I.

LEGAL ETHICS
A. Practice of Law
1. Concept
Practice of law means any activity, in or out of court, which requires the application of law, legal procedure, knowledge,
training, and experience (Cayetano v. Monsod, G.R. No. 100113, September 3, 1991).
The following acts constitute practice of law:
a. Giving of advice or rendering any kind of service that involves legal knowledge;
b. Appearance in court and conduct of cases in court;
c. Preparation of pleadings and other papers incident to actions as well as drawing of deeds and instruments of conveyance;
and
d. Notarial acts.

NOTE: A lawyer who is a detention prisoner is not allowed to practice his profession as a necessary consequence of his status
as a detention prisoner.

Essential criteria in determining whether a person is engaged in the practice of law [CAHA]
1. Compensation – implies that one must have presented himself to be in active practice and that his professional services are
available to the public for compensation, as a source of livelihood or in consideration of his said services;

2. Application of law, legal principle, practice or procedure which calls for legal knowledge, training and experience;

3. Habituality – implies customary or habitually holding oneself out to the public as a lawyer. Practice of law is more than an
isolated appearance for it consists in frequent or customary action; and

4. Attorney-Client relationship - engaging in the practice of law presupposes the existence of a lawyer-client relationship. Ten
(10) years of practice of law includes work as a litigator, in-house counsel, giving of legal advice, teaching of law, and even
foreign assignment which requires the knowledge and application of the laws.

Persons excluded in the term “Practicing Lawyer”

1. Government employees and incumbent elective officials are not allowed to practice;
2. Lawyers who by law are not allowed to appear in court;
3. Supervising lawyers of students enrolled in law student practice in duly accredited legal clinics of law schools and lawyers
of Non-Government Organizations (NGOs) and People’s Organizations (POs) who by the nature of their work already render
free legal aid to indigent and pauper litigants; and
4. Lawyers not covered under subparagraphs (i) to (iii) (of Sec. 4, B.M. 2012) including those who are employees in the private
sector but do not appear for and in behalf of parties in courts of law and quasi-judicial agencies.

Nature of the practice of law

The practice of law is not a natural, property or constitutional right but a mere privilege. It is not a right granted to anyone
who demands it but a privilege to be extended or withheld in the exercise of sound judicial discretion. It is a privilege
accorded only to those who measure up to certain rigid standards of mental and moral fitness.
NOTE: It becomes a property right if there is a contract for Attorney’s Fees.

2. Qualifications for admission to the Bar (Bar Matter No. 1153)

SEC. 5.Additional Requirement for Other Applicants. — All applicants for admission other than those
referred to in the two preceding sections shall, before being admitted to the examination, satisfactorily
show that they have successfully completed all the prescribed courses for the degree of
Bachelor of Laws or its equivalent degree, in a law school or university officially
recognized by the Philippine Government or by the proper authority in the foreign jurisdiction
where the degree has been granted.
No applicant who obtained the Bachelor of Laws degree in this jurisdiction shall be admitted to the bar
examination unless he or she has satisfactorily completed the following course in a law
school or university duly recognized by the government: civil law, commercial law,
remedial law, criminal law, public and private international law, political law, labor and
social legislation, medical jurisprudence, taxation and legal ethics.
A Filipino citizen who graduated from a foreign law school shall be admitted to the bar examination
only upon submission to the Supreme Court of certifications showing: (a) completion of
all courses leading to the degree of Bachelor of Laws or its equivalent degree; (b)
recognition or accreditation of the law school by the proper authority; and (c)
completion of all the fourth year subjects in the Bachelor of Laws academic program in a
law school duly recognized by the Philippine Government.
SEC. 6.Pre-Law. — An applicant for admission to the bar examination shall present a certificate
issued by the proper government agency that, before commencing the study of law, he or she had
pursued and satisfactorily completed in an authorized and recognized university or college, requiring
for admission thereto the completion of a four-year high school course, the course of study prescribed
therein for a bachelor's degree in arts or sciences.
A Filipino citizen who completed and obtained his or her Bachelor of Laws degree or its equivalent in
a foreign law school must present proof of having completed a separate bachelor's degree course.
3. Continuing requirements for membership in the bar

4. Appearance of Non-Lawyers
GR: Only those who are licensed to practice law can appear and handle cases in court.
XPNs:
1. Law student practice;
2. Non-lawyers in court can appear for a party in MTC; and

NOTE: Section 34, Rule 138 of the Revised Rules of Court expressly allows pro se practice or the right of a non-member of the
bar to engage in limited practice of law (Antiquiera, 1992).
3. Non-lawyers can represent parties in administrative tribunals such as NLRC, DARAB, and Cadastral Courts.

a. Law student practice rule (Rule 138-A)

Section 1. Conditions for student practice. — A law student who has successfully completed his 3rd year of the
regular four-year prescribed law curriculum and is enrolled in a recognized law school's clinical legal
education program approved by the Supreme Court, may appear without compensation in any civil, criminal or
administrative case before any trial court, tribunal, board or officer, to represent indigent clients accepted by the
legal clinic of the law school.

Section 2. Appearance. — The appearance of the law student authorized by this rule, shall be under the direct
supervision and control of a member of the Integrated Bar of the Philippines duly accredited by the law
school. Any and all pleadings, motions, briefs, memoranda or other papers to be filed, must be signed by the
supervising attorney for and in behalf of the legal clinic.

Section 3. Privileged communications. — The Rules safeguarding privileged communications between attorney and
client shall apply to similar communications made to or received by the law student, acting for the legal clinic.

Section 4. Standards of conduct and supervision. — The law student shall comply with the standards of professional
conduct governing members of the Bar. Failure of an attorney to provide adequate supervision of student practice
may be a ground for disciplinary action. (Circular No. 19, dated December 19, 1986).

b. Non-lawyers in courts and/or administrative tribunals

The following are the instances whereby non-lawyers may appear in court:
1. Cases before the MTC: A party to the litigation, may conduct his own case or litigation in person, with the aid of an agent
or friend appointed by him for that purpose (Sec. 34, Rule 138, RRC);

2. Before any other court, a party may conduct his litigation personally but if he gets someone to aid him, that someone
must be authorized member of the Bar (Sec. 34, Rule 138, RRC);
NOTE: A non-lawyer conducting his own litigation is bound by the same rules in conducting the trial case. He cannot after
judgment, claim that he was not properly represented.
3. Criminal case before the MTC in a locality where a duly licensed member of the Bar is not available, the judge may
appoint a non- lawyer who is a:

a. Resident of the province; and

b. Of good repute for probity and ability to aid the accused in his defense (Sec. 7, Rule 116, RRC); and

4. Any official or other person appointed or designated to appear for the Government of the Philippines in accordance
with law (Sec. 33, Rule 138, RRC).
NOTE: Such person shall have all the rights of a duly authorized member of the Bar to appear in any case in which said
government has a direct or indirect interest (Sec. 33, Rule 138, RRC).

