PROBLEM AREAS IN LEGAL ETHICS

Arellano University School of Law

Establishing & Terminating Attorney-Client Relationship

Proper Conduct of Lawyers & Clients in Lawyer-Client Relationship
Confidentiality Between Lawyers & Clients
Attorney’s Fees & Compensation for Legal Services

In Partial Fulfillment of the Requirements

for the Subject of
Problem Areas in Legal Ethics

Group Members:

Felicitas, Karen R.
Magnayon, Paolo Millan A.
Palmaria, Mary Grace R.
Segui, Carmela M.
Verdadero, Benjamin Luke Phillip G.
Yang, Ryan Jhay H.

September 2023
 ESTABLISHING & TERMINATING ATTORNEY-CLIENT RELATIONSHIP
OLD CODE OF PROFESSIONAL RESPONSIBILITY:

CANON 14 - A LAWYER SHALL NOT REFUSE HIS SERVICES TO THE NEEDY

Rule 14.01 - A lawyer shall not decline to represent a person solely on account of the latter's race, sex. creed or
status of life, or because of his own opinion regarding the guilt of said person.

Rule 14.02 - A lawyer shall not decline, except for serious and sufficient cause, an appointment as counsel de
officio or as amicus curiae, or a request from the Integrated Bar of the Philippines or any of its chapters for
rendition of free legal aid.

Rule 14.03 - A lawyer may not refuse to accept representation of an indigent client unless: (a) he is not in a
position to carry out the work effectively or competently; (b) he labors under a conflict of interest between him
and the prospective client or between a present client and the prospective client.

Rule 14.04 - A lawyer who accepts the cause of a person unable to pay his professional fees shall observe the
same standard of conduct governing his relations with paying clients.

NEW CODE OF PROFESSIONAL RESPONSIBILITY:

Canon III, Section 3. Lawyer-client relationship.

A lawyer-client relationship is of the highest fiduciary character. As a trust relation, it is essential that the
engagement is founded on the confidence reposed by the client on the lawyer. Therefore, a lawyer-client
relationship shall arise when the client consciously, voluntarily and in good faith vests a lawyer with the client's
confidence for the purpose of rendering legal services such as providing legal advice or representation, and the
lawyer, whether expressly or impliedly, agrees to render such services.

· A lawyer-client relationship is established when a lawyer voluntarily entertains a consultation;

regardless of the close relationship between the parties or the absence of a written contract or
non-payment of legal fees. Once a lawyer agrees to take up the client's cause, the lawyer must serve the
client with diligence and competence. A lawyer who is negligent in attending to a client's cause may be
grounds for administrative sanction. (Sison v. Dumlao, A.C. No. 11959, April 28, 2021)

· The moment a person approaches a lawyer friend to seek legal advice, a veritable lawyer-client
relationship evolves between the two. Such a relationship imposes upon the lawyer certain restrictions
circumscribed by the ethics of the profession. Among the burdens of the relationship is that which enjoins
the lawyer, respondent in this instance, to keep inviolate confidential information acquired or revealed
during legal consultations. There is no difference that no contract whatsoever was executed by the parties
to memorialize the relationship. (Hadjula v. Madianda, A.C. No. 6711, July 3, 2007)

· Governing Principles for the Attorney-Client Privilege (Burbe v. Magulta, AC No. 99-634, June 10,
2002):
o An attorney-client relationship is established from the very first moment the client asks the
attorney for legal advice regarding the former's business. To constitute professional employment,
it is not essential that the client employed the attorney professionally on any previous occasion.
o It is not necessary that any retainer be paid, promised, or charged; nor is it material that the
attorney consulted did not afterward handle the case for which his service had been sought.
o If a person, in respect to business affairs or troubles of any kind, consults an attorney with a
view to obtaining professional advice or assistance, and the attorney voluntarily permits or
acquiesces with the consultation, then the professional employment is established.
o Likewise, an attorney-client relationship exists notwithstanding the close personal relationship
between the attorney and the client or the non-payment of the former's fees.

Canon V, Section 1. Non-Discrimination.

