Ethics (Lien, Fees, Contracts Summary)

8/13/2019 Ethics (Lien, Fees, Contracts Summary)

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RETAINING LIEN

A right merely to retain the funds, documents and papers of his client which have lawfully come

into his possession and may retain the same until his lawful fees and disbursements have been paid

Re!uisites for validity

" attorney#client relationship

$ lawful possession by lawyer of the client%s funds, documents and papers in his

professional capacity

& unsatisfied claim for attorney%s fees or disbursements

'(ARGING LIEN

An e!uitable right to have the fees and lawful disbursements due a lawyer for his services, secured to

him out of a money )udgment

Re!uisites for validity

" attorney#client relationship

$ attorney has rendered services

& money )udgment favorable to the client has been secured in the action

* attorney has a claim for attorney%s fees or advances+ statement of his claim has been duly recorded in the case with notice thereof served upon

the client and adverse party

Every lawyer has the responsibility to protect and advance the interests of his client such that he must

promptly account for whatever money or property his client may have entrusted to him As a mere

trustee of said money or property, he must hold them separate from that of his own and mae sure

that they are used for their intended purpose If not used, he must return the money or property

immediately to his client upon demand, otherwise the lawyer shall be presumed to have

misappropriated the same in violation of the trust reposed on him A lawyer%s conversion of funds

entrusted to him is a gross violation of professional ethics -Arellano .niversity, Inc v /i)ares III, 01+

2'RA 3& 4$11356

Rule "&7, 2ec $* 'ompensation of attorneys An attorney shall be entitled to have and recover from

his client no more than a reasonable compensation for his services, with a view to the importance of

the sub)ect matter of the controversy, the e8tent of the services rendered, and the professional standing

of the attorney No court shall be bound by the opinion of attorneys as e8pert witnesses as to the

proper compensation, but may disregard such testimony and base its conclusion on its own professional

nowledge A written contract for services shall control the amount to be paid therefore unless found

by the court to be unconscionable or unreasonable

Right to compensation

In the absence of an e8press contract -for attorney%s fee6, payment of attorney%s fees may be )ustified byvirtue of the innominate contract of facio ut des 4I do and you give5 which is based on the principle

that 9no one shall enrich himself at the e8pense of another -'orpu: v 'A, GR No L#*1*$*, 4;une &1, "37156

The 'ounsel if worthy of his hire, is entitled to be fully recompensed for his services


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Authori:ed when?

" there is no e8press contract for attorney%s fees agreed upon between the lawyer and the client@

$ when although there is a formal contract of attorney%s fees, the stipulated fees are found

unconscionable or unreasonable by the court@

& when the contract for attorney%s fees is void due to purely formal matters or defects of

e8ecution@

* when the counsel, for )ustifiable cause, was not able to finish the case to its conclusion@

+ when lawyer and client disregard the contract of attorney%s fees

0 when there is a contract but no stipulation as to attorney%s fees

Guides in etermining AttorneyBs Cees in >uantum /eruit Dasis

" Time spent and E8tent of the 2ervices Rendered A lawyer is )ustified in fi8ing higher fees

when the case is so complicated and re!uires more time and efforts to finish it

$ Importance of 2ub)ect /atter The more important the sub)ect matter or the bigger value of

the interest or property in litigation, the higher is the attorney%s fee

& Novelty and ifficulty of >uestions Involved


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unconscionable or reasonable

According to )urisprudence, the court may also tae into consideration the client%s capacity to pay

/odes of payment

A fi8ed 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 )udgment and recovery

of money or property and the amount of which may be on a percentage basis

A fi8ed fee payable per appearance

A fi8ed fee computed by the number of hours spent

A fi8ed fee based on a piece of wor

A combination of any of the above stipulated fees

'ompensation to which Lawyer is Entitled epending on (is 'apacity

'ounsel de Farte (e is entitled to a reasonable attorney%s fees agreed upon or in the absence

thereof, on !uantum meruit basis

'ounsel de ficio The counsel may not demand from the accused attorney%s fees even if he wins thecase (e may however collect from the government funds if available based on the

amount fi8ed by the court

Amicus 'uriae not entitled to attorney%s fees

'ounsel de officio # A counsel, appointed or assigned by the court, from among members of the Dar

in good standing who, by reason of their e8perience and ability, may

ade!uately defend the accused

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Ethics (Lien, Fees, Contracts Summary)