WHAT IS BARRATRY AND AMBULANCE CHASING
Rule 1.03. A lawyer shall not, for any corrupt motive or
interest, encourage any suit or delay any mans cause.
BARRATRY OR MAINTENANCE
Inciting or stirring up quarrels, litigation or groundless
lawsuits
(1) Volunteering advice to bring lawsuits, except where
ties of blood, relationship or trust make it a duty to do so
(2) Hunting up defects in titles or other causes of action
in order to be employed to bring suit or breed litigation
AMBULANCE CHASING
Accident-site solicitation of any kind of legal business by
laymen employed by an attorney for the purpose or by
the attorney himself.
Supports perjury, the defrauding of innocent persons by
judgments, upon manufactured causes of actions and
the defrauding of injured persons having proper causes
of action but ignorant of legal rights and court
procedure.
A lawyer may be disciplined in his professional and
private capacity. The filing of multiple complaints reflects
on his fitness to be a member of the legal profession. His
conduct of vindictiveness a decidedly undesirable trait
especially when one resorts to using the court not to
secure justice but merely to exact revenge warrants his
dismissal from the judiciary. [Saburnido v. Madrono,
(2001)]
DUTY OF LAWYER IF HE REFUSES TO ACCEPT
CASE OF CLIENT
Rule 2.01. A lawyer shall not reject, except for valid
reasons, the cause of the defenseless or the oppressed.
The legal profession is a burdened privilege not many
are qualified to undertake. A lawyer owes fidelity to the
duty required of the legal profession. If there is no
incompatibility between the defense of the client and the
position of the lawyer, he should not decline his
appointment as counsel de oficio (Ledesma v. Climaco
(1974)).
Free access to the courts and quasi-judicial bodies and
adequate legal assistance shall not be denied to any
person by reason of poverty. (Sec. 11, Art. III, 1987
Consti).
Legal aid is not a matter of charity. It is a means for the
correction of social imbalance that may and often do
lead to injustice, for which reason it is a public
responsibility of the bar (IBP Handbook, Guidelines
Governing the Establishment and Operation of the Legal
Aid Office).
Rule 2.02. In such cases, even if the lawyer does not
accept a case, he shall not refuse to render legal advice
to the person concerned if only to the extent necessary
to safeguard the latters rights.
Advice may be on what preliminary steps to take until
the client has secured the services of counsel. But he
shall refrain from giving legal advice if the reason for not
accepting the case is that there involves a conflict of
interest between him and a prospective client or
between a present client and a prospective client.
(Agpalo (2004))
ALLOWED TYPES OF ADVERTISEMENT
The following are considered allowable advertisement:
(1) Ordinary simple professional card;
(2) Publication in reputable law list with brief biographical
and other informative data which may include:
(a) Name;
(b) Associates;
(c) Address;
(d) Phone numbers;
(e) Branches of law practiced;
(f) Birthday;
(g) Day admitted to the bar;
(h) Schools and dates attended;
(i) Degrees and distinctions;
(j) Public or quasi-public offices;
(k) Posts of honor;
(l) Legal authorships;
(m) Teaching positions;
(n) Associations;
(o) Legal fraternities and societie
(p) References and regularly represented clients
must be published for that purpose [Ulep v. The
Legal Clinic, Inc. (1993)];
(3) Publication of simple announcement of opening of
law firm, change of firm;
(4) Listing in telephone directory but not under
designation of special branch of law;
(5) If acting as an associate (specializing in a branch of
law), may publish a brief and dignified announcement to
lawyers (law list, law journal);
(6) If in media, those acts incidental to his practice and
not of his own initiative;
(7) Writing legal articles;
(8) Activity of an association for the purpose of legal
representation.
The law list must be a reputable law list published
primarily for that purpose; it cannot be a mere
supplemental feature of a paper, magazine, trade journal
or periodical which is published primarily for other
purposes.
CHOICE OF FIRM NAME
Rule 3.02. In the choice of a firm name, no false,
misleading or assumed name shall be used. The
continued use of the name of a deceased partner is
permissible provided that the firm indicates in all its
communications that said partner is deceased.
The continued use of the name of a deceased partner is
permissible provided that the firm indicates in all its
communications that said partner is deceased [Agpalo
(2004)].
Ratio: All partners by their joint efforts over a period of
years contributed to the goodwill attached to the firm
name, and the removal of the deceased partners name
disturbs the client goodwill built through the years.
Firms may not use misleading names showing
association with other firms to purport legal services of
highest quality and ties with multinational business
enterprise especially when such firm attached as an
associate cannot legally practice law in the Philippines
[Dacanay v. Baker and McKenzie (1985)].
CONTINUING LEGAL EDUCATION PROGRAM
Canon 5. A lawyer shall keep abreast of legal
developments, participate in continuing legal education
programs, support efforts to achieve high standards in
law schools as well as in the practical training of law
students and assist in disseminating information
regarding the law and jurisprudence.