A lawyer shall not decline to represent a person solely on account of the latter's nationality or ethnicity, sexual
orientation or gender identity, religion, disability, age, marital status, social or economic status, political beliefs,
or such lawyer's or the public’s opinion regarding the guilt of said person, except for justifiable reasons.

Canon V, Section 2. Treatment of vulnerable persons.

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In dealing with a client who belongs to a vulnerable sector, a lawyer shall be mindful and sensitive of, and
consider the client's special circumstances, as well as the applicable laws and rules. The lawyer shall observe a
higher standard of service suited to the particular needs of the vulnerable person and shall assert such person's
right to meaningful access to justice.

A vulnerable person is a person who is at a higher risk of harm than others, and shall include children, the
elderly, the homeless, persons with disability, persons deprived of liberty, human rights victims, victims of
domestic violence, victims of armed conflict, those who are socio-economically disadvantaged, those who belong
to racial or ethnic minorities, or those with debilitating physical or mental conditions. (Canon V, Section 2)

Canon V, Section 3. Indigent person.

A lawyer shall not refuse the representation of an indigent person, except if:
(a) the lawyer is not in a position to carry out the work effectively or competently due to a justifiable
cause;
(b) the lawyer will be placed in a conflict-of- interest situation; or
(c) the lawyer is related to the potential adverse party, within the sixth degree of consanguinity or
affinity, or to the adverse counsel, within the fourth degree.
An indigent is any person who has no money or property sufficient for food, shelter and other basic necessities
for oneself and one’s family.

OLD CODE OF PROFESSIONAL RESPONSIBILITY:

Rule 22.01– A lawyer may WITHDRAW his services in any of the following cases:
a) When the client pursues an illegal or immoral course of conduct in connection with the matter he is handling;
b) When the client insists that the lawyer pursue conduct violative of these canons and rules;
c) When his inability to work with co- counsel will not promote the best interest of the client;
d) When the mental or physical condition of the lawyer renders it difficult for him to carry out the employment
effectively;
e) When the client deliberately fails to pay the fees for the services or fails to comply with the retainer agreement;
f) When the lawyer is elected or appointed to public office; and g) Other similar cases.
Rule 22.02 – A lawyer who withdraws or is discharged shall, subject to a retainer lien, immediately turn over all
papers and property to which the client is entitled, and shall cooperative with his successor in the orderly
transfer of the matter, including all information necessary for the proper handling of the matter.

NEW CODE OF PROFESSIONAL RESPONSIBILITY:

Canon III, Section 53. Termination of engagement by the lawyer.
A lawyer shall terminate the lawyer-client engagement only for good cause and upon written notice, in any of the
following cases:

● When the client pursues an illegal or immoral course of conduct in connection with the
engagement;
● When the client insists that the lawyer pursue conduct that is violative of these Canons and rules;
● When the lawyer's inability to work with a co-counsel will not promote the best interest of the
client;
● When the moral predisposition or the mental or physical condition of the lawyer renders it
difficult to carry out the engagement effectively;
● When the client deliberately fails to pay the fees for the lawyer's services, fails to comply with the
retainer agreement, or can no longer be found despite diligent efforts;
● When the lawyer is elected or appointed to public office;
● Other similar cases.

Canon III, Section 54. Termination of engagement by the client.

The lawyer-client engagement may be terminated by the client at any time upon loss of trust and confidence. The
termination of the engagement shall not relieve the client from full payment of all professional fees due to the
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lawyer. If the engagement has been reduced to writing, the lawyer shall be entitled to recover from the client the
full compensation stipulated, unless found by the court, tribunal or other government agency to be
unconscionable or unreasonable under Canon III, Section 41 of the CPRA. For the payment of the compensation,
the lawyer shall have a charging lien upon all judgments for the payment of money, and executions issued in
pursuance of such judgment, rendered in the case where the lawyer's services had been retained by the client.

● The rule in this jurisdiction is that a client has the absolute right to terminate the attorney-client
relation at anytime with or without cause. (Francisco v. Portugal, A.C. No. 6155, March 14, 2006)

Canon III, Section 55. Termination of engagement upon death.

