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CHAPTER 1 Passing the bar exam is not enough

Requirements “before admission to the bar” or for continuous • A bar candidate does not acquire the right to practice law
“practice of law”, etc. simply by passing the bar examinations. The practice of law is
a privilege that can be withheld even from one who has passed
What is practice of law? the bar examinations, if the person seeking admission had
• The Court ruled that the term “practice of law” implies practiced law without a license.
customarily or habitually holding oneself out to the public as a • True, respondent here passed the 2000 Bar Examinations and
lawyer for compensation as a source of livelihood or in took the lawyer’s oath. However, it is the signing in the Roll of
consideration of his services. The Court further ruled that holding Attorneys that finally makes one a full-fledged lawyer. The
one’s self out as a lawyer may be shown by acts indicative of that fact that respondent passed the bar examinations is immaterial.
purpose, such as identifying oneself as attorney, appearing in Passing the bar is not the only qualification to become an attorn
court in representation of a client, or associating oneself as a ey-at-law. Respondent should know that two essential requisites
partner of a law office for the general practice of law. - Atty. for becoming a lawyer still had to be performed, namely: his
Noe-Lacsaman v. Atty. Busmente, A.C. No. 7269 [2011] lawyer’s oath to be administered by this Court and his signature
• Any activity, in and out of court, that requires the application of in the Roll of Attorneys. – Aguirre v. Rana, B. M. No. 1036. June
law, legal procedure, knowledge, training and experience. 10, 2003
Moreover, we ruled that to engage in the practice of law is to
perform those acts which are characteristics of the profession; Signing of the Lawyer’s Oath is not equivalent to “taking the
to practice law is to give notice or render any kind of service, oath”
which device or service requires the use in any degree of legal • Respondent Abad should know that the circumstances which
knowledge or skill. - Query of Atty. Silverio-Buffe, A.M. No. 08- he has narrated do not constitute his admission to the Philippine
6-352-RTC [2009] Bar and the right to practice law thereafter. He should know that
• The practice of law is not limited to the conduct of cases or two essential requisites for becoming a lawyer still had to be
litigation in court; it embraces the preparation of pleadings and performed, namely: his lawyer's oath to be administered by this
other papers incident to actions and special proceedings, the Court and his signature in the Roll of Attorneys. (Rule 138, Secs.
management of such actions and proceedings on behalf of clients 17 and 19, Rules of Court.) - Re: Elmo Abad, A. M. No. 139
before judges and courts, and in addition, conveyancing. [1983]
• In general, all advice to clients, and all action taken for them in
matters connected with the law xxx. - Aguirre v. Rana, B. M. No. Whether or not a lawyer is entitled to exemption from payment
1036. June 10, 2003 of his IBP dues during the time that he was inactive in the
practice of law
Who may practice law? • Thus, payment of dues is a necessary consequence of
• Section 1, Rule 138 of the Rules of Court provides: membership in the IBP, of which no one is exempt. This means
Who may practice law. – Any person heretofore duly admitted as a that the compulsory nature of payment of dues subsists for as
member of the bar, or thereafter admitted as such in accordance long as one’s membership in the IBP remains regardless of
with the provisions of this Rule, and who is in good and regular the lack of practice of, or the type of practice, the member is
standing, is entitled to practice law. engaged in.
• There is nothing in the law or rules which allows exemption 2. appearing before court hearings as an attorney;
from payment of membership dues. At most, as correctly 3. manifesting before the court that he will practice law despite
observed by the IBP, he could have informed the Secretary of the being previously denied admission to the bar; or
Integrated Bar of his intention to stay abroad before he left. In 4. deliberately attempting to practice law and
such case, his membership in the IBP could have been terminated 5. holding out himself as an attorney through circulars with full
and his obligation to pay dues could have been discontinued. - knowledge that he is not licensed to do so.
Letter of Atty. Cecilio Y. Arevalo Jr. B.M. 1370 May 9, 2005
- Normatan & Pagayokan v. Balajadia, G.R. No. 169517 2006

Is IBP membership fee a form of tax? Pre-law requirements


• For the court to prescribe dues to be paid by the members • Rule 138 Sec. 6. Pre-Law. - No applicant for admission to the
does not mean that the Court is attempting to levy a tax. bar examination shall be admitted unless he presents a certificate
• A membership fee in the Bar association is an exaction for that he has satisfied the Secretary of Education that, before he
regulation, while tax purpose of a tax is a revenue. If the began the study of law, he had pursued and satisfactorily
judiciary has inherent power to regulate the Bar, it follows that as completed in an authorized and recognized university or
an incident to regulation, it may impose a membership fee for that college, requiring for admission thereto the completion of a four-
purpose. It would not be possible to put on an integrated Bar year high school course, the course of study prescribed therein
program without means to defray the expenses. The doctrine of for a bachelor's degree in arts or sciences with any of the
implied powers necessarily carries with it the power to impose following subjects as major or field of concentration: political
such exaction. - Letter of Atty. Cecilio Y. Arevalo Jr. B.M. 1370 science, logic, english, spanish, history and economics.
May 9, 2005
Violation of Rule 138 section 6
There is no provision under the CPR which prohibits the • “[b]y utilizing the school records of his cousin and name-sake,
unauthorized practice of law Juan M. Publico when, in actual fact, petitioner had not
• CANON 9 - A lawyer shall not, directly or indirectly, assist in completed Grade VI of his elementary schooling, much less, First
the unauthorized practice of law. and Second Year High School.”
• While a reading of Canon 9 appears to merely prohibit • For all the foregoing, we find and so hold that respondent
lawyers from assisting in the unauthorized practice of law, the falsified his school records, by making it appear that he had
unauthorized practice of law by the lawyer himself is finished or completed Grade VI elementary and First and
subsumed under this provision, because at the heart of Canon 9 Second Year high school, when in truth and in fact he had not,
is the lawyer's duty to prevent the unauthorized practice of law. - thereby violating the provisions of Sections 5 and 6, Rule 127 of
Petition to sign in the Roll of Attorneys, Medado, B.M. No. 2540 the Rules of Court, which require completion by a bar examinee
[2013] or candidate of the prescribed courses in elementary, high, pre-
law and law school, prior to his admission to the practice of law. -
Examples of unauthorized practice of law In re: Juan Publico,Petition for Reinstatement in the Roll of
• In the cases where we found a party liable for the Attorneys February 20, 1981
unauthorized practice of law, the party was guilty of some overt
act like:
1. signing court pleadings on behalf of his client;
Applicant should be ready to present evidence of good moral • To show rehabilitation, [one] must show that he has accepted
character responsibility for his criminal conduct.
• When applicants seek admission to the bar, they have placed • Rehabilitation is a necessary, but not sufficient, ingredient of
their character at issue. Therefore, the applicant bears the burden good moral character of bar applicant who had been convicted of
of producing information proving good moral character. - a serious felony; applicant must establish his current good moral
Mitchell Simon , Nick Smith and Nicole Negowetti character, independent of and in addition to, evidence of
rehabilitation. - In re: James Joseph Hamm 123 P.3d 652
Grossly immoral act [2005]
• A grossly immoral act is one that is so corrupt and false as to
constitute a criminal act or so unprincipled or disgraceful as to be Rehabilitation is not enough
reprehensible to a high degree. It is a willful, flagrant, or § Even assuming that [one] has established rehabilitation,
shameless act which shows a moral indifference to the opinion of showing rehabilitation from criminal conduct does not, in itself,
respectable members of the community. - Figueroa v. Barranco, establish good moral character.
Jr. SBC Case No. 519 1997 § Rehabilitation is a necessary, but not sufficient, ingredient of
good moral character. An applicant must establish his current
Is breach of promise to marry gross immorality? good moral character, independent of and in addition to, evidence
§ Respondent was prevented from taking the lawyer’s oath in of rehabilitation.
1971 because of the charges of gross immorality made by § Even assuming that he has established rehabilitation, showing
complainant. To recapitulate, respondent bore an illegitimate rehabilitation from criminal conduct does not, in itself,
child with his sweetheart, Patricia Figueroa, who also claims that establish good moral character. - In re: James Joseph Hamm 123
he did not fulfill his promise to marry her after he passes the P.3d 652 [2005]
bar examinations.
§ We find that these facts do not constitute gross immorality What is an “upright character” ?
warranting the permanent exclusion of respondent from the legal • 'Upright character' is something more than an absence of bad
profession. His engaging in premarital sexual relations with character. It means that he [an applicant for admission] must have
complainant and promises to marry suggests a doubtful conducted himself as a man of upright character ordinarily would,
moral character on his part but the same does not constitute should, or does. Such character expresses itself not in negatives
grossly immoral conduct. The Court has held that to justify nor in following the line of least resistance, but quite often in the
suspension or disbarment the act complained of must not only be will to do the unpleasant thing if it is right, and the resolve not to
immoral, but grossly immoral. - Figueroa v. Barranco, Jr. SBC do the pleasant thing if it is wrong. - In re: James Joseph Hamm
Case No. 519 1997 123 P.3d 652 [2005]
Good moral character v. Rehabilitation Past and Present moral character
• When an applicant for admission to the bar has committed • We also agree with Hamm that, under the Rule applicable to
first-degree murder, a crime that demonstrates an extreme lack Hamm's application, our concern must be with the applicant's
of good moral character, he must make an extraordinary present moral character. In Greenberg, we explained that "it is
showing of present good moral character to establish that he or [the applicant's] moral character as of now with which we are
she is qualified to be admitted to the practice of law xxx. concerned." xxx Past misconduct, however, is not irrelevant.
Rather, this Court must determine what past bad acts reveal about § By indicating "IBP-Rizal 259060" in his pleadings and
an applicant's current character. - In re: James Joseph Hamm 123 thereby misrepresenting to the public and the courts that he
P.3d 652 [2005] had paid his IBP dues to the Rizal Chapter, respondent is guilty
of violating the Code of Professional Responsibility which
Effect of prior criminal conviction provides:
• “Although a prior conviction is not conclusive of a lack of § Rule 1.01 - A lawyer shall not engage in unlawful, dishonest,
present good moral character, ... it adds to his burden of immoral or deceitful conduct.
establishing present good character by requiring convincing § CANON 7 - A LAWYER SHALL AT ALL TIMES
proof of his full and complete rehabilitation.”- In re: James UPHOLD THE INTEGRITY AND DIGNITY OF THE LEGAL
Joseph Hamm 123 P.3d 652 [2005] PROFESSION, AND SUPPORT THE ACTIVITIES OF THE
INTEGRATED BAR.
Can a lawyer-detainee practice law? § CANON 10 - A LAWYER OWES CANDOR, FAIRNESS
• As a matter of law, when a person indicted for an offense is AND GOOD FAITH TO THE COURT.
arrested, he is deemed placed under the custody of the law. He is § Rule 10.01 - A lawyer shall not do any falsehood, nor consent
placed in actual restraint of liberty in jail so that he may be bound to the doing of any court; nor shall he mislead or allow the court
to answer for the commission of the offense. He must be detained to be misled by any artifice. - Santos, Jr. V. Atty. Llamas A.C No.
in jail during the pendency of the case against him, unless he is 4749 [2000]
authorized by the court to be released on bail or on recognizance.
Let it be stressed that all prisoners whether under preventive Is a “senior citizen” lawyer exempted from payment of ITR also
detention or serving final sentence can not practice their exempted from payment of IBP dues?
profession nor engage in any business or occupation, or hold • While it is true that R.A. No. 7432, §4 grants senior citizens
office, elective or appointive, while in detention. This is a "exemption from the payment of individual income taxes:
necessary consequence of arrest and detention. – PP v. Hon. provided, that their annual taxable income does not exceed the
Maceda and Javellana G.R. No. 89591-96 January 24, 2000 poverty level as determined by the National Economic and
Development Authority (NEDA) for that year," the exemption
What is the effect of non-payment of IBP dues? does not include payment of membership or association dues.
• Rule 139-A, Section 10 which provides that "default in the - Santos, Jr. V. Atty. Llamas A.C No. 4749 [2000]
payment of annual dues for six months shall warrant suspension
of membership in the Integrated Bar, and default in such Intent is necessary to be guilty of unauthorized practice of law
payment for one year shall be a ground for the removal of the • In several cases, we have ruled that the unauthorized practice
name of the delinquent member from the Roll of Attorneys.” - of law by assuming to be an attorney and acting as such
Santos, Jr. V. Atty. Llamas A.C No. 4749 [2000] without authority constitutes indirect contempt which is
punishable by fine or imprisonment or both. The liability for the
unauthorized practice of law under Section 3(e), Rule 71 of the
Rules of Court is in the nature of criminal contempt and the
Misrepresenting to the public and the courts that he had paid his acts are punished because they are an affront to the dignity and
IBP dues authority of the court, and obstruct the orderly administration of
justice. In determining liability for criminal contempt, well-
settled is the rule that intent is a necessary element, and no one
can be punished unless the evidence makes it clear that he Requirements before one can resume practice of law after
intended to commit it. - Normatan & Pagayokan v. Balajadia, reacquiring Filipino citizenship
G.R. No. 169517 2006 • Before a lawyer who reacquires Filipino citizenship pursuant
to RA 9225 can resume his law practice, he must first secure from
this Court the authority to do so, conditioned on:
Does giving up Philippine citizenship automatically result into a) the updating and payment in full of the annual membership
lost of membership in the Philippine bar? dues in the IBP;
• The Constitution provides that the practice of all professions b) the payment of professional tax;
in the Philippines shall be limited to Filipino citizens save in c) the completion of at least 36 credit hours of mandatory
cases prescribed by law. Since Filipino citizenship is a continuing legal education; this is specially significant to refresh
requirement for admission to the bar, loss thereof terminates the applicant/petitioner’s knowledge of Philippine laws and
membership in the Philippine bar and, consequently, the update him of legal developments and
privilege to engage in the practice of law. In other words, the loss d) the retaking of the lawyer’s oath which will not only remind
of Filipino citizenship ipso jure terminates the privilege to him of his duties and responsibilities as a lawyer and as an officer
practice law in the Philippines. The practice of law is a privilege of the Court, but also renew his pledge to maintain allegiance to
denied to foreigners. - Petition for leave to resume practice of the Republic of the Philippines. – Petition for leave to resume
law,Dacanay B.M. No. 1678 December 17, 2007 practice of law, Dacanay B.M. No. 1678 December 17, 2007

May a lawyer who has lost his Filipino citizenship still practice What is the purpose for requiring the retaking of Lawyer’s
law in the Philippines? Oath?
• The Constitution provides that the practice of all professions • The retaking of the lawyer’s oath which will not only
in the Philippines shall be limited to Filipino citizens save in remind him of his duties and responsibilities as a lawyer and as
cases prescribed by law. Since Filipino citizenship is a an officer of the Court, but also renew his pledge to maintain
requirement for admission to the bar, loss thereof terminates allegiance to the Republic of the Philippines.
membership in the Philippine bar and, consequently, the privilege
to engage in the practice of law. In other words, the loss of Citizenship requirement in order to practice law in the
Filipino citizenship ipso jure terminates the privilege to practice Philippines
law in the Philippines. The practice of law is a privilege denied to • Constitution Art. 12 Section 14. xxx. The practice of all
foreigners. - Petition for leave to resume practice of law,Dacanay professions in the Philippines shall be limited to Filipino citizens,
B.M. No. 1678 December 17, 2007 save in cases prescribed by law.