MEMBERSHIP DUES
RoC, Rule 139-A, Sec. 9. Every member of the IBP shall
pay such annual dues as the Board of Governors shall
determine with the approval of the Supreme Court.
A fixed sum equivalent to ten percent of the collection
from each Chapter shall be set aside as a Welfare Fund
for disabled members of the Chapter and the
compulsory heirs of deceased members thereof.
RoC, Rule 139-A, Sec. 10. Default in the payment of
annual dues:
(1) For six months shall warrant suspension of
membership in the IBP; and
(2) For one year shall be a ground for the removal of
the name of the delinquent member from the roll of
attorneys.
RULE 9.01
Rule 9.01. A lawyer shall not delegate to any unqualified
person the performance of any task which by law may
only be performed by a member of the bar in good
standing.
Moreover, an attorney-client relationship is a strictly
personal one.
ACTS THAT MAY ONLY BE DONE BY A LAWYER
(1) The computation and determination of the period
within which to appeal an adverse judgment [Eco v.
Rodriguez (1960)];
(2) The examination of witnesses or the presentation
of evidence [Robinson v. Villafuerte (1911)].
MAY BE DELEGATED TO NON-LAWYERS:
(1) The examination of case law;
(2) Finding and interviewing witnesses;
(3) Examining court records;
(4) Delivering papers and similar matters.
RULE 9.02 DIVISION OF FEES
Rule 9.02. A lawyer shall not divide or stipulate to divide
a fee for legal services with persons not licensed to
practice law, except:
(a) Where there is a pre-existing agreement with a
partner or associate that, upon the latters death,
money shall be paid over a reasonable period of time
to his estate or to persons specified in the agreement;
or
(b) Where a lawyer undertakes to complete
unfinished legal business of a deceased lawyer; or
(c) Where a lawyer or law firm includes non- lawyer
employees in a retirement plan, even if the plan is
based in whole or in part, on a profitable sharing
arrangement.
Ratio: Allowing non-lawyers to get attorneys fees would
confuse the public as to whom they should consult. It
would leave the bar in a chaotic condition because non-
lawyers are also not subject to disciplinary action.
An agreement between a union lawyer and a layman
president of the union to divide equally the attorneys
fees that may be awarded in a labor case violates this
rule, and is illegal and immoral [Amalgamated Laborers
Assn. v. CIR (1968)].
A donation by a lawyer to a labor union of part of his
attorneys fees taken from the proceeds of a judgment
secured by him for the labor union is improper because it
amounts to a rebate or commission [Halili v. CIR
(1965)].
A contract between a lawyer and a layman granting the
latter a percentage of the fees collected from clients
secured by the layman and enjoining the lawyer not to
deal directly with said clients is null and void, and the
lawyer may be disciplined for unethical conduct [Tan Tek
Beng v. David (1983)].
While non-lawyers may appear before the NLRC or any
labor arbiter, they are still not entitled to receive
professional fees.
The statutory rule that an attorney shall be entitled to
have and recover from his client a reasonable
compensation or remuneration for the services they
have rendered presupposes the existence of an
attorney-client relationship.
Such a relationship cannot exist when the clients
representative
CONCEPT OF FORUM SHOPPING, LIS PENDENCIA
AND RES JUDICATA
Rule 12.02. A lawyer shall not file multiple actions arising
from the same cause.
Ratio: There is an affirmative duty of a lawyer to check
against useless litigations. His signature in every
pleading constitutes a certificate by him that to the best
of his knowledge there is a good ground to support it and
that it is not to interpose for delay. The willful violation of
this rule may subject him to appropriate disciplinary
action or render him liable for the costs of litigation
[Agpalo].
CIRCUMSTANCE OF FORUM SHOPPING
(1) When, as a result or in anticipation of an adverse
decision in one forum, a party seeks a favorable
opinion in another forum through means other than
appeal or certiorari by raising identical causes of
action, subject matter and issues.
(2) The institution of involving the same parties for the
same cause of action, either simultaneously or
successively, on the supposition that one or the other
court would come out with a favorable disposition
[Araneta v. Araneta (2013)].
An indicium of the presence of, or the test for
determining whether a litigant violated the rule against,
forum shopping is where the elements of litis pendentia
are present or where a final judgment in one case will
amount to res judicata in the other case.
REQUISITES OF LITIS PENDENTIA
(1) Identity of parties, or at least such parties as
represent the same interests in both actions;
(2) Identity of rights asserted and relief prayed for, the
relief being founded on the same facts; and
(3) Identity of the two preceding particulars is such
that any judgment rendered in the pending case,
regardless of which party is successful, would
amount to res judicata in the other [HSBC v. Catalan
(2004)].
RES JUDICATA REQUIRES THAT:
(1) There be a decision on the merits;
(2) It be decided by a court of competent jurisdiction;
(3) The decision is final; and
(4) The two actions involved identical parties, subject
matter, and causes of action.
RIGHTS OF WITNESSES
[Rules of Court, Rule 132, Sec. 3.]
