Professional Documents
Culture Documents
Agcnotes: The Test in Determining Conflicting Interest: The Test Is
Agcnotes: The Test in Determining Conflicting Interest: The Test Is
AGCNotes
Rule 14.03 A lawyer may refuse to accept representation of a Rule 15.03 A lawyer shall not represent conflicting interests
client if: except by written consent of all concerned given after a full
1. a. He is not in position to carry out the work effectively disclosure of the facts.
and competently.
2. b. He labors under conflict of interest between him and Rule on Conflicting Interest
the prospective client or between a present client and the
prospective client.
It is generally the rule based on sound public policy that an
attorney cannot represent adverse interest. It is highly improper to
Rule 14.04 A lawyer who accepts the cause of a person unable
represent both sides of an issue. The proscription against
to pay his professional fees shall observe the same standard of
representation of conflicting interest finds application where the
conduct governing his relations with paying clients.
conflicting interest arises with respect to the same general matter and
Duties to Client: is applicable however slight such adverse interest may be. It applies
1. owe utmost learning and ability although the attorneys intention and motives were honest and he
2. maintain inviolate the confidence of the client acted in good faith. However, representation of conflicting interest may
3. disclose all circumstances/interest regarding the controversy be allowed where the parties consent to the representation after full
4. undivided loyalty disclosure of facts. (Nakpil vs. Valdez, 286 SCRA 758).
5. not reject cause of defenseless and oppressed General Rule:An attorney cannot represent adverse interest.
6. candor, fairness and loyalty
7. hold in trust money or property Exception:Where the parties consent to the representation
8. respond with zeal to the cause of the client after full disclosure of facts.
Appointment of Amicus Curae The TEST in determining Conflicting Interest: The test is
1. by application to the judge whether or not the acceptance of a new relation will prevent an
2. the judge on his own initiative may invite the lawyer attorney from the full discharge of his duty of individual fidelity
3. no right to interfere with or control the condition of the record, and loyalty to his client or invite suspicion of unfaithfulness in
no control over the suit double-dealing in the performance thereof.(Tiana vs. Ocampo)
Cannot refuse on the ground of insufficient of compensation or Rule 15.04 A lawyer may, with the written consent of all
lack of it concerned, act as mediator, conciliator or arbitrator in settling
disputes.
CANON 15 A lawyer shall observe candor, fairness and loyalty Rule 15.05 A lawyer, when advising his client, shall give a
in all his dealings and transactions with his client. candid and honest opinion on the merits and probable results of
the clients case, neither overstating nor understating the
Rule 15.01 A lawyer in conferring with a prospective client, shall prospects of the case.
ascertain as soon as practicable whether the matter would Rule 15.06 A lawyer shall not state nor imply that he is able to
involve a conflict with another client or his own interest, and if so, influence any public official, tribunal or legislative body.
shall forthwith inform the prospective client. Rule 15.07 A lawyer shall impress upon his client compliance
Rule 15.02 A lawyer shall be bound by the rule on privilege with the laws and the principles of fairness.
communication in respect of matters disclosed to him by a Rule 15.08 A lawyer who is engaged in another profession or
prospective client. occupation concurrently with the practice of law shall make clear
to his client whether he is acting as a lawyer or in another
capacity.
Rule on Revealing Clients Identity
Lawyers should refrain from giving any advice unless they
have obtained sufficient understanding of their clients
General Rule: A lawyer may not invoke privilege cause. A careful investigation and examination of the facts
communication to refuse revealing a clients identity. (Regala must first be had before any legal opinion be given by the
vs. Sandiganbayan, 262 SCRA 122, September 20, 1996) lawyer to the client.
Exceptions:
To avoid breach of legal ethics, a lawyer should keep any
business, in which is engaged in concurrently with the practice
1. When by divulging such identity, it would implicate the client to
of law, entirely separate and apart from the latter.
that same controversy for which the lawyers services were
required.
2. It would open client to civil liability CANON 16 A lawyer shall hold in trust all moneys and
3. The disclosure of such identity will provide for the only link in properties of his client that may come into his possession.
order to convict the accused, otherwise, the government has
no case. Rule 16.01 A lawyer shall account for all money or property
Requisites of Privileged Communication: collected or received for or from the client.
1. Atty.-client relationship (or a kind of consultancy relationship Rule 16.02 A lawyer shall keep the funds of each client separate
with a prospective client and apart from his own and those of others kept by him.
