment and prejudice of the accused Sevilleno, however guilty he might have been found to be
after trial. (People v. Bermas, G.R. No. 120420, 21 Apr. 1999)
SECTION 24. Active involvement in legal education. — A lawyer shall keep abreast of legal developments,
participate in continuing legal education programs, and support efforts to achieve standards of excellence
in law schools as well as in the practical training of law students.
In addition, a lawyer shall assist the Integrated Bar of the Philippines, law schools, law alumni associations,
law associations, or civic organizations, in educating the public on the law and jurisprudence. (5a)
The IBP Chapters shall provide supervising lawyers to the legal aid clinics in their jurisdiction. (n)
CANON 5 A LAWYER SHALL KEEP ABREAST OF LEGAL DEVELOPMENTS, PARTICIPATE IN
CONTINUING LEGAL EDUCATION PROGRAMS, SUPPORT EFFORTS TO ACHIEVE HIGH
STANDARDS IN LAW SCHOOLS AS WELL AS IN THE PRACTICAL TRAINING OF LAW STUDENTS
AND ASSIST IN DISSEMINATING INFORMATION REGARDING THE LAW AND JURISPRUDENCE.
1| ATTY. PRINCESS HAZEL GRIÑO
(Basic Legal & Judicial Ethics)
BASIC LEGAL AND JUDICIAL ETHICS
Atty. Princess Hazel Griño
Three-fold obligation of a lawyer after admission to the practice
(a) (to himself) To continue improving his knowledge of the law
(b) (to the profession) To take an active interest in the maintenance of high standards of legal
obligation
(c) (to the public) To make the law a part of its social consciousness (Legal and Judicial Ethics,
Agpalo 2009, p. 80)
Attorneys should familiarize themselves with the rules and comply with their requirements. They also are
chargeable with notice of changes in the rules which have been held as including not only express
reglementary provisions but also a regular practice under the Rules of Court. (Zualo vs. CFI of Cebu, CAG.R. No. 27718-R, July 7, 1961)
Lawyers must support and encourage efforts for the achievement of high standards in law schools, in the
practical training of law students such as those involved in the clinical education program of law schools
approved by the Supreme Court. (Rule 138-A, Revised Rules of Court)
This duty carries with it the obligation to be well- informed of the existing laws and to keep abreast with
legal developments, recent enactment, and jurisprudence. It is imperative that they be conversant with the
basic legal principles.
Unless they faithfully comply with such duty, they may not be able to discharge competently and diligently
their obligations as members of the Bar. Worse, they may become susceptible to committing mistakes.
(Dulalia Jr. v. Cruz, A.C. No. 6854, 25 Apr. 2007, citing Santiago v. Rafanan, A.C. No. 6252, 05 Oct. 2004)
SECTION 25. Support for legal internship, apprenticeship and training. — To prepare the next generation of
lawyers for ethical practice, lawyers shall support legal internship and apprenticeship programs and accept
law students for training.
The lawyer shall treat the apprentices as junior colleagues and future counsels, and shall conscientiously
supervise them. (n)
SECTION 26. Prompt payment of membership dues. — A lawyer shall promptly pay the annual membership
dues in the Integrated Bar of the Philippines, unless expressly exempt from such payment by law or rules.
(n)
SECTION 27. Confidentiality of privileged communication. — A lawyer shall maintain the confidences of the
client, and shall respect data privacy laws. The duty of confidentiality shall continue even after the
termination of the lawyer- client engagement. (21a)
CANON 21 A LAWYER SHALL PRESERVE THE CONFIDENCE AND SECRETS OF HIS CLIENT EVEN
AFTER THE ATTORNEY-CLIENT RELATION IS TERMINATED
Secret – refers to the other information gained in the professional relationship that the client has requested
to be held inviolate or the disclosure of which would be embarrassing or would likely be detrimental to the
client. (Comments of the IBP Committee that drafted the Code)
Reason for the Canon: To encourage and inspire clients to tell all about the facts of their cases. (Legal Ethics,
Pineda 2009, p. 357)
Rule 21.02 – A lawyer shall not use client’s secrets without his consent
2| ATTY. PRINCESS HAZEL GRIÑO
(Basic Legal & Judicial Ethics)
BASIC LEGAL AND JUDICIAL ETHICS
Atty. Princess Hazel Griño
General Rule: A lawyer, who acquired information from a client in the course of his legal employment, is
prohibited from making use of such information, whether it is privileged or not.
