PALE: introduction

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 Lawyer’s Oath
• I, do solemnly swear that I will ________________to the Republic of the
Philippines, I will support the Constitution and
_________________________ as well as the legal orders of the duly
constituted authorities therein;
• I will do no ____________, nor _______________ to the doing of any in
court;
• I will not wittingly or willingly promote or sue any __________________
or ______________ suit, or give aid nor consent to the same;
• I will delay _______________ for ____________ or ___________, and will
conduct myself as a lawyer according to the best of my knowledge and
_______________, with all _______________ as well to the courts as to my
clients;
• and I impose upon myself these __________________ obligations without
any mental reservation or ________________________.
• So help me God.

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• I, do solemnly swear that I will maintain allegiance to the
Republic of the Philippines, I will support the 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 the doing of any in court;
• I will not wittingly or willingly promote or sue any groundless,
false or unlawful suit, or give aid nor consent to the same;
• I will delay no man 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 these voluntary obligations without any
mental reservation or purpose of evasion.
• So help me God.

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 CODE OF PROFESSIONAL RESPONSIBILITY
(Promulgated June 21, 1988)

• CHAPTER I. THE LAWYER AND SOCIETY

• CANON 1 - A LAWYER SHALL UPHOLD THE CONSTITUTION, OBEY THE

LAWS OF THE LAND AND PROMOTE RESPECT FOR LAW OF AND LEGAL
PROCESSES.
• Rule 1.01 - A lawyer shall not engage in unlawful, dishonest,
immoral or deceitful conduct.
• Rule 1.02 - A lawyer shall not counsel or abet activities aimed
at defiance of the law or at lessening confidence in the legal
system.
• Rule 1.03 - A lawyer shall not, for any corrupt motive or
interest, encourage any suit or proceeding or delay any man's
cause.
• Rule 1.04 - A lawyer shall encourage his clients to avoid, end or
settle a controversy if it will admit of a fair settlement.

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• CANON 2 - A LAWYER SHALL MAKE HIS LEGAL SERVICES AVAILABLE IN
AN EFFICIENT AND CONVENIENT MANNER COMPATIBLE WITH THE
INDEPENDENCE, INTEGRITY AND EFFECTIVENESS OF THE PROFESSION.

• Rule 2.01 - A lawyer shall not reject, except for valid reasons,
the cause of the defenseless or the oppressed.
• Rule 2.02 - In such cases, even if the lawyer does not accept a
case, he shall not refuse to render legal advice to the person
concerned if only to the extent necessary to safeguard the latter's
rights.
• Rule 2.03 - A lawyer shall not do or permit to be done any act
designed primarily to solicit legal business.
• Rule 2.04 - A lawyer shall not charge rates lower than those
customarily prescribed unless the circumstances so warrant.

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• CANON 3 - A LAWYER IN MAKING KNOWN HIS LEGAL SERVICES SHALL
USE ONLY TRUE, HONEST, FAIR, DIGNIFIED AND OBJECTIVE
INFORMATION OR STATEMENT OF FACTS.

• Rule 3.01 - A lawyer shall not use or permit the use of any false,
fraudulent, misleading, deceptive, undignified, self-laudatory or
unfair statement or claim regarding his qualifications or legal
services.
• Rule 3.02 - In the choice of a firm name, no false, misleading or
assumed name shall be used. The continued use of the name of a
deceased partner is permissible provided that the firm indicates in
all its communications that said partner is deceased.
• Rule 3.03 - Where a partner accepts public office, he shall
withdraw from the firm and his name shall be dropped from the
firm name unless the law allows him to practice law currently.
• Rule 3.04 - A lawyer shall not pay or give anything of value to
representatives of the mass media in anticipation of, or in return 6
for, publicity to attract legal business.
• CANON 4 - A LAWYER SHALL PARTICIPATE IN THE DEVELOPMENT OF THE
LEGAL SYSTEM BY INITIATING OR SUPPORTING EFFORTS IN LAW REFORM
AND IN THE IMPROVEMENT OF THE ADMINISTRATION OF JUSTICE.

• CANON 5 - A LAWYER SHALL KEEP ABREAST OF LEGAL DEVELOPMENTS,

PARTICIPATE IN CONTINUING LEGAL EDUCATION PROGRAMS, SUPPORT
EFFORTS TO ACHIEVE HIGH STANDARDS IN LAW SCHOOLS AS WELL AS IN
THE PRACTICAL TRAINING OF LAW STUDENTS AND ASSIST IN
DISSEMINATING THE LAW AND JURISPRUDENCE.

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• CANON 6 - THESE CANONS SHALL APPLY TO LAWYERS IN GOVERNMENT
SERVICES IN THE DISCHARGE OF THEIR TASKS.

• Rule 6.01 - The primary duty of a lawyer engaged in public

prosecution is not to convict but to see that justice is done. The
suppression of facts or the concealment of witnesses capable of
establishing the innocence of the accused is highly reprehensible
and is cause for disciplinary action.
• Rule 6.02 - A lawyer in the government service shall not use his
public position to promote or advance his private interests, nor
allow the latter to interfere with his public duties.
• Rule 6.03 - 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.

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 CHAPTER II. THE LAWYER AND THE LEGAL
PROFESSION
• CANON 7 - A LAWYER SHALL AT ALL TIMES UPHOLD THE INTEGRITY AND
DIGNITY OF THE LEGAL PROFESSION AND SUPPORT THE ACTIVITIES OF
THE INTEGRATED BAR.
•
Rule 7.01 - A lawyer shall be answerable for knowingly making a
false statement or suppressing a material fact in connection
with his application for admission to the bar.
• Rule 7.02 - A lawyer shall not support the application for
admission to the bar of any person known by him to be unqualified
in respect to character, education, or other relevant attribute.
• Rule 7.03 - A lawyer shall not engage in conduct that adversely
reflects on his fitness to practice law, nor shall he whether in
public or private life, behave in a scandalous manner to the
discredit of the legal profession.

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• CANON 8 - A LAWYER SHALL CONDUCT HIMSELF WITH COURTESY,
FAIRNESS AND CANDOR TOWARDS HIS PROFESSIONAL COLLEAGUES, AND
SHALL AVOID HARASSING TACTICS AGAINST OPPOSING COUNSEL.
• Rule 8.01 - A lawyer shall not, in his professional dealings, or
otherwise improper use language which is abusive, offensive
• Rule 8.02 - A lawyer shall not, directly or indirectly, encroach
upon the professional employment of another lawyer, however, it is
the right of any lawyer, without fear or favor, to give proper
advice and assistance to those seeking relief against unfaithful or
neglectful counsel.

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• CANON 9 - A LAWYER SHALL NOT, DIRECTLY OR INDIRECTLY, ASSIST
IN THE UNAUTHORIZED PRACTICE OF LAW.
•
• Rule 9.01 - A lawyer shall not delegate to any unqualified person
the performance of any task which by law may only be performed by a
member of the bar in good standing.
• Rule 9.02 - A lawyer shall not divide or stipulate to divide a fee
for legal services with persons not licensed to practice law,
except:
• (a) Where 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; or
• (b) Where a lawyer undertakes to complete unfinished legal business
of a deceased lawyer; or
• (c) Where a lawyer or law firm includes non-lawyer employees in a
retirement plan even if the plan is based in whole or in part, on a
profit sharing agreement.

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 CHAPTER III. THE LAWYER AND THE COURTS

• CANON 10 - A LAWYER OWES CANDOR, FAIRNESS AND GOOD FAITH TO

THE COURT.

• Rule 10.01 - A lawyer shall not do any falsehood, nor consent to

the doing of any in Court; nor shall he mislead, or allow the Court
to be misled by any artifice.
• Rule 10.02 - A lawyer shall not knowingly misquote or misrepresent
the contents of a paper, the language or the argument of opposing
counsel, or the text of a decision or authority, or knowingly cite
as law a provision already rendered inoperative by repeal or
amendment, or assert as a fact that which has not been proved.
• Rule 10.03 - A lawyer shall observe the rules of procedure and
shall not misuse them to defeat the ends of justice.

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• CANON 11 - A LAWYER SHALL OBSERVE AND MAINTAIN THE RESPECT DUE
TO THE COURTS AND TO JUDICIAL OFFICERS AND SHOULD INSIST ON
SIMILAR CONDUCT BY OTHERS.
•
• Rule 11.01 - A lawyer shall appear in court properly attired.
• Rule 11.02 - A lawyer shall punctually appear at court hearings.
• Rule 11.03 - A lawyer shall abstain from scandalous, offensive or
menacing language or behavior before the Courts.
• Rule 11.04 - A lawyer shall not attribute to a Judge motives not
supported by the record or have no materiality to the case.
• Rule 11.05 - A lawyer shall submit grievances against a Judge to
the proper authorities only.

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• CANON 12 - A LAWYER SHALL EXERT EVERY EFFORT AND CONSIDER IT
HIS DUTY TO ASSIST IN THE SPEEDY AND EFFICIENT ADMINISTRATION
OF JUSTICE.

• Rule 12.01 - A lawyer shall not appear for trial unless he has
adequately prepared himself on the law and the facts of his case,
the evidence he will adduce and the order of its preference. He
should also be ready with the original documents for comparison
with the copies.
• Rule 12.02 - A lawyer shall not file multiple actions arising from
the same cause.
• Rule 12.03 - A lawyer shall not, after obtaining extensions of time
to file pleadings, memoranda or briefs, let the period lapse
without submitting the same or offering an explanation for his
failure to do so.
• Rule 12.04 - A lawyer shall not unduly delay a case, impede the
execution of a judgment or misuse Court processes.
• Rule 12.05 - A lawyer shall refrain from talking to his witness
during a break or recess in the trial, while the witness is still
under examination.
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• Rule 12.06 - A lawyer shall not knowingly assist a witness to
misrepresent himself or to impersonate another.
• Rule 12.07 - A lawyer shall not abuse, browbeat or harass a witness
nor needlessly inconvenience him.

• Rule 12.08 - A lawyer shall avoid testifying in behalf of his

client, except:
(a) on formal matters, such as the mailing, authentication or custody
of an instrument, and the like; or
(b) on substantial matters, in cases where his testimony is essential
to the ends of justice, in which event he must, during his testimony,
entrust the trial of the case to another counsel.

• Rule 12.08 - A lawyer shall avoid testifying in behalf of his

client, except:
(a) on formal matters, such as the mailing, authentication or custody
of an instrument, and the like; or
(b) on substantial matters, in cases where his testimony is essential
to the ends of justice, in which event he must, during his testimony,
entrust the trial of the case to another counsel.
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• CANON 13 - A LAWYER SHALL RELY UPON THE MERITS OF HIS CAUSE
AND REFRAIN FROM ANY IMPROPRIETY WHICH TENDS TO INFLUENCE, OR
GIVES THE APPEARANCE OF INFLUENCING THE COURT.
•
• Rule 13.01 - A lawyer shall not extend extraordinary attention or
hospitality to, nor seek opportunity for cultivating familiarity
with Judges.
• Rule 13.02 - A lawyer shall not make public statements in the media
regarding a pending case tending to arouse public opinion for or
against a party.
• Rule 13.03 - A lawyer shall not brook or invite interference by
another branch or agency of the government in the normal course of
judicial proceedings.

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 CHAPTER IV. THE LAWYER AND THE
CLIENT
• CANON 14 - A LAWYER SHALL NOT REFUSE HIS SERVICES TO THE
NEEDY.
•
• Rule 14.01 - A lawyer shall not decline to represent a person
solely on account of the latter's race, sex. creed or status of
life, or because of his own opinion regarding the guilt of said
person.
• Rule 14.02 - A lawyer shall not decline, except for serious and
sufficient cause, an appointment as counsel de officio or as amicus
curiae, or a request from the Integrated Bar of the Philippines or
any of its chapters for rendition of free legal aid.
• Rule 14.03 - A lawyer may not refuse to accept representation of
an indigent client if:
(a) he is not in a position to carry out the work effectively or
competently;
(b) he labors under a conflict of interest between him and the
prospective client or between a present client and the prospective 17
client.
• Rule 14.04 - A lawyer who accepts the cause of a person unable to
pay his professional fees shall observe the same standard of
conduct governing his relations with paying clients.

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

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

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• 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.

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• 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.

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• CANON 16 - A LAWYER SHALL HOLD IN TRUST ALL MONEYS AND
PROPERTIES OF HIS CLIENT THAT MAY COME INTO HIS POSSESSION.

• Rule 16.01 - A lawyer shall account for all money or property

collected or received for or from the client.
• Rule 16.02 - A lawyer shall keep the funds of each client separate
and apart from his own and those of others kept by him.
• Rule 16.03 - A lawyer shall deliver the funds and property of his
client when due or upon demand. However, he shall have a lien over
the funds and may apply so much thereof as may be necessary to
satisfy his lawful fees and disbursements, giving notice promptly
thereafter to his client. He shall also have a lien to the same
extent on all judgments and executions he has secured for his
client as provided for in the Rules of Court.
• Rule 16.04 - A lawyer shall not borrow money from his client unless
the client's interest are fully protected by the nature of the case
or by independent advice. Neither shall a lawyer lend money to a
client except, when in the interest of justice, he has to advance
necessary expenses in a legal matter he is handling for the client.

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• 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.

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

• Rules 18.01 - A lawyer shall not undertake a legal service which he

knows or should know that he is not qualified to render. However,
he may render such service if, with the consent of his client, he
can obtain as collaborating counsel a lawyer who is competent on
the matter.
• Rule 18.02 - A lawyer shall not handle any legal matter without
adequate preparation.
• Rule 18.03 - A lawyer shall not neglect a legal matter entrusted to
him, and his negligence in connection therewith shall render him
liable.
• Rule 18.04 - A lawyer shall keep the client informed of the status
of his case and shall respond within a reasonable time to the
client's request for information.

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• CANON 19 - A LAWYER SHALL REPRESENT HIS CLIENT WITH ZEAL
WITHIN THE BOUNDS OF THE LAW.

• Rule 19.01 - A lawyer shall employ only fair and honest means to
attain the lawful objectives of his client and shall not present,
participate in presenting or threaten to present unfounded criminal
charges to obtain an improper advantage in any case or proceeding.
• Rule 19.02 - A lawyer who has received information that his client
has, in the course of the representation, perpetrated a fraud upon
a person or tribunal, shall promptly call upon the client to
rectify the same, and failing which he shall terminate the
relationship with such client in accordance with the Rules of
Court.
• Rule 19.03 - A lawyer shall not allow his client to dictate the
procedure in handling the case.

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• CANON 20 - A LAWYER SHALL CHARGE ONLY FAIR AND REASONABLE
FEES.

• Rule 20.01 - A lawyer shall be guided by the following factors in

determining his fees:
(a) the time spent and the extent of the service rendered or required;
(b) the novelty and difficulty of the questions involved;
(c) The importance of the subject matter;
(d) The skill demanded;
(e) The probability of losing other employment as a result of
acceptance of the proffered case;
(f) The customary charges for similar services and the schedule
of fees of the IBP chapter to which he belongs;
(g) The amount involved in the controversy and the benefits resulting
to the client from the service;
(h) The contingency or certainty of compensation;
(i) The character of the employment, whether occasional or
established; and
(j) The professional standing of the lawyer.
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• Rule 20.02 - A lawyer shall, in case of referral, with the
consent of the client, be entitled to a division of fees in
proportion to the work performed and responsibility assumed.
• Rule 20.03 - A lawyer shall not, without the full knowledge and
consent of the client, accept any fee, reward, costs, commission,
interest, rebate or forwarding allowance or other compensation
whatsoever related to his professional employment from anyone other
than the client.
• Rule 20.04 - A lawyer shall avoid controversies with clients
concerning his compensation and shall resort to judicial action
only to prevent imposition, injustice or fraud.
• CANON 20 - A LAWYER SHALL CHARGE ONLY FAIR AND REASONABLE
FEES.

• Rule 20.01 - A lawyer shall be guided by the following factors in

determining his fees:
xxxxx
(f) The customary charges for similar services and the
schedule of fees of the IBP chapter to which he belongs;
xxxxx
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• CANON 21 - A LAWYER SHALL PRESERVE THE CONFIDENCE AND SECRETS OF HIS
CLIENT EVEN AFTER THE ATTORNEY-CLIENT RELATION IS TERMINATED.

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

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

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

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

• Rule 21.05 - A lawyer shall adopt such measures as may be

required to prevent those whose services are utilized by him, from
disclosing or using confidences or secrets of the clients.

• Rule 21.06 - A lawyer shall avoid indiscreet conversation about

a client's affairs even with members of his family.

• Rule 21.07 - A lawyer shall not reveal that he has been

consulted about a particular case except to avoid possible
conflict of interest.

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• Privileged communication refers to any communication made by the
client to a lawyer, or his advice given thereon in the course of,
or with a view to, professional employment.

• "Confidence" refers to information protected by the attorney-client

privilege under applicable law, and

• “Secret" refers to other information gained in the professional

relationship that the client has requested be held inviolate or the
disclosure of which would be embarrassing or would be likely to be
detrimental to the client.

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• CANON 22 - A LAWYER SHALL WITHDRAW HIS SERVICES ONLY FOR GOOD
CAUSE AND UPON NOTICE APPROPRIATE IN THE CIRCUMSTANCES.

• Rule 22.01 - A lawyer may withdraw his services in any of the

following case:
(a) When the client pursues an illegal or immoral course of conduct
in connection with the matter he is handling;
(b) When the client insists that the lawyer pursue conduct
violative of these canons and rules;
(c) When his inability to work with co-counsel will not promote the
best interest of the client;
(d) When the mental or physical condition of the lawyer renders it
difficult for him to carry out the employment effectively;
(e) When the client deliberately fails to pay the fees for the
services or fails to comply with the retainer agreement;
(f) When the lawyer is elected or appointed to public office; and
(g) Other similar cases.

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• Rule 22.02 - A lawyer who withdraws or is discharged shall, subject
to a retainer lien, immediately turn over all papers and property
to which the client is entitled, and shall cooperative with his
successor in the orderly transfer of the matter, including all
information necessary for the proper handling of the matter.

CANON 22 - A LAWYER SHALL WITHDRAW HIS SERVICES ONLY FOR GOOD

CAUSE AND UPON NOTICE APPROPRIATE IN THE CIRCUMSTANCES.

