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Question No. 1

Mrs. Amy Dizon's husband was killed in a traffic accident. She approached Atty. Larry Rio to handle her case against the bus company without paying any retainer fees or expenses, with the condition that he receives 33% of any damages awarded. [1] The Supreme Court has ruled such arrangements where the lawyer pays expenses as "champertous" and invalid. [2] However, a contingent fee of 33% may be reasonable depending on the circumstances of the case such as how long it is litigated. [3]

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0% found this document useful (0 votes)
32 views7 pages

Question No. 1

Mrs. Amy Dizon's husband was killed in a traffic accident. She approached Atty. Larry Rio to handle her case against the bus company without paying any retainer fees or expenses, with the condition that he receives 33% of any damages awarded. [1] The Supreme Court has ruled such arrangements where the lawyer pays expenses as "champertous" and invalid. [2] However, a contingent fee of 33% may be reasonable depending on the circumstances of the case such as how long it is litigated. [3]

Uploaded by

Aaliyah Andrea
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Question No.

1:

Mrs. Amy Dizon€s husband was killed in a traffic accident. She wants to suethe bus company for
damages but she cannot afford a lawyer. She approachedAtty. Larry Rio who agreed to handle the case
without any retainer€s fee orexpenses on her part, on the condition that in case of recovery of damages,
he shallget 33% of the award by the [Link] this arrangement valid and permissible? Decide with
reasons.

Answer:

In the recent case of Angel L. Bautista vs. Atty. Ramon A. Gonzales, [Link] No. 1625, February 12,
1990, the Supreme Court held that the lawyer shalldefray all the expenses of the suit, •it is contrary to
Canon 42 of the Canons ofProfessional Ethics which provides that a lawyer may not properly agree with
aclient to pay or bear the expenses of litigations (See also Tule 16.04, Code ofProfessional
Responsibility). The Court added that •although a lawyer may in goodfaith, advance the expenses of
litigation, the same should be subject toreimbursement.‚ And, •an agreement whereby an attorney
agrees to pay expensesof proceedings to enforce the client€s rights is champertous‚ and •against
public policy especially where, as in this case, the attorney has agreed to carry on theaction at his own
expenses in consideration of some bargain to have part of thething in dispute.‚

The arrangement between Amy Dizon and Atty. Larry Rio, which providesthat the latter will handle the
case without any retainer€s fee or expenses on
her part, can be taken to mean that the lawyer will carry out the case at his ownexpenses without
reimbursement. On the basis of the foregoing decision of theSupreme Court, such an arrangement is
invalid.

However, the contingent fee contract is not prohibited by the law and isimpliedly sanctioned. A
contingent fee is however closely supervised by the courtto safeguard the client from unjust charges,
and its validity depends, in largemeasure, upon the reasonableness of the amount fixed under the
circumstances ofthe case. A contingent fee of 33% of the amount of recovery may be reasonable ifthe
bus company fights the case until the Supreme Court and the litigations arehard-fought and long drawn:
it may be unreasonable if the bus company agrees tocompromise. But the fact that a contingent fee is
unreasonable does not precludethe lawyer from being paid his fees on quantum merit basis.
Question No. 7:

Atty. Chito Subretodo was retained by Buddy Capilla to handle his case in the Securities and
ExchangeCommission. There is a tax angle so Sobretodo consulted Atty. Romy Collado, a tax expert, and
for his assistance shared 50% of the retainer fees with Collado?Is this proper? Explain your answer.

Answer:

There is no impropriety in the sharing of attorney€s fees with tax expert Atty. Romy Collado.

This delegationof work and not delegationof a case.

As long as Atty. Sobretodo is responsible to his client, Buddy Capilla, even if he delegated the research
work to atty. Collado, there is no impropriety in said arrangement. What is prohibited by the Code of
Professional Responsibility is splitting of Attorney€s fees with a non lawyer.

Alternative Answer:

a)The propriety of Atty. Chito Sobretodo consulting Atty. Romy Collado on the tax aspect of the case
depends on the circumstances obtaining.

The attorney-client relationship existed between Atty. Chito Sobretodo and Buddy
Capilla only, and not with Atty. Romy Collado. If Atty. Romy Collado is an assistant, associate or
law partner of Atty. Chito Sobretodo and if the client, Budy Capilla, has not prohibited Atty.
Chito Sobretodo from consulting his assistant or law partner, then Atty. Romy Collado on the tax
angle of the case. As ageneral rule the employment of Atty. Chito Sobretodo as a lawyer for
Buddy Capilla is deemed a retainer of any member of Atty. Sobretodo€s law firm. However,
Atty. Romy Collado is an independent lawyer; Atty. Chito Sobretodo cannot properly consult
Attorney Romy Collado on the tax angle of the case without the consent of his client, Buddy
Capilla, because the consultation will involve revelation of the client€s secrets, privilege
communications or affairs, secret or undisclosed. Moreover, Rule 18.01 of the Code of
Professional Responsibility provides that a lawyer shall not undertake a legal service which he
knows or should know that is not qualified to render, but he may render such service if, with the
consent of his clients, he can obtain as collaborating counsel a lawyer who is competent on the
matter.

