Litigation 2026

PHILIPPINES Law and Practice Contributed by: Leland R Villadolid J, Gilberto D Gallos, Antonio Jose Gerardo T Paz and Leo Frederick Z Cruz, Angara Abello Concepcion Regala & Cruz (ACCRALAW)

2. Litigation Funding 2.1 Third-Party Litigation Funding

• the Energy Regulatory Board. 1.3 Court Filings and Proceedings

In general, the proceedings of every court are open to the public, and court records are deemed public records available for inspection by any interested per- son. However, the court may, in the interest of decen- cy or morality, exclude access to certain proceedings and records from the public. In practice, courts or court personnel usually resist attempts by non-parties to access records without the consent of a party to the case, citing concerns about potential violations of the Data Privacy Act. Further, certain judicial proceedings and records are deemed private and confidential by law, and may only be made public when “necessary” and with the consent of the judge, such as cases falling under the jurisdiction of Family Courts. Even in the absence of specific legislation, certain judicial proceedings or information, such as trade or business secrets, may be kept confidential. In certain instances, the court may, upon motion, exclude the public from the hearings and conceal from the records the identity of the parties in criminal cases, such as in rape cases. 1.4 Legal Representation in Court Only members of the Philippine Bar who are in good and regular standing are allowed to engage in the practice of law in the Philippines. An applicant for admission to the Bar must be: • a citizen and resident of the Philippines; • at least 21 years of age; and • of good moral character. A lawyer who is serving in the government cannot practise law privately, unless otherwise authorised by the Constitution, the law or applicable Civil Service rules and regulations. Foreign lawyers cannot directly or indirectly practise law in the Philippines.

Currently, there is no law or rule specifically dealing with third-party litigation funding in the Philippines. As long as cases are brought under the name of the real parties-in-interest and the requisite filing and docket fees are paid, courts do not enquire into a party’s source of funding for litigation. However, the Rules of Court state that a lawyer cannot accept “compensation in connection with his client’s business except from (his client) or with his knowl- edge and approval”. The language of the provision is ambiguous in respect of its applicability to third-party litigation funding. In any case, it is clear that there is no restriction regarding an agreement or arrangement where a third party will pay for the legal fees and costs incurred by a party to litigation. 2.2 Third-Party Funding: Lawsuits Please see 2.1 Third-Party Litigation Funding . 2.3 Third-Party Funding for Plaintiff and Defendant Please see 2.1 Third-Party Litigation Funding . 2.4 Minimum and Maximum Amounts of Third-Party Funding Please see 2.1 Third-Party Litigation Funding . 2.5 Types of Costs Considered Under Third- Party Funding Please see 2.1 Third-Party Litigation Funding . 2.6 Contingency Fees Contingency fees are a fairly common legal fee arrangement in the Philippines. There is no law spe- cifically governing this agreement, other than the gen- eral law on contracts. In general, under this arrangement, the payment of the legal fees of a lawyer is based either entirely or partial- ly on the “successful” prosecution or defence of the client’s case. The client may pay a minimal monthly retainer fee or pay for the costs of litigation while the case is pending, and the majority or the entire legal

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