Exception: If the client with full knowledge of the circumstances consents to the use thereof.
Exception to the Exception: In matters of unprivileged information, the lawyer may be judicially compelled
to make a disclosure even if the client objects
SECTION 28. Protecting client confidences. — A lawyer shall not reveal the confidences of the client,
including data from the client’s files, except;
(a) When a written informed consent is obtained from the client; (21.03a)
(b) When required by law, such as anti-money laundering statutes, or the Rules of Court;
(c) To the extent necessary, to collect the lawyer’s fees;
(d) In defense of the lawyer, or the lawyer’s employees or associates; or
(e) By judicial order, but only if material. (21.01a)
Rule 21.03 – A lawyer shall not give information from his files
General Rule: A lawyer shall not give information from his files to an outside agency seeking information
for auditing, statistical, bookkeeping, accounting, data processing or any similar purpose.
Exception: If the client gives his written consent.
Rule 21.01 – A lawyer shall not reveal the confidences and secrets of his client
The lawyer is only excused from the duty of preserving his client’s confidences and secrets in these
instances:
(a) When authorized by the client after acquainting him of the consequences of disclosure
Note: If the client had authorized his lawyer after having been fully informed of the consequences to reveal
his confidences or secrets, there is a waiver on the part of the said client to invoke the attorney-client
privilege. This waiver is sufficient.
However, the waiver of the client is not sufficient if the witness to be examined in regard to the privileged
communication is the lawyer’s secretary, stenographer or clerk involving facts acquired in such capacity.
In such a situation, the consent of the attorney is also required. (Rule 130, Sec. 24(b), Revised Rules of Court)
(b) When required by law
Note: When the law directs the lawyer to reveal the confidences and secrets of the client, the law prevails.
The privilege cannot be utilized as a weapon to frustrate the administration of justice or the enforcement
of the laws. (Legal Ethics, Pineda 2009, p. 358)
Reason: The lawyer cannot be professionally consulted on the commission of future crimes and frauds.
Hence, he is not estopped from making disclosures to proper authorities.
However, information on crimes and frauds already committed falls within the privilege and the lawyer
cannot reveal or be compelled to reveal the confidences of the client. (Legal Ethics, Pineda 2009, p. 360)
3| ATTY. PRINCESS HAZEL GRIÑO
(Basic Legal & Judicial Ethics)
BASIC LEGAL AND JUDICIAL ETHICS
Atty. Princess Hazel Griño
(c) When necessary to collect his fees or to defend himself, his employees or associates or by judicial action
Note: This exception is intended for the protection of the lawyer’s rights, his employees or associates –
whose rights cannot be suppressed by the use of the privilege. The lawyer however is permitted only to
make disclosures which are necessary for his action or defense and not go beyond which are necessary for
his action. (Legal Ethics, Pineda 2009, p. 360-361)
SECTION 29. Duty of confidentiality by former lawyers of a law firm. — A lawyer shall continue to be bound
by the rule on confidentiality pertaining to clients of his or her previous law office or law firm. (n)
SECTION 30. Duty of confidentiality of members of a law firm. — A lawyer may disclose the legal matters
entrusted by a client of the firm to the partners and associates, as well as paralegals, legal assistants, law
clerks, legal researchers, law interns, and other non-legal staff, who are or will be involved in the handling
of the client’s account, unless expressly prohibited by the client. (21.04a)
A lawyer directly entrusted with a client’s confidences shall adopt necessary measures to prevent other
members of the law firm, both legal and non-legal, to whom the client’s confidences have been shared,
from disclosing or using them, without the written informed consent of the client. (21.05a)
Rule 21.04 – A lawyer may disclose affairs of client to partners
General Rule: If a client engaged a law firm as counsel, and a lawyer of the firm is assigned to the case, the
lawyer may disclose the affairs of the client to the partners or associates.
