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Canons 14 to 22
A lawyer shall hold in trust all moneys and properties of his client that may come into his possession
(canon 16)
c. Attorney’s fees
● Attorney’s Fees
1. Ordinary attorney’s fee -the reasonable compensation paid to a lawyer by his client for the
legal services he has rendered to the latter. The basis for this compensation is the fact of his
employment by and his agreement with the client.
2. Extraordinary attorney’s fee – an indemnity for damages ordered by the court to be paid by
the losing party in litigation. The basis for this is any of the cases provided for by law where
such award can be made, such as those authorized in Article 2208 of the Civil Code, and is
payable NOT to the lawyer but to the client, unless they have agreed that the award shall
pertain to the lawyer as additional compensation or as part thereof.
2. Acceptance fees
The acceptance fee is the fee charged by the lawyer for merely accepting the case
In contingent fee arrangements, the lawyer gets paid only if the legal activity is successful
Contingent contract - Also referred to as contingent fee contract, is often the only way by which
the poor and helpless can have their rights vindicated and upheld, in the sense that the lawyer is
being paid on success basis. Such contract for contingent fee is not prohibited under Article 1491
of the New Civil Code and Canon 13 of the Canons of Professional Ethics.
5. Attorney’s liens
Attorneys’ Liens – an attorney shall have a lien upon 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, and may apply such finds to the satisfaction thereof. He shall also
have a lien to the same extent upon all judgements for the payment of money, and executions
issued in pursuance of such judgements which he has secured in a litigation of his client, from and
after the time when he shall have caused a statement of his claim of such lien to be entered upon
the records of the court rendering such judgement, or issuing such execution, and shall have
caused written notice thereof to be delivered to his client and to the adverse party; and he shall
have the same right and power over such judgments and executions as his client would have to
enforce his lien and secure the payment of his fees and disbursements.
7. Quantum meruit
Quantum Meruit –it means “as much as he deserves”, and is used as the basis for determining the
lawyer’s professional fees in the absence of a contract, but recoverable by him from his client.
● Champertous Contracts (void) – Lawyer stipulates with his client that in the prosecution of
the case, he will bear all the expenses for the recovery of things or property being claimed by
the client and the latter agrees to pay the former a portion of the thing/property recovered as
compensation
9. Charging lien
- It is the equitable right of an attorney to have fees and cost due to him for services in a particular
suit secured by the judgment or recovery in such suit.
Characteristic of Disbarment
. deceit;
. malpractice or other gross misconduct
. grossly immoral conduct;
. conviction of a crime involving moral turpitude;
. violation of oath of office;
. willful disobedience of any lawful order of a superior court;
. corrupt or willful appearance as attorney for a party to case without authority to do so
4. Disbarment
RULE 139-B
Disbarment and Discipline of Attorneys
Section 1. How Instituted. — Proceedings for the disbarment, suspension, or discipline of attorneys
may be taken by the Supreme Court motu propio, or by the Integrated Bar of the Philippines (IBP)
upon the verified complaint of any person. The complaint shall state clearly and concisely the facts
complained of and shall be supported by affidavits of persons having personal knowledge of the
facts therein alleged and/or by such documents as may substantiate said facts.
The IBP Board of Governors may, motu propio or upon referral by the Supreme Court or by a
Chapter Board of Officers, or at the instance of any person, initiate and prosecute proper charges
against erring attorneys including those in the government service.
Six (6) copies of the verified complaint shall be filed with the Secretary of the IBP or the Secretary
of any of its chapter who shall forthwith transmit the same to the IBP Board of Governors for
assignment to an investigator.
A. PROCEEDINGS IN THE INTEGRATED BAR OF THE PHILIPPINES
Section 2. National Grievance Investigators. — The Board of Governors shall appoint from among
IBP members an Investigator or, when special circumstances so warrant, a panel of three (3)
investigators to investigate the complaint. All Investigators shall take an oath of office in the form
prescribed by the Board of Governors. A copy of the Investigator's appointment and oath shall be
transmitted to the Supreme Court.
An Investigator may be disqualified by reason of relationship within the fourth degree of
consanguinity of affinity to any of the parties of their counsel, pecuniary interest, personal bias, or
his having acted as counsel to his acting as such Investigator. Where the Investigator does not
disqualify himself, a party may appeal to the IBP Board of Governors, which by majority vote of the
members present, there being a quorum, may order his disqualification.
