The contract of attorney’s fees entered into by Atty. Quintos and his client, Susan, stipulates that if a judgment is rendered in her favor, he gets 60% of the property recovered as contingent fee. In turn, he will assume payment of all expenses of the litigation.
1. Is the agreement valid? 2.5%
2. May Atty. Quintos and Susan increase the amount of the contingent fee to 80%? 2.5%
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1 comment:
XI.
1.
The agreement, which is in the nature of a champertous contract, is not valid. A champertous contract is one where the 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. This kind of contract is prohibited being contrary to public policy.
2.
The amount of the contingent fee cannot be increased to 80% because such amount is not reasonable. A lawyer shall charge only fair and reasonable fees.
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