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COMPENSATION OF
ATTORNEY
TWO CONCEPTS OF ATTORNEY’S
FEES
EXCEPTION
- It is not alone to see that the lawyer acts in proper and lawful
manner; it is also its duty to see that the lawyer is paid his just
fees.
Quantm meruit means as the lawyer deserves or such amount which his services
merit.
When recovery on the basis of quantum meruit is authorized?
(1) when there is no express contract for payment of attorney’s fees;
(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 defects of
execution;
(4) when the lawyer, for justifiable cause, was not able to finish thecase to its
conclusion;
(5) when the lawyer and the client disregard the contract for attorney’s fees, and
(6) when the client dismissed his counsel before the termination of the case or
the latter withdrew therefrom for valid reasons.
QUANTUM MERUIT
Quantm meruit means as the lawyer deserves or such amount which his services
merit.
When recovery on the basis of quantum meruit is authorized?
(1) when there is no express contract for payment of attorney’s fees;
(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 defects of
execution;
(4) when the lawyer, for justifiable cause, was not able to finish thecase to its
conclusion;
(5) when the lawyer and the client disregard the contract for attorney’s fees, and
(6) when the client dismissed his counsel before the termination of the case or
the latter withdrew therefrom for valid reasons.
WHO IS LIABLE FOR ATTORNEY’S
FEES?
General Rule:
The general rule is that only the client who engaged the
services of counsel either personally or through an authorized agent
is liable for the attorney’s fees.
Exception:
A person who accepts the benefits of the legal representation impliedly agrees
to pay the lawyer’s services for he may not unjustly enrich himself at
the expense of the lawyer.
LIABILITY OF ASSIGNEE.
The assignee may be held liable for counsel fees from out of the
proceeds of a favorable judgment. That obligation gives the
assignee the right to intervene in the matter of fixing the amount
of fees which may be a proper charge against the judgment
rendered in the action.
LIABILITY IN LABOR CASES.
Exception:
A lawyer who acted as counsel for an administrator to secure
the invalidation of a will may have his fees charged against the
estate if its disapproval would mean bigger share in the
inheritance of the administrator as an heir and other heirs
similarly situated.
WHO ARE ENTITLED TO OR TO
SHARE IN ATTORNEY’S FEES.
1. General retainer- is 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. The future services of the lawyer are secured
and committed to the to the retaining client.
2. Special retainer- a fee for a specific case handled or special
service rendered by the lawyer for a client. A client may have several
cases demanding special or individual attention. If for every case
there is a separate and independent contract for attorney’s fees,
each fee is considered a special retainer.
EFFECT OF NULLITY OF
CONTRACT.
1.Agreement;
2. Quantum meruit
(a) the agreement as
to counsel fees is invalid for some reason other than the illegality of
the object of performance; (b) the amount stipulated in the contract
is unconscionable; (c) no agreement as to fees exists between the
parties; (d) the client rejects the amount fixed in the contract as
unconscionable and is found to be so; and (e) some act or event has
precluded the lawyer from concluding the litigation without fault on
his part; and (f) the client has dismissed
FACTORS TAKEN INTO ACCOUNT.
GR:
The general rule is that attorney’s fees in the concept of
damages are not recoverable.
Exceptions:
1. When there is agreement.
2. When exemplary damages are awarded.
3. When defendants action or omission compelled plaintiff to
litigate.
4. In criminal cases of malicious prosecution.
5. When the action is clearly unfounded.
6. When defendant acted in gross and evident bad faith
7. In actions for support.
8. In cases of recovery of wages
9. In actions for indemnity under workmen’s compensation
and employee’s liability laws.
10. In a separate civil action arising from a crime.
11. When at least double costs are awarded.
12. When the court deems it just and equitable
13. When a special law so authorizes.
RIGHT TO PRIVATE COUNSEL A
PRECONDITION.