(1) To be protected from irrelevant, improper or
insulting questions and from a harsh or insulting
demeanor;
(2) Not to be detained longer than the interests of
justice require
(3) Not to be examined except as to matters pertinent
to the issues before the court;
(4) Not to give an answer which will tend to subject
him to a penalty for an offense unless otherwise
provided by law;
(5) Not to give an answer which will tend to degrade
the witness reputation, but a witness must answer
the fact of any previous final conviction for a criminal
offense.
PD 1829 PENALIZES THE FOLLOWING:
(1) Threatening directly or indirectly another with the
infliction of any wrong upon his person, honor or
property or that of any immediate member or
members of his family in order to prevent such
person from appearing in the investigation of, or
official proceedings in, criminal cases, or
imposing a condition, whether lawful or unlawful,
in order to prevent a person from appearing in
the investigation of or in official proceedings in,
criminal cases;
(2) Giving of false or fabricated information to
mislead or prevent the law
enforcement agencies from apprehending the
offender or from protecting the life or property of
the victim; or fabricating information from the
data gathered in confidence by investigating
authorities for purposes of background
information and not for publication and
publishing or disseminating the same to mislead
the investigator or to the court.
RULE 12.08
Rule 12.08. A lawyer shall avoid testifying in behalf of his
client, except:
(a) On formal matters, such as the mailing,
authentication or custody of an instrument, and the
like; or
(b) On substantial matters, in cases where his
testimony is essential to the ends of justice, in which
event he must, during his testimony, entrust the trial
of the case to another counsel.
Ratio: The underlying reason for the impropriety of a
lawyer acting in such dual capacity lies in the difference
between the function of a witness and that of an
advocate. The function of a witness is to tell the facts as
he recalls then in answer to questions. The function of
an advocate is that of a partisan.
The lawyer will find it hard to disassociate his relation to
his client as an attorney and his relation to the party as a
witness [Agpalo].
When a lawyer is a witness for his client, except as to
merely formal matters, such as the attestation or custody
of an instrument and the like, he should leave the trial of
the case to other counsel. Except when essential to the
ends of justice, a lawyer should avoid testifying in court
in behalf of his client [PNB v. Uy Teng Piao (1932)].
HOW IS ATTY-CLIENT REL ESTABLISHED
The attorney-client relationship is:
1. Strictly personal;
2. Highly confidential;
3. Fiduciary.
A written contract, although the best evidence to show
the presence of an attorney-client relationship is not
essential for the employment of an attorney.

RULE 14.01(ESP. OPINION OF GUILT OF LAWYER
TO 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 latters race, sex, creed
or status of life, or because of his own opinion regarding
the guilt of said person.
It is the duty of an attorney, in the defense of a person
accused of a crime, by all fair and honorable means,
regardless of his personal opinion as to the guilt of the
accused, to present every defense that the law permits,
to the end that no person may be deprived of life or
liberty, but by due process of law (Sec. 20(i), Rule 138).
Ratio:It is a declared policy of the State to value the
dignity of every human person and guarantee the rights
of every individual, particularly those who cannot afford
the services of counsel (RA 9999 (Free Legal Assistance
Act of 2010)).
RA 9999 provides incentives for free legal service. Thus,
a lawyer or professional partnerships rendering actual
free legal services shall be entitled to an allowable
deduction from the gross income,
(1) the amount that could have been collected for the
actual free legal services rendered OR
(2) up to 10% of the gross income derived from the
actual performance of legal profession, whichever is
lower.
This is different from the 60-hour mandatory legal aid
services under Bar Matter 2012.
INDIGENT:
(1) A person who has no visible means of income or
whose income is insufficient for the subsistence of his
family, to be determined by the fiscal or judge, taking
into account the members of his family dependent
upon him for subsistence (Sec. 2, RA 6033).
(2) A person who has no visible means of support or
whose income does not exceed P300.00 per month
or whose income even in excess of P300.00 per
month is insufficient for the subsistence of his family
(Sec. 2, RA 6035).
LAWS ON INDIGENTS OR LOW INCOME LITIGANTS:
(1) All courts shall give preference to the hearing
and/or disposition of criminal cases where an
indigent is involved either as the offended party
or accused (Sec. 1, RA 6033).
(2) Any indigent litigant may, upon motion, ask the
Court for adequate travel allowance to enable
him and his indigent witnesses to attendant the
hearing of a criminal case commenced by his
complaint or filed against him. The allowance
shall cover actual transportation expenses by the
cheapest means from his place of residence to
the court and back. When the hearing of the case
requires the presence of the indigent litigant
and/or his indigent witnesses in court the whole
day or for two or more consecutive days,
allowances may, in the discretion of the Court,
also cover reasonable expenses for meal and
lodging (Sec. 1, RA 6034).