Limits on the appearance of non-lawyers

1. He should confine his work to non-adversary contentions;
2. He should not undertake purely legal work, such as the examination or cross- examination of witnesses, or the presentation
of evidence; and
3. His services should not be habitually rendered. He should not charge or collect attorney’s fees (PAFLU v. Binalbagan Isabela
Sugar Co., G.R. No. L-23959, November 29, 1971).

NON-LAWYERS IN ADMINISTRATIVE TRIBUNAL

1. Under the Labor Code, non-lawyers may appear before the NLRC or any Labor Arbiter, if:

a. They represent themselves; or

b. They represent their organization or members thereof (Art. 222, PD 442, as amended) (2002 Bar); or
c. If they are duly accredited members of any legal aid office duly recognized by the Department of Justice, or the Integrated
Bar of the Philippines in cases referred to by the latter.

NOTE: He is not, however, entitled to attorney’s fees under Article 222 of the Labor Code for not being a lawyer (Five J. Taxi v.
NLRC, G.R. No. 111474, August 22, 1994).
2. Under the Cadastral Act, a non-lawyer can represent a claimant before the Cadastral Court (Sec. 9, Act No. 2259).

c. Proceedings where lawyers are prohibited from appearing as counsels

1. Proceedings before the Small Claims Court - No attorney shall appear in behalf of or represent a party at the hearing,
unless the attorney is the plaintiff or defendant (Sec. 17, Rule of Procedure for Small Claims Cases).
NOTE: If the court determines that a party cannot properly present his/her claim or defense and needs assistance, the court may, in
its discretion, allow another individual who is not an attorney to assist that party upon the latter’s consent. (Sec. 17, Rule of
Procedure for Small Claims Cases)
2. Proceedings before the Katarungang Pambarangay - During the pre-trial conference under the Rules of Court, lawyers
are prohibited from appearing for the parties. Parties must appear in person only except minors or incompetents who may be
assisted by their next of kin who are not lawyers (P.D. No. 1508, Formerly Sec. 9; Local Government Code of 1991, R.A. 7160, Sec.
415).

5. Prohibited practice of non-lawyers and appearance without authority

Remedies against practice of law without authority [ICE-DA]
1. Petition for Injunction;
2. Contempt of court;
3. Criminal complaint for Estafa against a person who falsely represented himself to be an attorney to the damage of a party;
4. Disqualification and complaints for disbarment; or
5. Administrative complaint against the erring lawyer or government official.

6. Public officials and the practice of law; prohibitions and disqualifications

Public Officials
Includes elective or appointive officials and employees, permanent or temporary, whether in the career or non-career service,
including military and police personnel, whether or not they receive compensation, regardless of amount (Sec. 3 (b), R.A. No.
6713, Code of Conduct and Ethical Standards for Public Officials and Employees).
Prohibited acts or omissions of public officers
1. Accepting or having any member of his family accept employment in a private enterprise which has pending official
business with him during the pendency thereof or within one year after termination. (Sec. 3[d], RA 3019);
2. Own, control, manage or accept employment as officer, employee, consultant, counsel, broker, agent, trustee or nominee in
any private enterprise regulated, supervised or licensed by their office unless expressly allowed by law (Sec. 7[b], RA 6713
3. A lawyer shall not, after leaving a government service, accept engagement or employment in connection with any matter in
which he had intervened. while in said service (Rule 6.03, CPR); and
4. A lawyer should not accept employment as an advocate in any matter upon the merits which he has previously acted in a
judicial capacity (Canon 36, CPE).

NOTE: These prohibitions shall continue to apply for a period of 1 year after resignation, or separation from public office.
The 1-year prohibition shall also apply in connection with any matter before the office he used to be with.

Prohibition or disqualification of former government attorneys

A lawyer shall not, after leaving government service, accept engagement or employment in connection with any matter in
which he had intervened while in said service (Canon 6, Rule 6.03, CPR).
The evil sought to be avoided by this provision is the possibility of a lawyer who just retired, resigned or separated from the
government of using his influence for his own private benefit (Antiquiera, 1992).

PUBLIC OFFICIALS WHO CANNOT PRACTICE LAW OR WITH RESTRICTIONS

GR: The appointment or election of an attorney to a government office disqualifies him from engaging in the private practice
of law.
Reason: A public office is a public trust, and a public officer or employee is obliged not only to perform his duties with the
highest degree of responsibility, integrity, loyalty and efficiency but also with exclusive fidelity.
This disqualification is intended to:
a. Preserve public trust in a public office;
b. Avoid conflict of interests or a possibility thereof; and
c. Assure the people of impartiality in the performance of public functions and thereby promote the public welfare.

Public officials not allowed to engage in law practice (Absolute Prohibition) [JOPPC2OMS]:
1. Judges and other officials and employees of the Supreme Court (Sec. 35, Rule 148, RRC);
2. Officials and employees of the OSG (Ibid.);
3. Government Prosecutors (People v. Villanueva, G.R. No. L-19450, May 27, 1965);
4. President, Vice-President, Members of the Cabinet, their deputies and assistants (Sec. 13, Art VII, 1987 Constitution);
5. Members of the Constitutional Commission (Sec. 2, Art IX-A, 1987 Constitution);
6. Civil Service Officers or employees whose duties and responsibilities require that their entire time be at the disposal of the
government (Ramos v. Rada, A.M. No. 202, July 22, 1975);
7. Ombudsman and his deputies (Sec. 8 [second par.], Art. IX, 1987 Constitution);
8. All governors, city and municipal Mayors (Sec. 90, R.A. No. 7160); and
9. Those prohibited by Special laws.