2. Communication made by client to lawyer in the course of Rule 16.03 A lawyer shall deliver the funds and property of his
lawyers professional employment client when due or upon demand. However, he shall have a lien
LegCou 2015-16 2
AGCNotes
over the funds and may apply so much thereof as may be Competence: sufficiency of lawyers qualification to deal with
necessary to satisfy his lawful fees and disbursements, giving the matter in question and includes knowledge and skill and
notice promptly thereafter to his client. He shall also have a lien the ability to use them effectively in the interest of the client.
to the same extent on all judgments and executions he has
secured for his client as provided for the Rules of Court. A lawyer must keep himself constantly abreast with the trend
of authoritative pronouncements and developments in all
Attorneys Liens an attorney shall have a lien upon the funds,
branches of law.
documents and papers of his client which have lawfully come into his
possession and may retain the same until his lawful fees and There must be extraordinary diligence in prosecution or
disbursements have been paid, and may apply such finds to the defense of his clients cause.
satisfaction thereof. He shall also have a lien to the same extent upon If a lawyer errs like any other human being, he is not
all judgements for the payment of money, and executions issued in answerable for every error or mistake, and will be protected as
pursuance of such judgements which he has secured in a litigation of long as he acts honestly and in good faith to the best of his
his client, from and after the time when he shall have caused a skill and knowledge.
statement of his claim of such lien to be entered upon the records of Lawyer is not an insurer of the result in a case where he is
the court rendering such judgement, or issuing such execution, and engaged in the counsel.
shall have caused written notice thereof to be delivered to his client
and to the adverse party; and he shall have the same right and power
over such judgments and executions as his client would have to CANON 19 A lawyer shall represent his client with zeal within
enforce his lien and secure the payment of his fees and the bounds of the law.
disbursements. (Sec, 37, Rule 138, RRC)
Rule 16.04 A lawyer shall not borrow money from his client Rule 19.01 A lawyer shall employ only fair and honest means to
unless the clients interests are fully protected by the nature of attain the lawful objectives of his client and shall not present,
the case or by independent advice. Neither shall a lawyer lend participate in presenting or threaten to present unfounded
money to a client except, when in the interest of justice, he has to criminal charges to obtain an improper advantage in any case or
advance necessary expenses in the legal matter he is handling for proceeding.
the client. Rule 19.02 A lawyer who has received information that his client
Attorneys lien is not an excuse for non-rendition of accounting has, in the course of the representation, perpetuated a fraud upon
a person or tribunal, shall promptly call upon the client to rectify
Cannot disburse clients money to clients creditors without the same, and failing which he ha to terminate the relationship
authority. with such client in accordance with the Rules of Court.
Failure to deliver upon demand gives rise to the presumption Rule 19.03 A lawyer shall not allow his client to dictate the
that he has misappropriated the funds for his own use to the procedure in handling the case.
prejudice of the client and in violation of the trust reposed in General Rule: Negligence binds client
him. Exception: Reckless imprudence (deprives client of due process)
Notify client if retaining lien shall be implemented
When a lawyer enforces a charging lien against his client, the Results in outright deprivation of ones property through technicality
client-lawyer relationship is terminated.
The principle behind Rule 16.04 is to prevent the lawyer from Must not present in evidence any document known to be false;
taking advantage of his influence over the client or to avoid
nor present a false witness.
acquiring a financial interest in the outcome of the case.
Negative pregnant is improper since it is an ambiguous
pleading (improper if in bad faith and the purpose is to confuse
CANON 17 A lawyer owes fidelity to the cause of his client and
the other party)
he shall be mindful of the trust and confidence reposed in him.
In defense: present every defense the law permits.
Lawyer should do his best efforts to restrain and to prevent his
No fear of judicial disfavor or public popularity should restrain clients from perpetrating acts which he himself ought not to do.
him from full discharge of his duty. Or else, withdraw. But lawyer shall not volunteer the
It is the duty of the lawyer at the time of retainer to disclose to information about the clients commission of fraud to anyone
the client all the circumstances of his relations to the parties counter to duty to maintain clients confidence and secrets.
and any interest in, or connection with, the controversy which
might influence the client in the selection of counsel. CANON 20 A lawyer shall charge only fair and reasonable fees.
The lawyer owes loyalty to his client even after the relation of
attorney and client has terminated. It is not good practice to Rule 20.01 A lawyer shall be guided by the following factors in
permit him afterwards to defend in another case other persons determining his fees:
against his former client under the pretext that the case is 1. a. The time spent and the extent of the services
distinct from and independent of the former case. rendered or required.