Any Investigator may also be removed for cause, after due hearing, by the vote of at least six (6)
members of the IBP Board of Governors. The decision of the Board of Governors in all cases of
disqualification or removal shall be final.
Section 3. Duties of the National Grievance Investigator. — The National Grievance Investigators
shall investigate all complaints against members of the Integrated Bar referred to them by the IBP
Board of Governors.
Section 4. Chapter assistance to complainant. — The proper IBP Chapter may assist the
complainant(s) in the preparation and filing of his complaint(s).
Section 5. Service or dismissal. — If the complaint appears to be meritorious, the Investigator shall
direct that a copy thereof be served upon the respondent, requiring him to answer the same within
fifteen (15) days from the date of service. If the complaint does not merit action, or if the answer
shows to the satisfaction of the Investigator that the complaint is not meritorious, the same may be
dismissed by the Board of Governors upon his recommendation. A copy of the resolution of
dismissal shall be furnished the complainant and the Supreme Court which may review the case
motu propio or upon timely appeal of the complainant filed within 15 days from notice of the
dismissal of the complainant.
No investigation shall be interrupted or terminated by reason of the desistance, settlement,
compromise, restitution, withdrawal of the charges, or failure of the complainant to prosecute the
same, unless the Supreme Court motu propio or upon recommendation of the IBP Board of
Governors, determines that there is no compelling reason to continue with the disbarment or
suspension proceedings against the respondent. (Amendment pursuant to Supreme Court
Resolution dated May 27, 1993 re Bar Matter 356).
Section 6. Verification and service of answer. — The answer shall be verified. The original and five
(5) legible copies of the answer shall be filed with the Investigator, with proof of service of a copy
thereof on the complainant or his counsel.
Section 7. Administrative counsel. — The IBP Board of Governors shall appoint a suitable member of
the Integrated Bar as counsel to assist the complainant of the respondent during the investigation in
case of need for such assistance.
Section 8. Investigation. — Upon joinder of issues or upon failure of the respondent to answer, the
Investigator shall, with deliberate speed, proceed with the investigation of the case. He shall have
the power to issue subpoenas and administer oaths. The respondent shall be given full opportunity
to defend himself, to present witnesses on his behalf, and be heard by himself and counsel.
However, if upon reasonable notice, the respondent fails to appear, the investigation shall proceed
ex parte.
The Investigator shall terminate the investigation within three (3) months from the date of its
commencement, unless extended for good cause by the Board of Governors upon prior application.
Willful failure or refusal to obey a subpoena or any other lawful order issued by the Investigator shall
be dealt with as for indirect contempt of court. The corresponding charge shall be filed by the
Investigator before the IBP Board of Governors which shall require the alleged contemnor to show
cause within ten (10) days from notice. The IBP Board of Governors may thereafter conduct
hearings, if necessary, in accordance with the procedure set forth in this Rule for hearings before
the Investigator. Such hearing shall as far as practicable be terminated within fifteen (15) days from
its commencement. Thereafter, the IBP Board of Governors shall within a like period of fifteen (15)
days issue a resolution setting forth its findings and recommendations, which shall forthwith be
transmitted to the Supreme Court for final action and if warranted, the imposition of penalty.
Section 9. Depositions. — Depositions may be taken in accordance with the Rules of Court with
leave of the investigator(s).
Within the Philippines, depositions may be taken before any member of the Board of Governors, the
President of any Chapter, or any officer authorized by law to administer oaths.
Depositions may be taken outside the Philippines before diplomatic or consular representative of
the Philippine Government or before any person agreed upon by the parties or designated by the
Board of Governors.
Any suitable member of the Integrated Bar in the place where a deposition shall be taken may be
designated by the Investigator to assist the complainant or the respondent in taking a deposition.
Section 10. Report of Investigator. — Not later than thirty (30) days from the termination of the
investigation, the Investigator shall submit a report containing his findings of fact and
recommendations to the IBP Board of Governors, together with the stenographic notes and the
transcript thereof, and all the evidence presented during the investigation. The submission of the
report need not await the transcription of the stenographic notes, it being sufficient that the report
reproduce substantially from the Investigator's personal notes any relevant and pertinent
testimonies.
