3.

The Lawyer and the Court c) Higher duty to the court: a lawyer’s duties to
a. Canons 10-13 the court are more significant than those
a.1 Candor, fairness, and good faith towards the which he owes his client.
courts d) Proper attitude [Canon 10]: “A lawyer owes
a.2 Respect for courts and judicial officers candor, fairness and good faith to the
a.3 Assistance in the speedy and efficient Court.”
administration of justice
a.4 Reliance on merits of his cause and avoidance III. Requirements of CANDOR:
of any impropriety which tends to influence or gives a) A lawyer shall not suppress material and
the appearance of influence upon the courts vital facts which bear on the merit or lack of
merit of complaint or petition.
4. The Lawyer and his Clients b) A lawyer shall volunteer to the court any
a. Canons 14-22 development of the case which has
a.1 Availability of service without discrimination rendered the issue raised moot and
a.2 Candor, fairness and loyalty to clients academic.
a.3 Client’s money and properties c) Disclosure to the court of any decision
a.4 Fidelity to client’s cause adverse to his position of which opposing
a.5 Competence and diligence counsel is apparently ignorant and which
a.6 Representation with zeal within legal bounds court should consider in deciding a case.
a.7 Attorney’s fees d) He shall not represent himself as a lawyer
a.8 Preservation of client’s confidences for a client, appear in court and present
a.9 Withdrawal of services pleadings in the latter’s behalf only to claim
later that he was not authorized to do so.
e) He shall not make a false order supposedly
3. THE LAWYER AND THE issued by a court.
COURT f) He shall not advise his clients to picket
before the courts, because those are
attempts to pressure or influence the courts
a. CANONS 10-13 of justice and constitute contempt of court.

RULE 10.01. A LAWYER SHALL NOT DO ANY

a.1 CANDOR, FAIRNESS AND GOOD FALSEHOOD, NOR CONSENT TO THE DOING
FAITH TOWARDS THE COURTS OF ANY IN COURT; NOR SHALL HE MISLEAD,
OR ALLOW THE COURT TO BE MISLED BY
CANON 10 – A LAWYER OWES CANDOR, ANY ARTIFICE.
FAIRNESS AND GOOD FAITH TO THE
COURT. 1. A lawyer must be a disciple of truth. He should
bear in mind that as an officer of the court his high
I. Rationale vocation is to correctly inform the court upon the
The burden cast on the judiciary would be law and the facts of the case and to aid it in doing
intolerable if it could not take at face value what is justice and arriving at correct conclusion; the
asserted by counsel. As officers of the court, courts are entitled to expect only complete
lawyers have the primary obligation towards the honesty from lawyers appearing and pleading
administration of justice. To mislead the court is before them.
contumacious and clearly a ground for disciplinary  While a lawyer has the solemn duty to
action. (Antiquiera, CPR, p. 39) defend his client’s cause, his conduct must
never be at the expense of truth. (Young v.
II. Aspects of the relationship between a lawyer Batuegas, A.C. No. 5379, 9 May 2003);
and the courts:  A lawyer owes fidelity to the cause of his
a) Basis: a lawyer is an officer of the court client but not at the expense of truth and the
exercising privileges indispensable to the administration of justice. (Garcia v.
administration of justice. Francisco, Adm. Case no. 3923, 30 March
b) Consequence: as an officer of the court, a 1993)
lawyer must therefore obey and respect
the court at all times. 2. Instances of FALSEHOOD that merited
discipline:
 a) Lawyers falsely stating in a deed of sale a) Lawyer’s Oath: #3. I will do no falsehood
that property is free from all liens and nor consent to the doing of any in court;206
encumbrances when it is not so. (Sevilla v. b) Lawyer’s Oath: #4. I will not wittingly or
Zoleta, A.C. No. 31, 28 March 1955); willingly promote or sue any groundless,
b) Lawyers making it appear that a person, false or unlawful suit, nor give aid nor
long dead, executed a deed of sale, in his consent to the same.
favor. (Monterey v. Arayata, Per. Rec. Nos c) Rule 1.01: A lawyer shall not engage in
3527, 3408, 23 August 1935); unlawful, dishonest, immoral or deceitful
c) Lawyer encashing a check payable to a conduct.
deceased cousin by signing the latter’s d) Violation of Art. 184 RPC [Offering false
name on the check. (In re: Samaniego, A.C. testimony in evidence]
No. 74, 20 November 1959)
d) Lawyer falsifying a power of attorney and RULE 10.02. A LAWYER SHALL NOT
used it in collecting the money due to the KNOWINGLY MISQUOTE OR MISREPRESENT
principal and appropriating the money for THE CONTENTS OF PAPER, THE LANGUAGE
his own benefit. (In re: Rusina, A.C. No. OR THE ARGUMENT OF OPPOSING COUNSEL,
270, 29 May 1959); OR THE TEXT OF A DECISION OR AUTHORITY,
e) Laywer alleging in one pleading that his OR KNOWINGLY CITE AS LAW A PROVISION
clients were merely lessees of the ALREADY RENDERED INOPERATIVE BY
property involved, and alleged in a later REPEAL OR AMENDMENT, OR ASSERT AS A
pleading that the same clients were the FACT THAT WHICH HAS NOT BEEN PROVED.
owners of the same property where there
are false allegations in the pleadings. 1. Rationale: If not faithfully and exactly quoted,
(Chavez v. Viola, GR No. 2152, 19 April the decisions and rulings of the court may lose
1991); their proper and correct meaning, to the
f) Lawyer uttering falsehood in a Motion to detriment of other courts, lawyers and the public
Dismiss. (Martin v. Moreno, A.C. No. 1432, who may thereby be misled.

21 May 1984);
g) Lawyer denying having received the 2. How should lawyers quote a Supreme Court
notice to file brief which is belied by the decision? “(I)n citing this Court’s decisions and
return card. (Ragasajo v. IAC, G.R. No. L- rulings, it is the bounden duty of courts, judges and
69129, 31 August 1987); lawyers to reproduce or copy the same word for
h) Lawyer presenting falsified documents in word and punctuation mark by punctuation
court which he knows to be false. mark.”
(Berenguer v. Carranza, A.C. No. 716, 30
January 1969);
 3. Scenarios:
i) Lawyer filing false charges or groundless a) A mere TYPOGRAPHICAL ERROR in the
suits. (Retuya v. Gorduiz, A.C. No. 1388, citation of an authority is NOT
28 March 1980);
 contemptuous.
j) Forum shopping: Crisostomo Et. Al v. b) Knowingly using an old law favorable to
Nazareno, 10 June 2014: Under Sec. 5, his client to mislead the court is unethical.
Rule 7 of the Rules of Court, the submission c) Quoting a portion of a decision saying it’s its
of false entries in a certification against ratio decidendi but it is actually the
forum shopping constitutes indirect or direct argument of one of the parties: at least, it
contempt of court, and subjects the erring shows lack of diligence.
counsel to the corresponding administrative
and criminal actions...In the realm of legal RULE 10.03. A LAWYER SHALL OBSERVE THE
ethics, said infraction may be considered as RULES OF PROCEDURE AND SHALL NOT
a violation of Rule 1.01, Canon 1 and Rule MISUSE THEM TO DEFEAT THE ENDS OF
10.01, Canon 10 of the Code of JUSTICE
 .
Professional Responsibility.
k) Making untruthful and false statements 1. Filing multiple actions constitutes an abuse of
before the court (Molina v. Magat, A.C. No. the Court’s processes. Those who filed multiple or
1900, 13 June 2012)
 repetitive actions subject themselves to
disciplinary action for incompetence or willful
3. Related Rules: violation of their duties as attorneys to act with all
good fidelity to the courts, and to maintain only
such actions that appear to be just and I. Rationale
consistent with truth and honor. (Pablo R. Olivares Disrespect toward the court would necessarily
etc. v. Atty. Arsenio Villalon Jr., A.C. No. 6323, 13 undermine the confidence of the people in the
April 2007)
 honesty and integrity of the members of the court,
and consequently to lower or degrade the
2. When can a lawyer be subjected to disciplinary administration of justice by the court.
actions after a pleading has been filed? When a a) All lawyers are expected to recognize the
counsel deliberately: authority of the Supreme Court and obey
a) Files an unsigned pleading in violation of its lawful processes and orders.
the rules;
 b) b. Despite errors which one may impute on
b) Alleges scandalous matters therein;
 the orders of the Court, these must be
c) Fails to promptly report to the court a respected, especially by the bar or the
change of his address. (Sec. 3, Rule 7, lawyers who are themselves officers of
Rules of Court).
 d. When a lawyer the courts. (Yap- Paras v. Atty. Paras, A.C.
habitually resets the case so that the No. 4947, 7 June 2007).
complainant would lose interest over it. c) c. In case of conflict between his duty to
the court and his duty to the society and his
3. Scenarios: client, the other must yield since it is his
a) A lawyer should not abuse his RIGHT OF duty to the court that should take
RECOURSE to the courts for the purpose precedence.

of arguing a cause that had been
repeatedly rebuffed. II. On the right of a lawyer to criticize the court and
b) Neither should he use his knowledge of law his freedom of speech, see Rule 11.04, infra.
as an instrument to harass a party;
c) nor to misuse judicial processes. RULE 11.01. A LAWYER SHALL APPEAR IN
COURT PROPERLY ATTIRED

RULE 10.04. A LAWYER SHALL, WHEN FILING
A PLEADING, FURNISH THE OPPOSING PARTY 1. As an officer of the court and in order to
WITH A COPY THEREOF, TOGETHER WITH ALL maintain the dignity and respectability of the
THE DOCUMENTS ANNEXED THERETO. legal profession, a lawyer who appears in court
UNLESS A MOTION IS EX PARTE, HE SHOULD must be properly attired.
SET IT FOR HEARING, WITH SUFFICIENT  Consequently, the court can hold a lawyer
NOTICE TO THE OTHER PARTY in contempt of court if he does not appear in
proper attire. Any deviation from the
1. The purpose of this rule is to avoid surprise and commonly accepted norm of dressing in
delays in cases. court is enough to warrant a citing for
contempt.
2. What is the rule on notice in case of motion?
The motion which contains the notice of hearing 2. The traditional attires:
shall be served in such a manner as to ensure its a) male lawyers: long-sleeve Barong
receipt by the other party at least three days Tagalog or coat and tie.
before the date of hearing, unless the court for b) female lawyers: semi-formal attires.

good cause sets the hearing on shorter notice c) Judges also appear in the same attire in
(Sec. 4, Rule 15, Rules of Court). addition to black robes.

RULE 11.02. A LAWYER SHALL PUNCTUALLY

a.2. RESPECT FOR COURTS AND APPEAR AT COURT HEARINGS

JUDICIAL OFFICERS
 Punctuality is demanded by the respect which a
lawyer owes to the court, the opposing counsel
CANON 11 – A LAWYER SHALL OBSERVE and to all the parties to the case. (Funa, 2009)
AND MAINTAIN THE RESPECT DUE TO THE
COURTS AND TO JUDICIAL OFFICERS AND RULE 11.03 – A LAWYER SHALL ABSTAIN
SHOULD INSIST ON SIMILAR CONDUCT BY FROM SCANDALOUS, OFFENSIVE OR
OTHERS.

MENACING LANGUAGE OR BEHAVIOR starts
BEFORE THE COURTS

c) Civil
1. Power of Contempt vs. Power to Disbar:  It is the failure to do something
 The power to punish for contempt and the ordered to be done by a court or a
power to disbar are separate and distinct, judge for the benefit of the
and that the exercise of one does not opposing party therein. It is
exclude the exercise of the other (People remedial in nature.
v. Godoy, G.R. Nos. 115908-09, March 29,
1995). d) Criminal
 Conduct directed against the
2. Kinds of Contempt: authority and dignity of a court or
a) Direct Contempt of a judge, as in unlawfully
 Consists of misbehavior in the assailing or discrediting the
presence of or so near a court or authority or dignity of a court or of a
judge as to interrupt or obstruct the judge, or in doing a duly forbidden
proceedings before the court or the act. Intent is necessary.

administration of justice; punished
summarily. 3. Two-fold aspect of Contempt Power (1998 Bar
 Examples: Question)
i. An imputation in a pleading of gross a) The proper punishment of the guilty party
ignorance against a court or its for his disrespect to the court or its order;
judge, especially in the absence of and
any evidence, is a serious allegation, b) To compel his performance of some act
and constitutes direct contempt of or duty required of him by the court which
court. he refuses to perform. NB: The question of
ii. Derogatory, offensive or malicious whether the contempt committed is civil or
statements contained in pleadings criminal, does not affect the jurisdiction
or written submissions presented to or the power of a court to punish the
the same court or judge in which the same (Halili v. CIR, G.R. No. L-24864, April
proceedings are pending are treated 30, 1985).

as direct contempt because they are
equivalent to a misbehavior 4. A practicing lawyer and officer of the court facing
committed in the presence of or so contempt proceedings cannot just be allowed to
near a court or judge as to interrupt voluntarily retire from the practice of law which
the administration of justice. This is would negate the inherent power of the court to
true, even if the derogatory, punish him for contempt (Montecillo v. Gica, 60
offensive or malicious statements SCRA 234).
are not read in open court (Habawel
and Medina v. Court of Tax Appeals, 5. If a judge, during trial, says something relevant, it
G.R. No. 174459, September 7, is the right of counsel to put on record said
2011). remarks for the protection of his witness and
client.
b) Indirect Contempt
 One committed away from the court 6. Scenarios under Rule 11.03:
involving disobedience of or resistance a) A lawyer shall abstain from scandalous,
to a lawful writ, process, order, judgment offensive or menacing language or
or command of the court, or tending to behavior before the courts. Use
belittle, degrade, obstruct, interrupt or expressions which are emphatic but
embarrass the court; not summary in respectful, convincing but not derogatory,
nature. EG: illuminating but not offensive. A lawyer’s
i. Defamatory statements against a language should be dignified in keeping
Justice constitute indirect contempt with the dignity of the legal profession.
ii. When a fight ensues between b) The duty to observe and maintain respect is
lawyers before the court session not a one-way duty from a lawyer to a
judge. A judge should also be courteous
 to counsel, especially those who are property and is thrown open to public
young and inexperienced and to all those consumption. NB: Apply here the principle
appearing or concerned in the of “fair and well-founded criticisms”
administration of justice. regarding decisions of the SC - Criticism or
c) “Respectful subordination” is expected of comment made in good faith on the
a lawyer as to his dealings with the court. correctness or wrongness, soundness or
d) Although a member of Congress has unsoundness, of a decision of the Court
violated the CPR, he cannot be would be welcome, if well-founded, and
administratively sanctioned because of his such reaction can enlighten the court and
parliamentary immunity. contribute to the correction of an error if
committed. This is usually done within the
7. Related Rules: judicial forum, not in media.
a) Canon 8: A LAWYER SHALL CONDUCT
HIMSELF WITH COURTESY, FAIRNESS c) The criticism should never harm the
AND CANDOR TOWARD HIS independence of the judiciary; besides
PROFESSIONAL COLLEAGUES, AND lawyers themselves are officers of the court;
SHALL AVOID HARASSING TACTICS their criticisms should not undermine the
AGAINST OPPOSING COUNSEL. Court’s honesty, integrity and competence;
b) Rule 8.01: A lawyer shall not, in his they should be the first to uphold the dignity
professional dealings, use language which and authority of this Court, to which they
is abusive, offensive or otherwise owe fidelity according to the oath they have
improper. taken as attorneys, and not to promote
c) Canon 11: A LAWYER SHALL OBSERVE distrust in the administration of justice.
AND MAINTAIN THE RESPECT DUE TO
THE COURTS AND TO JUDICIAL 3. Guidelines on criticizing the court:
OFFICERS AND SHOULD INSIST ON a) What (Rule 11.04)
SIMILAR CONDUCT BY OTHERS. i. Supported by the record; EG: TSNs
(submit pertinent portions of the
RULE 11.04. A LAWYER SHALL NOT transcript)
ATTRIBUTE TO A JUDGE, MOTIVES NOT ii. Material to the case: has a broader
SUPPORTED BY THE RECORD OR HAVE NO meaning under the CPR (compared to
MATERIALITY TO THE CASE
 the law on evidence) – may refer to the
conduct of the judge or official order of
1. The relations between counsel and judge should the judge (not necessarily evidentiary).
be based on mutual respect and on a deep
appreciation by one of the duties of the other. b) When: SUB JUDICE RULE applies
i. GR: When it is a pending case: it is not
2. Q: Can a lawyer criticize the courts? proper to comment on it;
A: Yes. The fact that a person is a lawyer does not ii. XPN: make a report on the
deprive him of the right, as enjoyed by every proceedings
citizen, to comment on and criticize the iii. NB: violation of the sub judice rule
actuations of a judge but it is the cardinal makes on liable for INDIRECT
condition of all criticisms that it shall be bona fide, contempt – it’s not a ground for
and shall not spill over the walls of decency and disbarment.
propriety. (Zaldivar v. Gonzales, G.R. Nos. 79690-
707, 1 February 1989). c) How (Rule 11.03): the language should not
be offensive, scandalous, or menacing; it is
a) For pending litigation: the court must be within the limits of decency & propriety
shielded from embarrassment and
influence; hence, the proper administration d) Where (Rule 11.05): direct grievances to
of justice is affected or influenced. the proper forums/ authority, i.e., IBP or
SC (only for judges), not the Ombudsman
b) For concluded litigation: the judge who (even if the salary grade is high)—unless
decided on it is subject to the same the lawyer occupies a government position.
criticism as any other public official If the party complainant did not avail of the
because then his ruling becomes public judicial remedies, SC dismisses the
 complaint outright (hence, appeal first or at lessening confidence in the legal
before going to SC). system.
e) Rule 11.04: A lawyer shall not attribute to a
4. How about the media? Judge motives not supported by the record
a) GR: it is not a proper forum; or have no materiality to the case.
b) XPN: only when you make a FAIR & f) Rule 11.05: Rule 11.05 - A lawyer shall
ACCURATE report of the submit grievances against a Judge to the
c) proceedings; no problem with interviews as proper authorities only.
long as you confine to the latter— they g) RULE 13.02 – A LAWYER SHALL NOT
cannot be opinion-based commentaries MAKE PUBLIC STATEMENTS IN THE
about the case.
 MEDIA REGARDING A PENDING CASE
TENDING TO AROUSE PUBLIC OPINION
5. This rule and the right to free speech: Freedom FOR OR AGAINST A PARTY.
of speech includes the right to know and
discuss judicial proceedings, but such right does RULE 11.05. A LAWYER SHALL SUBMIT
not cover statements aimed at: GRIEVANCES AGAINST A JUDGE TO THE
a) undermining the Court’s integrity and PROPER AUTHORITIES ONLY
authority, and
b) interfering with the administration of justice 1. Who are considered as the proper authorities?
 Freedom of speech is not absolute, (PhilJA)
and must occasionally be balanced with
the requirements of equally important NATURE OF THE WHERE TO FILE
public interests, such as the CASE
maintenance of the integrity of the If administrative in It shall be filed with the
courts and orderly functioning of the nature Office of the Court
administration of justice. Thus, the Administrator of the SC
making of contemptuous statements If criminal and not It shall be filed with the
directed against the Court is not an purely administrative Office of the
exercise of free speech; rather, it is Ombudsman
an abuse of such right. If it involves a Justice It must be coursed
of the Supreme Court through House of
6. If the court official or employee or a lawyer is to based on impeachable Representative and the
be disciplined, the evidence against him should be offenses Senate in accordance
substantial, competent and derived from direct with the rules on
knowledge, not on mere allegations, impeachment
conjectures, suppositions or on the basis of
hearsay. (Cervantes v. Atty. Sabio, A.C. No. 7828, An administrative complaint is not an appropriate
Aug. 11, 2008) remedy where judicial recourse is still available,
7. Related rules: such as a motion for reconsideration, an appeal, or
a) Canon 10: A LAWYER OWES CANDOR, a petition for certiorari, unless the assailed order or
FAIRNESS AND GOOD FAITH TO THE decision is tainted with fraud, malice, or dishonesty.
COURT.
 (Santiago III v. Justice Enriquez, Jr., A.M. No. CA-
b) Canon 11: A LAWYER SHALL OBSERVE 09-47-J, Feb. 13, 2009)