The death of the lawyer or client shall terminate the lawyer-client relationship. The death of such lawyer shall not
extinguish the lawyer-client engagement between the law firm and the client handled by such law firm.

Revised Rules of Court, Rule 138, Sec. 26. Change of attorneys.

An attorney may retire at any time from any action or special proceeding, by the written consent of his client filed
in court. He may also retire at any time from an action or special proceeding, without the consent of his client,
should the court, on notice to the client and attorney, and on hearing, determine that he ought to be allowed to
retire. In case of substitution, the name of the attorney newly employed shall be entered on the docket of the
court in place of the former one, and written notice of the change shall be given to the adverse party.

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 PROPER CONDUCT OF LAWYERS AND CLIENTS IN LAWYER-CLIENT RELATIONSHIP

OLD CODE OF PROFESSIONAL RESPONSIBILITY:

CANON 15 - A LAWYER SHALL OBSERVE CANDOR, FAIRNESS AND LOYALTY IN ALL HIS DEALINGS AND
TRANSACTIONS WITH HIS CLIENTS.

Rule 15.01. - A lawyer, in conferring with a prospective client, shall ascertain as soon as practicable whether the
matter would involve a conflict with another client or his own interest, and if so, shall forthwith inform the
prospective client.

Rule 15.02. - A lawyer shall be bound by the rule on privilege communication in respect of matters disclosed to
him by a prospective client.

Rule 15.03. - A lawyer shall not represent conflicting interests except by written consent of all concerned given
after a full disclosure of the facts.

Rule 15.04. - A lawyer may, with the written consent of all concerned, act as mediator, conciliator or arbitrator in
settling disputes.

Rule 15.05. - A lawyer, when advising his client, shall give a candid and honest opinion on the merits and
probable results of the client's case, neither overstating nor understating the prospects of the case.

Rule 15.06. - A lawyer shall not state or imply that he is able to influence any public official, tribunal or legislative
body.

Rule 15.07. - A lawyer shall impress upon his client compliance with the laws and the principles of fairness.

Rule 15.08. - A lawyer who is engaged in another profession or occupation concurrently with the practice of law
shall make clear to his client whether he is acting as a lawyer or in another capacity.

CANON 18 - A LAWYER SHALL SERVE HIS CLIENT WITH COMPETENCE AND DILIGENCE.

Rules 18.01 - A lawyer shall not undertake a legal service which he knows or should know that he is not qualified
to render. However, he may render such service if, with the consent of his client, he can obtain as collaborating
counsel a lawyer who is competent on the matter.

Rule 18.02 - A lawyer shall not handle any legal matter without adequate preparation.

Rule 18.03 - A lawyer shall not neglect a legal matter entrusted to him, and his negligence in connection
therewith shall render him liable.

Rule 18.04 - A lawyer shall keep the client informed of the status of his case and shall respond within a
reasonable time to the client's request for information.

NEW CODE OF PROFESSIONAL RESPONSIBILITY:

Canon I, Section 5. Lawyer’s duty and discretion in procedure and strategy.

A lawyer shall NOT allow the client to dictate or determine the procedure in handling the case.

Nevertheless, a lawyer shall respect the client’s decision to settle or compromise the case after explaining its
consequences to the client.

Canon III, Section 8. Lawyer’s duty to encourage settlement.

A lawyer shall encourage the client to avoid, end or settle a controversy, whether pending or not, in order to reach
a settlement or a compromise if the matter can be compromised under the law and will admit of a fair settlement.

To this end, the lawyer shall actively assist the parties and the court, tribunal, or other government agency to
effect mediation and/or dispute resolution.

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Canon III, Section 9. Duty to call client to rectify [the latter’s] fraudulent act.
A lawyer who receives information that a client has, in the course of the representation, perpetrated a fraud in
relation to any matter subject of the representation before a court, tribunal, or other government agency, or
against any officer thereof, shall promptly call upon the client to rectify the same. Such fraudulent act on the part
of the client shall be a ground for the termination by the lawyer of the engagement.

