In shopping for a lawyer in the Philippines, the first thing the usually comes to mind is how

much a lawyer charges. Generally, the professional fees of a lawyer depend on the nature and
complexity of the case, the financial capacity of the client, the extent of work required, among
other factors. The usual legal fee arrangements in the Philippines are: initial consultation fee,
fixed retainer, time-based charging, acceptance fee, and contingent fee arrangements.
The initial consultation fee is what you can expect the attorney to bill you for your initial
consultation with him or her. While some lawyers offer free consultation, some charge initial
consultation fees. There are other attorneys who bill on their usual or reduced hourly rate. There
is no standard practice in the Philippines. Hence, the best thing to do before going for an initial
consultation is to call before making the appointment.
The fixed retainer fee is a predetermined fee paid on a lump sum, in advance of any legal work to
be performed. In corporations, for example, a general corporate retainer would include general
corporate services such as drafting minutes and board resolutions, secretarys certifications, ant
the like. There are also specialized retainer fee arrangements depending on the requirements of
the client. It can be expected of course, that in specialized retainer arrangements, the fixed
retainer fees are much higher.
Time-based charging is a fee arrangement where the lawyer bills based on his given hourly rate.
The client is billed based on the actual time spent by the lawyer. At the end of every billing
cycle, which in most cases is on a monthly basis, the lawyer sums up the actual time he or she
spent for your case, doing research, answering your calls, consultations, meetings, etc. The bill is
computed by adding up the total time spent by the attorney multiplied by the latters given hourly
rate. Before entering into such arrangements, you may want to ask the lawyer for an estimate of
how much time it would take to complete the activity.
The acceptance fee is the fee charged by the lawyer for merely accepting the case. The rationale
behind this is, once the lawyer agrees to act on behalf of a client, he generally loses the o
pportunity to handle cases for the opposing party. Thus, a lawyers acceptance of a case would
mean that he is forgoing prospective work for the other party. The acceptance fee is normally
applied in litigation, and coupled with a per stage or per activity type of billing, where the lawyer
divides his professional fees depending on the stage of the proceedings.
In contingent fee arrangements, the lawyer gets paid only if the legal activity is successful. In
most cases, contingent fee arrangements are utilized by clients who cannot afford the services of
a lawyer. In such case, the lawyer gets to collect a certain portion of the property or money
involved, if he succeeds in the case or activity. Because of the risk of not getting paid at all,
lawyers tend to collect between 30%-50% of whatever the client gets.
In most cases, out-of-pocket expenses such as filing fees, travel expenses, printing etc., are
excluded from such arrangements. Since these expenses are incurred for the benefit of the client,
they are the clients responsibility. Of course, you can always ask for a cap on expenses.
The person looking for a lawyer must bear in mind that, generally, professional fees are subject
to negotiation. You can even try to negotiate terms of payment, if this is possible.

For more information or legal advice in the Philippines, you may e-mail me at
knicolas@ndvlaw.com or visit our website www.ndvlaw.com.
The information provided in this website should not be construed as legal advice or opinion. This
is for information purposes only and is not intended to solicit or create, and does not create, an
attorney-client relationship between Atty. Nicolas or NDV Law and any person or entity. Please
consult with a lawyer about your concerns.

How much are you willing to spend?

Legal services aren't cheap, and you should know how much are you willing to spend up front.
Good representation may come at a steep, but not unreasonable, price.
When you're shopping for legal services, always ask potential attorneys to fully explain their fees
and billing practices. Don't hesitate to ask detailed questions and don't be embarrassed. A
lawyer's willingness to discuss fees is an important indicator of client service.

What are typical fee arrangements?

Standard payment arrangements an attorney may suggest include:

Hourly rates
Flat fees
Retainers
Contingent fees

Hourly Rates
Hourly rates are the most common arrangement. Under this arrangement, the attorney gets paid
an agreed-upon hourly rate for the hours worked on a client's case or matter until it's resolved.
It depends on each attorney's experience, operating expenses, and the location of his or her
practice. Cheaper isn't necessarily better when it comes to your legal protection. A more
expensive lawyer with a lot of experience may be able to handle a complex problem more
quickly. Also, an experienced attorney will be able to better estimate how many lawyer hours a
particular matter will take to resolve.
Flat Fees
Where a legal matter is simple and well-defined, lawyers typically charge a flat fee. Examples of
flat fee matters include wills, uncontested divorces and simple bankruptcy filings. If an attorney
suggests or has advertised a flat fee, be sure you understand exactly what that fee will and will
not cover. The flat fee might not include expenses such as filing fees.
Retainer Fee

A retainer fee is typically, but not always, an advance payment on the hourly rate for a specific
case. The lawyer puts the retainer in a special trust account and deducts from that account the
cost of services as they accrue. During the course of legal representation, clients should review
periodic billing statements reflecting amounts deducted from the retainer.
Most retainers are non-refundable unless labeled "unreasonable" by a court. If you decide to drop
a case that your lawyer has worked on before the retainer has been exhausted, you may forfeit
the remainder.
Contingent Fees
In certain types of cases, attorneys work on a contingent fee basis. Contingent means that the
attorney takes no fee from the client up-front, but gets a percentage typically one-third (1/3) of
the settlement or money upon judgment. Contingent fee arrangements are typical for:

Plaintiff's counsel in automobile accident lawsuits

Medical malpractice
Other personal injury cases
Debt collection cases.

