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.

• Not bound to accept all cases; Restrictions

• How to deal with guilty clients
• Applicable only in criminal cases, not civil cases
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.

Definitions: Counsel de oficio, Amicus

Curiae
Rule 14.03 - A lawyer may not refuse to
accept representation of an indigent
client unless:
(a) he is not in a position to carry out the
work effectively or competently;
(b) he labors under a conflict of interest
between him and the prospective client
or between a present client and the
prospective client.
Rule 14.04 - A lawyer who accepts the
cause of a person unable to pay his
professional fees shall observe the same
standard of conduct governing his
relations with paying clients.
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.
• MEJIA V. REYES
• Lawyers are prohibited from representing
conflicting interests in a case as this would
constitute as malpractice.
• Kinds of Conflict of Interest:
• Concurrent (Multiple) Representation
– Generally occurs when a lawyer represents
clients whose objectives are adverse to each
other, no matter how slight or remote such
adverse interest may be.
• Sequential (Successive)Representation
– Generally occurs when a law firm takes a
present client who has an interest adverse to
the interest of a former client of the same law
firm.
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.

Relate to:
Canon 21: even after termination of the relationship.
Rule 21.01: Exceptions:
(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.
Requisites of privileged communication:
1. Existence of an attorney-client relationship
or a kind of consultancy relationship with a
prospective client;
2. Communication must be made to the lawyer
in the course of the lawyer’s professional
employment; and
3. The communication must be intended to be
confidential.
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.

