CHAPTER IV.

THE LAWYER AND THE CLIENT

CANON 14 - A LAWYER SHALL NOT REFUSE HIS SERVICES TO THE NEEDY.

Rule 14.01 - A lawyer shall not decline to represent a person solely on account of the latter's race, sex.
creed or status of life, or because of his own opinion regarding the guilt of said person.

Not bound to accept all cases; Restrictions

How to deal with guilty clients

Applicable only in criminal cases, not civil cases

Rule 14.02 - A lawyer shall not decline, except for serious and sufficient cause, an appointment as
counsel de officio or as amicus curiae, or a request from the Integrated Bar of the Philippines or
any of its chapters for rendition of free legal aid.

Definitions: Counsel de oficio, Amicus Curiae

Rule 14.03 - A lawyer may not refuse to accept representation of an indigent client unless:

(a) he is not in a position to carry out the work effectively or competently;

(b) he labors under a conflict of interest between him and the prospective client or between a present
client and the prospective client.

Rule 14.04 - A lawyer who accepts the cause of a person unable to pay his professional fees shall
observe the same standard of conduct governing his relations with paying clients.

CANON 15 - A LAWYER SHALL OBSERVE CANDOR, FAIRNESS AND LOYALTY IN ALL HIS DEALINGS AND
TRANSACTIONS WITH HIS CLIENTS.

Rule 15.01. - A lawyer, in conferring with a prospective client, shall ascertain as soon as practicable
 whether the matter would involve a conflict with another client or his own interest, and if so,
shall forthwith inform the prospective client.

MEJIA V. REYES

Lawyers are prohibited from representing conflicting interests in a case as this would
constitute as malpractice.

Kinds of Conflict of Interest:

Concurrent (Multiple) Representation

Generally occurs when a lawyer represents clients whose objectives are adverse to each
other, no matter how slight or remote such adverse interest may be.

Sequential (Successive)Representation

Generally occurs when a law firm takes a present client who has an interest adverse to
the interest of a former client of the same law firm.

Rule 15.02.- A lawyer shall be bound by the rule on privilege communication in respect of matters
disclosed to him by a prospective client.

Relate to: Canon 21: even after termination of the relationship.

Rule 21.01: Exceptions:

(a) When authorized by the client after acquainting him of the consequences of the disclosure;

(b) When required by law;

(c) When necessary to collect his fees or to defend himself, his employees or associates or by judicial action.

Requisites of privileged communication:

Existence of an attorney-client relationship or a kind of consultancy relationship with a

prospective client;
 Communication must be made to the lawyer in the course of the lawyers professional
employment; and

The communication must be intended to be confidential.

Rule 15.03. - A lawyer shall not represent conflicting interests except by written consent of all
concerned given after a full disclosure of the facts.

SIBULO v. CABRERA, AC No. 4218, 7/20/2000

Respondent was bound to faithfully represent his client in all aspects of subject civil case. When
he agreed to represent the defendant and later on, also the plaintiff in the same case, he could no longer
serve either of his said clients faithfully, as his duty to the plaintiff did necessarily conflict with
his duty to the defendant. The relation of attorney and client is based on trust, so that double dealing
which could sometimes lead to treachery, should be avoided.

SAMALA v. VALENCIA

The stern rule against representation of conflicting interests is founded on principles of

public policy and good taste. It springs from the attorney's duty to represent his client with undivided
fidelity and to maintain inviolate the client's confidence as well as from the injunction forbidding the
examination of an attorney as to any of the privileged communications of his client.

CASTRO-JUSTO v. GALING

The prohibition against representing conflicting interest is founded on principles of public

policy and good taste. In the course of the lawyer-client relationship, the lawyer learns of the facts
connected with the clients case, including the weak and strong points of the case. The nature of
the relationship is, therefore, one of trust and confidence of the highest degree.
 HOCORMA FOUNDATION, INC. v. FUNK

An attorney may not, without being guilty of professional misconduct, act as counsel for a
person whose interest conflicts with that of his present or former client. This rule is so absolute that
good faith and honest intention on the erring lawyers part does not make it inoperative. The
reason for this is that a lawyer acquires knowledge of his former clients doings, whether documented or
not, that he would ordinarily not have acquired were it not for the trust and confidence that his client
placed on him in the light of their relationship.

Rule 15.04. - A lawyer may, with the written consent of all concerned, act as mediator, conciliator or
arbitrator in settling disputes.