Courts set limits on the contingency fees a lawyer can receive from personal injury suits. Of
course, lawyers and clients are free to negotiate contingency fees less than the standard one-third.
Contingent fee arrangements in certain kinds of cases such as divorce, criminal cases, or child
custody cases are prohibited.

How much can you expect to pay?

Rates for legal fees vary based on location, experience of the lawyer, and the nature of the matter.
Believe it or not, rates may vary anywhere from $50 an hour to a $1,000 an hour or more.
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In rural areas and small towns, lawyers tend to charge less, and fees in the range of $100 to $200
an hour for an experienced attorney are probably the norm. In major metropolitan areas, the
norm is probably closer to $200 to $400 an hour. Lawyers with expertise in specialized areas
may charge much more.
In addition, you can expect to be charged at an hourly rate for paralegals and other support staff.
A good paralegal's time, for example, may be billed out at $50 to a $100 an hour or perhaps
more. It would not be unusual for a legal secretary's time on things like document production to
be billed out at perhaps $25 to $50 an hour.

What About Expenses and Court Costs?

Little things add up. Carefully discuss with your lawyer anticipated miscellaneous costs so that
you can estimate those costs up front and avoid any unpleasant surprises. Be prepared to
scrutinize court costs, filing fees, secretarial time, and delivery charges.

Keeping Track of Legal Fees

Get a fee agreement in writing. If an attorney is unwilling to put a fee agreement in writing, cross
that attorney off your list. Some states require written fee agreements for most cases.
Ask your attorney to include in the fee agreement a provision for periodic, itemized billing. An
itemized bill should list and describe all charges so that you can review them and compare them
to your fee agreement.
You might want to arrange for a ceiling or limit on fees. You might also require your lawyer to
get your approval before proceeding beyond a certain amount in legal costs. If you've hired an
attorney to recover a $10,000 debt, you probably don't want to pay $8,000 in legal fees to resolve
the matter.
Next: Free or Low-Cost Legal Sercvices

Free or Low-Cost Legal Services

Depending upon your financial situation, you may be entitled to free legal services. If you are
indigent within the meaning of any applicable state or federal guideline, you may be eligible for
representation by a public defender in a federal or state criminal case. Low-income people may
also qualify for free representation in landlord-tenant and divorce cases. If you need financial
help in obtaining legal representation and think that you might qualify for indigent status, contact
pro bono and legal services organizations in your area.
In many cases you don't have to be indigent to get a lawyer for free or at little cost. Some
organizations offer their members prepaid legal plans. Often plans include a low or no-cost
consultation, or low-cost services in uncontested divorces or simple wills matters. Check your
liability insurance policy. Your policy may include coverage for attorney fees or require your
insurance company to provide an attorney to defend you in a lawsuit.
Many unions provide free legal services to their members in union-related matters. If your case
or claim is work-related, talk to your union representative.
Certain rights or advocacy groups might want to get involved in your case. For example, if you
are challenging an unlawful attack on your civil liberties or right to free speech, an organization
such as the American Civil Liberties Union may be interested in helping you.
Charged with a Crime, but Can't Afford a Lawyer?

If you are indigent and if you are charged with a serious offense, you may be entitled to have an
attorney appointed to represent you for free. The federal government and the states provide for
the appointment of public defenders for indigent criminal defendants.
Public defenders are paid by the government and are required to represent clients as vigorously
and competently as private attorneys. Public defenders often are specialists with many years of
experience in the defense of criminal cases. Don't underestimate their expertise.
Tagged as: Research
Pro bono bases cases handled for free are done by lawyers with a soft spot for those with less
in life, or who just cant say no to a needy litigant.
Some lawyers like the late Winefreda Geonzon who formed the Free Legal Asssistance
Volunteers Association (Free Lava) in the 1980s, made prison reform in the congested Cebu city
jail, especially the needs of child offenders, an advocacy and community service. After her death
in 1990, the torch hasnt been taken up with the same fervor as when she started the campaign as
legal aid director of the IBP Cebu city chapter.
More often than not, lawyers prioritize winning the case of clients for a clear fee.

In 2012, both IBP chapters in Cebu city and province adopted a schedule of standard minimum
attorneys fees after updating the one published in 2005.
The new version added the word standard.
The rates are supposed to guide fellow lawyers in charging their clients, and for litigants to know
what it costs to retain professional legal services.
Its main rationale is economic.