Restrictions on the Practice of Law on Certain individuals (Relative Prohibition)

1. No Senator or member of the House of Representatives may personally “appear” as counsel before any court of justice or
before the Electoral Tribunals, or quasi-judicial and other administration bodies (Sec. 14, Art. VI, 1987 Constitution).

NOTE: What is prohibited is to “personally appear” in court and other bodies. The word “appearance” includes not only
arguing a case before any such body but also filing a pleading on behalf of a client as “by simply filing a formal motion, plea, or
answer.”
2. Under the Local Government Code (Sec. 91, RA 7160), Sanggunian members may practice their professions provided that if
they are members of the Bar, they shall NOT:

a. Appear as counsel before any court in any civil case wherein a local government unit or any office, agency, or
instrumentality of the government is the adverse party;
b. Appear as counsel in any criminal case wherein an officer or employee of the national or local government is accused of an
offense committed in relation to his office;
c. Collect any fee for their appearance in administrative proceedings involving the local government unit of which he is an
official; or
d. Use property and personnel of the government except when the Sanggunian member concerned is defending the interest of
the government.

3. Under Sec. 1, R.A. 910, as amended, a retired justice or judge receiving pension from the government, cannot act as counsel:

a. In any civil case in which the Government, or any of its subdivision or agencies is the adverse party; or
b. In a criminal case wherein an officer or employee of the Government is accused of an offense in relation to his office; nor
c. Collect any fees for his appearance in any administrative proceedings to maintain an interest adverse to the government,
provincial or municipal, or to any of its legally constituted officers (Sec. 1, R.A. 910).

4. Civil service officers and employees without permit from their respective department heads (Noriega v. Sison, A.M. No. 2266,
October 27, 1983).

5. A former government attorney cannot, after leaving government service, accept engagement or employment in connection
with any matter in which he had intervened while in the said service (Rule 6.03, CPR).

7. The Lawyer’s Oath

I, _____(name)______________, of ____(permanent address)_____________, do solemnly swear that I will maintain allegiance to
the Republic of the Philippines, I will support and defend its Constitution and obey the laws as well as the legal orders of the duly
constituted authorities therein; I will do no falsehood nor consent to its commission; I will not wittingly or willingly promote or sue
any groundless, false or unlawful suit nor give aid nor consent to the same; I will not delay any man’s cause for money or malice and
will conduct myself as a lawyer according to the best of my knowledge and discretion with all good fidelity as well to the courts as to
my clients and I impose upon myself this obligation voluntarily, without any mental reservation or purpose of evasion. So help me
God.

Importance of the lawyer’s oath

By taking the lawyer’s oath, a lawyer becomes the guardian of truth and the rule of law and an indispensable instrument in
the fair and impartial administration of justice.

B. Duties and responsibilities of a lawyer under the Code of Professional Responsibility

1. To society (Canons 1 to 6)

1. Uphold the Constitution and obey the laws of the land and legal processes
2. Make legal services available in an efficient and convenient manner
3. Use of true, honest, fair, dignified and objective information in making known legal services
4. Participate in the improvement of the legal system
5. Keep abreast of legal development and participate in continuing legal education program and assist in disseminating
information regarding the law and jurisprudence
6. Applicability of the CPR to lawyers in the government service

2. To the legal profession

a. Canons 7 to 9
CHAPTER 2
THE LAWYER AND THE LEGAL PROFESSION
(Canons 7-9)
7. At all times uphold integrity and dignity of the profession and support the activities of the IBP
8. Conduct himself with courtesy, fairness and candor toward his colleagues and avoid harassing tactics against opposing
counsel
9. Not to directly or indirectly assist in the unauthorized practice of law

b. Integrated Bar of the Philippines (Rule 139-A)

i. Membership and dues
Section 9. Membership dues. — Every member of the Integrated Bar shall pay such annual dues as the
Board of Governors shall determine with the approval of the Supreme Court. A fixed sum equivalent to ten
percent (10%) of the collection from each Chapter shall be set aside as a Welfare Fund for disabled members
of the Chapter and the compulsory heirs of deceased members thereof.

Section 10. Effect of non-payment of dues. — Subject to the provisions of Section 12 of this Rule, default in
the payment of annual dues for six months shall warrant suspension of membership in the Integrated Bar,
and default in such payment for one year shall be a ground for the removal of the name of the delinquent
member from the Roll of Attorneys.

Section 11. Voluntary termination of membership; re-instatement. — A member may terminate his
membership by filing a written notice to that effect with the Secretary of the Integrated Bar, who shall
immediately bring the matter to the attention of the Supreme Court. Forthwith he shall cease to be a member
and his name shall be stricken by the Court from the Roll of Attorneys. Reinstatement may be made by the
Court in accordance with rules and regulations prescribed by the Board of Governors and approved by the
Court.

NOTE: Membership dues are not prohibited by the Constitution. The fee is imposed as a regulatory measure, designed to raise funds
for carrying out the purposes and objectives of the integration (In the Matter of IBP Membership dues delinquency of Atty. Marcial
Edillon, A.M. No. 1928, August 3, 1978).
3. To the courts (Canons 10 to 13)
CHAPTER 3
THE LAWYER AND THE COURTS
(Canons 10-13)
10. Owes candor, fairness and good faith to the court
11. Observe and maintain the respect due to the courts and judicial officers and should insist on similar conduct by others
12. Duty to assist in the speedy and efficient administration of justice
13. Rely upon the merits of his cause, refrain from any impropriety which tends to influence courts, or give the appearance of
influencing the courts

4. To the clients
a. Canons 14 to 22
CHAPTER 4
THE LAWYER AND THE CLIENT
(Canons 14-22)
14. Not to refuse his services to the needy
15. Observe candor, fairness and loyalty in all his dealings and transactions with clients
16. Hold in trust all the moneys and property of his client that may come to his possession
17. Owes fidelity to client’s cause and be mindful of the trust and confidence reposed in him
18. Serve client with competence and diligence
19. Represent client with zeal within the bounds of law
20. Charge only fair and reasonable fees
21. Preserve the confidence and secrets of client even after the attorney-client relation is terminated
22. Withdraw services only for good cause and upon notice

b. Attorney’s fees
CANON 20 A lawyer shall charge only fair and reasonable fees
GR: Only lawyers are entitled to attorney’s fees. The same cannot be shared with a non-lawyer. It is unethical.
XPNs: A lawyer may divide a fee for legal services with persons not licensed to practice law:

1. A lawyer undertakes to Complete the unfinished legal business of a deceased lawyer;

2. There is a Pre-existing agreement with a partner or associate that, upon the latter’s death, money shall be paid over a
reasonable period of time to his estate or to persons specified in the agreement;
3. A lawyer or law firm includes non-lawyer employees in Retirement plan, even if the plan is based, in whole or in part, on a
profit-sharing agreement. (Rule 9.02, CPR)

1. A lawyer undertakes to Complete the unfinished legal business of a deceased lawyer;

2. There is a Pre-existing agreement with a partner or associate that, upon the latter’s death, money shall be paid over a
reasonable period of time to his estate or to persons specified in the agreement;
3. A lawyer or law firm includes non-lawyer employees in Retirement plan, even if the plan is based, in whole or in part, on a
profit-sharing agreement. (Rule 9.02, CPR)

Factors in determining the attorney’s fees (1994 Bar)

In determining what is fair and reasonable, a lawyer shall be guided by the following factors: [STIP-SNACCC]
1. Skill demanded;
2. Time spent and the extent of the services rendered or required;
3. Importance of the subject matter;
4. Probability of losing other employment as a result of acceptance of the proffered case;
5. Professional Standing of the lawyer;
6. Novelty and difficulty of the questions involved;
7. Amount involved in the controversy and the benefits resulting to the client from the services;
8. Customary Charges for similar services and the schedule of fees of the IBP chapter to which he belongs;
9. Contingency or certainty of compensation; and
10. Character of the employment, whether occasional or established. (Rule 20.01)

i. Acceptance fees
An acceptance fee is not a contingent fee, but is an absolute fee arrangement which entitles a lawyer to get paid for his efforts
regardless of the outcome of the litigation. Dissatisfaction from the outcome of the cases would not render void the retainer
agreement for Atty. Jack appears to have represented the interest of Rose. (Yu v. Bondal, A.C. No. 5534, January 17, 2005)
ii. Contingency fee arrangements

Contingent fee where the lawyer is paid for his services depending on the success of the case. This applies usually in civil suits
for money or property where the lawyer’s fee is taken from the award granted by the court.

CONTINGENCY FEE ARRANGEMENTS

Contingency fee contract
One which stipulates that the lawyer will be paid for his legal services only if the suit or litigation ends favorably to the client.
(Taganas v. NLRC, G.R. No. 118746, September 7, 1995)
It is like a contract subject to a suspensive condition wherein the obligation to pay the counsel is based upon the outcome of
the case.
Contingent fees are sanctioned by the CPE and by the CPR subject to certain limitations. (Licudan v. CA, G.R. No. 91958, January
24, 1991)
NOTE: If a lawyer employed on contingent basis dies or becomes disabled before the final adjudication or settlement of the
case has been obtained, he or his estate will be allowed to recover the reasonable value of the services rendered. The
recovery will be allowed only after the successful termination of the litigation in the client’s favor. (Morton v. Forsee, Ann. Cas.
1914 D. 197; Lapena, 2009, Pineda, 2009)

Rationale for contingent fee contracts

Contracts of this nature (contingent fee contract) are permitted because they redound to the benefit of the poor client and the
lawyer especially in cases where the client has meritorious cause of action, but no means with which to pay for the legal
services unless he can, with the sanction of law, make a contract for a contingent fee to be paid out of the proceeds of the
litigation. (Francisco, 1949)

Acceptance of an initial fee before or during the progress of the litigation detract from the contingent nature of the
fees
The acceptance of an initial fee before or during the progress of the litigation does not detract from the contingent nature of
the fees, as long as the bulk thereof is made dependent upon the successful outcome of the action. (Francisco v. Matias, G.R.
No. L-16349, January 31, 1964)

iii. Attorney’s liens

A retaining lien is the right of an attorney to retain the funds, documents and papers of his client who have lawfully come into
his possession and may retain the same until his lawful fees and disbursements have been paid, and may apply such funds to
the satisfaction thereof.
NOTE: A lawyer is not entitled to unilaterally appropriate his client’s money for himself by the mere fact alone that the client
owes him attorney’s fees. (Rayos v. Hernandez, G.R. No. 169079, February 12, 2007)

Requisites in order for an attorney to be able to exercise his retaining lien [ALU]
1. Attorney-client relationship;
2. Lawful possession by the lawyer of the client’s funds, documents and papers in his professional capacity; and
3. Unsatisfied claim for attorney’s fees or disbursements.
Attorney’s charging lien
A charging lien is the right of a lawyer to the same extent upon all judgments for the payment of money, and executions
issued in pursuance of such judgments which he has secured in a litigation of his client, from and after the time when he shall
have caused a statement of his claim of such lien to be entered upon the records of the court rendering such judgment, or
issuing such execution, and 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 enforce his lien and
secure the payment of his fees and disbursements. (Sec. 37, Rule 138, RRC)
Requisites in order for an attorney to be able to exercise his charging lien
1. Existence of attorney-client relationship;
2. The attorney has rendered services;
3. Favorable money judgment secured by the counsel for his client;
4. The attorney has a claim for attorney’s fees or advances; and
5. A statement of the claim has been duly recorded in the case with notice thereof served upon the client and the adverse
party.

NOTE: A charging lien, to be enforceable as a security for the payment of attorney’s fees, requires as a condition sine qua non
a judgment for money and execution in pursuance of such judgment secured in the main action by the attorney in favor of his
client.
RETAINING Lien vs. CHARGING Lien
1. Retaining Lien - right of the attorney to retain the funds, documents, and papers of his client which have lawfully come
into his possession until his lawful fees and disbursements have been paid and to apply such funds to the satisfaction thereof.
2. Charging Lien - right which the attorney has upon all judgments for the payment of money, and executions issued in
pursuance of said judgments, which he has secured in litigation of his client.

Under this rule, this lien, whether retaining or charging, takes legal effect only from and after, but not before, notice of said
lien has been entered in the record and served on the adverse party (Elena De Caiña, et al. v. Hon. Victoriano, et al., G.R. No. L-
12905, February 26, 1959).

iv. Fees and controversies with clients

Rule 20.02, Canon 20

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.