Exception: The client has prohibited the lawyer from doing so.
Note: In a law firm, partners or associates usually consult one another involving their cases and some work
as a team. Consequently, it cannot be avoided that some information about the case received from the client
may be disclosed to the partners or associates. (Legal Ethics, Pineda 2009, p. 363)
Professional employment of a law firm is equivalent to retainer of members thereof. In a law firm,
partners or associates usually consult one another involving their cases and some work as a team.
Consequently, it cannot be avoided that some information about the case received from the client may be
disclosed to the partners or associates. (Agpalo, 2009)
Rule 21.05 – A lawyer shall adopt measures against disclosures of client’s secrets
To maintain the confidentiality of the client’s confidences and secrets, the lawyer must adopt measures as
will prevent those working under him from making disclosures or using said confidences and secrets.
(Legal Ethics, Pineda 2009, p. 363)
The lawyer is obliged to exercise care in selecting and training his employees so that the sanctity of all
confidences and secrets of his clients may be preserved. (Comments of the IBP Committee that drafted the
Code)
SECTION 31. Prohibition against filial disclosure. — A lawyer shall not discuss a client’s confidences even
with family members. (21.06a)
Rule 21.06 – A lawyer shall avoid indiscreet conversation about client’s affairs
A lawyer must not only preserve the confidences and secrets of his clients in his law office but also outside
including his home. He should avoid committing calculated indiscretion, that is, accidental revelation of
secrets obtained in his professional employment. (Legal Ethics, Pineda 2009, p 364)
4| ATTY. PRINCESS HAZEL GRIÑO
(Basic Legal & Judicial Ethics)
BASIC LEGAL AND JUDICIAL ETHICS
Atty. Princess Hazel Griño
SECTION 32. Non-disclosure of legal consultation. — A lawyer shall not reveal that he or she has been
consulted about a particular case except to avoid possible conflict of interest. (21.07a)
Rule 21.07 – A lawyer shall not reveal his having been consulted
General Rule: If a lawyer was consulted about a particular case, he should not reveal to others the matter
subject of consultation.
Exception: When lawyer will be placed in a situation of representing of conflicting interests if he does not
disclose the consultation to the next person consulting him on the same matter.
SECTION 33. Foreign lawyers. — Foreign lawyers cannot, directly or indirectly, practice law in the
Philippines. (n)
SECTION 34. Active participation in the development of the legal profession. — A lawyer shall participate in the
development of the legal system by initiating or supporting efforts in law reform, the improvement of the
administration of justice, strengthening the judicial and legal system, and advocacies in areas of special
concern such as the environment, indigenous peoples’ rights, human rights, access to justice and good
governance. (4a)
CANON 4 A LAWYER SHALL PARTICIPATE IN THE DEVELOPMENT OF THE LEGAL SYSTEM BY
INITIATING OR SUPPORTING EFFORTS IN LAW REFORM AND IN THE IMPROVEMENT OF THE
ADMINISTRATION OF JUSTICE.
It is every lawyer’s duty to improve the legal system in the country. Through collective efforts, lawyers can
contribute to the enhancement of the system by presenting position papers or resolutions for the
introduction of pertinent bills in Congress; petitions with the Supreme Court for the amendment for the
amendment of the Rules of Court or introduction of New Rules; petitions with the IBP and other forums
which have any relevant influence to the system. (Legal Ethics, Pineda 2009, p. 93)
By reason of education and experience, lawyers are especially qualified to recognize deficiencies in the
legal system and to initiate corrective measures therein.
Thus, they should participate in proposing and supporting legislation and programs to improve the
system, without regard to the general interests or desires of clients or former clients. (Ethical Consideration
8-1, 1978, Model Code of Professional Responsibility, American Bar Association)
Examples:
1.
2.
Presenting position papers or resolutions for the introduction of pertinent bills in Congress; or,
Petitions with the Supreme Court for the amendment of the Rules of Court.