Rule 15.05. - A lawyer when advising his client, shall give a candid and honest opinion on the merits
and probable results of the client's case, neither overstating nor understating the prospects of
the case.

Rule 15.06. - A lawyer shall not state or imply that he is able to influence any public official, tribunal or
legislative body.

Rule 15.07. - A lawyer shall impress upon his client compliance with the laws and the principles of
fairness.

RURAL BANK OF CALAPE, INC. v. FLORIDO

A lawyers duty is not to his client but to the administration of justice. To that end, his
clients success is wholly subordinate. His conduct ought to and must always be scrupulously
observant of the law and ethics. Any means, not honorable, fair and honest which is resorted to by the
lawyer, even in the pursuit of his devotion to his clients cause, is condemnable and unethical.

Rule 15.08. - A lawyer who is engaged in another profession or occupation concurrently with the
practice of law shall make clear to his client whether he is acting as a lawyer or in another
capacity.

CANON 16 - A LAWYER SHALL HOLD IN TRUST ALL MONEYS AND PROPERTIES OF HIS CLIENT THAT
MAY COME INTO HIS PROFESSION.

Rule 16.01 16.04

-To account.
-Keep separate and apart.
-To deliver, subject to lien.
-Rule on borrowing/lending money.

Definition:

Retaining Lien

Attorneys lien over the property of the client held by the lawyer to apply to his claims upon due
notice to the client.

Charging Lien

a lien upon all judgments for the payment of money and executions issued in pursuance of such
judgments; a lawyer causes a statement of his claim of such lien to be entered upon the records of
the court that rendered judgment or issuing execution with written notice to the client and
adverse party (Rule 138, Sec. 37, Rules of Court).

ARROYO-POSIDIO v. VITAN, AC No. 6051, 4/2/2007

The lawyers failure to return the money of his client upon demand gave rise to a
presumption that he has misappropriated said money in violation of the trust reposed on him.
The conversion by a lawyer [of] funds entrusted to him by his client is a gross violation of professional
ethics and a betrayal of public confidence in the legal profession.
 PARIAS v. PAGUINTO

Acceptance of money from a client establishes an attorney-client relationship and gives rise to
the duty of fidelity to the clients cause. Money entrusted to a lawyer for a specific purpose, such as
for filing fee, but not used for failure to file the case must immediately be returned to the client
on demand. Respondent returned the money only after complainant filed an administrative case for
disbarment.

REYES v. MAGLAYA, AC No. 2125, 4/3/1995

By the unexplained failure to return the amount of P1,500.00 demanded by complainant-client

receipt of which respondent had acknowledged and which he had agreed to return at the earliest
possible opportunity, respondent failed to live up to his duties as a lawyer. His inexcusable act of
withholding money belonging to his client warrants the imposition of disciplinary sanction.

MENESES v. MACALINO

When a lawyer receives money from the client for a particular purpose, the lawyer is bound to
render an accounting to the client showing that the money was spent for the intended purpose.
Consequently, if the lawyer does not use the money for the intended purpose, the lawyer must
immediately return the money to the client.

BARCENAS v. ALVERO

Jurisprudence dictates that a lawyer who obtains possession of the funds and properties of his
client in the course of his professional employment shall deliver the same to his client (a) when they
become due, or (b) upon demand. In the instant case, respondent failed to account for and return the
P300,000.00 despite complainants repeated demands.

ARELLANO UNIVERSITY, INC. v. MIJARES III

 Every lawyer has the responsibility to protect and advance the interests of his client such that
he must promptly account for whatever money or property his client may have entrusted to him. As a
mere trustee of said money or property, he must hold them separate from that of his own and
make sure that they are used for their intended purpose A lawyers conversion of funds entrusted to
him is a gross violation of professional ethics.

IGUAL v. JAVIER

Respondent claims the money given him is an acceptance fee. But, as known by respondent,
ambiguities in contracts prepared by him, are construed against him, and thus, if the receipt does not
specify that it is such an acceptance fee, it cannot be treated as such. When it comes to fees, the amount
and purpose must be clearly stated. Otherwise said contracts are interpreted against the lawyer
who is presumed to know better on such legal matters as against his client, as in this case, who is
not a lawyer.

CANON 17 - A LAWYER OWES FIDELITY TO THE CAUSE OF HIS CLIENT AND HE SHALL BE MINDFUL OF
THE TRUST AND CONFIDENCE REPOSED IN HIM.

