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Section 24. Compensation of attorneys; agreement as to fees. — An or for free. He owes fidelity to such cause and must always be mindful of
attorney shall be entitled to have and recover from his client no more the trust and confidence reposed on him. In a number of cases, the
than a reasonable compensation for his services, with a view to the Court held that a lawyer should never neglect a legal matter entrusted to
importance of the subject matter of the controversy, the extent of the him, otherwise his negligence renders him liable for disciplinary action
services rendered, and the professional standing of the attorney. No such as suspension ranging from three months to two years. In this case,
court shall be bound by the opinion of attorneys as expert witnesses as the Court finds the suspension of Atty. Agleron from the practice of law
to the proper compensation, but may disregard such testimony and base for a period of three months sufficient.
its conclusion on its own professional knowledge. A written contract for
services shall control the amount to be paid therefor unless found by the CONCHITA A. BALTAZAR, et.al vs. ATTY. JUAN B. BAÑEZ, JR.
court to be unconscionable or unreasonable. A.C. No. 9091, December 11, 2013
FACTS: Complainants are the owners of three parcels of land. They
Section 37. Attorneys' liens. — An attorney shall have a lien upon the entered into an agreement with Gerry R. Fevidal (Fevidal), a subdivision
funds, documents and papers of his client which have lawfully come into developer. Fevidal did not update complainants about the status of the
his possession and may retain the same until his lawful fees and subdivision project and failed to account for the titles to the subdivided
disbursements have been paid, and may apply such funds to the land. Thus, they revoked the Special Power of Attorney they had
satisfaction thereof. He shall also have a lien to the same extent upon all previously executed in his favor.
judgments for the payment of money, and executions issued in COMPLAINANTS:
pursuance of such judgments, which he has secured in a litigation of his Complainants engaged the services of respondent for the purpose of
client, from and after the time when he shall have the caused a assisting them in the preparation of a settlement agreement. Instead of
statement of his claim of such lien to be entered upon the records of the drafting a written settlement, respondent encouraged them to institute
court rendering such judgment, or issuing such execution, and shall have actions against Fevidal in order to recover their properties. Complainants
the caused written notice thereof to be delivered to his client and to the then signed a contract of legal services, in which it was agreed that they
adverse paty; and he shall have the same right and power over such would not pay acceptance and appearance fees to respondent, but that
judgments and executions as his client would have to enforce his lien the docket fees would instead be shared by the parties. Under the
and secure the payment of his just fees and disbursements. contract, complainants would pay respondent 50% of whatever would be
recovered of the properties.
ERMELINDA LAD VDA. DE DOMINGUEZ, REPRESENTED BY HER In preparation for the filing of an action against Fevidal, respondent
ATTORNEY-IN-FACT, VICENTE A. PICHON v. ATTY. ARNULFO M. prepared and notarized an Affidavit of Adverse Claim, seeking to
AGLERON Sr. A.C. No. 5359 March 10, 2014 annotate the claim of complainants to at least 195 titles in the possession
FACTS: Ermelinda Lad Vda. De Dominguez (complainant) was the of Fevidal. Unknown to him, the adverse claim was held in abeyance,
widow of the late Felipe Domiguez who died in a vehicular accident in because Fevidal convinced complainants to agree to another settlement.
Caraga, Davao Oriental, on October 18, 1995, involving a dump truck Respondent filed a complaint for annulment, cancellation and
owned by the Municipality of Caraga. Aggrieved, complainant decided to revalidation of titles, and damages against Fevidal. Complainants found
file charges against the Municipality of Caraga and engaged the services it hard to wait for the outcome of the action. Thus, they terminated the
of respondent Atty. Arnulfo M. Agleron, Sr. (Atty. Agleron). On three 3 services of respondent and finalized their amicable settlement with him.
occasions, Atty. Agleron requested and received from complainant the RESPONDENT:
following amounts for the payment of filing fees and sheriffs fees, to wit: Respondent filed a Manifestation and Opposition before the RTC,
(1) June 3, 1996 P3,000.00; (2) June 7, 1996 Pl,800.00; and September alleging that the termination of his services and withdrawal of the
2, 1996 -P5,250.00 or a total of P10,050.00. After the lapse of four (4) complaint had been done with the intent of defrauding counsel. He also
years, however, no complaint was filed by Atty. Agleron against the filed a Motion for Recording of Attorney’s Charging Lien in the Records.
Municipality of Caraga. After an exchange of pleadings between respondent and Fevidal, with
Defendant’s Defense: the latter denying the former’s allegation of collusion, complainants
Atty. Agleron admitted that complainant engaged his professional service sought the suspension/disbarment of respondent. Complainants alleged
and received the amount of P10,050.00. He, however, explained that that they were uneducated and underprivileged, and could not taste the
their agreement was that complainant would pay the filing fees and other fruits of their properties because the disposition thereof was “now clothed
incidental expenses and as soon as the complaint was prepared and with legal problems” brought about by respondent. In their complaint,
ready for filing, complainant would pay 30% of the agreed attorney’s fees they alleged that respondent had violated the Code of Professional
of P100,000.00. On June 7, 1996, after the signing of the complaint, he Responsibility.
advised complainant to pay in full the amount of the filing fee and IBP Commission on Bar Discipline:
sheriff’s fees and the 30% of the attorney’s fee, but complainant failed to It suspended respondent from the practice of law for a period of one year
do so. Atty. Agleron averred that since the complaint could not be filed in for entering into a champertous agreement.
court, the amount of P10,050.00 was deposited in a bank while awaiting ISSUE: Whether or not the respondent is guilty of entering into a
the payment of the balance of the filing fee and attorney’s fee. champertous contract.