AND MAINTAIN THE RESPECT DUE TO
THE COURTS AND TO JUDICIAL 2. For the right to criticize the Courts, see Rule
OFFICERS AND SHOULD INSIST ON 11.04, supra. Specifically, for Rule 11.05, apply the
SIMILAR CONDUCT BY OTHERS.
 following principles:
c) Canon 13: A LAWYER SHALL RELY UPON a) The duty of the bar to support the judge
THE MERITS OF HIS CAUSE AND against unjust criticism and clamor does
REFRAIN FROM ANY IMPROPRIETY not, however, preclude a lawyer from
WHICH TENDS TO INFLUENCE, OR filing administrative complaints against
GIVES THE APPEARANCE OF erring judges or from acting as counsel for
INFLUENCING THE COURT clients who have legitimate grievances
d) Rule 1.02: A lawyer shall not counsel or against them.
abet activities aimed at defiance of the law b) But the lawyer should file charges
against the judge before the proper
 authorities only and only after the proper 1. The mere filing of several cases based on the
circumspection and without the use of same incident does not necessarily constitute
disrespectful language and offensive forum shopping. The question is whether the
personalities so as not to unduly burden several actions filed involve the same
the court in the discharge of its function. transactions, essential facts and
circumstances.

a.3 ASSISTANCE IN THE SPEEDY If they involve essentially different facts,

circumstances and causes of action, there is no
AND EFFICIENT ADMINISTRATION forum shopping (Paredes v. Sandiganbayan, G.R.
OF JUSTICE No. 108251, 31 January 1996). NB: (1991, 1998,
2002 Bar)
CANON 12 – A LAWYER SHALL EXERT
EVERY EFFORT AND CONSIDER IT HIS The essence of forum shopping is the filing of
DUTY TO ASSIST IN THE SPEEDY AND multiple suits involving the same parties for the
EFFICIENT ADMINISTRATION OF same cause of action, either simultaneously or
JUSTICE.
 successively, for the purpose of obtaining a
favorable judgment (Foronda v. Atty. Guerrero,
I. The filing of another action concerning the same A.C. No. 5469, 10 August 2004).
subject matter, in violation of the doctrine of res
judicata, runs contrary to this Canon (Lim v. If same evidence supports both actions, there is
Montano, A.C. No. 5653, 27 February 2006). also forum shopping. Hence, there is no forum
shopping if the causes of action are different.
A lawyer must properly advise his client not to
enter into a litigation knowing that the cause of 2. Possible consequences of forum shopping
action was already finally decided by courts in (1998 Bar):

previous cases, otherwise, he is guilty of a) Summary dismissal without prejudice
unprofessional conduct.
 unless there is a willful or deliberate
forum-shopping (Sec. 5, Rule 7, RRC).

II. Ratio: Litigation must end and terminate b) Penalty for direct contempt of court on the
sometime and somewhere, and it is essential to party and his lawyer in case of willful and
an effective and efficient administration of deliberate forum-shopping (Sec. 5, Rule 7,
justice that one a judgment has become final the RRC).

winning party be not, through subterfuge, deprive of c) Criminal action for a false certification of
that verdict. non-forum shopping and indirect
contempt
 .
RULE 12.01 – A LAWYER SHALL NOT APPEAR d) Disciplinary proceedings for the lawyer
FOR TRIAL UNLESS HE HAS ADEQUATELY concerned (Sec. 5, Rule 7, RRC).

PREPARED HIMSELF ON THE LAW AND THE
FACTS OF HIS CASE, THE EVIDENCE HE WILL 3. Instances of Forum shopping (2002 Bar)
ADDUCE AND THE ORDER OF ITS a) When, as a result of an adverse opinion
PREFERENCES. HE SHOULD ALSO BE READY in one forum, a party seeks a favorable
WITH THE ORIGINAL DOCUMENTS FOR opinion (other than by appeal or certiorari)
COMPARISON WITH THE COPIES in another. NB: the forum shopping can be
committed by a non-lawyer.
A newly hired counsel who appears in a case in the b) When he institutes two or more actions
midstream is presumed and obliged to acquaint or proceedings grounded on the same
himself with all the antecedent processes and cause, on the gamble that one or the other
proceedings that have transpired in the record prior court would make a favorable disposition”
to his takeover (Villasis v. CA, G.R. Nos. L- 36874- [Benguet Electric Cooperative, Inc. v. NEA,
76, 30 September 1974). 193 SCRA 250(1991)].
c) Filing a second suit in a court without
RULE 12.02 – A LAWYER SHALL NOT FILE jurisdiction [New Pangasinan Review, Inc.
MULTIPLE ACTIONS ARISING FROM THE SAME v. NLRC, 196 SCRA 55(1991)].
CAUSE
 d) Filing an action in court while the same
cause of action is still pending in an
 administrative proceeding [Earth Minerals with finality (Aguilar v. Manila Banking Corporation,
Exploration, Inc. v. Macaraig, 194 SCRA G.R. No. 157911, 19 September 2006).

1(1991)].
e) When counsel omits to disclose the 3. Lawyers should not resort to nor abet the
pendency of an appeal, in filing a resort of their clients, to a series of actions and
certiorari case [Collado vs. Hernando, 161 petitions for the purpose of thwarting the
SCRA 639 (1988)] execution of a judgment that has long become
final and executory (Perez v. Lantin, G.R. No. L-
RULE 12.03 – A LAWYER SHALL NOT, AFTER 22320, May 22, 1968).
OBTAINING EXTENSIONS OF TIME TO FILE
PLEADINGS, MEMORANDA OR BRIEFS, LET 4. The writs of amparo and habeas data are
THE PERIOD LAPSE WITHOUT SUBMITTING extraordinary remedies which cannot be used as
THE SAME OR OFFERING AN EXPLANATION tools to stall the execution of a final and
FOR HIS FAILURE TO DO SO executory decision in a property dispute (Castillo v.
Cruz, G.R. No. 182165, November 25, 2009).
1. The court censures the practice of counsels who
secure repeated extensions of time to file their RULE 12.05 – A LAWYER SHALL REFRAIN
pleadings and thereafter simply let the period FROM TALKING TO HIS
lapse without submitting the pleading or even an WITNESS DURING248 A BREAK OR RECESS IN
explanation or manifestation of their failure to do so THE TRIAL, WHILE THE WITNESS IS STILL
(Achacoso v. CA, G.R. No. L-35867, 28 June UNDER EXAMINATION

1973).

1. The rule is designed to uphold and maintain
2. Asking for extension of time must be in good fair play with the other party and to prevent the
faith. Otherwise, it is an obstruction of justice examining lawyer from being tempted to coach
and the lawyer is subject to discipline (CPR his own witness to suit his purpose.
Annotated, PhilJA).
2. Guidelines in interviewing witnesses (2001,
NB: the lawyer cannot blame his secretary, since 2005 Bar)

she is not a guardian of the lawyer’s a) A lawyer may interview a witness in
responsibilities. advance of the trial to guide him in the
management of the litigation;

The same rule applies more forcefully to motion b) A lawyer may also interview a “prospective
for continuance. Postponement is not a matter witness” for the opposing side in any civil
of right but of sound judicial discretion (Edrial v. and criminal action without the consent of
Quilat- Quilat, G.R. No. 133625, 6 September opposing counsel or party;
2000). c) A lawyer may properly obtain statements
from witnesses whose names were
RULE 12.04 – A LAWYER SHALL NOT UNDULY furnished by the opposing counsel or
DELAY A CASE, interview the employees of the opposing
IMPEDE THE EXECUTION OF A JUDGEMENT party even though they are under
OR MISUSE COURT PROCESSES subpoena to appear as witnesses for the
opposite side;
1. It is understandable for a party to make full use d) If after trial resulting in defendant’s
of every conceivable legal defense the law allows it. conviction, his counsel has been advised
However, of such attempts to evade liability to that a prosecution witness has committed
which a party should respond, it must ever be kept perjury, it is not only proper but it is the
in mind that procedural rules are intended as an lawyer’s duty to endeavor honorable
aid to justice, not as means for its frustration. means to obtain such witness’ reaction,
even without advising the public

 2. Once a judgment becomes final and executory, prosecutor of his purpose and even though
the prevailing party should not be denied the the case is pending appeal; and
fruits of his victory by some subterfuge devised e) An adverse party, though he may be used
by the losing party. Unjustified delay in the as a witness, is not however a witness
enforcement of a judgment sets at naught the role within the meaning of the rule permitting a
of the courts in disposing justiciable controversies
 lawyer to interview the witness of the e) When he is to violate the confidence of
opposing counsel. his client.

RULE 12.06 – A LAWYER SHALL NOT 3. Exceptions to Rule 12.08. Matters to which a
KNOWINGLY ASSIST A WITNESS TO lawyer CAN testify on:
MISREPRESENT HIMSELF OR TO a) On formal matters, such as the mailing,
IMPERSONATE ANOTHER
 authentication or custody of an instrument,
and the like, or
1. Sanctions to a lawyer who instructs a witness to b) On substantial matters, in cases where
perpetuate misrepresentation— Art. 184, Revised his testimony is essential250 to the ends
Penal Code provides: The lawyer who presented a of justice, in which event he must, during
witness knowing him to be a false witness is his testimony, entrust the trial of the case
criminally liable for “Offering False Testimony in to another counsel;
Evidence.” c) c. Acting as an Expert on his fee;
d) Acting as an Arbitrator; and

NB: The lawyer who is guilty of the above is both e) Deposition.
criminally and administratively liable.
a.4. RELIANCE ON MERITS OF CASE
2. Criminal liability of witness who commits
misrepresentation: The witness who commits the
AND AVOIDANCE FROM ANY
misrepresentation is criminally liable for “False IMPROPRIETY WHICH TENDS TO
Testimony” either under Art. 181 [criminal cases— INFLUENCE OR GIVES THE
False testimony favorable to the defendants], 182 APPEARANCE OF INFLUENCE UPON
[False testimony in civil cases] or 183 [Art. 183.
False testimony in other cases and PERJURY in THE COURTS
solemn affirmation], Revised Penal Code,
depending upon the nature of the case. CANON 13 – A LAWYER SHALL RELY
UPON THE MERITS OF HIS CAUSE AND
RULE 12.07 – A LAWYER SHALL NOT ABUSE, REFRAIN FROM ANY IMPROPRIETY WHICH
BROWBEAT OR TENDS TO INFLUENCE, OR GIVES THE
HARASS A WITNESS NOR NEEDLESSLY APPEARANCE OF INFLUENCING THE
INCONVENIENCE HIM COURT.

RULE 12.08 – A LAWYER SHALL AVOID I. Two kinds of independence in relation to judges:
TESTIFYING IN BEHALF OF HIS CLIENT, a) Individual independence of Judges; free
EXCEPT (infra)
 will to ascertain facts without external and
extraneous interference; not to give
1. (2001 Bar) Rationale: The function of a witness extraordinary attention to judge (EG:
is to tell the facts as he recalls them in answer to make him godfather of your child’s wedding)
questions. The function of an advocate is that of b) Institutional independence; freedom of
a partisan. It is difficult to distinguish between judges/courts from any influence from other
the zeal of an advocate and the fairness and branches of government; so they can try
impartiality of a disinterested witness.
 issues impartially for a better administration
of justice; that cases are resolved by
2. (2005 Bar) Matters to which a lawyer CANNOT merit, not by influence.

testify on [TARCC]
a) When, as an attorney, he is to testify on II. Fiscal autonomy of courts: EG: PDAF case
the theory of the case;
b) When such would adversely affect any III. Rule on lawyers talking to a judge [according to
lawful interest of the client with respect to Justice M. Fernandez]:
which confidence has been reposed on a) GR: lawyer should not talk to the judge
him; privately;
c) Having accepted a retainer, he cannot be b) XPN: he can do it in the presence of other
a witness against his client; party/counsel.

d) He cannot serve conflicting interests;
and

IV. It is unethical for a lawyer to give an RULE 13.02 – A LAWYER SHALL NOT MAKE
appearance as if he is capable of influencing PUBLIC STATEMENTS IN THE MEDIA
judges and court personnel. Giving of gifts to the REGARDING A PENDING CASE TENDING TO
judges are discouraged as it tend to give an AROUSE PUBLIC OPINION FOR OR AGAINST A
appearance of influencing the conduct of judicial PARTY (2003 Bar)
function of breeding familiarity with judges
(Antiquiera, 1992). 1. Prejudicial Publicity: There must be an
allegation and proof that the judges have been
V. Related rules: unduly influenced, not simply that they might be,
a) Section 3, Canon 4 of the New Code of by barrage of publicity (CPR Annotated, PhilJA).
Judicial Conduct for the Philippine
Judiciary: “judges shall, in their personal NB: The restriction does not prohibit issuances of
relations with individual members of the statements by public officials charged with the
legal profession who practice regularly in duty of prosecuting or defending actions in
their courts, avoid situations which might court.

reasonably give rise to the suspicion or
appearance of favoritism or partiality.” 2. See notes on criticizing the courts, supra, under
NB: a judge cannot act as a prosecutor. Rule 11.04.

b) NB: There is no ethical constraint against RULE 13.03 – A LAWYER SHALL NOT BROOK
a lawyer appearing before a judge who is OR INVITE INTERFERENCE BY ANOTHER
a relative, compadre or former office BRANCH258 OR AGENCY OF THE
colleague as long as the lawyer avoids GOVERNMENT IN THE NORMAL COURSE OF
giving the impression that he can JUDICIAL PROCEEDINGS

influence the judge. However, a judge is
required by the Code of Judicial Conduct 1. The reason for this rule is that such action will be
not to take part in any proceeding where contrary to the principle of separation of
his impartiality may be reasonably powers.

questioned (Rule 3.12 Code of Judicial
Conduct). Among the grounds for 2. The independence of the judiciary from
mandatory disqualification of the judge is interference is made to apply against all branches
if any of the lawyers is a relative by and agencies of the government (Funa, 2009).
consanguinity or affinity within the
fourth degree.