(3) A stenographer who has attended a hearing
before an investigating fiscal or trial judge or
hearing commissioner of any quasi-judicial body
or administrative tribunal and has officially taken
notes of the proceeding thereof shall, upon
written request of an indigent or low income
litigant, his counsel or duly authorized
representative in the case concerned, give within
a reasonable period to be determined by the
fiscal, judge, commissioner or tribunal hearing
the case, a free certified transcript of notes take
by him on the case (Section 1, RA 6035).
SERVICES OF COUNSEL DE OFFICIO (14.02)
Rule 14.02. A lawyer shall not decline, except for serious
and sufficient cause, an appointment as counsel de
oficio 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.
RoC provides:
(1) It is the duty of an attorney never to reject, for any
consideration personal to himself, the cause of the
defenseless or oppressed (Sec. 20(h), Rule 138);
(2) A court may assign an attorney to render
professional aid free of charge to any party in a case,
if upon investigation it appears that the party is
destitute and unable to employ an attorney, and that
the services of counsel are necessary to secure the
ends of justice and to protect the rights of the party. It
shall be the duty of the attorney so assigned to
render the required service, unless he is excused
therefrom by the court for sufficient cause shown
(Sec. 31, Rule 138).
Counsel de officio - one appointed or assigned by the
court.
Counsel de parte- one employed or retained by the party
himself.
WHO MAY BE COUNSEL DE OFFICIO, ... AND
AMICUS CURIAE. ARE THEY ENTITLED TO FEES
WHO MAY BE APPOINTED AS COUNSEL DE OFICIO:
(1) A member of the bar in good standing who, by
reason of their experience and ability, can
competently defend the accused;
(2) In localities without lawyers:
 (a) Any person resident of the province and of
good repute for probity and ability (Sec. 7, Rule
116);
(b) A municipal judge or a lawyer employed in any
branch, subdivision or instrumentality of the
government within the province (Sec. 1, PD 543).
CONSIDERATIONS IN THE APPOINTMENT OF A
COUNSEL DE OFICIO:
(1) Gravity of the offense;
(2) Difficulty of the questions that may arise;
(3) Experience and ability of the appointee.
WHENTHE COURT MAY APPOINT A COUNSEL DE
OFICIO (IN CRIMINAL ACTIONS):
(1) Before arraignment, the court shall inform the
accused of his right to counsel and ask him if he
desires to have one. Unless the accused is allowed to
defend himself in person or has employed counsel of
his choice, the court must assign a counsel de officio
to defend him, (Section 6, Rule 116);
(2) It is the duty of the clerk of the trial court, upon
filing of a notice of appeal, to ascertain from the
appellant, if confined in prison, whether he desires
the Regional Trial Court, Court of Appeals or the
Supreme Court to appoint a counsel de officio
(Section 13, Rule 122);
(3) The clerk of the CA shall designate a counsel de
oficio if it appears from the case record that:
(a) the accused is confined in prison,
(b) is without counsel de parte on appeal, or
(c) has signed the notice of appeal himself, the
clerk of Court of Appeals shall designate a
counsel de officio.
An appellant who is not confined in prison may, upon
request, be assigned a counsel de officio within ten days
from receipt of the notice to file brief and he establishes
his right thereto (Section 2, Rule 124).
VALID GROUND OF REFUSAL (14.03)
Rule 14.03. A lawyer may not refuse to accept
representation of an indigent client unless:
(a) He is in no 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.
A lawyer shall not decline an appointment as counsel de
oficio or as amicus curiae, or a request from the IBP or
any of its chapters for rendition of free legal aid except
for serious and sufficient cause.
Reason: One of the burdens of the privilege to practice
law is to render, when so required by the court, free legal
services to an indigent litigant.
Even if the lawyer does not accept a case, he shall not
refuse to render legal advice to the person concerned if
only to the extent necessary to safeguard the latters
rights. (Rule 2.02, Canon 2)
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.
If a lawyer volunteers his services to a client, and
therefore not entitled to attorneys fees, he is still bound
to attend to a clients case with all due diligence and
zeal.(Blanza v. Arcangel (1967)).
CONFIDENTIALITY RULE
Canon 15.A lawyer shall observe candor, fairness and
loyalty in all his dealings and transactions with his
clients.
Purpose: To protect the client from possible breach of
confidence as a result of a consultation with a lawyer
(Hadjula v. Madianda (2007)).
Confidential communication- information transmitted
by voluntary act of disclosure between attorney and
client in confidence and by means which so far as the
client is aware, discloses the information to no third
person other than one reasonably necessary for the
transmission of the information or the accomplishment of
the purpose for which it was given (Mercado v. Vitriolo
(2005)). Confidences of clients
Confidences of Secrets of clients
clients
Refer to information Refer to information gained in
protected by attorney- the profession relationship that
client privilege under the client has requested to be
the Rules of Court held inviolate or the disclosure
(i.e., information of which would be
pertinent to the case embarrassing or would likely
being handled). be detrimental to the client
(i.e., information not exactly
pertinent to the case).
