WHAT IS A CHAMPERTOUS CONTRACT?

It is one where the lawyer stipulates

with his client in the prosecution of the
case that he will bear all the expenses
for the recovery of things or property
being claimed by the client, and the
latter agrees to pay the former a portion
of the thing or property recovered as
compensation.
It is void for being against public policy.

CONTINGENT
CONTRACT
Payable in cash
Lawyers do not
undertake to pay
all expenses of
litigation
Valid

VS

CHAMPERTOUS
CONTRACT
Payable in kind
only
Lawyers
undertake to pay
all expenses of
litigation
Void

CANON 20
RULE 20.02
A lawyer shall, in cases of referral, with
the consent of the client, be entitled to a
division of fees in proportion to the work
performed and responsibility assumed.

HOW DOES LAWYER-REFERRAL

SYSTEM WORK?
Under this system, if another counsel is
referred to the client, and the latter agrees
to take him as collaborating counsel, and
there is no express agreement on the
payment of attorneys fees, the said
counsel will receive attorneys fees in
proportion to the work performed and
responsibility assumed. The lawyers and
the client may agree upon the proportion
but in case of disagreement, the court
may fix the proportional division of fees.