• SIBULO v. CABRERA, AC No. 4218, 7/20/2000

• Respondent was bound to faithfully represent his client
in all aspects of subject civil case. When he agreed to
represent the defendant and later on, also the plaintiff
in the same case, he could no longer serve either of
his said clients faithfully, as his duty to the plaintiff
did necessarily conflict with his duty to the
defendant. The relation of attorney and client is based
on trust, so that double dealing which could
sometimes lead to treachery, should be avoided.
• SAMALA v. VALENCIA
• The stern rule against representation of
conflicting interests is founded on principles
of public policy and good taste. It springs
from the attorney's duty to represent his
client with undivided fidelity and to maintain
inviolate the client's confidence as well as
from the injunction forbidding the
examination of an attorney as to any of the
privileged communications of his client.
• CASTRO-JUSTO v. GALING
• The prohibition against representing
conflicting interest is founded on principles of
public policy and good taste. In the course of
the lawyer-client relationship, the lawyer
learns of the facts connected with the client’s
case, including the weak and strong points of
the case. The nature of the relationship is,
therefore, one of trust and confidence of the
highest degree.
• HOCORMA FOUNDATION, INC. v. FUNK
• An attorney may not, without being guilty of
professional misconduct, act as counsel for a
person whose interest conflicts with that of his
present or former client. This rule is so absolute
that good faith and honest intention on the
erring lawyer’s part does not make it
inoperative. 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.
Rule 15.04. - A lawyer may, with the
written consent of all concerned, act as
mediator, conciliator or arbitrator in
settling disputes.
Rule 15.05. - A lawyer when advising his
client, shall give a candid and honest
opinion on the merits and probable
results of the client's case, neither
overstating nor understating the
prospects of the case.
Rule 15.06. - A lawyer shall not state or
imply that he is able to influence any
public official, tribunal or legislative
body.
Rule 15.07. - A lawyer shall impress upon
his client compliance with the laws and
the principles of fairness.
• RURAL BANK OF CALAPE, INC. v. FLORIDO
• A lawyer’s duty is not to his client but to the
administration of justice. To that end, his
client’s success is wholly subordinate. His
conduct ought to and must always be
scrupulously observant of the law and ethics.
Any means, not honorable, fair and honest
which is resorted to by the lawyer, even in the
pursuit of his devotion to his client’s cause, is
condemnable and unethical.
Rule 15.08. - A lawyer who is engaged in
another profession or occupation
concurrently with the practice of law
shall make clear to his client whether he
is acting as a lawyer or in another
capacity.
 CANON 16 - A LAWYER SHALL HOLD IN TRUST
ALL MONEYS AND PROPERTIES OF HIS
CLIENT THAT MAY COME INTO HIS
PROFESSION.
Rule 16.01 –16.04
- To account.
- Keep separate and apart.
- To deliver, subject to lien.
- Rule on borrowing/lending money.
• Definition:
• Retaining Lien
– Attorney’s lien over the property of the client held
by the lawyer to apply to his claims upon due
notice to the client.
• Charging Lien
– a lien upon all judgments for the payment of
money and executions issued in pursuance of such
judgments; a lawyer causes a statement of his
claim of such lien to be entered upon the records
of the court that rendered judgment or issuing
execution with written notice to the client and
adverse party (Rule 138, Sec. 37, Rules of Court).
 RETAINING LIEN CHARGING LIEN
1. Nature Passive Lien: It cannot be actively Active Lien: It can be enforced
enforced. It is a general lien. by execution. It is a special lien.
2. Basis Lawful possession of papers, Securing of a favorable money
documents, property belonging to judgment for the client.
client.
3. Coverage Covers only papers, documents and Covers all judgments for the
property in the lawful possession of payment of money and
the attorney by reason of his executions issued in pursuance
professional employment. of such judgments.
4. When Lien As soon as the attorney gets As soon as the claim for
takes effect possession of the papers documents attorney’s fees had been
or property. entered into the records of the
case.
5. Notice Client need not be notified to make Client and adverse party must
it effective. be notified to make it effective.
6. Applicability May be exercised before judgment or Generally, it is exercisable only
execution or regardless thereof. when the attorney had already
secured a favorable judgment
for his client.
• ARROYO-POSIDIO v. VITAN, AC No. 6051,
4/2/2007
• The lawyer’s failure to return the money of his
client upon demand gave rise to a
presumption that he has misappropriated
said money in violation of the trust reposed
on him. The conversion by a lawyer [of] funds
entrusted to him by his client is a gross
violation of professional ethics and a betrayal
of public confidence in the legal profession.
• PARIÑAS v. PAGUINTO
• Acceptance of money from a client establishes
an attorney-client relationship and gives rise
to the duty of fidelity to the client’s cause.
Money entrusted to a lawyer for a specific
purpose, such as for filing fee, but not used
for failure to file the case must immediately
be returned to the client on demand.
Respondent returned the money only after
complainant filed an administrative case for
disbarment.
• REYES v. MAGLAYA, AC No. 2125, 4/3/1995
• By the unexplained failure to return the
amount of P1,500.00 demanded by
complainant-client receipt of which
respondent had acknowledged and which he
had agreed to return at the earliest possible
opportunity, respondent failed to live up to his
duties as a lawyer. His inexcusable act of
withholding money belonging to his client
warrants the imposition of disciplinary
sanction.
• MENESES v. MACALINO
• When a lawyer receives money from the client
for a particular purpose, the lawyer is bound
to render an accounting to the client showing
that the money was spent for the intended
purpose. Consequently, if the lawyer does not
use the money for the intended purpose, the
lawyer must immediately return the money
to the client.
• BARCENAS v. ALVERO
• Jurisprudence dictates that a lawyer who
obtains possession of the funds and
properties of his client in the course of his
professional employment shall deliver the
same to his client (a) when they become due,
or (b) upon demand. In the instant case,
respondent failed to account for and return
the P300,000.00 despite complainant’s
repeated demands.
• ARELLANO UNIVERSITY, INC. v. MIJARES III
• Every lawyer has the responsibility to protect
and advance the interests of his client such
that he must promptly account for whatever
money or property his client may have
entrusted to him. As a mere trustee of said
money or property, he must hold them
separate from that of his own and make sure
that they are used for their intended purpose
A lawyer’s conversion of funds entrusted to
him is a gross violation of professional ethics.
• IGUAL v. JAVIER
• Respondent claims the money given him is an
acceptance fee. But, as known by respondent,
ambiguities in contracts prepared by him, are
construed against him, and thus, if the receipt does
not specify that it is such an acceptance fee, it
cannot be treated as such. When it comes to fees,
the amount and purpose must be clearly stated.
Otherwise said contracts are interpreted against
the lawyer who is presumed to know better on
such legal matters as against his client, as in this
case, who is not a lawyer.
 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.
• TAHAW v. VITAN, AC No. 6441, 10/21/2004
• When a lawyer takes a client’s cause, he thereby
covenants that he will exert all effort for its
prosecution until its final conclusion. Thus, when
respondent’s services were engaged by complainant,
the former took it upon himself to perform the legal
services required of him. In the instant case, however,
respondent seemed to have forgotten his sworn duty
after he received the money from his client.
 CANON 18 - A LAWYER SHALL SERVE HIS
CLIENT WITH COMPETENCE AND
DILIGENCE.