Endorsement by a Lawyer
A lawyer may, with propriety, endorse a candidate and seek endorsement from other lawyers. A lawyer
should not use or attempt to use the power or prestige of the judicial office to secure such endorsement.
On the other hand, the lawyer whose endorsement is sought should have the courage and moral stamina
to refuse the request for endorsement if he believes the candidate lacks the essential qualifications for the
office or believes the opposing candidate is better qualified. (ABA Opinion 189 (1938); Funa, 2009)
5| ATTY. PRINCESS HAZEL GRIÑO
(Basic Legal & Judicial Ethics)
BASIC LEGAL AND JUDICIAL ETHICS
Atty. Princess Hazel Griño
SECTION 35. Limited Legal Services. — Limited Legal Services refer to services for a specific legal incident,
with the expectation by the lawyer and the client that the lawyer will not provide continuing legal services
in the matter. This includes being appointed as counsel de officio only for arraignment purposes or special
appearances to make any court submission, to give advice, to draft legal documents, to provide legal
assistance before courts or administrative bodies, and the like. (Canada Rules, Rule 3.4-2A)
In all instances, the lawyer shall state that the service being rendered is in the nature of Limited Legal
Services.
A lawyer who renders Limited Legal Services shall be entitled to compensation as may be agreed upon or
provided by the Rules of Court. (n)
SECTION 36. Pro bono Limited Legal Services. — A lawyer appointed by the court as counsel de oficio shall
not refuse to render Limited Legal Services pro bono on the ground of conflict of interest. Instead, the
lawyer shall disclose to all affected parties such conflict of interest. (n)
In any case, the lawyer may not refuse to render such pro bono legal services to the person concerned if
only to the extent necessary to safeguard the latter’s fundamental rights and not to deprive such person of
remedies available under the law or rules. (2.02a)
A lawyer currently serving in the government shall not be exempt from pro bono service and may be
appointed by any court, tribunal, or other government agency as counsel de officio, unless prohibited by
law, or the applicable Civil Service rules and regulations, or when there is a conflict of interest with
government. (n)
Rule 2.02 – Not refuse to render legal advice
Even if a lawyer does not accept a case, he shall not refuse to render legal advice to the person concerned
if only to the extent necessary to safeguard the latter’s interests, such as advising him what preliminary
steps to take, until he shall have secured the services of counsel.
Note: A lawyer must refrain from giving legal advice if the reason for not accepting the case is that he labours under
a conflict of interests between him and a prospective client or between a present client and a prospective client. (Rule
14.03, Code of Professional Responsibility)
Rendering of Legal Advice includes preliminary steps that should be taken, at least, until the person
concerned has obtained the services of a proper counsel’s representation. Even though no attorney- client
relationship is created between the parties, the lawyer, by providing interim advice, preserves the dignity
of the profession by inspiring public faith in the profession. (CPR Annotated, PhilJA)
SECTION 37. Duty of confidentiality in Limited Legal Services. — A lawyer who provides Limited Legal
Services must protect the client’s private confidences to the same extent as if engaged under regular terms.
(Canada Rules, Rule 3.4-2D) (n)
SECTION 38. Termination of Limited Legal Services. — Unless governed by Canon III, Section 36, a lawyer
must cease to provide Limited Legal Services to a client when the lawyer becomes aware that there may be
an actual or potential conflict of interest, except with the written informed consent of the client. (Canada
Rules, Rule 3.4-2C)
In all cases, the Limited Legal Services terminates upon the completion of such services. (n)
SECTION 39. Limited Legal Services of law student practitioners. — The Limited Legal Services rendered by a
law student practitioner under the Clinical Legal Education Program shall be governed by the CPRA. (n)
6| ATTY. PRINCESS HAZEL GRIÑO
(Basic Legal & Judicial Ethics)
BASIC LEGAL AND JUDICIAL ETHICS
Atty. Princess Hazel Griño
SECTION 40. Accountability of legal clinic director and supervising lawyer. — A law student clinic director and
supervising lawyer, under Rule 138-A of the Rules of Court shall provide meaningful training to law
students. They shall assume responsibility for any work performed by the law student while under their
supervision and shall comply with all the laws, rules, and guidelines pertaining to Law Student Practice.