2. b. The novelty and difficulty of the questions involved;
CANON 18 A lawyer shall serve his client with competence and 3. c. The importance of the subject matter;
diligence. 4. d. The skill demanded;
5. e. The probability of losing other employment as a
Rule 18.01 A lawyer shall not undertake a legal service which he result of acceptance of the proffered case;
knows or should know that he is not qualified to 6. f. The customary charges for similar services and the
render. However, he may render such service if, with the consent schedule of fees of the IBP chapter to which he belongs;
of his client, he can obtain as collaborating counsel a lawyer who 7. g. The amount involved in the controversy and the
is competent on the matter. benefits resulting to the client from the services;
Rule 18.02 A lawyer shall not handle any legal matter without 8. h. The contingency or certainty of compensation;
adequate preparation. 9. i. The character of the employment, whether
Rule 18.03 A lawyer shall not neglect a legal matter entrusted to occasional or established; and
him and his negligence in connection therewith shall render him 10. j. The professional standing of the lawyer.
liable. Kinds of Payment which may be stipulated upon:
Rule 18.04 A lawyer shall keep the client informed of the status 1. a fixed or absolute fee which is payable regardless of the
of his case and shall respond within a reasonable time to the result of the case
clients request for information.
LegCou 2015-16 3
AGCNotes
2. a contingent fee that is conditioned to the securing of a When counsel cannot recover full amount despite written
favorable judgment and recovery of money or property and the contract for attorneys fees:
amount of which may be on a percentage basis 1. When he withdraws before the case is finished
3. a fixed fee payable per appearance 2. justified dismissal of attorney (payment: in quantum
4. a fixed fee computed by the number of hours spent meruit only)
5. a fixed fee based on a piece of work
The reason for the award of attorneys fees must be stated in
Attorneys Fees the text of the decision; otherwise, if it is stated only in the
1. Ordinary attorneys fee -the reasonable compensation paid to dispositive portion of the decision, the same must be
a lawyer by his client for the legal services he has rendered to disallowed on appeal.
the latter. The basis for this compensation is the fact of his
employment by and his agreement with the client.
Even though the interest or property involved is of
considerable value, if the legal services rendered do not call
2. Extraordinary attorneys fee an indemnity for damages
for much efforts there is no justification for the award of high
ordered by the court to be paid by the losing party in litigation.
fees.
The basis for this is any of the cases provided for by law
where such award can be made, such as those authorized in Champertous Contracts (void) Lawyer stipulates with his
Article 2208 of the Civil Code, and is payable NOT to the client that in the prosecution of the case, he will bear all the
lawyer but to the client, unless they have agreed that the expenses for the recovery of things or property being claimed
award shall pertain to the lawyer as additional compensation by the client and the latter agrees to pay the former a portion
or as part thereof. of the thing/property recovered as compensation.
How attorneys fees may be claimed by the lawyer: Compensation to an attorney for merely recommending
1. It may be asserted either in the very action in which the another lawyer is improper (agents)
services of a lawyer had been rendered or in a separate Attorneys fees for legal services shared or divided to non-
action. lawyer is prohibited. Division of fees is only for division of
2. A petition for attorneys fees may be filed before the judgment service or responsibility.
in favor of the client is satisfied or the proceeds thereof A lawyer should try to settle amicably any differences on the
delivered to the client. subject. A lawyer has 2 options. Judicial action to recover
3. The determination as to the propriety of the fees or as to the attorneys fees:
amount thereof will have to be held in abeyance until the main 1. In same case: Enforce attorneys fees by filing an appropriate
case from which the lawyers claim for attorneys fees may motion or petition as an incident to the main action where he
arise has become final. Otherwise, the determination of the rendered legal services.
courts will be premature. 2. In a separate civil action.
Kinds of Retainer Agreements on Attorneys fees:
1. General Retainer or Retaining Fee it is the fee paid to a CANON 21 A lawyer shall preserve the confidences and secrets
lawyer to secure his future services as general counsel for any of his client even after the attorney-client relation is terminated.
ordinary legal problem that may arise in the ordinary business
of the client and referred to him for legal action;
2. Special Retainer that is a fee for a specific case or service Confidence refers to information protected by the attorney-
rendered by the lawyer for a client client privilege (RRC)
Quantum Meruit it means as much as he deserves, and is Secret refers to other information gained in the professional
used as the basis for determining the lawyers professional relationship that the client has regulated to be held inviolate or
fees in the absence of a contract, but recoverable by him from the disclosure of which would be embarrassing or would likely
his client. be detrimental to the client.
