Assignment in

Problem Areas in Legal Ethics

7:30-9:30 PM, Friday
1st Semester, AY 2014-15

Submitted by: Jaucian, Ma. Luniflor B. September 18, 2014
Assignment:
How may a lawyer claim legal fees based on quantum meruit, in the event there is no agreement
for payment of fees?
Research:
Quantum meruit is a latin term meaning "as much as he deserved," the actual value of services
performed. There are three main situations where entitlement to payment on a quantum meruit
basis is most likely to arise:
1. Where the parties to a contract fail to agree a price.
2. Where no contract comes into existence.
3. When a contract is brought to a premature end by a repudiatory breach.

Some courts allowed a lawyer who withdraws for justifiable reason or is terminated by a client
without cause to compensation for the services rendered based on the theory of quantum meruit.
If the lawyer sues for payment for services in such circumstances the judge will calculate the
amount due based on time and usual rate of pay or the customary charge, based on quantum
meruit by implying a contract existed. Where the discharge is for cause, the lawyer has no right to
compensation. Where the discharge is without cause before the completion of services, the lawyer
is limited to recovering the reasonable value of its services in quantum meruit. Unfortunately, but
inevitably, the courts have not laid down any hard and fast rules for the assessment of what is a
"reasonable sum", as this depends on all the circumstances, and evidence of figures discussed
between the parties in negotiation. The value of the benefit received by the defendant will usually
be the measure for determining what is a "reasonable sum". And once the value of the benefit has
been fixed, the paying party has no contract to fall back on it nor can either party go to adjudication
for a quick answer to a dispute. No contract means no adjudication or payment rules.

In determining attorneys fees on the basis of quantum meruit, the guidelines in determining the
proper amount of attorney's fees under Rule 20.01 of the Code of Professional Responsibility are
given weight (Rosario vs. De Guzman, 2013).

So while quantum meruit does plug the payment hole left by the absence of a contract, to enable a
claimant to recover some, if not all, of its costs, it is generally a distant, and uncertain, second best
to having an agreed and signed contract in place.
LexisNexis
Lexology, Ryan Fordham, 9/21/11