PRIVILEGED COMMUNICATION
Rule 15.02. A lawyer shall be bound by the rule on
privileged communication in respect of matters disclosed
to him by a prospective client
REQUISITES (LRCI)
(1) The person to whom information is given is a
lawyer. However, if a person is pretending to be a
lawyer and client discloses confidential
communications, the attorney-client privilege applies;
(2) There is a legal relationship existing, except in
cases of prospective clients;
(3) Legal advice must be sought from the attorney in
his professional capacity with respect to
communications relating to that purpose. The
 information is not privileged if the advice is not within
lawyers professional capacity;
(4) The client must intend the communication be
confidential.
PERSONS ENTITLED TO PRIVILEGE
(1) The lawyer, client, and third persons who by
reason of their work have acquired information about
the case being handled, including:
(a) Attorneys secretary, stenographer and clerk;
(b) Interpreter, messengers, or agents transmitting
communication;
(c) Accountant, scientist, physician, engineer who
has been hired for effective consultation;
(2) Assignee of the clients interest as far as the
communication affects the realization of the assigned
interest.
SCOPE OF THE PRIVILEGE
(1) Does not cover transactions that occurred beyond
the lawyers employment with the client (Palm v.
Iledan, Jr. (2009)).
(2) Period to be considered is the date when the
privileged communication was made by the client to
the attorney in relation to either a crime committed in
the past or with respect to a crime intended to be
committed in the future. If the crime was committed in
the past, the privilege applies. If it is still to be
committed, the privilege does not apply, because the
communication between a lawyer and his client must
be for a lawful purpose or in furtherance of a lawful
end to be privileged (People v. Sandiganbayan
(1996)).
(3) Limited only to communications which are
legitimately and properly within the scope of a lawful
employment of a lawyer. (Genato v. Silapan (2003)).
(4) Embraces not only oral or written statements but
actions, signs or other means of communications.
An attorney cannot, without the consent of his client, be
examined as to any communication made by the client to
him or his advice given thereon in the course of
professional employment; nor can an attorneys
secretary, stenographer, or clerk be examined, without
the consent of the client and his employer, concerning
any fact the knowledge of which has been acquired in
such capacity (Section 24(b), Rule 130).
General rule: As a matter of public policy, a clients
identity should not be shrouded in mystery. Thus, a
lawyer may not invoke the privilege and refuse to divulge
the name or identity of this client.
Exceptions:
(1) When a lawyer is accused by the client and he
needs to reveal information to defend himself;
(2) When the client discloses the intention to commit
a crime or unlawful act (Aguirre (2006)).
Ratio:
(1) The court has a right to know that the client whose
privileged information is sought to be protected is
flesh and blood.
(2) The privilege begins to exist only after the
attorney-client relationship has been established. The
attorney-client privilege does not attach unless there
is a client.
(3) The privilege generally pertains to the subject
matter of the relationship.
(4) Due process considerations require that the
opposing party should, as a general rule, know his
adversary.
Exceptions to exceptions: Client identity is privileged in
the following instances:
(1) Where a strong probability exists that revealing
the client's name would implicate that client in the
very activity for which he sought the lawyer's advice.
(2) Where disclosure would open the client to civil
liability, his identity is privileged.
(3) Where the government's lawyers have no case
against an attorney's client unless, by revealing the
clients name, the said name would furnish the only
link that would form the chain of testimony necessary
to convict an individual of a crime, the client's name is
privileged.
Information relating to the identity of the client may fall
within the ambit of the privilege when the clients name
itself has an independent significance, such that
disclosure would then reveal client confidences(Regala
v. Sandiganbayan (1996)).
General rule: The protection given to the client is
perpetual and does not cease with the termination of the
litigation, nor is it affected by the clients ceasing to
employ the attorney and retaining another, or by any
other change of relation between them. It even survives
the death of the client (Bun Siong Yao v. Aurelio
(2006)).
Exception: Some privileged communications lose their
privileged character by some supervening act done
pursuant to the purpose of the communication (e.g., a
communication intended by the client to be sent to a
third person through his attorney loses confidential
character once it reached the third party).
EXAMPLES OF PRIVILEGED MATTERS
(1) Work product of lawyer (his effort, research and
thought contained in his file);
(2) Report of a physician, an accountant, an engineer
or a technician, whose services have been secured
by a client as part of his communication to his
attorney or by the attorney to assist him render
effective legal assistance to his client;
(3) Records concerning an accident in which a party
is involved;
(4) Consultation which has to do with the preparation
of a client to take the witness stand.
CONFLICT OF INTEREST (15.01)
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.
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.
There is conflict of interest when a lawyer represents
inconsistent interests of two or more opposing parties.
(Hornilla v. Salunat (2003)).
REQUISITES
(1) There are conflicting duties;
(2) The acceptance of the new relations invites or
actually leads to unfaithfulness or double-dealing to
another client; or
(3) The attorney will be called upon to use against his
first client any knowledge acquired in the previous
employment.