• Rule 22.01 - A lawyer may withdraw his services in any of the

following case:
xxxxx
• (f) When the lawyer is elected or appointed to public office;

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 ARTICLE VI
The Legislative Department

SECTION 14. 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 administrative bodies.
xxx

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 A.M. No. 03-05-01-SC
Adopting the New Code of Judicial Conduct
for the Philippine Judiciary
Promulgated this 27th day of April 2004
• WHEREAS, at the Round Table Meeting of Chief Justices held at the
Peace Palace, The Hague, on 25-26 November 2002, at which the
Philippine Supreme Court was represented by the Chief Justice and
Associate Justice Reynato S. Puno, the Bangalore Draft of the Code
of Judicial Conduct adopted by the Judicial Group on Strengthening
Judicial Integrity was deliberated upon and approved after
incorporating therein several amendments;
• WHEREAS, the Bangalore Draft, as amended, is intended to be the
Universal Declaration of Judicial Standards applicable in all
judiciaries;

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• WHEREAS, the Bangalore Draft is founded upon a universal
recognition that a competent, independent and impartial
judiciary is essential if the courts are to fulfill their role
in upholding constitutionalism and the rule of law; that public
confidence in the judicial system and in the moral authority and
integrity of the judiciary is of utmost importance in a modern
democratic society; and that it is essential that judges,
individually and collectively, respect and honor judicial office as
a public trust and strive to enhance and maintain confidence in the
judicial system;
• WHEREAS, the adoption of the universal declaration of standards for
ethical conduct of judges embodied in the Bangalore Draft as
revised at the Round Table Conference of Chief Justices at The
Hague is imperative not only to update and correlate the Code of
Judicial Conduct and the Canons of Judicial Ethics adopted for the
Philippines, but also to stress the Philippines’ solidarity with
the universal clamor for a universal code of judicial ethics.
• NOW, THEREFORE, the Court hereby adopts this New Code of Judicial
Conduct for the Philippine Judiciary:

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• This Code, which shall hereafter be referred to as the New Code of
Judicial Conduct for the Philippine Judiciary, supersedes the
Canons of Judicial Ethics and the Code of Judicial Conduct
heretofore applied in the Philippines to the extent that the
provisions or concepts therein are embodied in this Code: Provided,
however, that in case of deficiency or absence of specific
provisions in this New Code, the Canons of Judicial Ethics and the
Code of Judicial Conduct shall be applicable in a suppletory
character.

• This New Code of Judicial Conduct for the Philippine Judiciary

shall take effect on the first day of June 2004, following its
publication not later than 15 May 2004 in two newspapers of large
circulation in the Philippines to ensure its widest publicity.

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 Who can be a judge?

• Section 7.

(1) No person shall be appointed Member of the Supreme Court or any

lower collegiate court unless he is a natural-born citizen of the
Philippines. A Member of the Supreme Court must be at least forty
years of age, and must have been for fifteen years or more a judge of
a lower court or engaged in the practice of law in the Philippines.

(2) The Congress shall prescribe the qualifications of judges of lower

courts, but no person may be appointed judge thereof unless he is a
citizen of the Philippines and a member of the Philippine Bar.

(3) A Member of the Judiciary must be a person of proven competence,

integrity, probity, and independence.

- ARTICLE VIII Judicial Department [Constitution]

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 • CANON 1. INDEPENDENCE
• Judicial independence is a prerequisite to the Rule of Law and a
fundamental guarantee of fair trial. A judge shall therefore,
uphold and exemplify judicial independence in both its individual
and institutional aspects.

Section 1. Judges shall exercise the judicial function independently

on the basis of their assessment of the facts and in
accordance with a conscientious understanding of the law,
free of any extraneous influence, inducement, pressure,
threat or interference, direct or indirect, from any
quarter or for any reason.

Section 2. In performing judicial duties, judges shall be independent

from judicial colleagues in respect of decisions which the
judge is obliged to make independently.

Section 3. Judges shall refrain from influencing in any manner the

outcome of litigation or dispute pending before another
court or administrative agency.
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Section 4. Judges shall not allow family, social or other
relationships to influence judicial conduct or judgment.
The prestige of judicial office shall not be used or lent
to advance the public interests of others, nor convey or
permit others to convey the impression that they are in a
special position to influence the judge.

Section 5. Judges shall not only be free from inappropriate

connections with, and influence by, the executive and
legislative branches of government, but must also appear to
be free therefrom to a reasonable observer.

Section 6. Judges shall be independent in relation to society in

general and in relation to the particular parties to a
dispute which he or she has to abdicate.

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• Section 7. Judges shall encourage and uphold safeguards for the
discharge of judicial duties in order to maintain and enhance the
institutional and operational independence of the judiciary.

• Section 8. Judges shall exhibit and promote high standards of

judicial conduct in order to reinforce public confidence in the
judiciary which is fundamental to the maintenance of judicial
independence.
 • CANON 2. INTEGRITY

Integrity is essential not only to the proper discharge of the

judicial office but also to the personal demeanor of judges.

Section 1. Judges shall ensure that not only is their conduct above
reproach, but that it is perceived to be so in the view
of a reasonable observer.

Section 2. The behavior and conduct of judges must reaffirm the

people's faith in the integrity of the judiciary. Justice
must not only merely be done but must also be seen and
done.

Section 3. Judges should take or initiate appropriate disciplinary

measures against lawyers or court personnel for unprofessional conduct
of which the judge may have become aware.

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 • CANON 3. IMPARTIALITY

• Impartiality is essential to the proper discharge of the judicial

office. It applies not only to the decision itself but also to the
process by which the decision is made.

Section 1. Judges shall perform their judicial duties without favor,

bias, or prejudice.

Section 2. Judges shall ensure that his or her conduct, both in and
out of court, maintains and enhances the confidence of
the public, the legal profession and litigants in the
impartiality of the judge and of the judiciary.

Section 3. Judges shall, so far as is reasonable, so conduct

themselves as to minimize the occasions on which it will
be necessary for them to be disqualified from hearing or
deciding cases.

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Section 4. Judges shall not knowingly, while a proceeding is before, or
could come before them, make any comment that might reasonably
be expected to affect the outcome of such proceeding or impair
the manifest fairness of the process. Nor shall judges make
any comment in public or otherwise that might affect the fair
trial of any person or issue.

Section 5. Judges shall disqualify themselves from participating in any

proceedings in which they are unable to decide the matter
impartially or in which it may appear to a reasonable observer
that they are unable to decide the matter impartially. such
proceedings include, but are not limited to, instances where

(a) The judge has actual bias or prejudice concerning a party or personal
knowledge of disputed evidentiary facts concerning the proceedings;

(b) The judge previously served as a lawyer or was a material witness in

the matter in controversy;

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(c) The judge, or a member of his or her family, has an economic
interest in the outcome of the matter in controversy;

(d) The judge served as executor, administrator, guardian, trustee, or

lawyer in the case or matter in controversy, or a former associate
of the judge served as counsel during their association, or the
judge or lawyer was a material witness therein;

(d) The judge served as executor, administrator, guardian, trustee, or

lawyer in the case or matter in controversy, or a former associate
of the judge served as counsel during their association, or the
judge or lawyer was a material witness therein;

(e) The judge's ruling in a lower court is the subject of review;

(f) The judge is related by consanguinity or affinity to a party

litigant within the 6th civil degree or to counsel within the 4th
civil degree; or

43
(g) The judge knows that his or her spouse or child has a financial
interest, as heir, legatee, creditor, fiduciary, or otherwise, in
the subject matter in controversy or in a party to the proceeding,
or any other interest that could be substantially affected by the
outcome of the proceedings.

Section 6. A judge disqualified as stated above may, instead of

withdrawing from the proceeding, disclose on the records the basis
of disqualification. If based on such disclosure, the parties and
lawyers independently of a judge's participation, all agree in
writing that the reason for the inhibition is immaterial or
unsubstantial, the judge may then participate in the proceeding.
The agreement, signed by all parties and lawyers, shall be
incorporated in the record of the proceedings.

44
 CANON 4. PROPRIETY

• Propriety and the appearance of propriety are essential to the

performance of all the activities of a judge.

Section 1. Judges shall avoid impropriety and the appearance of

impropriety in all of their activities.

Section 2. As a subject of constant public scrutiny, judges must

accept personal restrictions that might be viewed as
burdensome by the ordinary citizen and should do so freely
and willingly. In particular, judges shall conduct
themselves in a way that is consistent with the dignity of
the judicial office.

Section 3. Judges shall, in their personal relations with individual

members of the legal profession who practice regularly in
their court, avoid situations which might reasonably give
rise to the suspicion or appearance of favoritism or
partiality.
45
Section 4. Judges shall not participate in the determination of a case
in which any member of their family represents a litigant
or is associated in any manner with the case.

Section 5. Judges shall not allow the use of their residence by a

member of the legal profession to receive clients of the
latter or of other members of the legal profession.

Section 6. Judges, like any other citizen, are entitled to freedom of

expression, belief, association and assembly, but in
exercising such rights, they shall always conduct
themselves in such a manner as to preserve the dignity of
the judicial office and the impartiality and independence
of the judiciary.

Section 7. Judges shall inform themselves about their personal

fiduciary financial interests and shall make reasonable
efforts to be informed about the financial interests of
members of their family.

46
Section 8. Judges shall not use or lend the prestige of the judicial
office to advance their private interests, or those of a
member of their family or of anyone else, nor shall they
convey or permit others to covey the impression that anyone
is in a special position improperly to influence them in the
performance of judicial duties.

Section 9. Confidential information acquired by judges in their

judicial capacity shall not be used or disclosed by, for any
other purpose related to their judicial duties.

Section 10. Subject to the proper performance of judicial duties,

judges may

(a) Write, lecture, teach, and participate in activities concerning the

law, the legal system, the administration of justice or related
matters;
(b) Appear at a public hearing before an official body concerned with
matters relating to the law, the legal system, the administration
of justice or related matters;
47
(c) Engage in other activities if such activities do not detract from the
dignity of the judicial office or otherwise interfere with the
performance of judicial duties.

Section 11. Judges shall not practice law whilst the holder of judicial
office.

Section 12. Judges may form or join associations of judges or participate in

other organizations representing the interests of judges.

Section 13. Judges and members of their families shall neither ask for, or
accept, any gift, bequest, loan or favor in relation to
anything done or to be done or omitted to be done by him or her
in connection with the performance of judicial duties.

Section 14. Judges shall not knowingly permit court staff of others subject
to their influence, direction or authority, to ask for, or
accept any gift, bequest, loan or favor in relation to anything
done or to be done or omitted to be done in connection with
their duties of functions.

48
Section 15. Subject to law and to any legal requirements of public
disclosure, judges may receive a token gift, award, or
benefit as appropriate to the occasion on which it is made
provided that such gift, award of benefit might not
reasonably be perceived as intended to influence the judge
in the performance of judicial duties or otherwise give
rise to an appearance of partiality.

49
 CANON 5. EQUALITY

• Ensuring equality of treatment to all before the courts is

essential to the due performance of the judicial office.

Section 1. Judges shall be aware of, and understand, diversity in

society and differences arising from various sources,
including but not limited to race, color, sex, religion,
national origin, caste, disability, age, marital status,
sexual orientation, social and economic status and other
like causes.

Section 2. Judges shall not, in the performance of judicial duties, by

words or conduct, manifest bias or prejudice towards any
person or group on irrelevant grounds.

50
Section 3. Judges shall carry out judicial duties with appropriate
consideration for all persons, such as the parties,
witnesses, lawyers, court staff and judicial colleagues,
without differentiation on any irrelevant ground,
immaterial to the proper performance of such duties.

Section 4. Judges shall not knowingly permit court staff or others

subject to his or her influence, direction or control to
differentiate between persons concerned, in a matter
before the judge, on any irrelevant ground.

Section 5. Judges shall require lawyers in proceedings before the

court to refrain from manifesting, by words or conduct,
bias or prejudice based on irrelevant grounds, except such
as are legally relevant to an issue in proceedings and may
be the subject of legitimate advocacy.

51
 CANON 6. COMPETENCE AND DILIGENCE

• Competence and diligence are prerequisites to the due performance

of judicial office.

Section 1. The judicial duties of a judge take precedence over all

other activities.

Section 2. Judges shall devote their professional activity to judicial

duties, which include not only the performance of judicial
functions and responsibilities in court and the making of
decisions, but also other tasks relevant to the judicial
office or the court's operations.

Section 3. Judges shall take reasonable steps to maintain and enhance

their knowledge, skills, and personal qualities necessary
for the proper performance of judicial duties, taking
advantage for this purpose of the training and other
facilities which should be made available, under judicial
control, to judges.
52
Section 4. Judges shall keep themselves informed about the relevant
developments of international law, including international
conventions and other instruments establishing human
rights norms.

Section 5. Judges shall perform all judicial duties, including the

delivery of reserved decisions, efficiently, fairly, and
with reasonable promptness.

Section 6. Judges shall maintain order and decorum in all proceedings

before the court and be patient, dignified, and courteous
in relation to litigants, witnesses, lawyers, and others
with whom the judge deals in an official capacity. Judges
shall require similar conduct of legal representatives,
court staff and others subject to their influence,
direction and control.

Section 7. Judges shall not engage in conduct incompatible with the

diligent discharge of judicial duties.
53
 • DEFINITIONS
• In this Code, unless the context otherwise permits or requires, the
following meanings shall be attributed to the words used:

• “Court staff” includes the personal staff of the judge including

law clerks.
• “Judge” means any person exercising judicial power, however
designated.
• “Judge’s family” includes a judge’s spouse, son, daughter, son-
in-law, daughter-in-law, and any other relative by consanguinity or
affinity within the sixth civil degree, or person who is a
companion or employee of the judge and who lives in the judge’s
household.

54
Requirements “before admission
to the bar” or for “continuous
practice of law”, etc.

55
• The Court ruled that the term “practice of law” implies
customarily or habitually holding oneself out to the public as a
lawyer for compensation as a source of livelihood or in
consideration of his services. The Court further ruled that
holding one’s self out as a lawyer may be shown by acts
indicative of that purpose, such as identifying oneself as
attorney, appearing in court in representation of a client,
or associating oneself as a partner of a law office for the
general practice of law. - Atty. Noe-Lacsaman v. Atty. Busmente,
A.C. No. 7269 [2011]

• Any activity, in and out of court, that requires the application

of law, legal procedure, knowledge, training and experience.
Moreover, we ruled that to engage in the practice of law is to
perform those acts which are characteristics of the
profession; to practice law is to give notice or render any
kind of service, which device or service requires the use
in any degree of legal knowledge or skill. - Query of Atty.
Silverio-Buffe, A.M. No. 08-6-352-RTC
56 [2009]
• The practice of law is not limited to the conduct of cases or
litigation in court; it embraces the preparation of pleadings
and other papers incident to actions and special proceedings,
the management of such actions and proceedings on behalf of
clients before judges and courts, and in addition, conveyancing.

• In general, all advice to clients, and all action taken for them
in matters connected with the law xxx. - Aguirre v. Rana, B. M.
No. 1036. June 10, 2003

Who may practice law?

• Section 1, Rule 138 of the Rules of Court provides:

Who may practice law. – Any person heretofore duly admitted as a
member of the bar, or thereafter admitted as such in accordance
with the provisions of this Rule, and who is in good and regular
standing, is entitled to practice law.

57
 Passing the bar exam is not enough

• A bar candidate does not acquire the right to practice law

simply by passing the bar examinations. The practice of law
is a privilege that can be withheld even from one who has
passed the bar examinations, if the person seeking admission
had practiced law without a license.
• True, respondent here passed the 2000 Bar Examinations and
took the lawyer’s oath. However, it is the signing in the
Roll of Attorneys that finally makes one a full-fledged
lawyer. The fact that respondent passed the bar examinations
is immaterial. Passing the bar is not the only qualification
to become an attorney-at-law. Respondent should know that two
essential requisites for becoming a lawyer still had to be
performed, namely: his lawyer’s oath to be administered by
this Court and his signature in the Roll of Attorneys. –
Aguirre v. Rana, B. M. No. 1036.
58 June 10, 2003
 Signing of the Lawyer’s Oath is not
equivalent to “taking the oath”
• Respondent Abad should know that the circumstances which he has
narrated do not constitute his admission to the Philippine Bar
and the right to practice law thereafter. He should know that two
essential requisites for becoming a lawyer still had to be
performed, namely: his lawyer's oath to be administered by this
Court and his signature in the Roll of Attorneys. (Rule 138, Secs.
17 and 19, Rules of Court.) - Re: Elmo Abad, A. M. No. 139 [1983]

59
 Whether or not a lawyer is entitled to
exemption from payment of his IBP dues
during the time that he was inactive in
the practice of law

• Thus, payment of dues is a necessary consequence of

membership in the IBP, of which no one is exempt. This means
that the compulsory nature of payment of dues subsists for as
long as one’s membership in the IBP remains regardless of
the lack of practice of, or the type of practice, the
member is engaged in.
• There is nothing in the law or rules which allows exemption
from payment of membership dues. At most, as correctly
observed by the IBP, he could have informed the Secretary of the
Integrated Bar of his intention to stay abroad before he left.
In such case, his membership in60 the IBP could have been
terminated and his obligation to pay dues could have been
discontinued. - Letter of Atty. Cecilio Y. Arevalo Jr. B.M.
1370 May 9, 2005
 Is IBP membership fee a form of tax?
• For the court to prescribe dues to be paid by the members does not
mean that the Court is attempting to levy a tax.

• A membership fee in the Bar association is an exaction for

regulation, while tax purpose of a tax is a revenue. If the
judiciary has inherent power to regulate the Bar, it follows that
as an incident to regulation, it may impose a membership fee for
that purpose. It would not be possible to put on an integrated Bar
program without means to defray the expenses. The doctrine of
implied powers necessarily carries with it the power to impose such
exaction. - Letter of Atty. Cecilio Y. Arevalo Jr. B.M. 1370 May 9, 2005

61
 There is no provision under the CPR
which prohibits the unauthorized
practice of law

• CANON 9 - A lawyer shall not, directly or indirectly, assist in

the unauthorized practice of law.

• While a reading of Canon 9 appears to merely prohibit lawyers

from assisting in the unauthorized practice of law, the
unauthorized practice of law by the lawyer himself is
subsumed under this provision, because at the heart of Canon 9
is the lawyer's duty to prevent the unauthorized practice of
law. - Petition to sign in the Roll of Attorneys, Medado, B.M. No. 2540 [2013]

62
 Intent is necessary to be guilty of
unauthorized practice of law

• In several cases, we have ruled that the unauthorized practice of

law by assuming to be an attorney and acting as such without
authority constitutes indirect contempt which is punishable by
fine or imprisonment or both. The liability for the unauthorized
practice of law under Section 3(e), Rule 71 of the Rules of Court
is in the nature of criminal contempt and the acts are punished
because they are an affront to the dignity and authority of the
court, and obstruct the orderly administration of justice. In
determining liability for criminal contempt, well-settled is the
rule that intent is a necessary element, and no one can be
punished unless the evidence makes it clear that he intended
to commit it. - Normatan & Pagayokan v. Balajadia, G.R. No. 169517 2006

63
 Examples of unauthorized
practice of law
• In the cases where we found a party liable for the unauthorized
practice of law, the party was guilty of some overt act like:
1. signing court pleadings on behalf of his client;
2. appearing before court hearings as an attorney;
3. manifesting before the court that he will practice law despite
being previously denied admission to the bar; or
4. deliberately attempting to practice law and
5. holding out himself as an attorney through circulars with full
knowledge that he is not licensed to do so.
- Normatan & Pagayokan v. Balajadia, G.R. No. 169517 2006

64
 Pre-law requirements
• Rule 138 Sec. 6. Pre-Law. - No applicant for admission to the bar
examination shall be admitted unless he presents a certificate that
he has satisfied the Secretary of Education that, before he began
the study of law, he 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 with any of the following
subjects as major or field of concentration: political science,
logic, english, spanish, history and economics.

65
 Violation of Rule 138 section
6
• “[b]y utilizing the school records of his cousin and name-
sake, Juan M. Publico when, in actual fact, petitioner had not
completed Grade VI of his elementary schooling, much less,
First and Second Year High School.”