TAHAW v. VITAN, AC No. 6441, 10/21/2004

When a lawyer takes a clients cause, he thereby covenants that he will exert all effort for
its prosecution until its final conclusion. Thus, when respondents services were engaged by
complainant, the former took it upon himself to perform the legal services required of him. In the
instant case, however, respondent seemed to have forgotten his sworn duty after he received the money
from his client.

CANON 18 - A LAWYER SHALL SERVE HIS CLIENT WITH COMPETENCE AND DILIGENCE.

Rules 18.01 18.04

-Qualified or not? Collaborating Counsel?

-With adequate preparation.
 -Effect of lawyers negligence.
-Provide necessary information to client.

BARBUCO v. BELTRAN

Failure to file brief within the reglementary period constitutes inexcusable negligence.
That Respondent was suffered physical injuries from a vehicular accident cannot serve to excuse him
from filing his pleadings on time considering that he was a member of a law firm composed of not just
one lawyer. He could have asked any of his partners in the law office to file the brief or, at least, to seek
extension of time to file such pleading.

CUIZON v. MACALINO

It is axiomatic that no lawyer is obliged to act either as adviser or advocate for every person
who may wish to become his client. However, once he agrees to take up the cause of a client, the
lawyer owes fidelity to such cause and must always be mindful of the trust and confidence
reposed in him. He must serve his client with competence and diligence, and champion the latters
cause with whole-hearted fidelity.

VILLARIASA-RIESENBECK v. ABARRIENTOS

A lawyer must not keep a client in the dark as to the status of and developments in the
clients case. The lawyer is obliged to respond within a reasonable time to a clients request for
information. A client is entitled to the fullest disclosure of the mode or manner by which that
clients interest is defended or why certain steps are taken or omitted. A lawyer who repeatedly
fails to answer the inquiries or communications of a client violates the rules of professional courtesy and
neglects the clients interests.

CANON 19 - A LAWYER SHALL REPRESENT HIS CLIENT WITH ZEAL WITHIN THE BOUNDS OF THE LAW.

Rule 19.01 19.03

-Employ only fair and honest means.
-Lawyers obligation if a client perpetuated a fraud.
-Do no allow client to dictate the procedure in handling the case.

PENA v. APARICIO

While a lawyer shall represent his client with zeal within the bounds of law, his duty is not to
his client but to the administration of justice his clients success is wholly subordinate and his conduct
must always be scrupulously observant of law and ethics. The writing of demand letters is standard
practice and tradition in this jurisdiction, but, the letter in this case contains more than just a simple
demand to pay containing as it did a threat to file retaliatory charges against Complainant which have
nothing to do with his clients claim.

MILLARE v. MONTERO

Under Canon 19 of the Code of Professional Responsibility, a lawyer is required to represent his
client "within the bounds of the law." The Code enjoins a lawyer to employ only fair and honest means to
attain the lawful objectives of his client (Rule 19.01) and warns him not to allow his client to dictate the
procedure in handling the case (Rule 19.03). In short, a lawyer is not a gun for hire.

ONG v. UNTO

While a lawyer owes absolute fidelity to the cause of his client, full devotion to his genuine
interest, and warm zeal in the maintenance and defense of his right, as well as the exercise of his utmost
learning and ability, he must do so only within the bounds of the law. He must give a candid and honest
opinion on the merits and probable results of his clients case with the end view of promoting respect for
the law and legal processes, and counsel or maintain such actions or proceedings only as appear to him
to be just, and such defenses only as he believes to be honestly debatable under the law.
 CANON 20 - A LAWYER SHALL CHARGE ONLY FAIR AND REASONABLE FEES.

Rule 20.01 -20.04

-Factors in determining fees:

- time/extent of service, novelty/difficulty, importance, skill demanded, probability of
losing employment, customary charges, amount involved, certainty of compensation,
character of employment, professional standing of lawyer.

-Referral of cases.
-Acceptance of fees other than from client.
-Avoid controversies concerning compensation.

Two concepts of Attorneys Fees

Ordinary

- The reasonable compensation paid to a lawyer for the legal services he has rendered to a
client. The basis of this compensation is the fact of employment by the client.

2. Extraordinary

- The indemnity for damages ordered by the court to be paid by the losing party to the
prevailing party in litigation. This is payable to the client and not to the lawyer unless
otherwise agreed.

Form of employment; commencement of employment

Oral, written or express.