TESTS OF CONFLICT OF INTERESTS
(1) Whether the acceptance of a new relation will
prevent an attorney from the full discharge of his duty
of undivided fidelity and loyalty to his client or invite
suspicion of unfaithfulness or double-dealing in its
performance.
(2) If the acceptance of the new retainer will require
the attorney to perform an act which will injuriously
affect his first client in any matter in which he
represented him and also whether he will be called
upon in his new relation to use against the first client
any knowledge acquired through their connection
(Frias v. Lozada (2005)).
(3) Whether or not in behalf of one client, it is the
lawyers duty to fight for an issue or claim, but it is his
duty to oppose it for the other client. In brief, if he
argues for one client, this argument will be opposed
by him when he argues for the other client.
This rule covers not only cases in which confidential
communications have been confided, but also those
in which no confidence has been bestowed or will be
used.
(4) Whether the acceptance of a new relation will
prevent an attorney from the full discharge of his duty
of undivided fidelity and loyalty to his client or invite
suspicion of unfaithfulness or double-dealing in the
performance thereof (Pacana v. Pascua-Lopez
(2009)).
(5) Whether the lawyer will be asked to use against
his former client any confidential information acquired
through their connection or previous employment
(Palm v. Iledan, Jr. (2009)).
Note: The test to determine whether there is a conflict of
interest in the representation is probability, not certainty
of conflict.
EFFECTS OF CONFLICT OF INTEREST
Representing adverse interest may result in:
(1) Disqualification as counsel in the new case;
(2) If prejudicial to interests of latter client, setting
aside of a judgment;
(3) Administrative and criminal (for betrayal of trust)
liability;
(4) Forfeiture of attorneys fees.
General rule: A lawyer may not represent two opposing
parties at any point in time.
A lawyer need not be the counsel-of-record of either
party. It is enough that the counsel had a hand in the
preparation of the pleading of one party.
Exception: When the parties agree, and for amicable
settlement (Agpalo (2004))
DUTY OF LAWYER CANON 16, 16.01
Canon 16.A lawyer shall hold in trust all moneys and
properties of his client that may come into his
possession.
Lawyers cannot acquire or purchase, even at a public or
judicial auction, either in person or through the mediation
of another, the property and rights which may be the
object of any litigation in which they take part by virtue of
their profession (Article 1491(5), Civil Code).
Ratio: The prohibition is based on the existing relation of
trust or the lawyers peculiar control over the property.
REQUISITES (RLCP)
(1) There is an attorney-client relationship;
(2) The property or interest of the client is in
litigation;
(3) The attorney takes part as counsel in the case;
(4) The attorney purchases or acquires the property
or right, by himself or through another, during the
pendency of litigation (Laig v. CA (1978)).
INSTANCES WHEN PROHIBITION IN ART. 1491
APPLIES:
(1) Even if the purchase or lease of the property in
litigation is in favor of a partnership, of which counsel
is a partner (Mananquil v. Villegas (1990)),
(2) If the purchase is made by the wife of the attorney
(In re: Galderon (1907))
(3) Mortgage of property in litigation to the lawyer. In
this case, acquisition is merely postponed until
foreclosure but effect is the same. It also includes
assignment of property (Ordonio v. Eduarte (1992)).
The purchase by a lawyer of the property in litigation
from his clientis void and could produce no legal effect
(Article 1409(7), Civil Code)(Rubias v. Batiller (1973)).
INSTANCES WHEN PROHIBITION IN ART. 1491
DOES NOT APPLY:
(1) When the attorney is not a counsel in the case
involving the same property at the time of
acquisition;
(2) When purchaser is a corporation, even if the
attorney was an officer (Tuason v. Tuason (1974));
(3) When sale takes place after termination of
litigation, except if there was fraud or use/abuse of
confidential information or where lawyer exercised
undue influence;
(4) Where property in question is stipulated as part of
attorneys fees, provided that, the same is contingent
upon the favorable outcome of litigation and, provided
further, that the fee must be reasonable.
Rule 16.01. A lawyer shall account for all money or
property collected or received for or from the client.
Ratio: The lawyer merely holds said money or property
in trust.
When a lawyer collects or receives money from his client
for a particular purpose (such as for filing fees,
registration fees, transportation and office expenses), he
should promptly account to the client how the money
was spent. If he does not use the money for its intended
purpose, he must immediately return it to the client
(Belleza v. Macasa (2009)).
The fact that a lawyer has a lien for fees on money in his
hands would not relieve him from the duty of promptly
accounting for the funds received (Daroy v. Legaspi
(1975)).
GUIDELINES ON BORROWING OR LENDING 16.04
Rule 16.04. A lawyer shall not borrow money from his
client unless the clients interests are fully protected by
the nature of the case or by independent advice. Neither
shall a lawyer lend money to a client except when, in the
interest of justice, he has to advance necessary
expenses in a legal matter he is handling for the client.
A LAWYER IS PROHIBITED FROM BORROWING
MONEY FROM HIS CLIENT
Ratio: The canon presumes that the client is
disadvantaged by the lawyers ability to use all the legal
maneuverings to renege on her obligation (Frias v.