Since Atty. Collado has rendered services, Atty. Sobretodo can very well share 50% of his
fees with Atty. Collado, the matter of fee division being between the twolawyers only because
the client is not asked to pay additional amount for Collado€s services as tax expert.

b)Division of fees among lawyers is allowed provided there is division of labor and the client consents
(Rule 20.02, Canon 20). Hence the sharing between Sobretodo and Collado is proper provided the
client€s consent is obtained

Question No. 11:


Atty. Nicasio handled a case for Lydia Domondon wherein judgement was rendered in the latter€s
favour in the amount of P10,000.00. Upon finality of the judgement, the judgement debtor paid the full
amount of P110,000.00 to Atty. Nicasio. However, Atty. Nicasio turned over only P80,000.00 to Lydia
Domondon, explaining that he has already deducted the amount of P20,000.00 for his professional
services in accordance with their written agreement, and the amount

of P10,000.00 awarded by the court by way of attorney€s fees from the total sum of P110,000.00
received by him from the judgement [Link] on the proprietary of the action of Atty. Nicasio.

Answer:

The action of Atty. Nicasio in retaining the amount of P10,000.00 as attorney€s fees said amount
belongs to his [Link] award of attorney€s fees and damages under article 2208, paragraph 10 of the
Civil Code refers to damages suffered by the client.

Question No. 3:The law firm of Rodriguez, Delfin and Zafra had been in existence for almost 25 years
and had built up an excellent reputation and a well heeled clientele. Sometimes last year PartnerZafra
died of coronary disease but Rodriguez and Delfin refused to drop his name from the firm name.

May Rodriguez and Delfin insist on keeping the name of Zafra as part of the firm name?

Answer:

Yes, they may continue to use the name of Zafra in the firm name, provided that they indicate in all
communications that he is deceased. Rule 3.02 of the code of professional responsibility that the
continued name of a deceased partner is permissible provided thatThefirm indicates in all
communication that the said partner passed away.

Alternative Answer:They may keep the name of Zafra provided that the consent of the heirs is obtained

Question No. 5:

The client with whom you have a retainer agreement had not been paying you contrary to your
stipulations on legal fees as you continue to appear at hearings in his case. Ajudgment was finally
rendered in your clients favor awarding him the real property in litigation as well as a substantial
amount in [Link] a counsel who had not been paid what steps can you take to protect your
interest?

Answer:I will cause charging lien for my fees to be recorded and attached to the judgment in so far as it
is for the payment of money in damages. Then I will have the right to collect my fees out of such
judgments and execution in issuance pursuance thereof.
Question No. 15:

While Atty. Lancia was on his way to the office in Makati, he chanced upon a vehicular accident involving
a wayward bus and asmall Kia whose driver, a Mr. Malas, suffered serious physical injuries. Coming to
the succor of the injured Mr. Malas; Atty. Lancia drove him to the nearest hospital. On the wqay to the
Hospital Mr. Malas found out that Atty. Lancia was a practicing lawyer In gratitude of his help , Mr Malas
retained Atty. Lancia to file a suit against the bus company and its driver. If you were Atty. Lancia would
you accept the case?

Answer:

I will not accept the case if I were Atty. Lancia because it is difficult to dismiss the suspicion that Atty.
Lancia had assisted Mr. Alas for the purpose of soliciting legal business.

It is not clear from the facts how Mr. Alas learned Atty. Lancia was a practicing lawyer. This could have
been only if Atty. Lancia introduced himself as a lawyer. Moreover Atty. Lancia can be utilized as a
witness to the case.

Question No. 1:

1)Define legal ethics.2)What is the significance of lawyer€s oath?

Answer:

1)Legal ethics is that branch of moral science which treats of the duties which an attorney owes to the
court, his client, to his colleagues in the profession, and to the public.2)•The significance of the oath is
that it not only impress upon the attorneyhis responsibilities but it also stamps him as an officer of the
court with rights, powers and oath of a lawyer is a condensed code of legal ethics. It is a source of his
obligation and its violation is a ground for his suspension, disbarment or other disciplinary action.‚
(Agpalo, Legal Ethics, 5

th

. Edition, p.59)

Question No. 6

1)May a law firm use the name of a deceased partner? Qualify.