Effect of reacquisition of Filipino citizenship Requirements for all applicants for admission to the bar
• A Filipino lawyer who becomes a citizen of another country • Section 2, Rule 138 (Attorneys and Admission to Bar) of the
and later re-acquires his Philippine citizenship under R.A. No. Rules of Court:
9225, remains to be a member of the Philippine Bar. – Petition to Requirements for all applicants for admission to the bar. –
reacquire the privilege to practice law in the Philippines, Every applicant for admission as a member of the bar must be
Muneses, B.M. 2112 [2012] a citizen of the Philippines, at least twenty-one years of
age, of good moral character, and a resident of the Section 2. Section 41 of the Administrative Code of 1987 is hereby
Philippines; and must produce before the Supreme Court amended to read as follows
satisfactory evidence of good moral character, and that no Sec. 41. Officers Authorized to Administer Oath. - The following
charges against him, involving moral turpitude, have been officers have general authority to administer oaths:
filed or are pending in any court in the Philippines. • President;
• Vice-President;
Continuing requirements to practice law • Members and Secretaries of both Houses of the Congress;
• The second requisite for the practice of law ― membership in • Members of the Judiciary;
good standing ― is a continuing requirement. This means • Secretaries of Departments;
continued membership and, concomitantly, payment of annual • provincial governors and lieutenant-governors;
membership dues in the IBP; payment of the annual professional • city mayors;
tax; compliance with the mandatory continuing legal education • municipal mayors;
requirement; faithful observance of the rules and ethics of the • bureau directors;
legal profession and being continually subject to judicial • regional directors;
disciplinary control. -Petition for leave to resume practice of • clerks of courts;
law,Dacanay B.M. No. 1678 December 17, 2007 • registrars of deeds;
• other civilian officers in the public service of the government
Phases of admission to the bar of the Philippines whose appointments are vested in the
• Moreover, admission to the bar involves various phases such President and are subject to confirmation by the Commission
as furnishing satisfactory proof of educational, moral and other on Appointments;
qualifications; passing the bar examinations; taking the lawyer’s • all other constitutional officers;
oath and signing the roll of attorneys and receiving from the clerk • and notaries public."
of court of this Court a certificate of the license to practice. -
Petition for leave to resume practice of law,Dacanay B.M. No. Duties of Attorneys
1678 December 17, 2007 • Rule 138 section 20 - It is the duty of an attorney:
(a) To maintain allegiance to the Republic of the Philippines and to
Can a successful examinee take his oath before any person support the Constitution and obey the laws of the Philippines;
allowed by law to administer an oath? (b) To observe and maintain the respect due to the courts of justice
• Rule 138 Sec. 17. Admission and oath of successful applicants. - and judicial officers;
An applicant who has passed the required examination, or has (c) To counsel or maintain such actions or proceedings only as appear
been otherwise found to be entitled to admission to the bar, shall to him to be just, and such defenses only as he believes to be honestly
take and subscribe before the Supreme Court the corresponding debatable under the law;
oath of office. (d) To employ, for the purpose of maintaining the causes confided to
• Inasmuch as the oath as lawyer is a prerequisite to the practice of him, such means only as are consistent with truth and honor, and
law and may be taken only, before the Supreme Court, by never seek to mislead the judge or any judicial officer by an artifice
those authorized by the latter to engage in such practice xxx. – PP or false statement of fact or law;
v. De Luna, et. al. G.R. Nos. L-10236-48. January 31, 1958 (e) To maintain inviolate the confidence, and at every peril to
himself, to preserve the secrets of his client, and to accept no
compensation in connection with his client's business except from Certificate of Membership & Certificate of Membership in Good
him or with his knowledge and approval; Standing in IBP
(f) To abstain from all offensive personality and to advance no fact • Certificate of Membership in the Integrated Bar of the
prejudicial to the honor or reputation of a party or witness, unless Philippines as well as a Certificate of Membership in Good
required by the justice of the cause with which he is charged; Standing with the Quezon City Chapter of the Integrated Bar of
(g) Not to encourage either the commencement or the continuance of the Philippines do not constitute his admission to the
an action or proceeding, or delay any man's cause, from any corrupt Philippine Bar and the right to practice law thereafter. - Re:
motive or interest; Elmo Abad, A. M. No. 139 [1983]
(h) Never to reject, for any consideration personal to himself, the
cause of the defenseless or oppressed; Requirements after flunking the bar 3 times
(i) In the defense of a person accused of crime, by all fair and • Sec. 16. Failing candidates to take review course. -
honorable means, regardless of his personal opinion as to the guilt of Candidates who have failed the bar examinations for three times
the accused, to present every defense that the law permits, to the end shall be disqualified from taking another examination unless they
that no person may be deprived of life or liberty, but by due process show to the satisfaction of the court that they have enrolled in
of law. and passed regular fourth year review classes as well as
attended a pre-bar review course in a recognized law school.
What is a lawyer’s proof of authority to practice of law?
• Rule 138 Sec. 18. Certificate. - The Supreme Court shall • Enrollment and completion of pre-bar review course is an
thereupon admit the applicant as a member of the bar for all the additional requirement under Rule 138 of the Rules of Court for
courts of the Philippines, and shall direct an order to be entered to those who failed the bar examinations for three (3) or more times.
that effect upon its records, and that a certificate of such record be - In re: Purisima, B.M. Nos. 979 and 986 [2002]
given to him by the clerk of court, which certificate shall be his
authority to practice. The professors of the individual review subjects attended by the
candidates under this rule shall certify under oath that the
Failure to sign in the Roll of Attorneys candidates have regularly attended classes and passed the subjects
• Petitioner did not sign in the Roll of Attorneys for 32 years. under the same conditions as ordinary students and the ratings
What he had signed at the entrance of the PICC was probably just obtained by them in the particular subject.
an attendance record.
• As Medado is not yet a full-fledged lawyer, we cannot Authority to appear in behalf of a client
suspend him from the practice of law. However, we see it fit to
impose upon him a penalty akin to suspension by allowing him • Sec. 21. Authority of attorney to appear. - An attorney is
to sign in the Roll of Attorneys one ( 1) year after receipt of this presumed to be properly authorized to represent any cause in
Resolution. For his transgression of the prohibition against the which he appears, and no written “power of attorney” is
unauthorized practice of law, we likewise see it fit to fine him in required to authorize him to appear in court for his client, but
the amount of P32,000. – Petition to sign in the Roll of Attorneys, the presiding judge may, on motion of either party and on
Medado, B.M. No. 2540 [2013] reasonable grounds therefor being shown, require any attorney
who assumes the right to appear in a case to produce or prove
the authority under which he appears, and to disclose,
whenever pertinent to any issue, the name of the person who Can an “indefinite suspension” from the practice of law prohibit
employed him, and may thereupon make such order as justice a lawyer from filing a citizen or taxpayer suit?
requires. An attorney wilfully appearing in court for a person • Petitioner Alan F. Paguia (petitioner), as citizen and
without being employed, unless by leave of the court, may be taxpayer, filed this original action for the writ of certiorari to
punished for contempt as an officer of the court who has invalidate President Gloria Macapagal-Arroyo’s nomination of
misbehaved in his official transactions. respondent former Chief Justice Hilario G. Davide, Jr.
(respondent Davide) as Permanent Representative to the United
A “Counselor” is not an “Attorney” Nations (UN) for violation of Section 23 of Republic Act No.
• The title of "attorney" is reserved to those who, having 7157 (RA 7157), the Philippine Foreign Service Act of 1991.
obtained the necessary degree in the study of law and • In their separate Comments, respondent Davide, the Office of
successfully taken the Bar Examinations, have been admitted to the President, and the Secretary of Foreign Affairs (respondents)
the Integrated Bar of the Philippines and remain members thereof raise threshold issues against the petition. First, they question
in good standing; and it is they only who are authorized to petitioner’s standing to bring this suit because of his
practice law in this jurisdiction. indefinite suspension from the practice of law.
• His disinclination to use the title of "counselor" does not
warrant his use of the title of attorney. - Alawi v. Alauya, A.M. • An incapacity to bring legal actions peculiar to petitioner also
SDC-97-2-P. February 24, 1997 obtains. Petitioner’s suspension from the practice of law bars
him from performing “any activity, in or out of court, which
Prohibited acts of an examinee requires the application of law, legal procedure, knowledge,
• Rule 138 Sec. 12. Committee of examiners. - Examinations training and experience.” Certainly, preparing a petition raising
shall be conducted by a committee of bar examiners to be carefully crafted arguments on equal protection grounds and
appointed by the Supreme Court. This committee shall be employing highly legalistic rules of statutory construction to
composed of a Justice of the Supreme Court, who shall act as parse Section 23 of RA 7157 falls within the proscribed conduct.
chairman, and who shall be designated by the court to serve for - Paguia v. Office of the President, G.R. No. 176278 [2010]
one year, and eight members of the bar of the Philippines, who
shall hold office for a period of one year. The names of the CHAPTER 2
members of this committee shall be published in each volume of Law Student Rule
the official reports. RULE 138-A
• Rule 138 Sec. 13. Disciplinary measures. - No candidate shall LAW STUDENT PRACTICE RULE
endeavor to influence any member of the committee, and SC Circular No. 19, prom. Dec. 19, 1986
during examination the candidates shall not communicate
with each other nor shall they give or receive any assistance. • SECTION 1. Conditions for Student Practice. — A law
The candidate who violates this provision, or any other provision student who has successfully completed his 3rd year of the
of this rule, shall be barred from the examination, and the same to regular four-year prescribed law curriculum and is enrolled
count as a failure against him, and further disciplinary action, in a recognized law school's clinical legal education program
including permanent disqualification, may be taken in the approved by the Supreme Court, may appear without
discretion of the court. compensation in any civil, criminal or administrative case
before any trial court, tribunal, board or officer, to present
any indigent clients accepted by the legal clinic of the law • The Rules are clear. In municipal courts, the litigant may be
school. assisted by a friend, agent, or an attorney. However, in cases
before the regional trial court, the litigant must be aided by a
• Sec. 2. Appearance. — The appearance of the law student duly authorized member of the bar. The rule invoked by the
authorized by this rule, shall be under the direct supervision Torcinos applies only to cases filed with the regional trial court
and control of a member of the Integrated Bar of the and not to cases before a municipal court. - Bulacan v. Torcino,
Philippines duly accredited by the law school. Any and all G.R. No. L-44388 January 30, 1985
pleadings, motions, briefs, memoranda or other papers to be • But for the protection of the parties and in the interest of justice,
filed, must be signed by the supervising attorney for and in the requirement for appearances in regional trial courts and
behalf of the legal clinic. higher courts is more stringent. – Bulacan v. Torcino, G.R. No.
L-44388 January 30, 1985
• The phrase "direct supervision and control" requires no
less than the physical presence of the supervising lawyer
during the hearing. Reconciling the 2 rules
• There is really no problem as to the application of Section 34
• Sec. 3. Privileged communications. — The Rules of Rule 138 and Rule 138-A. In the former, the appearance of a
safeguarding privileged communications between attorney non-lawyer, as an agent or friend of a party litigant, is expressly
and client shall apply to similar communications made to or allowed, while the latter rule provides for conditions when a law
received by the law student, acting for the legal clinic. student, not as an agent or a friend of a party litigant, may appear
before the courts. - Cruz v. Mina GR no. 154207 April 27, 2007
• Sec. 4. Standards of conduct and supervision. — The law
student shall comply with the standards of professional The phrase“In the court of a justice of the peace”means:
conduct governing members of the Bar. Failure of an • The phrase “In the court of a justice of the peace” in Bar
attorney to provide adequate supervision of student practice Matter No. 730 is subsequently changed to “In the court of a
may be a ground for disciplinary action. municipality” as it now appears in Section 34 of Rule 138, thus:
• SEC. 34. By whom litigation is conducted. — In the
Rule 138 (RRC) Sec. 34 Court of a municipality a party may conduct his litigation in
• Rule 138 (RRC) Sec. 34. By whom litigation conducted. - person, with the aid of an agent or friend appointed by him for
In the court of a justice of the peace a party may conduct his that purpose, or with the aid of an attorney. In any other court, a
litigation in person, with the aid of an agent or friend party may conduct his litigation personally or by aid of an
appointed by him for that purpose, or with the aid of an attorney and his appearance must be either personal or by a duly
attorney. authorized member of the bar. - Cruz v. Mina GR no. 154207
April 27, 2007
In any other court, a party may conduct his litigation personally
or by aid of an attorney, and his appearance must be either The term "Municipal Trial Courts" as used in these Rules shall
personal or by a duly authorized member of the bar. include:
1. Metropolitan Trial Courts,
Rule 138 section 34 does not apply in cases before the RTC 2. Municipal Trial Courts in Cities,
3. Municipal Trial Courts, and Maderada v. Judge Mediodea, A.M. No. MTJ-02-1459. October
4. Municipal Circuit Trial Courts. 14, 2003
- Cruz v. Mina GR no. 154207 April 27, 2007 • The law allows persons who are not lawyers by profession to
litigate their own case in court. The right of complainant to
BAR MATTER NO.730, June 13, 1997 litigate her case personally cannot be taken away from her. -
• For the guidance of the bench and bar, we hold that a law Maderada v. Judge Mediodea, A.M. No. MTJ-02-1459. October
student appearing before the Regional Trial Court under Rule 14, 2003
138-A should at all times be accompanied by a supervising
lawyer. UNAUTHORIZED PRACTICE OF LAW
• CANON 9 - A LAWYER SHALL NOT, DIRECTLY OR
Law student can appear without supervision of a lawyer INDIRECTLY, ASSIST IN THE UNAUTHORIZED
• The rule, however, is different if the law student appears before PRACTICE OF LAW.
an inferior court, where the issues and procedure are relatively • Rule 9.01 - A lawyer shall not delegate to any unqualified
simple. In inferior courts, a law student may appear in his person the performance of any task which by law may only be
personal capacity without the supervision of a lawyer. performed by a member of the bar in good standing.
• Thus, a law student may appear before an inferior court as an
agent or friend of a party without the supervision of a member Threefold rationale behind the Law Student Practice Rule
of the bar. • 1. to ensure that there will be no miscarriage of justice as a
result of incompetence or inexperience of law students, who,
Caution when one act as his own attorney not having as yet passed the test of professional competence, are
• This provision means that in a litigation, parties may personally presumably not fully equipped to act a counsels on their own;
do everything during its progress -- from its commencement to its • 2. to provide a mechanism by which the accredited law school
termination. When they, however, act as their own attorneys, they clinic may be able to protect itself from any potential vicarious
are restricted to the same rules of evidence and procedure as liability arising from some culpable action by their law students;
those qualified to practice law; otherwise, ignorance would be and
unjustifiably rewarded. Individuals have long been permitted to • 3. to ensure consistency with the fundamental principle that
manage, prosecute and defend their own actions; and when they no person is allowed to practice a particular profession without
do so, they are not considered to be in the practice of law. possessing the qualifications, particularly a license, as required by
"One does not practice law by acting for himself any more than law.
he practices medicine by rendering first aid to himself.“ –
Maderada v. Judge Mediodea, A.M. No. MTJ-02-1459. October Presiding judge has no discretion
14, 2003 • The matter of allowing a law student to appear before the
court unaccompanied by a supervising lawyer cannot be left to
Appearing as his own attorney is not “practice of law” the discretion of the presiding judge. The rule clearly states that
• Clearly, in appearing for herself, complainant was not the appearance of the law student shall be under the direct
customarily or habitually holding herself out to the public as a control and supervision of a member of the Integrated Bar of the
lawyer. Neither was she demanding payment for such services. Philippines duly accredited by law schools. The rule must be
Hence, she cannot be said to be in the practice of law. - strictly construed because public policy demands that legal work
should be entrusted only to those who possess tested • SEC. 34. By whom litigation is conducted. In the Court of a
qualifications, are sworn to observe the rules and ethics of the municipality a party may conduct his litigation in person with the
legal profession and subject to judicial disciplinary control. - BAR aid of an agent or friend appointed by him for that purpose, or
MATTER NO. 730 June 13, 1997 with the aid of an attorney. In any other court, a party may
conduct his litigation personally or by aid of an attorney and his
Appearance of a law student in inferior courts does not require appearance must be either personal or by a duly authorized
supervision of lawyer member of the bar.
• For relatively simple litigation before municipal courts, the - Bulacan v. Torcino, G.R. No. L-44388 January 30, 1985
Rules still allow a more educated or capable person in behalf
of a litigant who cannot get a lawyer. - Bulacan v. Torcino, G.R. Supervising lawyer should be the one to sign the pleadings
No. L-44388 January 30, 1985 • Rule 7 (RRC) Section 3. Signature and address. — Every
• The rule, however, is different if the law student appears pleading must be signed by the party or counsel representing
before an inferior court, where the issues and procedure are him, stating in either case his address which should not be a post
relatively simple. In inferior courts, a law student may appear office box.
in his personal capacity without the supervision of a lawyer. -
BAR MATTER NO. 730 June 13, 1997 Signing amounts to certification of lawyer
• A law student may appear before an inferior court as an agent • Rule 7 (RRC) Section 3. xxx The signature of counsel constitutes
or friend of a party without the supervision of a member of the a certificate by him that he has read the pleading; that to the
bar. - BAR MATTER NO. 730 June 13, 1997 best of his knowledge, information, and belief there is good
ground to support it; and that it is not interposed for delay.
The respondent alleges that the complaint is irregular as it was
signed not by the plaintiff but by one who was not a member of Effect of unsigned pleadings
the bar and who designated himself merely as "Friend counsel • Rule 7 (RRC) Section 3. An unsigned pleading produces no
for the Plaintiff." The appellants argue that the municipal court legal effect. However, the court may, in its discretion, allow such
did not acquire jurisdiction over the case. deficiency to be remedied if it shall appear that the same was due
to mere inadvertence and not intended for delay. Counsel who
• They invoke Section 5, Rule 7 which states that [SEC. 5. deliberately files an unsigned pleading,xxx, shall be subject to
Signature and address] [e]very pleading of a party represented by appropriate disciplinary action.
an attorney shall be signed by at least one attorney of record in
his individual name, whose address shall be stated. A party who Can a third year law student appear as private prosecutor in a
is not represented by an attorney shall sign his pleading and state criminal case and within the jurisdiction of the inferior court?
his address. • The petitioner, describing himself as a third year law student,
justifies his appearance as private prosecutor on the bases of
• DECIDE. Section 34 of Rule 138 of the Rules of Court.
• The petitioner furthermore avers that his appearance was with the
Held: prior conformity of the public prosecutor and a written
• Under the facts of this case, however, the applicable provision authority of Mariano Cruz appointing him to be his agent in the
is Section 34, Rule 138 of the Rules of Court which states: prosecution of the said criminal case.
• The MeTC denied permission for petitioner to appear as private Sections 4 and 15, Rule 110 of the Rules of Court
prosecutor on the ground that Circular No. 19 (1997) governing • SEC. 4. Who must prosecute criminal actions. — All
limited law student practice in conjunction with Rule 138-A criminal actions either commenced by complaint or by
of the Rules of Court (Law Student Practice Rule) should information shall be prosecuted under the direction and
take precedence over the ruling of the Court laid down in control of the fiscal.
Cantimbuhan (1983). • xxx xxx xxx
• SEC. 15. Intervention of the offended party in criminal
Held: action. — Unless the offended party has waived the civil
• Petitioner expressly anchored his appearance on Section 34 of action or expressly reserved the right to institute it separately
Rule 138. The court a quo must have been confused by the fact from the criminal action, and subject to the provisions of
that petitioner referred to himself as a law student in his entry of section 4 hereof, he may intervene, personally or by attorney,
appearance. Rule 138-A should not have been used by the in the prosecution of the offense.
courts a quo in denying permission to act as private
prosecutor against petitioner for the simple reason that Rule
138-A is not the basis for the petitioner’s appearance. CHAPTER 3
• Section 34, Rule 138 is clear that appearance before the Solicitation of legal services
inferior courts by a non-lawyer is allowed, irrespective of
whether or not he is a law student. As succinctly clarified in Code of Professional Responsibility
Bar Matter No. 730, by virtue of Section 34, Rule 138, a law • CANON 2 - A LAWYER SHALL MAKE HIS LEGAL
student may appear, as an agent or a friend of a party SERVICES AVAILABLE IN AN EFFICIENT AND
litigant, without the supervision of a lawyer before inferior CONVENIENT MANNER COMPATIBLE WITH THE
courts. - Cruz v. Mina GR no. 154207 April 27, 2007 INDEPENDENCE, INTEGRITY AND EFFECTIVENESS OF
THE PROFESSION.
Fiscal’s role when there is a private prosecutor
• Rule 2.01 - A lawyer shall not reject, except for valid reasons, the
• The permission of the fiscal is not necessary for one to cause of the defenseless or the oppressed.
enter his appearance as private prosecutor. In the first place,
the law does not impose this condition. What the fiscal can do, • Rule 2.02 - In such cases, even if the lawyer does not accept a
if he wants to handle the case personally is to disallow the private case, he shall not refuse to render legal advice to the person
prosecutor's participation, whether he be a lawyer or not, in the concerned if only to the extent necessary to safeguard the latter's
trial of the case. On the other hand, if the fiscal desires the active rights.
participation of the private prosecutor, he can just manifest to the
court that the private prosecutor, with its approval, will conduct • Rule 2.03 - A lawyer shall not do or permit to be done any act
the prosecution of the case under his supervision and control. – designed primarily to solicit legal business.
Cantimbuhan v. Hon. Cruz, Jr., G.R. No. L-51813-14 November
29, 1983 • Rule 2.04 - A lawyer shall not charge rates lower than those
customarily prescribed unless the circumstances so warrant.
CANON 3 - A LAWYER IN MAKING KNOWN HIS LEGAL
SERVICES SHALL USE ONLY TRUE, HONEST, FAIR,
DIGNIFIED AND OBJECTIVE INFORMATION OR • RULE 1.03. A LAWYER SHALL NOT, FOR ANY CORRUPT
STATEMENT OF FACTS. MOTIVE OR INTEREST, ENCOURAGE ANY SUIT OR
PROCEEDING OR DELAY ANY MAN’S CAUSE.
• Rule 3.01 - A lawyer shall not use or permit the use of any false,
fraudulent, misleading, deceptive, undignified, self-laudatory or • This rule proscribes “ambulance chasing” (the solicitation of
unfair statement or claim regarding his qualifications or legal almost any kind of legal business by an attorney, personally or
services. through an agent in order to gain employment) as a measure to
protect the community from barratry and champerty. -
• Rule 3.02 - In the choice of a firm name, no false, misleading or Linsangan v. Atty. Tolentino, A.C. No. 6672, September 4, 2009
assumed name shall be used. The continued use of the name of a
deceased partner is permissible provided that the firm indicates in Do not “pirate” a client
all its communications that said partner is deceased. • CANON 8 - A LAWYER SHALL CONDUCT HIMSELF WITH
COURTESY, FAIRNESS AND CANDOR TOWARDS HIS
• Rule 3.03 - Where a partner accepts public office, he shall PROFESSIONAL COLLEAGUES, AND SHALL AVOID
withdraw from the firm and his name shall be dropped from the HARASSING TACTICS AGAINST OPPOSING COUNSEL.
firm name unless the law allows him to practice law currently. • Rule 8.02 - A lawyer shall not, directly or indirectly, encroach
upon the professional employment of another lawyer, however, it
• Rule 3.04 - A lawyer shall not pay or give anything of value to
is the right of any lawyer, without fear or favor, to give proper
representatives of the mass media in anticipation of, or in return
for publicity to attract legal business. advice and assistance to those seeking relief against unfaithful or
neglectful counsel.
Rule 138
The following elements distinguish the legal profession from a
• Sec. 27. Attorneys removed or suspended by Supreme Court on
business:
what grounds. - A member of the bar may be removed or
1. A duty of public service, of which the emolument is a by-
suspended from his office as attorney by the Supreme Court for
product, and in which one may attain the highest eminence
any deceit, malpractice, or other gross misconduct in such office,
without making much money;
grossly immoral conduct, or by reason of his conviction of a
2. A relation as an “officer of the court” to the administration of
crime involving moral turpitude, or for any violation of the oath
justice involving thorough sincerity, integrity and reliability;
which he is required to take before admission to practice, or for a
3. A relation to clients in the highest degree of fiduciary;
wilfull disobedience of any lawful order of a superior court, or for
4. A relation to colleagues at the bar characterized by candor,
corruptly or wilfully appearing as an attorney for a party to a case
fairness, and unwillingness to resort to current business
without authority so to do. The practice of soliciting cases at
methods of advertising and encroachment on their practice, or
law for the purpose of gain, either personally or through paid
dealing directly with their clients.
agents or brokers, constitutes malpractice.
- Atty. Khan Jr. v. Atty. Simbillo, A.C. No. 5299, August 19,
2003
Rule 2.03 should be read in connection with Rule 1.03 of the CPR
General rule
• Rule 2.03 - A lawyer shall not do or permit to be done any act
• Hence, lawyers are prohibited from soliciting cases for the
designed primarily to solicit legal business.
purpose of gain, either personally or through paid agents or
brokers. Such actuation constitutes malpractice, a ground for of action, but no means with which to pay for legal services
disbarment. - Linsangan v. Atty. Tolentino, A.C. No. 6672, unless he can, with the sanction of law, make a contract for a
September 4, 2009 contingent fee to be paid out of the proceeds of litigation.
• “Solicitation or obtaining of professional employment by any Oftentimes, the contingent fee arrangement is the only means by
means of communication." - Geffen v. Moss, 53 Cal.App.3d 215, which the poor clients can have their rights vindicated and
125 Cal.Rptr. 687 [1975] upheld."
• As long as the lawyer does not exert undue influence on his
Solicitation or Ambulance chasing client, that no fraud is committed or imposition applied, or that
• We need not labor the point that solicitation or ambulance the compensation is clearly not excessive as to amount to
chasing, so-called, either directly or indirectly through the extortion, a contract for contingent fee is valid and enforceable. –
services of runners or others, is conduct which is reprehensible Fabillo v. IAC G.R. No. L-68838 March 11, 1991
and inimicable to the traditions and best interests of the legal
profession. Not only does it provoke derision and disrespect in Acceptance fee
the eyes of the public, but it is an overreaching of the other • An acceptance fee is not a contingent fee, but is an absolute fee
members of the profession who adhere to the standards fixed by arrangement which entitles a lawyer to get paid for his efforts
canons of ethics and the dictates of good conscience. To permit regardless of the outcome of the litigation. - Yu v. Bondal, A.C.
such conduct to continue undeterred could only result in No. 5534, January 17, 2005
unsavory competitions and consequences materially • Touters - someone who advertises for customers in an especially
detrimental to the dignity and honor of the legal profession as brazen way.
a whole. - In re Krasner 204 N.E.2d 10 (1965)
• Common barratry consisting of frequently stirring up suits and
Ambulance chasing quarrels between individuals.
• This rule proscribes “ambulance chasing” (the solicitation of
Only way to announce legal service
almost any kind of legal business by an attorney, personally or
• For this reason, lawyers are only allowed to announce their
through an agent in order to gain employment) as a measure to
services by publication in reputable law lists or use of simple
protect the community from barratry and champerty. - Linsangan
professional cards. - Linsangan v. Atty. Tolentino, A.C. No. 6672,
v. Atty. Tolentino, A.C. No. 6672, September 4, 2009
September 4, 2009
• Nonetheless, the solicitation of legal business is not altogether
Champertous contract
proscribed. However, for solicitation to be proper, it must be
• Champerty n. an agreement between the party suing in a lawsuit
compatible with the dignity of the legal profession. If it is
(plaintiff) and another person, usually an attorney, who agrees to
made in a modest and decorous manner, it would bring no
finance and carry the lawsuit in return for a percentage of the
injury to the lawyer and to the bar. - Atty. Khan Jr. v. Atty.
recovery (money won and paid.) In Common Law this was
Simbillo, A.C. No. 5299, August 19, 2003
illegal on the theory that it encouraged lawsuits.
• For this reason, lawyers are only allowed to announce their
Contingent fee is valid services by publication in reputable law lists or use of simple
• Contingent fee contracts are permitted in this jurisdiction professional cards.Linsangan v. Atty. Tolentino, A.C. No. 6672,
because they redound to the benefit of the poor client and the September 4, 2009
lawyer "especially in cases where the client has meritorious cause
• Professional calling cards may only contain the following principally for other purposes. For that reason, a lawyer may not
details: properly publish his brief biographical and informative data in a
daily paper, magazine, trade journal or society program. Nor may
1. lawyer’s name; a lawyer permit his name to be published in a law list the
2. name of the law firm with which he is connected; conduct, management, or contents of which are calculated or
3. address; likely to deceive or injure the public or the bar, or to lower
4. telephone number and dignity or standing of the profession. - Atty. Khan Jr. v. Atty.
5. special branch of law practiced. Simbillo, A.C. No. 5299, August 19, 2003
- Linsangan v. Atty. Tolentino, A.C. No. 6672, September 4,
Acceptable publication
2009
• The use of an ordinary simple professional card is also permitted.
Brief biographical and informative data The card may contain only a statement of his name, the name of
• Such data must not be misleading and may include only the the law firm which he is connected with, address, telephone
following: number and special branch of law practiced. The publication of a
1. a statement of the lawyer’s name and the names of his simple announcement of the opening of a law firm or of
professional associates; changes in the partnership, associates, firm name or office
2. addresses, telephone numbers, cable addresses; address, being for the convenience of the profession, is not
3. branches of law practiced; objectionable. - Atty. Khan Jr. v. Atty. Simbillo, A.C. No. 5299,
4. date and place of birth and admission to the bar; August 19, 2003
5. schools attended with dates of graduation, degrees and other
educational distinctions; Telephone directory
6. public or quasi-public offices; • He may likewise have his name listed in a telephone directory but
7. posts of honor; not under a designation of special branch of law. - Atty. Khan
8. legal authorships; Jr. v. Atty. Simbillo, A.C. No. 5299, August 19, 2003
9. legal teaching positions;
10. membership and offices in bar associations and committees Whether or not the firm of Velasquez, Rodriguez, Respicio,
Ramos, Nidea, and Prado may call itself “A law Firm Of St.
thereof, in legal and scientific societies and legal fraternities;
Thomas More and Associate Members”
11. the fact of listings in other reputable law lists;
12. the names and addresses of references; and, • We agree with the OBC. Rule 3.02 is clear. No name not
13. with their written consent, the names of clients regularly belonging to any of the partners or associates may be used in
represented. the firm name for any purpose. In one case, we have ruled that
- Atty. Khan Jr. v. Atty. Simbillo, A.C. No. 5299, August 19, the use of the firm name of a foreign law firm is unethical
2003 because that firm is not authorized to practice law in this
jurisdiction. In this case, “The Law Firm of St. Thomas More
Acceptable law list publication and Associate Members” is not a law firm in this jurisdiction or
• The law list must be a reputable law list published primarily for even in any other jurisdiction. A “St. Thomas More and
that purpose; it cannot be a mere supplemental feature of a paper, Associates” or STMA is in fact the socio-political ministry or the
magazine, trade journal or periodical which is published couples for Christ, a Christian family-renewal community. - PP v.
Gonzalez, Jr., G.R. No. 139542 June 10, 2003
Front
• To appellate to the name of the lawyers “The Law Firm of St.