• For all the foregoing, we find and so hold that respondent

falsified his school records, by making it appear that he
had finished or completed Grade VI elementary and First
and Second Year high school, when in truth and in fact he
had not, thereby violating the provisions of Sections 5 and
6, Rule 127 of the Rules of Court, which require completion
by a bar examinee or candidate of the prescribed courses in
elementary, high, pre-law and law school, prior to his
admission to the practice of law. - In re: Juan Publico,
Petition for Reinstatement in the Roll of Attorneys February
66
20, 1981
 Took the Bar examination without any
college degree
• Complainant and respondent are siblings born to Porferio R.
Caronan, Jr. and Norma A. Caronan. Respondent is the older of the
two, having been born on February 7, 1975, while complainant was
born on August 5, 1976. Both of them completed their secondary
education at the Makati High School where complainant graduated
in 1993 and respondent in 1991. Upon his graduation, complainant
enrolled at the University of Makati where he obtained a degree in
Business Administration in 1997.

• He started working thereafter as a Sales Associate for Philippine

Seven Corporation (PSC), the operator of 7-11 Convenience Stores.
In 2001, he married Myrna G. Tagpis with whom he has two (2)
daughters. Through the years, complainant rose from the ranks
until, in 2009, he was promoted as a Store Manager of the 7-11
Store in Muntinlupa.

67
• Meanwhile, upon graduating from high school, respondent enrolled at
the Pamantasan ng Lungsod ng Maynila (PLM), where he stayed for one
(1) year before transferring to the Philippine Military Academy (PMA)
in 1992. In 1993, he was discharged from the PMA and focused on
helping their father in the family's car rental business. In 1997, he
moved to Nueva Vizcaya with his wife, Rosana, and their three (3)
children. Since then, respondent never went back to school to
earn a college degree.

• In 1999, during a visit to his family in Metro Manila, respondent

told complainant that the former had enrolled in a law school in
Nueva Vizcaya.

• Subsequently, in 2004, their mother informed complainant that

respondent passed the Bar Examinations and that he used complainant's
name and college records from the University of Makati to enroll at
St. Mary's University's College of Law in Bayombong, Nueva Vizcaya
and take the Bar Examinations. Complainant brushed these aside as he
did not anticipate any adverse consequences to him.

68
• In 2006, complainant was able to confirm respondent's use of his
name and identity when he saw the name "Patrick A. Caronan" on the
Certificate of Admission to the Bar displayed at the latter's office
in Taguig City. Nevertheless, complainant did not confront
respondent about it since he was pre-occupied with his job and had a
family to support.

• Sometime in May 2009, however, after his promotion as Store Manager,

complainant was ordered to report to the head office of PSC in
Mandaluyong City where, upon arrival, he was informed that the
National Bureau of Investigation (NBI) was requesting his presence
at its office in Taft Avenue, Manila, in relation to an
investigation involving respondent who, at that point, was using
the name "Atty. Patrick A. Caronan.“

• On the other hand, a fellow church-member had also told him that
respondent who, using the name "Atty. Patrick A. Caronan," almost
victimized his (church-member's) relatives. Complainant also
received a phone call from a certain Mrs. Loyda L. Reyes (Reyes),
who narrated how respondent tricked her into believing that he was
authorized to sell a parcel of land in Taguig City when in fact, he
was not. Further, he learned that respondent was arrested for gun- 69
• Due to the controversies involving respondent's use of the name
"Patrick A. Caronan," complainant developed a fear for his own
safety and security. He also became the subject of conversations
among his colleagues, which eventually forced him to resign from
his job at PSC. Hence, complainant filed the present Complaint-
Affidavit to stop respondent's alleged use of the former's
name and identity, and illegal practice of law.

• Here, respondent exhibited his dishonesty and utter lack of

moral fitness to be a member of the Bar when he assumed the name,
identity, and school records of his own brother and dragged the
latter into controversies which eventually caused him to fear for
his safety and to resign from PSC where he had been working for
years. Good moral character is essential in those who would be
lawyers. This is imperative in the nature of the office of a
lawyer, the trust relation which exists between him and his client,
as well as between him and the court.

70
• Finally, respondent made a mockery of the legal profession by
pretending to have the necessary qualifications to be a
lawyer. He also tarnished the image of lawyers with his alleged
unscrupulous activities, which resulted in the filing of several
criminal cases against him. Certainly, respondent and his acts
do not have a place in the legal profession where one of the
primary duties of its members is to uphold its integrity and
dignity. - Patrick A. Caronan v. Richard A. Caronan a.k.a.
“Atty. Patrick A. Caronan”, July 12, 2016, A.C. No. 11316

71
 Grossly immoral act

• A grossly immoral act is one that is so corrupt and false as to

constitute a criminal act or so unprincipled or disgraceful as to
be reprehensible to a high degree. It is a willful, flagrant, or
shameless act which shows a moral indifference to the opinion of
respectable members of the community. - Figueroa v. Barranco, Jr. SBC Case
No. 519 1997

72
 Good moral character versus Good
reputation
• Good moral character is what a person really is, as distinguished
from good reputation or from the opinion generally entertained of
him, the estimate in which he is held by the public in the place
where he is known. Moral character is not a subjective term but one
which corresponds to objective reality. The standard of personal
and professional integrity is not satisfied by such conduct as it
merely enables a person to escape the penalty of criminal law. Good
moral character includes at least common honesty.- In the Matter of
the Disqualification of Bar Examinee Haron S. Meling in the 2002
Bar Examinations, B.M. No. 1154, June 8, 2004

73
 Applicant should be ready to present
evidence of good moral character

• When applicants seek admission to the bar, they have placed

their character at issue. Therefore, the applicant bears
the burden of producing information proving good moral
character. - Mitchell Simon , Nick Smith and Nicole Negowetti

74
 Is breach of promise to marry gross
immorality?

 Respondent was prevented from taking the lawyer’s oath in

1971 because of the charges of gross immorality made by
complainant.  To recapitulate, respondent bore an illegitimate
child with his sweetheart, Patricia Figueroa, who also claims
that he did not fulfill his promise to marry her after he
passes the bar examinations.
 We find that these facts do not constitute gross immorality
warranting the permanent exclusion of respondent from the
legal profession.  His engaging in premarital sexual
relations with complainant and promises to marry suggests
a doubtful moral character on his part but the same does
not constitute grossly immoral conduct.  The Court has
held that to justify suspension
75
or disbarment the act
complained of must not only be immoral, but grossly immoral. -
 Figueroa v. Barranco, Jr. SBC Case No. 519 1997
 Good moral character v. Rehabilitation
• When an applicant for admission to the bar has committed
first-degree murder, a crime that demonstrates an extreme
lack of good moral character, he must make an extraordinary
showing of present good moral character to establish that he
or she is qualified to be admitted to the practice of law
xxx.
• To show rehabilitation, [one] must show that he has accepted
responsibility for his criminal conduct.
• Rehabilitation is a necessary, but not sufficient, ingredient
of good moral character of bar applicant who had been
convicted of a serious felony; applicant must establish his
current good moral character, independent of and in
addition to, evidence of rehabilitation. - In re: James
Joseph Hamm 123 P.3d 652 [2005]
76
 Rehabilitation is not enough

 Even assuming that [one] has established rehabilitation, showing

rehabilitation from criminal conduct does not, in itself,
establish good moral character.

 Rehabilitation is a necessary, but not sufficient, ingredient of

good moral character. An applicant must establish his current
good moral character, independent of and in addition to,
evidence of rehabilitation.

 Even assuming that he has established rehabilitation, showing

rehabilitation from criminal conduct does not, in itself,
establish good moral character. - In re: James Joseph Hamm 123
P.3d 652 [2005] 77
 What is an“upright character”?

• “Upright character” is something more than an absence of bad

character. It means that he [an applicant for admission] must have
conducted himself as a man of upright character ordinarily would,
should, or does. Such character expresses itself not in negatives
nor in following the line of least resistance, but quite often in
the will to do the unpleasant thing if it is right, and the
resolve not to do the pleasant thing if it is wrong. - In re:
James Joseph Hamm 123 P.3d 652 [2005]

78
 Past and Present moral character
• We also agree with Hamm that, under the Rule applicable to
Hamm's application, our concern must be with the applicant's
present moral character. In Greenberg, we explained that "it
is [the applicant's] moral character as of now with which we are
concerned." xxx Past misconduct, however, is not irrelevant.
Rather, this Court must determine what past bad acts reveal
about an applicant's current character. - In re: James
Joseph Hamm 123 P.3d 652 [2005]

Effect of prior criminal conviction

• “Although a prior conviction is not conclusive of a lack of
present good moral character, ... it adds to his burden of
establishing present good character by requiring convincing
proof of his full and complete rehabilitation.”- In re: James
Joseph Hamm 123 P.3d 652 [2005]

79
 Within the context of legal ethics is
homicide a crime involving moral turpitude?
• This is not to say that all convictions of the crime of homicide do
not involve moral turpitude. Homicide may or may not involve moral
turpitude depending on the degree of the crime. Moral turpitude is not
involved in every criminal act and is not shown by every known and
intentional violation of statute, but whether any particular conviction
involves moral turpitude may be a question of fact and frequently
depends on all the surrounding circumstances.

• While . . . generally but not always, crimes mala in se involve moral

turpitude, while crimes mala prohibita do not, it, cannot always be
ascertained whether moral turpitude does or does not exist by
classifying a crime as malum in se or as malum prohibitum , since there
are crimes which are mala in se and yet but rarely involve moral turpitude
and there are crimes which involve moral turpitude and are mala prohibita
only. It follows therefore, that moral turpitude is somewhat a vague
and indefinite term, the meaning of which must be left to the process
of judicial inclusion or exclusion as the cases are reached .

80
• As to what crime involves moral turpitude, is for the Supreme
Court to determine. – IRRI v. NLRC, G.R. No. 97239 May 12, 1993

Is poverty of litigant a justification to engage in illegal

practice of law?

• The defense of respondent that "his participation (sic) for

defendants' cause was gratuitous as they could not engage the
services of counsel by reason of poverty and the absence of
one in the locality" cannot, even if true, carry the day for him,
- Zeta v. Malinao, A.M. No. P-220, December 20, 1978

81
 Can a lawyer-detainee practice law?

• As a matter of law, when a person indicted for an offense is

arrested, he is deemed placed under the custody of the law.
He is placed in actual restraint of liberty in jail so that
he may be bound to answer for the commission of the offense.
He must be detained in jail during the pendency of the case
against him, unless he is authorized by the court to be
released on bail or on recognizance. Let it be stressed
that all prisoners whether under preventive detention or
serving final sentence can not practice their profession
nor engage in any business or occupation, or hold
office, elective or appointive, while in detention. This
is a necessary consequence of arrest and detention. – PP
v. Hon. Maceda and Javellana G.R. No. 89591-96
January 24, 2000

82
 What is the effect of non-payment of
IBP dues?
• Rule 139-A, Section 10 which provides that "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.“ - Santos, Jr.
V. Atty. Llamas A.C No. 4749 [2000]

83
 Misrepresenting to the public and the
courts that he had paid his IBP dues
 By indicating "IBP-Rizal 259060" in his pleadings and thereby
misrepresenting to the public and the courts that he had
paid his IBP dues to the Rizal Chapter, respondent is
guilty of violating the Code of Professional Responsibility
which provides:
 Rule 1.01 - A lawyer shall not engage in unlawful, dishonest,
immoral or deceitful conduct.
 CANON 7 - A LAWYER SHALL AT ALL TIMES UPHOLD THE INTEGRITY
AND DIGNITY OF THE LEGAL PROFESSION, AND SUPPORT THE
ACTIVITIES OF THE INTEGRATED BAR.
 CANON 10 - A LAWYER OWES CANDOR, FAIRNESS AND GOOD FAITH TO
THE COURT.
 Rule 10.01 - A lawyer shall not do any falsehood,
nor consent to the doing of any
84 court; nor shall he mislead
or allow the court to be misled by any artifice. - Santos,
Jr. V. Atty. Llamas A.C No. 4749 [2000]
 Is a “senior citizen” lawyer exempted
from payment of ITR also exempted from
payment of IBP dues?
• While it is true that R.A. No. 7432, §4 grants senior
citizens "exemption from the payment of individual income
taxes: provided, that their annual taxable income does not
exceed the poverty level as determined by the National
Economic and Development Authority (NEDA) for that year," the
exemption does not include payment of membership or
association dues. - Santos, Jr. V. Atty. Llamas A.C No. 4749
[2000]

85
 Does giving up Philippine citizenship
automatically result into lost of membership in
the Philippine bar?
• The Constitution provides that the practice of all
professions in the Philippines shall be limited to
Filipino citizens save in cases prescribed by law. Since
Filipino citizenship is a requirement for admission to the
bar, loss thereof terminates membership in the
Philippine bar and, consequently, the privilege to engage
in the practice of law. In other words, the loss of
Filipino citizenship ipso jure terminates the privilege
to practice law in the Philippines. The practice of law
is a privilege denied to foreigners. - Petition for leave
to resume practice of law,Dacanay B.M. No. 1678 December
17, 2007

86
May a lawyer who has lost his Filipino citizenship
still practice law in the Philippines?

• The Constitution provides that the practice of all professions in the

Philippines shall be limited to Filipino citizens save in cases
prescribed by law. Since Filipino citizenship is a requirement for
admission to the bar, loss thereof terminates membership in the
Philippine bar and, consequently, the privilege to engage in the
practice of law. In other words, the loss of Filipino citizenship ipso
jure terminates the privilege to practice law in the Philippines. The
practice of law is a privilege denied to foreigners. - Petition for
leave to resume practice of law,Dacanay B.M. No. 1678 December 17, 2007
Effect of reacquisition of Filipino citizenship
• A Filipino lawyer who becomes a citizen of another country and later
re-acquires his Philippine citizenship under R.A. No. 9225, remains to
be a member of the Philippine Bar. – Petition to reacquire the
privilege to practice law in the Philippines, Muneses, B.M. 2112 [2012]
87
Requirements before one can resume practice of
law after reacquiring Filipino citizenship

• Before a lawyer who reacquires Filipino citizenship pursuant

to RA 9225 can resume his law practice, he must first secure
from this Court the authority to do so, conditioned on:
(a) the updating and payment in full of the annual membership
dues in the IBP;
(b) the payment of professional tax;
(c) the completion of at least 36 credit hours of mandatory
continuing legal education; this is specially significant to
refresh the applicant/petitioner’s knowledge of Philippine
laws and update him of legal developments and
(d) the retaking of the lawyer’s oath which will not only
remind him of his duties and responsibilities as a lawyer and
as an officer of the Court, but also renew his pledge to
maintain allegiance to the Republic of the Philippines. –
Petition for leave to resume practice of law, Dacanay B.M. No.
1678 December 17, 2007
 What is the purpose for requiring the
retaking of Lawyer’s Oath?
• The retaking of the lawyer’s oath which will not only remind
him of his duties and responsibilities as a lawyer and as an
officer of the Court, but also renew his pledge to maintain
allegiance to the Republic of the Philippines.

Citizenship requirement in order to practice law in the

Philippines
• Constitution Art. 12 Section 14. xxx. The practice of all
professions in the Philippines shall be limited to Filipino
citizens, save in cases prescribed by law.

89
 Requirements for all applicants for
admission to the bar
• Section 2, Rule 138 (Attorneys and Admission to Bar) of the Rules
of Court:
Requirements for all applicants for admission to the bar. – Every
applicant for admission as a member of the bar must be a citizen of
the Philippines, at least twenty-one years of age, of good moral
character, and a resident of the Philippines; and must produce
before the Supreme Court satisfactory evidence of good moral
character, and that no charges against him, involving moral
turpitude, have been filed or are pending in any court in the
Philippines.

90
 Continuing requirements to practice law
• The second requisite for the practice of law ― membership in good
standing ― is a continuing requirement. This means continued
membership and, concomitantly, payment of annual membership dues in
the IBP; payment of the annual professional tax; compliance with
the mandatory continuing legal education requirement; faithful
observance of the rules and ethics of the legal profession and
being continually subject to judicial disciplinary control.
-Petition for leave to resume practice of law, Dacanay B.M. No.
1678 December 17, 2007

Phases of admission to the bar

• Moreover, admission to the bar involves various phases such as
furnishing satisfactory proof of educational, moral and other
qualifications; passing the bar examinations; taking the lawyer’s
oath and signing the roll of attorneys and receiving from the clerk
of court of this Court a certificate
91 of the license to practice. -
Petition for leave to resume practice of law, Dacanay B.M. No. 1678 December 17, 2007
 Can a successful examinee take his
oath before any person allowed by law
to administer an oath?
• Rule 138 Sec. 17. Admission and oath of successful applicants. -
An applicant who has passed the required examination, or has
been otherwise found to be entitled to admission to the bar,
shall take and subscribe before the Supreme Court the
corresponding oath of office.

• Inasmuch as the oath as lawyer is a prerequisite to the practice

of law and may be taken only, before the Supreme Court, by
those authorized by the latter to engage in such practice xxx. –
PP v. De Luna, et. al. G.R. Nos. L-10236-48. January 31, 1958

92
 Section 2. Section 41 of the
Administrative Code of 1987 is hereby
amended to read as follows
Sec. 41. Officers Authorized to Administer Oath. - The following
officers have general authority to administer oaths:
• President;
• Vice-President;
• Members and Secretaries of both Houses of the Congress;
• Members of the Judiciary;
• Secretaries of Departments;
• provincial governors and lieutenant-governors;
• city mayors;
• municipal mayors;
• bureau directors;

93
• regional directors;
• clerks of courts;
• registrars of deeds;
• other civilian officers in the public service of the government of
the Philippines whose appointments are vested in the President and
are subject to confirmation by the Commission on Appointments;
• all other constitutional officers;
• and notaries public."

94
 Duties of Attorneys
• Rule 138 section 20 - It is the duty of an attorney:
(a) To maintain allegiance to the Republic of the Philippines
and to support the Constitution and obey the laws of the
Philippines;
(b) To observe and maintain the respect due to the courts of
justice and judicial officers;
(c) To counsel or maintain such actions or proceedings only as
appear to him to be just, and such defenses only as he
believes to be honestly debatable under the law;
(d) To employ, for the purpose of maintaining the causes
confided to him, such means only as are consistent with truth
and honor, and never seek to mislead the judge or any
judicial officer by an artifice or false statement of fact or
law;

95
(e) To maintain inviolate the confidence, and at every peril to
himself, to preserve the secrets of his client, and to accept no
compensation in connection with his client's business except
from him or with his knowledge and approval;
(f) To abstain from all offensive personality and to advance no
fact prejudicial to the honor or reputation of a party or
witness, unless required by the justice of the cause with which
he is charged;
(g) Not to encourage either the commencement or the continuance of
an action or proceeding, or delay any man's cause, from any
corrupt motive or interest;
(h) Never to reject, for any consideration personal to himself, the
cause of the defenseless or oppressed;
(i) In the defense of a person accused of crime, by all fair and
honorable means, regardless of his personal opinion as to the
guilt of the accused, to present every defense that the law
permits, to the end that no person may be deprived of life or
liberty, but by due process of law.

96
 What is a lawyer’s proof of
authority to practice of law?

• Rule 138 Sec. 18. Certificate. - The Supreme Court shall

thereupon admit the applicant as a member of the bar for all
the courts of the Philippines, and shall direct an order to
be entered to that effect upon its records, and that a
certificate of such record be given to him by the clerk of
court, which certificate shall be his authority to
practice.

