BASIC LEGAL ETHICS PRE FINALS

CANON 14 A lawyer shall not refuse his services to the needy.

Lawyer not bound to accept all cases if he already

loaded with cases, he should not accept any more
case, which he could no longer handle.
- The failure of a client to pay the balance
of the amount he promised is not
sufficient to justify the lawyers failure to
comply with his professional obligation.
Restrictions the lawyer cannot decline to represent
a person for the sole reason od the latters (1) race,
(2) sex, (3) creed, (4) status in life, or (5) because of
the lawyers opinion that said person is guilty of the
charge.
- A lawyer cannot refuse to undertake the
defense if an accused person simply
because he believes that said person is
guilty.
- The lawyer should defend the accused by
all fair and honorable means that the law
permits regardless of his personal opinion
as to the guilt of the said accused.
If the prosecution fails to prove the guilt of the
accused beyond reasonable doubt, it is not wrong
for the counsel to invoke acquittal of his client.
Appointment as counsel de oficio If the accused
desires and is unable to employ an attorney, the
court must assign an attorney de oficio to defend
him. And the lawyer cannot decline the appointment
except only for serious and sufficient cause.
- Counsel de oficio the lawyer is duty
bound to exert his best efforts and
professional ability in behalf of the person
assigned to his care.
- The presiding judge must give the
counsel de oficio ample opportunity to
examine not only the records of the case
but also to confer with the accused
lengthily so he can properly defend the
interest of the accused.
- The counsel de oficio should be given 1
hour to consult with accused as to his
plea
before
proceeding
with
the
arraignment.

Right to a counsel de oficio does not

cease upon the conviction of the accused
by the trial court. If he wants to appeal,
the court must still assign a counsel de
oficio for the purpose.
Amicus curiae friend of the court and is not a
party to the action; he may petition the court for
permission to file a brief, ostensibly on behalf of a
party but actually to suggest a rationale consistent
with his own views. (Briefs may be filed also if
accompanied by the written consent of all parties
or at the request of the court.)
- has no control over the suit and no righto
institute any proceedings
- cannot assume the functions any a party
in an action or proceedings pending
before the court; ordinarily, he can file a
pleading in a cause
The IBP may request members of the bar to render
free legal aid to poor deserving litigants.
- Legal Aid not a matter of charity. It
means for the correction of social
imbalance that may and often do lead to
injustice, for which reason it is a public
responsibility of the Bar.
A lawyer may not refuse to accept representation
of an indigent client unless:
1. He is not in a position to carry out the
work effectively or competently;
2. He labors under conflict of interest
between him and the prospective client or
between present client and prospective
client.
A lawyer who pretends to be disqualified under the
rule is committing grave misconduct.
The Code of Professional Responsibility is not a
request to lawyers but is an order from the highest
court to all concerned lawyers who are officers of
the court.
If a lawyer volunteers his services to a client, and
therefore not entitled to attorneys fees, he is
bound to attend to the clients case with all due
diligence and zeal.

CANON 15 A lawyer shall observe candor, fairness, and loyalty

in all his dealings

and transactions with his client.

Candor the lawyer must give a candid and honest

opinion on the merit or lack of merit of his clients
case.
- the counsel should advise his clients of
the futility of their cause to avoid
unnecessary expenses.
- And must neither overstate or understate
the prospects of the case.
Fairness/loyalty the lawyer must immediately
inform his prospective client of the involvement of
another client or his own interest in the case which
will result in representing conflict of interests.
Except: by written consent of all concerned after
full disclosure of the facts.
- the lawyer must keep the confidences
and secrets of his client even after the
termination
of
their
professional
relationship as lawyer and client.
- A prospective client is considered in
availing
this
right/privilege
of
communication.
- A lawyer must have undivided fidelity to
his client.
Exceptions to the preservation of the confidences
and secrets of clients:
1. When the revelation is authorized by the
client after
having been the revelation is required by
law;
2. When the revelation is required by law;
3. When necessary to collect the lawyers
fees or to
defend himself, his employees or
associates or by
judicial action.
Kinds of Conflict of Interests
1. Concurrent or multiple representation
2. Sequential or successive representation
Three
tests
in
determining
conflicting
Interests:
1. Whether a lawyer is duty-bound to fight for
an issue or claim in behalf of one client and
at the same time to oppose that claim for the
other client.

