This case has been cited 1 times or more.
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2009-01-30 |
CHICO-NAZARIO, J. |
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| In NPC Drivers and Mechanics Association (NPC DAMA) v. The National Power Corporation (NPC),[57] we awarded separation pay in lieu of reinstatement plus backwages to several NPC employees because they were illegally dismissed by the NPC. The NPC employees were represented by a certain Atty. Cornelio P. Aldon (Atty. Aldon) and Atty. Victoriano V. Orocio, (the petitioner in the instant cases) under a legal retainer agreement which provides: (1) no acceptance fee; (2) miscellaneous/out of pocket expenses in the amount of P25,000.00; and (3) twenty-five percent (25%) of whatever amounts/monies are recovered in favor of said NPC personnel contingent on the success of the case. Atty. Aldon and Atty. Orocio filed a Motion for Approval of Charging (Attorney's) Lien pursuant to the legal retainer agreement. Although we granted the said motion, we reduced the amount of attorney's fees which was chargeable on the monies recoverable by the NPC employees from 25% to 10% because:While we duly recognize the right of Atty. Aldon and Atty. Orocio to a charging lien on the amounts recoverable by petitioners pursuant to our 26 September 2006 Decision, nevertheless, we deem it proper to reduce the same. Under Section 24, Rule 138 of the Rules of Court, a written contract for services shall control the amount to be paid therefor unless found by the court to be unconscionable or unreasonable. The amounts which petitioners may recover as the logical and necessary consequence of our Decision of 26 September 2006, i.e., backwages and separation pay (in lieu of reinstatement), are essentially the same awards which we grant to illegally dismissed employees in the private sector. In such cases, our Labor Code explicitly limits attorney's fees to a maximum of 10% of the recovered amount. Considering by analogy the said limit on attorney's fees in this case of illegal dismissal of petitioners by respondent NPC, a government-owned and controlled corporation; plus the facts that petitioners have suffered deprivation of their means of livelihood for the last five years; and the fact that this case was originally filed before us, without any judicial or administrative proceedings below; as well as the fundamental ethical principle that the practice of law is a profession and not a commercial enterprise, we approve in favor of Atty. Aldon and Atty. Orocio a charging lien of 10% (instead of 25%) on the amounts recoverable by petitioners from NPC pursuant to our Decision dated 26 September 2006. | |||||