PAFLU v. Binalbagan

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PAFLU v. Binalbagan, G.R. L-23959, November 29, 1971. Reyes, J.B.L.

Section 24, Rule 138, Rules of Court imports the existence of attorney-client
relationship as a condition for the recovery of attorney’s fee. Such relationship cannot
exist unless the representative is a lawyer. Since respondent Muning is not one, he
cannot establish an attorney-client relationship with Enrique Entila and Victorino
Tenezas or with PAFLU, and he cannot, therefore, recover attorney's fees.

FACTS
In Case No. 72-ULP-Iloilo titled, "PAFLU, et al, vs. Binalbagan-Isabela Sugar Co., et
al.,” the Court of Industrial Relations rendered a decision ordering the reinstatement
with backwages of complainants Enrique Entila and Victorino Tenazas. Said decision
became final and executory. Cipriano Cid & Associates, counsel of record for the
winning complainants, filed a notice of attorney's hen equivalent to 30% of the total
backwages. Atty. Atanacio Pacis also filed a similar notice for a reasonable amount.
Complainants Entila and Tenazas filed a manifestation indicating their nonobjection.
Then, Quintin Muning filed a "Petition for Award of Services Rendered"
equivalent to 20% of the backwages. Muning's petition was opposed by Cipriano Cid
& Associates on the ground that he is not a lawyer.
The records of case show that the charge was filed by Cipriano Cid & Associates
through Atty. Atanacio Pacis. All the hearings were held in Bacolod City and
appearances made in behalf of the complainants were at first by Atty. Pacis and
subsequently by Muning.
The Court of Industrial Relations awarded 25% of the backwaters as compensation
where10% of such was awarded to Muning who is not a lawyer. In this petition, the 10% award
given to Muning was sought to be voided.

ISSUE
Whether or not a non-lawyer may recover attorney’s fee for legal services rendered.
(NO)

RULING
In Amalgamated Laborers' Association, et al. vs. Court of Industrial Relations, et al.,
it was stated that an agreement providing for the division of attorney's fees,
whereby a non-lawyer union president is allowed to share in said fees with lawyers,
is condemned by Canon 34 of Legal Ethics and is immoral and cannot be justified. An
award by a court of attorney's fees is no less immoral in the absence of a contract, as
in the present case.
The provision in Section 5(b) of Republic Act No. 875 provides that, "In the
proceeding before the Court or Hearing Examiner thereof, the parties shall not be
required to be represented by legal counsel . . ." is no justification for a ruling that the
person representing the party-litigant in the Court of Industrial Relations, even if he
is not a lawyer, is entitled to attorney's fees: for the same section adds that, "it shall
be the duty and obligation of the Court or Hearing Officer to examine and cross
examine witnesses on behalf of the parties and to assist in the orderly presentation of
evidence." thus making it clear that the representation should be exclusively
entrusted to duly qualified members of the bar.
The permission for a non-member of the bar to represent or appear or defend in the
said court on behalf of a party-litigant does not by itself entitle the representative to
compensation for such representation. As Section 24, Rule 138, Rules of Court
imports the existence of attorney-client relationship as a condition for the recovery
of attorney’s fee. Such relationship cannot exist unless the representative is a
lawyer. Since respondent Muning is not one, he cannot establish an attorney-client
relationship with Enrique Entila and Victorino Tenezas or with PAFLU, and he
cannot, therefore, recover attorney's fees.

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