2. Whether the acceptance of a new relation

would prevent the full discharge of the
lawyers duty of undivided fidelity and loyalty
to the client or invite suspicion of
unfaithfulness or double-dealing in the
performance of that duty.
3. Whether the lawyer would be called upon
in the new relation to use against a former
client any confidential information acquired
through their connection.
(probability will suffice in determining the
conflict of interests not certainty of conflict)
Privilege Communication - the privilege applies
even to a mere prospective client, whose case has
not been accepted by the lawyer.
Essential Factors of Attorney-client privilege
communication:
1. where legal advice of any kind is
sought
2. from a professional legal adviser in
his
capacity
3. the communications relating to that
purpose
4. made in confidence
5. by the client
6. are at his instance permanently
protected
7. from disclosure by himself or by the
legal
advisor
8. except the protection be waived
Forms of the communication
1. Oral
2. Writing
3. Actions
4. Signs
(transmission may be direct or through
messenger, interpreter or through other
modes of transmission)
Requisites of the privilege communication:
1. there exists an attorney and client
relationship or a
kind of consultancy relationship with a
prospective
client; legal advice is what sought.

2. the communication was made by the

client to the
lawyer in the course of the lawyers
professional
employment;
3. the communication must be intended to
be
confidential
Confidential
Communication

refers
to
information transmitted by voluntary act or
disclosure between attorney and client in confidence
and by means which the client is aware and
discloses the information to no third person.
Privilege Communication ceases when:
- The contents of the pleadings of an
engaged attorney prepared on the basis
of the communications transmitted to
him by the client cease to become
privileged communications after the
pleadings have been filed.
- A communication intended by the client
to be sent to a third person through his
counsel loses its confidential character as
soon as it has reached the hands of the
third person.
Two-fold purposes of the rule
1. To encourage a client to make a full
disclosure of the
facts of the case to his counsel without
fear
2. To allow the lawyer freedom to obtain full
information from his client.
(The
party
who
avers
that
the
communication is privileged has the burden
of proof to establish the existence of the
privilege unless from the face of the
document itself clearly appears that it is
privileged.)
Instances when communication is NOT privileged:
1. When communication is made to a person
who is not
a lawyer even if such person committed
himself to
render legal services.
2. When communication is made to a lawyer
for some

other purpose (such as lease) other than

on account
of the lawyer-client relationship.
3. When the advice sought from the attorney
is not
legal.

Parties entitled to invoke the privilege:

1. Client/clients employee
2. lawyer himself
3. attorneys secretary, stenographer, or
clerk
If a lawyer is called as a witness to disclose any
privileged information, he may legally refuse to
testify in the absence of any waiver on the part of
the client.
He cannot legally refuse to testify and may be
compelled to disclose any information if it is
unprivileged communication.
Privileged communication does not extend to those
transmitted in contemplation of future crimes or
frauds. BUT, information on crimes or fraud already
committed falls within the privilege and the lawyer
cannot reveal or be compelled to reveal the
confidences of the client.
Rule on privileged communication is also applicable
to students under the Student Practice Law
Program.

Influence-peddling it is improper for a lawyer to

show in any way that he has connections and can
influence any tribunal or public officials, like justices,
judges, prosecutors, congressmen and others;
whether factual or imaginary.

When a lawyer is concurrently engaged in business,

he must clarify to client in what capacity he is
acting.

CANON 16 A lawyer shall hold in trust all moneys and properties

of his client that
may come into his possession.

The lawyer is under obligation to hold in trust all

moneys and properties of his client that may come

into his possession. Any disbursement will require a

consent from the client.
The lawyer should promptly account for all the funds
received or held by him for the clients benefits.
He should keep and maintain adequate records of
the clients moneys or properties in his custody.
The lawyer is under strict obligation to label and to
identify hid clients property and keep it separate
from his own.
If money delivered for specific purposes and was not
utilized by the counsel must immediately be
returned.
A lawyer cannot unilaterally appropriate for himself
the money of his client for payment of his attorneys
fees.
Charging liens to enforce this, it is necessary that
the lawyer shall have caused a statement of such
lien to be entered upon the records of the court
which rendered the favorable judgment with written
notice to the client and to the adverse party.
-An attorney shall have a lien upon funds,
documents and papers of his client.
-Attorneys retaining lien does not apply to
public documents and exhibits introduced in court.
-If the lawyer is dismissed without justifiable
cause, the client will pay in full attorneys fees
expressly agreed upon in their contract.
- lawyers charging lien may be assigned.
- a lawyer is not deprived of his attorneys
fees by the death of his client.
Probate court has no authority to enforce a lien.
Lawyer shall not borrow money from o lend money
to client.
Except: when provided the interests of the
client are fully protected by the nature of the
case.

