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OCA CIRCULAR NO. 123-2023-A

TO ALL JUDGES OF THE FIRST AND

SECOND LEVEL COURTS

SUBJECT GUIDELINES IN THE PAYMENT OF

ATTORNEY'S FEES TO THE PUBLIC
ATTORNEY'S OFFICE

This addresses the letter dated 6 February 2023 of the Public Attorney's
Office (PAO) requesting for guidelines to be followed by judges regarding
payment ofPAO attorney's fees.

It is settled that the award of attorney's fees is the exception rather than
the general rule; counsel's fees are not awarded every time a party prevails in a
suit because of the policy that no premium should be placed on the right to
litigate. In the ordinary sense, attorney's fees represent the reasonable
compensation paid to a lawyer by his client for the legal services he has
rendered to the latter; while in its extraordinary concept, they may be awarded
by the court as indemnity for damages to be paid by the losing party to the
prevailing party. Attorney's fees as part of damages are awarded only in the
instances specified in Article 2208 of the Civil Code. I On occasions that those
fees are awarded, the basis for the grant must be clearly expressed in the
decision of the court.'

In labor cases, attorney's fees partake of the nature of an extraordinary

award granted to the victorious party as an indemnity for damages. As a
general rule, it is payable to the client, not to his counsel, unless the former
agreed to give the amount to the latter as an addition to, or part of the
counsel's compensation.' Article 111 of the Labor Code provides that the
culpable party may be assessed attorney's fees equivalent to ten percent (10%)
of the amount of wages recovered in cases of unlawful withholding of wages.
The withholding of wages need not be coupled with malice or bad faith."

The laborer's availment of the free legal services offered by the PAO
does not prevent the award of attorney's fees upon the successful conclusion
of the litigation.' The Court has clarified that there is nothing that prevents
I Benedicto v. Villaflores, G.R. No. 185020,06 October 2010, as cited in Philippine National Construction
Corporation v. APAC Marketing Corporation, G.R. No. 190957, June 5, 2013.
2 Philippine National Construction Corporation v. APAC Marketing Corporation, supra.
3 Kaisahan at Kapatiran ng mga Manggagawa at Kawani sa MWC-East Zone Union, et at. v. Manila Water
Co., Inc., 676 Phil. 262, 275 (2011), citing PCL Shipping Philippines, Inc. v. NLRC, 540 Phil. 65, 84 (2006),
as cited in Joselito A. Alva v. High Capacity Security Force, Inc. and Armando M. Villanueva, G.R. No.
203328. November 08,2017
4 Lorenzo T. Tangga-an v. Philippine Transmarine Carriers, Inc. et al., 706 Phil. 339, 340 (2013), as cited in
Alva v. High Capacity Security Force, Inc., supra.
5 Alva v. High Capacity Security Force, inc., supra.
PAO clients and their PAO lawyers from entering into an agreement assigning
attorney's fees in favor of the latter." Under the PAO Law or Republic Act
No. 94067, the costs of the suit, attorney's fees and contingent fees imposed
upon the adversary of the PAO clients after a successful litigation shall be
DEPOSITED to the "BTr - Regular Fund" with Account No. 3402-2844-
20, using the Unified Account Code Structure (UACS) No. 150100000000
of the PAO and the National Collecting Officer (NCO) Code of the
concerned Clerk of Court/Accountable Officer, and shall be disbursed for
special allowances of authorized officials and lawyers of the PAO. 8

The PAO Attorney's Fees shall be RECEIPTED under General

Fund (GF) and REPORTED in the GF -Cash Receipt Register (CRR)
under the new column provided in the herein attached GF -CRR form.
However, if the said fees were paid in cash as explained below, the same
shall NO LONGER be receipted and reported under GF account,
provided that a copy of proof of payment to the authorized PAO lawyer
shall be attached to the case folder for audit purposes. If no proof of cash
payment is attached, the Office of the Clerk of Court may require
payment.

Bearing the above in mind, judges are REMINDED to take into

account in their decisions, if so warranted, after a showing that PAO client/s
and P AO lawyer/s entered into an agreement assigning costs of the suit,
attorney's fees and contingent fees to the PAO lawyer:

1) The decisions shall explicitly mention that costs of the suit, attorney's
fees, and contingent fees imposed upon adversaries of PAO clients after
a successful litigation, if so warranted by the courts, are payable to the
PAO and to be deposited in the National Treasury as trust fund for the
PAO pursuant to Section 6 ofR.A. No. 9406;

2) For payments of costs of the suit, attorney's fees, and contingent fees
by check, the decisions shall expressly direct the adversaries of P AO
clients to issue the same in the name of the PAO: "PUBLIC
ATTORNEY'S OFFICE";

3) For cash payments of costs of the suit, attorney's fees, and contingent
fees collected by the courts, the decisions shall explicitly state that the
same may be released to an authorized P A 0 personnel, after sufficient
proof of said authority; and,

4) Should there be a compromise agreement between the PAO client and

the latter's adversary, the decision and the compromise agreement shall
expressly state that the costs of the suit, attorney's fees, and contingent

6 supra.
7 AN ACT REORGANIZING AND STRENGTHENING THE PUBLIC ATTORNEY'S OFFICE (PAO),
AMENDING FOR THE PURPOSE PERTINENT PROVISIONS OF EXECUTIVE ORDER NO. 292,
OTHERWISE KNOWN AS THE "ADMINISTRATIVE CODE OF 1987", AS AMENDED, GRANTING
SPECIAL ALLOWANCE TO PAO OFFICIALS AND LAWYERS, AND PROVIDING FUNDS
THEREFOR, March 23, 2007.
8 Our Haus Realty Development Corporation v. Alexander Parian, et al. 740 Phil. 699 (2014)
 fees are payable to the P AO, and, if so agreed upon, would not be
subject to waiver.

In case of deposit to the BTr-Regular Fund account, a copy of the

deposit slip shall be provided to the concerned PAO Lawyer, for his/her
information.

This amends OCA Circular No. 123-2023 dated 20 March 2023.

For guidance and strict compliance.

18 April 2024

JENNY IND R. ALDECOA-DELORINO

Deputy Court Administrator and
Offi cer- in -Charge
Office of the Court Administrator
(per Memorandum Order No. 39-2024
dated 12 April 2024)

~DSI/CPP/123-2023A
 CASH RECEIPTS REGISTER
GENERAL FUND
For the Month Ending _

Entity Name: _ Name of Clerk of Court/Accountable Officer: _

Station :, _ Contact No.: _
Address :, _
Fund Cluster: Regular Ag('ncy Fund
LBP Account No. : _ Sh~.No. : _

BREAKDOWN OF RECEIPTS
Cash - Collecting Officer (10101010)
Fines and OTIlERS
Interest Income Other Service lucerne
Penalties
Date OR No. Name of Payor Deposits Fiduciary Fund Bail Bond Forfeited Money PAO Attorney's
Receipts Balance Fines lCACS Amount
...... National Treasury I . ... Interests For~~.I.I.~res . Exhibn F~~
.... Account Descnpnon Object Dr
10104010 40202210 40201990 40201990 ·10201990 40201140
Code (Cr)
(+1 (-I

·ltflAI.S

Cash on Hand. Beginning of the Quarter

Add: Total Collections, Current Period
Total
Less: Total Deposits. Current Period
Cash on Hand, End of the Quarter

CERTIFIED CORRECT: Subscribed and sworn to before:

Clerk ofCourt/Accountable Officer ExecutivePresiding Judge

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