Thomas More and Associate Members” indeed appears
misleading. It implies that St. Thomas More is a Law Firm NICOMEDES TOLENTINO

when in fact it is not it would also convey to the public the LAW OFFFICE

impression that the lawyers are members of the law firm which CONSULTANCY & MARITIME SERVICES

does not exist. To the public, it would seem that the purpose or W/ FINANCIAL ASSISTANCE

intention of adding “The Law Firm of St. Thomas More and

Associates Members” is to bask in the name of a Saint, Fe Marie L. Labiano


although that may not really, be the purpose or intention of the Paralegal
lawyers. The appellation only tends to confuse the public and in
a way demean both the saints and the legal profession whose 1st MIJI Mansion, 2nd Flr. Rm. M-01 Tel: 362-7820
members must depend on their own name and record and merit 6th Ave., cor M.H. Del Pilar Fax: (632) 362-7821
and not on the name/glory of other persons living or dead. – PP v.
Grace Park, Caloocan City Cel.: (0926) 2701719
Gonzalez, Jr., G.R. No. 139542 June 10, 2003


Philippine Daily Inquirer, which reads: Back

SERVICES OFFERED:
“ANNULMENT OF MARRIAGE Specialist 532-4333/521-2667.”
CONSULTATION AND ASSISTANCE

- Atty. Khan Jr. v. Atty. Simbillo, A.C. No. 5299, August 19, TO OVERSEAS SEAMEN
2003 REPATRIATED DUE TO ACCIDENT,

INJURY, ILLNESS, SICKNESS, DEATH

AND INSURANCE BENEFIT CLAIMS

• Thus, the use of simple signs stating the name or names of the ABROAD.

lawyers, the office and residence address and fields of practice, as


well as advertisement in legal periodicals bearing the same brief • Complainant alleged that respondent, with the help of paralegal
data, are permissible. Even the use of calling cards is now Fe Marie Labiano, convinced his clients to transfer legal
acceptable. Publication in reputable law lists, in a manner representation. Respondent promised them financial assistance
consistent with the standards of conduct imposed by the canon, of and expeditious collection on their claims. To induce them to hire
brief biographical and informative data is likewise allowable. - his services, he persistently called them and sent them text
Atty. Khan Jr. v. Atty. Simbillo, A.C. No. 5299, August 19, 2003 messages.

• To support his allegations, complainant presented the sworn


affidavit of James Gregorio attesting that Labiano tried to prevail
Calling card of Atty. Tolentino upon him to sever his lawyer-client relations with complainant
and utilize respondent’s services instead, in exchange for a loan
of P50,000.
• Moreover, by engaging in a money-lending venture with his the United States. The emphasis of this relatively uninformative
clients as borrowers, respondent violated Rule 16.04: fact is at least bad taste. - In re: R.M.J. 455 U.S. 191 [1982]

• Rule 16.04 – A lawyer shall not borrow money from his client Including a government lawyer in a business card
unless the client’s interests are fully protected by the nature • Thus, while he may not be actually and directly employed with
of the case or by independent advice. Neither shall a lawyer the firm, the fact that his name appears on the calling card as a
lend money to a client except, when in the interest of justice, partner in the Baligod, Gatdula, Tacardon, Dimailig & Celera
he has to advance necessary expenses in a legal matter he is Law Offices give the impression that he is connected therein and
handling for the client. - Linsangan v. Atty. Tolentino, A.C. No. may constitute an act of solicitation and private practice which is
6672, September 4, 2009 declared unlawful under Republic Act No. 6713. - Samonte v.
Atty. Gatdula A.M. No. P-99-1292 [1999]
• The rule is that a lawyer shall not lend money to his client. The
only exception is, when in the interest of justice, he has to
A verified complaint, sought to enjoin Juan G. Collas, Jr. and
advance necessary expenses (such as filing fees, stenographer’s
nine other lawyers from practicing law under the name of Baker
fees for transcript of stenographic notes, cash bond or premium
& McKenzie, a law firm organized in Illinois
for surety bond, etc.) for a matter that he is handling for the
• We hold that Baker & McKenzie, being an alien law firm, cannot
client.
practice law in the Philippines (Sec. 1, Rule 138, Rules of Court).
• The rule is intended to safeguard the lawyer’s independence of As admitted by the respondents in their memorandum, Baker &
mind so that the free exercise of his judgment may not be McKenzie is a professional partnership organized in 1949 in
adversely affected. It seeks to ensure his undivided attention to Chicago, Illinois with members and associates in 30 cities around
the case he is handling as well as his entire devotion and fidelity the world. Respondents, aside from being members of the
to the client’s cause. - Linsangan v. Atty. Tolentino, A.C. No. Philippine bar, practicing under the firm name of Guerrero &
6672, September 4, 2009 Torres, are members or associates of Baker &Mckenzie. -
Dacanay v. Baker & McKenzie, et. al. Adm. Case No. 2131
Lending money to client [1985]
• If the lawyer lends money to the client in connection with the • As pointed out by the Solicitor General, respondents' use of the
client’s case, the lawyer in effect acquires an interest in the firm name Baker & McKenzie constitutes a representation that
subject matter of the case or an additional stake in its outcome. being associated with the firm they could "render legal services of
Either of these circumstances may lead the lawyer to consider his the highest quality to multinational business enterprises and
own recovery rather than that of his client, or to accept a others engaged in foreign trade and investment“. This is unethical
settlement which may take care of his interest in the verdict to the because Baker & McKenzie is not authorized to practice law
prejudice of the client in violation of his duty of undivided here. - Dacanay v. Baker & McKenzie, et. al. Adm. Case No.
fidelity to the client’s cause. - Linsangan v. Atty. Tolentino, A.C. 2131 [1985]
No. 6672, September 4, 2009
Director of Religious Affairs v. Bayot, A.C. No. L-1117, March
Uninformative fact 20, 1944
• Somewhat more troubling is appellant's listing, in large capital
letters, that he was a member of the Bar of the Supreme Court of • Sunday Tribune of June 13, 1943, which reads as follows:
Marriage license promptly secured thru our assistance & the
annoyance of delay or publicity avoided if desired, and Volunteer [legal] advice is malpractice
marriage arranged to wishes of parties. Consultation on any • It is unprofessional for a lawyer to volunteer advice to bring a
matter free for the poor. Everything confidential. lawsuit, except in rare cases where ties of blood, relationship
or trust make it his duty to do so. Stirring up strife and
Legal assistance service litigation is not only unprofessional, but it is indictable at
12 Escolta, Manila, Room, 105 common law. - Canons of Professionals Ethics adopted by the
American Bar Association in 1908 and by the Philippine Bar
Tel. 2-41-60. Association in 1917. Canons 27 and 28 of the Code of Ethics - In
re: Tagorda, 53 Phil. 37 (1929)

Your best advertisement as a lawyer


• We repeat, the canon of the profession tell us that the best
Admonition to a young lawyer advertising possible for a lawyer is a well-merited reputation
• "The most worth and effective advertisement possible, even for a for professional capacity and fidelity to trust, which must be
young lawyer, . . . is the establishment of a well-merited earned as the outcome of character and conduct.
reputation for professional capacity and fidelity to trust. This • Good and efficient service to a client as well as to the community
cannot be forced but must be the outcome of character and has a way of publicizing itself and catching public attention. That
conduct.“ - Director of Religious Affairs v. Bayot, A.C. No. L- publicity is a normal by-product of effective service which is
1117, March 20, 1944 right and proper. A good and reputable lawyer needs no artificial
stimulus to generate it and to magnify his success. He easily sees
the difference between a normal by-product of able service and
Unacceptable advertisement the unwholesome result of propaganda. - Ulep vs. Legal Clinic
LUIS B. TAGORDA 223 SCRA 378
Attorney
Prohibited advertisement or solicitation In re: Tagorda, 53 Phil.
Notary Public 37 (1929)
• But solicitation of business by circulars or advertisements, or by
CANDIDATE FOR THIRD MEMBER personal communications or interview not warranted by
Province of Isabela personal relations,is unprofessional.
• It is equally unprofessional to procure business by indirection
(NOTE. — As notary public, he can execute for you a deed of sale through toutersof any kind, whether allied real estate firms or
for the purchase of land as required by the cadastral office; can renew trust companies advertising to secure the drawing of deeds or
lost documents of your animals; can make your application and final wills or offering retainers in exchange for executorships or
requisites for your homestead; and can execute any kind of affidavit. trusteeships to be influenced by the lawyer.
As a lawyer, he can help you collect your loans although long • Indirect advertisement for business by furnishing or inspiring
overdue, as well as any complaint for or against you. Come or write newspaper comments concerning the manner of their conduct,
to him in his town, Echague, Isabela. He offers free consultation, and the magnitude of the interest involved, the importance of the
is willing to help and serve the poor.) lawyer's position, and all other like self-laudation, defy the
traditions and lower the tone of our high calling, and are Rule 3.02 - In the choice of a firm name, no false, misleading or
intolerable. assumed name shall be used. Xxx.

Best mode of advertisement CHAPTER 4


• The most worthy and effective advertisement possible, even for a Attorney’s fees and Compensation for legal services
young lawyer, and especially with his brother lawyers, is the
establishment of a well-merited reputation for professional CANON 20 - A LAWYER SHALL CHARGE ONLY FAIR AND
capacity and fidelity to trust. This cannot be forced, but must be REASONABLE FEES.
the outcome of character and conduct. - In re: Tagorda, 53 • Rule 20.01 - A lawyer shall be guided by the following
Phil. 37 (1929) factors in determining his fees:
• (a) the time spent and the extent of the service rendered or
Law firm with a foreign lawyer as partner required;
• In the year 1904 he made an arrangement with the defendant Ney, • (b) the novelty and difficulty of the questions involved;
a practicing attorney, to carry on business together, sending out a • (c) The importance of the subject matter;
circular signed "Ney & Bosque," stating that they had • (d) The skill demanded;
established an office for the general practice of law in all the
• (e) The probability of losing other employment as a result of
courts of the Islands and that Bosque would devote himself
acceptance of the proffered case;
especially to consultation and office work relating to Spanish
• (f) The customary charges for similar services and the schedule
law. The paper was headed "Law Office - Ney & Bosque. Juan G.
Bosque, jurisconsultoespañol - C.W. Ney, abogadoamericano." of fees of the IBP chapter to which he belongs;
• Since that time the defendant Bosque has not personally appeared • (g) The amount involved in the controversy and the benefits
in the courts, and with one exception, occuring through an resulting to the client from the service;
inadvertance, papers from the office were signed not with the • (h) The contingency or certainty of compensation;
firm name alone nor with any designation of the firm as • (i) The character of the employment, whether occasional or
attorneys, but with the words "Ney & Bosque - C.W. Ney, established; and
abogado.“ - U.S. vs. Ney and Bosque, 8 Phil. 146 (1907) • (j) The professional standing of the lawyer.