CANON 18 A lawyer shall serve his client with competence and

diligence.

CANON 17 A lawyer owes fidelity to the cause of his client and

he shall be
mindful of the trust and confidence reposed in him.

Fidelity to the cause of the client is the essence

of the legal profession.
- the duty of fidelity requires the existence of
the attorney and client relationship.

Lawyer owes entire devotion to the interest of the

client, warm zeal in the maintenance and defense of
his rights and the exertion of his utmost learning
and ability.
Undivided fidelity to clients should not be at the
expense of truth and the fair dispensation of justice.

Diligence the attention and care required of a

person in a given situation and is the opposite of
negligence.
Presumption of Diligence in the absence of
any contrary evidence, a lawyer is presumed
to be prompt and diligent in performance of
his duties and to have employed hid best
efforts, learning and ability in the protection
of his clients interest.
- A lawyer should strive for proficiency in
his practice and should only accept
employment in matters in which he is or
can become competent after reasonable
preparation.
- When cases are lost due to lack of
diligence of the counsel, the clients
gravely suffer.
- The legal profession demands of a lawyer
to adopt the norm of practice expected
of men of good intentions.
- All that is required is ordinary diligence or
like a good father of the family or pater
familias.
A lawyer is directed not to undertake legal services
which he knows or should know he is not qualified or
competent to render. Except: if his client consents,
the lawyer can take as collaborating counsel
another lawyer who is competent on the matter.
Government lawyers cannot practice law. His
acceptance of attorneys fees from outside clients is
a violation.

Collaborating counsel is one who is

subsequently engaged to assist a lawyer already
handling a particular case for a client.
- the handling lawyer cannot just take
another counsel without the consent of
the client.
- The new lawyer cannot just enter his
appearance as collaborating counsel
without the conformity of the first
counsel.
A lawyer should be a proficient legal writer.
Should have adequate preparation; careless
preparation betrays the lawyers lack of devotion to
duty and lack of honesty and capacity.
Litigants should give the necessary assistance to
their counsel for what is at stake is their interest in
the case.
A lawyer for to be held liable, his failure to exercise
reasonable care, skill and diligence must be the
proximate cause of the loss.
A lawyer has no authority to waive clients right to
appeal.
A lawyer should inform always inform his client
regarding the status of the case.
-in case of adverse decision, the client must
be informed within the period of appeal to
enable him to decide whether or not he will
still seek an appellate review of the decision.

CANON 19 - A lawyer shall represent his client with zeal within

the
bounds of the law.

A lawyer shall not file or threaten to file any

unfounded or baseless cases against adversaries of
his client.
Blackmail the extortion of money from a person
by threats of accusation or exposure or opposition in
the public prints.
A lawyer shall not bribe or attempt to bribe a judge
to win his case.
A lawyer should do his best efforts to restraint and
to prevent his client from perpetrating with the
reference to their himself ought not to do.

if a client persists in such wrongdoings,

the lawyer should terminate their
relation.
A lawyer should not allow his client to dictate the
procedure in handling the case.
- he can choose the proceedings he will
institute in the pursuit of his clients case
- he will determine the witnesses to be
presented in court
- he can enter into stipulations of fact,
though of not law
- he can agree to advance the date of
hearing
- he can waive objections to evidence as
he may deem fit
- he can agree to postpone the trial of the
case despite the clients contrary wishes
Note: In matters of procedures, a lawyer is in control
but not as
to the subject matter of the case.
The client has no right to demand that his counsel
be illiberal, or that he does anything therein
repugnant to his own sense of honor and propriety.
- When clients request is lawful, the
lawyer
is
obliged
to
follow
the
instructions of the former.
- The client decides whether to appeal or
not to appeal an adverse decision. If he
decides not to appeal, the lawyer must
not insist otherwise.

