Lawyer's Duties of Fair Dealings and Avoiding Conflict

LAWYER’S DUTIES OF FAIR
DEALINGS AND AVOIDING

CONFLICT OF INTERESTS
• A. FAIRNESS IN DEALINGS
WITH CLIENT
DUTY TO BE CANDID, FAIR AND LOYAL ALL
DEALINGS WITH CLIENT, GENERALLY
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.
A LAWYER SHALL ASCERTAIN POSSIBLE
CONFLICT OF INTEREST
• It is the duty of a lawyer to disclose and explain to a
prospective client all circumstances of his relations to
the parties and any interest in connection with the
controversy, which in his honest judgment might
influence the client in the selection of counsel.
• Possible effect of concealment: The new client may have

reason to suspect, in case of unfavorable judgment,
that circumstances prevented him from the full
discharge of his duty.
• Concealment of facts may cause his client to lose

confidence in him and may even affect his fee.
DUTY TO DECLINE EMPLOYMENT
• A lawyer shall decline professional employment even

though how attractive the fee offered may be IF its
acceptance will involve a violation of any of the rules of
the legal professionalism.
• A lawyer should not accept employment as an advocate

in any matter in which he had intervened while in the
government service.
• REASON: To maintain the necessary professional

integrity and public confidence
A LAWYER SHALL PRESERVE THE SECRETS
OF A PROSPECTIVE CLIENT
• The moment complainant approached the then

receptive respondent to seek legal advice, a veritable
lawyer-client relationship evolved between the two.
Such 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 to keep inviolate
confidential information acquired or revealed during
legal consultations. (HADJULA VS. MADIANDA, A.C. NO.
6711, JULY 03, 2007)
• REASON: To make the prospective client free to
discuss whatever he wishes with the lawyer without
fear that what he tells the lawyer will not be divulged
nor used against him, and for the lawyer to be equally
free to obtain information from the prospective client.
• Matters disclosed by a prospective client to a lawyer

are protected by the rule on privileged communication
even if the prospective client does not thereafter retain
the lawyer or the latter declines the employment. The
reason for this is to make the prospective client free to
discuss whatever he wishes with the lawyer without
fear that what he tells the lawyer will be divulged or
used against him, and for the lawyer to be equally free
to obtain information from the prospective client.
(CASTAÑEDA JIMENEZ vs. FRANCISCO, A.C. No. 10548,
December 10, 2014 )
A LAWYER MAY ACT AS MEDIATOR
• A lawyer, with the written consent of all concerned, to

“act as mediator, conciliator or arbitrator in settling
dispute.
• The lawyer shall not act as counsel for any of them,

otherwise the rule prohibiting representation for
conflict of interest will apply.
• His knowledge of the law and his reputation for fidelity

may make it easy for the disputant to settle their
differences amicably
• B. REPRESENTING
CONFLICTING INTERESTS
A LAWYER SHALL NOT REPRESENT
CONFLICTING INTEREST
• There is inconsistency of interest within the meaning of
the prohibition when, on behalf of one client, it is the
attorney's duty to contend for that which his duty to
another client requires him to oppose, or when the
possibility of such situation develops.
• The rule against representing conflicting interest

applies even if the conflict pertains to the lawyer’s
private activity or in the performance in a
nonprofessional capacity, and his presentation as a
lawyer regarding the same subject matter.
• What is conflict of interest?
There is conflict of interest when a lawyer represents inconsistent

interests of two or more opposing parties. The test is “whether or
not in behalf of one client, it is the lawyer's duty to fight for an
issue or claim, but it is his duty to oppose it for the other client. In
brief, if he argues for one client, this argument will be opposed by
him when he argues for the other client. Also, there is conflict of
interests if the acceptance of the new retainer will require the
attorney to perform an act which will injuriously affect his first client
in any matter in which he represents him and also whether he will
be called upon in his new relation to use against his first client any
knowledge acquired through their connection. Another test of the
inconsistency of interests is whether the acceptance of a new
relation will prevent an attorney from the full discharge of his duty
of undivided fidelity and loyalty to his client or invite suspicion of
unfaithfulness or double dealing in the performance thereof
(OROLA, ET. AL. VS. ATTY. RAMOS, A.C. No. 9860, September
11, 2013)
EFFECT OF TERMINATION OF RELATION
• The termination of the relation of attorney and client