RULE 13.01 – A LAWYER SHALL NOT EXTEND 4. LAWYER’S DUTY TO

EXTRAORDINARY ATTENTION OR
HOSPITALITY TO, NOR SEEK OPPORTUNITY
THE CLIENTS
FOR CULTIVATING FAMILIARITY WITH
JUDGES

a. Canons 14-22
1. The rule is designed to protect the good name
and reputation of the judge and the lawyer.
On Duties and Responsibilities
2. A lawyer who resorts to practices of seeking of a Lawyer to the Clients
familiarity with judges dishonors his profession
and a judge who consents to them is unworthy of
I. What, in effect, does a lawyer represent to a
his high office.

client when he accepts a professional employment
for his services? (2003 Bar).
3. It is improper for a litigant or counsel to see a
A: By accepting a retainer, he impliedly represents
judge in chambers and talk to him about a
that
matter related to the case pending in the court of
a. He possesses the competence required for
said judge (Austria v. Masaquel, G.R. No. 22536,
the practice of his profession
August 31, 1967).
b. He will exert his best judgment in the
prosecution or defense of his client’s cause
 c. He will exercise reasonable and ordinary regarding the guilt of said person
diligence and (Rule 14.01), (1990, 1993, 1996,
d. He will take such steps as will adequately 2000, 2002, 2004, 2005, 2006 Bar)
guard his client’s interest iii. He shall not decline (representing the
In brief, that he will abide by his lawyer’s oath that indigent), except for serious and
he will conduct himself to the best of his efficient cause like:
knowledge and discretion with all good fidelity as a. If he is not in a position to
well to the courts as to his client.
 carry out the work
effectively or competently;
II. Three principal types of professional activity of a and
lawyer (LAP) b. If he labors under a conflict
a. Legal advice and instructions to clients to of interest between him and
inform them of their rights and obligations the prospective client or
b. Appearance for clients before public between a present client
tribunals which possess power and and the prospective client
authority to determine rights of life, liberty, (Rule 14.03)
property according to law in order to assist
in proper interpretation and enforcement of IV. Instances when a lawyer has the DUTY TO
law; and DECLINE employment (no matter how attractive
c. Preparation for clients of documents the fee offered may be) if its acceptance will
requiring knowledge of legal principles not involve: (RACCAA)
possessed by ordinary layman (CPR a. A violation of any Rules of the legal
Annotated, PhilJA). D profession;
b. Advocacy in any manner in which he had
III. On attorney-client relationship, see intro notes, intervened while in the government service
supra. c. Nullification of a Contract which he prepared
d. Employment with a Collection agency which
a.1 Availability of service without solicits business to collect claim
e. Employment, the nature of which might
discrimination easily be used as a means of Advertising
his professional services of his skill; or
CANON 14 – A LAWYER SHALL NOT f. Any matter in which he knows or has
REFUSE HIS SERVICES TO THE NEEDY. reasons to believe that he or his partner will
be an essential witness for the prospective
I. On availability of legal service client
a. Social responsibility of lawyers; not
prestige. V. Ethical considerations in taking a bad case
b. Public responsibility of rendering service, (1996, 2001 Bar):
even to indigents and the less-privileged. a. YES: Criminal case – a lawyer may accept
a losing criminal case because every
II. Rationale: The poor and indigent should not be accused is presumed innocent until proven
further disadvantaged by lack of access to the guilty and is entitled to counsel.
Philippine legal system. b. NO: Civil case – The rules and ethics of the
profession enjoin a lawyer from taking a bad
III. Lawyer’s right to decline employment: case. In all probability, a losing case is one
a. GR: A lawyer is not obliged to act as legal which has no basis or cause of action.
counsel for any person who may wish to Under the Attorney's Oath, the Code of
become his client. He has the right to Professional Responsibility and Rules of
decline employment. Court, it is the duty of a lawyer not to
b. XPNs: (when he cannot decline) promote or sue any groundless, false or
i. A lawyer shall not refuse his services unlawful suit, or give aid or consent to the
to the needy. (Canon 14) same.
ii. He shall not decline to represent a
person solely on account of the latter’s VI. Compare with number 5: Instances when a
race, sex, creed or status in life or lawyer may accept a losing case:
because of his own opinion
 c. a. A lawyer may accept a “losing” criminal matter of charity. It is a means for the
case since an accused is presumed to be correction of social imbalances that may
innocent until his guilt is proven beyond and often do lead to injustice, for which
reasonable doubt. Furthermore, CPR reason it is a public responsibility of the Bar.
provides that a lawyer shall not decline to The spirit of public service should, therefore,
represent a person because of his underlie all legal aid offices. The same
opinion regarding the guilt of said person. should be so administered as to give
Otherwise innocent persons might be maximum possible assistance to the
denied proper defense. (Rule 14.01, Code indigent and deserving members of the
of Professional Responsibility); community in all cases, matters and
d. b. A lawyer may also accept a losing civil situations in which legal aid may be
case, provided that, in so doing, he must necessary to forestall an injustice. (Public
not engage in dilatory tactics and must Service. Sec. 1 Art. 1 IBP Guidelines on
advise his client about the prospects and Legal Aid)
advantage of settling the case through a
compromise.
 SERVICES REGARDLESS OF A PERSON’S
STATUS:
VII. Reasons why a lawyer may NOT accept a
losing case: RULE 14.01 – A LAWYER SHALL NOT DECLINE
a. The attorney’s signature in every pleading TO REPRESENT A PERSON SOLELY ON
constitutes a certificate by him that there is ACCOUNT OF THE LATTER’S RACE, SEX,
good cause to support it and that it is not CREED OR STATUS OF LIFE, OR BECAUSE OF
interposed for delay, and willful violation of HIS OWN OPINION REGARDING THE GUILT OF
such rule shall subject him to disciplinary SAID PERSON
action;  Discussed under Canon 14
b. It is the attorney’s duty to “counsel or
maintain such actions or proceedings only SERVICES AS COUNSEL DE OFFICIO
as appears to him to be just and only such
defenses as he believes to be honestly RULE: 14.02 – A LAWYER SHALL NOT
debatable under the law”; DECLINE, EXCEPT FOR SERIOUS AND
c. A lawyer is not to encourage either the SUFFICIENT CAUSE, AN APPOINTMENT AS
commencement or the continuance of an COUNSEL DE OFICIO OR AS AMICUS CURIAE,
action or proceeding, or delay any man’s OR A REQUEST FROM THE INTEGRATED BAR
cause, for any corrupt motive or interest; OF THE PHILIPPINES OR ANY OF ITS
and CHAPTERS FOR RENDITION OF FREE LEGAL
d. A lawyer must decline to conduct a civil AID
cause or to make a defense when
convinced that it is intended merely to I. (Bar 1987) What is the protection given by law to
harass or injure the opposite party or to poor litigants who cannot afford the services of a
work oppression or wrong. lawyer?268 A court may assign an attorney to
render professional aid free of charge to any party
On legal aide in case, if upon investigation it appears that the
1. What are legal aid cases? party is destitute and unable to employ an attorney
 Legal Aid cases are those actions, disputes and that the services of counsel are necessary to
and controversies that are criminal, civil and secure the ends of justice and to protect the rights
administrative in nature in whatever stage, of the party. It shall be the duty of the attorney so
wherein an indigent and pauper litigants assigned to render the required service, unless he
need legal representation. is excused therefrom by the court for sufficient
cause shown. (Sec. 31, Rule 138, RRC)
2. What is the rationale for the establishment and
operation of legal aid offices in all chapters of the II. Who may be appointed as counsel de officio?
IBP? (2003 Bar) a. Members of the bar in good standing;
 It is based on the lawyer’s social and public b. Any person, resident of the province and of
responsibility to provide free legal services good repute for probity and ability, in
to destitute litigants who cannot hire private localities without lawyers.
lawyers to assist them. Legal aid is not a
III. What are considered in appointing a counsel de SAME271 STANDARD OF CONDUCT
officio? GOVERNING HIS RELATIONS WITH PAYING
a. a. Gravity of offense CLIENTS
b. Difficulty of questions that may arise; and
c. Experience and ability of appointee I. Lawyers who devote their professional practice to
representing litigants who could ill afford legal
IV. Differentiate the case to see if the counsel can services deserve commendation. However, it is not
refuse the appointment: enough to say that all pauper litigants should be
a. If it’s a criminal case—GR: he cannot assured of legal representation. They deserve
decline, except for “serious and sufficient quality representation as well. (Canoy v. Ortiz, A.C.
cause”: Example of the latter—“conflict of No. 5485, Mar. 16, 2005)
interest” with another client.
b. If it’s a civil case: a lawyer can decline if II. The fact that his services are rendered without
he believes the action or defense to be remuneration should not occasion a diminution in
unmeritorious. He is ethically bound to his zeal. (Ledesma v. Climaco, G.R. No. L-23815,
maintain only actions and proceedings June 28, 1974).
which appear to him to be just and only
such defenses which he believes to be III. NB: if a lawyer may have been negligent of his
honestly debatable under the law. work, but still exerted some effort to fulfill it, he is
liable only for simple neglect
VALID GROUNDS FOR REFUSAL:
a.2 Candor, fairness and loyalty to
RULE 14.03 – A LAWYER MAY NOT REFUSE TO
ACCEPT REPRESENTATION OF AN INDIGENT
clients
CLIENT UNLESS:
A. HE IS IN NO POSITION TO CARRY OUT CANON 15 – A LAWYER SHALL OBSERVE
THE WORK EFFECTIVELY OR CANDOR, FAIRNESS AND LOYALTY IN ALL
COMPETENTLY; HIS DEALINGS AND TRANSACTIONS WITH
B. HE LABORS UNDER A CONFLICT OF HIS CLIENTS.
INTEREST BETWEEN HIM AND THE
PROSPECTIVE CLIENT OR BETWEEN A
I. What does the CPR provide pertinent to the
PRESENT CLIENT AND THE
lawyer’s duty as regards his dealings and
PROSPECTIVE CLIENT
transactions with clients?
A: A lawyer owes absolute fidelity to the cause of
I. The preliminary ideas are discussed under Canon
his client. He owes his client full devotion to his
14, supra.
interest, warm zeal in the maintenance and defense
of his rights.

II. Rule 14.03 applies only to criminal cases
a. The defense of indigents applies only to
II. It demands of an attorney an undivided
criminal cases;
allegiance, a conspicuous and high degree of
b. If the client is a squatter, intruder or illegal
good faith, disinterestedness, candor, fairness,
occupant, whose claim to title of a land is
loyalty, fidelity and absolute integrity in all his
not a valid claim: he can refuse.
dealings and transactions with his clients and an
c. But if the indigent-complainant is the one utter renunciation of every personal advantage
offering you employment as a public
conflicting in any way, directly or indirectly, with
prosecutor? Lawyer can refuse, because
the interest of his client. (Oparel Sr. V. Abaria, A.C.
the lawyer can only work on the CIVIL (not
No. 959, July 30, 1971)

criminal) aspect of the case. Why? It is the
State that has the right to punish offenders.
III. If they find that their client’s cause is
He can refuse because it is only the civil
defenseless, then it is their bounden duty to
aspect that he can work on (not the criminal
advise the latter to acquiesce and submit rather
aspect, which is the duty of the prosecutor).
than to traverse the incontrovertible. (Rollon v.
Atty. Naraval, A.C. No. 6424, Mar. 4, 2005)
RULE 14.04 – A LAWYER WHO ACCEPTS THE
CAUSE OF A PERSON UNABLE TO PAY HIS
CONFIDENTIALITY RULE
PROFESSIONAL FEES SHALL OBSERVE THE
I. It means the relation between lawyer and client or a. To encourage a client to make a full
guardian and ward, or between spouses, with disclosure of the facts of the case to his
regard to the trust that is placed in the one by the counsel without fear, and
other (Black’s Law Dictionary 7th Edition 1990, b. To allow the lawyer freedom to obtain full
2004). information from his client (Pineda, 2009).
II. A lawyer shall preserve the confidences and
secrets of his client even after the attorney-client IV. Requisites of privileged communication:
relation is terminated (Canon 21, CPR). a. There is attorney-client relationship or a
kind of consultancy requirement with a
III. It is one of the duties of a lawyer, as provided for prospective client; NB: Mere relation of
in the Rules of Court, to maintain inviolate the attorney-client does not raise a presumption
confidence, and at every peril to himself, to of confidentiality. (Pineda, 2009) For an
preserve the secrets of his client (Sec. 20(e), Rule information to be considered as privileged, it
138, RRC). must be intended by the client as such.
(CPR Annotated, PhilJA)
IV. Coverage: all communications by the client in b. The communication was made by the client
the course of professional employment, or when he to the lawyer in the course of the lawyer’s
seeks legal advice. Hence, if lawyer is consulted professional employment; NB: it applies to
during a wedding ceremony, that is not in the prospective clients.
course of employment. c. The communication must be intended to be
confidential.
V. There needs to be an EXPRESS INTENTION to
keep the matters secret. If there is no intention, What is the test in determining whether a
there is no presumption of confidentiality. communication to an attorney is covered by the rule
on privileged communication?
PRIVILEGED COMMUNICATION A: The test is whether the communications are
made to an attorney with view of obtaining from him
RULE 15.02 – A LAWYER SHALL BE BOUND BY personal assistance or advice regardless of
THE RULE ON PRIVILEGE (sic) whether there is a pending or merely impending
COMMUNICATION IN RESPECT OF MATTERS litigation or any litigation.
DISCLOSED TO HIM BY A PROSPECTIVE
CLIENT V. Characteristics of privileged communication
(2013 Bar):
I. A privileged communication is one that refers to a. Attorney-client privilege where legal advice
information transmitted by voluntary act of is professionally sought from an attorney.
disclosure between attorney and client in b. The client must intend the above
confidence and by means of which, in so far as the communication to be confidential.
client is aware, discloses the information to no third c. Attorney-client privilege embraces all forms
person other than one reasonably necessary for the of communication and action.
transmission of the information or the d. As a general rule, attorney-client privilege
accomplishment of the purpose for which it was also extends to the attorney’s secretary,
given. stenographer, clerk or agent with reference
to any fact acquired in such capacity.
II. Related Rule—Sec 24, Rule 130: An attorney e. The above duty is perpetual and
cannot, without the consent of his client, be communication is absolutely privileged from
EXAMINED as to any communication made by the disclosure.
client to him, or his advice given thereon in the
course of, or with a view to, professional NB: Duration: The privilege continues to exist even
employment, nor can an attorney’s secretary, after the termination of the attorney-client
stenographer, or clerk be EXAMINED, without the relationship.
consent of the client and his employer, concerning
any fact the knowledge of which has been acquired NB: The privilege character of the communication
in such capacity. ceases only when waived by the client himself or
after his death, by his heir or legal representative
III. Two-fold purpose of the rule: (Lapena, Jr. 2009).
VI. Burden of proof: The party who avers that the d. When communication between attorney and
communication is privileged has the burden of proof client is heard by a third party;
to establish the existence of the privilege unless e. When there is consent or waiver of the
from the face of the document itself, it clearly client;
appears that it is privileged. The mere allegation f. When the law requires disclosure;
that the matter is privileged is not sufficient. (People g. When disclosure is made to protect the
v. Sleeper, G.R. No. 22783, Dec. 3, 1924; Lapena lawyer’s rights 

Jr., 2009)
NB: Even if the communication is unprivileged, the
VII. Coverage of the attorney-client privilege: rule of ethics prohibits lawyers from voluntarily
a. Lawyer; revealing or using to his benefit or to that of a third
b. Client; and person, to the disadvantage of the client, the said
c. Third persons who by reason of their work communication unless the client consents thereto.
have acquired information about the case (Sec. 3, Rule 138-A, RRC)
being handled such as:
i. Attorney’s secretary, stenographer X. Confidentiality vs. Privileged Communication
and clerk; a. Confidentiality: duty of the lawyer to keep
ii. Interpreter, messengers and agents confidential all information obtained, even
transmitting communication; and after the termination of ACR;
iii. An accountant, scientist, physician, b. Privileged communication: right of a lawyer
engineer who has been hired for and his legal staff not to be compelled to
effective consultation (Sec. 24(b), disclose information in the guise of
Rule 130, RRC). prosecution of crimes
i. Same requirements but privileged
VIII. The privilege is OWNED BY THE CLIENT. communication can also be invoked
You can use this to prevent an opposing counsel by the legal staff;
from being the counsel of the other party because ii. The same cannot cover information
of the privileged communication between them and relating to FUTURE CRIMES, or in
their former client. perpetuation of a fraud. Why? It is
a. This disqualification rule applies to not within the profession of a lawyer
prospective clients of a lawyer, even if the to advice one to commit a crime or
prospective client does not thereafter retain perpetrate fraud.
the lawyer or the latter declines the
employment. CONFLICT OF INTEREST
b. NB: When is client identity privileged? A:
Client identity is privileged where a strong RULE 15.03 – A LAWYER SHALL NOT
probability exists that revealing the client’s REPRESENT CONFLICTING INTERESTS
name would implicate that client in the very EXCEPT BY WRITTEN CONSENT OF ALL
activity for which he sought the lawyer’s CONCERNED GIVEN AFTER A FULL
advice. (Regala v. Sandiganbayan, G.R. DISCLOSURE OF THE FACTS.

No. 105938, Sept. 20, 1996)
c. Personal secrets revealed for the purpose I. What constitutes representing conflict of interest?
of seeking legal advice are covered by (1987, 1991, 1992, 1993, 1994, 1997 Bar).
attorney-client privilege. A: There is conflicting interest if there is
d. It covers crimes and offenses already inconsistency in the interests of two or more
committed by the client. opposing parties. The test is whether or not in
behalf of one client, it is the lawyer's duty to fight for
IX. When communication is not privileged: an issue or claim but it is his duty to oppose it for
a. After pleading has been filed because such the other client (Canon 6, Canons of Professional
becomes part of public records; Ethics).
b. When communication was intended by the
client to be sent to a third person through NB: Once a lawyer gives advice to someone, this
his counsel; rule may already arise, even if there was no
c. When the communication sought by client is compensation involved. To be guilty of representing
intended to aid future crime or perpetration conflicting interest:
of fraud;
 a. a counsel-of-record of one party need not [Yes: It is improper for a lawyer to appear as
also be counsel-of-record of the adverse counsel for one party against the adverse party
party. who is his client in another totally unrelated action]
b. He does not have to publicly hold himself as as long as the clients are the same—hence, the
the counsel of the adverse party, nor make best solution in case of doubt is to get the written
his efforts to advance the adverse party’s consent of all parties concerned. NB: the test is
conflicting interests of record—although probability, not certainty of conflict—whether the
these circumstances are the most obvious acceptance of a new relation would invite suspicion
and satisfactory proof of the charge. of unfaithfulness or double-dealing in the
c. It is enough that the counsel of one party performance of that duty.]
had a hand in the preparation of the
pleading of the other party, claiming IV. Rationale: The reason for the prohibition is
adverse and conflicting interests with that of found in the relation of attorney and client, which is
his original client. NB: in fact, it is enough one of trust and confidence of the highest degree.
that one was a former partner of a firm that A lawyer becomes familiar with all the facts
handle the case. connected with his client's case.
d. Possible conflict of interest is not terminated
by the death of the client—it may pass on to V. Possible causes of action against a lawyer who
his heirs. violated this rule to the prejudice of another:
e. The lawyer’s duty to avoid conflict of interest a. file an action to set aside the judgment;
extends to his wife, say, who is a CPA and b. file an action for damages against the
whose client has a claim against the lawyer;
lawyer’s client. c. file an administrative complaint on the
lawyer’s misconduct.
II. Rule on conflicting interests [Bar 2009]
a. GR: An attorney cannot represent diverse VI. Tests to determine conflict of interest (2009 Bar)
interests. It is highly improper to represent a. Conflicting Duties – When, on behalf of one
both sides of an issue. The proscription client, it is the attorney’s duty to contest for
against representation of conflicting interest that which his duty to another client requires
finds application where the conflicting him to oppose or when possibility of such
interest arise with respect to the same situation will develop;
general matter and is applicable however b. Invitation of Suspicion – Whether the
slight such adverse interest may be. It acceptance of the new relation will prevent
applies although the attorney’s intention and a lawyer from the full discharge of his duty
motives were honest and he acted in good of undivided fidelity and loyalty to his client
faith. or will invite suspicion of unfaithfulness or
b. XPN: Representation of conflicting interest double-dealing in the performance thereof;
may be allowed where the parties consent c. Use of Prior Knowledge Obtained –
(written consent) to the representation after Whether a lawyer will be called upon in his
full disclosure of facts. (Nakpil v. Valdez, new relation to use against the first client
A.C. No. 2040, Mar. 4, 1998). See next item any knowledge acquired in the previous
on written consent. employment.
c. XPN to XPN: where despite consent of
clients, they cannot be represented by the VII. Types of conflict of interest:
same lawyer when the conflict is: a. Concurrent or multiple representations –
i. Between the attorney’s interest and Generally occurs when a lawyer represents
that of a client; or clients whose objectives are adverse to
ii. Between a private client’s interests each other, no matter how slight or remote
and that of the government or any of such adverse interest may be. The following
its instrumentalities. are the TESTS for concurrent or multiple
III. More on written consent as an XPN: there is representations:
written consent of all concerned parties, although i. Whether a lawyer is duty-bound to
this bar problem does not show that the consent fight for an issue or claim in behalf
was written down. The rule seems to be strict of one client and, at the same time,
because it covers unrelated cases. to oppose that claim for the other
client;
 ii. Whether the acceptance of a new the same corporation’s Board of Directors in
relation would prevent the full a derivative suit brought against them.
discharge of the lawyer’s duty of
undivided fidelity or loyalty to the X. Effects of representing adverse interests:
client; a. Disqualification as counsel of new client on
iii. Whether the acceptance of new petition of former client; 

relation would invite suspicion of b. Where such is unknown to, and becomes
unfaithfulness or double-dealing in prejudicial to the interests of the new client,
the performance of the lawyer’s a judgment against such may, on that
duty of undivided fidelity and ground, be set aside; 

loyalty; and c. The attorney’s right to fees may be defeated
iv. Whether, in the acceptance of a if found to be related to such conflict and
new relation, the lawyer would be such was objected to by the former client, or
called upon to use against a client if there was a concealment and prejudice by
confidential information acquired reason of the attorney’s previous
through their connection. 
 professional relationship with the opposite
b. Sequential or successive representation – party; 

