Bach Vs Ongkingko
Bach Vs Ongkingko
*
G.R. No. 160334. September 11, 2006.
_______________
* FIRST DIVISION.
420
that yields profits. The returns it births are simple rewards for a
job done or service rendered. It is a calling that, unlike mercantile
pursuits which enjoy a greater deal of freedom from governmental
interference, is impressed with a public interest, for which it is
subject to State regulation. A lawyer is not merely the defender of
his client’s cause and a trustee of his client’s cause of action and
assets; he is also, and first and foremost, an officer of the court
and participates in the fundamental function of administering
justice in society. It follows that a lawyer’s compensation for
professional services rendered are subject to the supervision of
the court, not just to guarantee that the fees he charges and
receives remain reasonable and commensurate with the services
rendered, but also to maintain the dignity and integrity of the
legal profession to which he belongs. Upon taking his attorney’s
oath as an officer of the court, a lawyer submits himself to the
authority of the courts to regulate his right to charge professional
fees.
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 2/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
421
CHICONAZARIO, J.:
This Petition
1
for Review on Certiorari seeks to reverse the
Decision dated 8 October 2003 of the Court of Appeals in
CAG.R. CV No. 74445, entitled, “Ongkiko Kalaw Manhit &
Accorda Law Offices v. Guenter Bach.”
The facts as culled from the records of the case are as
follows:
On 7 November 1994, petitioner Guenter Bach engaged
the services of respondent law firm Ongkiko Kalaw Manhit
& Accorda Law Offices to represent him in a Petition for
Declaration of Nullity of Marriage filed before the Regional
Trial Court (RTC) of Makati City, Branch 143, docketed as
Civil Case No. 95224. The parties signed a “Fee
Agreement,” for the legal services to be rendered by
respondent. The provision for payment of the legal services
reads:
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 3/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
_______________
422
3
ing for the services they rendered and billed petitioner the
total amount of P1,000,000.00 plus 2% interest for every
month of delay in payment, based on the provision for
termination of services stated in their Fee Agreement,
thus:
All fees mentioned herein are payable within seven (7) days from
receipt of our statement of account. It is understood that all late
payments shall be subject to interest payment at the rate of 2 %
per month of delay, a fraction of a month being considered as one
month, counted from the date the fees shall fall due, without need
of prior demand.
xxxx
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 4/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
_______________
423
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 5/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
_______________
424
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 6/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
_______________
12 Id., at p. 236.
13 Rollo, pp. 2122.
14 Id., at p. 7.
425
Both the Court of Appeals and the trial court approved the
attorney’s fees in the total amounts of P750,000.00 plus 2 %
interest for the services rendered by respondent in Civil
Case No. 95224. In this regard, the rule is that the issue of
the reasonableness of attorney’s fees based on quantum
meruit is a question of fact, and wellsettled is the rule that
conclusions and findings of fact by the lower courts are
entitled to great weight on appeal and will not be disturbed
except for strong and cogent reasons. The findings of the
Court of Appeals by itself, which are supported by
substantial evidence, are almost15
beyond the power of
review by the Supreme Court. Thus, in the exercise of the
Supreme Court’s power of review the findings of facts of the
Court of Appeals are conclusive and binding on the
Supreme Court. There are, however, recognized exceptions
to this rule, namely: (1) when the findings are grounded
entirely on speculation, surmises or conjectures; (2) when
the inference made is manifestly mistaken, absurd or
impossible; (3) when there is grave abuse of discretion; (4)
when the judgment is based on misapprehension of facts;
(5) when the findings of facts are conflicting; (6) when in
making the findings the Court of Appeals went beyond the
issues of the case, or its findings are contrary to the
admissions of both the appellee and the appellant; (7) when
the findings are contrary to the trial court; (8) when the
findings are conclusions without citation of specific
evidence on which they are based; (9) when the facts set
forth in the petition as well as in the petitioner’s main and
reply briefs are not disputed by the respondent; (10) when
the findings of facts are premised on the supposed absence
of evidence and contradicted by the evidence on record; and
(11) when the Court of Appeals manifestly overlooked
certain relevant facts not disputed by the parties, which if
properly considered, would justify a different
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 7/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
_______________
15 Pimentel v. Court of Appeals, 366 Phil. 494, 501; 307 SCRA 38, 43
(1999), citing Atlantic Gulf and Pacific Company of Manila, Inc. v. Court
of Appeals, 317 Phil. 707, 713; 247 SCRA 606, 611 (1995).
426
16
conclusion. Exceptions (4) and (11) are present in the case
at bar, and so this Court shall make its own determination
of the facts relevant for the resolution of the case.