CANON 20 A lawyer shall charge only fair and reasonable fees.

Two concepts of attorneys fees:

1.
Ordinary
concept

reasonable
compensation paid to
lawyer for the legal services he has
rendered to a
client.
2. Extraordinary concept an indemnity for
damages
ordered by the court to be paid by losing
party to the
prevailing party in a litigation.

writing

Employment of a lawyer constitutes the legal basis

of the lawyers right to demand payment for his
services.
- No formal contract is necessary to
effectuate employment.
Commencement of employment is when there is a
meeting of the minds between the lawyer and client
on the case or subject to be handled and the
consideration therefor, the lawyer is deemed
employed even if not acceptance fee is paid yet.
When a client employs the services of a law firm, he
does not employ the services of the lawyer he
employs the entire law firm.
Forms of formal employment:
1. Oral when the counsel is employed
without a written agreement but the
conditions and amount of attorneys fees are
agreed upon.
2. Express/written when the terms and
conditions including the amount of fees are
explicitly stipulated in a written document
which may be a private or public document.
If the lawyer is allowed by the client to represent the
latter in proceeding, even if there is no agreement
on payment of attorneys fees, the lawyer is entitled
to reasonable fee of his services.
The protection of attorneys lien by the court is
necessary
to
preserve
the
decorum
and
respectability of the profession.
The client cannot reduce and the lawyer cannot
increase the stipulated fees without judicial
approval.
Attorneys fees where client withdraws (Sec.
26, Rule 138):
- In case of unjustified dismissal of an
attorney, he shall
be entitled to recover from the client full
compensation stipulated in the contract if the
following conditions concur:
1.
Contract has been reduced to
2. Dismissal of attorney is without

justifiable

cause.

Attorneys fees where the counsel withdraws:

1. When cause is justified, hell be

compensated in quantum meruit.
2. When the cause is not justified, attorneys
fees may be reduced or may be forfeited.
Paupers are exempted from payment of legal fees
but not from payment of attorneys fee.
Ambiguities in contract of attorneys fees, the
interpretation must be favorable to the client.
Presumption as to entitlement of attorneys fees:
General rule: If a lawyer renders valuable
services to
one who receives the benefits
thereof, a
promise to pay a reasonable
value is
presumed.
Exception: such services are intended to be
gratuitous
Kinds of attorneys fees arrangements:
1. Fixed or absolute fee (acceptance fee)
2. Contingent fee (success fee)
3. Fixed fee payable per appearance ( court
appearance)
4. Fixed fee hourly rate/time billing
(preparation of
pleadings)
5. Fixed fee based on piece work ( by pages
of the
pleadings)
Examples of law limitations on attorneys fees:
1. R.A. No. 145 a lawyer is limited to
attorneys fees of not more than Php20.00
2. It shall be unlawful for any person to
demand or accept, in any judicial or
administrative proceedings for the recovery
of wages, attorneys fees which exceed ten
(10%) of the amount of wages recovered.
Retainer this is the act of the client by which he
employs a lawyer to manage for him a cause to
which he is a party, or otherwise to advise him as
counsel.
Kinds of retainer agreement on attorneys fees:
1. General retainer or retaining fee - is the
fee paid to a
lawyer to secure his future services as
general counsel for any ordinary legal

problem that may arise in the ordinary

business of the client and referred to him for
legal action.
2. A special retainer this is a fee for specific
case or service rendered by the lawyer for a
client. A client may have several cases. If for
every case there is a separate and
independent contract for attorneys fee, each
fee is considered a special retainer.
Retainer fee is a preliminary fee given to an
attorney or counsel to insure and secure his future
services and induce him to act for the client.
A lawyer cannot charge their clients fees based on
percentage basis in the absence of an agreement to
that effect.
Champertous Contract it is void being against
public policy. The lawyer agrees to spend for all the
litigation expenses in consideration for a bigger
percentage as fees on the property subject to
litigation.
Contingent Contract - is one which stipulates
that the lawyer will be paid for his legal services
only if the suit or litigation ends favorably to the
client.
- acceptance of initial fee before or during
the progress of the litigation does not
detract from the contingent nature of the
fees.