Involves representation by a law firm of a d. A lawyer can be held administratively liable
present client who may have an interest through disciplinary action and may be held
adverse to a prior or former client of the criminally liable for betrayal of trust.
firm. (CPR Annotated, PhilJA)
XI. Other matters on conflict of interest
VIII. Illustrations—Existence of conflict of Interest: a. Conflict search: It is examining the causes
a. A vs. B, where A and B are present clients. of action between the prospective client and
b. C vs. D; E vs. D, where C is the present the lawyer’s current clients.
client and D is not a present client in the b. Purpose of conflict search: By conducting a
same case but is a present client in another conflict search, the lawyer will be able to
case. 
 determine, in the first instance, if he is
c. F v. G; H v. G, where F is the present client barred from accepting the representation
and G was a former client and the cases are through conflicts with his present clients or
related. the lawyer’s own interest. (CPR Annotated,
d. I v. J; K v. J, where I is the present client PhilJA)
and J was a former client in a case that is
unrelated. 
 RULE 15.04 – A LAWYER MAY, WITH THE
e. L, M, N v. O, P, Q, where L, M, N are WRITTEN CONSENT OF
present clients but L and M joins O, P, Q. ALL CONCERNED, ACT AS MEDIATOR,
(People v. Davis) CONCILIATOR OR ARBITRATOR IN SETTLING
DISPUTES
9. Other instances of conflict of interest:
a. A corporate lawyer cannot join a labor union Where the lawyer performs the function of
of employees in that corporation; 
 mediator, conciliator, or arbitrator in disputes where
b. A lawyer of an insurance corporation who the lawyer labors under a conflict of interest, he
investigated an accident cannot represent remains subject to the requirement of a prior written
the complainant/injured person; 
 informed consent from all parties concerned. The
c. As a receiver of a corporation, he cannot requirement subsists even if the adverse interest is
represent the creditor; 
 very slight, and notwithstanding the lawyer’s honest
d. As a representative of the obligor, he cannot intention and motive. (CPR Annotated PhilJA)
represent the obligee; and 

e. As a lawyer representing a party in a CANDID AND HONEST ADVICE TO CLIENTS
compromise agreement, he cannot,
subsequently, be a lawyer representing RULE 15.05 – A LAWYER WHEN ADVISING HIS
another client who seeks to nullify the CLIENT, SHALL GIVE A CANDID AND HONEST
agreement. OPINION303 ON THE MERITS AND PROBABLE
f. A lawyer engaged as counsel for a RESULTS OF THE CLIENT’S CASE, NEITHER
corporation cannot represent members of OVERSTATING NOR UNDERSTATING THE
PROSPECTS OF THE CASE

 CHARGES TO OBTAIN AN IMPROPER
I. The lawyer must temper his client’s propensity to ADVANTAGE IN ANY CASE OR PROCEEDING
litigate. (Cobb-Perez v. Lantin, G.R. No. L-22320,
July 29, 1968). As officers of the court, counsels CONCURRENT PRACTICE OF ANOTHER
are under obligation to advise their clients against PROFESSION
making untenable and inconsistent claims. The
counsel should inform his client and dissuade him RULE 15.08 – A LAWYER WHO IS ENGAGED IN
from filing the case if it is totally devoid of merit. If ANOTHER PROFESSION OR OCCUPATION
he finds that his client’s cause is fairly meritorious CONCURRENTLY WITH THE PRACTICE OF
and ripe for judicial adjudication, he should refrain LAW SHALL MAKE CLEAR TO HIS CLIENT
from making bold and confident assurance of WHETHER HE IS ACTING AS A LAWYER OR IN
success. ANOTHER CAPACITY

II. As officers of the court, counsels are under the I. Rationale: Intended to avoid confusion; it is for
obligation to advise their client against making the benefit of both the client and the lawyer (Funa,
untenable and inconsistent claims. Lawyers are not 2009). NB: The lawyer should inform the client
merely hired employees who must unquestionably when he is acting as a lawyer and when he is not,
do the bidding of the client, however unreasonably because certain ethical considerations governing
this may be when tested by their own expert the client-lawyer relationship may be operative in
appreciation of the facts and applicable law and one case and not in the other. (Report of the IBP
jurisprudence. COUNSEL MUST COUNSEL. Committee, p.84)
(Periquet v NLRC, G.R. No. 91298, June 22, 1990).
II. A party’s engagement of his counsel in another
RULE 15.06 – A LAWYER SHALL NOT STATE capacity concurrent with the practice of law is not
OR IMPLY THAT HE IS ABLE TO INFLUENCE prohibited, so long as the roles being assumed by
ANY PUBLIC OFFICIAL, TRIBUNAL OR such counsel is made clear to the client. (New
LEGISLATIVE BODY Sampaguita Builder Construction, Inc. v. Philippine
National Bank, G.R. No. 148753, July 30, 2004)
This rule is known as [PROHIBITION AGAINST]
INFLUENCE- PEDDLING. It is improper for a *A Lawyer is not barred from dealing with his client
lawyer to show in any way that he has connections but the business transaction must be characterized
and can influence any tribunal or public official, with the utmost honesty and good faith. Business
judges, prosecutors, congressmen and others, transactions between an attorney and a client are
especially so if the purpose is to enhance his legal disfavored and discouraged by policy of law
standing and to entrench the confidence of the because by virtue of a lawyer’s office, he is an easy
client that his case or cases are assured of victory. position to take advantage of the credulity and
ignorance of his client. Thus, there is no
COMPLIANCE WITH LAWS presumption of innocence or improbability of wrong
doing in favor of lawyers. (Nakpil v. Valdez, A.C.
RULE 15.07 – A LAWYER SHALL IMPRESS No.2040, March 4, 1998)
UPON HIS CLIENT COMPLIANCE WITH THE
LAWS AND PRINCIPLES OF FAIRNESS a.3 Client’s money and properties
Scenarios:
I. Lawyers should not be permitted to resort to
unscrupulous practices for the protection of the CANON 16 – A LAWYER SHALL HOLD IN
supposed rights of their clients in order to defeat TRUST ALL MONEYS AND PROPERTIES OF
one of the purposes of the State: the administration HIS CLIENT THAT MAY COME INTO HIS
of justice. Why? They are first and foremost officers POSSESSION.

of the court.
I. Significance of the order of the rules on money
II. Related rule: RULE 19.01 – A LAWYER SHALL and properties of the client

EMPLOY ONLY FAIR AND HONEST MEANS306 a. When the lawyer receives money, his first
TO ATTAIN THE LAWFUL OBJECTIVES OF HIS duty is to account for it, not only to deliver
CLIENT AND SHALL NOT PRESENT, the same when due and when the client
PARTICIPATE IN PRESENTING OR THREATEN demands.
TO PRESENT UNFOUNDED CRIMINAL
 i. It is the ACCOUNTING that is virtue of his profession. Fraud need not be proven.
immediate. Account, if possible, on the But the prohibition applies only if the
same day; if it’s for a specific purpose, sale/assignment take place during the pendency of
it should be used for that alone.307 the litigation.
ii. It requires FORMAL, not mere moral, a. GR: What are the elements of prohibition
ACCOUNTING. against the purchase of property in
b. When the lawyer has accounted for the litigation under Art. 1491 of the NCC?
money, the next step is to DEPOSIT/KEEP i. There is an attorney-client
it within SAFE means & methods. relationship; 

i. Safest: bank deposit; in whose name? ii. The property is in litigation; 

It can be in the name of the lawyer but iii. The attorney is the counsel of
he should NOT COMMINGLE the record in the case; and 

same with his personal account. It iv. The attorney, by himself or
should be IN THE NAME OF the through an agent, purchases
client. (Note that even express such property during the
trustees hold properties in their name) pendency of said case.
ii. There should be SEPARATE b. XPNs: What are the instances where the
ACCOUNTS: the lawyer’s and his rule under Article 1491 of NCC is
clients’. inapplicable?
iii. To whom do interests earned belong? i. Where the property purchased
To the client, not the lawyer. by the lawyer was not involved
c. When is delivery of funds due? [Rule 16.03] in the litigation.
i. Upon demand; ii. Where the sale took place
ii. Upon WRITTEN contract executed before it became involved in the
between the lawyer and the client—it suit; 

depends on their contract, say, return iii. Where the attorney at the time
the money after six months. of the purchase was not the
counsel in the case; 

II. Money collected by the lawyer on a judgment iv. Where the purchaser of the
favorable to his client constitutes trust funds and property in litigation was a
should be immediately paid over to the client. corporation even though the
While Section 37, Rule 138 of the Rules of Court attorney was an officer thereof;
grants the lawyer a lien upon the funds, documents 

and papers of his client, which have lawfully come v. Where the sale took place after
into his possession, such that he may retain the the termination of the litigation;
same until his lawful fees and disbursements have 

been paid, and apply such funds to the satisfaction vi. A lawyer may accept an
thereof, the lawyer still has the responsibility to assignment from his client of a
promptly account to his client for such moneys money judgment rendered in the
received. Failure to do so constitutes professional latter’s favor in a case in which
misconduct. he was not counsel, in payment
of his professional services
NB: The lawyer’s failure to turn over such funds, performed in another case; 

moneys, or properties to the client despite the vii. In a contract for attorney’s fees
latter’s demands give rise to the presumption that contingent upon the outcome of
the lawyer had converted the money for his the litigation (contingent fee
personal use and benefit. This failure also renders arrangement); and 

the lawyer vulnerable to judicial contempt under viii. When any of the four elements
Section 25, Rule 138 of the Rules of Court. (CPR of Art. 1491 is missing. 

Annotated, PhilJA) c. Q: What are the effects of violation of such
provision?
III. Related Rules: Art 1491 NCC: a lawyer cannot i. Malpractice on the part of the
acquire or purchase, even at public or judicial lawyer and may be disciplined
auction, either in person or through the mediation of for misconduct; 

another the property and rights which may be the ii. Transaction is null and void.
object of any litigation in which he takes part by
IV. Other related Rules: liable if he fails in his obligation to make an
a. Canon 16: A LAWYER SHALL HOLD IN accounting of funds or property that may come to
TRUST ALL MONEYS AND his possession for a lawyer holds his client’s funds
PROPERTIES OF HIS CLIENT THAT or property in trust for his client.
MAY COME INTO HIS POSSESSION. a. How to best word it: The Code of
b. Canon 17: A LAWYER OWES Professional Responsibility mandates every
FIDELITY310 TO THE CAUSE OF HIS lawyer to hold in trust all money and
CLIENT AND HE SHALL BE MINDFUL OF properties of his client that may come into
THE TRUST AND CONFIDENCE311 his possession. A lawyer’s failure to return
REPOSED IN HIM. upon demand the funds or property held by
c. Rule 1.01: A lawyer shall not engage in him on behalf of his client gives rise to the
unlawful, dishonest, immoral or deceitful presumption that he has appropriated the
conduct. same for his own use to the prejudice of,
and in violation of the trust reposed in him
FIDUCIARY RELATIONSHIP by his client. Related Rule is 16.03.
b. What are the effects of lawyer’s failure to
RULE 16.01 – A LAWYER SHALL ACCOUNT return client’s money or property after
FOR ALL MONEY OR PROPERTY COLLECTED demand?
OR RECEIVED FOR OR FROM THE CLIENT i. There will be a presumption that
the lawyer misappropriated the
1. This rule refers to the FIDUCIARY same. 

RELATIONSHIP between the client and the lawyer. ii. It will give rise to civil liability of the
Hence, a lawyer must be scrupulously careful in lawyer. 

handling money entrusted to him in his professional iii. Criminal liability, infra.

capacity, because of the high degree of fidelity and iv. Administrative liability
good faith expected on his part. (Medina v. c. Q: What is the remedy of the client?
Bautista, A.C. No. 190, Sept. 26, 1964). Therefore, A: Recover property from lawyer, together
a lawyer’s inexcusable act of withholding the with its fruits, subject to client’s returning to
property of client and imposing unwarranted fees in his lawyer the purchase price thereof and
exchange for release of documents deserve the the legal interests thereon.
imposition of disciplinary action (Miranda v. Carpio,
A.C. No. 6281, September 26, 2011) 5. What are the requisites for the liability of a lawyer
for damages?
2. What is the nature of attorney-client relationship? a. Attorney-client relationship;
A: An attorney-client privilege is highly fiduciary as b. Want of reasonable care and diligence by
it is founded on trust and confidence where the lawyer; and 

lawyer acts as the trustee and the client acting as c. Injury sustained by client as a proximate
trustor in regard to the matter subject of the result of the lawyer’s negligence.
professional engagement. (Antiquiera, 2007). See
more on A-C relationship under Practice of Law, 6. When will civil liability arise?
supra. a. Client is prejudiced by lawyer’s negligence
or misconduct; 

3. What is fiduciary duty? b. Breach of fiduciary obligation; 

A: The principle that an attorney derives no undue c. Civil liability to third persons;
advantage that may operate to the prejudice or d. Libelous words in pleadings;
cause an occasion for loss of a client. The e. Violation of communication privilege; 

relationship between the lawyer and client is one of f. Liability for costs of suit (Treble Costs) –
mutual trust and confidence of the highest degree. when lawyer is made liable for insisting on
The relationship being highly fiduciary in nature, it client’s patently unmeritorious case or
requires utmost good faith, loyalty, fidelity and interposing appeal merely to delay litigation:
disinterestedness on the part of the attorney. Its Who is liable for the payment of costs of
fiduciary nature is intended for the protection of suits?
the client. i. GR: Losing client and not the lawyer
is liable for costs of suit in favor of
4. When will the liability of a lawyer for “breach of prevailing party, the lawyer not being
fiduciary obligation” arise? A: A lawyer may be held a party-litigant.
 ii. XPN: Where the lawyer insisted on 9. Scenarios:
client’s patently unmeritorious case a. Money collected for the client should be
or interposed an appeal to delay reported and accounted for
litigation or thwart prompt promptly/immediately.
satisfaction of prevailing party’s just b. For misappropriating and failing to promptly
and valid claim, the court may report and deliver the money received on
adjudge lawyer to pay treble costs of behalf of the children of his clients, a lawyer
suit. may be disbarred or suspended for six
months.
7. What are the kinds of damages that may be
awarded to the client?
 CO-MINGLING OF FUNDS
a. Nominal – where client lost the litigation as
a consequence of lawyer’s gross omission RULE 16.02 – A LAWYER SHALL KEEP THE
or negligence; 
 FUNDS OF EACH CLIENT SEPARATE AND
b. Actual/Compensatory 
 APART FROM HIS OWN AND THOSE OF
c. Moral 
 OTHERS KEPT BY HIM
d. Attorney’s fees 

1. Failure of the lawyer to account all the funds and
*For b to d, there should be a showing that: property of his client which may come into his
i. The lawyer had exercised due diligence; 
 possession would amount to misappropriation
ii. His client would have succeeded in which may subject him to disbarment on the ground
recovering from adverse party. of grave misconduct or a criminal prosecution for
estafa under Art. 315, par. 1(b) of the RPC.
8. When will criminal liability exist?
A: A lawyer may be held criminally liable if he 2. Scenarios:
commits any of the following: a. In dealing with trust property, a lawyer
a. Causing prejudice to the client thru should be very scrupulous. Money or other
malicious breach of professional duty or thru trust property of the client coming into the
inexcusable negligence or ignorance; 
 possession of the lawyer should be reported
b. Revealing client’s secrets learned in by the latter and account any
lawyer’s professional capacity thru circumstances, and should not be
malicious breach of professional duty or commingled with his own or be used by him.
inexcusable negligence or ignorance; 
 b. Even if he intends to issue a personal check
c. A lawyer who has undertaken the defense later for his client, he should not deposit
of a client or has received confidential cash meant for the latter in his own bank
information from said client in a case may account.
be criminally liable for undertaking defense
of opposing party in same cause without DELIVERY OF FUNDS
consent of first client; (Art. 209,316 RPC:
Betrayal of trust by an attorney or solicitor.) RULE 16.03 – A LAWYER SHALL DELIVER THE
d. A lawyer who shall knowingly introduce in FUNDS AND PROPERTY OF HIS CLIENT WHEN
evidence in any judicial proceeding or to the DUE OR UPON DEMAND. HOWEVER, HE
damage of another or who, with intent to SHALL HAVE A LIEN OVER THE FUNDS AND
cause such damage, shall use any false MAY APPLY SO MUCH THEREOF AS MAY BE
document may be held criminally liable NECESSARY TO SATISFY HIS LAWFUL FEES
therefor; (Art. 172,317 RPC: Falsification by AND DISBURSEMENTS, GIVING NOTICE
private individual and use of falsified PROMPTLY THEREAFTER TO HIS CLIENT. HE
documents) and SHALL ALSO HAVE A LIEN TO THE SAME
e. A lawyer who is appropriates his client’s EXTENT ON ALL JUDGEMENTS AND
funds may be held liable for estafa. (Art EXECUTIONS HE HAS SECURED FOR HIS
315) *NB: When a lawyer collects or CLIENT AS PROVIDED FOR IN THE RULES OF
receives money from his client for a COURT
particular purpose, he should promptly
account to the client how the money was 1. Delivery of funds and property when due or upon
spent.318 demand is discussed under Rule 16.01, supra.
2. Attorney’s Lien is discussed under Canon 20, 1. Concept: The lawyer owes entire devotion to the
infra. interest of the client, warm zeal in the maintenance
and defense of his rights and the exertion of his
BORROWING OR LENDING utmost learning and ability, to the end that nothing
be taken or be withheld from him, save by the rules
RULE 16.04 – A LAWYER SHALL NOT BORROW of law, legally applied.
MONEY FROM HIS CLIENT UNLESS THE
CLIENT’S INTERESTS ARE FULLY PROTECTED 2. NCC rules on unenforceable contracts are
BY THE NATURE OF THE CASE OR BY applicable to the Attorney-Client Relationship
INDEPENDENT ADVICE. NEITHER SHALL A (ACR), to wit:
LAWYER LEND MONEY TO A CLIENT EXCEPT, a. When the lawyer did not have authority to
WHEN IN THE INTEREST OF JUSTICE, HE HAS represent the client, the same can be
TO ADVANCE NECESSARY EXPENSES IN A RATIFIED by the client or it is susceptible to
LEGAL MATTER HE IS HANDLING FOR THE the application of the doctrine of
CLIENT ESTOPPEL (just like in corporation law,
ultra vires acts of a director can be ratified
1. LAWYER BORROWING: Is a lawyer allowed to by the corporation).
borrow money from his client? b. As to estoppel, is it applicable if there is
A: No, unless the client’s interests are fully estoppel on the part of the client? No,
protected by the nature of the case or by because it is expressly mandated that it
independent advice. should be a WRITTEN CONSENT.

