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Arce V PNB

The case involved determining reasonable compensation for attorney Fernando Arce for legal services related to guardianship of the incapacitated Vicente Arevalo. The guardian initially offered P200, which the court raised to P400, but Arce argued he should receive P5,000. The court found Arce pursued employment as Arevalo's attorney, preparing legal documents, conducting negotiations and investigations. Considering Arevalo's wealth of around half a million pesos and factors like importance and extent of services, the court determined P1,000 as reasonable compensation, modifying the lower court's ruling.

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197 views1 page

Arce V PNB

The case involved determining reasonable compensation for attorney Fernando Arce for legal services related to guardianship of the incapacitated Vicente Arevalo. The guardian initially offered P200, which the court raised to P400, but Arce argued he should receive P5,000. The court found Arce pursued employment as Arevalo's attorney, preparing legal documents, conducting negotiations and investigations. Considering Arevalo's wealth of around half a million pesos and factors like importance and extent of services, the court determined P1,000 as reasonable compensation, modifying the lower court's ruling.

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G.R. No.

L-43053

December 9, 1955

In re Guardianship of the incapacitated Vicente Arevalo FERNANDO


ARCE, claimant-appellant,
vs.
THE PHILIPPINE NATIONAL BANK, guardian-appellee.
Fernando Arce in his own behalf.
Camus and Delgado for appellee.
MALCOLM, J.:
The question to be decided in this case to do with the determination of the reasonable
compensation which Attorney Fernando Arce receive for services rendered in connection
with the guardianship of the incapacitated Vicente Arevalo. The guardian of the person of
the incapacitated offered to pay the sum of P200 and on the matter coming on for
hearing before the Court of First Instance of Manila it was raised to P400. Appearing from
this order, the attorney asks that he be allowed the sum of P5,000.
Something is made of the manner in which the services of Attorney Arce contracted, but
this is beside the point, for it is evident that the relation of attorney and client existed. The
record further shows that in pursuance of such employment, Attorney Arce prepared a
petition praying for the appointment of a guardian of the person of the incapacitated and
a successful conclusion after a hearing in court, conducted certain negotiations with the
banks, made the necessary investigation, and attended to other incidental matters. The
inventory of the properties belonging to the incapacitated Vicente Arevalo showed him to
be worth approximately half a million pesos. Predicated on these facts, our opinion is that
the trial court was overly strict in arriving an amount which would adequately compensate
Attorney Arce for his legal work.
The law is a profession, not a business. Lawyers are officers of the court. That is true. At
the same time professional men are entitled to have and recover from their clients a
reasonable compensation for their services rendered with a view to the importance of the
subject matter of the controversy, to the extent of the services rendered, and the
professional standing of the lawyer. Pursuant to the power entrusted to the courts to
base conclusions on their professional knowledge relative to the fees which should be
rewarded lawyers, courts have constantly to protect clients from unconscionable or
unreasonable claims. On the other hand, the standing of the members of the bar is not
enhanced by quibbling relative to just fees, equivalent to the bargaining had between a
prospective purchaser and a merchant in the markets before a sale is made.lawphi1.net
Taking into consideration the established facts and the factors which determine a
reasonable compensation for a lawyers, we believe that Attorney Arce is entitled to
P1,000 for his services.
Sustaining the appeal to the above extent, the order in question will be modified and
Attorney Fernando Arce allowed the sum of P1,000 to be paid by the Philippine National
Bank as the guardian of the property of the incapacitated out of the property of the latter.
So ordered, with the costs of this instance assessed against the appellee.
Villa-Real, Imperial, Butte, and Goddard, JJ., concur.

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