Section 11. Defects. — No defect in a complaint, notice, answer, or in the proceeding or the
Investigator's Report shall be considered as substantial unless the Board of Governors, upon
considering the whole record, finds that such defect has resulted or may result in a miscarriage of
justice, in which event the Board shall take such remedial action as the circumstances may warrant,
including invalidation of the entire proceedings.
Section 12. Review and decision by the Board of Governors.
a) Every case heard by an investigator shall be reviewed by the IBP Board of Governors upon the
record and evidence transmitted to it by the Investigator with his report. The decision of the Board
upon such review shall be in writing and shall clearly and distinctly state the facts and the reasons
on which it is based. It shall be promulgated within a period not exceeding thirty (30) days from the
next meeting of the Board following the submittal of the Investigator's Report.
b) If the Board, by the vote of a majority of its total membership, determines that the respondent
should be suspended from the practice of law or disbarred, it shall issue a resolution setting forth
its findings and recommendations which, together with the whole record of the case, shall forthwith
be transmitted to the Supreme Court for final action.
c) If the respondent is exonerated by the Board or the disciplinary sanction imposed by it is less
than suspension or disbarment (such as admonition, reprimand, or fine) it shall issue a decision
exonerating respondent or imposing such sanction. The case shall be deemed terminated unless
upon petition of the complainant or other interested party filed with the Supreme Court within
fifteen (15) days from notice of the Board's resolution, the Supreme Court orders otherwise.
d) Notice of the resolution or decision of the Board shall be given to all parties through their
counsel. A copy of the same shall be transmitted to the Supreme Court.
B. PROCEEDINGS IN THE SUPREME COURT
Section 13. Supreme Court Investigation. — In proceedings initiated motu propio by the Supreme
Court or in other proceedings when the interest of justice so requires, the Supreme Court may refer
the case for investigation to the Solicitor-General or to any officer of the Supreme Court or judge of
a lower court, in which case the investigation shall proceed in the same manner provided in sections
6 to 11 hereof, save that the review of the report of investigation shall be conducted directly by the
Supreme Court.
Section 14. Report of the Solicitor General of other Court-designated Investigator. — Based upon
the evidence adduced at the investigation, the Solicitor General or other Investigator designated by
the Supreme Court shall submit to the Supreme Court a report containing his findings of fact and
recommendations for the final action of the Supreme Court.
C. COMMON PROVISIONS
Section 15. Suspension of attorney by Supreme Court. — After receipt of respondent's answer or
lapse of the period therefor, the Supreme Court, motu propio, or at the instance of the IBP Board of
Governors upon the recommendation of the Investigator, may suspend an attorney from the
practice of his profession for any of the causes specified in Rule 138, Section 27, during the
pendency of the investigation until such suspension is lifted by the Supreme Court.
Section 16. Suspension of attorney by the Court of Appeals or a Regional Trial Court. 1 — The Court
of Appeals or Regional Trial Court may suspend an attorney from practice for any of the causes
named in Rule 138, Section 27 2, until further action of the Supreme Court in the case.
Section 17. Upon suspension by Court of Appeals or Regional Trial Court, further proceedings in
Supreme Court. — Upon such suspension, the Court of Appeals or a Regional Trial Court shall
forthwith transmit to the Supreme Court a certified copy of the order of suspension and a full
statement of the facts upon which the same was based. Upon receipt of such certified copy and
statement, the Supreme Court shall make a full investigation of the case and may revoke, shorten or
extend the suspension, or disbar the attorney as the facts may warrant.
Section 18. Confidentiality. — Proceedings against attorneys shall be private and confidential.
However, the final order of the Supreme Court shall be published like its decisions in other cases.
Section 19. Expenses. — All reasonable and necessary expenses incurred in relation to disciplinary
and disbarment proceedings are lawfull charges for which the parties may be taxed as costs.
Section 20. Effectivity and Transitory Provision. — This Rule shall take effect June 1, 1988 and shall
supersede the present Rule 139 entitled "DISBARMENT OR SUSPENSION OF ATTORNEYS". All
cases pending investigation by the Office of the Solicitor General shall be transferred to the
Integrated Bar of the Philippines Board of Governors for investigation and disposition as provided in
this Rule except those cases where the investigation has been substantially completed.