97
 Authority to appear in behalf
of a client
• Sec. 21. Authority of attorney to appear. - An attorney is
presumed to be properly authorized to represent any cause
in which he appears, and no written “power of attorney”
is required to authorize him to appear in court for his
client, but the presiding judge may, on motion of either
party and on reasonable grounds therefor being shown, require
any attorney who assumes the right to appear in a case to
produce or prove the authority under which he appears,
and to disclose, whenever pertinent to any issue, the name
of the person who employed him, and may thereupon make such
order as justice requires. An attorney wilfully appearing in
court for a person without being employed, unless by leave
of the court, may be punished for contempt as an officer of
98
the court who has misbehaved in his official transactions.
 Presumption in favor of the counsel’s
authority to appear
• The presumption in favor of the counsels authority to appear in
behalf of a client is a strong one. A lawyer is not even required
to present a written authorization from the client. In fact, the
absence of a formal notice of entry of appearance will not
invalidate the acts performed by the counsel in his clients name.
However, the court, on its own initiative or on motion of the other
party require a lawyer to adduce authorization from the client. –
LBP v. Pamintuan Development, G.R. no. 16788, October 25, 2005

99
 Failure to sign in the
Roll of Attorneys
• Petitioner did not sign in the Roll of Attorneys for 32 years. What
he had signed at the entrance of the PICC was probably just an
attendance record.

• As Medado is not yet a full-fledged lawyer, we cannot suspend him

from the practice of law. However, we see it fit to impose upon him
a penalty akin to suspension by allowing him to sign in the Roll
of Attorneys one ( 1) year after receipt of this Resolution. For
his transgression of the prohibition against the unauthorized
practice of law, we likewise see it fit to fine him in the amount
of P32,000. – Petition to sign in the Roll of Attorneys, Medado,
B.M. No. 2540 [2013]

100
Certificate of Membership & Certificate of
Membership in Good Standing in IBP

• Certificate of Membership in the Integrated Bar of the

Philippines as well as a Certificate of Membership in
Good Standing with the Quezon City Chapter of the
Integrated Bar of the Philippines do not constitute his
admission to the Philippine Bar and the right to
practice law thereafter. - Re: Elmo Abad, A. M. No. 139
[1983]

101
 Requirements after flunking
the bar 3 times
• Sec. 16. Failing candidates to take review course. - Candidates who
have failed the bar examinations for three times shall be
disqualified from taking another examination unless they show to
the satisfaction of the court that they have enrolled in and
passed regular fourth year review classes as well as attended a
pre-bar review course in a recognized law school.

The professors of the individual review subjects attended by the

candidates under this rule shall certify under oath that the
candidates have regularly attended classes and passed the subjects
under the same conditions as ordinary students and the ratings
obtained by them in the particular subject.

102
 Requirements after flunking
the bar 3 times
• Enrollment and completion of pre-bar review course is an
additional requirement under Rule 138 of the Rules of Court for
those who failed the bar examinations for three (3) or more times.
- In re: Purisima, B.M. Nos. 979 and 986 [2002]

103
 A “Counselor” is not an “Attorney”

• The title of "attorney" is reserved to those who, having obtained

the necessary degree in the study of law and successfully taken the
Bar Examinations, have been admitted to the Integrated Bar of the
Philippines and remain members thereof in good standing; and it is
they only who are authorized to practice law in this jurisdiction.
• Alauya says he does not wish to use the title, "counsellor" or
"counsellor-at-law," because in his region, there are pejorative
connotations to the term, or it is confusingly similar to that
given to local legislators. The ratiocination, valid or not, is of
no moment. His disinclination to use the title of "counsellor" does
not warrant his use of the title of attorney.
• His disinclination to use the title of "counselor" does not warrant
his use of the title of attorney. - Alawi v. Alauya, A.M. SDC-97-2-
P. February 24, 1997
 Prohibited acts of an examinee

• Rule 138 Sec. 12. Committee of examiners. - Examinations shall be

conducted by a committee of bar examiners to be appointed by the
Supreme Court. This committee shall be composed of a Justice of the
Supreme Court, who shall act as chairman, and who shall be designated
by the court to serve for one year, and eight members of the bar of
the Philippines, who shall hold office for a period of one year. The
names of the members of this committee shall be published in each
volume of the official reports.
• Rule 138 Sec. 13. Disciplinary measures. - No candidate shall
endeavor to influence any member of the committee, and during
examination the candidates shall not communicate with each other
nor shall they give or receive any assistance. The candidate who
violates this provision, or any other provision of this rule, shall
be barred from the examination, and the same to count as a failure
against him, and further disciplinary action, including permanent
disqualification, may be taken in the discretion of the court.
 Can an “indefinite suspension” from the
practice of law prohibit a lawyer from
filing a citizen or taxpayer suit?
• Petitioner Alan F. Paguia (petitioner), as citizen and taxpayer,
filed this original action for the writ of certiorari to invalidate
President Gloria Macapagal-Arroyo’s nomination of respondent
former Chief Justice Hilario G. Davide, Jr. (respondent Davide) as
Permanent Representative to the United Nations (UN) for violation
of Section 23 of Republic Act No. 7157 (RA 7157), the Philippine
Foreign Service Act of 1991.
• In their separate Comments, respondent Davide, the Office of the
President, and the Secretary of Foreign Affairs (respondents) raise
threshold issues against the petition. First, they question
petitioner’s standing to bring this suit because of his
indefinite suspension from the practice of law.
• An incapacity to bring legal actions peculiar to petitioner also
obtains. Petitioner’s suspension from the practice of law bars him
from performing “any activity, in or out of court, which requires
the application of law, legal procedure, knowledge, training and
experience.” Certainly, preparing a petition raising carefully
crafted arguments on equal protection grounds and employing
highly legalistic rules of statutory construction to parse
Section 23 of RA 7157 falls within the proscribed conduct. -
Paguia v. Office of the President, G.R. No. 176278 [2010]

107
 RULE 7
EXEMPTIONS
Section 1. Parties exempted from the MCLE
B.M. No. 850 August 22, 2000

• The following members of the Bar are exempt from the MCLE requirement:
(a) The President and the Vice President of the Philippines, and the
Secretaries and Undersecretaries of Executives Departments;
(b) Senators and Members of the House of Representatives;
(c) The Chief Justice and Associate Justices of the Supreme Court,
incumbent and retired members of the judiciary, incumbent members
of the Judicial and Bar Council and incumbent court lawyers covered by
the Philippine Judicial Academy program of continuing judicial
education;

108
(d) The Chief State Counsel, Chief State Prosecutor and Assistant
Secretaries of the Department of Justice;
(e) The Solicitor General and the Assistant Solicitor General;
(f) The Government Corporate Counsel, Deputy and Assistant Government
Corporate Counsel;
(g) The Chairmen and Members of the Constitutional Commissions;
(h) The Ombudsman, the Overall Deputy Ombudsman, the Deputy Ombudsmen
and the Special Prosecutor of the Office of the Ombudsman;
(i) Heads of government agencies exercising quasi-judicial functions;
(j) Incumbent deans, bar reviews and professors of law who have
teaching experience for at least 10 years accredited law
schools;
(k) The Chancellor, Vice-Chancellor and members of the Corps of
Professors and Professorial Lectures of the Philippine Judicial
Academy; and
(l) Governors and Mayors.

109
• Section 2. Other parties exempted from the MCLE
The following Members of the Bar are likewise exempt:
(a) Those who are not in law practice, private or public.
(b) Those who have retired from law practice with the approval
of the IBP Board of Governors.

• Section 3. Good cause for exemption from or modification of

requirement

A member may file a verified request setting forth good cause for
exemption (such as physical disability, illness, post graduate
study abroad, proven expertise in law, etc.) from compliance with
or modification of any of the requirements, including an extension
of time for compliance, in accordance with a procedure to be
established by the MCLE Committee.

110
• Section 4. Change of status
The compliance period shall begin on the first day of the month in
which a member ceases to be exempt under Sections 1, 2, or 3 of this
Rule and shall end on the same day as that of all other members in the
same Compliance Group.
• Section 5. Proof of exemption
Applications for exemption from or modification of the MCLE
requirement shall be under oath and supported by documents.

111
Good cause for exemption from (MCLE) or
modification of requirement B.M. 850

• Rule 7 Section 3. Good cause for exemption from or

modification of requirement
• A member may file a verified request setting forth good
cause for exemption (such as physical disability,
illness, post graduate study abroad, proven expertise in
law, etc.) from compliance with or modification of any of
the requirements, including an extension of time for
compliance, in accordance with a procedure to be
established by the MCLE Committee.

112
 Whether respondent is administratively
liable for his failure to comply with the
MCLE requirements.

• Section 12(5) of the MCLE Implementing Regulations provides:

• x x x x
(5) Any other act or omission analogous to any of the foregoing or intended
to circumvent or evade compliance with the MCLE requirements. A member
failing to comply with the continuing legal education requirement
will receive a Non-Compliance Notice stating his specific deficiency
and will be given sixty (60) days from the receipt of the notification to
explain the deficiency or otherwise show compliance with the
requirements. Such notice shall be written in capital letters as follows:
YOUR FAILURE TO PROVIDE ADEQUATE JUSTIFICATION FOR NON-COMPLIANCE OR
PROOF OF COMPLIANCE WITH THE MCLE REQUIREMENT WITHIN 60 DAYS FROM RECEIPT
OF THIS NOTICE SHALL BE A CAUSE FOR LISTING YOU AS A DELINQUENT
MEMBER AND SHALL NOT BE PERMITTED TO PRACTICE LAW UNTIL SUCH TIME AS
ADEQUATE PROOF OF COMPLIANCE IS RECEIVED BY THE MCLE COMMITTEE.

113
• The Member may use the 60-day period to complete his compliance
with the MCLE requirement. Credit units earned during this period
may only be counted toward compliance with the prior period
requirement unless units in excess of the requirement are earned in
which case the excess may be counted toward meeting the current
compliance period requirement.
• A member who is in non-compliance at the end of the compliance
period shall pay a non-compliance fee of P1,000.00 and shall
be listed as a delinquent member of the IBP by the IBP Board
of Governors upon the recommendation of the MCLE Committee , in
which case Rule 139-A of the Rules of Court shall apply.
• Rule 139-A
• 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.

114
• In addition, his listing as a delinquent member of the IBP is
also akin to suspension because he shall not be permitted to
practice law until such time as he submits proof of full
compliance to the IBP Board of Governors, and the IBP Board of
Governors has notified the MCLE Committee of his reinstatement,
under Section 14 of the MCLE Implementing Regulations. Hence, we
deem it proper to declare respondent as a delinquent member of
the IBP and to suspend him from the practice of law for six
months or until he has fully complied with the requirements of
the MCLE for the First, Second, Third, and Fourth Compliance
Periods, whichever is later, and he has fully paid the required
non-compliance and reinstatement fees. - Atty. Samuel B. Amado v.
Atty. Homobono A. Adaza, A.C. No. 9834, August 26, 2015
• With regard to Orlando’s alleged violation of BM No. 1922, the
Court agrees with the IBP that his failure to disclose the
required information for MCLE compliance in the complaint for
damages he had filed against his brother Marcelo is not a ground
for disbarment. At most, his violation shall only be cause for
the dismissal of the complaint as well as the expunction thereof
from the records. – Maximo Doble III v. Atty. Orlando 0. Ailes,
A.C. No. 10628, July 01, 2015 115
 Failure to disclose MCLE information in pleadings
OCA Circular no. 79-2014

• In the Resolution of the Court En Banc dated January 14, 2014 in

the above-cited administrative matter, the Court RESOLVED, upon the
recommendation of the MCLE Governing Board, to:
(a)AMEND the June 3, 2008 resolution by repealing the phrase “Failure
to disclose the required information would cause the dismissal of
the case and the expunction of the pleadings from the records” and
replacing it with “Failure to disclose the required
information would subject the counsel to appropriate penalty
and disciplinary action”; and
(b) PRESCRIBE the following rules for non-disclosure of current MCLE
compliance/exemption number in the pleadings:
(i) The lawyer shall be imposed a fine of P2,000.00 for the first
offense, P3,000.00 for the second offense and P4,000.00 for the
third offense;

116
(ii) In addition to the fine, counsel may be listed as a
delinquent member of the Bar pursuant to Section 2, Rule 13
of Bar Matter No. 850 and its implementing rules and
regulations; and
(iii) The non-compliant lawyer shall be discharged from the case
and the client/s shall be allowed to secure the services of a
new counsel with the concomitant right to demand the return
of fees already paid to the non-compliant lawyer.
• This revokes OCA Circular No. 66-2008 dated July 22, 2008, and
any prior circular from the Office of the Court Administrator on
this matter which is contrary to the foregoing is hereby
superseded.
• For your information, guidance and strict compliance. 26 May
2014

117
 Written entry of appearance and MCLE compliance
SC Resolution February 17, 2015

• "B.M. No. 850 (Re: Rules on Mandatory Continuing Legal Education

for Active Members of the Integrated Bar of the Philippines).Acting
on the Letter dated January 13, 2015 of Hon. Bernardo P. Pardo,
Chairperson, MCLE Governing Board, submitting for the Court's
approval the MCLE Governing Board Resolution No. 007-2014, the
Court Resolved to REQUIRE all members of the Integrated Bar of the
Philippines to file a written entry of appearance indicating
their MCLE exemption or compliance number for the current or
immediately preceding compliance period and date of issuance
thereof before appearing as counsel or engaging in oral
argument in open court or before a quasi-judicial body.

118
• However, counsels who affixed their signatures in - their pleadings
and indicated their MCLE exemption or compliance number in their
pleadings need not file a separate entry of appearance.
Henceforth, all counsels, including partners of law firms whose
names appear in the said pleadings, shall also indicate their MCLE
exemption or compliance number.
• This resolution shall take effect on March 1, 2015 following its
publication in a newspaper of general circulation."

119
 Attorney’s fees
and Compensation
for legal services
 CANON 20 - A LAWYER SHALL CHARGE ONLY
FAIR AND REASONABLE FEES.
• Rule 20.01 - A lawyer shall be guided by the following factors in
determining his fees:

(a) the time spent and the extent of the service rendered or required;
(b) the novelty and difficulty of the questions involved;
(c) The importance of the subject matter;
(d) The skill demanded;
(e) The probability of losing other employment as a result of
acceptance of the proffered case;
(f) The customary charges for similar services and the schedule of
fees of the IBP chapter to which he belongs;
(g) The amount involved in the controversy and the benefits
resulting to the client from the service;
(h) The contingency or certainty of compensation;

121
(i) The character of the employment, whether occasional or
established; and
(j) The professional standing of the lawyer.

• Rule 20.02 - A lawyer shall, in case of referral, with the consent

of the client, be entitled to a division of fees in proportion
to the work performed and responsibility assumed.

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

• Rule 20.04 - A lawyer shall avoid controversies with clients

concerning his compensation and shall resort to judicial action
only to prevent imposition, injustice or fraud.

122
 Bases for just compensation

• With his capital consisting of his brains and with his skill
acquired at tremendous cost not only in money but in
expenditure of time and energy, he is entitled to the protection
of any judicial tribunal against any attempt on the part of his
client to escape payment of his just compensation.– Masmud v.
NLRC, G.R. No. 183385, February 13, 2009

“Fee” v. “Lien”
• They are two different matters.
• It is axiomatic, of course, that [lawyer] must show that he is or will
become entitled to a fee before he is entitled to a lien. - The
Industry Network System, Inc. v. Armstrong World Industries, Inc.
54 F.3d 150 (1995)

123
 Professional fee is subject to court’s
regulatory power
• Upon taking his attorney’s oath as an officer of the court, a
lawyer submits himself to the authority of the courts to
regulate his right to charge professional fees. –Rayos v. Atty.
Hernandez, G.R. No. 169079, February 12, 2007

Reasons why lawyer’s compensation is subject to the supervision

of the court
• It follows that a lawyer’s compensation for professional services
rendered is subject to the supervision of the court, not just to
guarantee that the fees he charges and receives remain reasonable
and commensurate with the services rendered, but also to maintain
the dignity and integrity of the legal profession to which he
belongs. – Rayos v. Atty. Hernandez, G.R. No. 169079, February 12,
2007

124
Collection suit should be the last resort

• Rule 20.4 of the Code of Professional Responsibility advises

lawyers to avoid controversies with clients concerning their
compensation and to resort to judicial action only to prevent
imposition, injustice or fraud. Suits to collect fees should be
avoided and should be filed only when circumstances force
lawyers to resort to it. - Pineda v. Atty. De Jesus, et. al. G.R.
No. 155224 August 23, 2006

125
 Rule 138
• Sec. 24. Compensation of attorneys; agreement as to fees. - An
attorney shall be entitled to have and recover from his client no
more than a reasonable compensation for his services, with a
view:
1) to the importance of the subject matter of the controversy,
2) the extent of the services rendered, and
3) the professional standing of the attorney.
• No court shall be bound by the opinion of attorneys as expert
witnesses as to the proper compensation, but may disregard such
testimony and base its conclusion on its own professional
knowledge. A written contract for services shall control the
amount to be paid therefor unless found by the court to be
unconscionable or unreasonable.

• Section 25, Rule 138 of the Rules of Court:

SEC. 25. Unlawful retention of client’s funds; contempt — When an
attorney unjustly retains in his hands money of his client after
it has been demanded he may be punished for contempt as an officer
of the Court who has misbehaved in his official transactions; but
proceedings under this section shall not be a bar to a criminal 126
 Rule on division of legal fees

• Rule 9.02 - A lawyer shall not divide or stipulate to divide a

fee for legal services with persons not licensed to practice law,
except:
• (a) Where 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; or
• (b) Where a lawyer undertakes to complete unfinished legal business
of a deceased lawyer; or
• (c) Where a lawyer or law firm includes non-lawyer employees in a
retirement plan even if the plan is based in whole or in part, on a
profit sharing agreement.

127
 CANON 16 - A LAWYER SHALL HOLD IN TRUST
ALL MONEYS AND PROPERTIES OF HIS CLIENT
THAT MAY COME INTO HIS PROFESSION.

• Rule 16.01 - A lawyer shall account for all money or property

collected or received for or from the client.
• Rule 16.02 - A lawyer shall keep the funds of each client separate
and apart from his own and those of others kept by him.
• Rule 16.03 - A lawyer shall deliver the funds and property of his
client when due or upon demand. However, he shall have a lien over
the funds and may apply so much thereof as may be necessary to
satisfy his lawful fees and disbursements, giving notice promptly
thereafter to his client. He shall also have a lien to the same
extent on all judgments and executions he has secured for his
client as provided for in the Rules of Court.

128
• Rule 16.04 - A lawyer shall not borrow money from his client unless
the client's interest are fully protected by the nature of the case
or by independent advice. Neither shall a lawyer lend money to a
client except, when in the interest of justice, he has to advance
necessary expenses in a legal matter he is handling for the client.

• This rule is intended to prevent the lawyer from taking

advantage of his influence over the client. – Junio v. Atty.
Grupo, A.C. No. 5020, December 18, 2001

129
Non-payment of loan is a violation of PCR
not
misappropriation or embezzlement
• Respondent’s liability is thus not for misappropriation or
embezzlement but for violation of Rule 16.04 of the Code of
Professional Responsibility which forbids lawyers from borrowing
money from their clients unless the latter’s interests are
protected by the nature of the case or by independent advice.
In this case, respondent’s liability is compounded by the fact
that not only did he not give any security for the payment of
the amount loaned to him but that he has also refused to pay
the said amount. His claim that he could not pay the loan
“because circumstances . . . did not allow it” and that, because
of the passage of time, “he somehow forgot about his obligation”
only underscores his blatant disregard of his obligation which
reflects on his honesty and candor.