Revised Rules of Court, Rule 138, Sec. 20:

● To employ, for the purpose of maintaining the causes confided to him, such means only as are
consistent with truth and honor, and never seek to mislead the judge or any judicial officer by an
artifice or false statement of fact or law;
● Not to encourage either the commencement or the continuance of an action or proceeding, or
delay any man’s cause, from any corrupt motive or interest
● To counsel or maintain such actions or proceedings only as appear to him to be just, and such
defenses only as he believes to be honestly debatable under the law.

Canon III, Section 16. Prohibition against dating, romantic or sexual relations with a client.
● General Rule: A lawyer shall NOT have dating, romantic, or sexual relations with a client during the
engagement.
● Exception: Dating, romantic, or sexual relations with a client during the engagement may be allowed if
such existed between them before the lawyer-client relationship commenced.

Canon IV, Section 1. Competent, efficient and conscientious service.

A lawyer shall provide legal service that is competent, efficient, and conscientious. A lawyer shall be thorough in
research, preparation, and application of the legal knowledge and skills necessary for an engagement.

Revised Rules of Court, Rule 138, Section 20. Lawyer’s duty to a Competent, efficient and conscientious
service under the Rules of Court.
In the defense of a person accused of a crime, by all fair and honorable means, regardless of his personal opinion
as to the guilt of the accused, to present every defense that the law permits, to the end that no person may be
deprived of life or liberty, but by due process of law.

Canon IV, Section 2. Undertaking legal services; collaborating counsel.

With the prior written consent of the client, a lawyer may secure the services of a collaborating counsel.

Canon IV, Section 5. Prompt and objective assessment of the merits.

A lawyer shall, after reasonable inquiry, promptly give an objective assessment of the merits and probable results
of the client’s case.

A lawyer shall explain the viable options to the client to enable an informed decision regarding the matter.

Canon IV, Section 6. Duty to update the client.

A lawyer shall regularly inform the client of the status and the result of the matter undertaken, and any action in
connection thereto, and shall respond within a reasonable time to the client’s request for information.

Canon IV, Section 7. Extension of time to file.

A lawyer shall AVOID asking for an extension of time to file any pleading, motion, or other court submission,
EXCEPT when allowed by the Rules of Court or for good cause.

When an extension is obtained, the lawyer shall not let the period lapse without submitting the pleading, motion,
or other court submission, EXCEPT upon the client’s decision not to pursue the case any further or for other
justifiable cause.

Canon IV, Section 9. Practice of law concurrent with another profession.

A lawyer who is engaged in another profession or occupation concurrently with the practice of law shall
expressly provide in the pertinent contract the nature of the services the lawyer is engaged to perform.

The practice of another profession or occupation shall NOT jeopardize such lawyer’s competence, integrity,
probity, and independence in rendering legal services.

Non-legal activities.
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A lawyer who is engaged in business or other non-legal profession shall likewise observe the ethical duties and
responsibilities of a lawyer under the CPRA. (Section 10, Canon IV)
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 CONFIDENTIALITY BETWEEN LAWYERS AND CLIENTS

OLD CODE OF PROFESSIONAL RESPONSIBILITY:

CANON 21 - A LAWYER SHALL PRESERVE THE CONFIDENCE AND SECRETS OF HIS CLIENT EVEN AFTER
THE ATTORNEY- CLIENT RELATION IS TERMINATED.

Rule 21.01 - A lawyer shall not reveal the confidences or secrets of his client except; (a) When authorized by the
client after acquainting him of the consequences of the disclosure; (b) When required by law; (c) When necessary
to collect his fees or to defend himself, his employees or associates or by judicial action.

Rule 21.02 - A lawyer shall not, to the disadvantage of his client, use information acquired in the course of
employment, nor shall he use the same to his own advantage or that of a third person, unless the client with full
knowledge of the circumstances consents thereto.

Rule 21.03 - A lawyer shall not, without the written consent of his client, give information from his files to an
outside agency seeking such information for auditing, statistical, bookkeeping, accounting, data processing, or
any similar purpose.

Rule 21.04 - A lawyer may disclose the affairs of a client of the firm to partners or associates thereof unless
prohibited by the client.