• Moreover the firm circular in setting forth the establishment of an • Rule 20.02 - A lawyer shall, in case of referral, with the
office for the general practice of law in all the courts of the consent of the client, be entitled to a division of fees in
Islands, amounted to an assertion of his right and purpose, not proportion to the work performed and responsibility assumed.
effectively qualified by the addition that he would devote • Rule 20.03 - A lawyer shall not, without the full knowledge
himself to consultation and office work relating to Spanish and consent of the client, accept any fee, reward, costs,
law. commission, interest, rebate or forwarding allowance or other
compensation whatsoever related to his professional employment
• Rule 3.01 - A lawyer shall not use or permit the use of any false,
from anyone other than the client.
fraudulent, misleading, deceptive, undignified, self-laudatory or
unfair statement or claim regarding his qualifications or legal • Rule 20.04 - A lawyer shall avoid controversies with clients
services. concerning his compensation and shall resort to judicial action
only to prevent imposition, injustice or fraud.
1) to the importance of the subject matter of the
Bases for just compensation controversy,
• With his capital consisting of his brains and with his skill 2) the extent of the services rendered, and
acquired at tremendous cost not only in money but in 3) the professional standing of the attorney.
expenditure of time and energy, he is entitled to the protection
of any judicial tribunal against any attempt on the part of his • No court shall be bound by the opinion of attorneys as expert
client to escape payment of his just compensation.– Masmud v. witnesses as to the proper compensation, but may disregard
NLRC, G.R. No. 183385, February 13, 2009 such testimony and base its conclusion on its own professional
knowledge. A written contract for services shall control the
Professional fee is subject to court’s regulatory power amount to be paid therefor unless found by the court to be
• Upon taking his attorney’s oath as an officer of the court, a unconscionable or unreasonable.
lawyer submits himself to the authority of the courts to
regulate his right to charge professional fees. –Rayos v. Atty. • Section 25, Rule 138 of the Rules of Court:
Hernandez, G.R. No. 169079, February 12, 2007
• SEC. 25. Unlawful retention of client’s funds; contempt — When
Reasons why lawyer’s compensation is subject to the supervision an attorney unjustly retains in his hands money of his client
of the court after it has been demanded he may be punished for contempt as
• It follows that a lawyer’s compensation for professional an officer of the Court who has misbehaved in his official
services rendered is subject to the supervision of the court, not transactions; but proceedings under this section shall not be a
just to guarantee that the fees he charges and receives remain bar to a criminal prosecution.
reasonable and commensurate with the services rendered, but also
to maintain the dignity and integrity of the legal profession to Rule on division of legal fees
which he belongs. – Rayos v. Atty. Hernandez, G.R. No. 169079, • Rule 9.02 - A lawyer shall not divide or stipulate to divide a
February 12, 2007 fee for legal services with persons not licensed to practice law,
except:
Collection suit should be the last resort • (a) Where there is a pre-existing agreement with a partner or
• Rule 20.4 of the Code of Professional Responsibility advises associate that, upon the latter's death, money shall be paid over a
lawyers to avoid controversies with clients concerning their reasonable period of time to his estate or to persons specified in
compensation and to resort to judicial action only to prevent the agreement; or
imposition, injustice or fraud. Suits to collect fees should be • (b) Where a lawyer undertakes to complete unfinished legal
avoided and should be filed only when circumstances force business of a deceased lawyer; or
lawyers to resort to it. - Pineda v. Atty. De Jesus, et. al. G.R. No. • (c) Where a lawyer or law firm includes non-lawyer
155224 August 23, 2006 employees in a retirement plan even if the plan is based in whole
Rule 138 or in part, on a profit sharing agreement.
• Sec. 24. Compensation of attorneys; agreement as to fees. -
An attorney shall be 0entitled to have and recover from his client CANON 16 - A LAWYER SHALL HOLD IN TRUST ALL
no more than a reasonable compensation for his services, with MONEYS AND PROPERTIES OF HIS CLIENT THAT MAY
a view: COME INTO HIS PROFESSION.
• Rule 16.01 - A lawyer shall account for all money or property Whether or not an attorney who was engaged on a contingent fee
collected or received for or from the client. basis may, in order to collect his fees, prosecute an appeal despite
• Rule 16.02 - A lawyer shall keep the funds of each client his client's refusal to appeal the decision of the trial court.
separate and apart from his own and those of others kept by him. • A practicing attorney, entered into a written agreement with
• Rule 16.03 - A lawyer shall deliver the funds and property of the private respondent to appear as her counsel in a petition for
his client when due or upon demand. However, he shall have a probate of the holographic will. Under the will, a piece of real
lien over the funds and may apply so much thereof as may be property at Sales Street, Quiapo, Manila, was bequeathed to
necessary to satisfy his lawful fees and disbursements, giving private respondent. It was agreed that the attorney’s contigent fee
notice promptly thereafter to his client. He shall also have a lien would be thirty-five per cent (35%) of the property that private
to the same extent on all judgments and executions he has secured respondent may receive upon the probate of the will.
for his client as provided for in the Rules of Court. • The payment of his fees is contingent and dependent upon
• Rule 16.04 - A lawyer shall not borrow money from his client the successful probate of the holographic will. Since the
unless the client's interest are fully protected by the nature of the petition for probate was dismissed by the lower court, the
case or by independent advice. Neither shall a lawyer lend money contingency did not occur. Attorney Leviste is not entitled to his
to a client except, when in the interest of justice, he has to fee. - Leviste v. CA, G.R. No. L-29184 [1989]
advance necessary expenses in a legal matter he is handling for
the client. Is the right of a client to enter into a compromise agreement
• This rule is intended to prevent the lawyer from taking without the consent of his lawyer defeated by a contrary written
advantage of his influence over the client. – Junio v. Atty. contract ?
Grupo, A.C. No. 5020, December 18, 2001 • It appears from the record that on July 31, 1921, the
respondents by means of a written contract, retained the petitioner
Non-payment of loan is a violation of PCR not misappropriation to represent them as their lawyer. The contract fixed the
or embezzlement petitioner's fee at P200 in advance with an additional contigent
• Respondent’s liability is thus not for misappropriation or fee of P1,300. It was also provided in the contract that respondent
embezzlement but for violation of Rule 16.04 of the Code of should not compromise the claim against the defendant in the
Professional Responsibility which forbids lawyers from case without express consent of his lawyer.
borrowing money from their clients unless the latter’s interests • Through the sole effort of respondents the case was dismissed
are protected by the nature of the case or by independent without notice to their counsel.
advice. In this case, respondent’s liability is compounded by the
fact that not only did he not give any security for the payment Right of a client to compromise suit
of the amount loaned to him but that he has also refused to • The client has also an undoubted right to compromise a suit
pay the said amount. His claim that he could not pay the loan without the intervention of his lawyer.
“because circumstances . . . did not allow it” and that, because of • Though there is a valid agreement for the payment to the
the passage of time, “he somehow forgot about his obligation” attorney of a large proportion of the sum recovered in case of
only underscores his blatant disregard of his obligation which success this does not give the attorney such an interest in the
reflects on his honesty and candor. cause of action that it prevents plaintiff from compromising the
suit. – Rustia v. The Judge of First Instance of Batangas, G.R.
No. L-19695 November 17, 1922
• We have recently held that a client has always the right to • The recovery of attorney’s fees on this basis is permitted, as
settle his cause of action and stop litigation at any stage of the in this case, where there is no express agreement for the payment
proceeding, subject, however, to the right of the attorney to of attorney’s fees. Basically, it is a legal mechanism which
receive compensation for services rendered. - Aro v. The Hon. prevents an unscrupulous client from running away with the
Nañawa, G.R. No. L-24163 [1969] fruits of the legal services of counsel without paying for it. In
the same vein, it avoids unjust enrichment on the part of the
Applies only in civil cases lawyer himself. - Pineda v. Atty. De Jesus, et. al. G.R. No.
• Rule 1.04 - A lawyer shall encourage his clients to avoid, end 155224 August 23, 2006
or settle a controversy if it will admit of a fair settlement.
When is Quantum meruit authorized
Limitation of client’s right to compromise suit • (1) there is no express contract for payment of attorney's fees
• While We here reaffirm the rule that "the client has an agreed upon between the lawyer and the client;
undoubted right to compromise a suit without the intervention of • (2) when although there is a formal contract for attorney's
his lawyer", We hold that when such compromise is entered into fees, the fees stipulated are found unconscionable or unreasonable
in fraud of the lawyer, with intent to deprive him of the fees by the court; and
justly due him, the compromise must be subject to the said fees, • (3) when the contract for attorney's fee's is void due to purely
and that when it is evident that the said fraud is committed in formal defects of execution;
confabulation with the adverse party who had knowledge of the • (4) when the counsel, for justifiable cause, was not able to
lawyer's contingent interest or such interest appears of record and finish the case to its conclusion;
who would benefit under such compromise, the better practice • (5) when lawyer and client disregard the contract for
is to settle the matter of the attorney's fees in the same attorney's fees, - Rilloza, et. al. v. Eastern Telecommunications
proceeding, after hearing all the affected parties and without Phils., Inc., G.R. No. 104600 [1999]
prejudice to the finality of the compromise in so far as it does not
adversely affect the rights of the lawyer. - Aro v. The Hon. Factors for application of quantum meruit
Nañawa, G.R. No. L-24163 [1969] • In fixing a reasonable compensation for the services rendered
by a lawyer on the basis of quantum meruit, factors such as the
Quantum meruit time spent, and extent of services rendered; novelty and difficulty
• The principle of quantum meruit (as much as he deserves) of the questions involved; importance of the subject matter; skill
may be a basis for determining the reasonable amount of demanded; probability of losing other employment as a result of
attorney’s fees. acceptance of the proferred case; customary charges for similar
• Quantum meruit is a device to prevent undue enrichment services; amount involved in the controversy and the benefits
based on the equitable postulate that it is unjust for a person to resulting to the client; certainty of compensation; character of
retain benefit without paying for it. It is applicable even if there employment; and professional standing of the lawyer, may be
was a formal written contract for attorney’s fees as long as the considered. (Atty. Orocio v. Angulan et. al., G.R. No. 179892-93,
agreed fee was found by the court to be unconscionable. - Atty. January 30, 2009)
Orocio v. Angulan et. al., G.R. No. 179892-93, January 30, 2009
The court shall fix the amount
2 purposes of application Quantum meruit
• In fixing a reasonable compensation for the services rendered attorney has agreed to carry on the action at his own expense in
by a lawyer on the basis of quantum meruit, the elements to be consideration of some bargain to have part of the thing in dispute
considered are generally [See Sampliner v. Motion Pictures Patents Co., et al., 255 F. 242
(1) the importance of the subject matter in controversy, (1918)]. The execution of these contracts violates the fiduciary
(2) the extent of services rendered, and relationship between the lawyer and his client, for which the
(3) the professional standing of the lawyer. former must incur administrative sanctions. - Atty. Orocio v.
Angulan et. al., G.R. No. 179892-93, January 30, 2009
• A determination of these factors would indispensably require
nothing less than a full-blown trial where private respondents can Funding litigation
adduce evidence to establish the right to lawful attorney's fees • “[A]s long as litigation and access to the courts remain
and for petitioner to oppose or refute the same. The trial court expensive, then anyone who has a right that stands in need of
has the principal task of fixing the amount of attorney's fees. vindication should be able to obtain funding from anyone
Hence, the necessity of a hearing is beyond cavil. -Rilloza, et. al. willing to offer it and on whatever terms it is offered.”
v. Eastern Telecommunications Phils., Inc., G.R. No. 104600 - Neuberger, From Barretry, Maintenance and Champerty to
[1999] Litigation Funding, Speech at Gray’s Inn, May 8, 2013.

