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Delta Components, Inc. and Jun Reyes, a rank-and-file employee, were represented by Atty. Malonzo in a labor standards case for illegal dismissal. After mediation, the parties signed a compromise agreement that provides: 'Delta Components, Inc. shall pay Atty. Malonzo the sum of PHP 66,000 as attorney's fees for professional services rendered in connection with the above complaint.' Jun Reyes had previously executed a Special Power of Attorney authorizing Atty. Malonzo to settle the case and to collect attorney's fees on her behalf. (a) Identify the controlling doctrine on whether a party to a labor dispute may require the other party to pay attorney's fees in connection with representation and settlement; (b) Distinguish whether such fees may be awarded when they arise from a negotiated settlement versus a court-awarded back wages; (c) Apply to the facts: Is Delta Components, Inc. bound to pay the PHP 66,000 to Atty. Malonzo? Why or why not?

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Clara

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