Are Lawyer Acceptance Fees Refundable If the Case Is Dismissed for Lack of Probable Cause? Philippines

Short answer

Generally, no. In the Philippines, an acceptance fee is usually earned upon engagement and is non-refundable even if a criminal complaint is later dismissed for lack of probable cause. Refunds are possible only in exceptional situations—for example, if there was no or minimal service actually rendered, if the lawyer withdrew without just cause, if the fee was unconscionable, or if a refund clause exists in the written fee agreement. Unused advances for expenses (filing fees, photocopying, courier, transcripts, etc.) are different: those must be accounted for and returned if unspent.

Below is the full picture.


Key concepts you need to separate

1) Acceptance fee vs. other fee types

  • Acceptance fee – Payment for the commitment to handle the matter and to become counsel of record; compensates the lawyer for foregone opportunities and initial professional work (conflict checks, strategy, review, appearances). Typically fixed and non-contingent.
  • Appearance/handling fees – Per hearing or per specific task (drafting a motion, attending inquest, etc.).
  • Retainer – A periodic fee to assure availability for a portfolio of matters.
  • Contingency fee – Pegged to a recovery or outcome (rare in criminal defense and strictly regulated).
  • Advances for expenses – The client’s money, held for costs; not lawyer’s earnings until spent.

2) “Dismissed for lack of probable cause”

This can happen at the prosecutor level (after preliminary investigation) or in court (e.g., after judicial determination). Either way, the dismissal reflects an assessment of the evidence, not whether the lawyer has “earned” the acceptance fee.


Why acceptance fees are ordinarily non-refundable

  1. Nature of the fee The acceptance fee is earned on acceptance because the lawyer assumes professional responsibility, blocks off time, performs initial review, and bears reputational and ethical risk. Its purpose is not to buy a particular result.

  2. Outcome independence Legal practice is an obligation of means, not guaranteed outcomes. A dismissal (or any result) generally does not determine fee entitlement unless you agreed otherwise in writing.

  3. Professional rules on fees Philippine ethical rules require fees to be reasonable, clearly explained (preferably in writing), and properly accounted for. They do not make fees contingent on success unless specifically structured (e.g., a lawful contingency). Thus, a later dismissal does not, by itself, trigger a refund.


Situations when a refund (partial or full) may be proper

  1. No substantial service provided If the lawyer accepted the case, took the acceptance fee, but did little to nothing (no meaningful review, no filings, no advice, no appearances), a partial or even full refund can be justified under reasonableness and quantum meruit (pay only for the value of services actually rendered).

  2. Withdrawal without just cause or abandonment If counsel withdraws without valid reason, abandons the client, or is grossly negligent, the client may seek refund and/or damages, plus possible administrative sanctions.

  3. Unconscionable or clearly excessive fees Courts and disciplinary bodies can reduce or order restitution of unconscionable acceptance fees, considering factors like complexity, novelty, time spent, customary charges, amount involved, and results obtained (as one factor among many, not a guarantee).

  4. Contractual promise to refund Your written fee agreement controls. If it has a clause that refunds or credits the acceptance fee upon early dismissal, that clause governs.

  5. Void or terminated engagement If the engagement is void (e.g., for serious ethical defects) or is terminated early by the client, the typical rule is compensation on quantum meruit—the lawyer is paid only for reasonable value of work actually done; any excess may be refundable.


Important distinction: expenses vs. fees

  • Expenses (filing fees, transcripts, travel, messenger, notarization, etc.) belong to the client. The lawyer must keep records, account, and return any unused balance.
  • Acceptance fees are typically the lawyer’s earnings once the engagement begins; they are not automatically refundable simply because the case ended early or was dismissed.

Practical guidance for clients

  1. Check your contract or engagement letter Look for: scope of work, what the acceptance fee covers, any refund/credit language, termination rights, accounting obligations, and what happens upon early case closure.

  2. Ask for an accounting You’re entitled to a breakdown of work done (time entries, filings, hearings, advice given) and expenses paid from your advances, with receipts where appropriate.

  3. Assess “reasonableness” Consider: complexity, urgency (e.g., inquest or imminent hearing), time spent, seniority/specialization, locality rates, and the deliverables actually produced before dismissal.

  4. Discuss a goodwill adjustment Even if non-refundable, some counsel will credit part of the acceptance fee to future services or offer a partial refund in goodwill—especially where the case ended unusually fast at the prosecutor level.

  5. Fee dispute options

    • Direct demand: Write a polite but firm letter requesting accounting and any justified refund of unearned portions.
    • Mediation with the IBP: The Integrated Bar offers fee dispute mediation/conciliation.
    • Civil action: For contested amounts, a claim for sum of money or unjust enrichment may be pursued.
    • Administrative complaint: Where there’s gross overcharging, neglect, or misconduct.

Practical guidance for lawyers

  • Use clear, written engagement terms: define the acceptance fee, what it covers (conflict checks, strategy, first pleading, initial hearings), and state that it is earned upon engagement and non-refundable, subject to law and reasonableness.
  • Separate the client’s expense advances in a trust account; provide timely accountings; refund any unused amounts.
  • If the case ends quickly (e.g., dismissal at preliminary investigation), consider a fair adjustment to preserve client trust and avoid disputes.
  • Avoid unconscionable fees; document the work performed.

Typical outcomes in real-world scenarios

  • Complaint dismissed at preliminary investigation after one substantial submission and conferences: Acceptance fee generally kept; unused expenses returned; some lawyers may voluntarily rebate a portion.
  • Case dismissed immediately upon filing due to complainant’s non-appearance or a fatal defect discovered on Day 1 with minimal lawyer work: Partial refund may be proper under quantum meruit, depending on the agreement and actual work done.
  • Dismissal for lack of probable cause after extensive briefing and hearings: Acceptance fee kept; per-task/appearance fees earned; costs accounted; no refund absent a special clause or misconduct.
  • Lawyer abandons the case: Client may seek refund (in whole or part), damages, and pursue disciplinary remedies.

Bottom line

  • A dismissal for lack of probable cause does not automatically entitle the client to an acceptance-fee refund.
  • What controls are: the written fee agreement, the reasonableness of the fee in light of services actually rendered, and the lawyer’s ethical duties to account and refund unused expenses (and any unearned portion, where appropriate, under quantum meruit).
  • When in doubt, request a full accounting and explore amicable resolution first; formal remedies are available if needed.

This article provides general information on Philippine practice. For specific matters, consult counsel who can review your engagement agreement and case record.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.