Champertous contract Pay the law firm not the handling lawyer
• "1. On all commission or attorney’s fees that we shall receive • When a client employs the services of a law firm, he does not
from our clients by virtue of the collection that we shall be able to employ the services of the lawyer who is assigned to personally
effect on their accounts, we shall divide fifty-fifty. Likewise you handle the case. Rather, he employs the entire law firm. In the
are entitled to commission, 50/50 from domestic, inheritance and event that the counsel appearing for the client resigns, the firm is
commercial from our said clients or in any criminal cases where bound to provide a replacement.
they are involved.” - Rilloza, et. al. v. Eastern Telecommunications Phils., Inc., G.R.
• We hold that the said agreement is void because it was No. 104600 [1999]
tantamount to malpractice which is "the practice of soliciting
cases at law for the purpose of gain, either personally or through Retaining lien
paid agents or brokers" Sec. 27, Rule 138, Rules of Court). • Rule 138 Sec. 37. Attorney's liens. — An attorney shall have
Malpractice ordinarily refers to any malfeasance or dereliction of a lien upon the funds, documents and papers of his client,
duty committed by a lawyer. Section 27 gives a special and which have lawfully come into his possession and may retain
technical meaning to the term "malpractice" (Act No. 2828, the same until his lawful fees and disbursements have been
amending sec. 21 of Act No. 190). – Tan Tek Beng v. David, A.C. paid, and may apply such funds to the satisfaction thereof. He
No. 1261. December 29, 1983 shall also have a lien to the same extent upon all judgments for
the payment of money, and executions issued in pursuance of
Agreement to pay all expenses of proceedings such judgments, which he has secured in a litigation of his client,
• An agreement whereby an attorney agrees to pay expenses of from and after the time when he shall have caused a statement of
proceedings to enforce the client's rights is champertous [JBP his claim of such lien to be entered upon the records of the court
Holding Corp. v. U.S. 166 F. Supp. 324 (1958)]. Such agreements rendering such judgment, or issuing such execution, and shall
are against public policy especially where, as in this case, the have caused written notice thereof to be delivered to his client
and to the adverse party; and he shall have the same right and 6. the professional character and social standing of the attorney;
power over such judgments and executions as his client would 7. the results secured; and
have to enforce his lien and secure the payment of his just fees 8. whether or not the fee is absolute or contingent, it being a
and disbursements." recognized rule that an attorney may properly charge a much a larger
fee when it is to be contingent that when it is not.
Charging lien 9. The financial ability of the defendant may also be considered not
• Rule 138 Section 37. xxx He shall also have a lien to the same to enhance the amount above a reasonable compensation, but to
extent upon all judgments for the payment of money, and determine whether or not he is able to pay a fair and just
executions issued in pursuance of such judgments, which he compensation for the services rendered, or as incident in ascertaining
has secured in a litigation of his client, from and after the time the importance and gravity of the interests involved in the litigation.
when he shall have caused a statement of his claim of such lien to
be entered upon the records of the court rendering such judgment, Forum does not qualify payment of compensation
or issuing such execution, and shall have caused written notice • We have noted in the beginning that the services here were
thereof to be delivered to his client and to the adverse party; and rendered in a case of an administrative nature. But that does not
he shall have the same right and power over such judgments and alter the application of the proper rule:
executions as his client would have to enforce his lien and secure
the payment of his just fees and disbursements." Professional services, to prepare and advocate just claims for
compensation, are as legitimate as services rendered in court in
There must be a favorable judgment arguing a cause to convince a court or jury that the claim presented or
• A charging lien to be enforceable as security for the payment the defense set up against a claim presented by the other party ought
of attorney's fees requires as a condition sine qua non a judgment to be allowed or rejected. Parties in such cases require advocates; and
for money and execution in pursuance of such judgment secured the legal profession must have a right to accept such employment
in the main action by the attorney in favor of his client. A and to receive compensation for their services. – De Guzman v.
charging lien presupposes that the attorney has secured a Visayan Rapid Transport Co. Inc. G.R. No. 46396 September
favorable money judgment for his client. - Rilloza, et. al. v. 30, 1939
Eastern Telecommunications Phils., Inc., G.R. No. 104600
[1999] Written contract is not required to prove lawyer-client
relationship
The following are the circumstances to be considered in • The absence of a written contract will not preclude the finding
determining the compensation of an attorney that there was a professional relationship which merits attorney's
1. the amount and character of the services rendered; fees for professional services rendered. Documentary formalism
2. the labor, time, and trouble involved; is not an essential element in the employment of an attorney; the
3. the nature and importance of the litigation or business in which the contract may be express or implied. To establish the relation, it is
services were rendered; the responsibility imposed; sufficient that the advice and assistance of an attorney is
4. the amount of money or the value of the property affected by the sought and received in any matter pertinent to his profession.
controversy, or involved in the employment, An acceptance of the relation is implied on the part of the
5. the skill and experience called for in the performance of the attorney from his acting on behalf of his client in pursuance of a
services;
request from the latter. - Dee vs. Court of Appeals, G.R. No. administering justice. When they took their oath, they submitted
77439, August 24, 1989 themselves to the authority of the Court and subjected their
professional fees to judicial control. – Pineda v. Atty. De Jesus,
Options to enforce right to professional fees et. al. G.R. No. 155224 August 23, 2006
• A lawyer may enforce his right to his fees by filing the
necessary petition as an incident of the main action in which his Contingent fee agreement does not violate Article 1491(5) of the
services were rendered or in an independent suit against his NCC
client. The former is preferable to avoid multiplicity of suits. - • The contract of services did not violate said provision of law.
Pineda v. Atty. De Jesus, et. al. G.R. No. 155224 August 23, 2006 Article 1491 of the Civil Code, specifically paragraph 5 thereof,
prohibits lawyers from acquiring by purchase even at a public or
Only reason to file suit judicial auction, properties and rights which are the objects of
• Rule 20.4 of the Code of Professional Responsibility advises litigation in which they may take part by virtue of their
lawyers to avoid controversies with clients concerning their profession. The said prohibition, however, applies only if the sale
compensation and to resort to judicial action only to prevent or assignment of the property takes place during the
imposition, injustice or fraud. Suits to collect fees should be pendency of the litigation involving the client's property.
avoided and should be filed only when circumstances force • Hence, a contract between a lawyer and his client stipulating
lawyers to resort to it. - Pineda v. Atty. De Jesus, et. al. G.R. No. a contingent fee is not covered by said prohibition under
155224 August 23, 2006 Article 1491 (5) of the Civil Code because the payment of said
fee is not made during the pendency of the litigation but only
Two commonly accepted concepts of attorney’s fees after judgment has been rendered in the case handled by the
• In its ordinary concept, an attorney’s fee is the reasonable lawyer. In fact, under the 1988 Code of Professional
compensation paid to a lawyer by his client for the legal services Responsibility, a lawyer may have a lien over funds and property
he has rendered to the latter. The basis of this compensation is of his client and may apply so much thereof as may be necessary
the fact of his employment by and his agreement with the client. to satisfy his lawful fees and disbursements. - Fabillo and Tana v.
• In its extraordinary concept, an attorney’s fee is an IAC G.R. No. L-68838 [1991]
indemnity for damages ordered by the court to be paid by the
losing party in a litigation. The basis of this is any of the cases Mere demand for delivery of the litigated property is not
provided by law where such award can be made, such as those unethical
authorized in Article 2208, Civil Code, and is payable not to the • In the instant case, there was no actual acquisition of the
lawyer but to the client, unless they have agreed that the award property in litigation since the respondent only made a written
shall pertain to the lawyer as additional compensation or as part demand for its delivery which the complainant refused to comply.
thereof. - Traders Royal Bank Employees Union-Independent v. Mere demand for delivery of the litigated property does not
NLRC G.R. No. 120592. March 14, 1997 cause the transfer of ownership, hence, not a prohibited
transaction within the contemplation of Article 1491. - Ramos v.
Award of (extraordinary) attorney’s fee is discretionary Atty. Ngaseo, A.C. No. 6210 [2004]
• The power of this Court to reduce or even delete the award
of attorneys’ fees cannot be denied. Lawyers are officers of the Commission/referral fees prohibited
Court and they participate in the fundamental function of
• By openly admitting he divided the Php70,000.00 to other
individuals as commission/referral fees respondent violated Rule Case law
9.02, Canon 9 of the Code of Professional Responsibility which • Mr. Culpepper sent Mr. Cole a letter in which he confirmed
provides that a lawyer shall not divide or stipulate to divide a fee that he would accept the representation on a contingent fee
for legal services with persons not licensed to practice law. - basis of one-third "of whatever additional property or money we
Lijauco v. Atty. Terrado, A.C. No. 6317 [2006] can get for you.
• After negotiation between Mr. Culpepper and counsel for the
CANON 9 - A LAWYER SHALL NOT, DIRECTLY OR estate of Mr. Cole's mother, Mr. Cole was offered property worth
INDIRECTLY, ASSIST IN THE UNAUTHORIZED PRACTICE $21,600.03 over and above what he would have received under
OF LAW. the terms of the decedent's will. Mr. Culpepper thought the
• Rule 9.02 - A lawyer shall not divide or stipulate to divide a compromise was reasonable and recommended to Mr. Cole that
fee for legal services with persons not licensed to practice law, he accept the offer. However, Mr. Cole refused to settle his
except: claim for that amount, believing he was entitled to a larger
• (a) Where there is a pre-existing agreement with a partner or share of his mother's succession as a forced heir. When Mr.
associate that, upon the latter's death, money shall be paid over a Culpepper refused to file suit in the matter, Mr. Cole terminated
reasonable period of time to his estate or to persons specified in his representation.
the agreement; or • Pursuant to the parties' agreement, Mr. Culpepper is entitled
• (b) Where a lawyer undertakes to complete unfinished legal to one-third "of whatever additional property or money" he
business of a deceased lawyer; or obtained on behalf of Mr. Cole. It is undisputed that Mr. Cole
• (c) Where a lawyer or law firm includes non-lawyer recovered no additional property or money as a result of the
employees in a retirement plan even if the plan is based in whole litigation against his mother's estate. Because Mr. Cole obtained
or in part, on a profit sharing agreement. no recovery, it follows that Mr. Culpepper is not entitled to any
contingent fee.
Quality of legal service should not vary if rendered for free • Nonetheless, Mr. Culpepper urges us to find that his
• It is true that he is a court-appointed counsel. But we do say contingency should attach to the settlement offer he obtained on
that as such counsel de oficio, he has as high a duty to the behalf of his client, even though his client refused to accept that
accused as one employed and paid by defendant himself. offer. According to Mr. Culpepper, he did the work for which
Because, as in the case of the latter, he must exercise his best Mr. Cole retained him, and he is therefore entitled to one-third
efforts and professional ability in behalf of the person assigned to of the amount offered in settlement, notwithstanding Mr. Cole's
his care. His is to render effective assistance. The accused rejection of the settlement offer.
defendant expects of him due diligence, not mere perfunctory
representation. We do not accept the paradox that Decision
responsibility is less where the defended party is poor. - In • To allow Mr. Culpepper to recover a contingent fee under
Re: Atty. Adriano, G.R. No. L-26868 [1969] these circumstances would penalize Mr. Cole for exercising his
right to reject the settlement. We find no statutory or
• Rule 14.04 - A lawyer who accepts the cause of a person jurisprudential support for such a proposition. Indeed, this court
unable to pay his professional fees shall observe the same has rejected any interpretation of the Rules of Professional
standard of conduct governing his relations with paying clients.
Conduct which would place restrictions on the client's foreclosed property, as already stated, did not produce the desired
fundamental right to control the case. result because the mortgagee “would not budge anymore” and
• In summary, we find that Mr. Culpepper did not obtain any “would not accept the sum offered.”
recovery on behalf of Mr. Cole. In the absence of a recovery, it • Thus, the respondent concluded that there was, strictly speaking,
follows that Mr. Culpepper cannot collect a contingent fee for his no attorney-client [relationship] existing between them. Rather,
services. - Culpepper v. Cole 929 So.2d 1224 [2006] right from the start[,] everything was sort of personal, he added.
xxx This contention has no merit. - Junio v. Atty. Grupo, A.C. No.
Acceptance fee is not necessary to establish lawyer-client 5020. December 18, 2001
relationship
• A lawyer-client relationship was established from the very Right to a lien versus duty to account
first moment complainant asked respondent for legal advice • Lawyers who convert the funds entrusted to them are in gross
regarding the former’s business. To constitute professional violation of professional ethics and are guilty of betrayal of
employment, it is not essential that the client employed the public confidence in the legal profession. It may be true that
attorney professionally on any previous occasion. It is not they have a lien upon the client’s funds, documents and other
necessary that any retainer be paid, promised, or charged; papers that have lawfully come into their possession; that they
neither is it material that the attorney consulted did not may retain them until their lawful fees and disbursements have
afterward handle the case for which his service had been been paid; and that they may apply such funds to the satisfaction
sought. - Burbe v. Atty. Magulta AC No. 99-634. June 10, 2002 of such fees and disbursements. However, these considerations
do not relieve them of their duty to promptly account for the
“Money down first” policy is unethical moneys they received. Their failure to do so constitutes
• The impropriety lies in the fact that she suggested that professional misconduct. In any event, they must still exert all
complainant borrow money from Domingo Natavio for the effort to protect their client’s interest within the bounds of law. –
payment thereof. This act impresses upon the Court that Burbe v. Atty. Magulta AC No. 99-634. June 10, 2002
respondent would do nothing to the cause of complainant’s
mother-in-law unless payment of the acceptance fee is made. Duty of accounting
Her duty to render legal services to her client with competence • When a lawyer receives money from a client for a
and diligence should not depend on the payment of acceptance particular purpose involving the client-attorney relationship, he
fee. – Ceniza v. Atty. Rubia, A.C. No. 6166, October 2, 2009 is bound to render an accounting to the client showing that the
• I, do solemnly swear that xxx I will delay no man for money money was spent for that particular purpose. If the lawyer does
xxx. not use the money for the intended purpose, he must immediately
return the money to his client. - Navarro & Presbitero, A.C. No.
Establishment of lawyer-client relationship not influenced by 9872, January 28, 2014
personal affiliation
• Respondent takes further refuge in the intimate and close Change of attorney
relationship existing between himself and the complainant’s • Section 26 of Rule 138 of the Revised Rules of Court
family on the basis of which his legal services were purely provides:
gratuitous or “simply an act of a friend for a friend” with “no • "Sec. 26. Change of attorneys -- An attorney may retire at
consideration involved.” Unfortunately, his efforts to redeem the any time from any action or special proceeding, by the written
consent of his client filed in court. He may also retire at any time What is a contingency contract
from an action or special proceeding, without the consent of his • The client and his lawyer may enter into a written contract
client, should the court, on notice to the client and attorney, and whereby the latter would be paid attorney’s fees only if the suit
on hearing, determine that he ought to be allowed to retire. In or litigation ends favorably to the client. This is called a
case of substitution, the name of the attorney newly employed contingency fee contract. The amount of attorney’s fees in this
shall be entered on the docket of the court in place of the former contract may be on a percentage basis, and a much higher
one, and written notice of the change shall be given to the adverse compensation is allowed in consideration of the risk that the
party. lawyer may get nothing if the suit fails.
• In the case at bar, the non-EPIRA separated members and
Withdrawal of counsel petitioner voluntarily entered into a contingency fee contract
• A lawyer may retire at any time from any action or special whereby petitioner did not receive any acceptance fee or
proceeding with the written consent of his client filed in court appearance/meeting fee. - Atty. Orocio v. Angulan et. al., G.R.
and copy thereof served upon the adverse party. Should the No. 179892-93 [2009]
client refuse to give his consent, the lawyer must file an
application with the court. The court, on notice to the client and Why contingency fee is allowed
adverse party, shall determine whether he ought to be allowed to • Contingent fee contracts are permitted in this jurisdiction
retire. The application for withdrawal must be based on a because they redound to the benefit of the poor client and the
good cause. - Orcino v. Atty. Gaspar, A.C. No. 3773. September lawyer “especially in cases where the client has meritorious cause
24, 1997 of action, but no means with which to pay for legal services
unless he can, with the sanction of law, make a contract for a
Grounds for withdrawal contingent fee to be paid out of the proceeds of litigation.
• Respondent's withdrawal was made on the ground that "there Oftentimes, the contingent fee arrangement is the only means by
no longer exist[ed] the xxx confidence" between them and that which the poor clients can have their rights vindicated and
there had been "serious diffferences between them relating to the upheld.”- Atty. Orocio v. Angulan et. al., G.R. No. 179892-93
manner of private prosecution.” - Orcino v. Atty. Gaspar, A.C. [2009]
No. 3773. September 24, 1997
Contingent fee arrangement must be written
Court approval required before counsel can withdraw • It bears to stress that a contingent fee arrangement is valid in
• Assuming, nevertheless, that respondent was justified in this jurisdiction and is generally recognized as valid and binding
terminating his services, he, however, cannot just do so and leave but must be laid down in an express contract. – Felicisima
complainant in the cold unprotected. The lawyer has no right to Mendoza vda. De Robosa v. Atty. Mendoza & Atty. Navarro, Jr.,
presume that his petition for withdrawal will be granted by the A.C. no. 6056, September 09, 2015
court. Until his withdrawal shall have been approved, the lawyer
remains counsel of record who is expected by his client as well as Limitations of a contingency agreement
by the court to do what the interests of his client require. He must • However, in cases where contingent fees are sanctioned by
still appear on the date of hearing for the attorney-client relation law, the same should be reasonable under all the
does not terminate formally until there is a withdrawal of record. circumstances of the case, and should always be subject to the
– Orcino v. Atty. Gaspar, A.C. No. 3773. September 24, 1997 supervision of a court, as to its reasonableness, such that under
Canon 20 of the Code of Professional Responsibility, a lawyer is professional fees. - Atty. Orocio v. Angulan et. al., G.R. No.
tasked to charge only fair and reasonable fees. - Atty. Orocio v. 179892-93 [2009]
Angulan et. al., G.R. No. 179892-93 [2009]
CHAPTER 5
Contingent fee to a witness The lawyer and the “[Law] Firm”
• Witnesses should always testify truthfully and should be free Choice of a Firm name
from any financial inducements that might tempt them to do • Rule 3.02 of the Code of Professional Responsibility which
otherwise. A lawyer should not pay or agree to pay a non- states that “in the choice of a firm name, no false, misleading or
expert witness an amount in excess of reimbursement for assumed name shall be used.”
expenses and financial loss incident to being a witness; • No name not belonging to any of the partners or associates
 however, a lawyer may pay or agree to pay an expert witness a may be used in the firm name for any purpose. - PP v. Gonzalez,
reasonable fee for services as an expert. But in no event should Jr., G.R. No. 139542 June 10, 2003
a lawyer pay or agree to pay a contingent fee to any witness. –
Swafford v. Harris, 967 S.W.2d 319 (1998) Negligence of clerks in a law firm
• Time and again the Court has admonished law firms to
When is an attorney’s fees unconscionable? adopt a system of distributing pleadings and notices, whereby
• Attorney’s fees are unconscionable if they affront one’s sense lawyers working therein receive promptly notices and pleadings
of justice, decency or reasonableness, or if they are so intended for them, so that they will always be informed of the
disproportionate to the value of the services rendered. In such a status of their cases.
case, courts are empowered to reduce the attorney’s fee or fix a • Their Court has also often repeated that the negligence of
reasonable amount thereof taking into consideration the clerks which adversely affect the cases handled by lawyers, is
surrounding circumstances and the established parameters. - Atty. binding upon the latter. - B.R. Sebastian Enterprises, Inc. v. CA,
Orocio v. Angulan et. al., G.R. No. 179892-93 [2009] G.R. No. L-41862 [1992]

Lawyer’s compensation for professional services rendered is Law firm represents the client
subject to the supervision of the court • Respondent judge should not have accommodated so many
• Under Section 24, Rule 138 of the Rules of Court, a written Motions for Postponement filed by the then ailing Atty. Rosendo
contract for services shall control the amount to be paid therefor Castillo Sr. because a law firm (Castillo & Castillo), to which
unless found by the court to be unconscionable or unreasonable. the latter belonged, was really representing the defendants,
• It follows that a lawyer’s compensation for professional there certainly were other competent lawyers who could have
services rendered is subject to the supervision of the court, not handled the matter. – Sps. Reaport v. Judge Mariano, A.M. No.
just to guarantee that the fees he charges and receives remain MTJ-00-1253. July 11, 2001
reasonable and commensurate with the services rendered, but
also to maintain the dignity and integrity of the legal Main and branch office constitute one personality
profession to which he belongs. Upon taking his attorney’s oath • Petitioner's counsel was and is the firm of Ledesma, Saludo
as an officer of the court, a lawyer submits himself to the and Associates (and not any particular member or associate of
authority of the courts to regulate his right to charge that firm) which firm happens to have a main office in Makati
and a branch office in Cebu City. The Court notes that both the
main and branch offices operate under one and the same name, • Rule 18.04 - A lawyer shall keep the client informed of the
Saludo Ledesma and Associates. Having represented itself to status of his case and shall respond within a reasonable time to
the public as comprising a single firm, LSA should not be the client's request for information.
allowed at this point to pretend that its main office and its
branch office in effect constitute separate law firms with Lawyer who has had “significant personal contacts”
separate and distinct personalities and responsibilities. Ouano • A departing lawyer who has had “significant personal contacts”
Arrastre Service Inc. v. Judge Aleonor, G.R. No. 97664 October with the client, should inform the client that the lawyer is
10, 1991 leaving the firm.