Answer:1)

Rule 3.02 of the Code of Professional responsibility provides in part that •The continued use of the
name of a deceased partner is permissible provided that the firm indicates in all its communications
that said partner is deceased.‚ However, several justices of the Supreme Court dissented from this rule.

2)Y hires the services of Atty. Z in a case where Y is accused of rape. Atty. Z, firmly believes that Y is
guilty of the crime of [Link] you were Atty. Z, would you still accept the case? Explain.
2)

I would still accept the case. It is not for me to judge that Y is guilty of the crime. The law presumes him
to be innocent, and is entitled to an acquittal unless his guilt is proven beyond reasonable doubt with
due process of law. The lawyer€s work is to see to it that due process of law is observed. Otherwise,
may accused will be defenceless.

Question No. 9

1)In a homicide case, Atty. M was appointed by the Court as counsel de officio for F, the accused. After
trial F was acquitted. Atty. M sent F a bill for attorney€s fees.a)Can F be compelled to pay? Explain.
b)Can F employ a counsel de parte to collaborate with Atty. M, his counsel de officio? Explain.

1)a) No, F may not be compelled to pay attorney€s fees. A counsel de officio is a lawyer appointed to
render professional services in favour of an indigent to render professional services in favour of an
indigent client. In the absence of a law allowing compensation, he cannot charge the indigent litigant for
his professional services. One of the obligation which the lawyer assumed when he took his oath as a
lawyer is to render free legal services when required b the law to do so. The Rules of Court provides a
token compensation for an attorney de officio to be paid by the [Link] may do so, but if he can afford
to employ a counsel de parte, then he is no longer indigent and will not need a counsel de officio. The
latter can withdraw as his counsel if he chooses to.

Question No. 5

A lawyer advertised in the newspaper the following:•Can secure annulment of your marriage promptly.
Expert in legal separation cases. Consult anytime.‚Is the advertisement proper? (5%)

Answer:

No. A lawyer in making known his legal services should not use any false, fraudulent, misleading,
deceptive, undignified or self-laudatory statements regarding Professional Responsibility, In re Tagorda,
53 Phil. 37). The claim that he can secure annulment of marriage promptly is false and misleading and
his claim that he is an expert in legal separation is self-laudatory. The advertisement constitutes
improper solicitation and violates the sanctity of the institution of marriage which the States should
protect (Ulep v. Legal Clinic, Inc. 221 SCRA 378)
Question No. 10

What is your understanding of quantum merit as attorney€s fee? (5%)

Answer:

Quantum merit literally means •as much as he deserves.‚ It is a measure for the lawyer€s fee in the
absence of a contract, or when the fees stipulated in a contract are found unconscionable, or when the
lawyer€s servicesare terminated for cause.

The lawyer is entitled to receive what merits for his services, as much as he has earned. The factors to
be taken into consideration are enumerated in Rule 22 of the Code of Professional Responsibility.

Question No. 13

Discuss the propriety of a lawyer filing a suit against his client concerning his fees. (5%).

Answer:

Rule 20.04 of Code of Professional Responsibility provides that •a lawyer shall avoid controversies with
his clients concerning his compensation and shall resort to judicial action only to prevent imposition,
injustice of fraud.‚ The legal profession is not a money-making trade but a form of public service.
Lawyers should avoid giving the impression that they are mercenary (Perez v. Scottish Union and
National Insurance Co.,76 Phil.325). It might even turn out to be unproductive for him for potential
clients are likely to avoid a lawyer with a reputation of suing his clients.
Question V

A Lawyer advertised in the newspaper the following: “Can secure annulment of your marriage
promptly. Expert in legal separation cases. Consult anytime.”

Is the advertisement proper?

VII.

No. The advertisement is not proper.

As provided for under the canons of professional responsibility and as a well-settled rule, advertising
and solicitation are generally prohibited. This is so because the practice of law is not a business. It is a
profession where utmost public interest is involved.

All members admitted to the profession are equally competent and are charged with the duty of serving
the public in the administration of justice.

No. the advertisement is devoid of propriety.

Under the code of professional responsibility, it is explicitly admonished, that a member of the bar must
not engaged in any self laudatory pronouncements in relation to his profession.

In the instant case, the advertisement is intended to solicit business, the self laudatory statements is
akin to selling and promoting one’s ware, the legal profession is not a money making activity, it is in
viewed with social responsibility.

Hence, the advertisement is all dolled up with impropriety.

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