Rule 21.05 - A lawyer shall adopt such measures as may be required to prevent those whose services are utilized
by him, from disclosing or using confidences or secrets of the clients.

Rule 21.06 - A lawyer shall avoid indiscreet conversation about a client's affairs even with members of his family.

Rule 21.07 - A lawyer shall not reveal that he has been consulted about a particular case except to avoid possible
conflict of interest.

NEW CODE OF PROFESSIONAL RESPONSIBILITY:

Canon II, Section 40. Non-disclosure of privileged information through online posts. — A lawyer shall not
reveal, directly or indirectly, in his or her online posts confidential information obtained from a client or in the
course of, or emanating from, the representation, except when allowed by law or the CPRA.

Canon II, Section 41. Duty to safeguard client confidences in social media. — A lawyer, who uses a social
media account to communicate with any other person in relation to client confidences and information, shall
exert efforts to prevent the inadvertent or unauthorized disclosure or use of, or unauthorized access to, such an
account.

Canon III, Section 6. Fiduciary duty of a lawyer. — A lawyer shall be mindful of the trust and confidence
reposed by the client.

Canon III, Section 27. Confidentiality of privileged communication. — A lawyer shall maintain the confidence
of the client, and shall respect data privacy laws. The duty of confidentiality shall continue even after the
termination of the lawyer- client engagement.

Canon III, Section 28. Protecting client confidences. — A lawyer shall not reveal the confidences of the client,
including data from the client’s files, except;
a) When a written informed consent is obtained from the client;
b) When required by law, such as anti-money laundering statutes, or the Rules of Court;
c) To the extent necessary, to collect the lawyer’s fees;
d) In defense of the lawyer, or the lawyer’s employees or associates; or
e) By judicial order, but only if material.

Canon III, Section 29. Duty of confidentiality by former lawyers of a law firm. — A lawyer shall continue to be
bound by the rule on confidentiality pertaining to clients of his or her previous law office or law firm.

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Canon III, Section 30. Duty of confidentiality of members of a law firm. — A lawyer may disclose the legal
matters entrusted by a client of the firm to the partners and associates, as well as paralegals, legal assistants, law
clerks, legal researchers, law interns, and other non-legal staff, who are or will be involved in the handling of the
client’s account, unless expressly prohibited by the client.

A lawyer directly entrusted with a client’s confidences shall adopt necessary measures to prevent other members
of the law firm, both legal and non-legal, to whom the client’s confidences have been shared, from disclosing or
using them, without the written informed consent of the client.

Canon III, Section 31. Prohibition against filial disclosure. — A lawyer shall not discuss a client’s confidences
even with family members.

Canon III, Section 32. Non-disclosure of legal consultation. — A lawyer shall not reveal that he or she has been
consulted about a particular case except to avoid possible conflict of interest.

Revised Rules of Court, Rule 130, Section 24 (b). Disqualification by reason of privileged communication[s].
– The following persons cannot testify as to matters learned in confidence in the following cases:

(b) An attorney or person reasonably believed by the client to be licensed to engage in the practice of law
cannot, without the consent of the client, be examined as to any communication made by the client to him
or her, or his or her advice given thereon in the course of, or with a view to, professional employment, nor
can an attorney’s secretary, stenographer, or clerk, or other persons assisting the attorney be examined
without the consent of the client and his or her employer, concerning any fact the knowledge of which has
been acquired in such capacity, except in the following cases:

(i) Furtherance of crime or fraud. If the services or advice of the lawyer were sought or obtained to
enable or aid anyone to commit or plan to commit what the client knew or reasonably should have
known to be a crime or fraud;

(ii) Claimants through same deceased client. As to a communication relevant to an issue between
parties who claim through the same deceased client, regardless of whether the claims are by testate
or intestate or by inter vivos transaction;

(iii) Breach of duty by lawyer or client. As to a communication relevant to an issue of breach of duty
by the lawyer to his or her client, or by the client to his or her lawyer;

(iv) Document attested by the lawyer. As to a communication relevant to an issue concerning an

attested document to which the lawyer is an attesting witness;or

(v) Joint clients. As to a communication relevant to a matter of common interest between two [(2)]
or more clients if the communication was made by any of them to a lawyer retained or consulted in
common, when offered in an action between any of the clients, unless they have expressly agreed
otherwise.