Lawyer-referral system
Under this system, if another counsel is referred to the client, and the latter agrees to take him as collaborating counsel, and
there is no express agreement on the payment of attorney’s fees, the said counsel will receive attorney’s fees in proportion to
the work performed and responsibility assumed. The lawyers and the client may agree upon the proportion but in case of
disagreement, the court may fix the proportional division of fees. (Lapena, 2009)
Rule 20.03, Canon 20
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. (1997, 2003 Bar)
It is intended to secure the fidelity of the lawyer to his client’s cause and to prevent a situation in which the receipt by him of
a rebate or commission from another with the client’s business may interfere with the full discharge of his duty to his client
(Report of the IBP Committee).
GR: Fees shall be received from the client only.

Rule 20.04, Canon 20

A lawyer shall avoid controversies with clients concerning his compensation and shall resort to judicial action only to
prevent imposition, injustice or fraud. (1998 Bar)
GR: A lawyer should avoid the filing of any case against a client for the enforcement of attorney’s fees.
NOTE: The legal profession is not a money-making trade but a form of public service. Lawyers should avoid giving the
impression that they are mercenary (Perez v. Scottish Union and National Insurance Co., C.A. No. 8977, March 22, 1946). It
might even turn out to be unproductive for him for potential clients are likely to avoid a lawyer with a reputation of suing his
clients.
XPNs:
1. To prevent imposition
2. To prevent injustice
3. To prevent fraud (Rule 20.04, CPR)
Instances when an independent civil action to recover attorney’s fees is necessary
1. Main action is dismissed or nothing is awarded;
2. Court has decided that it has no jurisdiction over the action or has already lost it;
3. Person liable for attorney’s fees is not a party to the main action;
4. Court reserved to the lawyer the right to file a separate civil suit for recovery of attorney’s fees;
5. Services for which the lawyer seeks payment are not connected with the subject litigation;
6. Judgment debtor has fully paid all of the judgment proceeds to the judgment creditor and the lawyer has not taken any
legal step to have his fees paid directly to him from the judgment proceeds; and
7. Failure to exercise charging Lien.

v. Quantum meruit
Instances when the measure of quantum meruit may be resorted to (2007 Bar)
1. There is no express contract for payment of attorney’s fees agreed upon between the lawyer and the client;
2. Although there is a formal contract for attorney’s fees, the stipulated fees are found unconscionable or unreasonable by the
court;
3. The contract for attorney’s fees is void due to purely formal matters or defects of execution;
4. The counsel, for justifiable cause, was not able to finish the case to its conclusion;
5. Lawyer and client disregard the contract for attorney’s fees; and
6. The client dismissed his counsel before the termination of the case.

Champertous contract
Is one where the lawyer stipulates with his client in the prosecution of the case that he will bear all the expenses for the
recovery of things or property being claimed by the client, and the latter agrees to pay the former a portion of the thing or
property recovered as compensation. It is void for being against public policy (like gambling).

C. Suspension, disbarment and discipline of lawyers

1. Nature and characteristics of disciplinary actions against lawyers
NATURE AND CHARACTERISTICS OF DISCIPLINARY ACTION AGAINST LAWYERS
Rationale of disciplining errant lawyers
Practice of law is in the nature of a privilege. Hence, the same may be suspended or removed from the lawyer
for reasons provided in the rules, law and jurisprudence.
NOTE: A lawyer may be disciplined or suspended for any misconduct professionally or privately (Cruz v. Atty.
Jacinto, Adm. Case No. 5235, March 22, 2000).
Nature of the power to discipline
The power to discipline a lawyer is JUDICIAL in nature and can be exercised only by the courts. It cannot be
defeated by the legislative or executive departments.
NOTE: The power to disbar and to reinstate is an inherently judicial function (Andres v. Cabrera, SBC- 585,
February 29, 1984).
Disbarment and suspension of a lawyer, being the most severe forms of disciplinary sanction, should be
imposed with great caution and only in those cases where the misconduct of the lawyer as an officer of the
court and a member of the bar is established by clear, convincing and satisfactory
proof (Vitug v. Rongcal, A.C. No. 6313, September 7, 2006).
Powers of the Supreme Court in disciplining lawyers [WARD-SIP]
1. Warn;
2. Admonish;
3. Reprimand;
4. Disbar;
5. Suspend a lawyer (Sec. 27, Rule 138, RRC);
6. Interim suspension; and
7. Probation (IBP Guidelines)

Powers of the Court of Appeals and the Regional Trial Courts [SWARP]
They are also empowered to:
1. Suspend an attorney from practice for any of the causes named in Sec 27, Rule 138 until further action of
the Supreme Court in the case (Sec. 16, Rule 139-B);
2. Warn;
3. Admonish;
4. Reprimand; and
5. Probation (IBP Guidelines)

NOTE: The CA and RTC cannot disbar a lawyer.

2. Grounds
Specific grounds for suspension or disbarment of a lawyer
1. Deceit;
2. Malpractice;
3. Grossly immoral conduct;
4. Conviction of a crime involving moral turpitude;
5. Violation of oath of office;
6. Willful disobedience of any lawful order of a superior court;
7. Corrupt or willful appearance as an attorney for a party to a case without authority to do so (Sec. 27, Rule
138, RRC);
8. Non-payment of IBP membership dues (Santos, Jr. v. Atty. Llamas, Adm. Case No. 4749, January 20, 2000).

Other statutory grounds for suspension and disbarment of members of the bar
1. Acquisition of interest in the subject matter of the litigation, either through purchase or assignment (Art.
1491, NCC);
2. Breach of professional duty, inexcusable negligence, or ignorance, or for the revelation of the client’s
secrets (Art. 208, RPC);
3. Representing conflicting interests (Art. 209, RPC).
Other grounds for discipline
1. Non-professional misconduct

GR: A lawyer may not be suspended or disbarred for misconduct in his non-professional or private capacity.
XPN: Where such is so gross as to show him to be morally unfit for office or unworthy of privilege, the court
may be justified in suspending or removing him from the Roll of Attorneys. (2005 Bar Question)
2. Gross immorality – An act of personal immorality on the part of a lawyer in his private relation with
opposite sex may put his character in doubt. But to justify suspension or disbarment, the act must not only be
immoral, it must be grossly immoral (Abaigar v. Paz, A.M. No. 997, September 10, 1979).