130
 Whether or not an attorney who was engaged
on a contingent fee basis may, in order to
collect his fees, prosecute an appeal
despite his client's refusal to appeal the
decision of the trial court.
• A practicing attorney, entered into a written agreement with the
private respondent to appear as her counsel in a petition for
probate of the holographic will. Under the will, a piece of real
property at Sales Street, Quiapo, Manila, was bequeathed to private
respondent. It was agreed that the attorney’s contigent fee would
be thirty-five per cent (35%) of the property that private
respondent may receive upon the probate of the will.
• The payment of his fees is contingent and dependent upon the
successful probate of the holographic will. Since the petition
for probate was dismissed by the lower court, the contingency did
not occur. Attorney Leviste is not entitled to his fee. - Leviste
v. CA, G.R. No. L-29184 [1989]

131
Is the right of a client to enter into a compromise
agreement without the consent of his lawyer
defeated by a contrary written contract ?

• It appears from the record that on July 31, 1921, the respondents
by means of a written contract, retained the petitioner to
represent them as their lawyer. The contract fixed the petitioner's
fee at P200 in advance with an additional contigent fee of P1,300.
It was also provided in the contract that respondent should not
compromise the claim against the defendant in the case without
express consent of his lawyer.

• Through the sole effort of respondents the case was dismissed

without notice to their counsel.

132
 Right of a client to compromise suit
• The client has also an undoubted right to compromise a suit without the
intervention of his lawyer.

• Though there is a valid agreement for the payment to the attorney of a

large proportion of the sum recovered in case of success this does not
give the attorney such an interest in the cause of action that it
prevents plaintiff from compromising the suit. – Rustia v. The Judge of
First Instance of Batangas, G.R. No. L-19695 November 17, 1922

• We have recently held that a client has always the right to settle his
cause of action and stop litigation at any stage of the proceeding,
subject, however, to the right of the attorney to receive compensation
for services rendered. - Aro v. The Hon. Nañawa, G.R. No. L-24163 [1969]

Applies only in civil cases

• Rule 1.04 - A lawyer shall encourage his clients to avoid, end or settle a
controversy if it will admit of a fair settlement.

133
 Limitation of client’s right
to compromise suit
• While We here reaffirm the rule that "the client has an undoubted
right to compromise a suit without the intervention of his lawyer",
We hold that when such compromise is entered into in fraud of the
lawyer, with intent to deprive him of the fees justly due him,
the compromise must be subject to the said fees, and that when it
is evident that the said fraud is committed in confabulation with
the adverse party who had knowledge of the lawyer's contingent
interest or such interest appears of record and who would benefit
under such compromise, the better practice is to settle the
matter of the attorney's fees in the same proceeding, after
hearing all the affected parties and without prejudice to the
finality of the compromise in so far as it does not adversely
affect the rights of the lawyer. - Aro v. The Hon. Nañawa, G.R.
No. L-24163 [1969]

134
 Quantum meruit

• The principle of quantum meruit (as much as he deserves) may be a

basis for determining the reasonable amount of attorney’s fees.
• Quantum meruit 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. It is applicable even if there was a
formal written contract for attorney’s fees as long as the agreed
fee was found by the court to be unconscionable. - Atty. Orocio v.
Angulan et. al., G.R. No. 179892-93, January 30, 2009

135
 2 purposes of application
Quantum meruit
• The recovery of attorney’s fees on this basis is permitted, as in
this case, where there is no express agreement for the payment of
attorney’s fees. Basically, it is a legal mechanism which
prevents an unscrupulous client from running away with the
fruits of the legal services of counsel without paying for it.
In the same vein, it avoids unjust enrichment on the part of
the lawyer himself. - Pineda v. Atty. De Jesus, et. al. G.R. No.
155224 August 23, 2006

136
 When is Quantum meruit authorized

(1) there is no express contract for payment of attorney's fees agreed

upon between the lawyer and the client;
(2) when although there is a formal contract for attorney's fees, the
fees stipulated are found unconscionable or unreasonable by the court;
and
(3) when the contract for attorney's fee's is void due to purely
formal defects of execution;
(4) when the counsel, for justifiable cause, was not able to finish
the case to its conclusion;
(5) when lawyer and client disregard the contract for attorney's fees,
- Rilloza, et. al. v. Eastern Telecommunications Phils., Inc., G.R.
No. 104600 [1999]

137
 Factors for application of
quantum meruit
• In fixing a reasonable compensation for the services rendered by a
lawyer on the basis of quantum meruit, factors such as the time
spent, and extent of services rendered; novelty and difficulty of
the questions involved; importance of the subject matter; skill
demanded; probability of losing other employment as a result of
acceptance of the proferred case; customary charges for similar
services; amount involved in the controversy and the benefits
resulting to the client; certainty of compensation; character of
employment; and professional standing of the lawyer, may be
considered. (Atty. Orocio v. Angulan et. al., G.R. No. 179892-93,
January 30, 2009)

138
 The court shall fix the amount

• In fixing a reasonable compensation for the services rendered by a

lawyer on the basis of quantum meruit, the elements to be
considered are generally
(1) the importance of the subject matter in controversy,
(2) the extent of services rendered, and
(3) the professional standing of the lawyer.
• A determination of these factors would indispensably require
nothing less than a full-blown trial where private respondents can
adduce evidence to establish the right to lawful attorney's fees
and for petitioner to oppose or refute the same. The trial court
has the principal task of fixing the amount of attorney's fees.
Hence, the necessity of a hearing is beyond cavil. -Rilloza, et.
al. v. Eastern Telecommunications Phils., Inc., G.R. No. 104600
[1999]

139
 Champertous contract
• "1. On all commission or attorney’s fees that we shall receive
from our clients by virtue of the collection that we shall be able
to effect on their accounts, we shall divide fifty-fifty. Likewise
you are entitled to commission, 50/50 from domestic, inheritance
and commercial from our said clients or in any criminal cases where
they are involved.”

• We hold that the said agreement is void because it was

tantamount to malpractice which is "the practice of soliciting
cases at law for the purpose of gain, either personally or through
paid agents or brokers" Sec. 27, Rule 138, Rules of Court).
Malpractice ordinarily refers to any malfeasance or dereliction of
duty committed by a lawyer. Section 27 gives a special and
technical meaning to the term "malpractice" (Act No. 2828, amending
sec. 21 of Act No. 190). – Tan Tek Beng v. David, A.C. No. 1261.
December 29, 1983

140
 Agreement to pay all expenses of
proceedings
• An agreement whereby an attorney agrees to pay expenses of
proceedings to enforce the client's rights is champertous [JBP
Holding Corp. v. U.S. 166 F. Supp. 324 (1958)]. Such agreements are
against public policy especially where, as in this case, the
attorney has agreed to carry on the action at his own expense in
consideration of some bargain to have part of the thing in dispute
[See Sampliner v. Motion Pictures Patents Co., et al., 255 F. 242
(1918)]. The execution of these contracts violates the fiduciary
relationship between the lawyer and his client, for which the
former must incur administrative sanctions. - Atty. Orocio v.
Angulan et. al., G.R. No. 179892-93, January 30, 2009

141
 Funding litigation
• “[A]s long as litigation and access to the courts remain
expensive, then anyone who has a right that stands in need of
vindication should be able to obtain funding from anyone
willing to offer it and on whatever terms it is offered.”
- Neuberger, From Barretry, Maintenance and Champerty to Litigation
Funding, Speech at Gray’s Inn, May 8, 2013.

Pay the law firm not the handling lawyer

• When a client employs the services of a law firm, he does not
employ the services of the lawyer who is assigned to personally
handle the case. Rather, he employs the entire law firm. In the
event that the counsel appearing for the client resigns, the firm
is bound to provide a replacement.
- Rilloza, et. al. v. Eastern Telecommunications Phils., Inc., G.R.
No. 104600 [1999]

142
 There must be a favorable judgment

• A charging lien to be enforceable as 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. A charging lien
presupposes that the attorney has secured a favorable money
judgment for his client. - Rilloza, et. al. v. Eastern
Telecommunications Phils., Inc., G.R. No. 104600 [1999]

143
 The following are the circumstances to be
considered in determining the compensation of an
attorney
1. the amount and character of the services rendered;
2. the labor, time, and trouble involved;
3. the nature and importance of the litigation or business in which
the services were rendered; the responsibility imposed;
4. the amount of money or the value of the property affected by the
controversy, or involved in the employment,
5. the skill and experience called for in the performance of the
services;
6. the professional character and social standing of the attorney;
7. the results secured; and
8. whether or not the fee is absolute or contingent, it being a
recognized rule that an attorney may properly charge a much a
larger fee when it is to be contingent that when it is not.
9. The financial ability of the defendant may also be considered not
to enhance the amount above a reasonable compensation, but to
determine whether or not he is able to pay a fair and just
compensation for the services rendered, or as incident in
ascertaining the importance and gravity of the interests involved144
 Forum does not qualify payment of
compensation
• We have noted in the beginning that the services here were rendered
in a case of an administrative nature. But that does not alter
the application of the proper rule:

Professional services, to prepare and advocate just claims for

compensation, are as legitimate as services rendered in court
in arguing a cause to convince a court or jury that the claim
presented or the defense set up against a claim presented by the
other party ought to be allowed or rejected. Parties in such cases
require advocates; and the legal profession must have a right to
accept such employment and to receive compensation for their
services. – De Guzman v. Visayan Rapid Transport Co. Inc. G.R. No.
46396 September 30, 1939

145
Written contract is not required to prove
lawyer-client relationship
• The absence of a written contract will not preclude the finding
that there was a professional relationship which merits attorney's
fees for professional services rendered. Documentary formalism is
not an essential element in the employment of an attorney; the
contract may be express or implied. To establish the relation, it
is sufficient that the advice and assistance of an attorney is
sought and received in any matter pertinent to his profession.
An acceptance of the relation is implied on the part of the
attorney from his acting on behalf of his client in pursuance of a
request from the latter. - Dee vs. Court of Appeals, G.R. No.
77439, August 24, 1989

146
 Options to enforce right to professional
fees
• A lawyer may enforce his right to his fees by filing the necessary
petition as an incident of the main action in which his services
were rendered or in an independent suit against his client. The
former is preferable to avoid multiplicity of suits. - Pineda v.
Atty. De Jesus, et. al. G.R. No. 155224 August 23, 2006

Only reason to file suit

• Rule 20.4 of the Code of Professional Responsibility advises
lawyers to avoid controversies with clients concerning their
compensation and to resort to judicial action only to prevent
imposition, injustice or fraud. Suits to collect fees should be
avoided and should be filed only when circumstances force
lawyers to resort to it. - Pineda v. Atty. De Jesus, et. al. G.R.
No. 155224 August 23, 2006

147
 Two commonly accepted concepts of
attorney’s fees
• In its ordinary concept, an attorney’s fee is the reasonable
compensation paid to a lawyer by his client for the legal services
he has rendered to the latter. The basis of this compensation is
the fact of his employment by and his agreement with the client.
• In its extraordinary concept, an attorney’s fee is an indemnity
for damages ordered by the court to be paid by the losing party in
a litigation. The basis of this is any of the cases provided by
law where such award can be made, such as those authorized in
Article 2208, Civil Code, and is payable not to the lawyer but to
the client, unless they have agreed that the award shall pertain to
the lawyer as additional compensation or as part thereof. - Traders
Royal Bank Employees Union-Independent v. NLRC G.R. No. 120592.
March 14, 1997

148
 Award of (extraordinary) attorney’s fee
is discretionary
• The power of this Court to reduce or even delete the award of
attorneys’ fees cannot be denied. Lawyers are officers of the
Court and they participate in the fundamental function of
administering justice. When they took their oath, they submitted
themselves to the authority of the Court and subjected their
professional fees to judicial control. – Pineda v. Atty. De Jesus,
et. al. G.R. No. 155224 August 23, 2006

149
Contingent fee agreement does not violate
Article 1491(5) of the NCC
• The contract of services did not violate said provision of law.
Article 1491 of the Civil Code, specifically paragraph 5 thereof,
prohibits lawyers from acquiring by purchase even at a public or
judicial auction, properties and rights which are the objects of
litigation in which they may take part by virtue of their
profession. The said prohibition, however, applies only if the sale
or assignment of the property takes place during the pendency
of the litigation involving the client's property.
• Hence, a contract between a lawyer and his client stipulating a
contingent fee is not covered by said prohibition under
Article 1491 (5) of the Civil Code because the payment of said
fee is not made during the pendency of the litigation but only
after judgment has been rendered in the case handled by the lawyer.
In fact, under the 1988 Code of Professional Responsibility, a
lawyer may have a lien over funds and property of his client and
may apply so much thereof as may be necessary to satisfy his lawful
fees and disbursements. - Fabillo and Tana v. IAC G.R. No. L-68838
[1991] 150
 Effect of withdrawal as counsel

• The attorney who withdraws with good cause is entitled to fees,

but the attorney who withdraws without good cause is not entitled
to fees.
• If an attorney is found to have violated the ethical rules, a court
may find that any claim to fees from the matter is invalid.
• Accordingly, an attorney contemplating withdrawal must consider
whether it would be with or without cause to determine if the
client is required to pay fees because an attorney's lien will always
be invalid when the client is not required to pay fees.

151
 Whether or not an attorney who stopped
providing legal services could recover based
on a contingent fee contract "prior to full
consideration of the contingency“.
• The court held that, "under the circumstances of this case an
attorney may not recover on the contract but must seek recovery
of fees on the theory of quantum meruit." That holding does not
establish that any attorney who withdraws from a contingent fee
representation may always recover fees in quantum meruit.
Rather, it establishes that the measure of recovery should
be quantum meruit, as opposed to some portion of the
contingent contract. The court concluded, "if Ross is entitled to
attorney fees, the measure of those fees is not the contingent fee
agreed upon but the reasonable value of the services rendered.“ -
Ross v. Scannell, 97 Wash. 2d 598, 647 P.2d 1004 (1982)

152
 Is the lawyer entitled to a professional
fee in a contingent fee arrangement if
the client terminates the relationship
with or without cause?
• When a client agrees to pay an attorney under a contingency fee
agreement and terminates the attorney before occurrence of the
contingency, the attorney may recover based on quantum meruit.
In contrast to withdrawal, this rule applies whether the client
terminates the relationship with or without cause."

• However, there are two exceptions to this rule. First, if an

attorney violates the RPCs, then compensation is not available.
Second, if the attorney substantially performs the duties owed to
the client, then the attorney may recover the full contingency, not
just quantum meruit. The substantial performance exception only
applies in the rare case where full performance is delinquent by
"minor and relatively unimportant deviations."'

153
Mere demand for delivery of the litigated
property is not unethical
• In the instant case, there was no actual acquisition of the
property in litigation since the respondent only made a written
demand for its delivery which the complainant refused to comply.
Mere demand for delivery of the litigated property does not
cause the transfer of ownership, hence, not a prohibited
transaction within the contemplation of Article 1491. - Ramos v.
Atty. Ngaseo, A.C. No. 6210 [2004]

Commission/referral fees prohibited

• By openly admitting he divided the Php70,000.00 to other
individuals as commission/referral fees respondent violated Rule
9.02, Canon 9 of the Code of Professional Responsibility which
provides that a lawyer shall not divide or stipulate to divide a
fee for legal services with persons not licensed to practice law. -
Lijauco v. Atty. Terrado, A.C. No. 6317 [2006]

154
 CANON 9 - A LAWYER SHALL NOT, DIRECTLY OR
INDIRECTLY, ASSIST IN THE UNAUTHORIZED PRACTICE OF
LAW.
• Rule 9.02 - A lawyer shall not divide or stipulate to divide a fee
for legal services with persons not licensed to practice law,
except:
• (a) Where 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; or
• (b) Where a lawyer undertakes to complete unfinished legal business
of a deceased lawyer; or
• (c) Where a lawyer or law firm includes non-lawyer employees in a
retirement plan even if the plan is based in whole or in part, on a
profit sharing agreement.

155
 Quality of legal service should not vary
if rendered for free
• It is true that he is a court-appointed counsel. But we do say that
as such counsel de oficio, he has as high a duty to the accused
as one employed and paid by defendant himself. Because, as in
the case of the latter, he must exercise his best efforts and
professional ability in behalf of the person assigned to his care.
His is to render effective assistance. The accused defendant
expects of him due diligence, not mere perfunctory representation.
We do not accept the paradox that responsibility is less where
the defended party is poor. - In Re: Atty. Adriano, G.R. No. L-
26868 [1969]
• Rule 14.04 - A lawyer who accepts the cause of a person unable to
pay his professional fees shall observe the same standard of
conduct governing his relations with paying clients.

156
 Case law

• Mr. Culpepper sent Mr. Cole a letter in which he confirmed that he

would accept the representation on a contingent fee basis of
one-third "of whatever additional property or money we can get for
you.

• After negotiation between Mr. Culpepper and counsel for the estate
of Mr. Cole's mother, Mr. Cole was offered property worth
$21,600.03 over and above what he would have received under the
terms of the decedent's will. Mr. Culpepper thought the compromise
was reasonable and recommended to Mr. Cole that he accept the
offer. However, Mr. Cole refused to settle his claim for that
amount, believing he was entitled to a larger share of his
mother's succession as a forced heir. When Mr. Culpepper refused
to file suit in the matter, Mr. Cole terminated his
representation.

157
• Pursuant to the parties' agreement, Mr. Culpepper is entitled to
one-third "of whatever additional property or money" he obtained on
behalf of Mr. Cole. It is undisputed that Mr. Cole recovered no
additional property or money as a result of the litigation
against his mother's estate. Because Mr. Cole obtained no recovery,
it follows that Mr. Culpepper is not entitled to any contingent
fee.

• Nonetheless, Mr. Culpepper urges us to find that his contingency

should attach to the settlement offer he obtained on behalf of his
client, even though his client refused to accept that offer.
According to Mr. Culpepper, he did the work for which Mr. Cole
retained him, and he is therefore entitled to one-third of the
amount offered in settlement, notwithstanding Mr. Cole's rejection
of the settlement offer.

158
 Decision

• To allow Mr. Culpepper to recover a contingent fee under these

circumstances would penalize Mr. Cole for exercising his right
to reject the settlement. We find no statutory or jurisprudential
support for such a proposition. Indeed, this court has rejected any
interpretation of the Rules of Professional Conduct which would
place restrictions on the client's fundamental right to
control the case.
• In summary, we find that Mr. Culpepper did not obtain any recovery
on behalf of Mr. Cole. In the absence of a recovery, it follows
that Mr. Culpepper cannot collect a contingent fee for his
services. - Culpepper v. Cole 929 So.2d 1224 [2006]

159
 Acceptance fee is not necessary to
establish lawyer-client relationship

• A lawyer-client relationship was established from the very first

moment complainant asked respondent for legal advice regarding
the former’s business. To constitute professional employment, it
is not essential that the client employed the attorney
professionally on any previous occasion. It is not necessary that
any retainer be paid, promised, or charged; neither is it
material that the attorney consulted did not afterward handle
the case for which his service had been sought. - Burbe v. Atty.
Magulta AC No. 99-634. June 10, 2002

160
 “Money down first” policy
is unethical
• The impropriety lies in the fact that she suggested that
complainant borrow money from Domingo Natavio for the payment
thereof. This act impresses upon the Court that respondent would
do nothing to the cause of complainant’s mother-in-law unless
payment of the acceptance fee is made. Her duty to render legal
services to her client with competence and diligence should not
depend on the payment of acceptance fee. – Ceniza v. Atty.
Rubia, A.C. No. 6166, October 2, 2009

• I, do solemnly swear that xxx I will delay no man for money xxx.