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 ATTORNEY’S FEES AND COMPENSATION FOR LEGAL SERVICES

OLD CODE OF PROFESSIONAL RESPONSIBILITY:

Canon 20 - A lawyer shall charge only fair and reasonable fees.

RULE 20.01 A lawyer shall be guided by the following factors in determining his fees:
a) The time spent and the extent of the services rendered or required;
b) The novelty and difficulty of the questions involved;
c) The importance of the subject matter;
d) The skill demanded;
e) The probability of losing other employment as a result of acceptance of the proffered case;
f) The customary charges for similar services and the schedule of fees of the IBP chapter to which he belongs;
g) The amount involved in the controversy and the benefits resulting to the client from the service;
h) The contingency or certainty of compensation;
i) The character of the employment, whether occasional or established; and j) The professional standing of the
lawyer.

RULE 20.02 A lawyer shall, in cases of referral, with the consent of the client, be entitled to a division of fees in
proportion to the work performed and responsibility assumed.

RULE 20.03 A lawyer shall not, without the full knowledge and consent of the client, accept any fee, reward,
costs, commission, interest, rebate or forwarding allowance or other compensation whatsoever related to his
professional employment from anyone other than the client.

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

NEW CODE OF PROFESSIONAL RESPONSIBILITY:

Canon III, Section 41. Fair and reasonable fees.

A lawyer shall charge only fair and reasonable fees.

Attorney’s fees shall be deemed fair and reasonable if determined based on the following factors:
a. The time spent and the extent of the service rendered or required,
b. The novelty and difficulty of the issues involved,
c. The skill or expertise of the lawyer, including the level of study and experience required for the
engagement,
d. The probability of losing other engagements as a result of acceptance of the case,
e. The customary charges for similar services and the recommended schedule of fees, which the IBP
chapter shall provide,
f. The quantitative or qualitative value of the client’s interest in the engagement, or the benefits
resulting to the client from the service,
g. The contingency or certainty of compensation,
h. The character of the engagement, whether limited, seasonal, or otherwise; and
i. Other analogous factors.

Ordinary vs. Extraordinary Concept of Attorneys fee.

In the case of PCL Shipping Philippines vs. NLRC, the Supreme Court stated that there are 2 common concepts of
attorney’s fee which are the Ordinary and Extraordinary. The Ordinary Concept is when an attorney’s fee is at
reasonable compensation paid to a lawyer by his client for the legal services rendered. The basis of this
compensation is the fact of the attorney’s employment by and his agreement with the client.

On the other hand, the extraordinary concept, the attorney’s fees are deemed indemnity for damages ordered by
the court to be paid by the deemed indemnity for damages ordered by the court to be paid by the losing litigation.

The Quantum Meruit Principle.

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The principle of Quantum Meruit is a device to prevent the undue enrichment based on the equitable postulate
that it is unjust for a person to retain benefit without paying for it. The Quantum Meruit Principle may be the
basis for determining the reasonable amount of the Attorney's fee.

Canon III, Section 42. Division of fees upon referral.

A lawyer shall, in case of referral of legal services in favor of another lawyer, with the written informed consent of
the client, be entitled to a division of fees in proportion to the work performed and responsibility assumed.

Where a lawyer undertakes to complete unfinished legal business of a deceased lawyer, a division or sharing of
fees is allowed with the deceased lawyer’s legal heirs or estate.

In case, where there is a referral of a lawyer’s services, then the referral lawyer is entitled to a division of fees in
proportion to the work he performed, including the responsibility he assumed in relation to the work.

Canon III, Section 43. Non-Sharing of fees with non- lawyers.