(n)
SECTION 41. Fair and reasonable fees. — A lawyer shall charge only fair and reasonable fees. (20)
Attorney’s fees shall be deemed fair and reasonable if determined based on the following factors:
(a) The time spent and the extent of the service rendered or required;
(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;
(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)
NOTE: Entitlement to lawyer’s fees is presumed. (Funa, 2009)
Unless otherwise expressly stipulated, rendition of professional services by a lawyer is for a fee or
compensation and is not gratuitous. (Research and Services Realty, Inc. v. CA, G.R. No. 124074, 27 Jan. 1997)
Rule 20.01 – A lawyer shall be guided accordingly in determining his fees
Two concepts of attorney’s fees:
1. Ordinary – the reasonable compensation paid to the lawyer for the legal services he had rendered in
favor of his client. The basis of this compensation is the fact of employment by the client.
2. Extraordinary – an indemnity for damages ordered by the court to be paid by the losing party to the
prevailing party in a litigation in cases authorized by law and is payable not to the lawyer but to the client
unless there is an agreement that the award shall pertain to the lawyer as an additional compensation or as
part thereof.
In determining his fees, a lawyer shall be guided by the following factors:
7| ATTY. PRINCESS HAZEL GRIÑO
(Basic Legal & Judicial Ethics)
BASIC LEGAL AND JUDICIAL ETHICS
Atty. Princess Hazel Griño
1.
2.
3.
4.
5.
6.
The time spent and the extent of the services rendered or required;
The novelty and difficulty of the questions involved;
The importance of the subject matter;
The skill demanded;
The probability of losing other employment as a result of acceptance of the proffered case;
The customary charges for similar services and the schedule of fees of the IBP chapter to which
he belongs;
7. The amount involved in the controversy and the benefits resulting to the client form the service;
8. The contingency or certainty of compensation;
9. The character of the employment, whether occasional or established; and
10. The professional standing of the lawyer.
The fact of employment as lawyer by the client constitutes the legal basis of the lawyer’s rights to demand
payment for his services. No formal contract is necessary to effectuate employment. (Legal Ethics, Pineda
2009, p. 316)
Quantum meruit – means “as much as he has deserved”, a legal mechanism in legal ethics which prevents
an unscrupulous client from running away with the fruits of the legal services of a counsel without paying
therefor.
Recovery of attorney’s fees on the basis of quantum meruit is authorized when:
(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 fees stipulated 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 the lawyer and client disregard the contract for attorney’s fees (Legal Ethics, Pineda 2009, p. 326)
When fee is reasonable – The fee is reasonable if it is within the capacity of the client to pay, and is directly
commensurate with the value of the legal services rendered. (Legal Ethics, Pineda 2009, p. 340)
When fee is unconscionable – To be unconscionable, the amount contracted for must be such that no man
in his right senses would offer on the one hand and no honest fair man would accept on the other. (Legal
Ethics, Pineda 2009, p. 340)
NOTE: Generally, the amount of attorney’s fees due is that stipulated in the retainer agreement which is
conclusive as to the amount of lawyer’s compensation (Funa, 2009) unless the stipulated amount in the
written contract is found by the court to be unconscionable or unreasonable. (Sec. 24, Rule 138, Rules of
Court, as amended)
In the absence thereof, the amount of attorney’s fees is fixed on the basis of quantum meruit. (Sesbreno v.
Court of Appeals, G.R. No. 117438, 08 June 1995; Funa, 2009)
Fixed or Absolute Fee. It refers to that which remains payable regardless of the result of the case.
1.
2.
3.
4.
A fixed fee payable per appearance
A fixed fee computed upon the number of hours spent
A fixed fee based on piece work
Combination of any of the above
Contingent Fee. It refers to that which is conditioned on the securing of a favorable judgment and recovery
of money or property and the amount of which may be on a percentage basis.