Death of a handling lawyer of the firm • Note: this does not mean that an associate who met a client once
• Hence, the death of the latter did not extinguish the lawyer- or twice and has prepared discovery requests has had “significant
client relationship between said firm and petitioner. - B.R. personal contacts” – the standard is that if the client were asked
Sebastian Enterprises, Inc. v. CA, G.R. No. L-41862 [1992] “which lawyer(s) at the firm represents you?” the lawyers
mentioned would be those that have had“significant personal
Duties of Firms and Lawyers When Someone Leaves contacts.”
• A. Ethical Obligation to Communicate to Certain clients
• B. Trust Account Monies Ethical obligations of departing lawyers
• C. Fee Divisions In General • In addition to the ethical obligations departing lawyers have,
• D. Files they also must avoid interfering with the contracts the firm has
• E. Phones with existing clients.
• Partners and Associates Leaving Must Abide By Fiduciary Duties • However, the caution to avoid stealing clients must be
to Firm balanced against the departing lawyer’s ethical obligation to
notify clients that an attorney is departing.
Ethical Obligation to Communicate to Certain Clients
1) lawyers have a duty to tell “their” clients that they are leaving. How to tell clients
2) clients are not chattels – the firm and departing lawyer cannot • The preferred method of advising firm clients about the
decide which clients can stay and which can go – the clients decide. impending departure of an attorney is a joint letter from the
firm and departing lawyer to all clients with whom the lawyer
Rule of confidentiality in a law firm had significant personal contacts.
• Rule 21.04 - A lawyer may disclose the affairs of a client of
the firm to partners or associates thereof unless prohibited by the A letter should advise the clients
client. • When the lawyer is leaving
• The client has the option of going with the lawyer, staying
Duty to notify a client with the firm, or getting a new firm
• “The departing lawyer and responsible members of the law • How any advance fee deposit will be treated
firm who remain have an ethical obligation to assure that prompt • A place for the client to sign and return the letter, with
notice is given to clients on whose active matters she currently is instructions on where their file should go.
working.”
Separate letters may be sent by the lawyer (or the firm) to clients • Model Rule 1.16(d) requires that the client’s interests not be
with whom the departing lawyer had substantial personal contact prejudiced when the attorney/client relationship is terminated.
as long as: Have the client or a runner from the departed lawyer’s new firm
• 1) the letters do not disparage the firm or the lawyer; and sign for the file, if it is going to the new firm.
• 2) the letters do not involve improper solicitation • Also, it is appropriate to request in a litigation matter that the
departed lawyer file a substitution of counsel or at least
Trust Account Monies notification of address change with the court, to assure that the
• Clients that have given the firm an advance fee or advance old firm is still not listed as counsel of record.
cost deposit take the money with them (less earned fees and
costs), if they go with the departing lawyer. While simple in Client’s file = paper and electronic documents
theory, application sometimes can be problematic. • When a client asks for their file, you must give them both the
• The“old” firm should write a check, consistent with the paper and the electronic documents – including emails.
written instructions of the client, to either the client or to the trust • And remember that the client file is client property, so you
account for the departed lawyer’s new firm. cannot charge the client for the cost of downloading
everything to disks….
Fee Divisions In General
• In contingent fee cases where some or much of the work was Phones
performed at the existing firm, but the case is going with the • It is ethically inappropriate to have the receptionist tell
departing lawyer, the firm and lawyer must agree how the callers who are looking for a lawyer who recently left the firm
contingent fee will be apportioned among them, based upon their “we don’t know where he is.” That game is not professional and
respective contributions to the case (i.e., quantum meruit) or not acceptable.
based upon terms in the partnership agreement. • Assure that all staff are instructed to provide the departed
But can a departing lawyer keep all of a contingent fee case that lawyer’s phone number and mailing address.
came into • Also, assign a partner to answer any client inquiries.
the old firm but ultimately settled when the lawyer was at a new • Moreover, mail should be forwarded to the departed lawyer.
firm?
• Probably not, according to several cases. Partners and Associates Leaving Must Abide By Fiduciary
• A lawyer may be entitled to only his partnership portion of Duties to
the fees earned on a case, even if he performed most of the work Firm
after the dissolution of the firm. • It is worth noting again that lawyers who are leaving a firm
• Nevertheless, some courts will find that when a lawyer leaves have certain fiduciary duties to the firm to not interfere with the
a firm and takes a case with him, he may be entitled to the contracts that the firm has with existing clients, to not use firm
quantum meruit value of the work he performed. resources to set up their new firm, and to not attempt to steal
away associates and staff while the lawyers are still working for
Client’s interests not be prejudiced when the attorney/client the firm. - Lynda C. Shely
relationship is terminated
• Do not hold client files hostage, even if the client that is leaving A lawyer whose spouse is associated with a firm representing an
with the lawyer owes the current firm money. opposing party
• [T]he lawyer should advise the client of all circumstances that • Rule 130 Sec. 24.Disqualification by reason of privileged
might cause one to question the undivided loyalty of the law communication. — The following persons cannot testify as to
firm and let the client make the decision as to its employment. If matters learned in confidence:
the client prefers not to employ a law firm containing a lawyer (b) An attorney cannot, without the consent of his client, be
whose spouse is associated with a firm representing an opposing examined as to any communication made by the client to him,
party, that decision should be respected. or his advice given thereon in the course of, or with a view to,
professional employment, nor can an attorney's secretary,
WON the firm of “Velasquez, Rodriguez, Respicio, Ramos, stenographer, or clerk be examined, without the consent of the
Nidea, and Prado”may call itself “A law Firm Of St. Thomas client and his employer, concerning any fact the knowledge of
More and Associate Members”. which has been acquired in such capacity;
• It implies that St. Thomas More is a Law Firm when in fact it is
not it would also convey to the public the impression that the Canon 21 – A lawyer shall preserve the confidence and secrets of his
lawyers are members of the law firm which does not exist. To the client even after the
public, it would seem that the purpose or intention of adding “The attorney-client relation is terminated
Law Firm of St. Thomas More and Associates Members” is to • Rule 21.01 - A lawyer shall not reveal the confidences or
bask in the name of a Saint, although that may not really, be the secrets of his client except;
purpose or intention of the lawyers. The appellation only tends to (a) When authorized by the client after acquainting him of
confuse the public and in a way demean both the saints and the the consequences of the disclosure;
legal profession whose members must depend on their own name (b) When required by law;
and record and merit and not on the name/glory of other persons (c) When necessary to collect his fees or to defend himself,
living or dead. - PP v. Gonzalez, Jr., G.R. No. 139542 June 10, his employees or associates or by judicial action.
2003 • Rule 21.02 - A lawyer shall not, to the disadvantage of his
client, use information acquired in the course of employment, nor
Duties When Switching Firms shall he use the same to his own advantage or that of a third
• Duties of Lawyers Interviewing With Other Firms person, unless the client with full knowledge of the
• Screening an “Infected” Lateral Hire circumstances consents thereto.
• Death of a Lawyer • Rule 21.03 - A lawyer shall not, without the written consent of
his client, give information from his files to an outside agency
CHAPTER 6 seeking such information for auditing, statistical, bookkeeping,
Confidentiality & privilege communications between lawyers and accounting, data processing, or any similar purpose.
clients • Rule 21.04 - A lawyer may disclose the affairs of a client of the
firm to partners or associates thereof unless prohibited by the
CANON 15 - A lawyer shall observe candor, fairness and loyalty client.
in all his dealings and transactions with his clients • Rule 21.05 - A lawyer shall adopt such measures as may be
• Rule 15.02. - A lawyer shall be bound by the rule on required to prevent those whose services are utilized by him, from
privilege communication in respect of matters disclosed to him disclosing or using confidences or secrets of the clients.
by a prospective client. • Rule 21.06 - A lawyer shall avoid indiscreet conversation about
a client's affairs even with members of his family.
• Rule 21.07 - A lawyer shall not reveal that he has been consulted • Any disclosure may waive the attorney/client privilege as to other
about a particular case except to avoid possible conflict of otherwise protected matters; not so with the duty of
interest. confidentiality.
• The privilege applies only to limiting testimony in a legal
Rule 138 of the Rules of Court proceeding. The duty of confidentiality limits voluntary
• Sec. 20. It is the duty of an attorney: (e) to maintain disclosures anywhere.
inviolate the confidence, and at every peril to himself, to
preserve the secrets of his client, and to accept no compensation Why lawyer-client relationships requires confidentiality
in connection with his client's business except from him or with • Considerations favoring confidentially in lawyer-client
his knowledge and approval. relationships are many and serve several constitutional and policy
concerns. In the constitutional sphere, the privilege gives flesh
• Canon 17. A lawyer owes fidelity to the cause of his client to one of the most sacrosanct rights available to the accused, the
and he shall be mindful of the trust and confidence reposed in right to counsel. If a client were made to choose between legal
him. representation without effective communication and disclosure
and legal representation with all his secrets revealed then he
Revised Penal Code might be compelled, in some instances, to either opt to stay away
• Art. 209. Betrayal of trust by an attorney or solicitor. — from the judicial system or to lose the right to counsel. If the
Revelation of secrets. — In addition to the proper price of disclosure is too high, or if it amounts to self
administrative action, xxx shall be imposed upon any attorney- incrimination, then the flow of information would be curtailed
at-law or solicitor ( procurador judicial) who, by any malicious thereby rendering the right practically nugatory. The threat this
breach of professional duty or of inexcusable negligence or represents against another sacrosanct individual right, the right to
ignorance, shall prejudice his client, or reveal any of the secrets be presumed innocent is at once self-evident. - Regala et. al. v.
of the latter learned by him in his professional capacity. Sandiganbayan, G. R. No. 105938 [1996]
• The same penalty shall be imposed upon an attorney-at-law
or solicitor (procurador judicial) who, having undertaken the Extent of Confidentiality Rule
defense of a client or having received confidential information • The confidentiality rule, for example, applies not only to
from said client in a case, shall undertake the defense of the matters communicated in confidence by the client but also to all
opposing party in the same case, without the consent of his first information relating to the representation, whatever its source. A
client. lawyer may not disclose such information except as authorized or
required by the Rules of Professional Conduct or other law.
Confidentiality is not the same as the attorney-client privilege
• The lawyer’s duty of confidentiality (an ethical duty) is not the Lawyer’s duty to keep the confidentiality
same as the client’s right to assert the attorney client privilege (a • An effective lawyer-client relationship is largely dependent
rule of evidence). upon the degree of confidence which exists between lawyer
• The attorney/client privilege extends only to communications and client which in turn requires a situation which encourages a
between lawyers and clients relating to legal services and which dynamic and fruitful exchange and flow of information. It
the client reasonably believes is confidential. necessarily follows that in order to attain effective representation,
the lawyer must invoke the privilege not as a matter of option
but as a matter of duty and professional responsibility. - suing or sued is entitled to know who his opponent is." He
Regala et. al. v. Sandiganbayan, G. R. No. 105938 [1996] cannot be obliged to grope in the dark against unknown forces.

Duty of lawyer when receiving a material not intended for him Exceptions
• A lawyer who receives on an unauthorized basis materials of an 1) Client identity is privileged where a strong probability exists that
adverse party that she knows to be privileged or confidential revealing the client's name would implicate that client in the very
should, upon recognizing the privileged or confidential nature of activity for which he sought the lawyer's advice.
the materials, either refrain from reviewing such materials or 2) Where disclosure would open the client to civil liability; his
review them only to the extent required to determine how identity is privileged.
appropriately to proceed; 3) Where the government's lawyers have no case against an attorney's
client unless, by revealing the client's name, the said name would
• She should notify her adversary's lawyer that she has such furnish the only link that would form the chain of testimony
materials and should either follow instructions of the adversary's necessary to convict an individual of a crime, the client's name is
lawyer with respect to the disposition of the materials, or refrain privileged. - Regala et. al. v. Sandiganbayan, G. R. No. 105938
from using the materials until a definitive resolution of the proper [1996]
disposition of the materials is obtained from a court. - ABA
Comm. on Ethics and Prof'l Responsibility, Formal Op. 382 • Summarizing these exceptions, information relating to the
(1994). identity of a client may fall within the ambit of the privilege
when the client's name itself has an independent significance,
General Rule on client’s identity such that disclosure would then reveal client confidences. -
• As a matter of public policy, a client's identity should not be Regala et. al. v. Sandiganbayan, G. R. No. 105938 [1996]
shrouded in mystery. Under this premise, the general rule in our
jurisdiction as well as in the United States is that a lawyer may
not invoke the privilege and refuse to divulge the name or Communication to commit crime or fraud not privileged
identity of this client. - Regala et. al. v. Sandiganbayan, G. R. • "The reason of the principle which holds such
No. 105938 [1996] communications not to be privileged is that it is not within the
professional character of a lawyer to give advice upon such
Reasons advanced for the general rule subjects, and that it is no part of the profession of an attorney or
• First, the court has a right to know that the client whose counselor at law to be advising persons as to how they may
privileged information is sought to be protected is flesh and commit crimes or frauds, or how they may escape the
blood. consequences of contemplated crimes and frauds.
• Second, the privilege begins to exist only after the • The relation of attorney and client cannot exist for the
attorney-client relationship has been established. The attorney- purpose of counsel in concocting crimes.
client privilege does not attach until there is a client. • The protection which the law affords to communications
• Third, the privilege generally pertains to the subject matter between attorney and client has reference to those which are
of the relationship. legitimately and properly within the scope of a lawful
• Finally, due process considerations require that the opposing employment, and does not extend to communications made in
party should, as a general rule, know his adversary. "A party contemplation of a crime, or perpetration of a fraud. -
Dissenting opinion, Regala et. al. v. Sandiganbayan, G. R. No. death of the client. – Genato v. Atty. Silapan, A.C. No. 4078.
105938 [1996] July 14, 2003

• It does not extend to those made in contemplation of a crime Secrets or confidential communications must be obtained in a
or perpetration of a fraud. If the unlawful purpose is avowed, as lawyer-client relationship
in this case, the complainant’s alleged intention to bribe • The alleged "secrets" of complainant were not specified by
government officials in relation to his case, the communication is him in his affidavit-complaint. Whatever facts alleged by
not covered by the privilege as the client does not consult the respondent against complainant were not obtained by
lawyer professionally. It is not within the profession of a respondent in his professional capacity but as a redemptioner
lawyer to advise a client as to how he may commit a crime as of a property originally owned by his deceased son and therefore,
a lawyer is not a gun for hire. Thus, the attorney-client when respondent filed the complaint for estafa against herein
privilege does not attach, there being no professional employment complainant, which necessarily involved alleging facts that would
in the strict sense. - Genato v. Atty. Silapan, A.C. No. 4078. July constitute estafa, respondent was not, in any way, violating
14, 2003 Canon 21. xxx To hold otherwise would be precluding any
lawyer from instituting a case against anyone to protect his
Cause of client defense is not absolute personal or proprietary interests. – Uy v. Atty. Gonzales, A.C. No.
• Whatever the contours of the line between traditional 5280, March 30, 2004
lawyering and criminal conduct, they must inevitably be drawn • It must be stressed, however, that the privilege against disclosure
case-by-case. We refuse to accept the notion that lawyers may do of confidential communications or information is limited only to
anything, including violating the law, to zealously advocate their communications which are legitimately and properly within
clients' interests and then avoid criminal prosecution by claiming the scope of a lawful employment of a lawyer. - Genato v. Atty.
that they were "just doing their job." - United States v. Cueto Silapan, A.C. No. 4078. July 14, 2003
(7th Cir. 1998) 151 F.3d 620, 634
Starting point of duty of confidentiality
Permanent nature of duty to keep confidentiality • The moment complainant approached the then receptive
• The duty to maintain inviolate the client’s confidences and respondent to seek legal advice, a veritable lawyer-client
secrets is not temporary but permanent. It is in effect perpetual relationship evolved between the two. Such relationship imposes
for "it outlasts the lawyer’s employment" (Canon 37, Code of upon the lawyer certain restrictions circumscribed by the ethics of
Professional Responsibility) which means even after the the profession. Among the burdens of the relationship is that
relationship has been terminated, the duty to preserve the client’s which enjoins the lawyer, respondent in this instance, to keep
confidences and secrets remains effective. inviolate confidential information acquired or revealed
• This obligation to preserve the confidences and secrets of a during legal consultations. - Hadjula v. Atty. Madianda, A.C.
client arises at the inception of their relationship. The protection No. 6711 [2007]
given to the client is perpetual and does not cease with the • This duty of confidentiality also extends to prospective clients
termination of the litigation, nor is it affected by the party’s even though an attorney-client relationship is never established.
ceasing to employ the attorney and retaining another, or by any
other change of relation between them. It even survives the Not a defense to justify breaching the duty of confidentiality
1. Lawyer not inclined to handle the client's case after consultation.
2. no formal professional engagement follows the consultation. The principle of client-lawyer confidentiality is given effect by
3. no contract whatsoever was executed by the parties to related bodies of law
memorialize the relationship. 1. the attorney-client privilege,
- Hadjula v. Atty. Madianda, A.C. No. 6711 [2007] 2. the work product doctrine and
3. the rule of confidentiality established in professional ethics.
The essential factors to establish the existence of the attorney-
client privilege communication • The attorney-client privilege and work-product doctrine apply in
(1) Where legal advice of any kind is sought judicial and other proceedings in which a lawyer may be called
(2) from a professional legal adviser in his capacity as such, as a witness or otherwise required to produce evidence
(3) the communications relating to that purpose, concerning a client.
(4) made in confidence • The rule of client-lawyer confidentiality applies in situations
(5) by the client, other than those where evidence is sought from the lawyer
(6) are at his instance permanently protected through compulsion of law.
(7) from disclosure by himself or by the legal advisor,
(8) except the protection be waived. Confidentiality does not extend to partners and associates
- Hadjula v. Atty. Madianda, A.C. No. 6711 [2007] • Lawyers in a firm may, in the course of the firm's practice,
disclose to each other information relating to a client of the firm,
Characteristics of the Attorney-Client Privilege unless the client has instructed that particular information be
1. A-C privilege where legal advice is professionally sought from an confined to specified lawyers.
attorney. • Rule 21.04 - A lawyer may disclose the affairs of a client of
2. The client must intend the above communication to be the firm to partners or associates thereof unless prohibited by
confidential. the client.
3. A-C privilege embraces all forms of communication and action.
4. As a general rule, A-C privilege also extends to the attorney’s Protection from third party
secretary, stenographer, clerk or agent with reference to any fact • This prohibition also applies to disclosures by a lawyer that
required in such capacity. do not in themselves reveal protected information but could
5. The above duty is perpetual and is absolutely privileged from reasonably lead to the discovery of such information by a third
disclosure. person.

Attorney-Client Privilege cannot be invoked Disclosure of the Client's Identity and Whereabouts
1. There is consent or waiver or client. • The general rule is that a client's identity and whereabouts are
2. Such is required by law. not covered by the attorney-client privilege, as opposed to the
3. Such is made to protect the lawyer’s rights (i.e. to collect his fees ethical duty of confidentiality.
or associates or by judicial action). • However, exceptions have been made if disclosure would
4. When such communication are made in contemplation of a crime implicate the client in the criminal activity for which legal advice
or the perpetuation of a fraud. was sought or "if the net effect of the disclosure would be to
reveal the nature of a client communication." - Charles
McCormick, McCormick on Evidence § 90 (5th ed. 1999)
client's identity, the lawyer should generally assert the
• Lawyer must testify about identity of client who paid with attorney-client privilege and obtain a court ruling rather than
counterfeit $100 bill. make his own determination whether the information is
• Client's name not considered confidential unless "intertwined" privileged. The existence of exceptions to the general rule
with confidential information or last link tying client to crime. - holding that fee and client identity are not privileged, as well as
Alexiou v. United States), 39 F.3d 973 (9th Cir. 1994) the lawyer's ethical duty to oppose disclosure of information
• Client identity is privileged in exceptional cases when disclosure learned during a client's representation, make it advisable to
would provide "last link" in chain of evidence leading to follow this course of action.
conclusion that client committed crime, and would reveal
confidential communication between lawyer and client; • A lawyer faced with a subpoena for information about a client
• Client who accused divorce lawyer of improper sexual advances must resist the subpoena if the lawyer's testimony or the
may not obtain client list in discovery. - Brett v. Berkowitz, 706 document production would violate either the attorney-client
A.2d 509 (Del. 1998) privilege or the ethical duty of confidentiality and the client
does not consent to the disclosure. - In re Grand Jury Witness,
• Lawyer for client sought in hit-and-run accident may 695 F2d 359 (CA 9 1982); In re Grand Jury Subpoena (U.S.),
withhold client's identity when disclosure would implicate client 831 F2d 225 (CA 11 1987
in criminal activity for which legal advice sought. - Dietz v. Doe, • A lawyer who receives a subpoena to testify about a client
935 P.2d 611 (Wash. 1997) may file a motion to quash asserting the attorney-client privilege,
along with any other possible grounds for refusing to comply.
Certain instances where a court order is not involved, courts • A subpoena duces tecum issued to a lawyer that makes no
have held the client's whereabouts protected attempt whatsoever to confine its scope to relevant, non-
• Lawyer may not be compelled to disclose address of privileged matters is unenforceable and must be quashed. - U.S. v.
defendant father in child custody proceeding when he specifically Horn, 976 F2d 1314 (CA9 1992)
requested that lawyer not reveal the home address and telephone
number of the father and the name and address of the school the Representing a fugitive
children were attending; information that the client requests be • Assuming the client is indeed properly characterized as a
kept confidential is protected unless protection permits a fraud fugitive, defense counsel must take into account the boundaries of
or crime or clearly frustrates the administration of justice. - permissible advocacy. It bears noting that any physical act
Brennan v. Brennan, 422 A2d 510 (Pa SuperCt 1980) intended to harbor or conceal a fugitive so as to prevent his
• Domestic relations case where confidentiality of address was discovery or arrest arguably could constitute a separate criminal
necessary for client safety. - Waldman v. Waldman,358 NE2d 521 violation.
(1976) • A lawyer “is free to continue to give legal advice to [a
fugitive] client and to represent him before the authorities, as long
As a rule a lawyer should challenge an order to disclose as [the lawyer] does nothing to aid the client to escape trial.
information about client
• In sum, the attorney-client privilege ordinarily will not cover Client is under conditions of bail
the information sought by a subpoena directed to a lawyer. Yet • “Where a client is under conditions of bail and defies a
even when faced with a subpoena seeking fee information or a lawful court order to appear, his 'whereabouts' are not
unqualifiedly protected by the attorney-client privilege, and the preserve the secrets or communications made to him. - PP v. Sy
attorney may be compelled to disclose information of the client's Juco, G.R. No. L-41957 August 28, 1937
whereabouts." - Commonwealth v. Maguigan,511 A2d 1327 (Pa
SupCt 1986) CHAPTER 7
• Lawyer who learned from client's wife that client had left Conflict of interest in a regular lawyer-client relationship
with suitcase for "parts unknown" had firm factual basis for
believing client jumped bond and did not intend to appear for COI is everywhere
trial, thus had duty to advise court to avoid assisting in • Conflicts of interest are not the exclusive headache of large,
criminal act. - U.S. v. DelCarpio-Cotrina,733 FSupp 95 (DC urban, multi-office law firms. Conflicts of interest arise within
SFla 1990) and affect law practices of every size, geographical location and
discipline. The number of clients, adverse parties, and interested
• An attorney representing an individual who has violated the non-parties with whom attorneys become involved throughout
terms of bail and fled the jurisdiction arguably has an even their careers is truly staggering and invariably underestimated.
greater obligation as an officer of the court to seek the prompt
return of the client in compliance with a judicial release order. Extreme case of Conflict of Interest
• An attorney “may not assist the [fugitive] client in any way • The most obvious conflicts of interest are those in which the
that the lawyer knows will further an illegal or fraudulent lawyer's personal interests clash with those of the client.
purpose.”- Association of the Bar of the City of New York
Formal Opinion 1999-02 Rule on Conflicting Interests
• Where an attorney believes, but does not know, conduct to • It is generally the rule based on sound public policy that
be illegal or fraudulent, the attorney may act on behalf of the attorney cannot represent diverse interest. It is highly improper to
fugitive client, but “only after assuring him or herself that there is represent both sides of an issue.
reasonable support for an argument that the client’s intended use
of the fruits of the representation will not further a criminal Competitor Conflicts
scheme or act. - Association of the Bar of the City of New York • Courts have found that a competitor conflict is present when
Formal Opinion 1999-02 the lawyer attempts to represent two competitors on a material
aspect of their competition.
Can the metal filing cabinet containing the records and
documents of clients be subject of a search warrant? Whose interest?
• It is clear that the court could not and can not order the • It is, of course, a hornbook proposition that it is the client,
opening of the art metal filing cabinet in question because, it and not the lawyer, that defines the client's interests and instructs
having been proven that it belongs to the appellant attorney and the lawyer about them.
that in it he keeps the records and documents of his clients, to do
so would be in violation of his right as such attorney, since it Degree of involvement
would be tantamount to compelling him to disclose or divulge • The greater the involvement in the client's affairs the greater
facts or things belonging to his clients, which should be kept the danger that confidences (where such exist) will be revealed.
secret, unless she is authorized by them to make such disclosure,
it being a duty imposed by law upon an attorney to strictly “Closed file” conflicts
• Involve representation adverse to a former client in the same CANON 21 - A lawyer shall preserve the confidence and secrets
or substantially related matters. of his client even after the attorney-client relation is terminated
• Rule 21.02 - A lawyer shall not, to the disadvantage of his client,
Absolute prohibition from representation use information acquired in the course of employment, nor
• Hornilla case provides an absolute prohibition from shall he use the same to his own advantage or that of a third
representation with respect to opposing parties in the same case. person, unless the client with full knowledge of the
• In other words, a lawyer cannot change his representation circumstances consents thereto.
from one party to the latter's opponent in the same case, as in this • Rule 21.07 - A lawyer shall not reveal that he has been
case. – Tulio v. Atty. Buhangin, A.C. No. 7110, April 20, 2016 consulted about a particular case except to avoid possible
conflict of interest.
Doctrine of “imputed knowledge”
• Doctrine of imputed knowledge is based on the assumption General Rule in a law firm
that an attorney, who has notice of matter affecting his client, has • Rule 21.04 - A lawyer may disclose the affairs of a client of the
communicated the same to his principal in the course of firm to partners or associates thereof unless prohibited by the
professional dealings. The doctrine applies regardless of whether client.
or not the lawyer actually communicated to the client what he
learned in his professional capacity, the attorney and his client • An information obtained from a client by a member or assistant
being one judicial person. of a law firm is information imparted to the firm. This is not a
• Knowledge of one member of a law firm will be imputed by mere fiction or an arbitrary rule; for such member or assistant, as
inference to all members of that firm; free flow of information in our case, not only acts in the name and interest of the firm, but
within the partnership. his information, by the nature of his connection with the firm is
available to his associates or employers. – Hilado v. David, et.
Al., G.R. No. L-961, September 21, 1949