A lawyer shall not share, split, or divide or stipulate to divide, directly or indirectly, a fee for legal services with
persons or organizations not licensed or authorized to practice law.
In general rule, the lawyer shall not divide or stipulate a fee for legal services with someone who is not licensed
to practice law. Under Section 27 Rule 138 of Rules of Court, a member of the bar may be disbarred or suspended
on the grounds such as:
1. Deceit
2. Malpractice or other gross misconduct in office
3. Gross immoral conduct
4. Conviction of a crime involving moral turpitude
5. Violation of the Lawyers oath
6. Willful disobedience to any lawful order of superior court
7. Willful appearing as an attorney for a party without authority.

Canon III, Section 44. Payment of compensation by third party.

A lawyer shall not receive any fee, reward, costs, commission, interest, rebate or forwarding allowance or other
compensation from anyone other than the client, except upon the written informed consent of such client.

Receipt of compensation from someone other than the client must not interfere with the lawyer’s independence,
professional judgment, or the lawyer- client relationship. Neither should information relating to representation of
a client be disclosed in violation of the rule on privileged communication.

The lawyer should only receive his compensation consisting of fees, rewards, costs, commission, interests,
rebates, or allowance for his client of record and other than that he may also receive compensation from other
sources in relation to his work only with the full consent of his client.

Canon III, Section 45. Prompt payment of legal fees.

A lawyer is entitled to prompt payment from the client of attorney’s fees.

Absent an express agreement as to professional fees, a lawyer is entitled to be paid reasonable attorney’s fees in
accordance with Canon III, Section 41.

· In the case of J.K. Mercado and Sons Agricultural Enterprises vs. De vera the court stated that the
practice of law is not a business venture, but the lawyer is entitled to be compensated for the professional
services he rendered, however a lawyer who does not render legal services is not entitled to attorney’s
fee.

The right of a lawyer to a reasonable compensation for his service is subject to 2 requisites:
1. The existence of an attorney-client relationship, and
2. The rendition by the lawyer of services to the client.

Section 46, Canon III. Controversy over legal fees.

A lawyer shall avoid any controversy with a client concerning fees for legal services and shall resort to judicial
action solely to prevent imposition, injustice or fraud.

The lawyer’s compensation for professional services rendered are subject to the supervision of the court, to
guarantee that the fees he charges and receives are reasonable and to maintain the dignity and integrity of the

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legal profession to which he belongs. A lawyer is entitled to judicial protection against injustice, imposition, or
fraud on the part of his client as the client against abuse on the part of his counsel.

Canon III, Section 47. Enforcement of attorney’s lien.

In case of non-payment of attorney’s fees, a lawyer may resort to the enforcement of the attorney’s lien under
Canon III, Section 54, by filing a Notice of Enforcement of Attorney’s Lien with the court, tribunal, or other
government agency of origin where the action or proceeding the lawyer rendered service for is pending, without
prejudice to other remedies under the law or the Rules of Court. The Notice shall be accompanied by proof of the
services rendered, and served on the client. The court, tribunal, or other government agency, after hearing, shall
determine the lawyer’s entitlement to the claimed fees.

The enforcement of an attorney’s lien shall be treated as an independent claim and shall in no instance delay the
resolution of the main case. The resolution of the lawyer’s claim may be included in the main judgment or in a
separate partial judgment. In the case of a partial judgment, the same shall be subject of appeal.

An appeal in the main case shall not stay the execution of the lawyer’s lien. In the execution of the judgment in the
main case, the court shall give due consideration to the pending claim of the lawyer.
If the claim for attorney’s lien arises after a decision has been rendered by the court, tribunal, or other
government agency of origin on the action or proceeding, the claim for the enforcement of the lien shall be by an
independent action.

Attorneys’ lien means the attorney shall have a lien upon the funds, documents, and papers of his client which
have lawfully come into his possession and may retain until his lawful fees and disbursement have been paid. The
right to retain documents of title in his possession until payment of lawful fees is incontestable, the attorney
cannot compel to surrender the document titles that had come into his possession without prior proof of fees
have been satisfied,

Canon III, Section 48. Compensation for counsel de oficio.

Subject to availability of funds as may be provided by law, the court may, in its discretion, order a lawyer engaged
as counsel de officio to be compensated in such sum as the court may fix following Canon III, Section 41, provided
that it is not covered by the provision on Limited Legal Services.

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