Good Evening, My report will tackle

Attorneys Fees

To begin with, let me discuss the two concepts of attorneys fees

1. Ordinary- is the reasonable compensation paid to a lawyer by his client for the legal
services he has rendered to the latter.
Basis: the fact of his employment by and his agreement with the client (Traders Royal Bank
Employees Union Vs NLRC, March 14, 1997)

2. Extraordinary-the attorneys fee is an indemnity for damages ordered by the court to be

paid by the losing party in litigation to the prevailing party. They are actual damages due
to the plaintiff (Art. 2208)

-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 (Benedicto V
Villaflores, October 6, 2010)

Plaintiff must allege the basis of his claim for attorneys fees in the complaint. If not
pleaded and prayed for in the complaint, attorneys fees are barred. ( Tin Po Vs. bautista,
March 17, 1981)

So, What are the Grounds for claiming attorneys fees?

The basis is any of the cases provided by law where such award can be made, such as
those authorized in Art. 2208 of the Civil Code.

This article also enumerated the 11 instances when attorneys fees and expenses of
litigation may be recovered.

Art. 2208 provides.

Note: attorneys fees is not available when the defendant employer is not guilty of bad faith
(Dalusong Vs Eagle Clark Shipping Philippines, Inc.)

(6) IN ACTIONS FOR LEGAL SUPPORT

Art. 18 of NCC. In matters which are governed by the Code of Commerce and special laws, their
deficiency shall be supplied by the provisions of NCC.
Note:
In all cases, the attorneys fees and expenses of litigation must be reasonable. The amount
to be awarded is left to the discretion of the courts.
JUDICIAL COST

Paid to the judiciary, regular expenses, docket fees, execution fees and filling fees.

Expenses of Litigation

Cost to be paid in putting expert witness on stand. For getting documentary evidence
necessary to prove their claims.

Included here are lawyers fees.

Expenses incidental to the filling of suit. (Example: professional fees, cost of stenographic
notes, cost of publications, notarial and reproduction cost.
CHAPTER 2

ACTUAL OR COMPENSATORY DAMAGES

Art. 2199. Except as provided by law or by stipulation, one is entitled to an adequate

compensation only for such pecuniary loss suffered by him as he has duly proved. Such
compensation is referred to as actual or compensatory damages.

In other words, the plaintiff is entitled to an adequate compensation only for pecuniary loss he
suffered and which he has duly proved.

Actual damages are such compensation or damages for an injury that will put the injured party in
the position in which he had been before he was injured. They pertain to such injuries or losses
that are actually sustained and susceptible of measurement (Filipinas System Inc. Vs MRT
Development Corp)
Art. 2200. Indemnification for damages shall comprehend not only the value of the loss suffered,
but also that of the profits which the obligee failed to obtain. (1106)

Classification of damages:

1. DaNo emergente or damnum emergens loss of what a person already possesses.

2. Lucro cessante or ganacias frustradas failure to receive as benefit that which would have
pertained to him. (Civil Code, Art 2205)
a. Loss or impairment of earning capacity in cases of temporary or permanent personal
injury; or
b. Injury to the plaintiffs business standing or commercial credit.

Note: Restitutio in Integrum

Amount should be that which would put plaintiff in the same position as he would have
been if he had not sustained the wrong for which he is now getting his compensation or
reparation

Art. 2201. In contracts and quasi-contracts, the damages for which the obligor who acted
in good faith is liable shall be those that are the natural and probable consequences of the
breach of the obligation, and which the parties have foreseen or could have reasonably
foreseen at the time the obligation was constituted.

In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for
all damages which may be reasonably attributed to the non-performance of the
obligation. (1107a)

Speaks of damages in contracts and quasi-contracts:

1. Obligor in good faith

-liable for natural and probable consequences of the breach of obligation and which
the parties have foreseen or could have reasonably been foreseen at the time the
obligation was constituted.
2. Obligor in bad faith
-Liable for all damages which may be reasonably attributed to the non performance of
the obligation.
Art. 2202. In crimes and quasi-delicts, the defendant shall be liable for all damages
which are the natural and probable consequences of the act or omission complained
of. It is not necessary that such damages have been foreseen or could have reasonably
been foreseen by the defendant.

Speaks of Damages in crimes and quasi-delicts.

He is liable for all damages which are the natural and probable consequences of the
acts or omission complained of. It is not necessary that such damages have been
foreseen or could have reasonably been foreseen at the time the obligation was
constituted.