NOTE: Cohabitation per se is not grossly immoral. It depends on circumstances and isnot necessary that there
be prior conviction for an offense before lawyer may be disciplined for gross immorality. If the evidence is not
sufficient to hold a lawyer liable for gross immorality, he may still be reprimanded where evidence shows
failure on his part to comply with rigorous standards of conduct required from lawyers.
3. Conviction of a crime involving moral turpitude – All crimes of which fraud or deceit is an element or those
inherently contrary to rules of right conduct, honesty or morality in civilized community.
4. Promoting to violate or violating penal laws
5. Misconduct in discharge of official duties – A lawyer who holds a government office may not be disciplined
as a member of the bar for misconduct in the discharge of his duties as government official.

6. Commission of fraud or falsehood; and

7. Misconduct as notary public

3. Proceedings (Rule 139-B, Rules of Court, as amended)

Initiation of disbarment
Any interested person or the court motu proprio may initiate disciplinary proceedings. There can be no doubt
as to the right of a citizen to bring to the attention of the proper authority acts and doings of public officers
which citizens feel are incompatible with the duties of the office and from which conduct the citizen or the
public might or does suffer undesirable consequences. (2000 Bar Question)
NOTE: A disbarment proceeding may proceed regardless of interest or lack of interest of the complainant
(Rayos-Ombac v. Rayos, A.C. No. 2884, January 28, 1998). However, if the complainant refuses to testify and the
charges cannot then be substantiated, the court will have no alternative but to dismiss the case.

Characteristics of disbarment proceedings

1. Sui Generis
2. The defense of “double jeopardy” cannot be availed of in a disbarment proceeding;
3. It can be initiated motu proprio by the SC or IBP. It can be initiated without a complaint;
4. It is imprescriptible;
5. Conducted confidentially;
6. It can proceed regardless of the interest or the lack thereof on the part of the complainant; and
7. It in itself constitutes due process of law.
8. Whatever has been decided in a disbarment case cannot be a source of right that may be enforced in
another action;
9. In pari delicto rule not applicable;
10. No prejudicial question in disbarment proceedings;
11. Penalty in a disbarment case cannot be in the alternative; and
12. Monetary claims cannot be granted except restitution and return of monies and properties of the client
given in the course of the lawyer-client relationship.

4. Recoverable amounts; intrinsically linked to professional engagement

D. Readmission to the Bar

Reinstatement and its requirements
Reinstatement is the restoration of the privilege to practice law after a lawyer has been disbarred. The
applicant must satisfy the Court that he is a person of good moral character – a fit and proper person to
practice law.
NOTE: The power of the Supreme Court to reinstate is based on its constitutional prerogative to promulgate
rules on the admission of applicants to the practice of law (Sec. 5[5], Art. VIII, 1987 Constitution).
1. Lawyers who have been suspended
Lifting of suspension is not automatic upon the end of the period stated in the Court’s decision
The lifting of a lawyer’s suspension is not automatic upon the end of the period stated in the Court’s decision,
and an order from the Court lifting the suspension at the end of the period is necessary in order to enable
[him] to resume the practice of his profession

Thus, according to the OBC, a suspended lawyer must first present proof(s) of his compliance by submitting
certifications from the Integrated Bar of the Philippines and from the Executive Judge that he has indeed
desisted from the practice of law during the period of suspension. Thereafter, the Court, after evaluation, and
upon a favorable recommendation from the OBC, will issue a resolution lifting the order of suspension and thus
allow him to resume the practice of law (Maniago v. Atty. De Dios, A.C. No. 7472, March 30, 2010).

Guidelines to be observed in lifting an order of suspension of a lawyer

The following guidelines were issued by the Supreme Court, the same to be observed in the matter of the lifting
of an order suspending a lawyer from the practice of law:
1. After a finding that respondent lawyer must be suspended from the practice of law, the Court shall render a
decision imposing the penalty;
2. Unless the Court explicitly states that the decision is immediately executory upon receipt thereof, respondent
has 15 days within which to file a motion for reconsideration thereof. The denial of said motion shall render
the decision final and executory;
3. Upon the expiration of the period of suspension, respondent shall file a Sworn Statement with the Court,
through the Office of the Bar Confidant, stating therein that he or she has desisted from the practice of law and
has not appeared in any court during the period of his or her suspension;
4. Copies of the Sworn Statement shall be furnished to the Local Chapter of the IBP and to the Executive Judge
of the courts where respondent has pending cases handled by him or her, and/or where he or she has appeared
as counsel;
5. The Sworn Statement shall be considered as proof of respondent’s compliance with the order of suspension;
6. Any finding or report contrary to the statements made by the lawyer under oath shall be a ground for the
imposition of a more severe punishment, or disbarment, as may be warranted.

2. Lawyers who have been disbarred

Effect of reinstatement: Wipes out the restrictions and disabilities resulting from a previous disbarment
Prior to actual reinstatement, the lawyer will be required to take anew the lawyer’s oath and sign once again the roll
of attorneys after paying the requisite fees (Funa, 2009).

Requirements for judicial clemency for disbarred lawyers and judges

1. There must be proof of remorse and reformation.
2. Sufficient time must have elapsed from the imposition of the penalty to ensure a period of reform.
3. The age of the person asking for clemency must show that he still has productive years ahead of him that
can be put to good use by giving him a chance to redeem himself.
4. There must be a showing of promise (such as intellectual aptitude, learning or legal acumen or contribution
to the legal scholarship and the development of the legal system), as well as potential for public service.
5. There must be other relevant factors and circumstances that may justify clemency

SUPREME COURT’S GUIDELINES IN REINSTATEMENT

1. The applicant’s character and standing prior to the disbarment;
2. The nature and character of the charge for which he was disbarred;
3. His conduct subsequent to the disbarment, and the time that has elapsed between the disbarment and the
application for reinstatement (Prudential Bank v. Benjamin Grecia, A.C. No. 2756, December 18, 1990);
4. His efficient government service (In re: Adriatico, G.R. No. L-2532, November 17, 1910);
5. Applicant’s appreciation of the significance of his dereliction and his assurance that he now possesses the
requisite probity and integrity; and
6. Favorable endorsement of the IBP and pleas of his loved ones (Yap Tan v. Sabandal, B.M. No. 144, February
24, 1989).