provides no justification for a lawyer to represent an
interest adverse to or in conflict with that of the former
client.
• The client’s confidence once reposed cannot be

divested by the expiration of the professional
employment.
• A lawyer shall preserve the confidence and secrets of

his client even after the attorney-client relationship is
terminated.
MATERIALITY OF CONFIDENTIAL INFORMATION
• The bare attorney-client relationship with a client precludes
an attorney from accepting professional employment from
the client’s adversary either in the same case or in different
• but related action.
• The relationship between a lawyer and his/her client should

ideally be imbued with the highest level of trust and confidence.
This is the standard of confidentiality that must prevail to promote
a full disclosure of the client’s most confidential information to
his/her lawyer for an unhampered exchange of information
between them. Needless to state, a client can only entrust
confidential information to his/her lawyer based on an
expectation from the lawyer of utmost secrecy and discretion; the
lawyer, for his part, is duty-bound to observe candor, fairness and
loyalty in all dealings and transactions with the client. (ANIÑON
vs. SABITSANA, JR., A.C. No. 5098, April 11, 2012 )
OPPOSING CLIENTS IN SAME OR RELATED SUITS
The Supreme Court explains:

• It is improper or a lawyer to appear as counsel for one
party against the adverse party who is his client in a
related suit, as a lawyer is prohibited from representing
conflicting interest or discharging inconsistent duties.
He may not, without being guilty of professional
misconduct, act as counsel for a person whose interest
conflicts with that of his present or former client. That
the representation of conflicting interest in good faith
and with honest intention on the part of the lawyer does
not make the prohibition inoperative.
• The lawyer acting for a complainant and defendant in
the same or related suites is brazenly unethical
because the lawyer will discharge conflicting duties.
• An attorney who appears for opposing clients in the

same or related actions puts himself in that awkward
position where he will have to contend on behalf of one
client that which he will have to oppose on behalf of the
other client.
OPPOSING CLIENTS IN UNRELATED ACTIONS
• A lawyer owes loyalty to his client not only in the case

in which he has represented him but also after the
relation of attorney and client has terminated.
• It is improper for a lawyer to appear as counsel for one

party against the adverse party who is his client in
another totally unrelated action.
• The attorney may not be able to pursue with vigor and

zeal the client’s claim against the other and to properly
represent the latter in the unrelated action, otherwise,
he cannot avoid being suspected by the defeated client
of disloyalty or partiality in favor of the successful
client.
NEW CLIENT AGAINST FORMER CLIENT
• A lawyer is forbidden from representing a subsequent

client against a former client only when the subject
matter of the present controversy is related, directly or
indirectly, to the subject matter of the previous
litigation in which he appeared for the former client.

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LAWYER’S DUTIES OF FAIR

DEALINGS AND AVOIDING

• Rule 15.01. - A lawyer, in conferring with a prospective

• Possible effect of concealment: The new client may have

• Concealment of facts may cause his client to lose

• A lawyer shall decline professional employment even

• A lawyer should not accept employment as an advocate

• REASON: To maintain the necessary professional

• The moment complainant approached the then

• Matters disclosed by a prospective client to a lawyer

• A lawyer, with the written consent of all concerned, to

• The lawyer shall not act as counsel for any of them,

• His knowledge of the law and his reputation for fidelity

• The rule against representing conflicting interest

There is conflict of interest when a lawyer represents inconsistent

• The termination of the relation of attorney and client

• The client’s confidence once reposed cannot be

• A lawyer shall preserve the confidence and secrets of

• The relationship between a lawyer and his/her client should

The Supreme Court explains:

• An attorney who appears for opposing clients in the

• A lawyer owes loyalty to his client not only in the case

• It is improper for a lawyer to appear as counsel for one

• The attorney may not be able to pursue with vigor and

• A lawyer is forbidden from representing a subsequent

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