Champertous
Contract
A lawyer
undertakes to
bear all
expenses
incident to the
litigation

Contingent
Contract

Payable
in
cash or in
kind
Void; against
public policy
and ethics of
the profession

Payable in
cash or in kind

NA

Valid

Initial fees and subsequent fees paid

during the progress of the litigation are
independent of the contingent fees.

Quantum Meruit permitted where there is no

express agreement; determination of attorneys fees
which is as much as the lawyer deserves.
- is a legal mechanism in legal ethics which
prevents an unscrupulous client from
running away with the fruits of the legal
services of a counsel without paying
therefor.
- It is a device to prevent undue
enrichment based on the equitable
postulate that it is unjust for a person to
retain benefit without paying for it.
Basis of Quantum Meruit:
1. There is no express contract for payment
of attorneys fees agreed upon between the
client and the lawyer.
2. When although there is a formal contract
for attorneys fees, the fees stipulated are
found unconscionable or unreasonable by the
court.
3. When the contract for attorneys fees is
void due to purely formal matters or defects
of execution.
4. When the counsel, for justifiable cause,
was not able to finish the case to its
conclusion.
5. When the lawyer and client disregard the
contract for attorneys fee

Attorneys fees to be justified, its reason must be

mentioned in the text of the decision.
Assumpsit the action filed by a lawyer against his
client for collection of attorneys fees.
Factors in determining attorneys fees
1. the time spent and the extent of the
services rendered or required;
2. the novelty and difficulty of the questions
involved;
3. the importance of the subject matter;
4. the skill demanded;
5. the probability of losing other employment
as a result
of acceptance of the proffered case;
6. the customary charges for similar services
and the
schedule of fees of the IBP chapter to
which he
belongs;
7. the amount involved in the controversy
and the
benefits resulting to the client from the
services;
8.
the
contingency
or
certainty
of
compensation;
9. the character of the employment whether
occasional
or established;
10. the professional standing of the lawyer;
Attorneys fees are unconscionable if they affront
ones sense of justice, decency or reasonableness.
Examples:
- the fee being charged is 44% of the
just compensation in an expropriation case.
- 50% of the judgment award in a
labor case as attorneys fees.
In Labor laws, the attorneys fees which can be
charged by the lawyer is fixed to 10%.

Sharing or division of attorneys fees:

General
rule:
when
lawyers
jointly
represent common client for a given fee without any
express agreement on how much each will receive,
they will share equally as they are considered
special partners for a special purpose.

When two or more lawyers representing

common clients have a professional
breakup during the pendency of the case,
their attorneys fees shall be shared in
amounts to be determined by the court.
Sharing or dividing attorneys fees to
non-lawyers is prohibited.

Exception: if there are specific contracts

executed for the payment of the fees of each
lawyer, the contract will prevail. And when the
lawyer who bore the burden of the prosecution of
the case to its successful end is entitled to the full
amount of fees.
If in case there is a collaborating counsel, the client
should agree first to take him and when the first
lawyer withdraws, the substitute counsel, he will
receive attorneys fees in proportion to the work
performed and responsibility assumed.
Lawyer-referral system helps individuals in
location lawyers competent to handle their
particular problems. It enables a layman to have an
informed selection of competent lawyers who have
experience in the subject matter involved.
- An appropriate classification of practicing
lawyers according to their lines of
specialty may be introduced in the
country.
- The IBP is in the best position to initiate
the classification or listing of practicing
lawyers in each chapter.
General rule: A lawyer shall not accept, without full
knowledge and consent of his client, any fee,
reward, costs, commission, interest, rebate or
forwarding allowance or other compensation related
to his professional employment from anyone other
than his client.
Exception: The client should have full knowledge
and approval for a lawyer be allowed to accept any
compensation from any other person.
A lawyer should avoid filing any case against clients
for the enforcement of his attorneys fees except to
prevent: imposition, malpractice, or fraud.

Two options to recover attorneys fees:

1. In the same case. He may enforce his

attorneys fees by filing an appropriate
motion or petition as an incident in the main
action where he rendered legal services. (to
avoid multiplicity of suits)

- the petition must be filed before the

judgment or before the proceeds were
delivered to the client.
2. In a separate civil action. He can file an
independent
action
for
collection
of
attorneys fees.