2016 (Legal Ethics) Bar Exam Questions: Question 7

[Answer/discuss the question below, or see 2016 bar exam Legal Ethics Instructions; 2016 Mercantile Law questions: 12345678910111213141516171819 and 20; See also 2016 Bar Exam: Information, Discussions, Tips, Questions and Results]

-VII-

Apollo hired Atty. Dennis to file an action for damages. Since Apollo has no money, he entered into a contingent fee agreement where Atty. Dennis will shoulder all expenses of litigation and will not charge for legal services. In case of a favorable decision, Apollo agreed to transfer to his lawyer a lot in Cebu. Eventually, Apollo won the case. Atty. Dennis asked Apollo to execute the deed of sale, but the latter refused upon advice of a friend that the agreement is illegal. Due to threats of legal action by his lawyer, Apollo filed a complaint before the Supreme Court alleging that the agreement is a champertous contract. Rule on the legality of the agreement on contingent fee and the propriety of getting the property of Apollo. Explain. (5%)

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