RILLORAZA, AFRICA, DE OCAMPO AND AFRICA vs. EASTERN TELECOMMUNICATIONS, PHILS., INC.G.R. No.

104600, July 2, 1999FACTS: Eastern Telecommunications, Phils., Inc. (ETPI) represented by the law firm SAGA, filed with the Regional Trial court a complaint for the recovery or revenue shares against PLDT. Atty. Rilloraza, a partner of the firm, appeared for ETPI. After ETPI rested its case, it paid SAGA the billed amount. The latter was dissolved and the junior partners formed RADA, which took over as counsel in the case for ETPI. ETPI signed a retainer agreement with counsel wherein it was stated that in cases of collection or judicial action, our attorneys fees shall be 15% of the amounts collected or the value of the property acquired or liability saved. The retainer agreement was terminated in 1988. the next day, RADA filed a notice of attorneys lien. In its notice, RADA informed the court that there were negotiations toward a compromise between ETPI and PLDT. In 1990, the parties arrived at an amicable settlement and the same was entered as a judgment. The petitioner (RADA) filed a motion for the enforcement of attorneys lien. ISSUE: Is RADA entitled to the awards of attorneys fees they are claiming? HELD: RADA is entitled to attorneys fees but the Supreme Court remanded the case to the court of origin for the determination of the amount of attorneys fees to which the petitioner is entitled. Atty. Rilloraza handled the case from its inception until ETPI terminated the law firms services in 1988. Petitioners claim for attorneys fees hinges on two grounds: first, the fact that Atty. Rilloraza personally handled the case when he was working for SAGA, and second, the retainer agreement. Whether there is an agreement or not, the courts shall fix a reasonable compensation which lawyers may receive for their professional services. A lawyer has the right to be paid for the legal services he has extended to his client, which compensation must be reasonable. A lawyer would be entitled to receive what he merits for his services. Otherwise stated, the amount must be determined on a quantum meruit basis.