Lozada (2005)).
A LAWYER IS PROHIBITED FROM LENDING MONEY
TO HIS CLIENT
Ratio: The canon intends to assure the lawyers
independent professional judgment, for if the lawyer
acquires a financial interest in the outcome of the case,
the free exercise of his judgment may be adversely
affected.
Exception: When, in the interest of justice, he has to
advance necessary expenses in a legal matter he is
handling.
ADEQUATE PREPARATION 18.02
Rule 18.02. A lawyer shall not handle any legal matter
without adequate preparation.
A lawyer should safeguard his clients rights and
interests by thorough study and preparation, mastering
applicable law and facts involved in a case, and keeping
constantly abreast of the latest jurisprudence and
developments in all branches of the law (Agpalo
(2004)).
HIRING OF A COLLABORATING COUNSEL
GUIDELINES
Rule 18.01. A lawyer shall not undertake a legal service
which he knows or should know that he is not qualified to
render. However, he may render such service if, with the
consent of his client, he can obtain as collaborating
counsel a lawyer who is competent on the matter.
WHEN A LAWYER ACCEPTS A CASE, WHETHER
FOR A FEE OR NOT, HIS ACCEPTANCE IS AN
IMPLIED REPRESENTATION:
1. That he possesses the requisite degree of
academic learning, skill and ability necessary in the
practice of his profession;
 2. That he will exert his best judgment in the or property and the amount of which may be on a
prosecution or defense of the litigation entrusted to percentage basis;
him; (3) A fixed fee payable per appearance;
(4) A fixed fee computed by the number of hours spent;
3. That he will exercise ordinary diligence or that (5) A fixed fee based on a piece of work;
reasonable degree of care and skill demanded of the
(6) A combination of any of the above stipulated fees.
business he undertakes to do, to protect the clients
interests and take all steps or do all acts necessary
GUIDELINES ON QUANTUM MERUIT
thereof (Uy v. Tansinin (2009)).; and
QUANTUM MERUIT
4. That he will take steps as will adequately
Means as much as a lawyer deserves.
safeguard his clients interests (Islas v. Platon
Essential requisite: Acceptance of the benefits by one
(1924)).
sought to be charged for services rendered under
circumstances as reasonably to notify him that lawyer
expects compensation.
WHAT MATTERS ARE WITHIN CONTROL OF
WHEN AUTHORIZED:
CLIENT/COUNSEL
(1) The agreement as to counsel fees is invalid for
Rule 19.03.A lawyer shall not allow his client to dictate
some reason other than the illegality of the object of
the procedure on handling the case.
performance;
Within clients Within counsels control
control (2) There is no express contract for attorneys fees
The cause of action, All the proceedings in court agreed upon between the lawyer and the client;
the claim or demand to enforce the remedy, to (3) When although there is a formal contract of
sued upon, and the bring the claim, demand, attorneys fees, the stipulated fees are found
subject matter of the cause of action, or subject unconscionable or unreasonable by the court;
litigation are all within matter of the suit to hearing,
the exclusive control of trial, determination, (4) When the contract for attorneys fees is void due
a client. judgment, and execution, are to purely formal matters or defects of execution;
An attorney may not within the exclusive control
impair, compromise, of the attorney (Belandres v. (5) When the counsel, for justifiable cause, was not
settle, surrender, or Lopez Sugar Central Mill able to finish the case to its conclusion;
destroy them without (1955)).
his client's consent.
(6) When lawyer and client disregard the contract of
attorneys fees;
FEES (20.01)
Rule 20.01. A lawyer shall be guided by the following
factors in determining his fees: (7) When there is a contract but no stipulation as to
(a) The time spent and the extent of the services attorneys fees.
rendered or required;
(b) The novelty and difficulty of the questions QUANTUM MERUIT GUIDELINES
involved; (1) Time spent and extent of the services rendered. A
(c) The importance of the subject matter; lawyer is justified in fixing higher fees when the case
(d) The skill demanded; is so complicated and requires more time and efforts
(e) The probability of losing other employment as a to finish it.
result of acceptance of the proffered case;
(f) The customary charges for similar services and (2) Importance of subject matter. The more important
the schedule of fees of the IBP chapter to which he the subject matter or the bigger value of the interest
belongs; or property in litigation, the higher is the attorneys
(g) The amount involved in the controversy and the fee.
benefits resulting to the client from the service;
(h) The contingency or certainty of compensation; (3) Novelty and difficulty of questions involved. When
(i) The character of the employment, whether the questions in a case are novel and difficult, greater
occasional or established; and efforts, deeper study, and research are bound to burn
(j) The professional standing of the lawyer. the lawyers time and stamina considering that there
are no local precedents to rely upon.