Quantum Meruit is resorted to where: An attorney cannot, without the consent of his client, be
1. there is no express contract for payment of attorneys fees examined as to any communication made by the client to him,
agreed upon between the lawyer and the client; or his advice given thereon in the course of professional
2. when although there is a formal contract for attorneys fees, employment; nor can an attorneys secretary, stenographer, or
the stipulated fees are found unconscionable or unreasonable clerk be examined, without the consent of the client and his
by the court. employees, concerning any fact the knowledge of which has
3. When the contract for attorneys fees is void due to purely been acquired in such capacity (Rule 130, Sec. 21 (b), RRC)
formal matters or defects of execution The mere establishment of a client-lawyer relationship does
4. When the counsel, for justifiable cause, was not able to finish not raise a presumption of confidentiality. There must be an
the case to its conclusion intent or that the communication relayed by the client to the
5. When lawyer and client disregard the contract for attorneys lawyer be treated as confidential.
fees. Rule 21.01 A lawyer shall not reveal the confidences or secrets
Skill: length of practice is not a safe criterion of professional of his client except:
ability. 1. a. When authorized by the client after acquainting him
Rule 20.02 A lawyer shall, in cases of referral, with the consent of the consequences of the disclosure:
of the client, be entitled to a division of fees in proportion to the 2. b. When required by law;
work performed and responsibility assumed. 3. c. When necessary to collect his fees or to defend
Rule 20.03 A lawyer shall not, without the full knowledge and himself, his employees or associates or by judicial action.
consent of the client, accept any fee, reward, costs, commission, When properly authorized after having been fully informed of
interest, rebate or forwarding allowance or other compensation the consequences to reveal his confidences/secrets, then
whatsoever related to his professional employment from anyone there is a valid waiver.
other than the client.
Rule 20.04 A lawyer shall avoid controversies with clients
Art. 209. Betrayal of Trust by an Attorney or Solicitor.
Revelation of secrets. In addition to the proper administrative
concerning his compensation and shall resort to judicial action
only to prevent imposition, injustice or fraud. action, the penalty of prision correccional in its minimum
period, or a fine ranging from P200 to P1000, or both, shall be
Unauthorized counsel: Not entitled to attorneys fees. imposed upon any attorney at law or solicitor who, by any
Stipulation regarding payments of attorneys fees is not malicious break of professional duty as inexcusable
illegal/immoral and is enforceable as the law between the negligence or ignorance, shall prejudice his client, or reveal
parties provided such stipulation does not contravene law, any of the secrets of the latter learned by him in his
good morals, etc. professional capacity.
LegCou 2015-16 4
AGCNotes
concerning any fact the knowledge of which has been acquired in such a). Any data or information supplied by the client personally or through
capacity confidential agents, either to the lawyer or to the lawyers employees.
This may have been supplied through any form of oral or written
communication.
II. REASON: The rule is grounded on public policy and the proper b). All documents, objects or thing delivered to the lawyer except those
administration of justice. It is to encourage clients to make a full the existence and/or contents of which are or maybe known.
disclosure of all facts relative to a problem for which he sought the
professional services of a lawyer, without fear or reservation that these Thus titles to land, contracts, reply-communications, bank pass
facts will later be revealed especially if the nature of the facts are such books, dishonored checks, cannot be considered as confidential.
that they might adversely affect his rights, property or reputation. This
is to inspire confidence and thus it is also to enable the lawyer to give c). Acts or conduct by the client, such as physical demonstration of
the appropriate advice or to undertake such action that will best serve actions or events, or giving a sample of his handwriting to show he is
the interest of the client. not the falsifier.
d). The advice given by the lawyer to the client orally or though any
mode of written communication.
III. REQUIREMENTS
e). The identity of the client. As a matter of public policy a lawyer may
A. There must be a lawyer-client relationship not invoke the privilege and refuse to divulge the name or identity of
the client except in the situation when the clients name has an
independent significance such that disclosure would reveal the clients
confidences.
1. The term lawyer refers to:
(c). Non-lawyers who misrepresent themselves as members of the bar (iii). Where the government prosecutors have no case against the
in order to obtain the confidence of a person and believed as such by client and compelling the lawyer to reveal his clients name would
the latter. furnish the only link that would form a chain of testimony necessary to
convict the client of a crime.
c). however the rule does not cover situations where the lawyer was a). those intended to be made public
consulted merely as a notary
b). or intended to be communicated to a third person
2. The term communication includes the following: h). opinions on abstract questions or hypothetical questions of law
LegCou 2015-16 6
AGCNotes
4. In case of a suit by and between the lawyer and the client, the rule
does not apply
C. If the lawyer, as witness to a case which does not involve the client,
divulges confidential communication without the prior consent of the
client, he may be liable criminally, civilly and administratively.