161
 Establishment of lawyer-client relationship
not influenced by personal affiliation

• Respondent takes further refuge in the intimate and close

relationship existing between himself and the complainant’s
family on the basis of which his legal services were purely
gratuitous or “simply an act of a friend for a friend” with
“no consideration involved.” Unfortunately, his efforts to
redeem the foreclosed property, as already stated, did not produce
the desired result because the mortgagee “would not budge
anymore” and “would not accept the sum offered.”
• Thus, the respondent concluded that there was, strictly speaking,
no attorney-client [relationship] existing between them. Rather,
right from the start[,] everything was sort of personal, he added.
xxx This contention has no merit. - Junio v. Atty. Grupo, A.C. No.
5020. December 18, 2001

162
 Right to a lien versus duty to account

• Lawyers who convert the funds entrusted to them are in gross

violation of professional ethics and are guilty of betrayal of
public confidence in the legal profession. It may be true that
they have a lien upon the client’s funds, documents and other
papers that have lawfully come into their possession; that they may
retain them until their lawful fees and disbursements have been
paid; and that they may apply such funds to the satisfaction of
such fees and disbursements. However, these considerations do not
relieve them of their duty to promptly account for the moneys
they received. Their failure to do so constitutes professional
misconduct. In any event, they must still exert all effort to
protect their client’s interest within the bounds of law. – Burbe
v. Atty. Magulta AC No. 99-634. June 10, 2002

163
 Duty of accounting

• When a lawyer receives money from a client for a particular

purpose involving the client-attorney relationship, he is bound to
render an accounting to the client showing that the money was
spent for that particular purpose. If the lawyer does not use the
money for the intended purpose, he must immediately return the
money to his client. - Navarro & Presbitero, A.C. No. 9872,
January 28, 2014

164
 Change of attorney

• Section 26 of Rule 138 of the Revised Rules of Court provides:

"Sec. 26. Change of attorneys -- An attorney may retire at any time

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

165
 Withdrawal of counsel

• A lawyer may retire at any time from any action or special

proceeding with the written consent of his client filed in court
and copy thereof served upon the adverse party. Should the client
refuse to give his consent, the lawyer must file an application
with the court. The court, on notice to the client and adverse
party, shall determine whether he ought to be allowed to retire.
The application for withdrawal must be based on a good cause.
- Orcino v. Atty. Gaspar, A.C. No. 3773. September 24, 1997

Grounds for withdrawal

• Respondent's withdrawal was made on the ground that "there no
longer exist[ed] the xxx confidence" between them and that there
had been "serious diffferences between them relating to the manner
of private prosecution.“ - Orcino v. Atty. Gaspar, A.C. No. 3773.
September 24, 1997

166
 Court approval required before counsel
can withdraw
• Assuming, nevertheless, that respondent was justified in
terminating his services, he, however, cannot just do so and leave
complainant in the cold unprotected. The lawyer has no right to
presume that his petition for withdrawal will be granted by the
court. Until his withdrawal shall have been approved, the lawyer
remains counsel of record who is expected by his client as well as
by the court to do what the interests of his client require. He
must still appear on the date of hearing for the attorney-client
relation does not terminate formally until there is a withdrawal of
record. – Orcino v. Atty. Gaspar, A.C. No. 3773. September 24,
1997

167
 What is a contingency contract

• The client and his lawyer may enter into a written contract whereby
the latter would be paid attorney’s fees only if the suit or
litigation ends favorably to the client. This is called a
contingency fee contract. The amount of attorney’s fees in this
contract may be on a percentage basis, and a much higher
compensation is allowed in consideration of the risk that the
lawyer may get nothing if the suit fails.

• In the case at bar, the non-EPIRA separated members and petitioner

voluntarily entered into a contingency fee contract whereby
petitioner did not receive any acceptance fee or appearance/meeting
fee. - Atty. Orocio v. Angulan et. al., G.R. No. 179892-93 [2009]

168
 Why contingency fee is allowed
• Contingent fee contracts are permitted in this jurisdiction 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 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 litigation. Oftentimes, the
contingent fee arrangement is the only means by which the poor
clients can have their rights vindicated and upheld.”- Atty. Orocio
v. Angulan et. al., G.R. No. 179892-93 [2009]

Contingent fee arrangement must be written

• It bears to stress that a contingent fee arrangement is valid in this
jurisdiction and is generally recognized as valid and binding but
must be laid down in an express contract. – Felicisima Mendoza
vda. De Robosa v. Atty. Mendoza & Atty. Navarro, Jr., A.C. no. 6056,
September 09, 2015

169
 Limitations of a contingency agreement
• However, in cases where contingent fees are sanctioned by law, the
same should be reasonable under all the circumstances of the
case, and should always be subject to the supervision of a court ,
as to its reasonableness, such that under Canon 20 of the Code of
Professional Responsibility, a lawyer is tasked to charge only fair
and reasonable fees. - Atty. Orocio v. Angulan et. al., G.R. No.
179892-93 [2009]

Contingent fee to a witness

• Witnesses should always testify truthfully and should be free from
any financial inducements that might tempt them to do otherwise. A
lawyer should not pay or agree to pay a non-expert witness an
amount in excess of reimbursement for expenses and financial
loss incident to being a witness;  however, a lawyer may pay or
agree to pay an expert witness a reasonable fee for services as an
expert.   But in no event should a lawyer pay or agree to pay a
contingent fee to any witness. – Swafford v. Harris, 967 S.W.2d
319 (1998)

170
 A champertous contract

We the [Fortunados] agree on the 50% contingent fee, provided,

you [respondent Ramon Gonzales] defray all expenses, for the suit,
including court fees.

Alfaro T. Fortunado [signed]

Editha T. Fortunado [signed]
Nestor T. Fortunado [signed]

CONFORME

Ramon A. Gonzales [signed]

171
 Champerty and Doctrine of Maintenance
• Champerty, along with maintenance (of which champerty is an
aggravated form), is a common law doctrine that traces its
origin to the medieval period.
• The doctrine of maintenance was directed "against wanton and
in officious intermeddling in the disputes of others in
which the intermeddler has no interest whatever, and where
the assistance rendered is without justification or excuse."
• Champerty, on the other hand, is characterized by "the
receipt of a share of the proceeds of the litigation by the
intermeddler." Some common law court decisions, however, add
a second factor in determining champertous contracts,
namely, that the lawyer must also, "at his own expense
maintain, and take all the risks of, the litigation.“ -
Conjugal Partnership of the Spouses Vicente Cadavedo v.
Atty. Lacaya, G.R. No. 173188, January 15, 2014
172
 Avoiding Champertous contracts

• The rule of the profession that forbids a lawyer from contracting with
his client for part of the thing in litigation in exchange for conducting
the case at the lawyer’s expense is designed to prevent the lawyer
from acquiring an interest between him and his client.
• To permit these arrangements is to enable the lawyer to "acquire
additional stake in the outcome of the action which might lead him to
consider his own recovery rather than that of his client or to accept a
settlement which might take care of his interest in the verdict to the
sacrifice of that of his client in violation of his duty of undivided
fidelity to his client’s cause. - Conjugal Partnership of the Spouses
Vicente Cadavedo v. Atty. Lacaya, G.R. No. 173188, January 15,
2014

173
Advancing the expenses without reimbursement

• Although a lawyer may in good faith, advance the expenses of

litigation, the same should be subject to reimbursement. The
agreement between respondent and the Fortunados, however, does
not provide for reimbursement to respondent of litigation
expenses paid by him. An agreement whereby an attorney agrees
to pay expenses of proceedings to enforce the client's rights is
champertous xxx. Such agreements are against public policy
especially where, as in this case, the attorney has agreed to carry
on the action at his own expense in consideration of some bargain
to have part of the thing in dispute xxx. The execution of these
contracts violates the fiduciary relationship between the lawyer and
his client, for which the former must incur administrative sanctions.
- Bautista v. Atty. Gonzales, A.M. No. 1625 February 12, 1990

174
 Written v. Oral Agreements

• An agreement between the lawyer and his client,

providing for the former’s compensation, is subject to the
ordinary rules governing contracts in general. As the
rules stand, controversies involving written and oral
agreements on attorney’s fees shall be resolved in
favor of the former. - Conjugal Partnership of the Spouses
Vicente Cadavedo v. Atty. Lacaya, G.R. No. 173188, January 15,
2014

175
 Written contract of legal fees is
ordinarily controlling
• A stipulation on a lawyer’s compensation in a written contract
for professional services ordinarily controls the amount of
fees that the contracting lawyer may be allowed, unless the court
finds such stipulated amount to be unreasonable or unconscionable.
If the stipulated amount for attorney’s fees is excessive,
the contract may be disregarded even if the client expressed
their conformity thereto. Attorney’s fees are unconscionable if
they affront one’s sense of justice, decency or reasonableness, or
if they are so disproportionate to the value of the services
rendered. In such a case, courts are empowered to reduce the
attorney’s fee or fix a reasonable amount thereof taking into
consideration the surrounding circumstances and the established
parameters. - Atty. Orocio v. Angulan et. al., G.R. No. 179892-93
[2009]

176
 When is an attorney’s fees
unconscionable?
• Attorney’s fees are unconscionable if they affront one’s sense of
justice, decency or reasonableness, or if they are so
disproportionate to the value of the services rendered. In such a
case, courts are empowered to reduce the attorney’s fee or fix a
reasonable amount thereof taking into consideration the surrounding
circumstances and the established parameters. - Atty. Orocio v.
Angulan et. al., G.R. No. 179892-93 [2009]

177
 Lawyer’s compensation for professional
services rendered is subject to the
supervision of the court
• Under Section 24, Rule 138 of the Rules of Court, a written
contract for services shall control the amount to be paid therefor
unless found by the court to be unconscionable or unreasonable.
• . It follows that a lawyer’s compensation for professional
services rendered is subject to the supervision of the court, not
just to guarantee that the fees he charges and receives remain
reasonable and commensurate with the services rendered, but also
to maintain the dignity and integrity of the legal profession
to which he belongs. Upon taking his attorney’s oath as an
officer of the court, a lawyer submits himself to the authority
of the courts to regulate his right to charge professional
fees. - Atty. Orocio v. Angulan et. al., G.R. No. 179892-93 [2009]

178
 CPR – retaining and charging
lien
• Rule 16.03 - A lawyer shall deliver the funds and property of his client
when due or upon demand. However, he shall have a lien over the funds
and may apply so much thereof as may be necessary to satisfy his lawful
fees and disbursements, giving notice promptly thereafter to his client. He
shall also have a lien to the same extent on all judgments and executions
he has secured for his client as provided for in the Rules of Court.

179
 General, Retaining or
Possessory lien
• Rule 138 Sec. 37. Attorney's liens. — An attorney shall have a lien
upon the funds, documents and papers of his client, which 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. xxx

180
 General Retainer Fee
• A retaining fee is a preliminary fee paid to ensure and
secure a lawyer's future services, to remunerate him for
being deprived, by being retained by one party, of the
opportunity of rendering services to the other party and of
receiving pay from him.

• In the absence of an agreement to the contrary, the

retaining fee is neither made nor received in consideration
of the services contemplated; it is apart from what the
client has agreed to pay for the services which he has
retained him to perform. - Research and Services Realty,
Inc. v. CA and Fonacier, Jr., G.R. No. 124074. January 27,
1997

181
 Features of a Retaining fee
agreement
Two basic principles come into play:
• The first is as stated earlier, viz., that the retaining fee is
neither made nor received in consideration of the
services contemplated unless the contract itself so
provides.
• The second is that, unless expressly stipulated,
rendition of professional services by a lawyer is for a fee or
compensation and is not gratuitous. This is implicit from the
opening clause of Section 24, Rule 138 of the Rules of
Court, which states that "[a]n attorney shall be entitled to
have and recover from his client no more than a reasonable
compensation for his services . . .," and by virtue of the
innominate contract of facio ut des (I do and you give), as
enunciated by this Court… - Research and Services Realty,
Inc. v. CA and Fonacier, Jr., G.R. No. 124074. January 27,
1997 182
 Exception to the rule of not
withholding property of client
• Except only for the retaining lien exception under Rule
16.03, Canon 16 of the Code, the lawyer should not
withhold the property of his client. Segovia-Ribaya v. Atty.
Lawsin, A.C. No. 7965, November 13, 2013

183
 Special, particular, or Charging lien

• Rule 138 Section 37. xxx He shall also have a lien 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 just fees and disbursements."

184
Retaining lien to Charging lien
• If the funds recovered for the client come into the lawyer's
possession, the lawyer may detain the amount claimed
as a fee. This use has some similarity to a retaining lien,
except that the lawyer may keep only proceeds of the
matter in which the fee is claimed, and only the amount so
claimed.

Suppose, however, the certificates of title belonging to

a client, come to the possession of his lawyer, but
subsequently, by virtue of a compromise agreement
judicially approved, the properties covered by these
are conveyed to other persons, is the retaining lien
lost?
• It is not. The position of the lawyer in such a situation is
similar to that of a creditor who holds an attachment lien
over the properties, and the client-debtor must
discharge the lien before he can dispose the properties185
 What if the title to the property is the
very subject of the litigation?
• A different rule obtains if the title to the property is the very subject
in, dispute in the case, and the court determines that the client's
adversary is rightfully entitled to it. In this latter case, the title to
the property could not be said to be the properties of the client,
over which the lawyer may claim a retaining lien. - Carmelo V.
Sison citing Vda. de Caifia v. Victoriano, 105 Phil. 194 (1959)

Court can order the surrender of documents

• "if it be entirely indispensable for the court to gain possession of
the documents that have come to the attorney and are held by him
in the course of his employment as counsel, it can require the
surrender thereof by requiring the client or claimant to first file
proper and adequate security for the lawyers' compensation." –
Ampil v. Hon. Juliano-Agrava, et. al., G.R. No. L-27394 July 31, 1970

186
 Public documents not subject to
retaining lien
• The privilege of a retaining lien granted to an attorney does
not cover papers and documents which are public in
character and which have been introduced as exhibits.
Such papers and documents are properly subject to the
Court’s custody. In the case at bar, the intransigence of the
petitioner in his persistence to continue in possession of the
papers and documents in question based on his erroneous
belief as to the extent of the privilege of a retaining lien,
must not be accorded the imprimatur of the approval of this
Tribunal. If such were not the law, the resulting injury to a
fair and efficient administration of justice might well prove
to be incalculable. – Villanueva, Jr. v. Hon. Judge Querubin,
et. al., G.R. No. L-26137. September 23, 1968

187
 Features of an attorney's general,
retaining or possessory lien
• Retaining lien of an attorney is only a passive right and
cannot be actively enforced.
• It amounts to a mere right to retain the documents and
papers as against the client, until the attorney is fully paid,
the exception being that funds of the client in the attorney's
possession may be applied to the satisfaction of his fees.
• The attorney's retaining lien is a general lien for the
balance of the account between the attorney and his client,
and applies to the documents and funds of the client which
may come into the attorney's possession in the course of
his employment.
• The attorney's retaining lien attaches to the client's
documents and funds in the attorney's possession
regardless of the outcome, favorable or adverse, of any
cases he may have handled for his client. - Ampil v. Hon.
Juliano-Agrava, et. al., G.R. No. L-27394 July 31, 1970 188
• The retaining lien's primary use is to compel a client to pay
through embarrassment or worry.
• Attorney lien is the exception to the rule prohibiting an
attorney from attaining a proprietary interest in the cause
of action.
• Lastly, it is irrelevant whether the papers were retained in
connection with the fees in dispute. (?)

189
Retaining lien not applicable to adverse
party’s property
• The situation would be different where title to the
properties is the very subject in dispute in the case and the
court adjudges the client's adversary to be rightfully
entitled thereto. In such a case, the titles to the property
could not be said to be properties of the client, over which
the attorney may claim a retaining lien. The attorney may
enforce his lien only over properties of his client and not
against those of his client's adversary. And the adversary's
right as prevailing party to enforce the judgment for the
property adjudged to him should not depend on or be
prejudiced by the client's ability or refusal to pay the
attorney. - Ampil v. Hon. Juliano-Agrava, et. al., G.R. No. L-
27394 July 31, 1970

190
 Effect of withdrawal as counsel

• The attorney who withdraws with good cause is entitled to

fees, but the attorney who withdraws without good cause is
not entitled to fees.
• If an attorney is found to have violated the ethical rules, a
court may find that any claim to fees from the matter is
invalid.
• Accordingly, an attorney contemplating withdrawal must
consider whether it would be with or without cause to
determine if the client is required to pay fees because an
attorney's lien will always be invalid when the client is not
required to pay fees.

191
 The documents and money must be in
the possession of the attorney
• A side question also arose because of the lawyer's claim
that he "is from time to time also in possession of the 17
titles belonging to the estate.“ The rule is that the retaining
lien is dependent on possession and does not attach to
anything not in the attorney's hands. It exists only so long
as the attorney retains possession of the subject matter
and expires when the possession ends. - Carmelo V. Sison
citing Vda. de Caifia v. Victoriano, 105 Phil. 194 (1959)

192
Confidentiality between
lawyers and clients

193
 CANON 15 - A lawyer shall observe candor,
fairness and loyalty in all his dealings and
transactions with his clients

• 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 130 Sec. 24.Disqualification by reason of privileged

communication. — The following persons cannot testify as to
matters learned in confidence:
(b)An attorney cannot, without the consent of his client, be examined
as to any communication made by the client to him, or his advice given
thereon in the course of, or with a view to, professional employment,
nor can an attorney's secretary, stenographer, or clerk be examined,
without the consent of the client and his employer, concerning any
fact the knowledge of which has been acquired in such capacity;

194
 Canon 21 – A lawyer shall preserve the confidence
and secrets of his client even after the
attorney-client relation is terminated
• Rule 21.01 - A lawyer shall not reveal the confidences or secrets
of his client except;
(a) When authorized by the client after acquainting him of the
consequences of the disclosure;
(b) When required by law;
(c) When necessary to collect his fees or to defend himself, his
employees or associates or by judicial action.
• Rule 21.02 - A lawyer shall not, to the disadvantage of his
client, use information acquired in the course of employment, nor
shall he use the same to his own advantage or that of a third
person, unless the client with full knowledge of the
circumstances consents thereto.
• Rule 21.03 - A lawyer shall not, without the written consent of
his client, give information from his files to an outside agency
seeking such information for auditing, statistical, bookkeeping,
accounting, data processing, or any similar purpose.
195
• Rule 21.04 - A lawyer may disclose the affairs of a client of the
firm to partners or associates thereof unless prohibited by the
client.
• Rule 21.05 - A lawyer shall adopt such measures as may be
required to prevent those whose services are utilized by him, from
disclosing or using confidences or secrets of the clients.
• Rule 21.06 - A lawyer shall avoid indiscreet conversation about a
client's affairs even with members of his family.
• Rule 21.07 - A lawyer shall not reveal that he has been consulted
about a particular case except to avoid possible conflict of
interest.

