Case Digest: Rillaroza, et. al vs Eastern Telecom, G.R. No. 104600

Rillaroza, et. al vs Eastern Telecom, GR No. 104600, July 2, 1999

Subject: Basic Legal Ethics

FACTS

A group of lawyers, led by Atty. Francisco D. Rilloraza, who were hired by Eastern Telecommunications Philippines, Inc. (ETPI) to represent it in a case against Philippine Long Distance Telephone Company (PLDT). The lawyers filed a complaint with the Regional Trial Court of Makati City, seeking P26,350,779.91 in attorney's fees.

ETPI argued that the lawyers were not entitled to any attorney's fees because there was no written agreement between the parties. The company also argued that the amount of attorney's fees was excessive.

The trial court ruled in favor of the lawyers, awarding them P10,000,000 in attorney's fees. ETPI appealed the decision to the Court of Appeals, which affirmed the decision of the trial court.

ETPI then appealed the decision to the Supreme Court.

ISSUE

Whether or not lawyers are entitled to compensation even in the absence of written agreements between and among the parties.

RULING

Yes.

Under Rule 20.01v of the Canons of Professional Responsibility which provides that, a lawyer shall be guided by the following factors in determining his fees: (a) the time spent and the extent of the service rendered or required; (b) the novelty and difficulty of the questions involved; (c) The importance of the subject matter; (d) The skill demanded; (e) The probability of losing other employment as a result of acceptance of the proffered case; (f) The customary charges for similar services and the schedule of fees of the IBP chapter to which he belongs; (g) The amount involved in the controversy and the benefits resulting to the client from the service; (h) The contingency or certainty of compensation; (i) The character of the employment, whether occasional or established; and (j) The professional standing of the lawyer.

In this case, the Court held that lawyers are entitled to reasonable compensation for their services, even if there is no written agreement between the lawyer and the client. The Court also held that the amount of attorney's fees awarded by the trial court was reasonable.

Hence, that lawyers are entitled to reasonable compensation for their services, even if there is no written agreement between the lawyer and the client.