Dear Attorney,

I hope you are doing well. I would like to inquire if it's possible to make a partial payment, like 50-70%, before legal services are rendered and pay the remaining balance after the service is completed. My concern is that if I pay in full upfront, the service quality might change. I've heard cases where follow-ups become difficult once full payment is made.

Thank you for your advice.

Sincerely,
Concerned Client

Insights

In the Philippines, the issue raised in this scenario touches upon the legal concept of attorney's fees and professional engagement agreements. Specifically, it concerns the payment structure for legal services and the expectations of service quality tied to such payments. Here's a breakdown of this concept under Philippine law:

Attorney’s Fees and Payment Arrangements

The Civil Code of the Philippines allows attorneys and clients to negotiate fees, including the timing and manner of payment. This flexibility can include staggered payments, partial payments, or lump sum arrangements. Article 1305 of the Civil Code supports the freedom of contract, meaning that parties can stipulate the terms they find mutually acceptable, provided these terms are not contrary to law, morals, or public policy.

Full Payment vs. Partial Payment

While full payment before rendering services is sometimes requested, it is crucial to ensure that a clear agreement is made between the lawyer and the client regarding the quality and completion of the services. There are no hard rules in Philippine law mandating full payment before or after services, but the contract should outline expectations to avoid disputes. Partial payments, such as an initial retainer fee followed by a balance payment, are common practices.

Performance of Services and Ethical Obligations

The Code of Professional Responsibility for Lawyers in the Philippines obliges attorneys to perform their duties with competence, diligence, and respect for their clients, irrespective of the payment structure. Canon 18 of the Code emphasizes that a lawyer must serve with "competence and diligence," and this obligation does not change based on whether the client has made full or partial payment.

Avoiding Disputes Through a Clear Agreement

To safeguard both parties' interests, it is advisable to have a written agreement detailing the fee structure and the scope of services expected. This document should clarify:

How much will be paid initially.
The conditions under which subsequent payments will be made.
The services expected at each stage.

This clarity protects the client from subpar service after making full payment and assures the lawyer that they will be compensated for the work done.

In cases where disputes arise due to dissatisfaction with service after payment, the client can seek remedies through the Integrated Bar of the Philippines (IBP) by filing a complaint for unethical behavior, should the lawyer neglect their responsibilities after receiving full payment.