February 11, 15

Legal Ethics
Basis of Charging Lien (Sec. 37, Rule 138, Rules of Court)
A lawyer shall have a lien:
-

upon all judgments for the payment of money and executions

issued in pursuance thereof,
which he has secured in a litigation for his client,
from and after the time when he shall have caused a statement
of his claim of such lien

Charging lien:
A legal fiction is created. It is as if the lawyer won or is the prevailing
party litigant in the case. But the execution of the money judgment in
his favor extends only insofar as the amount of his fees and
disbursement.
Lawyer can directly collect from the losing adversary.
Annotate the charging lien or written notice to both parties about the
lien.
The lawyer can still collect from the losing party who already paid and
is then (losing party) entitled for reimbursement from the winning
party. A case of Solutio Indebiti.
Limitations on exercise of Charging Lien:
1. Applies only to specific lien in which the charging lien is
recorded.
2. Only to favorable money judgments, and executions pursuant
thereto.
Retaining lien
- Is not dependent of the outcome of the case.
-passive
-general
- Basis: Lawful possessions of documents and funds belonging to client
- Coverage: Documents, papers and funds in the lawful possession of
the lawyer by reason of his professional employment.
- Effectivity: As as lawyer takes possession
- Notice: Not necessary
- May exercised before judgment

Charging lien
-Active (annotate/written notice)
-Specific
-Notice is necessary to both parties
Rule 18.01 a lawyer shall not undertake a legal service, which he
knows or should know that he is not qualified to render. He may render
such service with the clients consent; he can obtain as collaborating
counsel a lawyer who is competent on the matter.
Rule 18.02
Rule 18.03 Negligence on counsel
Effects of negligence and incompetence of lawyers:
-Disciplinary action
-malpractice suit
-criminal conviction may be set aside
-retrial may be had in Civil cases
Ordinary care and diligence.
The lawyer is not the insurer of the result of the case.
Is the client bound by the negligence of his counsel?
YES! Any act of the lawyer within the scope his general or implied
authority is considered an act of the client.
Exception: when there is serious injustice.
Rule 18.04
Rule 20
Concepts of Attorneys Fees:
1. Ordinary
2. Extraordinary Indemnity for damages ordered by the court to
be paid by the losing party in a litigation.

Presumption as to Entitlement of Attorneys Fees.

Attorneys fees are subject to Judicial Review.
Kinds of Retainer Fee Agreements
1. General - Ordinary Legal Problems
2. Special
Kinds of Atty. Fees Arrangements:
1.
2.
3.
4.
5.

Absolute
Contingent
Fixed fee payable per appearance
Hourly rate
Piece work