NB: While the lawyer may borrow money from his 3. This Rule on fidelity & loyalty continues EVEN
client, where the client’s interests are fully protected UNTIL THE TERMINATION of the ACR, i.e., all
by the nature of the case he is handling for the secrets obtained in such ACR should be kept
client, or by independent advice from another secret. It is not a good practice for lawyers to fight
lawyer, he should not abuse the client’s confidence former clients.
by delaying payment. (Alindogan v. Geron, G.R. a. This is related to the fiduciary relationship
Admin. Case No. 221, May 21, 1958). NB: Not between the lawyer and his client. Hence,
prohibited: advances for necessary expenses. the client can dismiss the lawyer’s services
on the ground of loss of confidence in him.
2. LAWYER LENDING: Is a lawyer allowed to lend And if the dismissal is for a valid reason, the
money from his client? lawyer loses his right to claim attorney’s
A: No, except when in the interest of justice, he has fees.
to advance necessary expenses in a legal matter b. This fiduciary relationship and rule on
he is handling for the client. (Rule 16.04, Code of fidelity and loyalty is reposed on the law firm
Professional Responsibiility). managing the case, not on the individual
lawyer in the firm who handled the case.
NB: Prohibition from lending is intended to assure
the lawyer’s independent professional judgment, for 4. Scenarios:
if the lawyer acquires a financial interest in the a. The delay (lack of devotion with his work) of
outcome of the case the free exercise of his the lawyer in advising his client on the
judgment may be adversely affected. (Agpalo, barangay conciliation procedure turned him
2004; Comment of IBP Committee that drafted the from being a complainant to a defendant;
Code, p. 90) indolence on the part of the lawyer.
b. If a lawyer allowed his client to plead not-
a.4 Fidelity to client’s cause guilty without questioning an invalid arrest.

CANON 17 – A LAWYER OWES FIDELITY a.5 Competence and diligence

TO THE CAUSE
OF HIS CLIENT AND HE SHALL BE CANON 18 – A LAWYER SHALL SERVE HIS
MINDFUL OF THE TRUST AND CLIENT WITH COMPETENCE AND
CONFIDENCE REPOSED IN HIM. DILIGENCE.

1. On the concept of competence & diligence:

 a. Competence: covers acts of the lawyer at the
ONSET of acceptance of the case. The 3. When the client is the one negligent
competence required in the Canon goes a. File a manifestation to withdraw appearance
beyond formal qualification of the lawyer to due to NON- COOPERATION (to be
practice law. It has to do with sufficiency of excused from further appearing). This is part
the lawyer’s qualifications to deal with the of the diligence of a lawyer.
matter in question and includes knowledge
and skill and the ability to use them NB: The court may direct a client to SHOW
effectively in the interest of the client. CAUSE, bring in a new lawyer, who may
have the opportunity to request for a
b. Diligence: virtue of a lawyer the MOMENT he resetting of the hearing.
accepts and it CONTINUES until the end of
the attorney-client relationship (ACR) b. The client also has a DUTY to be vigilant. He
i. Diligence is the attention and care cannot simply rely on the information given to
required of a person in a given him.
situation and is the opposite331 of c. If the lawyer, in this case, is EQUALLY
negligence.332 It is axiomatic in the NEGLIGENT, only an administrative case
practice of law that the price of can be filed against him, not a civil case for
success is eternal diligence333 to damages. In short:
the cause of the client (Edquibal v. i. Sole negligence of a lawyer:
Ferrer, A.C. No. 5687, February 3, damages can be included;
2005). ii. Lawyer is equally negligent with
ii. Degree of diligence required in the client: only admin. case.
profession: DGFF — The legal 4. Scenarios related to competence & diligence:
profession demands of a lawyer that a. Failure to file position paper under the Rules
degree of vigilance and attention of on Summary Procedure (RSP): This is
a good father of a family (Lapena, negligence on the part of the lawyer. Why?
2009) or ordinary pater familias Position papers under the RSP take the
(Pineda, 2009). He is not required to place of offer of evidence.
exercise extraordinary diligence b. If the case is losing, does the lawyer have
(Edquibal v. Ferrer, Jr., A.C. No. discretion not to appeal? No. It is the client’s
5687, February 3, 2005). decision to appeal or not.
c. If the appellant’s brief does not contain an
NB: An attorney is not expected to assignment of errors, that’s a violation of
know all the laws. He is not liable for diligence on the lawyer. Why? The same is
disbarment for an honest mistake or mandatory for appellant briefs, and its
error. He is not an insurer of the absence is a ground for dismissal.
result in a case where he is engaged d. How frequent shall the lawyer wait for the
in as a counsel. Only ordinary care client to ask for information before sending
and diligence is required of him. him one? It depends on the DEVELOPMENT
iii. The rule on command responsibility OF THE CASE. He should update the client
is applicable, as to: law firms— of every stage of the proceeding. There is no
senior partners cannot put the need to wait for the client to ask, say, if he
blame on their associates. received an Answer.
e. Even if the client says he is guilty, the lawyer
2. When a lawyer can decline a case based on should be diligent in handling the case.335
competence: He has to follow these steps to ensure that
a. Heavy workload; the constitutional rights of his client are
b. Educational background; protected and the procedure for the proper
c. Psychological fitness; administration of justice is effected.
d. Ill-health; physical health f. When the counsel fails to file the needed
court pleadings, like an opposition to a
NB: How about RELIGIOUS reasons? If it’s for the demurrer to evidence.
PROTECTION of the RIGHTS of the client, he
should accept. If it’s for a long period of employment, COLLABORATING COUNSEL
he could decline.
RULE 18.01 – A LAWYER SHALL NOT entrusted with the duty to protect the rights of his
UNDERTAKE A LEGAL SERVICE WHICH HE clients. “A lawyer shall not undertake a legal service
KNOWS OR SHOULD KNOW THAT HE IS NOT where he knows or should know that he is not
QUALIFIED TO RENDER. HOWEVER, HE MAY qualified to render” (Rule 18.01, CPR). If he does so,
RENDER SUCH SERVICE IF, WITH THE it constitutes malpractice or gross misconduct in
CONSENT OF HIS CLIENT, HE CAN OBTAIN AS office which are grounds for suspension or
COLLABORATING COUNSEL A LAWYER WHO disbarment under Section 27, Rule 138 of the Rules
IS COMPETENT ON THE MATTER of Court.

1. (2001 Bar) What is the implication of lawyer’s ADEQUATE PREPARATION

acceptance of cases?
A: The lawyer’s acceptance, whether for a fee or not, RULE 18.02 – A LAWYER SHALL NOT HANDLE
is an implied representation that he possesses the ANY LEGAL MATTER WITHOUT ADEQUATE
requisite degree of academic learning, skill and PREPARATION
ability to handle the case. He is therefore directed
not to take legal services, which he knows or should 1. The counsel must constantly keep in mind that his
know he is not qualified or competent to render actions or omissions, even malfeasance and
except if his client consents, the lawyer can take as nonfeasance would be binding to his client. Verily, a
collaborating counsel another lawyer who is lawyer owes to the client the exercise of utmost
competent on the matter. prudence and responsibility in representation.
(Fernandez v. Atty. Novero, A.C. No. 5394, Dec. 2,
2. Who is a Collaborating Counsel? 2002)
A: One who is subsequently engaged to assist a
lawyer already handling a particular case for a client 2. Related Canon: CANON 18 - A LAWYER SHALL
(Pineda, 2009) SERVE HIS CLIENT WITH COMPETENCE AND
a. The handling lawyer cannot just take another DILIGENCE.
counsel without the consent of the client. The
new lawyer on the other hand cannot just 3. Scenarios:
enter his appearance as collaborating a. A lawyer should prepare his pleadings with
counsel without the conformity of the first great care and circumspection. He should
counsel. [TOM: the collaborating counsel refrain from using abrasive and offensive
does not need the consent of the first language, for it merely weakens rather than
counsel, but out of professional courtesy, he strengthens the force of legal reasoning and
just has to communicate with the first counsel detracts from its persuasiveness.
before entering his appearance.] b. In preparing a complaint for damages,
b. The same diligence required of the first counsel for plaintiff should allege and state
counsel is required of the collaborating the specific amounts claimed not only in the
counsel. The negligence of the latter is also body of the complaint but also in the prayer,
binding on the client. (Sublay v. NLRC, G.R. so that the proper docket fees can be
No. 130104. Jan. 31, 2000; Pineda 2009) assessed and paid. (Fernandez v. Atty.
c. The client has a right to hire as many lawyers Novero, A.C. No. 5394, Dec. 2, 2002)
as he can afford.
d. The first counsel may withdraw from the case NEGLIGENCE
on the ground of inability to work with co-
counsel and that the same will not redound RULE 18.03 – A LAWYER SHALL NOT NEGLECT
to the best interest of the client.338 A LEGAL MATTER ENTRUSTED TO HIM, AND
HIS NEGLIGENCE IN CONNECTION THERE
3. Related Canon: CANON 18 - A LAWYER SHALL WITH SHALL RENDER HIM LIABLE
SERVE HIS CLIENT WITH COMPETENCE AND
DILIGENCE. 1. A lawyer is enjoined not to neglect a legal matter
Q: When is professional incompetence a ground for entrusted to him, and his negligence in connection
disbarment under the Rules of Court? Explain. therewith shall render him liable. It is the duty of the
(2010) lawyer to serve his client with competence and
A: Professional incompetence of a lawyer may be a diligence and he should exert his best efforts to
special ground for disbarment if his incompetence is protect within the bounds of the law, the interest of
so total, gross and serious that he cannot be
his client (Vda. De Enriquez v. San Jose, 516 SCRA
486, 2007) What are the requisites for the liability of a lawyer for
damages?
2. When can it be said that a lawyer has been a. Attorney-client relationship; 

negligent? b. Want of reasonable care and diligence by
A: What amounts to carelessness or negligence in a lawyer; and 

lawyer’s discharge of his duty to client is incapable c. Injury sustained by client as a proximate
of exact formulation. It will depend upon the result of the lawyer’s negligence.
circumstances of the case. This is the opposite of the
competence required under Canon 18. 5. Does the client still have remedies for the lawyer’s
neglect? Yes:
3. On Mistakes of Counsel; Are the mistakes of a a. He may file a petition for relief of judgment;
lawyer binding upon the client? (1998, 2000, 2002 or
Bar Questions) b. File a petition for annulment of judgment, due
a. GR: [Negligence of a lawyer BINDS THE to extrinsic fraud, lack of jurisdiction, or
CLIENT] Client is bound by attorney’s absolute denial of due process.
conduct and mistakes in handling a case or c. (2002 Bar) A client who suffers prejudice by
in the management of litigation and in reason of his counsel’s inexcusable
procedural technique, and he cannot negligence in the discharge of his duty may
complain that the result might have been file an action for damages against him.
different had his lawyer proceeded However, there must be a showing that had
differently. the lawyer exercised due diligence, the client
b. XPNs: (2000 Bar) When the judgment can be under the facts and the law would have
set aside, as when: succeeded in recovering from the adverse
i. There is absolute denial of due party or in resisting the claim of the latter.
process all throughout the procedure,
where no evidence was presented, 6. Instances of negligence of attorneys:
for example. Hence, his negligence in a. Failure to appeal to CA despite instructions
this case is a ground for the client to by the client to do so constitutes inexcusable
recover or; negligence on the part of the counsel.
ii. When the application of the general (Abiero v. Juanino, A.C. No. 5302, Feb.18,
rule will result in serious injustice (San 2005); it is binding on his client.
Miguel Corporation v. Laguesma, 236 b. Even if a lawyer was “honestly and sincerely”
SCRA 595 [1994]). protecting the interests of his client, the
iii. Lack of acquaintance with technical former still had no right to waive the appeal
aspect of procedure; without the latter’s knowledge and consent.
iv. When adherence thereto results in (Abay v. Atty. Montesino, A.C. No. 5718,
outright deprivation of client’s liberty Dec. 4, 2003)
or property or where interest of justice c. A lawyer is negligent if he placed his own
so requires; interest in receiving a high notarial fee over
v. Where error by counsel is purely and above the interest of his client.
technical which does not substantially
affect client’s cause; DUTY TO APPRISE CLIENT
vi. Ignorance, incompetence, or
inexperience of lawyer is so great and RULE 18.04 – A LAWYER SHALL KEEP THE
error so serious that client, who has a CLIENT INFORMED OF THE STATUS OF HIS
good cause, is prejudiced and denied CASE AND SHALL RESPOND WITHIN A
a day in court; REASONABLE TIME TO THE CLIENT’S
vii. Gross negligence of lawyer. REQUEST FOR INFORMATION
* As to effect of notice to the lawyer
on the client, see next Rule. 1. A lawyer should notify his client of the adverse
decision while within the period to appeal to enable
4. When can a lawyer be held liable for damages due the client to decide whether to seek an appellate
to his negligence? review. He should communicate with him concerning
A: If his failure to exercise reasonable care, skill and the withdrawal of appeal with all its adverse
diligence is proximate cause of the loss. consequences. The client is entitled to the fullest
disclosure of the mode or manner by which his a. Q: What is a plea of guilty?
interest is defended or why certain steps are taken A: It is an admission by the accused of his
or omitted. guilt of a crime as charged in the information
and of the truth of the facts alleged, including
2. The lawyer is obliged to respond within a the qualifying and aggravating
reasonable time to a client’s request for information. circumstances.
A client is entitled to the fullest disclosure of the b. Q: What is the duty of the defense counsel
mode or manner by which that client’s interest is when his client desires to enter a plea of
defended or why certain steps are taken or omitted. guilty?
A lawyer who repeatedly fails to answer the inquiries A: (F-CEPA)

or communications of a client violates the rules of i. Fully acquaint himself with the
professional courtesy and neglects the client’s records and surrounding
interests. (Villariasa-Reisenbeck v. Abarrientos, circumstances of the case;
A.C. No. 6238, Nov. 4, 2004) ii. Confer with the accused and obtain
3. Key areas which the lawyer has to consult his from him his account of what had
client before taking action: happened; 

a. compromising a case; iii. Thoroughly explain to him the import
b. appealing an unfavorable judgment; of a guilty plea and the inevitable
conviction that will follow; 

4. Doctrine of Imputed Knowledge: The knowledge iv. See to it that the prescribed
acquired by an attorney during the time that he is procedure which experience has
acting within the scope of his authority is imputed to shown to be necessary to the
the client. It is based on the assumption that an administration of justice is strictly
attorney, who has notice of matter affecting his followed and disclosed in the court
client, has communicated the same to his principal records; and 

in the course of professional dealings. v. Advise him of his constitutional rights.

NB: The doctrine applies regardless of whether or a.6 Representation with Zeal within
not the lawyer actually communicated to the client
what he learned in his professional capacity, the
Legal Bounds
attorney and his client being one judicial person.
CANON 19- A LAWYER SHALL REPRESENT
5. Is notice to counsel equivalent to notice to client? HIS CLIENT WITH ZEAL WITHIN THE
a. GR: Yes. The law requires that service of any BOUNDS OF THE LAW
notice upon a party who has appeared by
attorney shall be made upon his attorney. 1. Hierarchy of duties: Duty of respect to the
Notice sent to a party who has appeared by processes of the court prevail over duty to the
counsel is not notice in law, it being client. (2009 Bar) Examples:
immaterial that the client actually received a. The court issues a writ of execution
the notice or volunteered to get a copy already—the lawyer violates Canon 19 if
thereof. he still files a petition for certiorari under
b. XPN: Rule 65. Why? There is already a final &
i. Strict application might foster executory decision. The lawyer should
dangerous collusion to the detriment impress upon the client to obey court
of justice; processes. Litigation has to stop.
ii. Service of notice upon party instead
of upon his attorney is ordered by the b. When something is not correct, provide
court; the right doctrine.
iii. Notice of pre-trial is required to be c. Disregard evidence that is inadmissible.
served upon parties and their
respective lawyers; 2. What does a lawyer represent to a client when
iv. In appeal from the lower court to the he accepts a professional employment of his
RTC, upon docketing of appeal. services?