ISSUE: WON Atty. Agleron violated the Code of Professional HELD: We find that respondent did not violate any of the canons cited by
Responsibility. complainants. Respondent cannot be faulted for advising complainants
HELD: to file an action against Fevidal to recover their properties, instead of
The Investigating Commissioner’s Report: agreeing to a settlement of P10,000,000 – a measly amount compared to
The Investigating Commissioner found Atty. Agleron to have violated the that in the original agreement, under which Fevidal undertook to pay
Code of Professional Responsibility when he neglected a legal matter complainants the amount of P35,000,000. Lawyers have a sworn duty
entrusted to him, and recommended that he be suspended from the and responsibility to protect the interest of any prospective client and
practice of law for a period of four (4) months. pursue the ends of justice. Any lawyer worth his salt would advise
The BOG’s Recommendation: complainants against the abuses of Fevidal under the circumstances,
The Integrated Bar of the Philippines Board of Governors adopted and and we cannot countenance an administrative complaint against a
approved the report and recommendation of the Investigating lawyer only because he performed a duty imposed on him by his oath.
Commissioner with modification that Atty. Agleron be suspended from Finally, complainants apparently refer to the motion of respondent for the
the practice of law for a period of only one 1 month. recording of his attorney’s charging lien as the “legal problem” preventing
RULING: The Court agrees with the recommendation of the IBP Board them from enjoying the fruits of their property.
of Governors except as to the penalty imposed. Atty. Agleron violated Section 26, Rule 138 of the Rules of Court allows an attorney to
Rule 18.03 of the Code of Professional Responsibility, which provides intervene in a case to protect his rights concerning the payment of his
that: compensation. According to the discretion of the court, the attorney shall
Rule 18.03-A lawyer shall not neglect a legal matter entrusted to him, have a lien upon all judgments for the payment of money rendered in a
and his negligence in connection therewith shall render him liable. case in which his services have been retained by the client. We recently
Once a lawyer takes up the cause of his client, he is duty bound to serve upheld the right of counsel to intervene in proceedings for the recording
his client with competence, and to attend to his client’s cause with of their charging lien.
Notwithstanding the foregoing, respondent is not without fault. Indeed, caused: (1) a statement of his claim to be entered in the record of the
we find that the contract for legal services he has executed with case while the court has jurisdiction over the case and before the full
complainants is in the nature of a champertous contract – an agreement satisfaction of the judgment;9 and (2) a written notice of his claim to be
whereby an attorney undertakes to pay the expenses of the proceedings delivered to his client and to the adverse party.
to enforce the client’s rights in exchange for some bargain to have a part
of the thing in dispute. Such contracts are contrary to public policy and However, the filing of the statement of the claim does not, by itself,
are thus void or inexistent. They are also contrary to Canon 16.04 of the legally determine the amount of the claim when the client disputes the
Code of Professional Responsibility, which states that lawyers shall not amount or claims that the amount has been paid.10 In these cases, both
lend money to a client, except when in the interest of justice, they have the attorney and the client have a right to be heard and to present
to advance necessary expenses in a legal matter they are handling for evidence in support of their claims.11 The proper procedure for the court
the client. is to ascertain the proper amount of the lien in a full dress trial before it
A reading of the contract for legal services shows that respondent orders the registration of the charging lien.12 The necessity of a hearing
agreed to pay for at least half of the expense for the docket fees. He also is obvious and beyond dispute.
paid for the whole amount needed for the recording of complainants’
adverse claim. In the present case, the RTC ordered the registration of Atty. Abrogar's
While lawyers may advance the necessary expenses in a legal matter lien without a hearing even though the client contested the amount of the
they are handling in order to safeguard their client’s rights, it is lien. The petitioner had the right to be heard and to present evidence on
imperative that the advances be subject to reimbursement. The purpose the true amount of the charging lien. The RTC acted with grave abuse of
is to avoid a situation in which a lawyer acquires a personal stake in the discretion because it denied the petitioner his right to be heard, i.e., the
client’s cause. Regrettably, nowhere in the contract for legal services is it right to due process.
stated that the expenses of litigation advanced by respondent shall be
subject to reimbursement by complainants. The registration of the lien should also be distinguished from the
In addition, respondent gave various amounts as cash advances (bali), enforcement of the lien. Registration merely determines the birth of the
gasoline and transportation allowance to them for the duration of their lien.14 The enforcement of the lien, on the other hand, can only take
attorney-client relationship. In fact, he admits that the cash advances place once a final money judgment has been secured in favor of the
were in the nature of personal loans that he extended to complainants. client. The enforcement of the lien is a claim for attorney's fees that may
Clearly, respondent lost sight of his responsibility as a lawyer in be prosecuted in the very action where the attorney rendered his
balancing the client’s interests with the ethical standards of his services or in a separate action
profession. Considering the surrounding circumstances in this case, an
admonition shall suffice to remind him that however dire the needs of the Lastly, the enforcement of a charging lien can only take place after a final
clients, a lawyer must always avoid any appearance of impropriety to money judgment has been rendered in favor of the client.17 The lien only
preserve the integrity of the profession. attaches to the money judgment due to the client and is contingent on
Attorney Juan B. Bañez, Jr. is hereby ADMONISHED for advancing the the final determination of the main case. Until the money judgment has
litigation expenses in a legal matter he handled for a client without become final and executory, enforcement of the lien is premature.
providing for terms of reimbursement and lending money to his client, in
violation of Canon 16.04 of the Code of Professional Responsibility. Sps San Pedro vs Atty. Mendoza