Preliminary conflict of interest check CANON 15 - A lawyer shall observe candor, fairness and loyalty
• Whenever a prospective client seeking legal assistance contacts in all his dealings and transactions with his clients
an attorney, the attorney should politely but firmly decline to • Rule 15.01. - A lawyer, in conferring with a prospective
discuss the matter in detail until a preliminary conflict of client, shall ascertain as soon as practicable whether the matter
interest check can be performed. would involve a conflict with another client or his own interest,
• As the adjective suggests, preliminary conflict of interest and if so, shall forthwith inform the prospective client.
checks should ideally be performed before the prospective • Rule 15.03. - A lawyer shall not represent conflicting interests
client divulges additional confidential information which may except by written consent of all concerned given after a full
conflict the attorney out of current or future representations. disclosure of the facts.
• Rule 15.01. - A lawyer, in conferring with a prospective client, • Rule 15.04. - A lawyer may, with the written consent of all
shall ascertain as soon as practicable whether the matter would concerned, act as mediator, conciliator or arbitrator in settling
involve a conflict with another client or his own interest, and if disputes.
so, shall forthwith inform the prospective client. • 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 Counsel of corporation cannot represent members of board of
of the case. directors
• After due deliberation on the wisdom of this doctrine, we are
• Rule 15.08. - A lawyer who is engaged in another profession sufficiently convinced that a lawyer engaged as counsel for a
or occupation concurrently with the practice of law shall make corporation cannot represent members of the same corporation’s
clear to his client whether he is acting as a lawyer or in another board of directors in a derivative suit brought against them. To do
capacity. so would be tantamount to representing conflicting interests,
which is prohibited by the Code of Professional
Confidentiality of information is not relevant in COI Responsibility.(Hornilla v. Atty. Salunat, A.C. No. 5804, July 1,
• The rule on conflict of interests covers not only cases in 2003)
which confidential communications have been confided but also
those in which no confidence has been bestowed or will be Degree of adverse interest, intention or motive are not material
used. - Atty. Jalandoni v. Atty. Villarosa, AC 5303, June 15, 2006 • An attorney owes to his client undivided allegiance. After
being retained and receiving the confidences of the client, he
Unqualified opposing interest of new and former clients cannot, without the free and intelligent consent of his client, act
• The rule prohibits a lawyer from representing new clients both for his client and for one whose interest is adverse to, or
whose interests oppose those of a former client in any manner, conflicting with that of his client in the same general matter….
whether or not they are parties in the same action or in totally The prohibition stands even if the adverse interest is very
unrelated cases. - Atty. Jalandoni v. Atty. Villarosa, AC 5303, slight; neither is it material that the intention and motive of the
June 15, 2006 attorney may have been honest- Lim Jr. v. Atty. Villarosa, A.C.
No. 5303, June 15, 2006
• Another test of the inconsistency of interests is whether the
acceptance of a new relation will prevent an attorney from the full As to who initiate engagement is immaterial
discharge of his duty of undivided fidelity and loyalty to his • To negate any culpability, respondent explained that he did
client or invite suspicion of unfaithfulness or double-dealing in not offer his legal services to accused Avila and Ilo but it was the
the performance thereof, and also whether he will be called upon two accused who sought his assistance in executing their
in his new relation to use against his first client any knowledge extrajudicial confessions. Nonetheless, he acceded to their
acquire in the previous employment. request to act as counsel after apprising them of their
constitutional rights and after being convinced that the accused
• The first part of the rule refers to cases in which the opposing were under no compulsion to give their confession. - Perez v.
parties are present clients either in the same action or in a Atty. Dela Torre, AC 6160, March 30, 2006
totally unrelated case; the second part pertains to those in
which the adverse party against whom the attorney appears is his Retained counsel of either party cannot act as mediator without
former client in a matter which is related, directly or indirectly, consent
to the present controversy. - Atty. Jalandoni v. Atty. Villarosa, AC • Even respondent’s alleged effort to settle the existing
5303, June 15, 2006 controversy among the family members was improper because
the written consent of all concerned was still required. A
lawyer who acts as such in settling a dispute cannot represent
any of the parties to it. - Lim Jr. v. Atty. Villarosa, A.C. No. admitted, it was their law firm which represented Gonzales in the
5303, June 15, 2006 civil case. Such being the case, the rule against representing
• Rule 15.04. - A lawyer may, with the written consent of all conflicting interests applies. - Gonzales v. Atty. Cabucana, A.C.
concerned, act as mediator, conciliator or arbitrator in settling No. 6836, January 23, 2006
disputes.
Vicarious disqualification
Nature of the case is irrelevant • Traditionally, if a lawyer is ineligible to represent a particular
• The claim of respondent that there is no conflict of interests in client, all members of the lawyer's firm also are ineligible.
this case, as the civil case handled by their law firm where • The basis for vicarious disqualification is the "presumption of
Gonzales is the complainant and the criminal cases filed by shared confidences," which seeks to prevent disclosure of client
Gonzales against the Gatcheco spouses are not related, has no confidences, preserve counsel loyalty, and avoid the appearance
merit. The representation of opposing clients in said cases, though of impropriety.
unrelated, constitutes conflict of interests or, at the very least,
invites suspicion of double-dealing which this Court cannot Professional engagement starts the moment the lawyer listens to
allow. - Gonzales v. Atty. Cabucana, A.C. No. 6836, January 23, his prospective client
2006 • An attorney is employed that is, he is engaged in his
professional capacity as a lawyer or counselor when he is
Dismissed employee and counsel of record incompatible listening to his client s preliminary statement of his case, or
• In the instant case, quite apart from the issue of validity of the when he is giving advice thereon, just as truly as when he is
1990 compromise agreement, this Court finds fault in drawing his client s pleadings, or advocating his client s
respondent's omission of that basic sense of fidelity to steer clear pleadings, or advocating his client s cause in open court. - Atty.
of situations that put his loyalty and devotion to his client, the Catalan v. Atty. Silvosa A.C. No. 7360 [2012]
faculty members of UST, open to question. Atty. Mariño both as
lawyer and president of the union was duty bound to protect Good faith is not a defense
and advance the interest of union members and the • Indeed, the prohibition against representation of conflicting
bargaining unit above his own. This obligation was jeopardized interests applies although the attorney’s intentions were honest
when his personal interest as one of the dismissed employees of and he acted in good faith. - Atty. Catalan v. Atty. Silvosa A.C.
UST complicated the negotiation process and eventually resulted No. 7360 [2012]
in the lopsided compromise agreement that rightly or wrongly
brought money to him and the other dismissed union officers Consent ineffective
and directors, seemingly or otherwise at the expense of the • A lawyer may not properly represent conflicting interests
faculty members. - Dr. Gamilla et. al. v. Atty. Mariño Jr., A.C. even though the parties concerned agree to the dual representation
No. 4763, March 20, 2003 where:
1. the conflict is between the attorney’s interest and that of a
Client of law firm is the client of every partners and associates client, or
• Respondent further argued that it was his brother who 2. between a private client’s interests and that of the
represented Gonzales in the civil case and not him, thus, there government or any of its instrumentalities.
could be no conflict of interests. We do not agree. As respondent 3. between an accused and counsel.
• Section 12. (Article III of the Constitution) • It is of no moment that the lawyer would not be called upon to
(1) Any person under investigation for the commission of an contend for one client that which the lawyer has to oppose for the
offense shall have the right to be informed of his right to remain other client, or that there would be no occasion to use the
silent and to have competent and independent counsel confidential information acquired from one to the disadvantage of
preferably of his own choice. If the person cannot afford the the other as the two actions are wholly unrelated. It is enough
services of counsel, he must be provided with one. These rights that the opposing parties in one case, one of whom would lose
cannot be waived except in writing and in the presence of the suit, are present clients and the nature or conditions of the
counsel. lawyer’s respective retainers with each of them would affect the
performance of the duty of undivided fidelity to both clients. -
Three tests to determine conflicting interests Quiambao v. Atty. Bamba, Adm. Case No. 6708 August 25, 2005
• The first is when, on behalf of one client, it is the attorney’s
duty to contest for that which his duty to another client requires Effects of Representing Adverse Interests
him to oppose or when this possibility of such situation will 1. Disqualification as counsel of new client on petition of former
develop (conflicting duties). client.
2. Where such is unknown to, becomes prejudicial interests of
• The second test is whether the acceptance of the new relation the new client, a judgment against such may, on that ground be set
will prevent a lawyer from the full discharge of his duty of aside.
undivided fidelity and loyalty to his client or will invite suspicion 3. A lawyer can be held administratively liable through
of unfaithfulness or double-dealing in the performance thereof disciplinary action and may be held criminally liable for betrayal of
(Invitation of suspicion). trust.
4. The attorney’s right to fees may be defeated if found to be
• The third test is whether a lawyer will be called upon in his related to such conflict and such was objected to by the former client,
new relation to use against the first client any knowledge or if there was a concealment and prejudice by reason of the
acquired in the previous employment (use of prior knowledge attorney’s previous professional relationship with the opposite party.
obtained).
• Representing conflicting interests would occur only where the What are the types of conflict of interest?
attorney’s new engagement would require her to use against a 1. Concurrent or multiple or simultaneous representation:
former client any confidential information gained from the » A lawyer represents clients whose objectives are adverse to each
previous professional relation. other, no matter how slight or remote these are
• The prohibition did not cover a situation where the subject » Take note of this minimal degree
matter of the present engagement was totally unrelated to the » Ex. A CPA-lawyer being part of a firm that represents the estate
previous engagement of the attorney. and being part of the accountancy firm that represents the
• - Seares, Jr. v. Atty. Gonzales-Alzate, Adm. Case No. 9058 creditors. The conflict need not arise from two legal
November 14, 2012 relationships.
2. Sequential or successive representation:
• Remember: The test to determine whether there is a conflict » Representation of present client who may have an interest adverse
of interest in the representation is PROBABILITY, not to prior client.
certainty of conflict.
• Successive representation - when a lawyer or law firm seeks to Only instance when a lawyer can represent conflicting interest
represent a client whose interests are adverse to a former client • A lawyer cannot represent conflicting interests except by
without the former client's consent. The rule against simultaneous written consent of all concerned given after a full disclosure of
representation is based principally on the duty of undivided the facts. – Santos Ventura Hocorma Foundation, Inc. v. Atty.
loyalty. Funk, A.C. No. 9094 August 15, 2012

• Unlike simultaneous representation, successive representation is Limit of full disclosure