8| ATTY. PRINCESS HAZEL GRIÑO
(Basic Legal & Judicial Ethics)
BASIC LEGAL AND JUDICIAL ETHICS
Atty. Princess Hazel Griño
Requisites for the Accrual of Attorney’s Fees
For the accrual of attorney’s fees to take place, the following requisites must be present:
1. the existence of the attorney-client relationship; and,
2. the rendition by the lawyer of services to the client.
NOTE: A pauper, while exempted from payment of legal fees is not exempted from payment of attorney’s
fees. (Cristobal v. Employees’ Compensation Commission, G.R. No. L-49280, 26 Feb. 1981)
Factors in determining the Attorney’s Fees (1994, 2015 BAR)
In determining what is fair and reasonable, a lawyer shall be guided by the following factors: (S-T-I-P-SN-A-C-C-C)
1.
2.
3.
4.
5.
6.
7.
8.
Skill demanded;
Time spent and the extent of the services rendered or required;
Importance of the subject matter;
Probability of losing other employment as a result of acceptance of the proffered case;
Professional Standing of the lawyer;
Novelty and difficulty of the questions involved;
Amount involved in the controversy and the benefits resulting to the client from the services;
Customary Charges for similar services and the schedule of fees of the IBP chapter to which he
belongs;
9. Contingency or certainty of compensation; and
10. Character of the employment, whether occasional or established. (Rule 20.01)
NOTE: Imposition of interest in the payment of attorney’s fees is not justified. (Funa, 2009)
Contracts for attorney’s services in this jurisdiction stands upon an entirely different footing from other
contract for the payment of compensation for any other services. (Mambulao Lumber Co. v. Philippine National
Bank, G.R. No. L-22973, 30 Jan. 1968)
Factors to consider in determining the amount of attorney’s fees in the absence of any fee arrangement
(T-I-N-S)
1.
2.
3.
4.
Time spent and the services rendered or required. A lawyer is justified in fixing higher fees when the
case is so complicated and requires more time and effort in fixing it.
Importance of subject matter. The more important the subject matter or the bigger the value of the
interest of the property in litigation, the higher is the attorney’s fees.
Novelty and difficulty of questions involved. When the questions in a case are novel and difficult,
greater effort, deeper study and research are bound to burn the lawyer’s time and stamina
considering that there are no local precedents to rely upon.
Skill demanded of a lawyer. The totality of the lawyer’s experience provides him skill and competence
admired in lawyers.
Different Types of Fee Arrangements
1. Retainer’s fee where the lawyer is paid for services for an agreed amount for the case.
a. General – the fee paid to a lawyer to secure his future services as general counsel for any ordinary legal
problem that may arise in the routinary business of the client and referred to him for legal action.
b. Special – a fee for a specific case handled or special service rendered by the lawyer for a client. If for every
case there is a separate and independent contract for attorney's fees, each fee is considered a special retainer.
(Traders Royal Bank Employees Union- Independent v. NLRC and Cruz, G.R. No. 120592, 14 Mar. 1997)
The lawyer agrees to be paid per court appearance.
9| ATTY. PRINCESS HAZEL GRIÑO
(Basic Legal & Judicial Ethics)
BASIC LEGAL AND JUDICIAL ETHICS
Atty. Princess Hazel Griño
Contingent fee where the lawyer is paid for his services depending on the success of the case. This applies
usually in civil suits for money or property where the lawyer’s fee is taken from the award granted by the
court.
Attorney de officio. The attorney is appointed by the court to defend the indigent litigant in a criminal case.
The client is not bound to pay the attorney for his services although he may be paid a nominal fee taken
from a public fund appropriated for the purpose.
Legal aid. The attorney renders legal services for those who could not afford to engage the services of paid
counsel.
Quantum meruit basis. If there is no specific contract between the lawyer and the client, the lawyer is paid
on quantum meruit basis, that is, what the lawyer deserves for his services.