MANNER BY WHICH ATTORNEYS MAY BE PAID
(1) A fixed or absolute fee which is payable regardless of (4) Skill demanded of the lawyer. The totality of the
the result of the case; lawyers experience provides him the skill and
(2) A contingent fee that is conditioned upon the competence admired in lawyers.
securing of a favorable judgment and recovery of money The above rules apply in the case of a counsel de parte.
A counsel de oficio may not demand from the accused
attorneys fees even if he wins the case. However,
subject to availability of funds, the court may, in its
discretion, order an attorney employed as counsel de
oficio to be compensated in such sum as the court may
fix.
The criteria in fixing the amount are still:
(1) The importance of the subject matter of the
controversy;
(2) The extent of the services rendered; and
(3) The professional standing of the attorney.
DIFFERENT FEES
I. ACCEPTANCE FEES
Acceptance of money from a client establishes an
attorney-client relationship and gives rise to the duty of
fidelity to the clients cause. (Emiliano Court
Townhouses Homeowners Association v. Dioneda
(2003)).
REQUISITES
(1) Attorney-client relationship;
(2) Lawful possession by lawyer of the clients funds,
documents and papers in his professional capacity; and
(3) Unsatisfied claim for attorneys fees or
disbursements.
CHARGING LIEN
He shall also have a lien to the same extent upon all
judgments for the payment of money, and executions
issued in pursuance of such judgments, which he has
secured in a litigation of his client. This lien exists from
and after the time when he shall have caused:
(1) A statement of his claim of such lien to be entered
upon the records of the court rendering such
judgment, or issuing such execution; and
(2) Written notice thereof to be delivered to his client
and to the adverse party.

Failure to render the legal services agreed upon, despite From then on, he shall have the same right and power
receipt of an acceptance fee, is a clear violation of the over such judgments and executions as his client would
Code of Professional Responsibility (Macarulay v. Seria have to enforce his lien and secure the payment of his
(2005)). just fees and disbursements (Section 37, Rule 138).

It is the duty of an attorney to accept no compensation in REQUISITES

connection with his clients business except from him or (1) Attorney-client relationship;
with his knowledge and approval (Section 20(e), Rule (2) The attorney has rendered services;
138). (3) A money judgment favorable to the client has
been secured in the action; and
DIFFERENT CONTRACT (4) The attorney has a claim for attorneys fees or
II. CONTINGENCY FEE ARRANGEMENTS advances statement of his claim has been recorded
A distinction should be made between a champertous in the case with notice served upon the client and
contract and a contingent contract with respect to adverse party.
attorneys fees:
Retaining lien Charging lien
Champertous Contract Contingent Contract Nature
A champertous contract is A contingent contract is an Passive lien. It cannot be Active lien. It can be
one where the lawyer agreement in which the actively enforced. It is a general enforced by
stipulates with his client lawyers fee, usually a lien. execution. It is a
that he will bear all the fixed percentage of what special lien.
expenses for the may be recovered in the Basis
prosecution of the case, action, is made to depend Lawful possession of funds, Securing of a
the recovery of things or upon the success in the papers, documents, property favorable money
property being claimed, effort to enforce or defend belonging to client judgment for client
and the latter pays only the clients right. The Coverage
upon successful litigation. lawyer does not undertake Covers only funds, papers, Covers all judgments
This contract is void for to shoulder the expenses documents, and property in the for the payment of
being against public of litigation. lawful possession of the money and
policy It is a valid agreement. attorney by reason of his executions issued in
professional employment pursuance of such
DIFFERENT LIEN judgment
RETAINING LIEN Effectivity
An attorney shall have a lien upon the funds, documents As soon as the lawyer gets As soon as the claim
and papers of his client which have lawfully come into possession of the funds, for attorneys fees
his possession. Thus: papers, documents, property had been entered
(1) He may retain the same until his lawful fees and into the records of
disbursements have been paid; the case

(2) May apply such funds to the satisfaction thereof

(Sec. 37, Rule 138).
 Applicability
May be exercised before
judgment or execution, or
regardless thereof
Notice
Client need not be notified to
make it effective
Generally, it is
exercisable only
when the attorney
had already secured
a favorable judgment
for his client
Client and adverse
party need to notified
to make it effective

20.04
Rule 20.04. A lawyer shall avoid controversies with
clients concerning his compensation and shall resort to
judicial action only to prevent imposition, injustice or
fraud.

JUDICIAL ACTIONS TO RECOVER ATTORNEYS

FEES:
(1) An appropriate motion or petition as an incident in
the main action where he rendered legal services;
(2) A separate civil action for collection of attorneys
fees.

Only when the circumstances imperatively require

should a lawyer resort to lawsuit to enforce payment of
fees. This is but a logical consequence of the legal
profession not primarily being for economic
compensation (Agpalo (2004)).

V. CONCEPTS OF ATTORNEYS FEES

Ordinary concept Extraordinary concept
An attorneys fee is the An attorneys fee is an
reasonable compensation indemnity for damages
paid to a lawyer for the ordered by the court to be
legal services he has paid by the losing party to
rendered to a client. the prevailing party in a