Rule 138 of the Rules of Court

• Sec. 20. It is the duty of an attorney: (e) to maintain inviolate
the confidence, and at every peril to himself, to preserve the
secrets of his client, and to accept no compensation in
connection with his client's business except from him or with his
knowledge and approval.

196
• 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.

197
 Revised Penal Code

• Art. 209. Betrayal of trust by an attorney or solicitor. —

Revelation of secrets. — In addition to the proper
administrative action, xxx shall be imposed upon any attorney-
at-law or solicitor ( procurador judicial) who, by any malicious
breach of professional duty or of inexcusable negligence or
ignorance, shall prejudice his client, or reveal any of the
secrets of the latter learned by him in his professional capacity.
• The same penalty shall be imposed upon an attorney-at-law or
solicitor (procurador judicial) who, having undertaken the
defense of a client or having received confidential
information from said client in a case, shall undertake the
defense of the opposing party in the same case, without the
consent of his first client.

198
 Confidentiality is not the same as the
attorney-client privilege
• The lawyer’s duty of confidentiality (an ethical duty) is not the
same as the client’s right to assert the attorney client privilege
(a rule of evidence).
• The attorney/client privilege extends only to communications
between lawyers and clients relating to legal services and which
the client reasonably believes is confidential.
• Any disclosure may waive the attorney/client privilege as to other
otherwise protected matters; not so with the duty of
confidentiality.
• The privilege applies only to limiting testimony in a legal
proceeding. The duty of confidentiality limits voluntary
disclosures anywhere.

199
 Why lawyer-client relationships requires
confidentiality
• Considerations favoring confidentially in lawyer-client
relationships are many and serve several constitutional and policy
concerns. In the constitutional sphere, the privilege gives flesh
to one of the most sacrosanct rights available to the accused, the
right to counsel. If a client were made to choose between legal
representation without effective communication and disclosure and
legal representation with all his secrets revealed then he might be
compelled, in some instances, to either opt to stay away from the
judicial system or to lose the right to counsel. If the price
of disclosure is too high, or if it amounts to self incrimination,
then the flow of information would be curtailed thereby rendering
the right practically nugatory. The threat this represents against
another sacrosanct individual right, the right to be presumed
innocent is at once self-evident. - Regala et. al. v.
Sandiganbayan, G. R. No. 105938 [1996]

200
 Extent of Confidentiality Rule
• The confidentiality rule, for example, applies not only to matters
communicated in confidence by the client but also to all
information relating to the representation, whatever its source. A
lawyer may not disclose such information except as authorized or
required by the Rules of Professional Conduct or other law.

Lawyer’s duty to keep the confidentiality

• An effective lawyer-client relationship is largely dependent upon
the degree of confidence which exists between lawyer and
client which in turn requires a situation which encourages a
dynamic and fruitful exchange and flow of information. It
necessarily follows that in order to attain effective
representation, the lawyer must invoke the privilege not as a
matter of option but as a matter of duty and professional
responsibility. - Regala et. al. v. Sandiganbayan, G. R. No.
105938 [1996]

201
 Duty of lawyer when receiving a material
not intended for him
• A lawyer who receives on an unauthorized basis materials of an
adverse party that she knows to be privileged or confidential
should, upon recognizing the privileged or confidential nature of
the materials, either refrain from reviewing such materials or
review them only to the extent required to determine how
appropriately to proceed;

• She should notify her adversary's lawyer that she has such
materials and should either follow instructions of the adversary's
lawyer with respect to the disposition of the materials, or refrain
from using the materials until a definitive resolution of the
proper disposition of the materials is obtained from a court. - ABA
Comm. on Ethics and Prof'l Responsibility, Formal Op. 382 (1994).

202
 General Rule on client’s identity

• As a matter of public policy, a client's identity should not be

shrouded in mystery. Under this premise, the general rule in our
jurisdiction as well as in the United States is that a lawyer may
not invoke the privilege and refuse to divulge the name or
identity of this client. - Regala et. al. v. Sandiganbayan, G. R.
No. 105938 [1996]

203
 Reasons advanced for the general rule

• First, the court has a right to know that the client whose
privileged information is sought to be protected is flesh and
blood.
• Second, the privilege begins to exist only after the attorney-
client relationship has been established. The attorney-client
privilege does not attach until there is a client.
• Third, the privilege generally pertains to the subject matter of
the relationship.
• Finally, due process considerations require that the opposing
party should, as a general rule, know his adversary. "A party
suing or sued is entitled to know who his opponent is." He cannot
be obliged to grope in the dark against unknown forces.

204
 Exceptions
1) Client identity is privileged where a strong probability exists
that revealing the client's name would implicate that client in the
very activity for which he sought the lawyer's advice.
2) Where disclosure would open the client to civil liability; his
identity is privileged.
3) Where the government's lawyers have no case against an attorney's
client unless, by revealing the client's name, the said name would
furnish the only link that would form the chain of testimony
necessary to convict an individual of a crime, the client's name is
privileged. - Regala et. al. v. Sandiganbayan, G. R. No. 105938
[1996]

• Summarizing these exceptions, information relating to the identity

of a client may fall within the ambit of the privilege when the
client's name itself has an independent significance, such
that disclosure would then reveal client confidences. - Regala
et. al. v. Sandiganbayan, G. R. No. 105938 [1996]

205
 Communication to commit crime or fraud
not privileged
• "The reason of the principle which holds such communications not to be
privileged is that it is not within the professional character of
a lawyer to give advice upon such subjects, and that it is no part
of the profession of an attorney or counselor at law to be advising
persons as to how they may commit crimes or frauds, or how they
may escape the consequences of contemplated crimes and frauds.

• The relation of attorney and client cannot exist for the purpose of
counsel in concocting crimes.

• The protection which the law affords to communications between

attorney and client has reference to those which are legitimately and
properly within the scope of a lawful employment, and does not extend
to communications made in contemplation of a crime, or
perpetration of a fraud. -Dissenting opinion, Regala et. al. v.
Sandiganbayan, G. R. No. 105938 [1996]

206
• It does not extend to those made in contemplation of a crime or
perpetration of a fraud. If the unlawful purpose is avowed, as in
this case, the complainant’s alleged intention to bribe government
officials in relation to his case, the communication is not
covered by the privilege as the client does not consult the
lawyer professionally. It is not within the profession of a
lawyer to advise a client as to how he may commit a crime as a
lawyer is not a gun for hire. Thus, the attorney-client
privilege does not attach, there being no professional employment
in the strict sense. - Genato v. Atty. Silapan, A.C. No. 4078.
July 14, 2003

207
 Cause of client defense is not absolute

• Whatever the contours of the line between traditional lawyering and

criminal conduct, they must inevitably be drawn case-by-case. We
refuse to accept the notion that lawyers may do anything, including
violating the law, to zealously advocate their clients' interests
and then avoid criminal prosecution by claiming that they were
"just doing their job." - United States v. Cueto (7th Cir. 1998)
151 F.3d 620, 634

208
 Permanent nature of duty to keep
confidentiality
• The duty to maintain inviolate the client’s confidences and
secrets is not temporary but permanent. It is in effect
perpetual for "it outlasts the lawyer’s employment" (Canon 37,
Code of Professional Responsibility) which means even after the
relationship has been terminated, the duty to preserve the
client’s confidences and secrets remains effective.

• This obligation to preserve the confidences and secrets of a client

arises at the inception of their relationship. The protection given
to the client is perpetual and does not cease with the
termination of the litigation, nor is it affected by the party’s
ceasing to employ the attorney and retaining another, or by any
other change of relation between them. It even survives the
death of the client. – Genato v. Atty. Silapan, A.C. No. 4078.
July 14, 2003

209
 Secrets or confidential communications
must be obtained in a lawyer-client
relationship
• The alleged "secrets" of complainant were not specified by him in
his affidavit-complaint. Whatever facts alleged by respondent
against complainant were not obtained by respondent in his
professional capacity but as a redemptioner of a property
originally owned by his deceased son and therefore, when respondent
filed the complaint for estafa against herein complainant, which
necessarily involved alleging facts that would constitute estafa,
respondent was not, in any way, violating Canon 21. xxx To hold
otherwise would be precluding any lawyer from instituting a case
against anyone to protect his personal or proprietary interests. –
Uy v. Atty. Gonzales, A.C. No. 5280, March 30, 2004
• It must be stressed, however, that the privilege against disclosure
of confidential communications or information is limited only to
communications which are legitimately and properly within the
scope of a lawful employment of a lawyer. - Genato v. Atty.
Silapan, A.C. No. 4078. July 14, 2003

210
Starting point of duty of confidentiality
• 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, respondent in
this instance, to keep inviolate confidential
information acquired or revealed during legal
consultations. - Hadjula v. Atty. Madianda, A.C. No. 6711
[2007]

• This duty of confidentiality also extends to prospective

clients even though an attorney-client relationship is never
established.

211
 Not a defense to justify breaching the
duty of confidentiality
1. Lawyer not inclined to handle the client's case after
consultation.
2. no formal professional engagement follows the consultation.
3. no contract whatsoever was executed by the parties to memorialize
the relationship.
- Hadjula v. Atty. Madianda, A.C. No. 6711 [2007]

212
The essential factors to establish the existence
of the attorney-client privilege communication

(1) Where legal advice of any kind is sought

(2) from a professional legal adviser in his capacity as such,
(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.
- Hadjula v. Atty. Madianda, A.C. No. 6711 [2007]

213
Characteristics of the Attorney-Client Privilege
1. A-C privilege where legal advice is professionally sought from an
attorney.
2. The client must intend the above communication to be confidential.
3. A-C privilege embraces all forms of communication and action.
4. As a general rule, A-C privilege also extends to the attorney’s
secretary, stenographer, clerk or agent with reference to any fact
required in such capacity.
5. The above duty is perpetual and is absolutely privileged from disclosure.

Attorney-Client Privilege cannot be invoked

1. There is consent or waiver or client.
2. Such is required by law.
3. Such is made to protect the lawyer’s rights (i.e. to collect his fees or
associates or by judicial action).
4. When such communication are made in contemplation of a crime or the
perpetuation of a fraud.

214
 The principle of client-lawyer
confidentiality is given effect by
related bodies of law
1. the attorney-client privilege,
2. the work product doctrine and
3. the rule of confidentiality established in professional ethics.

• The attorney-client privilege and work-product doctrine apply in

judicial and other proceedings in which a lawyer may be called
as a witness or otherwise required to produce evidence concerning a
client.

• The rule of client-lawyer confidentiality applies in situations

other than those where evidence is sought from the lawyer
through compulsion of law.

215
 When confidentiality does not extend
to partners and associates
• Lawyers in a firm may, in the course of the firm's practice,
disclose to each other information relating to a client of the
firm, unless the client has instructed that particular
information be confined to specified lawyers.

• Rule 21.04 - A lawyer may disclose the affairs of a client of

the firm to partners or associates thereof unless prohibited by
the client.

Protection from third party

• This prohibition also applies to disclosures by a lawyer that do
not in themselves reveal protected information but could reasonably
lead to the discovery of such information by a third person.

216
 Disclosure of the Client's Identity and
Whereabouts
• The general rule is that a client's identity and whereabouts are
not covered by the attorney-client privilege, as opposed to the
ethical duty of confidentiality.
• However, exceptions have been made if disclosure would implicate
the client in the criminal activity for which legal advice was
sought or "if the net effect of the disclosure would be to reveal
the nature of a client communication." - Charles McCormick,
McCormick on Evidence § 90 (5th ed. 1999)
• Lawyer must testify about identity of client who paid with
counterfeit $100 bill.
• Client's name not considered confidential unless "intertwined" with
confidential information or last link tying client to crime. -
Alexiou v. United States), 39 F.3d 973 (9th Cir. 1994

217
• Client identity is privileged in exceptional cases when disclosure
would provide "last link" in chain of evidence leading to
conclusion that client committed crime, and would reveal
confidential communication between lawyer and client;

• Client who accused divorce lawyer of improper sexual advances may

not obtain client list in discovery. - Brett v. Berkowitz, 706 A.2d
509 (Del. 1998)

• Lawyer for client sought in hit-and-run accident may withhold

client's identity when disclosure would implicate client in
criminal activity for which legal advice sought. - Dietz v. Doe,
935 P.2d 611 (Wash. 1997)

218
 Certain instances where a court order is
not involved, courts have held the
client's whereabouts protected
• Lawyer may not be compelled to disclose address
of defendant father in child custody proceeding when he specifically
requested that lawyer not reveal the home address and telephone
number of the father and the name and address of the school the
children were attending; information that the client requests be
kept confidential is protected unless protection permits a fraud
or crime or clearly frustrates the administration of justice. -
Brennan v. Brennan, 422 A2d 510 (Pa SuperCt 1980)

• Domestic relations case where confidentiality of address was

necessary for client safety. - Waldman v. Waldman,358 NE2d 521
(1976)

219
 As a rule a lawyer should challenge an
order to disclose information about
client
• In sum, the attorney-client privilege ordinarily will not cover
the information sought by a subpoena directed to a lawyer. Yet even
when faced with a subpoena seeking fee information or a client's
identity, the lawyer should generally assert the attorney-
client privilege and obtain a court ruling rather than make his
own determination whether the information is privileged. The
existence of exceptions to the general rule holding that fee and
client identity are not privileged, as well as the lawyer's
ethical duty to oppose disclosure of information learned
during a client's representation, make it advisable to follow
this course of action.

220
• A lawyer faced with a subpoena for information about a client must
resist the subpoena if the lawyer's testimony or the document
production would violate either the attorney-client privilege
or the ethical duty of confidentiality and the client does not
consent to the disclosure. - In re Grand Jury Witness, 695 F2d
359 (CA 9 1982); In re Grand Jury Subpoena (U.S.), 831 F2d 225 (CA
11 1987

• A lawyer who receives a subpoena to testify about a client may file

a motion to quash asserting the attorney-client privilege, along
with any other possible grounds for refusing to comply.

• A subpoena duces tecum issued to a lawyer that makes no attempt

whatsoever to confine its scope to relevant, non-privileged
matters is unenforceable and must be quashed. - U.S. v. Horn, 976
F2d 1314 (CA9 1992)

221
 Representing a fugitive

• Assuming the client is indeed properly characterized as a fugitive,

defense counsel must take into account the boundaries of
permissible advocacy. It bears noting that any physical act
intended to harbor or conceal a fugitive so as to prevent his
discovery or arrest arguably could constitute a separate criminal
violation.

• A lawyer “is free to continue to give legal advice to [a fugitive]

client and to represent him before the authorities, as long as [the
lawyer] does nothing to aid the client to escape trial.

222
 Client is under conditions of bail

• “Where a client is under conditions of bail and defies a

lawful court order to appear, his 'whereabouts' are not
unqualifiedly protected by the attorney-client privilege, and
the attorney may be compelled to disclose information of the
client's whereabouts." - Commonwealth v. Maguigan,511 A2d 1327 (Pa
SupCt 1986)

• Lawyer who learned from client's wife that client had left with
suitcase for "parts unknown" had firm factual basis for believing
client jumped bond and did not intend to appear for trial, thus had
duty to advise court to avoid assisting in criminal act. -
U.S. v. DelCarpio-Cotrina,733 FSupp 95 (DC SFla 1990)

223
• An attorney representing an individual who has violated the terms
of bail and fled the jurisdiction arguably has an even greater
obligation as an officer of the court to seek the prompt return
of the client in compliance with a judicial release order.

• An attorney “may not assist the [fugitive] client in any way that
the lawyer knows will further an illegal or fraudulent
purpose.”- Association of the Bar of the City of New York Formal
Opinion 1999-02

• Where an attorney believes, but does not know, conduct to be

illegal or fraudulent, the attorney may act on behalf of the
fugitive client, but “only after assuring him or herself that
there is reasonable support for an argument that the client’s
intended use of the fruits of the representation will not
further a criminal scheme or act. - Association of the Bar of
the City of New York Formal Opinion 1999-02

224
Conflict of interest in a
regular lawyer-client
relationship

225
 COI is everywhere
• Conflicts of interest are not the exclusive headache of large,
urban, multi-office law firms. Conflicts of interest arise within
and affect law practices of every size, geographical location
and discipline. The number of clients, adverse parties, and
interested non-parties with whom attorneys become involved
throughout their careers is truly staggering and invariably
underestimated.

Extreme case of Conflict of Interest

• The most obvious conflicts of interest are those in which the
lawyer's personal interests clash with those of the client.

Rule on Conflicting Interests

• It is generally the rule based on sound public policy that attorney
cannot represent diverse interest. It is highly improper to
represent both sides of an issue.

226
 Competitor Conflicts
• Courts have found that a competitor conflict is present when the
lawyer attempts to represent two competitors on a material aspect
of their competition.

Whose interest?
• It is, of course, a hornbook proposition that it is the client,
and not the lawyer, that defines the client's interests and
instructs the lawyer about them.

Degree of involvement
• The greater the involvement in the client's affairs the greater the
danger that confidences (where such exist) will be revealed.

“Closed file” conflicts

• Involve representation adverse to a former client in the same or
substantially related matters.

227
 Doctrine of “imputed knowledge”

• Doctrine of imputed knowledge is based on the assumption that an

attorney, who has notice of matter affecting his client, has
communicated the same to his principal in the course of
professional dealings. The doctrine applies regardless of whether
or not the lawyer actually communicated to the client what he
learned in his professional capacity, the attorney and his client
being one judicial person.

• Knowledge of one member of a law firm will be imputed by inference

to all members of that firm; free flow of information within the
partnership.

228
 Preliminary conflict of interest check

• Whenever a prospective client seeking legal assistance contacts an

attorney, the attorney should politely but firmly decline to
discuss the matter in detail until a preliminary conflict of
interest check can be performed.
• As the adjective suggests, preliminary conflict of interest
checks should ideally be performed before the prospective client
divulges additional confidential information which may conflict
the attorney out of current or future representations.
• 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.

229
 CANON 21 - A lawyer shall preserve the
confidence and secrets of his client even after
the attorney-client relation is terminated

• Rule 21.02 - A lawyer shall not, to the disadvantage of his client,

use information acquired in the course of employment, nor
shall he use the same to his own advantage or that of a third
person, unless the client with full knowledge of the circumstances
consents thereto.

• Rule 21.07 - A lawyer shall not reveal that he has been

consulted about a particular case except to avoid possible
conflict of interest.

230
 General Rule in a law firm

• Rule 21.04 - A lawyer may disclose the affairs of a client of

the firm to partners or associates thereof unless prohibited by
the client.

• An information obtained from a client by a member or assistant of a

law firm is information imparted to the firm. This is not a mere
fiction or an arbitrary rule; for such member or assistant, as in
our case, not only acts in the name and interest of the firm, but
his information, by the nature of his connection with the firm is
available to his associates or employers. – Hilado v. David, et.
Al., G.R. No. L-961, September 21, 1949

231
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 15.03. - 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 15.08. - 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.