NOTE: When the claim for entitlement to attorney's fees is contingent, but no written agreement has been
executed bearing the supposed contingent fees, the only way to determine the same is to apply the principle
of quantum meruit. 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 it also avoids unjust enrichment on the part of the attorney himself. (National Power Corporation v.
Heirs of Sangkay, G.R. No. 165828, 24 Aug. 2011)
Rationale behind the Rule that the Court may reduce Unconscionable Attorney’s Fees
1.
2.
A lawyer is primarily an officer of the court; hence, attorney’s fees should be subject to judicial
control.
Sound public policy demands that courts disregard stipulations for attorney’s fees when they
appear to be a source of speculative profit at the expense of the debtor or mortgagor. (Borcena v.
IAC, et. al., G.R. No. 70099, 07 Jan. 1987)
NOTE: A trial judge may not order the reduction of the attorney’s fees on the ground that the attorney
is“below average standard of a lawyer.” The opinion of the judge as to the capacity of a lawyer is not a
basis of the right to a lawyer’s fees. (Fernandez v. Hon. Bello, G.R. No. L-14277, 30 Apr. 1960)
CONTINGENCY FEE ARRANGEMENTS
Contingency Fee Contract
One which stipulates that the lawyer will be paid for his legal services only if the suit or litigation ends
favorably to the client. (Taganas v. NLRC, G.R. No. 118746, 07 Sept. 1995)
It is like a contract subject to a suspensive condition wherein the obligation to pay the counsel is based
upon the outcome of the case. (Pineda, 2009)
A contingent fee arrangement is valid in this jurisdiction and is generally recognized as valid and binding
but must be in an express contract. The amount of contingent fee agreed upon by the parties is subject to
the stipulation that counsel will be paid for his legal services only if the suit or litigation prospers. A much
higher compensation is allowed as contingent fee in consideration of the risk that the lawyer may get
nothing if the suit fails. (Rayos v. Atty. Hernandez, G.R. No. 169079, 12 Feb. 2007)
Rationale for Contingent Fee Contracts
Contracts of this nature (contingent fee contract) are permitted because they redound to the benefit of the
poor client and the lawyer especially in cases where the client has meritorious cause of action, but no means
with which to pay for the legal services unless he can, with the sanction of law, make a contract for a
contingent fee to be paid out of the proceeds of the litigation. (Rayos v. Atty. Hernandez, G.R. No. 169079, 12
Feb. 2007)
Limitation of the Stipulation regarding Contingent Fee Contract
10| ATTY. PRINCESS HAZEL GRIÑO
(Basic Legal & Judicial Ethics)
BASIC LEGAL AND JUDICIAL ETHICS
Atty. Princess Hazel Griño
It must be reasonable based on the circumstance of the case. Contingent fee contracts are under the
supervision and close scrutiny of the court in order that clients may be protected from unjust charges. Its
validity depends on the measure of reasonableness of the stipulated fees under the circumstances of the
case. Stipulated attorney’s fees must not be unconscionable wherein the amount is by far so
disproportionate compared to the value of the services rendered as to amount to fraud perpetrated to the
client. (Sesbreno v. CA, G.R. No. 117438, 08 June 1995)
Champertous Contract
It is one where the lawyer stipulates with his client in the prosecution of the case that 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 or property recovered as compensation. (Baltazar et al. v. Bañez, A.C. No.
9091, 11 Dec. 2013)
A champertous contract is considered VOID.
It is void due to public policy, because it would make him acquire a stake in the outcome of the litigation
which might lead him to place his own interest above that of the client. (Bautista v. Gonzales, A.M. No.
1625, 12 Feb. 1990)
Contingent vs. Champertous Contract
Contingent
Champertous Contract
As to the Manner of Payment
Payable in cash - dependent on the success of the
Payable in kind – a portion of the thing or property
litigation
recovered as compensation
As to the Extent of Undertaking
Lawyers do not undertake to pay all expenses of
Lawyers undertake to pay all expenses of litigation
litigation
As to Validity
Valid
Void
11| ATTY. PRINCESS HAZEL GRIÑO
(Basic Legal & Judicial Ethics)