6. On the Plea of Guilty When a lawyer accepts a case, whether for a fee
or not, his acceptance is an implied
representation that he: (CASE)
 ground, move for the dismissal of the
a. Will exercise reasonable and ordinary complaint; and
care and diligence in the pursuit or d. If unauthorized appearance is willful,
defense of the case; attorney may be cited for contempt as an
b. Will possess the requisite degree of officer of the court who has misbehaved
academic learning, skill and ability in the in his official transactions, and he may be
practice of his profession; disciplined for professional misconduct.

c. Will take steps as will adequately Note: Unauthorized appearance is a ground for
safeguard his client’s interests; and suspension or disbarment.

d. Will exert his best judgment in the 5. How can an unauthorized appearance be
prosecution or defense of the litigation ratified?
entrusted to him. (Islas v. Platon) a. Express – Categorized assertion by
client that he has authorized a lawyer or
His authority is up to his time of engagement, and that he confirms his authorization to
ends when revoked. Hence, a lawyer cannot actually represent him in the case.
volunteer without being accepted, otherwise, he will
be liable for contempt of court. b. Implied – Where party with knowledge of
fact that a lawyer has been representing
3. Authority to appear in court is presumed him in a case, accepts benefits of
representation or fails to promptly
GR: Is a lawyer required to show his authority to repudiate the assumed authority.
appear for or represent a client? No. An attorney is
presumed to be properly authorized to represent any What are the requisites of implied ratification by
cause in which he appears in all stages of the silence?
litigation and no written authority is required to
authorize him to appear. A mere denial by a party a. The party represented by the attorney is
that he has authorized an attorney to appear for him, of age or competent or if he suffers from
in the absence of a compelling reason, is insufficient any disability, he has a duly appointed
to overcome the presumption especially when the guardian or legal representative;
denial comes after the rendition of an adverse
judgment. b. The party or his guardian, as the case
may be, is aware of the attorney’s
XPN: The presiding judge may, on motion of either representation; and
party and on reasonable grounds therefore being c. He fails to promptly repudiate assumed
shown, require an attorney who assumes the right to authority.
appear in a case to produce or prove the authority
under which he appears, and to disclose, whenever USE OF FAIR AND HONEST MEANS
pertinent to any issue, the name of the person who
employed him, and may thereupon make such order RULE 19.01 – A LAWYER SHALL EMPLOY ONLY
as justice requires. (Sec. 21, Rule 138, RRC) FAIR AND HONEST MEANS TO ATTAIN THE
LAWFUL OBJECTIVES OF HIS CLIENT AND
4. What are the effects of an unauthorized SHALL NOT PRESENT, PARTICIPATE IN
appearance? PRESENTING OR THREATEN TO PRESENT
a. The party represented is not bound by UNFOUNDED CRIMINAL CHARGES TO OBTAIN
attorney’s appearance in the case neither AN IMPROPER ADVANTAGE IN ANY CASE OR
by the judgment rendered therein; PROCEEDING

b. Court does not acquire jurisdiction over 1. Rule 19.01 of the CPR obligates a lawyer, in
the person of the party represented; defending his client, to employ only such means
c. The adverse party who has been forced as are consistent with truth and honor. He should
to litigate as a defendant by the not prosecute patently frivolous and meritless
unauthorized action on the part of the appeals or institute clearly groundless actions.
attorney for the plaintiff may, on that
 a. Under this rule, a lawyer should not file or a. THREAT: Lawyer threatened to file
threaten to file any unfounded or cases against his own client.
baseless criminal case or cases against b. The act of a lawyer in preventing the
the adversaries of his client designed to execution of the judgment against his
secure a leverage to compel the clients shows that he actually committed
adversaries to yield or withdraw their own what the above rule expressly prohibits.
cases against the lawyer’s client. (Pena (Que v. Revilla)
v. Atty. Aparicio) c. Use of force or violence in taking over
b. The lawyer must not present and offer [the] office is punishable as an
evidence any document, which he knows administrative offense (Rural Bank of
is false. Calape, Inc. Bohol vs. Atty. James
Benedict Florido)
2. Rationale: a lawyer’s duty is not to his client but
to the administration of justice. To that end, his CLIENT’S FRAUD
client’s success is wholly subordinate. His
conduct ought to and must always be RULE 19.02 – A LAWYER WHO HAS RECEIVED
scrupulously observant of the law and ethics. INFORMATION THAT HIS CLIENT HAS, IN THE
Any means not honorable, fair, and honest, COURSE OF THE REPRESENTATION,
which is resorted to by the lawyer, even in the PERPETRATED A FRAUD UPON A PERSON OR
pursuit of his devotion to his client’s cause, is TRIBUNAL, SHALL PROMPTLY CALL UPON THE
condemnable and unethical. (Ibid) CLIENT TO RECTIFY THE SAME, AND FAILING
WHICH HE SHALL TERMINATE THE
3. How far can a lawyer go to defend his client RELATIONSHIP WITH SUCH CLIENT IN
without violating the ethics of the profession? A ACCORDANCE WITH THE RULES OF COURT
lawyer shall employ only fair and honest means (2001 Bar)
to obtain the lawful objectives of his client. He
shall employ only such means as are consistent 1. The lawyer’s duty to his client does not mean
with truth and honor. He should not go beyond freedom to set up false or fraudulent claims
the bounds of the law or the ethics of his especially with respect to provisions of law or
profession. administrative rules and that while lawyers are
4. Related Rules: bound to exert utmost legal skill in prosecuting
a. The signature of a lawyer on the their client’s cause or defending it, their duty, first
pleadings constitutes a certificate by him and foremost, is to the administration of justice
that he has read the pleadings; that to the [his foremost duty is his duty to the court] (CPR
best of his knowledge, information, and Annotated, PhilJA)
belief, there is good ground to support the 2. Steps to take when the receives information that
arguments therein; and that the his client perpetrated fraud in the course of his
pleadings were not interposed for delay representation of him:
(Rules of Court, Rule 7, Sec. 3, par. 2).
a. Promptly call upon the client to rectify it;
b. His appearance in court should be b. If the client does not rectify the same, he
deemed equivalent to an assertion on his shall terminate the relationship i
honor that, in his opinion, his client’s case accordance with the Rules.
in one proper for judicial determination
(Canons of Professional Ethics, Canon 3. Related to: Privileged communication—right of a
30, par. 2, last sentence). lawyer and his legal staff not to be compelled to
c. Rule 1.02 - A lawyer shall not counsel or disclose information in the guise of prosecution
abet activities aimed at defiance of the of crimes: The same cannot cover information
law or at lessening confidence in the legal relating to FUTURE CRIMES, or in perpetuation
system. of a fraud. Why? It is not within the profession of
d. Lawyer’s Oath # 4. I will not wittingly or a lawyer to advise one to commit a crime or
willingly promote or sue any groundless, perpetrate fraud.
false or unlawful suit, nor give aid nor 4. Scenarios:
consent to the same. a. It is an unethical tactic for a lawyer to
offer monetary rewards to anyone who
5. Sample scenarios: could give him information against a
 party so that he could have leverage make the necessary manifestation in
against all actions involving such party. court, with the client’s conformity, that he
(CPR Annotated, PhilJA) was withdrawing as counsel of record.
b. If what your client is asking you to do is (CPR Annotated, PhilJA)
unlawful, you may refuse to do it. 4. State the rule with respect to the authority of an
attorney to compromise his client’s case
c. A compromise agreement effected by a
client or by his attorney with special GR: The attorney has no authority to compromise his
authority from him has upon the parties client’s case. This is so because the client, even if
the effect of res judicata. He may collect represented by counsel, retains exclusive control
the necessary fees even if the client does over the subject matter of the litigation. The client
not honor the compromise agreement. can, of course, authorize his lawyer to compromise
his case, and the settlement made by the lawyer will
PROCEDURE IN HANDLING THE CASE bind his client. NB: Compromise is a contract
whereby the parties, by making reciprocal
RULE 19.03 – A LAWYER SHALL NOT ALLOW concessions, avoid litigation or put an end to one
HIS CLIENT TO DICTATE THE PROCEDURE ON already commenced. (Art. 2028, NCC)
HANDLING THE CASE
XPN:
1. What is the extent of a lawyer’s authority in the i. When the lawyer is confronted with an
conduct of litigation?Who has control? emergency where prompt and urgent action
is necessary to protect the interest of his
a. LAWYER: A lawyer has authority to bind client and there is no opportunity for
the client in all matters of ordinary judicial consultation with the latter.
procedure.
ii. Settlement of monetary obligation to client is
Rationale: The basis of this rule is that the lawyer is full payment in cash.
better trained and skilled in law.
5. On Appearance
b. CLIENT: The cause of action, the claim a. What is appearance? It is the coming into
or demand sued upon and the subject court as a party either as a plaintiff or as
matter of the litigation are within the a defendant and asking relief therefrom.
exclusive control of the client. A client
may waive, surrender, dismiss, or b. What are the kinds of appearance?
compromise any of his rights involved in
litigation in favor of the other party even i. General appearance – When a
without or against the consent of his party comes to court either as
attorney. plaintiff or defendant and seeks
2. The Code enjoins a lawyer to employ only fair general reliefs from the court for
and honest means to attain the lawful objectives satisfaction of his claims or
of his client and warns him not to allow his client counterclaims respectively.
to dictate the procedure in handling the case. In
short, a lawyer is not a gun for hire. (Millare v. ii. Special appearance – When a
Atty. Montero) defendant appears in court solely
3. Is the lawyer confined entirely on the information for the purpose of objecting to the
his client gave? No jurisdiction of the court over his
a. The lawyer cannot entirely depend on the person.
information his client gave or the time his
client wished to give. The lawyer should Note: By virtue of Sec. 20, Rule 14 of the 1997 Rules
take more control over handling the case. of Civil Procedure, there is no more distinction
between general appearance and special
b. Where the client is based overseas, the appearance, in the sense that a defendant may file
lawyer should with more reason, have a motion to dismiss not only on the ground of lack of
moved to secure all the legal means jurisdiction over his person but also on some other
available to him either to continue grounds without waiving the jurisdiction of the court
representing his client effectively or to over his person.
 c. What is the difference between entry of GR: written agreement
appearance and appearance of a
counsel? XPN: quantum meruit [Latin: as much amount as his
services are worth or what the lawyer deserves for
Entry of Appearance of a his services]. Related to this principle of law: no one
appearance counsel should be permitted to enrich himself to enrich
the written the verbal himself at the expense of another.
manifestation manifestation of the
submitted by the counsel in order for a. NO INTEREST: Imposition of interest in the
counsel of record to the court to payment of attorney’s fees is not justified
inform the court that recognize his Funa, 2009)
he will act as the presence during the b. There is no hard and fast rule in determining
counsel of a party hearing of the case. lawyer’s fees. These rules only serve as
made before the (Sec.21, Rule 138, guides.
date of the hearing Rules of Court).
2. Options available to lawyers:
a. Ordinary demand
b. If monetary judgment: move for charging
a.7 Attorney’s Fees lien;
c. If titles/properties in his possession:
CANON 20 – A LAWYER SHALL CHARGE retaining lien- retain until paid
ONLY FAIR AND REASONABLE FEES
3. Criteria for determination of fees? Schedule of
RULE 20.01 – A LAWYER SHALL BE GUIDED BY fees of IBP: but lawyer can collect more. See
THE FOLLOWING FACTORS IN DETERMINING Rule 20.01.
HIS FEES: (2014 Bar)
Note: Entitlement to lawyer’s fees is presumed.
A) THE TIME SPENT AND THE EXTENT OF (Funa, 2009) Unless otherwise expressly stipulated,
THE SERVICES RENDERED OR rendition of professional services by a lawyer is for a
REQUIRED; fee or compensation and is not gratuitous.
B) THE NOVELTY AND DIFFICULTY OF THE (Research and Services Realty, Inc. v. CA)
QUESTIONS INVOLVED;
C) THE IMPORTANCE OF THE SUBJECT 4. On prohibition of sale of property to lawyer during
MATTER; litigation in NCC; but after final decision, the
D) THE SKILL DEMANDED; lawyer can purchase the property. See Canon 16
E) THE PROBABILITY OF LOSING OTHER for details, supra.
EMPLOYMENT AS A RESULT OF
ACCEPTANCE OF THE PROFFERED 5. Who are entitled to attorney’s fees?
CASE;
F) THE CUSTOMARY CHARGES FOR GR: Only lawyers are entitled to attorney’s fees. The
SIMILAR SERVICES AND THE same cannot be shared with a non-lawyer. It is
SCHEDULE OF FEES OF THE IBP unethical.
CHAPTER TO WHICH HE BELONGS;
G) THE AMOUNT INVOLVED IN THE XPN: A lawyer may divide a fee for legal services
CONTROVERSY AND THE BENEFITS with persons not licensed to practice law: CPR
RESULTING TO THE CLIENT FROM THE
SERVICE; i. A lawyer undertakes to Complete the
H) THE CONTINGENCY OR CERTAINTY OF unfinished legal business of a deceased
COMPENSATION; lawyer;
I) THE CHARACTER OF THE
EMPLOYMENT, WHETHER OCCASIONAL ii. There is a Pre-existing agreement with a
OR ESTABLISHED; AND partner or associate that, upon the latter’s
J) THE PROFESSIONAL STANDING OF THE death, money shall be paid over a
LAWYER. reasonable period of time to his estate or to
persons specified in the agreement;
1. Rule on Attorney’s Fees
 his services although he may be paid a
iii. A lawyer or law firm includes non-lawyer nominal fee taken from a public fund
employees in Retirement plan, even if the appropriated for the purpose.
plan is based, in whole or in part, on a profit- e. Legal aid. The attorney renders legal
sharing agreement. (Rule 9.02, CPR). services for those who could not afford to
engage the services of paid counsel.
6. What are the requisites for the right to attorney’s f. Quantum meruit basis. If there is no
fees to accrue? specific contract between the lawyer and
a. Existence of attorney-client relationship; the client, the lawyer is paid on quantum
and meruit basis, that is, what the lawyer
b. Rendition by the lawyer of services to the deserves for his services.
client.
9. More on RETAINER:
Note: A pauper, while exempted from payment of
legal fees is not exempted from payment of a. It may refer to two concepts:
attorney’s fees. (Cristobal v. Employees i. Act of a client by which he
Compensation Commission) engages the services of an
attorney to render legal advice or
7. Kinds of payments that may be stipulated on to defend or prosecute his cause
in court; or
a. Fixed or absolute fee that which is
payable regardless of the result of the ii. Fee which a client pays to the
case. attorney.
i. A fixed fee payable per
appearance i b. Kinds of retainer agreements on
ii. A fixed fee computed upon the attorney’s fees
number of hours spent i. General retainer or retaining fee –
iii. A fixed fee based on piece work It is the fee paid to a lawyer to
iv. Combination of any of the above secure his future services as
general counsel for any ordinary
b. Contingent fee – a fee that is conditioned legal problem that may arise in
on the securing of a favorable judgment the ordinary business of the client
and recovery of money or property and and referred to him for legal
the amount of which may be on a action. The client pays fixed
percentage basis. retainer fees, which could be
monthly or otherwise. The fees
8. Types of Fee Arrangements: What are the are paid whether or not there are
different types of fee arrangements upon which cases referred to the lawyer;
an attorney may receive compensation (Bar
1987)? Note: the general retainer contract may be
terminated, but it won’t affect the right of the lawyer
a. Retainer’s fee where the lawyer is paid to collect on fees for cases not covered by such
for services for an agreed amount for the agreement.
case.
b. The lawyer agrees to be paid per court ii. Special retainer – It is a fee for a
appearance. specific or particular case or
c. Contingent fee where the lawyer is paid service rendered by the lawyer for
for his services depending on the a client.
success of the case. This applies usually
in civil suits for money or property where ACCEPTANCE FEES
the lawyer’s fee is taken from the award
granted by the court. What is an acceptance fee? It is an absolute fee
d. Attorney de officio. The attorney is arrangement which entitles a lawyer to get paid for
appointed by the court to defend the his efforts regardless of the outcome of the litigation.
indigent litigant in a criminal case. The (Funa, 2009)
client is not bound to pay the attorney for
 contract) are permitted because they redound to
CONTINGENCY FEE ARRANGEMENT the benefit of the poor client and the lawyer
especially in cases where the client has
1. What is a contingent fee contract? Is it valid? A meritorious cause of action, but no means with
contingency contract is one, which stipulates that which to pay for the legal services unless he can,
the lawyer will be paid for his legal services only with the sanction of law, make a contract for a
if the suit or litigation ends favorably to the client. contingent fee to be paid out of the proceeds of
(Taganas vs. NLRC] the litigation (Francisco, Legal Ethics [1949])

a. It is like a contract subject to a 4. What are the limitations of the stipulation