NOTE: Whether or not the applicant shall be reinstated rests on the discretion of the court

The court may require applicant for reinstatement to enroll in and pass the required fourth year review
classes in a recognized law school (Cui v. Cui, In Re: Resian, A.C. No. 270, March 20, 1974).
Other effects of reinstatement
1. Recognition of moral rehabilitation and mental fitness to practice law;
2. Lawyer shall be subject to the same law, rules and regulations as those applicable to any other lawyer; and
3. Lawyer must comply with the conditions imposed on his readmission.

E. Mandatory Continuing Legal Education (Bar Matter No. 850, as amended)

Purpose of MCLE
MCLE ensures that members of the IBP are kept abreast with law and jurisprudence throughout their career,
maintain the ethics of the profession and enhance the standards of the practice of law.

Committee on Mandatory Continuing Legal Education

1. Composition:

a. Retired Justice of the SC – to act as Chairman, who is nominated by the SC

b. IBP National President – acts as the Vice-Chairman
c. 3 other members – nominated by the Philippine Judicial Academy, UP Law Center and Association of Law
Professors, respectively
2. Members are of proven probity and integrity
3. Compensation as may be determined by the SC
4. The initial terms of each of the 3 members shall be 5, 4, and 3 years respectively

1. Requirements
Requirements of completion of MCLE
Members of the IBP, unless exempted under Rule 7, shall complete every 3 years at least 36 hours of
continuing legal education activities. The 36 hours shall be divided as follows:
1. 6 hours – legal ethics
2. 4 hours – trial and pretrial skills
3. 5 hours – alternative dispute resolution
4. 9 hours – updates on substantive and procedural laws and jurisprudence
5. 4 hours – legal writing and oral advocacy
6. 2 hours – international law and international conventions
7. Remaining 6 hours – such other subjects as may be prescribed by the Committee on MCLE

2. Compliance
NON-COMPLIANCE OF THE MCLE
1. Failure to complete education requirement within the compliance period;
2. Failure to provide attestation of compliance or exemption;
3. Failure to provide satisfactory evidence of compliance (including evidence of exempt status) within the
prescribed period;
4. Failure to satisfy the education requirement and furnish evidence of such compliance within 60 days from
receipt of non-compliance notice;
5. Failure to pay non-compliance fee within the prescribed period; or
6. Any other act or omission analogous to any of the foregoing or intended to circumvent or evade compliance
with the MCLE requirements.
NOTE: Members failing to comply will receive a Non-Compliance Notice stating the specific deficiency and
will be given 60 days from date of notification to file a response.
3. Exemptions
Persons exempted from the MCLE
1. The President, Vice-President and the Secretaries and Undersecretaries of Executive Departments;
2. Senators and Members of the House of Representatives;
3. The Chief Justice and Associate Justices of the Supreme Court, incumbent and retired members of the
judiciary, incumbent members of Judicial Bar Council, incumbent members of the MCLE Committee,
incumbent court lawyers who have availed of the Philippine Judicial Academy programs of continuing judicial
education (Amendment to Bar Matter 850, Resolution of the Court En Banc, July 13, 2004);
4. The Chief State Counsel, Chief State Prosecutor and Assistant Secretaries of the Dept. of Justice;
5. The Solicitor General and the Assistant Solicitor General;
6. The Government Corporate Counsel, Deputy and Assistant Government Corporate Counsel;
7. The Chairman and Members of the Constitutional Commissions;
8. The Ombudsman, the Overall Deputy Ombudsman, the Deputy Ombudsmen and the Special Prosecutor of
the Office of the Ombudsman;
9. Heads of government agencies exercising quasi-judicial functions;
10. Incumbent deans, bar reviewers and professors of law who have teaching experience for at least 10 years
in accredited law schools;
11. The Chancellor, Vice-Chancellor and members of the Corps of Professional and Professorial Lecturers of
the Philippine Judicial Academy; and
12. Governors and Mayors because they are prohibited from practicing their profession

Other parties exempted:

1. Those who are not in law practice, private or public;
2. Those who have retired from law practice with the approval of the IBP Board of Governors

4. Sanctions
Consequences of non-compliance
A member who fails to comply with the requirements after the 60-day period shall be listed as delinquent
member by the IBP Board of Governors upon recommendation of the Committee on MCLE.
NOTE: The listing as a delinquent member is an administrative in nature but it shall be made with notice and
hearing by the Committee on MCLE. B.M. No. 1922, which took effect on January 1, 2009, requires practicing
members of the bar to indicate in all pleadings filed before the courts or quasi-judicial bodies, the number and
date of issue of their MCLE Certificate of Compliance or Certificate of Exemption, as may be applicable, for the
immediately preceding compliance period. Failure to disclose the required information would cause the
dismissal of the case and the expunction of the pleadings from the records.

F. Notarial Practice (A.M. No. 02-8-13-SC, as amended)

Purpose of the Notarial Law
1. To promote, serve, and protect public interest;
2. To simplify, clarify, and modernize the rules governing notaries public; and
3. To foster ethical conduct among notaries public (Sec. 2, Rule I, A.M. No. 02-8-13-SC)

Effect of notarized document

A document acknowledged before a notary public is a public document (Sec. 19, Rule 132, RRC) and may be
presented in evidence without further proof, the certificate of acknowledgment being prima facie evidence of the
execution of the instrument or document involved (Sec. 30, Rule 132, RRC).
1. Qualifications of a notary public
Notary public
A person appointed by the court whose duty is to attest to the genuineness of any deed or writing in order to
render them available as evidence of facts stated therein and who is authorized by the statute to administer
various oaths.
NOTE: “Notary Public" and "Notary" refer to any person commissioned to perform official acts under the
rules on Notarial Practice (Sec. 9, Rule II, A.M. No. 02-8-13-SC).

Qualifications of a notary public [C21-RMC]

To be eligible for commissioning as notary public, the petitioner must be:
1. A citizen of the Philippines;
2. Over 21 years of age;
3. A resident in the Philippines for at least 1 year and maintains a regular place of work or business in the city
or province where the commission is to be issued;
NOTE: This is to prohibit the practice of some notaries who maintain makeshift “offices” in sidewalks and
street corners of government offices (Tirol, 2010).
4. A member of the Philippine Bar in good standing with clearances from the Office of the Bar Confidant of the
Supreme Court and the Integrated Bar of the Philippines; and
5. Has not been convicted in the first instance of any crime involving moral turpitude (Second par., Sec. 1, Rule
III, 2004 Rules on Notarial Practice, A.M. No. 02-8-13-SC).