Meeting of the minds
 Kinds of payment which may be stipulated:

Fixed or absolute fee

Contingent fee
Fixed fee payable per appearance
Fixed fee computed by the number of hours spent
Fixed fee based on piece work

Retainer- Fee or Extent of Service.

Kinds of Retainer Agreements

General Retainer or Retaining Fee

- Fee paid to secure a lawyers future services as general counsel for any ordinary legal business.

Special Retainer

- Fee for a specific case or service rendered for a client.

Attorneys Fees based on Quantum Meruit

as much as he has deserved

Authorized when:
There is no express contract for payment of attorneys fees agreed upon between
the lawyer and the client;
 When although there is a formal contact, the fees stipulated are found to be
unconscionable;

When contact for attorneys fees is void due to purely formal matters or defects of
execution;

When for justifiable reasons the counsel is unable to finish the case;

When contract is disregarded as though there was no express stipulation.

Definition:

Champertous Contracts

Lawyer stipulates with his client that in the prosecution of the case he will bear all the
expenses for the recovery of the things or property being claimed by the client and the
latter agrees to pay the former a portion of the thing or property recovered as
compensation.

Contingent Fee

Payment to an attorney for legal services that depends, or is contingent, upon there
being some recovery or award in the case. The payment is then a percentage of the amount
recovered.

CANON 21 - A LAWYER SHALL PRESERVE THE CONFIDENCE AND SECRETS OF HIS CLIENT EVEN AFTER
THE ATTORNEY-CLIENT RELATION IS TERMINATED.

Rule 21.01 -21.07

Do not reveal confidences or secrets, exceptions.

Do not use information acquired.

Do not give out information w/o clients written consent.

Application of the rules to law firms.

 Adopt appropriate measures.

Avoid indiscreet conversations.

Do not reveal consultation done.

SUNTAY v. SUNTAY, AC No. 1890, 8/7/2002

A lawyer shall preserve the confidences and secrets of his clients even after termination of the
attorney-client relation.

[T]he question is not necessarily one of the rights of the parties, but as to whether the attorney
has adhered to proper professional standard. With these thoughts in mind, it behooves attorneys,
like Caesars wife, not only to keep inviolate the clients confidence, but also to avoid the
appearance of treachery and double-dealing. Only thus can litigants be encouraged to entrust
their secrets to their attorneys which is of paramount importance in the administration of justice.

CANON 22 - A LAWYER SHALL WITHDRAW HIS SERVICES ONLY FOR GOOD CAUSE AND UPON NOTICE
APPROPRIATE IN THE CIRCUMSTANCES.

Rules 22.01-22.02

-When may a lawyer withdraw his services:

Client pursues illegal or immoral course of conduct

Clients insistence of pursuing a conduct violative of the canons

Inability to work with co-counsel

Due to mental or physical condition

Client deliberately fails to pay fees

Lawyer is elected or appointed to public office

Other similar cases

-Obligation of the lawyer after withdrawal or discharge of services

 Appearance- act of submitting or presenting on presenting oneself to the court, either as
plaintiff or defendant, personally or through counsel, and seeking general reliefs or special reliefs from
the court.

Jurisdiction is acquired.

Civil cases- plaintiff: filing of complaint

- defendant : filing of answer

: voluntary appearance

Kinds of Appearance:

General Appearance- the kind where the party comes to court either as plaintiff or
defendant and seeks the general reliefs from the court for the satisfaction of his claims and
counterclaims respectively.

Special Appearance the kind where a defendant appears in court solely for the purpose
of objecting to the jurisdiction of the court over his person and seeks the dismissal of the case.
If defendant would seek other reliefs then it ceases to be a special appearance even if it is
denominated as such.

Withdrawal of Counsel

Written consent of the client or by permission of the court after due notice and hearing.
The name of the new attorney shall be recorded in the case.
Substitution of Counsel

With written application;

 Written consent of the client;
Written consent of the attorney to be substituted;
If the consent of the attorney cannot be obtained, there must be at least a proof of notice
that the motion for substitution has been served upon him in the manner prescribed in the
rules.

Retaining Lien

A passive lien and may not be actively enforced. It amounts to a mere right to retain the
papers as against the client until the lawyer is fully paid.

Charging Lien

The equitable right of the attorney to have the fees due him for services in a particular
suit secured by the judgment or recovery in such suit. The object of this lien is to protect
the claim on the fruits of the lawyers labor.