suspensive condition wherein the regarding contingent fee contract? It must be
obligation to pay the counsel is based reasonabled based on the circumstance of the
upon the outcome of the case. Hence, if case.
the lawyer does not produce the a. Contingent fee contracts are under the
success expected, he won’t be paid, supervision and close scrutiny of the
even if on appeal, the case was court in order that clients may be
successful but on the hands of another protected from just charges. Its validity
lawyer. depends on the measure of
b. Contingent fees are sanctioned by the reasonableness of the stipulated fees
CPE and by the CPR subject to certain under the circumstances of the case
limitations, infra (Licudan vs. CA) (Sesbreno vs. CA)
b. When is a contingent fee contract
c. Contingent fee contracts are subject to considered as unconscionable?
the supervision and close scrutiny of the Stipulated attorney’s fees are
court in order that clients may be unconscionable whenever the amount is
protected from unjust charges. The by far so disproportionate compared to
amount of contingent fees agreed upon the value of the services rendered as to
by the parties is subject to the stipulation amount to fraud perpetrated to the
that counsel will be paid for his legal client. (Sesbreno vs. CA)
services only if the suit or litigation
prospers. A much higher compensation Note: “one-half” of what will be recovred is valid.
is allowed as contingent fees because of
the risk that the lawyer may get nothing c. What is the effect of unreasonable or
if the suit fails. (Evangelina Masmud v. unconscionable contingent fee
NLRC, et. Al.) contract? When the courts find that the
stipulated amount is excessive or the
d. It is sometimes called “success fee”. contract is unreasonable, public policy
Hence, one gets nothing if they lose the demands that said contract be
case. disregarded to protect the client from
e. If a lawyer employed on contingent unreasonable exaction. NB: The degree
basis dies or becomes disabled before of unconscionability or
the final adjudication or settlement of the unreasonableness of the stipulated fee
case has been obtained, he or his estate will not, however, preclude recovery. It
will be allowed to recover the merely justifies the court’s fixing
reasonable value of the services reasonable amount for the lawyer’s
rendered. The recovery will be allowed services based on quantum meruit
only after the successful termination of meaning “as much as he deserves”.
the litigation in the client’s favor. (Morton (Sesbreno vs. CA)
v. Forsee) 5. Does the acceptance of an initial fee before or
during the progress of the litigation detract from
2. Basis: Rule 20.01 (f): The customary charges for the contingent nature of the fees? No. The
similar services and the schedule of fees of the acceptance of an initial fee before or during the
IBP chapter to which he belongs progress of the litigation does not detract from
the contingent nature of the fees, as long as the
3. What is the rationale for allowing contingent fee bulk thereof is made dependent upon the
contract? Contracts of this nature (contingent fee
 successful outcome of the action (Francisco vs. b. Champerty, on the other hand, is
Matias) characterized by “the receipt of a share
of the proceeds of the litigation by the
CHAMPERTOUS CONTRACT intermeddler.” Some common law court
decisions, however, add a second factor
1. (1987, 1990, 2000, 2010 Bar) It is one where the in determining champertous contracts,
lawyer stipulates with his client in the namely, that the lawyer must also, “at
prosecution of the case that he will bear all the his own expense maintain, and take all
expenses for the recovery of things or property the risks of, the litigation.”
being claimed by the client, and the latter agrees c. The doctrines of champerty and
to pay the former a portion of the thing or maintenance were created in response
property recovered as compensation. It is void “to medieval practice of assigning
for being against public policy. (Like gambling). doubtful or fraudulent claims to persons
of wealth and influence in the
Note: if the property is not the one under litigation, expectation that such individuals would
the agreement is valid. enjoy greater success in prosecuting
those claims in court, in exchange for
2. Why void due to public policy? Because it would which they would receive an entitlement
make him acquire a stake in the outcome of the to the spoils of the litigation.”
litigation which might lead him to place his own d. In order to safeguard the administration
interest above that of the client. (Bautista v. of justice, instances of champerty and
Gonzales) maintenance were made subject to
criminal and tortuous liability and a
The unconscionability of the agreement does not common law rule was developed,
really matter in a champertous contract, because striking down champertous agreements
the latter in itself is void. and contracts of maintenance as being
unenforceable on the grounds of public
3. Contingent vs. Champertous contracts (2000 policy.”
Bar) e. In this jurisdiction, we maintain the rules
on champerty, as adopted from
Contingent Champertous American decisions, for public policy
Contract Contract considerations. As matters currently
Payable in cash – Payable in kind – a stand, any agreement by a lawyer to
dependent on the portion of the thing “conduct the litigation in his own
success of the or property account, to pay the expenses thereof or
litigation recovered as to save his client therefrom and to
compensation receive as his fee a portion of the
Lawyers do not Lawyers undertake proceeds of the judgment is
undertake to pay all to pay all expenses OBNOXIOUS to the law.” The rule of the
expenses of of litigation profession that forbids a lawyer from
litigation contracting with his client for part of the
VALID VOID thing in litigation in exchange for
conducting the case at the lawyer’s
4. Champerty vs. Maintenance: Champerty, along expense is designed to PREVENT the
with maintenance (of which champerty is an lawyer from ACQUIRING AN
aggravated form), is a common law doctrine that INTEREST between him and his client.
traces its origin to the medieval period. To permit these arrangements is to
enable the lawyer to “acquire additional
a. The doctrine of maintenance was stake in the outcome of the action which
directed “against wanton and inofficious might lead him to consider his own
intermeddling in the disputes of others in recovery rather than that of his client or
which the intermeddler has no interest to accept a settlement which might take
whatever, and where the assistance care of his interest in the verdict to the
rendered is without justification or sacrifice of that of his client in violation
excuse.” of his duty of undivided fidelity to his
client’s cause.”
 a. A lawyer is not entitled to unilaterally
ATTORNEY’S LIENS appropriate his client’s money for himself
by the mere fact alone that the client
1. Related Rules owes him attorney’s fees. (Rayos v.
Hernandez)
a. RULE 16.03 – A lawyer shall deliver the
funds and property of his client when due b. The satisfaction of the judgment
or upon demand. However, HE SHALL extinguishes the lien, if there has been a
HAVE A LIEN OVER THE FUNDS AND waiver as shown either by the lawyer’s
MAY APPLY SO MUCH THEREOF AS conduct or by his passive omission.
MAY BE NECESSARY TO SATISFY HIS
LAWFUL FEES AND 3. Kinds of Attorney’s Lien
DISBURSEMENTS, GIVING NOTICE a. Retaining Lien
PROMPTLY THEREAFTER TO HIS b. Charging Lien
CLIENT. HE SHALL ALSO HAVE A LIEN
TO THE SAME EXTENT ON ALL Section 37 of Rule 138 provides for two kinds of
JUDGEMENTS AND EXECUTIONS HE attorney's lien, a retaining lien which gives the lawyer
HAS SECURED FOR HIS CLIENT AS the right to retain the client's money, property and
PROVIDED FOR IN THE RULES OF documents which have legally come into his
COURT. possession until he is paid all his fees and advances
b. SECTION 37, RULE 138: ATTORNEY’S for all his services to the client, and a charging lien
LIENS. — AN ATTORNEY SHALL HAVE which gives the lawyer the right to charge a
A LIEN UPON THE FUNDS, judgment for money and its execution with his fees
DOCUMENTS AND PAPERS OF HIS for services rendered in the case.
CLIENT WHICH HAVE LAWFULLY
COME INTO HIS POSSESSION AND 4. Summary on how a lawyer exercises his lien:
MAY RETAIN THE SAME UNTIL HIS
LAWFUL FEES AND DISBURSEMENTS a. In an ordinary action;
HAVE BEEN PAID, AND MAY APPLY b. Exercise his right to a retaining lien in
SUCH FUNDS TO THE SATISFACTION proper cases;
THEREOF. HE SHALL ALSO HAVE A c. Charging lien in money judgments; XPN:
LIEN TO THE SAME EXTENT UPON contracts.
ALL JUDGMENTS FOR THE PAYMENT
OF MONEY, AND EXECUTIONS RETAINING LIEN
ISSUED IN PURSUANCE OF SUCH
JUDGMENTS, WHICH HE HAS 1. (1995, 2000, 2012 Bar) A retaining lien is the
SECURED IN A LITIGATION OF HIS right of an attorney to retain the funds,
CLIENT, from and after the time when he documents and papers of his client who have
shall have the caused a statement of his lawfully come into his possession and may retain
claim of such lien to be entered upon the the same until his lawful fees and disbursements
records of the court rendering such have been paid, and may apply such funds to the
judgment, or issuing such execution, and satisfaction thereof.
shall have the caused written notice
thereof to be delivered to his client and to 2. Requisites in order for an attorney to be able to
the adverse party; and he shall have the exercise his retaining lien?
same right and power over such
judgments and executions as his client a. Attorney-client relationship;
would have to enforce his lien and secure b. Lawful possession by the lawyer of the
the payment of his just fees and client’s funds, documents and papers in
disbursements. his professional capacity; and
2. Lien is a RIGHT of the lawyer, not a duty. c. Unsatisfied claim for attorney’s fees or
Attorney’s Lien (1997 Bar) - a lien created by law disbursements.
to insure payment of a lawyer's professional fees
and reimbursement of his lawful disbursements. 3. This right arises when (there’s express
manifestation that the fees will not be paid)
 a. There is a contract; barangay conciliation proceeding. Vigilance of
b. The lawyer withdraws and there’s the lawyer: put it in the contract!
express refusal;
c. Unjustly terminated without notice; CHARGING LIEN

Note: determine the role of the lawyer—if he is a 1. Define an attorney’s charging lien (1994 Bar) A
personal lawyer of an heir, he cannot retain the charging lien is the right of a lawyer to the extent
documents of the estate (from which the heir is of all his lawful fees and disbursements upon all
claiming) should he be replaced as counsel, as his judgments for the payment of money, and
retaining lien for his services to the heir. executions issued in pursuance of such
judgments which he has secured in a litigation of
4. Deliver or return first, then collect later. The his client, from and after the time when he shall
retaining lien cannot be automatically applied. It have caused a statement of his claim of such lien
should be done in conformity with the client. to be entered upon the records of the court
Hence, the lawyer’s first duty is to return the rendering such judgment, or issuing such
money. The lawyer’s right is to demand payment execution, and shall have caused written notice
of attorney’s fees as AGREED UPON in the thereof to be delivered to his client and to the
contract. adverse party; and he shall have the same right
a. May a counsel unilaterally retain or and power over such judgments and executions
appropriate funds of his client as his as his client would have to enforce his lien and
attorney’s lien? A: No. A counsel has no secure the payment of his fees and
right to retain or appropriate unilaterally disbursements. (Sec. 37, Rule 138, Revised
as lawyer’s lien any amount belonging to Rules of Court)
his client which may come into his a. SC has described it as an “equitable right
possession (Cabigao v. Rodrigo) to a charging lien” over money judgments
he has secured in litigation for his client.
b. While this rule provides that the lawyer
has the right to retain the funds of his 2. Is it applied only for money judgments?
client as may be necessary to satisfy his
lawful fees and disbursements known as GR: Yes. Hence, if it’s just a dismissal of the action
attorney’s lien and his lien to the same where there is no money judgment involved, no
extent on all judgments and executions charging lien can be applied.
he has secured for his client called
charging lien, he is still duty bound to XPN: if there is a contract or agreement. Hence, if
render an accounting of his client’s funds there is no contract, it is only on money judgments;
and property which may come into his the sheriff will collect for you.
possession in the course of his
professional employment. In the 3. What are the requisites in order for an attorney
application of attorney’s lien, a lawyer to be able to exercise his charging lien?
shall give notice to his client otherwise,
the same might be construed as a. Existence of attorney-client relationship;
misappropriation which may subject him
to disciplinary action. (Antiquiera, 2007) b. The attorney has rendered services;

5. HOW? EG: AA loaned 500K to BB. Lawyer c. Favorable money judgment secured by
demanded the payment. Before an answer was the counsel for his client;
filed, BB paid 500K to the lawyer. How does the
lawyer exercise the retaining lien? Make an Note: A charging lien, to be enforceable as a
accounting of the 500K. Make a demand for security for the payment of attorney’s fees, requires
payment of the lien, say, 100K. as a condition sine qua non a judgment for money
and execution in pursuance of such judgment
6. What if the client does not pay? File an ordinary secured in the main action by the attorney in favor of
civil action, based on the contract (after his client. There must be a final judgment, otherwise,
demand). If 200K or less, go to a Small Claims enforcement of the lien is premature. It has to be
Court. If he is a neighbor, undergo first a claimed before the full satisfaction of the judgment;
 d. The attorney has a claim for attorney’s attorney by
fees or advances; and reason of his
e. A statement of the claim has been duly professional
recorded in the case with notice thereof employment
served upon the client and the adverse As to Effect As soon as As soon as the
the attorney claim for
party.
gets attorney’s fees
possession had been
4. Usual steps: of papers, entered into the
documents, records of the
a. Receive a copy of the judgment; or property. case.
b. Make a Motion for Charging Lien; File it As to May be Generally,
during the hearing on the motion for Applicability exercised exercised only
execution (note that there is always a before when the
motion for execution, except for judgment or attorney had
compromise agreements); two possible execution or already secured
regardless a favorable
motions:
thereof. judgment for his
i. For execution; client.
ii. During the hearing of the execution of As to When When client
judgment; Note that the motion should be Extinguishment possession loses action, as
heard;394 otherwise, it is VOID. lawfully ends lien may only be
as when enforced against
Note: docket fees have to be paid for the court to lawyer judgment
acquire jurisdiction to enforce the charging lien. voluntarily awarded in favor
parts with of client,
c. Copy the adverse party (counsel of funds, proceeds
adverse party) and your client the Motion documents, thereof/executed
and papers of thereon.
(note that the client here becomes an
client or
adversary). offers them
d. The court records the attorney’s fee on as evidence.
the writ of execution—recorded by the
judge (no need to compel the sheriff)

5. Recent Jurisprudence on charging lien:

(Narvaez v. Abrogar)

Retaining Charging Lien

Lien
FEES AND CONTROVERSIES WITH CLIENTS
As to Nature Passive; Active; can be
cannot be enforced by
(QUANTUM MERUIT)
actively execution; a
enforced; it’s special lien RULE 20.02 – A LAWYER SHALL, IN CASES OF
a general REFERRAL, WITH THE CONSENT OF THE
lien. CLIENT, BE ENTITLED TO A DIVISION OF FEES
As to Basis Lawful Securing of a IN PROPORTION TO THE WORK PERFORMED
possession favorable money AND RESPONSIBILITY ASSUMED.
of papers, judgment for
documents, client. 1. On Rule 20.02 – This is not in the nature of a
property broker’s commission. This refers to delegation of
belonging to
the client.
work and not delegation of a case. As long as
As to Coverage Covers Covers all lawyer is responsible to his clien, there is no
papers, judgments for impropriety in delegating research work to
documents, the payment of another laywer What is prohibited by the Code
and money and of Professional Responsibility is splitting of
properties in execution issued Attorney’s fees with a non-lawyer.
the lawful in pursuance of
possession such judgment. 2. How does Lawyer-Referral System work? A:
of the Under this system, if another counsel is referred
 to the client, and the latter agrees to take him as c. To prevent fraud
collaborating counsel, and there is no express
agreement on the payment of attorney’s fees, 3. Where and how may attorney’s fees be claimed
the said counsel will receive attorney’s fees in by the lawyer?
proportion to the work performed and
responsibility assumed. The lawyers and the a. In the same case – It may be asserted
client may agree upon the proportion but in case either in the very action in which the
of disagreement, the court may fix the services of a lawyer had been rendered or
proportional division of fees. (Lapena, 2009) in a separate action.
b. In a separate civil action – A petition for
PROHIBITION AGAINST ACCEPTANCE OF ANY attorney’s fees may be filed before the
FEE FROM OTHER PERSONS judgment in favor of the client is satisfied
or the proceeds thereof delivered to the
RULE 20.03 – A LAWYER SHALL NOT, WITHOUT client.
THE FULL KNOWLEDGE AND CONSENT OF THE
CLIENT, ACCEPT ANY FEE, REWARD, COSTS, Note: final determination of the fees will have to
COMMISSION, INTEREST, REBATE OR await final judgment of the case, otherwise, it’s
FORWARDING ALLOWANCE OR OTHER premature.
COMPENSATION WHATSOEVER RELATED TO
HIS PROFESSIONAL EMPLOYMENT FROM 4. What are the instances when an independent
ANYONE OTHER THAN THE CLIENT. civil action to recover attorney’s fees is
GR: It is intended to secure the fidelity of the lawyer necessary?
to his client’s cause and to prevent a situation in
which the receipt by him of a rebate or commission a. Main action is dismissed or nothing is
from another with the client’s business may interfere awarded;
with the full discharge of his duty to his client. (Report b. Court has decided that it has no
of the IBP Committee) jurisdiction over the action or has already
lost it;
XPN: A lawyer may receive compensation from a c. Person liable for attorney’s fees is not a
person other than his client when the latter has full party to the main action;
knowledge and401 approval thereof. (Sec. 20 (e), d. Court reserved to the lawyer the right to
Rule 138) file a separate civil suit for recovery of
attorney’s fees;
DUTY TO AVOID CONTROVERSIES e. Services for which the lawyer seeks
CONCERNING COMPENSATION payment are not connected with the
subject litigation; and
RULE 20.04 – A LAWYER SHALL AVOID
CONTROVERSIES WITH CLIENTS f. Judgment debtor has fully paid all of the
CONCERNING HIS COMPENSATION AND judgment proceeds to the judgment
SHALL RESORT TO JUDICIAL ACTION ONLY TO creditor and the lawyer has not taken any
PREVENT IMPOSITION, INJUSTICE OR FRAUD. legal step to have his fees paid directly to
him from the judgment proceeds.
(1998 Bar) GR: A lawyer should avoid the filing of
any case against a client for the enforcement of 5. What are the effects of the nullity of contract on
attorney’s fees. The legal profession is not a money- the right to attorney’s fees? If the nullification is
making trade but a form of public service. Lawyers due to:
should avoid giving the impression that they are
mercenary402 (Perez v. Scottish Union and National a. The illegality of its object – the lawyer is
Insurance Co) It might even turn out to be precluded from recovering; and
unproductive for him for potential clients are likely to
avoid a lawyer with a reputation of suing his clients. b. Formal defect or because the court has
found the amount to be unconscionable –
XPN: the lawyer may recover for any services
rendered based on quantum meruit.
a. To prevent imposition
b. To prevent injustice 6. To what compensation is a lawyer entitled to?
 fees; and
a. Counsel de parte – He is entitled to the
reasonable attorney’s fees agreed upon, vi. The client dismissed his
or in the absence thereof, on quantum counsel before the
meruit basis. termination of the case.
b. Counsel de officio – The counsel may not
demand from the accused attorney’s fees 3. Instances when counsel cannot recover full
even if he wins the case. He may, amount despite written contract for attorney’s
however, collect from the government fees (2006 Bar) [This is other way of asking,
funds, if available based on the amount “when will quantum meruit apply”?]
fixed by the court.
c. Amicus Curae – not entitled to attorney’s i. When the services called for
fees. were not performed as
when the lawyer withdrew
QUANTUM MERUIT before the case was
finished, he will be allowed
1. Concept (1998, 2015 Bar): Quantum meruit only reasonable fees;
means, “as much as he deserves”. It is used
as the basis for determining the lawyer’s ii. When there is a justified
professional fees in the absence of a dismissal of the attorney,
contract, but recoverable by him from his the contract will be nullified
client. and payment will be on the
2. When is the measure of quantum meruit basis of quantum meruit
resorted to? (2007 Bar Question) only.409 A contrary
stipulation will be invalid;
Quantum meruit is resorted to when:
iii. When the stipulated
i. There is no express attorney’s fees are
contract for payment of unconscionable, when it is
attorney’s fees agreed upon disproportionate as
between the lawyer and the compared to the value of
client; services rendered and is
ii. Although there is a formal revolting to human
contract for attorney’s fees, conscience; More in the
the stipulated fees are next number.
found unconscionable or
unreasonable by the court; iv. When the stipulated
More in the next number. attorney’s fees are in
excess of what is expressly
iii. The contract for attorney’s provided by law;
fees is void due to purely
formal matters or defects of v. When the lawyer is guilty of
execution; fraud or bad faith toward his
client in the matter of his
iv. The counsel, for justifiable employment;
cause, was not able to finish
the case to its conclusion; vi. When the counsel’s
hence, he withdraws; services are worthless
because of his negligence;
EG: he can’t work effectively without
a collaborating counsel; client vii. When contract is contrary to
perpetuates fraud, commits illegal law, morals or public policy;
acts, etc. and

v. Lawyer and client disregard viii. Serving adverse interest

the contract for attorney’s unless the lawyer proves
 that it was with the consent Attorney’s fees may not be awarded to a party simply
of both parties. because the judgment is favorable to him, for it may
amount to imposing a premium on the right to
4. On Unconscionable Fees; Courts may redress grievances in court.
interfere and reduce contractually agreed
upon attorney’s fees when the same is EXPENSES OF LITIGATION: same policy as
unconscionable or excessive. What is the attorney’s fees with respect to the expenses of
rationale behind this authority? litigation. A winning party may be entitled to
i. Indubitably intertwined with expenses of litigation only where he, by reason of
the lawyer’s duty to charge plaintiff's clearly unjustifiable claims or defendant's
only reasonable fees is the unreasonable refusal to his demands, was
power of the court to reduce compelled to incur said expenditures. [Napocor v.
the amount of attorney’s Philipp Brothers, Inc]
fees if the same is
excessive and Two Concept of Attorney’s Fees
unconscionable. (Roxas v.
De Zuzuarregui, Jr., G. R. 1. Ordinary attorney’s fee – The reasonable
No. 152072, Jan. 31, 2006); compensation paid to a lawyer by his client
ii. A lawyer is primarily an for the legal services he has rendered to the
officer of the court hence latter. (Pineda, 2009)
fees should be subject to
judicial control; Note: The basis for this compensation is the fact
iii. Sound public policy of his employment by and his agreement with the
demands that courts client.
disregard stipulations for
attorney’s fees when they 2. Extraordinary attorney’s fee – (1992 Bar) An
appear to be a source of indemnity for damages ordered by the court
speculative profit at the to be paid by the losing party in litigation.
expense of the debtor or
mortgagor (Borcena v. IAC, Note: The basis for this is any of the cases
et. Al.) provided for by law where such award can be
made, such as those authorized in Article 2208
5. When are attorney’s fees considered as of the Civil Code, and is payable to the client,
unconscionable? NOT to the lawyer unless they have agreed that
the award shall pertain to the lawyer as
i. An amount compared to the additional compensation or as part thereof.
value of the services is so
disproportionate as to shock It has 3 requirements:
human conscience.
a. Should be pleaded in the complaint
ii. One in which no man in his
right senses, not under b. Must be proved by the party; how? Under
delusion, would make on damages in NCC, like actual damages:
one hand, and which no fair show receipts, contract; verbal proof may
and honest man would be adduced—testimonial evidence may
accept on the other. be accepted by the court.