232
 Confidentiality of information is not
relevant in COI
• The rule on conflict of interests covers not only cases in which
confidential communications have been confided but also those in
which no confidence has been bestowed or will be used. - Atty.
Jalandoni v. Atty. Villarosa, AC 5303, June 15, 2006

Unqualified opposing interest of new and former clients

• The rule prohibits a lawyer from representing new clients whose
interests oppose those of a former client in any manner, whether
or not they are parties in the same action or in totally
unrelated cases. - Atty. Jalandoni v. Atty. Villarosa, AC 5303,
June 15, 2006

233
• 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, and also whether he will be called upon
in his new relation to use against his first client any
knowledge acquire in the previous employment.

• The first part of the rule refers to cases in which the opposing
parties are present clients either in the same action or in a
totally unrelated case; the second part pertains to those in
which the adverse party against whom the attorney appears is his
former client in a matter which is related, directly or
indirectly, to the present controversy. - Atty. Jalandoni v. Atty.
Villarosa, AC 5303, June 15, 2006

234
 Counsel of corporation cannot represent
members of board of directors
• After due deliberation on the wisdom of this doctrine, we are
sufficiently convinced that a lawyer engaged as counsel for a
corporation cannot represent members of the same corporation’s board of
directors in a derivative suit brought against them. To do so would be
tantamount to representing conflicting interests, which is prohibited by
the Code of Professional Responsibility.( Hornilla v. Atty. Salunat, A.C.
No. 5804, July 1, 2003)

Degree of adverse interest, intention or motive are not material

• An attorney owes to his client undivided allegiance. After being
retained and receiving the confidences of the client, he cannot, without
the free and intelligent consent of his client, act both for his client
and for one whose interest is adverse to, or conflicting with that of
his client in the same general matter…. The prohibition stands even
if the adverse interest is very slight; neither is it material that
the intention and motive of the attorney may have been honest- Lim Jr.
v. Atty. Villarosa,

235
 As to who initiate engagement is
immaterial
• To negate any culpability, respondent explained that he did not
offer his legal services to accused Avila and Ilo but it was the
two accused who sought his assistance in executing their
extrajudicial confessions. Nonetheless, he acceded to their
request to act as counsel after apprising them of their
constitutional rights and after being convinced that the accused
were under no compulsion to give their confession. - Perez v. Atty.
Dela Torre, AC 6160, March 30, 2006

236
 Retained counsel of either party cannot
act as mediator without consent
• Even respondent’s alleged effort to settle the existing
controversy among the family members was improper because the
written consent of all concerned was still required. A lawyer
who acts as such in settling a dispute cannot represent any of
the parties to it. - Lim Jr. v. Atty. Villarosa, A.C. No. 5303,
June 15, 2006

• Rule 15.04. - A lawyer may, with the written consent of all

concerned, act as mediator, conciliator or arbitrator in settling
disputes.

237
 Nature of the case is irrelevant

• The claim of respondent that there is no conflict of interests in

this case, as the civil case handled by their law firm where
Gonzales is the complainant and the criminal cases filed by
Gonzales against the Gatcheco spouses are not related, has no
merit. The representation of opposing clients in said cases, though
unrelated, constitutes conflict of interests or, at the very least,
invites suspicion of double-dealing which this Court cannot
allow. - Gonzales v. Atty. Cabucana, A.C. No. 6836, January 23,
2006

238
 Dismissed employee and counsel of record
incompatible
• In the instant case, quite apart from the issue of validity of the
1990 compromise agreement, this Court finds fault in respondent's
omission of that basic sense of fidelity to steer clear of
situations that put his loyalty and devotion to his client, the
faculty members of UST, open to question. Atty. Mariño both as
lawyer and president of the union was duty bound to protect
and advance the interest of union members and the bargaining
unit above his own. This obligation was jeopardized when his
personal interest as one of the dismissed employees of UST
complicated the negotiation process and eventually resulted in the
lopsided compromise agreement that rightly or wrongly brought
money to him and the other dismissed union officers and directors,
seemingly or otherwise at the expense of the faculty members. - Dr.
Gamilla et. al. v. Atty. Mariño Jr., A.C. No. 4763, March 20, 2003

239
Client of law firm is the client of every
partners and associates

• Respondent further argued that it was his brother who represented

Gonzales in the civil case and not him, thus, there could be no
conflict of interests. We do not agree. As respondent admitted, it
was their law firm which represented Gonzales in the civil case.
Such being the case, the rule against representing conflicting
interests applies. - Gonzales v. Atty. Cabucana, A.C. No. 6836,
January 23, 2006

240
 Vicarious disqualification

• Traditionally, if a lawyer is ineligible to represent a particular

client, all members of the lawyer's firm also are ineligible.
• The basis for vicarious disqualification is the "presumption of
shared confidences," which seeks to prevent disclosure of client
confidences, preserve counsel loyalty, and avoid the appearance of
impropriety.

241
Professional engagement starts the moment
the lawyer listens to his prospective
client
• An attorney is employed that is, he is engaged in his professional
capacity as a lawyer or counselor when he is listening to his
client s preliminary statement of his case, or when he is giving
advice thereon, just as truly as when he is drawing his client s
pleadings, or advocating his client s pleadings, or advocating his
client s cause in open court. - Atty. Catalan v. Atty. Silvosa A.C.
No. 7360 [2012]

Good faith is not a defense

• Indeed, the prohibition against representation of conflicting
interests applies although the attorney’s intentions were honest
and he acted in good faith. - Atty. Catalan v. Atty. Silvosa A.C.
No. 7360 [2012]

242
 Consent ineffective
• A lawyer may not properly represent conflicting interests even
though the parties concerned agree to the dual representation
where:
1. the conflict is between the attorney’s interest and that of a
client, or
2. between a private client’s interests and that of the government
or any of its instrumentalities.
3. between an accused and counsel.

• Section 12. (Article III of the Constitution)

(1) Any person under investigation for the commission of an offense
shall have the right to be informed of his right to remain silent and
to have competent and independent counsel preferably of his own
choice. If the person cannot afford the services of counsel, he must
be provided with one. These rights cannot be waived except in writing
and in the presence of counsel.

243
 Three tests to determine conflicting
interests
• The first is when, on behalf of one client, it is the attorney’s
duty to contest for that which his duty to another client requires
him to oppose or when this possibility of such situation will
develop (conflicting duties).
• The second test is whether the acceptance of the new relation will
prevent a lawyer from the full discharge of his duty of undivided
fidelity and loyalty to his client or will invite suspicion of
unfaithfulness or double-dealing in the performance thereof
(Invitation of suspicion).
• The third test is whether a lawyer will be called upon in his new
relation to use against the first client any knowledge acquired in
the previous employment (use of prior knowledge obtained).
• Representing conflicting interests would occur only where the
attorney’s new engagement would require her to use against a
former client any confidential information gained from the
previous professional relation.
• The prohibition did not cover a situation where the subject matter
of the present engagement was totally unrelated to the previous
engagement of the attorney. - Seares, Jr. v. Atty. Gonzales- 244
• Remember: The test to determine whether there is a conflict of
interest in the representation is PROBABILITY, not certainty of
conflict.

• It is of no moment that the lawyer would not be called upon to

contend for one client that which the lawyer has to oppose for the
other client, or that there would be no occasion to use the
confidential information acquired from one to the disadvantage of
the other as the two actions are wholly unrelated. It is enough
that the opposing parties in one case, one of whom would lose
the suit, are present clients and the nature or conditions of the
lawyer’s respective retainers with each of them would affect the
performance of the duty of undivided fidelity to both clients. -
Quiambao v. Atty. Bamba, Adm. Case No. 6708 August 25, 2005

245
Effects of Representing Adverse Interests

1. Disqualification as counsel of new client on petition of

former client.
2. Where such is unknown to, becomes prejudicial interests of the
new client, a judgment against such may, on that ground be set aside.
3. A lawyer can be held administratively liable through
disciplinary action and may be held criminally liable for betrayal of
trust.
4. The attorney’s right to fees may be defeated if found to be
related to such conflict and such was objected to by the former
client, or if there was a concealment and prejudice by reason of the
attorney’s previous professional relationship with the opposite
party.

246
What are the types of conflict of
interest?

1. Concurrent or multiple or simultaneous representation:

» A lawyer represents clients whose objectives are
adverse to each other, no matter how slight or
remote these are
• Take note of this minimal degree
» Ex. A CPA-lawyer being part of a firm that
represents the estate and being part of the
accountancy firm that represents the creditors. The
conflict need not arise from two legal
relationships.
2. Sequential or successive representation:
» Representation of present client who may have an
interest adverse to prior client.

247
• Successive representation - when a lawyer or law firm seeks to
represent a client whose interests are adverse to a former
client without the former client's consent. The rule against
simultaneous representation is based principally on the duty of
undivided loyalty.

• Unlike simultaneous representation, successive representation is

not prima facie improper. The duty to preserve client
confidences is the primary ethical consideration implicated by
successive representation.

• Successive representation implicates both the duty of loyalty

and the preservation of the attorney-client relationship.

248
 Suspicion of Double-dealing even if the
case is unrelated

• We do not sustain respondent’s theory that since the ejectment

case and the replevin case are unrelated cases fraught with
different issues, parties, and subject matters, the prohibition
is inapplicable. His representation of opposing clients in
both cases, though unrelated, obviously constitutes conflict
of interest or, at the least, invites suspicion of double-
dealing. - Quiambao v. Atty. Bamba, Adm. Case No. 6708 August 25,
2005

249
 Does the lawyer have to be the counsel-
of-record for the other party to violate
this provision?
• To be guilty of representing conflicting interests, a counsel-of-
record of one party need not also be counsel-of-record of the
adverse party. He does not have to publicly hold himself as the
counsel of the adverse party, nor make his efforts to advance the
adverse party’s conflicting interests of record--- although these
circumstances are the most obvious and satisfactory proof of the
charge. It is enough that the counsel of one party had a hand in
the preparation of the pleading of the other party, claiming
adverse and conflicting interests with that of his original client.
To require that he also be counsel-of-record of the adverse party
would punish only the most obvious form of deceit and reward, with
impunity, the highest form of disloyalty. – Artezuela v. Atty.
Maderazo, A.C. No. 4354. April 22, 2002

250
Only instance when a lawyer can represent
conflicting interest
• A lawyer cannot represent conflicting interests except by written
consent of all concerned given after a full disclosure of the
facts. – Santos Ventura Hocorma Foundation, Inc. v. Atty. Funk,
A.C. No. 9094 August 15, 2012

251
 Limit of full disclosure

• A lawyer is forbidden from representing a subsequent client

against a former client 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. Conversely, he may properly act as counsel for a new
client, with full disclosure to the latter, against a former client
in a matter wholly unrelated to that of the previous
employment, there being in that instance no conflict of interests.
• Where, however, the subject matter of the present suit between the
lawyer’s new client and his former client is in some way
connected with that of the former client’s action, the lawyer
may have to contend for his new client that which he previously
opposed as counsel for the former client or to use against the
latter information confided to him as his counsel. - Pormento, Sr.
v. Atty. Pontevedra, A.C. No. 5128. March 31, 2005

252
 Purpose and intention is immaterial
• Respondent contends that he handled the defense of the accused in the
subject criminal case for humanitarian reasons and with the honest
belief that there exists no conflict of interests. However, the rule is
settled that the prohibition against representation of conflicting
interests applies although the attorney’s intentions and motives were
honest and he acted in good faith. Moreover, the fact that the
conflict of interests is remote or merely probable does not make the
prohibition inoperative. - Pormento, Sr. v. Atty. Pontevedra, A.C. No.
5128. March 31, 2005

Termination of A-C relations is not a justification

• Respondent also asserts that when he accepted employment in Criminal
Case No. 3159, the attorney-client relations between him and complainant
in Civil Case No. 1648 had already been terminated. This defense does
not hold water because 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. –
Pormento, Sr. v. Atty. Pontevedra, A.C. No. 5128. March 31, 2005

253
 Acquired knowledge of former client’s
doings is indelible
• The reason for this is that a lawyer acquires knowledge of his
former client's doings, whether documented or not, that he would
ordinarily not have acquired were it not for the trust and
confidence that his client placed on him in the light of their
relationship. It would simply be impossible for the lawyer to
identify and erase such entrusted knowledge with faultless
precision or lock the same into an iron box when suing the former
client on behalf of a new one. - Santos Ventura Hocorma Foundation,
Inc. v. Atty. Funk, A.C. No. 9094 August 15, 2012

254
 Good faith and honest intention is not a
defense
• That the representation of conflicting interest is in good faith
and with honest intention on the part of the lawyer does not make
the prohibition inoperative. - Quiambao v. Atty. Bamba, Adm. Case
No. 6708 August 25, 2005

• Although there are instances where lawyers cannot decline

representation, they cannot be made to labor under conflict of
interest between a present client and a prospective one. – Quiambao
v. Atty. Bamba, Adm. Case No. 6708 August 25, 2005

255
 The prohibition against conflict of
interest rests on five rationales,
rendered as follows:
• x x x. First, the law seeks to assure clients that their lawyers
will represent them with undivided loyalty. A client is entitled to
be represented by a lawyer whom the client can trust. Instilling
such confidence is an objective important in itself. x x x.
• Second, the prohibition against conflicts of interest seeks to
enhance the effectiveness of legal representation. To the extent
that a conflict of interest undermines the independence of the
lawyer’s professional judgment or inhibits a lawyer from working
with appropriate vigor in the client’s behalf, the client’s
expectation of effective representation x x x could be compromised.
- Samson v. Atty. Era, A.C. No. 6664 July 16, 2013

256
• Third, a client has a legal right to have the lawyer safeguard the
client’s confidential information xxx.1âwphi1 Preventing use of
confidential client information against the interests of the
client, either to benefit the lawyer’s personal interest, in aid
of some other client, or to foster an assumed public purpose is
facilitated through conflicts rules that reduce the opportunity for
such abuse.
• Fourth, conflicts rules help ensure that lawyers will not exploit
clients, such as by inducing a client to make a gift to the lawyer
xxx.
• Finally, some conflict-of-interest rules protect interests of the
legal system in obtaining adequate presentations to tribunals. In
the absence of such rules, for example, a lawyer might appear on
both sides of the litigation, complicating the process of taking
proof and compromise adversary argumentation x x x. - Samson v.
Atty. Era, A.C. No. 6664 July 16, 2013

257
 Informed consent must be written

• A client's implied consent is insufficient to waive a potential

conflict of interest.
• 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.
• While the respondent may assert that the complainant expressly
consented to his continued representation in the ejectment case,
the respondent failed to show that he fully disclosed the facts to
both his clients and he failed to present any written consent
of the complainant and AIB as required under Rule 15.03, Canon 15
of the Code of Professional Responsibility. - Quiambao v. Atty.
Bamba, Adm. Case No. 6708 August 25, 2005

258
 COI remains after termination of
attorney-client relationship
• The termination of the attorney-client relationship does not
justify a lawyer to represent an interest adverse to or in conflict
with that of the former client. The spirit behind this rule is that
the client’s confidence once given should not be stripped by the
mere expiration of the professional employment. Even after the
severance of the relation, a lawyer should not do anything that
will injuriously affect his former client in any matter in which
the lawyer previously represented the client. – Samson v. Atty.
Era, A.C. No. 6664 July 16, 2013

259
 Current observations husband and wife
lawyers in legal practice
• Where both husband and wife are lawyers but they are not practicing in
association with one another, may they or their firms represent
differing interests?
• Some firms apparently have been reluctant to employ one spouse-lawyer
where that person's husband or wife is, or may soon be, practicing
with another firm in the same city or area.
• Some law firms are concerned whether a law firm is disqualified, by
reason of its employment of one spouse, to represent a client opposing
an interest represented by another law firm that employs the husband
or wife of the inquiring firm's associate.
• It is not necessarily improper for husband-and-wife lawyers who are
practicing in different offices or firms to represent differing
interests. No disciplinary rule expressly requires a lawyer to decline
employment if a husband, wife, son, daughter, brother, father, or
other close relative represents the opposing party in negotiation or
litigation.

260
• Likewise, it is not necessarily improper for a law firm having a
married partner or associate to represent clients whose interests
are opposed to those of other clients represented by another law
firm with which the married lawyer's spouse is associated as a
lawyer.

• Married partners who are lawyers must guard carefully at all times
against inadvertent violations of their professional
responsibilities arising by reason of the marital relationship.

• The disqualification of married or related lawyers who oppose one

another professionally is not generally imputed to other lawyers in
the related lawyer's law offices.

• Such personal disqualification is not imputed to the spouses' firms

unless the lawyers have a personal interest in the outcome of the
case.

261
 Special circumstances that
highlight the concern
1. whether the fee of either firm is contingent,
2. whether the disputed matter is one of negotiation or litigation,
and whether the married lawyer in question will or will not
actually be working on the particular matter.
3. Another variation of the problem is the situation in which a
governmental agency, such as a district attorney or an attorney
general, is the employer of either the husband or the wife, and
the spouse is associated with a law firm in the same community.

262
 Concerns about husband & wife lawyers

• Yet it also must be recognized that the relationship of husband

and wife is so close that the possibility of an inadvertent
breach of a confidence or the unavoidable receipt of information
concerning the client by the spouse other than the one who
represents the client (for example, information contained in a
telephoned message left for the lawyer at home) is substantial.
Because of the closeness of the husband-and-wife relationship,
a lawyer who is married to a lawyer must be particularly careful.

Recommendations
• Married partners who are lawyers must guard carefully at all times
against inadvertent violations of their professional
responsibilities arising by reason of the marital relationship.

263
 Lawyer Relatives

• Ethical precepts admonish lawyers related by blood or marriage to

avoid adversarial representations without the informed consent of
the parties.
• Lawyers related by blood or marriage have long been permitted to
represent adversarial interests provided that a reasonable effort
is made to anticipate and expose potential conflicts to clients
before obtaining their consent to representation.
• Faced with client consent, courts have consistently required an
actual conflict of interest rather than simply the fact of
adversarial lawyer relatives before ordering disqualification.

264
 Personal Relationships

• A lawyer is romantically involved with the opposing party’s

attorney, or sexually involved with a client, the lawyer’s loyalty
or judgment can be impaired.
• Lawyers who are dating and also representing adversaries in
litigation should disclose their relationship if it is sufficiently
close that their clients might have questions about the lawyers'
ability to represent them zealously.
• Lawyers who are otherwise personally close should do likewise.
• The lawyer had enjoyed an "intimate physical relationship" with the
secretary and talked with her "about significant aspects of the
case," for which he was disqualified.
• A lawyer is prohibited from having sex with a client unless a
consensual sexual relationship existed prior to the start of
professional representation.

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 Duty to protect only matters acquired
during the lawyer-client relationship

• The intent of the law is to impose upon the lawyer the duty to
protect the client’s interests only on matters that he
previously handled for the former client and not for matters
that arose after the lawyer-client relationship has terminated. –
Palm v. Atty. Iledan, Jr. A.C. No. 8242 [2009]

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 Can a lawyer engaged by a corporation
defend members of the board of the same
corporation in a derivative suit?

• We are sufficiently convinced that a lawyer engaged as counsel for

a corporation cannot represent members of the same corporation’s
board of directors in a derivative suit brought against them. To
do so would be tantamount to representing conflicting interests,
which is prohibited by the Code of Professional Responsibility.
• Furthermore, this restriction on dual representation should not be
waivable by consent in the usual way; the corporation should be
presumptively incapable of giving valid consent. – Hornilla v.
Atty. Salunat, A.C. No. 5804. July 1, 2003

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