Legal and Judicial Ethics (Agpalo) Chapter 8
Legal and Judicial Ethics (Agpalo) Chapter 8
A lawyer is expected to account for all the funds and property that he
is to receive or to handle for his client.
o An attorney should promptly account for all the expenses he may incur.
o When a client gives money to his lawyer for a specific purpose such as
to file an action, appeal an adverse judgment, consummate a
settlement or pay the amount of a parcel of land to be purchased, the
lawyer must be able to account for all these expenses.
o Failure to return the money leads to the presumption that the lawyer
must have misappropriated such.
o If the money given was not used for the purpose which it was intended
for, the money should be returned to the client immediately.
o There must be due authorization before a lawyer may touch the money
that was put in his trust.
o When he fails to do these things then he may be disbarred or
suspended.
A lawyer shall not commingle clients funds.
o Rule 16.02
A lawyer must never commingle the funds that were entrusted
to him by his client with his private funds.
He should promptly report the money of his client that has
come to his possession.
A lawyer shall deliver funds to client, subject to his lien.
o Rule 16.03
Failure of the attorney to return to his client the funds that are
in his care will likely give rise to the presumption that he has
misappropriated his clients funds and used them for his own
use.
Without the clients consent, one may not apply the funds to his
fees.
Even if there was a disagreement with the attorneys fees, the
lawyer must still give the funds in his care to the client without
prejudice to the lawyers right to file a case for the collection of
his fees.
C. Restrictions against buying clients property.
Purchase of clients property in litigation.
o The prohibition which rests upon the considerations of public policy
and interest is intended to curtail any undue influence of the lawyers
upon his client on account of his fiduciary and confidential relation with
him.
o The law makes the incapacity of the lawyer to acquire his clients
property, absolute and permanent.
o This stands on the moral obligation of an attorney to refrain from
placing himself in the position which ordinarily excites conflict between
self-interest and integrity.
Application of the rule.
o Elements of the prohibition.
There must be an attorney-client relationship.
The property or interest of the client must be in litigation.
Attorney takes part in the case.
o