Ordinarily, therefore, we would have remanded this case
for further reception of evidence as to the extent and value
of the services rendered by respondent to petitioner.
However, so as not to needlessly prolong the resolution of a
comparatively simple controversy, we deem it just and
equitable to fix in the present recourse a reasonable
amount of attorney’s fees in favor of respondent.
There are two concepts of attorney’s fees. In the ordinary
sense, attorney’s fees represent the reasonable
compensation paid to a lawyer by his client for the legal
services rendered to the latter. On the other hand, in its
extraordinary concept, attorney’s fees may be awarded by
the court as indemnity for damages
17
to be paid by the losing
party to the prevailing party.
The issue in this case concerns attorney’s fees in the
ordinary concept. Generally, the amount of attorney’s fees
due is that stipulated in the retainer agreement which is
conclusive as to the amount of the lawyer’s compensation.
In the absence thereof, the amount of attorney’s fees is
fixed on the basis of quantum meruit, i.e., the reasonable
worth of the attorney’s services. Courts may ascertain also
if the attorney’s fees are found to be excessive, what is
reasonable under the circum
_______________
427
18
stances. In no case, however, must a lawyer be allowed to
recover more than what is reasonable, pursuant to Section
24, Rule 138 of the Rules of Court, which provides:
_______________
18 Sesbreno v. Court of Appeals, 314 Phil. 884, 894; 245 SCRA 30, 37
(1995).
19 Research and Services Realty, Inc. v. Court of Appeals, 334 Phil. 652,
668; 266 SCRA 731, 746 (1997).
428
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 9/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
_______________
429
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 10/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
22
3. Further, respondent annotated a notice of lis
pendens on the property of Spouses Bach in
Dasmariñas, Cavite covered by TCT No. T339282,
thereby preventing disposition of the property by
Luzviminda Bach;
23
4. Additionally, respondent annotated a notice of lis
pendens on the property of Spouses Bach in Tanza,
Cavite, covered by TCT No. T255263, thereby
preventing disposition of the property by
Luzviminda Bach;
5. Respondent
24
also worked on the annotation of the
notice of lis pendens on the property of Spouses
Bach in Makati, covered by TCT No. S62541,
thereby preventing disposition of the property by
Luzviminda Bach;
6. Respondent worked on the annotation of a notice of
lis pendens on the property of Spouses Bach in
Dasmariñas, Cavite, covered by TCT No. T380848,
thereby preventing disposition of the property by
Luzviminda Bach;
25
7. Respondent annotated a notice of lis pendens on
the property of Spouses Bach situated in Tagaytay
City, covered by TCT No. P705, thereby preventing
disposition of the property by Luzviminda Bach;
26
8. Respondent filed the Petition for Declaration of
Nullity of Marriage and Dissolution of the Conjugal
Partnership of Gains of petitioner with his wife;
27
9. Respondent prepared an affidavit in favor of
petitioner attesting to the fact of petitioner’s
marriage and their properties acquired during his
marriage with Luzviminda Bach:
_______________
430
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 11/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
28
10. Respondent prepared an ex parte motion to declare
petitioner’s wife to have waived her right to file
answer for failure to file the same within the period
granted by law and to direct the public prosecutor
to determine whether or not a collusion exist;
29
11. Respondent prepared a Petition for appointment of
a receiver and to compel petitioner’s wife to render
an accounting;
12. Other services
30
included the filling of several
oppositions to certain motions filed by petitioner’s
wife;
31
13. Respondent filed a motion to set the case for
preliminary investigation;
32
14. Respondent filed an ex parte motion to declare
petitioner’s wife in default;
33
15. Respondent submitted a supplemental comment
on the motion for leave to withdraw funds from
Certificate of Participation filed by petitioner’s wife;
34
16. Respondent filed a manifestation and motion
praying the court to direct petitioner’s wife to
designate her lead counsel in the case;
35
17. Respondent prepared a Reply to comments on
opposition of petitioner;
36
18. Respondent was able to secure an Order from the
said court freezing the United Coconut Planters
Bank (UCPB)
_______________
431
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 12/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
_______________
432
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 13/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
_______________
433
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 14/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
_______________
434
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 15/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
_______________
46 Sumaoang v. Judge, RTC, Br. XXXI, Guimba, Nueva Ecija, G.R. No.
78173, 26 October 1992, 215 SCRA 136, 143.
47 Agpalo, LEGAL ETHICS (4th Ed., 1989), pp. 302303.
435
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 16/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
——o0o——
436
© Copyright 2016 Central Book Supply, Inc. All rights reserved.
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 17/18
11/17/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 501
http://www.central.com.ph/sfsreader/session/000001586e2d576de825a6ef003600fb002c009e/t/?o=False 18/18