Joint Resolution No. 02-2012 states that both IBP chapters adopted the schedule n view of the
continuous increase in fuel prices and of basic commodities thereby adversely affecting the
corresponding office maintenance and other related expenses in rendering legal services.
The basic fee is P500 per hour for plain consultation.
Research would cost P500 per hour.
A monthly retainship should start at P5,000.
The acceptance fee of a lawyer to defend a person accused in a criminal case starts at P30,000
for the lowest level court such as the Municipal Trial Court in Cities.
Major crimes like murder and rape are tried in the Regional Trial Court (RTC). The acceptance
fee for a lawyer would start at P50,000.
In case a guilty verdict is appealed to a higher court, the lawyers acceptance fee is P75,000 for
the Court of Appeals, and for a case in the Supreme Court , P100,000.
This is separate from appearance fees billed each time a lawyer shows up in court for a clients
hearing: P3,000 per hearing in the RTC or P1,000 per hour.
In the lower courts, a lawyer would ask for P1,500 or P800 per hour.
For a case heard before the Sandiganbayan or Court of Appeals, the fee is P5,000. A lawyer
who appears before the Supreme Court would expect to be paid at least P10,000 per hearing or
P2,000 per hour.
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This is prepared by the Lepiten and Bojos Law Office to orient clients on attorneys fees. To
prevent any misunderstanding between lawyer and client, it is encouraged that the client of the
Law Office read these notes.

This includes the policies and practices adopted by this Law Office. Most of these policies are
culled from the usual and standard practice of Filipino Trial Lawyers.

Although this orientation is a guide to clients, there are instances when some policies may be
modified to adjust to the special circumstances of the client or the case.

Fee arrangement agreement before any legal

services is undertaken.

There must be a prior agreement relating to attorneys fees before the commencement of any
work. This applies to new cases or legal work from new clients or to new cases from old clients.
If possible, the agreement must include an estimate of the possible and probable total cost of the
case or legal work.

If for whatever reason, fee arrangement has not been discussed or the lawyer might have
forgotten to bring it up, it is advised that the client initiates the talk on fee arrangement to prevent
any misunderstanding.

Special proceedings or incidental cases are separate from the main case, thus, different fee
arrangement is necessary.

It is possible that out of the main case, there are new and separate proceedings that will branch
out like certiorari, injunctions and prohibitions and other similar cases. These cases are incidental
to the main case but the ruling is prejudicial or crucial to the main case handled by the law office.

Acceptance Fee and Subsequent Attorneys Fees

Acceptance fee is the payment of the initial legal services such as the legal research, preparation
and filing of the initiatory pleadings, and preparatory activities in connection with the case.
Acceptance fee is the initial retainers fee asked by the lawyer to file, pursue or defend a case.

The Law Office requires for the payment of an acceptance fee from the client before it will start
to render legal services. The fees depend on the kind of case, the legal work needed and the
difficulty of the subject matter.

It is understood that attorneys fees will be charged for subsequent legal services like filing of
important pleadings and motions like formal offer of exhibits, memorandum, demurrer to
evidence and similar pleadings. (excluding motion to cancel hearing, resetting and notice of
change of address and similar pleadings).

In cases of appeal, the Law Office requires for the payment of legal services for the preparation
and filing of appellants or appellee's brief.

Appearance Fee

Appearance Fee shall be charged every time the lawyer attends to the hearing of the case and all
other meetings or conferences in connection with the case requiring the personal appearance of
the lawyer. .

All Expenses and Fees of Litigation are for the Account of the Client

It is expected that there are operational expenses that will be incurred by reason of the case
handled or the legal work performed. These expenses shall be for the account of the client.

These are the photocopying, mailing expenses and similar expenses.

In most instances where the expenses involved a substantial amount, the client needs to deposit
and give the amount to the Law Office. These are expenses for publication, filing fees, and
reproduction cost in appeal cases and other similar expenses.

The client will be asked to pay all the incidental cost relating to the case like transcript of
records, photocopying, mailing, and other court fees.

Rule 141 of the Rules of Court provides for Legal Fees

For details of the legal fees required by the Supreme Court and other lower courts, Rule 144 of
the Rules of Court provides for the amount of fees.

Attorneys fees found in the Judgment shall be for the lawyer

There are judgments, which provides for attorneys fees to be paid by the losing party. In this
case, the amount shall be for the lawyer of the winning party.

Retainers of the Law Office enjoy certain privileges

Retainers of the Law Office have special arrangement and their relationship is defined in each of
the retainer contracts. In the absence of any stipulations, then, the general policy of the Law
Office shall be adopted.

Attorneys Fees varied depending on various

factors.

It is very hard to have a fixed attorneys fees because it is dependent on many factors. This
explains why lawyers cannot categorically fix an amount not unless she would be able know the
details of the case and the circumstances relating to the issue.

In the case of Mambualao Lumber Co. vs. PNB, GR No. L- 22973, the following are the factors
in determining attorneys fees:

1. the time and labor required, the novelty and difficulty of the questions involved and the
skill required properly to conduct the cause
2. whether the acceptance of employment in the particular case will preclude the lawyers
appearance for others in cases likely to arise out of the transaction, and in which there is a
reasonable expectation that otherwise he would be employed, or will involve the loss of
other business while employed in a particular case of antagonism with other clients.
3. the customary charges of the bar for similar services (Attorneys fees provided by the
Integrated Bar of the Philippines) See IBP Schedule of Attorneys Fees.
4. the amount involved in the controversy and the benefits resulting to the client from the
service
5. the contingency or the certainty of the compensations; and
6. the character of the employment whether casual or for an established or constant client.