CONCEPTS OF ATTORNEY’S FEES c. Court should explain the basis: factual &
legal (NCC).
GR: in the absence of stipulation, a winning party
may be awarded attorney's fees only in case
plaintiff's action or defendant's stand is so untenable ORDINARY CONCEPT OF ATTORNEY’S FEES
as to amount to gross and evident bad faith.
[Napocor v. Philipp Brothers, Inc] 1. Ordinary attorney’s fee – The reasonable
compensation paid to a lawyer by his client for
 the legal services he has rendered to the latter. XPN: unless they have agreed that the award
(Pineda, 2009) shall pertain to the lawyer as additional
2. The basis for this compensation is the fact of his compensation or as part thereof.
employment by and his agreement with the
client. 3. Rule on attorney’s fees being awarded as
3. Scenarios: damages and its exceptions.
a. lawyers cannot claim additional payment
for legal services rendered in the same GR: Attorney’s fees as damages are not
case. They could not charge a fee based recoverable. An adverse decision does not ipso
on percentage, absent an express facto justify their award in favor of the winning party.
agreement to that effect. Payments in
cash, checks, free products and services XPN: Attorney’s fees in the concept of damages may
from the client’s business may suffice. be awarded in any of the following circumstances:
Art. 2208. In the absence of stipulation, attorney's
b. Rationale: The practice of law is a decent fees and expenses of litigation, other than judicial
profession and not a money- making costs, cannot be recovered, except:
trade. Compensation should be but a
mere incident. 1) When exemplary damages are awarded;

EXTRAORDINARY CONCEPT OF ATTORNEY’S 2) When the defendant's act or omission has

FEES compelled the plaintiff to litigate with third
persons or to incur expenses to protect his
1. Extraordinary attorney’s fee – (1992 Bar) An interest;
indemnity for damages ordered by the court to 3) In criminal cases of malicious prosecution
be paid by the losing party in litigation. against the plaintiff;
4) In case of a clearly unfounded civil action or
Note: The basis for this is any of the cases proceeding against the plaintiff;
provided for by law where such award can be 5) Where the defendant acted in gross and evident
made, such as those authorized in Article 2208 bad faith in refusing to satisfy the plaintiff's
of the Civil Code, and is payable to the client, plainly valid, just and demandable claim;
NOT to the lawyer unless they have agreed that
the award shall pertain to the lawyer as 6) In actions for legal support;
additional compensation or as part thereof. 7) In actions for the recovery of wages of household
helpers, laborers and skilled workers;
It has 3 requirements:
a. Should be pleaded in the complaint Note: Article 111 of the Labor Code deals with the
extraordinary concept of attorney’s fees: it cannot be
b. Must be proved by the party; how? Under used as basis for computing the lawyer’s ordinary
damages in NCC, like actual damages: show fees.
receipts, contract; verbal proof may be
adduced—testimonial evidence may be 8) In actions for indemnity under workmen's
accepted by the court. compensation and employer's liability laws;

c. court should explain the basis: factual & legal 9) In a separate civil action to recover civil liability
(NCC). arising from a crime
10) When at least double judicial costs are awarded;
2. The “attorney’s fees” found in the decisions of
courts belongs to the ‘extraordinary concept’, 11) In any other case where the court deems it just
that is, it’s in the nature of indemnity for and equitable that attorney's fees and expenses
damages; hence: of litigation should be recovered. In all cases, the
attorney's fees and expenses of litigation must
GR: it belongs to the client, not to the lawyer [do be reasonable.
not be deceived by the term “attorney’s fees”; 12) not in NCC: When there is an agreement;

13) not in NCC: When a special law so authorizes.

 *The discussion in Canon 21, infra, refers more to
keeping secrets; the rest of the discussion on
confidences is under Canon 17, supra.
4. Why is there a need to state the reason for the
award of attorney’s fees in the text of the court’s 1. On Confidence
decision?
a. What is confidence? It refers to the
(Rationale) The award of attorney’s fees being information protected by the attorney-client
an exception rather than the general rule, it is privilege. (Report of IBP Committee)
necessary for the court to make findings of facts
and law that would bring the case within the b. What are secrets? It refers to other
exception and justify the grant of such award. information gained in the professional
(Agustin vs. CA) relationship that the client has requested to
be held inviolate or the disclosure of which
a. Is attorney’s fee deemed incorporated in would be embarrassing or detrimental to the
the general prayer for ‘such other relief client. (Ibid)
and remedy as this court may deem just
and equitable’? 2. The protection given to the client is perpetual and
does not cease with the termination of the
No. Attorney’s fees must be specifically litigation nor is affected by the party ceasing to
prayed for and proven and justified in the employ the attorney and employ another or any
decision itself. (Trans- Asia Shipping other change of relation between them. It even
Lines, Inc. Vs. CA) survives the death of the client.
3. On Termination of Services of a Lawyer
b. Can the Court of Appeals review the
decision of lower courts fixing attorney’s a. Confidentiality rule continues: A lawyer shall
fees? preserve the confidences and secrets of his
client even after the attorney-client relation is
Yes. The CA, in the exercise of its terminated (Canon 21, Code of Professional
jurisdiction to review the decisions of Responsibility).
lower courts can determine whether the b. Part of the duty of Loyalty: An attorney owes
attorney’s fees fixed by said courts are loyalty to his client not only in the case in
reasonable under the circumstances. which he has represented him but also after
After taking into consideration the various relation of attorney and client has terminated.
factors to guide the courts in the fixing of
such fees, an appellate court can reduce 4. In case of conflicting opinions between two
the attorney’s fees stipulated by the counsels: the conflict shall be frankly stated to
parties in a contract for professional the client for his final determination. His decision
services or awarded by the lower court to is final. If the lawyer whose opinion was not
levels which it deems reasonable. accepted could not practicably cooperate with
the decision, he can ask the client to relieve him
(Canon 7 of the CPE, not CPR)
a.8 Preservation of Client’s
PROHIBITED DISCLOSURES AND USE
Confidences
RULE 21.01 - A LAWYER SHALL NOT REVEAL
CANON 21 - A LAWYER SHALL PRESERVE THE CONFIDENCES OR SECRETS OF HIS
THE CONFIDENCE AND SECRETS OF HIS CLIENT EXCEPT:
CLIENT EVEN AFTER THE ATTORNEY-
CLIENT RELATION IS TERMINATED 1. May a lawyer reveal the confidences or secrets
of his client?
Related: CANON 17 - A LAWYER OWES FIDELITY
TO THE CAUSE OF HIS CLIENT AND HE SHALL GR: A lawyer shall not reveal the confidences and
BE MINDFUL OF THE TRUST AND CONFIDENCE secrets of his client. NB: even if the attorney did not
REPOSED IN HIM. accept the employment
 Confidential information obtains even against
XPN: (Rule 21.01) government agencies and instrumentalities. (Funa,
2009)
a. [CONSENT OF CLIENT] When authorized
by his client after acquainting him of the RULE 21.04 [next thought unit]
consequences of the disclosure;
RULE 21.05 – A LAWYER SHALL ADOPT SUCH
Note: as to the lawyer’ secretary, stenographer or MEASURES AS MAY BE REQUIRED TO
check, the consent of the lawyer is also necessary. PREVENT THOSE WHOSE SERVICES ARE
UTILIZED BY HIM, FROM DISCLOSING OR
b. When required by law; USING CONFIDENCES OR SECRETS OF THE
c. When necessary to collect his fees or to CLIENT.
defend himself, his employees or
associates by judicial action. RULE 21.06 – A LAWYER SHALL AVOID
2. What are the acts punished as betrayal of trust INDISCREET CONVERSATION ABOUT A
by attorney as provided for in Art. 209 of the CLIENT’S AFFAIRS EVEN WITH MEMBERS OF
Revised Penal Code? HIS FAMILY.

a. By causing damage to his client, either by: RULE 21.07 – A LAWYER SHALL NOT REVEAL
THAT HE HAS BEEN CONSULTED ABOUT A
i. any malicious breach of professional PARTICULAR CASE EXCEPT TO AVOID
duty or POSSIBLE CONFLICT OF INTEREST.
ii. inexcusable negligence or ignorance
DISCLOSURE; WHEN ALLOWED

b. By revealing any of the secrets of his clients RULE 21.04 – A LAWYER MAY DISCLOSE THE
learned by him in his professional capacity. AFFAIRS OF A CLIENT OF THE FIRM TO
PARTNERS OR ASSOCIATES THEREOF
c. By undertaking the defense of the opposing UNLESS PROHIBITED BY THE CLIENT
party in the same case, without the consent
of his first client, after having undertaken the GR: a lawyer may disclose the affairs of a client of
defense of said first client or after having the firm to partners or associates thereof. The
received confidential information from said employment of a member of a firm is generally
client. considered as employment of the firm itself.

RELATED RULES ON PROHIBITED XPN: unless prohibited by the client.

DISCLOSURES

RULE 21.02 – A LAWYER SHALL NOT, TO THE a.9 WITHDRAWAL OF SERVICES

DISADVANTAGE OF HIS CLIENT, USE
INFORMATION ACQUIRED IN THE COURSE OF
EMPLOYMENT, NOR SHALL HE USE THE SAME CANON 22 - A LAWYER SHALL WITHDRAW
TO HIS OWN ADVANTAGE OR THAT OF A THIRD HIS SERVICES ONLY FOR GOOD CAUSE
PERSON, UNLESS THE CLIENT WITH FULL AND UPON NOTICE APPROPRIATE IN THE
KNOWLEDGE OF THE CIRCUMSTANCES CIRCUMSTANCES.
CONSENTS THERETO.
RULE 22.01 – A LAWYER MAY WITHDRAW HIS
RULE 21.03 – A LAWYER SHALL NOT, WITHOUT SERVICES IN ANY OF THE FOLLOWING CASE
THE WRITTEN CONSENT OF HIS CLIENT, GIVE (infra):
INFORMATION FROM HIS FILES TO AN
OUTSIDE AGENCY SEEKING SUCH Lawyer withdrawing from the case
INFORMATION FOR AUDITING, STATISTICAL,
BOOKKEEPING, ACCOUNTING, DATA 1. Right to Withdraw [1998 Bar]
PROCESSING, OR ANY OTHER SIMILAR
PURPOSES. GR: A lawyer lacks the unqualified right to withdraw
once he has taken a case. By his acceptance, he
has impliedly stipulated that he will prosecute the
case to conclusion. This is especially true when such Note: if it’s only the client’s disagreement to an
withdrawal will work injustice to a client or frustrate increase in lawyer’s fees, there is no valid ground to
the ends of justice. withdraw

Note: Hot Potato Rule: the principle that a lawyer Note: In the cases above, the lawyer must file a
may not unreasonably withdraw from representing a written motion with an express consent of his client
client. and the court shall determine whether he ought to be
allowed to retire. He may also retire at any time from
XPN: The right of a lawyer to retire from the case an action or special proceeding without the consent
before its final adjudication, which arises only from: of his client, should the court, on notice to the client
and attorney, and on hearing, determine that he
i. The client’s written consent; ought to be allowed to retire. (Sec. 26, Rule 138,
RRC).
Note: this one does not require approval of the court,
especially if accompanied by the appearance of a f. When the lawyer is elected or appointed to
new counsel. public office; and
ii. or by permission of the court after due
notice and hearing. g. Other similar cases.
iii. Under Canon 22: only for good cause and
upon notice appropriate under the The following are not in Rule 22.01
circumstances.
h. When the client deliberately fails to pay the
Note: an admission of guilt by the client is not a valid fees for the services or fails to comply with
cause of withdrawal. the retainer agreement;

Note: the lawyer is still considered the counsel of i. When the lawyer finds out that he might be
record until his withdrawal of appearance has been appearing for a conflicting interest.
actually filed and granted.
4. What is the procedure when withdrawal is
3. Rule 22.01 - A lawyer may withdraw his services without client’s consent?
in any of the following cases:
a. File a petition for withdrawal in court.
a. When the client pursues an illegal or immoral
course of conduct in connection with the b. Serve a copy of this petition upon his client
matter he is handling; and the adverse party at least 3 days
before the date set for hearing.
b. When the client insists that the lawyer pursue
conduct violative of these canons and rules; i. He should present his petition well
in advance of the trial of the action
EG: a lawyer can withdraw if a client insists to enable the client to secure the
on presenting lying witnesses services of another lawyer.

c. When his inability to work with co-counsel will ii. If the application is filed under
not promote the best interest of the client; circumstances that do not afford a
substitute counsel sufficient time
d. When the mental or physical condition of the to prepare for trial or that work
lawyer renders it difficult for him to carry out prejudice to the client’s cause, the
the employment effectively; court may deny his application and
require him to conduct the trial.
Note: heavy workload is not a sufficient reason for a
counsel to withdraw. iii. A lawyer should not presume that
the court will grant his petition for
e. When the client deliberately fails to pay the withdrawal. Until his withdrawal
fees for the services or fails to comply with shall have been [ap]proved, the
the retainer agreement; lawyer remains counsel of record
 who is expected by his client as Note: A lawyer should question his discharge
well as by the court to do what the otherwise he will only be allowed to recover on
interests of his client require. quantum meruit basis.

Client discharging the services of his lawyer 3. What are the limitations on client’s right to
discharge the services of his lawyer?
1. Right of the client to dismiss the lawyer (1988,
1998 Bar): A client has the right to dismiss his a. When made with justifiable cause, it shall
lawyer at any time, with or without just cause. negate the attorney’s right to full payment
The existence or non-existence of just cause is of compensation.
material only for determining the right of the
lawyer to compensation for services rendered. b. The attorney may, in the discretion of the
The client's right to terminate the lawyer's court, intervene in the case to protect his
services springs from the strictly personal and right to fees.
highly confidential nature of the relationship
between the lawyer and the client. Once the c. A client may not be permitted to abuse
client loses confidence in his lawyer, he has the his right to discharge his counsel as an
right to dismiss him. excuse to secure repeated extensions of
time to file a pleading or to indefinitely
2. Can a client discharge the services of his lawyer avoid a trial.
without a cause? (1994, 1997, 1998 Bar
Question) 4. Is notice of discharge necessary? It is not
necessary between client and attorney. But
Yes. A client has the right to discharge his insofar as the court and the adverse party is
attorney at any time with or without a cause concerned, the severance of the relation of
or even against his consent. attorney and client is not effective until:

a. With just cause – lawyer is not a. A notice of discharge by the client or a

necessarily deprived of his right to be manifestation clearly indicating that
paid for his services. He may only be purpose is filed with the court; and
deprived of such right if the cause for his
dismissal constitutes in itself a sufficient b. A copy thereof served upon the adverse
legal obstacle to recovery. party.
b. Without just cause
i. No express written agreement 5. What should a lawyer do if no notice of discharge
as to fees - reasonable value was filed by the client with the court? If the client
of his services up to the date of has not filed a notice of discharge, the duty of the
his dismissal (quantum attorney, upon being informed by his client that
meruit). his services have been dispensed with, is to file:
ii. There is written agreement
and the fee stipulated is a. A notice of withdrawal with the client’s
absolute and reasonable – full conformity; or
payment of compensation. b. An application to retire from the case, he
being released from professional
iii. The fee stipulated is responsibility only after his dismissal or
contingent. withdrawal is made of record.
iv. If dismissed before the
conclusion of the action - 6. What are the conditions for substitution of
reasonable value of his counsel?
services (quantum meruit)
a. Written application;
v. If contingency occurs or client b. Written consent of the client;
prevents its occurrence – full c. Written consent of the attorney to be
amount. substituted, or in the absence thereof,
proof of service of notice of said motion
 to the attorney to be substituted in the
manner prescribed by the rules.
7. For the duties of the discharged lawyer, see next
Rule [Rule 22.02]

RULE 22.02 – A LAWYER WHO WITHDRAWS OR

IS DISCHARGED SHALL, SUBJECT TO A
RETAINING LIEN, IMMEDIATELY TURN OVER
ALL PAPERS AND PROPERTY TO WHICH THE
CLIENT IS ENTITLED, AND SHALL COOPERATE
WITH HIS SUCCESSOR IN THE ORDERLY
TRANSFER OF THE MATTER, INCLUDING ALL
INFORMATION NECESSARY FOR THE PROPER
HANDLING OF THE MATTER.

What are the duties of a discharged lawyer or one

who withdraws?

1. Immediately turn-over all papers and property to

which the client is entitled; and

2. To cooperate with his successor in the orderly

transfer of the case.