not prima facie improper. The duty to preserve client • A lawyer is forbidden from representing a subsequent
confidences is the primary ethical consideration implicated by client against a former client when the subject matter of the
successive representation. present controversy is related, directly or indirectly, to the
• Successive representation implicates both the duty of loyalty subject matter of the previous litigation in which he appeared for
and the preservation of the attorney-client relationship. the former client. Conversely, he may properly act as counsel for
a new client, with full disclosure to the latter, against a former
Suspicion of Double-dealing even if the case is unrelated client in a matter wholly unrelated to that of the previous
• We do not sustain respondent’s theory that since the employment, there being in that instance no conflict of interests.
ejectment case and the replevin case are unrelated cases fraught • Where, however, the subject matter of the present suit
with different issues, parties, and subject matters, the prohibition between the lawyer’s new client and his former client is in some
is inapplicable. His representation of opposing clients in both way connected with that of the former client’s action, the
cases, though unrelated, obviously constitutes conflict of lawyer may have to contend for his new client that which he
interest or, at the least, invites suspicion of double-dealing. - previously opposed as counsel for the former client or to use
Quiambao v. Atty. Bamba, Adm. Case No. 6708 August 25, 2005 against the latter information confided to him as his counsel. -
Pormento, Sr. v. Atty. Pontevedra, A.C. No. 5128. March 31,
Does the lawyer have to be the counsel-of-record for the other 2005
party to violate this provision?
• To be guilty of representing conflicting interests, a counsel- Purpose and intention is immaterial
of-record of one party need not also be counsel-of-record of the • Respondent contends that he handled the defense of the
adverse party. He does not have to publicly hold himself as the accused in the subject criminal case for humanitarian reasons and
counsel of the adverse party, nor make his efforts to advance the with the honest belief that there exists no conflict of interests.
adverse party’s conflicting interests of record--- although these However, the rule is settled that the prohibition against
circumstances are the most obvious and satisfactory proof of the representation of conflicting interests applies although the
charge. It is enough that the counsel of one party had a hand in attorney’s intentions and motives were honest and he acted in
the preparation of the pleading of the other party, claiming good faith. Moreover, the fact that the conflict of interests is
adverse and conflicting interests with that of his original client. remote or merely probable does not make the prohibition
To require that he also be counsel-of-record of the adverse party inoperative. - Pormento, Sr. v. Atty. Pontevedra, A.C. No. 5128.
would punish only the most obvious form of deceit and reward, March 31, 2005
with impunity, the highest form of disloyalty. – Artezuela v. Atty.
Maderazo, A.C. No. 4354. April 22, 2002 Termination of A-C relations is not a justification
• Respondent also asserts that when he accepted employment in that a conflict of interest undermines the independence of the
Criminal Case No. 3159, the attorney-client relations between lawyer’s professional judgment or inhibits a lawyer from working
him and complainant in Civil Case No. 1648 had already been with appropriate vigor in the client’s behalf, the client’s
terminated. This defense does not hold water because the expectation of effective representation x x x could be
termination of the relation of attorney and client provides no compromised. - Samson v. Atty. Era, A.C. No. 6664 July 16,
justification for a lawyer to represent an interest adverse to 2013
or in conflict with that of the former client. – Pormento, Sr. v. • Third, a client has a legal right to have the lawyer safeguard
Atty. Pontevedra, A.C. No. 5128. March 31, 2005 the client’s confidential information xxx. Preventing use of
confidential client information against the interests of the client,
Acquired knowledge of former client’s doings is indelible either to benefit the lawyer’s personal interest, in aid of some
• The reason for this is that a lawyer acquires knowledge of his other client, or to foster an assumed public purpose is facilitated
former client's doings, whether documented or not, that he through conflicts rules that reduce the opportunity for such abuse.
would ordinarily not have acquired were it not for the trust and • Fourth, conflicts rules help ensure that lawyers will not
confidence that his client placed on him in the light of their exploit clients, such as by inducing a client to make a gift to the
relationship. It would simply be impossible for the lawyer to lawyer xxx.
identify and erase such entrusted knowledge with faultless • Finally, some conflict-of-interest rules protect interests of the
precision or lock the same into an iron box when suing the former legal system in obtaining adequate presentations to tribunals. In
client on behalf of a new one. - Santos Ventura Hocorma the absence of such rules, for example, a lawyer might appear on
Foundation, Inc. v. Atty. Funk, A.C. No. 9094 August 15, 2012 both sides of the litigation, complicating the process of taking
proof and compromise adversary argumentation x x x. - Samson
Good faith and honest intention is not a defense v. Atty. Era, A.C. No. 6664 July 16, 2013
• That the representation of conflicting interest is in good faith
and with honest intention on the part of the lawyer does not Informed consent must be written
make the prohibition inoperative. - Quiambao v. Atty. Bamba, • A client's implied consent is insufficient to waive a potential
Adm. Case No. 6708 August 25, 2005 conflict of interest.
• Although there are instances where lawyers cannot decline • Rule 15.03. - A lawyer shall not represent conflicting interests
representation, they cannot be made to labor under conflict of except by written consent of all concerned given after a full
interest between a present client and a prospective one. – disclosure of the facts.
Quiambao v. Atty. Bamba, Adm. Case No. 6708 August 25, 2005 • While the respondent may assert that the complainant
expressly consented to his continued representation in the
The prohibition against conflict of interest rests on five ejectment case, the respondent failed to show that he fully
rationales, rendered as follows: disclosed the facts to both his clients and he failed to present
• x x x. First, the law seeks to assure clients that their lawyers any written consent of the complainant and AIB as required
will represent them with undivided loyalty. A client is entitled to under Rule 15.03, Canon 15 of the Code of Professional
be represented by a lawyer whom the client can trust. Instilling Responsibility. - Quiambao v. Atty. Bamba, Adm. Case No. 6708
such confidence is an objective important in itself. x x x. August 25, 2005
• Second, the prohibition against conflicts of interest seeks to
enhance the effectiveness of legal representation. To the extent COI remains after termination of attorney-client relationship
• The termination of the attorney-client relationship does not • The disqualification of married or related lawyers who oppose
justify a lawyer to represent an interest adverse to or in conflict one another professionally is not generally imputed to other
with that of the former client. The spirit behind this rule is that lawyers in the related lawyer's law offices.
the client’s confidence once given should not be stripped by the • Such personal disqualification is not imputed to the spouses'
mere expiration of the professional employment. Even after the firms unless the lawyers have a personal interest in the outcome
severance of the relation, a lawyer should not do anything that of the case.
will injuriously affect his former client in any matter in which the
lawyer previously represented the client. – Samson v. Atty. Era, Special circumstances that highlight the concern
A.C. No. 6664 July 16, 2013 1. whether the fee of either firm is contingent,
2. whether the disputed matter is one of negotiation or
Current observations husband and wife lawyers in legal practice litigation, and whether the married lawyer in question will or
• Where both husband and wife are lawyers but they are not will not actually be working on the particular matter.
practicing in association with one another, may they or their firms 3. Another variation of the problem is the situation in which a
represent differing interests? governmental agency, such as a district attorney or an
• Some firms apparently have been reluctant to employ one attorney general, is the employer of either the husband or
spouse-lawyer where that person's husband or wife is, or may the wife, and the spouse is associated with a law firm in the
soon be, practicing with another firm in the same city or area. same community.
• Some law firms are concerned whether a law firm is
disqualified, by reason of its employment of one spouse, to Concerns about husband & wife lawyers
represent a client opposing an interest represented by another law • Yet it also must be recognized that the relationship of
firm that employs the husband or wife of the inquiring firm's husband and wife is so close that the possibility of an
associate. inadvertent breach of a confidence or the unavoidable receipt of
information concerning the client by the spouse other than the
• It is not necessarily improper for husband-and-wife lawyers one who represents the client (for example, information contained
who are practicing in different offices or firms to represent in a telephoned message left for the lawyer at home) is
differing interests. No disciplinary rule expressly requires a substantial. Because of the closeness of the husband-and-wife
lawyer to decline employment if a husband, wife, son, daughter, relationship, a lawyer who is married to a lawyer must be
brother, father, or other close relative represents the opposing particularly careful.
party in negotiation or litigation.
• Likewise, it is not necessarily improper for a law firm having Recommendations
a married partner or associate to represent clients whose interests • Married partners who are lawyers must guard carefully at all
are opposed to those of other clients represented by another law times against inadvertent violations of their professional
firm with which the married lawyer's spouse is associated as a responsibilities arising by reason of the marital relationship.
lawyer.
Lawyer Relatives
• Married partners who are lawyers must guard carefully at all • Ethical precepts admonish lawyers related by blood or marriage
times against inadvertent violations of their professional to avoid adversarial representations without the informed consent
responsibilities arising by reason of the marital relationship. of the parties.
• Lawyers related by blood or marriage have long been permitted to — Rule 15.03. - A lawyer shall not represent conflicting interests
represent adversarial interests provided that a reasonable effort is except by written consent of all concerned given after a full
made to anticipate and expose potential conflicts to clients before disclosure of the facts.
obtaining their consent to representation. — Canon 21. A lawyer shall preserve the confidence and secrets
• Faced with client consent, courts have consistently required an of his client even after the attorney-client relationship is
actual conflict of interest rather than simply the fact of adversarial terminated.
lawyer relatives before ordering disqualification.
Corporate counsel and possibility of COI
Personal Relationships — Members of the Board of Directors
• A lawyer is romantically involved with the opposing party’s — Employees of the corporation
attorney, or sexually involved with a client, the lawyer’s loyalty — General public
or judgment can be impaired. — Counsel’s private interest
• Lawyers who are dating and also representing adversaries in
litigation should disclose their relationship if it is sufficiently Duty of attorney to a corporate client
close that their clients might have questions about the lawyers' — “[a]n attorney for a corporate client owes his duty [of loyalty]
ability to represent them zealously. to the corporate entity rather than a particular officer, director,
• Lawyers who are otherwise personally close should do or shareholder.” - ABC Trans Natl Transport, Inc. v. Aeronautics
likewise. Forwarders, Inc, 413 NE.2d 1299, 1310 1980
• The lawyer had enjoyed an "intimate physical relationship" — “[a] corporate attorney represents the corporation, not the
with the secretary and talked with her "about significant aspects individual directors or officers.” - Heim v. Signcraft Screenprint
of the case," for which he was disqualified. Inc, No 01C50014, 2001 WL 1018228 2001
• A lawyer is prohibited from having sex with a client unless a — “[t]he attorney for a corporation, even a closely held one,
consensual sexual relationship existed prior to the start of does not have a specific fiduciary duty toward the individual
professional representation. shareholders.” - Kopka v. Kamensky and Rubenstein, 821 NE.2d
719, 727 (2004)
Duty to protect only matters acquired during the lawyer-client
relationship — He should resolve all doubts against the propriety of the
• The intent of the law is to impose upon the lawyer the duty to representation. – Cannon v. U.S. Acoustics Corp. 398 F.Supp.
protect the client’s interests only on matters that he previously 209 (1975)
handled for the former client and not for matters that arose after
the lawyer-client relationship has terminated. – Palm v. Atty.
Iledan, Jr. A.C. No. 8242 [2009] Can a lawyer engaged by a corporation defend members of the
board of the same corporation in a derivative suit?
CHAPTER 8 — We are sufficiently convinced that a lawyer engaged as
“Conflict of interest” of Corporate Lawyers counsel for a corporation cannot represent members of the same
CPR provisions corporation’s board of directors in a derivative suit brought
against them. To do so would be tantamount to representing
conflicting interests, which is prohibited by the Code of — In his Answer, respondent alleged that in January 2002,
Professional Responsibility. Soledad consulted him on process and procedure in acquiring
— Furthermore, this restriction on dual representation should not property.
be waivable by consent in the usual way; the corporation should — In April 2002, Soledad again consulted him about the legal
be presumptively incapable of giving valid consent. – Hornilla requirements of putting up a domestic corporation. In February
v. Atty. Salunat, A.C. No. 5804. July 1, 2003 2003, Soledad engaged his services as consultant for Comtech.
— Respondent alleged that from February to October 2003,
Palm v. Atty. Iledan, Jr. A.C. No. 8242 [2009] neither Soledad nor Palm consulted him on confidential or
— Complainant is the President of Comtech, a corporation engaged privileged matter concerning the operations of the
in the business of computer software development. corporation. Respondent further alleged that he had no access to
— From February 2003 to November 2003, respondent served as any record of Comtech.
Comtech’s retained corporate counsel for the amount of P6,000 — Respondent admitted that during the months of September and
per month as retainer fee. October 2003, complainant met with him regarding the
— From September to October 2003, complainant personally met procedure in amending the corporate by-laws to allow board
with respondent to review corporate matters, including members outside the Philippines to participate in board meetings.
potential amendments to the corporate by-laws. — Respondent alleged that there was no conflict of interest when he
— In a meeting held on 1 October 2003, respondent suggested that represented Soledad in the case for Estafa filed by Comtech. He
Comtech amend its corporate by-laws to allow participation alleged that Soledad was already a client before he became a
during board meetings, through teleconference, of members of consultant for Comtech. He alleged that the criminal case was
the Board of Directors who were outside the Philippines. not related to or connected with the limited procedural
— Comtech decided to terminate its retainer agreement with queries he handled with Comtech.
respondent effective November 2003. — In addition, although the information about the necessity to
— On 24 March 2004, Comtech’s new counsel sent a demand letter amend the corporate by-laws may have been given to respondent,
to Soledad [a former officer and director of Comtech, who it could not be considered a confidential information.
resigned and who was suspected of releasing unauthorized — Further, whenever any amendment or adoption of new by-laws is
disbursements of corporate funds] to return or account for the made, copies of the amendments or the new by-laws are filed
amount of P90,466.10 representing her unauthorized with the Securities and Exchange Commission (SEC) and
disbursements when she was the Corporate Treasurer of attached to the original articles of incorporation and by-laws. The
Comtech. documents are public records and could not be considered
— On 22 April 2004, Comtech received Soledad’s reply, signed by confidential.
respondent. — We agree with the IBP that in the course of complainant’s
— In July 2004, due to Soledad’s failure to comply with Comtech's consultations, respondent obtained the information about the
written demands, Comtech filed a complaint for Estafa against need to amend the corporate by-laws to allow board members
Soledad before the Makati Prosecutor’s Office. In the outside the Philippines to participate in board meetings
proceedings before the City Prosecution Office of Makati, through teleconferencing. Respondent himself admitted this in
respondent appeared as Soledad’s counsel. his Answer.
— It is settled that the mere relation of attorney and client does not
raise a presumption of confidentiality. The client must intend the
communication to be confidential. Since the proposed foundation, using information that he acquired while serving
amendments must be approved by at least a majority of the as its counsel xxx.
stockholders, and copies of the amended by-laws must be filed — Here, it is undeniable that Atty. Funk was formerly the legal
with the SEC, the information could not have been intended to counsel of Hocorma Foundation. Years after terminating his
be confidential. Thus, the disclosure made by respondent relationship with the foundation, he filed a complaint against it
during the stockholders’ meeting could not be considered a on behalf of another client, the Mabalacat Institute, without the
violation of his client’s secrets and confidence within the foundation's written consent.
contemplation of Canon 21 of the Code of Professional — Here, the evidence shows that Hocorma Foundation availed
Responsibility. itself of the legal services of Atty. Funk in connection with,
among others, the transfer of one of the properties subject of
the several suits that the lawyer subsequently filed against the
— We find no conflict of interest when respondent represented foundation. Indeed, Atty. Funk collected attorney's fees from
Soledad in a case filed by Comtech. The case where respondent the foundation for such services.
represents Soledad is an Estafa case filed by Comtech against its — An attorney may not, without being guilty of professional
former officer. There was nothing in the records that would misconduct, act as counsel for a person whose interest conflicts
show that respondent used against Comtech any confidential with that of his present or former client. This rule is so absolute
information acquired while he was still Comtech’s retained that good faith and honest intention on the erring lawyer's
counsel. part does not make it inoperative.
— Further, respondent made the representation after the — The reason for this is that a lawyer acquires knowledge of
termination of his retainer agreement with Comtech. A his former client's doings, whether documented or not, that he
lawyer’s immutable duty to a former client does not cover would ordinarily not have acquired were it not for the trust
transactions that occurred beyond the lawyer’s employment with and confidence that his client placed on him in the light of
the client. their relationship.
— The intent of the law is to impose upon the lawyer the duty to
protect the client’s interests only on matters that he previously — It would simply be impossible for the lawyer to identify and erase
handled for the former client and not for matters that arose after such entrusted ledge with faultless precision or lock the same into
the lawyer-client relationship has terminated. an iron box when suing the former client on behalf of a new one.

Santos Ventura Hocorma Foundation, Inc. v. Atty. Funk, A.C. Hornilla v. Atty. Salunat A.C. No. 5804, July 1, 2003
No. 9094 August 15, 2012 — They alleged that respondent is a member of the ASSA Law
— It alleged that Atty. Funk used to work as corporate secretary, and Associates, which was the retained counsel of the Philippine
counsel, chief executive officer, and trustee of the Santos Ventura Public School Teachers Association (PPSTA). Respondent’s
Hocorma foundation from 1983 to 1985. He also served as its brother, Aurelio S. Salunat, was a member of the PPSTA Board
counsel in several criminal and civil cases. which approved respondent’s engagement as retained counsel of
— Hocorma Foundation further alleged that on November 25, PPSTA.
2006 Atty. Funk filed an action for quieting of title and damages — Complainants, who are members of the PPSTA, filed an
against Hocorma Foundation on behalf of Mabalacat Institute, intra-corporate case against its members of the Board of
Inc. (Mabalacat Institute). Atty. Funk did so, according to the Directors for the terms 1992-1995 and 1995-1997 before the
Securities and Exchange Commission. which was docketed as tantamount to representing conflicting interests, which is
SEC Case No. 05-97-5657, and a complaint before the Office of prohibited by the Code of Professional Responsibility.
the Ombudsman, docketed as OMB Case No. 0-97-0695, for — The interest of the corporate client is paramount and should
unlawful spending and the undervalued sale of real property of not be influenced by any interest of the individual corporate
the PPSTA. officials.
— Respondent entered his appearance as counsel for the PPSTA
Board members in the said cases. Corporation cannot “consent” to a representation of a lawyer
— Complainants contend that respondent was guilty of conflict of with COI
interest because he was engaged by the PPSTA, of which — The cases and ethics opinions differ on whether there must be
complainants were members, and was being paid out of its separate representation from the outset or merely from the time
corporate funds where complainants have contributed. Despite the corporation seeks to take an active role. Furthermore, this
being told by PPSTA members of the said conflict of interest, restriction on dual representation should not be waivable by
respondent refused to withdraw his appearance in the said consent in the usual way; the corporation should be
cases. presumptively incapable of giving valid consent.
— Respondent admits that the ASSA Law Firm, of which he is — Outside counsel must thus be retained to represent one of the
the Managing Partner, was the retained counsel of PPSTA. defendants.
Yet, he appeared as counsel of record for the respondent — Rule 15.03. - A lawyer shall not represent conflicting interests
Board of Directors in the said case. Clearly, respondent was except by written consent of all concerned given after a full
guilty of conflict of interest when he represented the parties disclosure of the facts.
against whom his other client, the PPSTA, filed suit.
Quiambao v. Atty. Nestor Bamba A. C. No. 6708 August 25, 2005
What is a “derivative suit”? — Complainant Felicitas S. Quiambao charges respondent Atty.
— Where corporate directors have committed a breach of trust Nestor A. Bamba with violation of the Code of Professional
either by their frauds, ultra vires acts, or negligence, and the Responsibility for representing conflicting interests when the
corporation is unable or unwilling to institute suit to remedy the latter filed a case against her while he was at that time
wrong, a stockholder may sue on behalf of himself and other representing her in another case, and for committing other acts
stockholders and for the benefit of the corporation, to bring of disloyalty and double-dealing.
about a redress of the wrong done directly to the corporation and — The complainant was the president and managing director of
indirectly to the stockholders. Allied Investigation Bureau, Inc. (AIB), a family-owned
— This is what is known as a derivative suit, and settled is the corporation engaged in providing security and investigation
doctrine that in a derivative suit, the corporation is the real party services. She avers that she procured the legal services of the
in interest while the stockholder filing suit for the corporation’s respondent not only for the corporate affairs of AIB but also
behalf is only nominal party. The corporation should be included for her personal case.
as a party in the suit. — Particularly, the Spouses Santiago and Florita Torroba filed by
her on 29 December 2000 before the Metropolitan Trial Court
— A lawyer engaged as counsel for a corporation cannot represent (MeTC) of Parañaque City.
members of the same corporation’s board of directors in a — About six months after she resigned as AIB president, or on 14
derivative suit brought against them. To do so would be June 2001, the respondent filed on behalf of AIB a complaint for
replevin and damages against her before the MeTC of Quezon — In 1995, complainant engaged the services of respondent as
City for the purpose of recovering from her the car of AIB counsel in order to form a corporation.
assigned to her as a service vehicle. This he did without — On January 10, 1996, with the assistance of Atty. De Dios,
withdrawing as counsel of record in the ejectment case, which complainant registered Suzuki Beach Hotel, Inc. (SBHI) with the
was then still pending. Securities and Exchange Commission.
— We do not sustain respondent’s theory that since the ejectment — On December 15, 1997, the corporation required complainant
case and the replevin case are unrelated cases fraught with to pay her unpaid subscribed shares of stock amounting to two
different issues, parties, and subject matters, the prohibition is million two hundred and thirty five thousand pesos
inapplicable. His representation of opposing clients in both (P2,235,000.00) or 22,350 shares, on or before December 30,
cases, though unrelated, obviously constitutes conflict of interest 1997.
or, at the least, invites suspicion of double-dealing. — Complainant soon learned that her shares had been acquired
— While the respondent may assert that the complainant by Ramon del Rosario, one of the incorporators of SBHI. The
expressly consented to his continued representation in the sale ousted complainant from the corporation completely. While
ejectment case, the respondent failed to show that he fully respondent rose to be president of the corporation,
disclosed the facts to both his clients and he failed to present complainant lost all her life's savings invested therein.
any written consent of the complainant and AIB as required — Complainant alleged that she relied on the advice of Atty. de Dios
under Rule 15.03, Canon 15 of the Code of Professional and believed that as the majority stockholder, Atty. de Dios
Responsibility. would help her with the management of the corporation.
— Neither can we accept respondent’s plea that he was duty- — Complainant pointed out that respondent appeared as her
bound to handle all the cases referred to him by AIB, including counsel and signed pleadings in a case where complainant was
the personal cases of its officers which had no connection to one of the parties. Respondent, however, explained that she
its corporate affairs. That the representation of conflicting only appeared because the property involved belonged to
interest is in good faith and with honest intention on the part of SBHI.
the lawyer does not make the prohibition inoperative. — Respondent alleged that complainant misunderstood the role of
respondent as legal counsel of Suzuki Beach Hotel, Inc.
Extent or degree of prohibition on representing COI Respondent manifested that her appearance as counsel for
— It must be noted that the proscription against representation of complainant Diana de Guzman was to protect the rights and
conflicting interests finds application where the conflicting interest of SBHI since the latter was the real owner of the
interests arise with respect to the same general matter however land in controversy.
slight the adverse interest may be. — Respondent claims that there was no attorney-client relationship
— It applies even if the conflict pertains to the lawyer’s private between her and complainant. The claim has no merit. It was
activity or in the performance of a function in a non- complainant who retained respondent to form a corporation.
professional capacity. She appeared as counsel in behalf of complainant.
— The present situation shows a clear case of conflict of interest of
— Business transactions between an attorney and his client are the respondent.
disfavored and discouraged by the policy of the law.

De Guzman v. Atty. L. De Dios, A.C. No. 4943 January 26, 2001

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