Lijuaco v Atty. Terrado, AC No. 6317, Aug.

31, 2006
FACTS: On February 13, 2004, an administrative complaint 1 was filed by complainant Luzviminda C. Lijauco against respondent Atty. Rogelio P. Terrado for gross misconduct, malpractice and conduct unbecoming of an officer of the court when he neglected a legal matter entrusted to him despite receipt of payment representing attorneys fees. According to the complainant, she engaged the services of respondent sometime in January 2001 for P70,000.00 to assist in recovering her deposit with Planters Development Bank, Buendia, Makati branch in the amount of P180,000.00 and the release of her foreclosed house and lot located in Calamba, Laguna. The property identified as Lot No. 408-C-2 and registered as TCT No. T-402119 in the name of said bank is the subject of a petition for the issuance of a writ of possession then pending before the Regional Trial Court of Binan, Laguna, Branch 24 docketed as LRC Case No. B-2610. In the instant scenario, despite the strong protestation of respondent that the Php70,000.00 legal fees is purely and solely for the recovery of the Php180,000.00 savings account of complainant subsequent acts and events say otherwise, to wit: 1.) The Php70,000.00 legal fees for the recovery of a Php180,000.00 savings deposit is too high; 2.) Respondent actively acted as complainants lawyer to effectuate the compromise agreement. ISSUE: WON Atty. Terrado was administratively liable for charging excessive fees. HELD: Yes. Respondents claim that the attorneys fee pertains only to the recovery of complainants savings deposit from Planters Development Bank cannot be sustained. Records show that he acted as complainants counsel in the drafting of the compromise agreement between the latter and the bank relative to LRC Case No. B-2610. Respondent admitted that he explained the contents of the agreement to complainant before the latter affixed her signature. Moreover, the Investigating Commissioner observed that the fee of P70,000.00 for legal assistance in the recovery of the deposit amounting to P180,000.00 is unreasonable. A lawyer shall charge only fair and reasonable fees.11 WHEREFORE, Atty. Rogelio P. Terrado is found GUILTY of violating Rules 1.01, 9.02, 18.02 and 20.01 of the Code of Professional Responsibility. He is SUSPENDED from the practice of law for six (6) months effective from notice, and STERNLY WARNED that any similar infraction will be dealt with more severely. He is further ordered to RETURN, within thirty (30) days from notice, the sum of P70,000.00 to complainant Luzviminda C. Lijauco and to submit to this Court proof of his compliance within three (3) days therefrom. CANON 20 - A LAWYER SHALL CHARGE ONLY FAIR AND REASONABLE FEES. Rule 20.01 - 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. Rule 20.02 - A lawyer shall, in case of referral, with the consent of the client, be entitled to a division of fees in proportion to the work performed and responsibility assumed. Rule 20.03 - A lawyer shall not, without the full knowledge and consent of the client, accept any fee, reward, costs, commission, interest, rebate or forwarding allowance or other compensation whatsoever related to his professional employment from anyone other than the client. Rule 20.04 - A lawyer shall avoid controversies with clients concerning his compensation and shall resort to judicial action only to prevent imposition, injustice or fraud.