2. Term of office of a notary public

A notary public may perform notarial acts for a period of 2 years commencing the 1st day of January of the
year in which the commissioning is made until the last day of December of the succeeding year regardless of
the actual date when the application was renewed, unless earlier revoked or the notary public has resigned
under the Rules on Notarial Practice and the Rules of Court (Section 11, Rule III, A.M. No. 02-8-13-SC).

NOTE: The period of 2 years of a notarial commission will commence at January first regardless of when it was
really granted and will end at exactly 2 years from said date of commencement up to December of the 2nd year.
Ex. Atty. Antonio applied for and was given notarial commission on 12 November 2010, such term will expire
on 31 December 2011

3. Powers and limitations

A notary public is empowered to perform the following notarial acts: [JAO-CAS]
1. Acknowledgements;
2. Oaths and affirmations;
3. Jurats;
4. Signature witnessing;
5. Copy certifications; and
6. Any other act authorized by these rules (Section 1(a), Rule IV, A.M. No. 02-8-13-SC)

LIMITATIONS TO THE PERFORMANCE OF A NOTARIAL ACT

4. Notarial Register
5. Jurisdiction of notary public and place of notarization
6. Competent evidence of identity
7. Sanctions
8. Relation to Code of Professional Responsibility

II. JUDICIAL ETHICS

A. Sources
1. New Code of Judicial Conduct for the Philippine Judiciary (Bangalore Draft)
2. Code of Judicial Conduct
B. Disqualifications of judicial officers (Rule 137)
 Disqualification of Judicial Officers

Section 1. Disqualification of judges. — No judge or judicial officer shall sit in any case in which he,
or his wife or child, is pecuniarily interested as heir, legatee, creditor or otherwise, or in which he is
related to either party within the sixth degree of consanguinity or affinity, or to counsel within the
fourth degree, computed according to the rules of the civil law, or in which he has been executor,
administrator, guardian, trustee or counsel, or in which he has been presided in any inferior court
when his ruling or decision is the subject of review, without the written consent of all parties in
interest, signed by them and entered upon the record.

A judge may, in the exercise of his sound discretion, disqualify himself from sitting in a case, for just
or valid reasons other than those mentioned above.

Section 2. Objection that judge disqualified, how made and effect. — If it be claimed that an official
is disqualified from sitting as above provided, the party objecting to his competency may, in writing,
file with the official his objection, stating the grounds therefor, and the official shall thereupon
proceed with the trial, or withdraw therefrom, in accordance with his determination of the question of
his disqualification. His decision shall be forthwith made in writing and filed with the other papers in
the case, but no appeal or stay shall be allowed from, or by reason of, his decision in favor of his
own competency, until after final judgment in the case.

1. Compulsory
Disqualification of justices and judges
GR: Section 1 of Rule 137 provides that a judge is mandated by law to be disqualified under any of the
following instances:
1. The judge, or his wife, or child is pecuniarily interested as heir, legatee, or creditor
2. The judge is related to either party of the case within the sixth degree of consanguinity or affinity, or to the
counsel within the fourth degree (computed according to the rule of civil law)
3. The judge has been an executor, administrator, guardian, trustee or counsel
4. The judge has presided in any inferior court when his ruling or decision is the subject of
review

XPN: The same rule also provides that the judge may hear and decide the case despite the presence
of a disqualification provided the interested parties both give their written consent, signed by them and
entered upon the record. It has been decided by the Supreme Court that oral consent is not valid, even
though both parties have agreed (Lazo v. Judge Tiong, A.M. No. MTJ-98-1173, December 15, 1998).

2. Voluntary VOLUNTARY
Voluntary Inhibition according to the Rules of Court states that a judge through the exercise of sound
discretion, disqualify himself from sitting in a case, for just or valid reasons other than those mentioned
above.
NOTE: A presiding judge must maintain and preserve the trust and faith of the parties-litigants. He must hold
himself above reproach and suspicion. At the very sign of lack of faith and trust in his actions, whether well-
grounded or not, the judge has no other alternative but to inhibit himself from the case (Gutang v. Court of
Appeals, G.R. No. 124760 July 8, 1998).

The self-examination of the judge is necessary. He should exercise his discretion in a way that people’s
faith in the courts of justice will not be impaired. His decision, as to whether to hear the case or not
should be based and dependent on giving importance to the public confidence in the impartiality of a judge.
C. Administrative jurisdiction of the Supreme Court over Judges and Justices (all levels)
 III. PRACTICAL EXERCISES

A. Demand and authorization letters

B. Simple contracts: lease and sale
C. Special power of attorney
D. Verification and certificate of non-forum shopping

VERIFICATION AND CERTIFICATE OF

NON-FORUM SHOPPING

I._____________________________________________, of legal age, ______________________ _______________________, and a resident

(name) (citizenship) (civil status) of _______________________________________________________________, after having been
duly sworn to in accordance with law, hereby, depose and say:

1. That I am the ____________________in the above-entitled case and have caused this
___________________________________ to be prepared; that I read and understood its contents which are true and
correct of my own personal knowledge and/or based on authentic records.

2. That I have not commenced any action of proceeding involving the same issue in the Supreme Court, the
Court of Appeals or any other tribunal or agency; that to the best of my knowledge, no such action or
proceeding is pending in the Supreme Court, the Court of Appeals or any tribunal or agency, and that, if I
should learn thereafter that a similar action or proceeding has been filed or is pending before these courts of
tribunal or agency, I undertake to report that the fact to the Court within five (5) days therefrom.

IN WITNESS WHEREFOR, I have hereunto set my hand this ____ day of __________________,20____.
Affiant SUBSCRIBED AND SWORN to before me this______day of _______________, 20_____ .

NOTARY PUBLIC

E. Notice of hearing and explanation in motions

NOTICE OF HEARING

F. Judicial Affidavits
G. Notarial certificates: jurat and acknowledgement
H. Motions for extension of time, to dismiss, and to declare in default