Rules 18.01 – 18.04

- Qualified or not? Collaborating Counsel?
- With adequate preparation.
- Effect of lawyer’s negligence.
- Provide necessary information to client.
• BARBUCO v. BELTRAN
• Failure to file brief within the reglementary
period constitutes inexcusable negligence.
That Respondent was suffered physical
injuries from a vehicular accident cannot
serve to excuse him from filing his pleadings
on time considering that he was a member
of a law firm composed of not just one
lawyer. He could have asked any of his
partners in the law office to file the brief or,
at least, to seek extension of time to file such
pleading.
• CUIZON v. MACALINO
• It is axiomatic that no lawyer is obliged to act
either as adviser or advocate for every person
who may wish to become his client. However,
once he agrees to take up the cause of a
client, the lawyer owes fidelity to such cause
and must always be mindful of the trust and
confidence reposed in him. He must serve his
client with competence and diligence, and
champion the latter’s cause with whole-
hearted fidelity.
• VILLARIASA-RIESENBECK v. ABARRIENTOS
• A lawyer must not keep a client in the dark as to
the status of and developments in the client’s
case. The lawyer is obliged to respond within a
reasonable time to a client’s request for
information. A client is entitled to the fullest
disclosure of the mode or manner by which that
client’s interest is defended or why certain steps
are taken or omitted. A lawyer who repeatedly
fails to answer the inquiries or communications of
a client violates the rules of professional courtesy
and neglects the client’s interests.
 CANON 19 - A LAWYER SHALL REPRESENT
HIS CLIENT WITH ZEAL WITHIN THE
BOUNDS OF THE LAW.
Rule 19.01 – 19.03
- Employ only fair and honest means.
- Lawyer’s obligation if a client
perpetuated a fraud.
- Do no allow client to dictate the
procedure in handling the case.
• PENA v. APARICIO
• While a lawyer shall represent his client with zeal
within the bounds of law, his duty is not to his
client but to the administration of justice – his
client’s success is wholly subordinate and his
conduct must always be scrupulously observant of
law and ethics. The writing of demand letters is
standard practice and tradition in this jurisdiction,
but, the letter in this case contains more than just a
simple demand to pay containing as it did a threat
to file retaliatory charges against Complainant
which have nothing to do with his client’s claim.
• MILLARE v. MONTERO
• Under Canon 19 of the Code of Professional
Responsibility, a lawyer is required to
represent his client "within the bounds of the
law." The Code enjoins a lawyer to employ
only fair and honest means to attain the
lawful objectives of his client (Rule 19.01) and
warns him not to allow his client to dictate the
procedure in handling the case (Rule 19.03). In
short, a lawyer is not a gun for hire.
• ONG v. UNTO
• While a lawyer owes absolute fidelity to the cause of
his client, full devotion to his genuine interest, and
warm zeal in the maintenance and defense of his
right, as well as the exercise of his utmost learning
and ability, he must do so only within the bounds of
the law. He must give a candid and honest opinion
on the merits and probable results of his client’s case
with the end view of promoting respect for the law
and legal processes, and counsel or maintain such
actions or proceedings only as appear to him to be
just, and such defenses only as he believes to be
honestly debatable under the law.
CANON 20 - A LAWYER SHALL CHARGE ONLY FAIR
AND REASONABLE FEES.
Rule 20.01 -20.04
- Factors in determining fees:
- time/extent of service, novelty/difficulty,
importance, skill demanded, probability of losing
employment, customary charges, amount involved,
certainty of compensation, character of
employment, professional standing of lawyer.
- Referral of cases.
- Acceptance of fees other than from client.
- Avoid controversies concerning compensation.
• Two concepts of Attorney’s Fees
1. Ordinary
- The reasonable compensation paid to a lawyer
for the legal services he has rendered to a
client. The basis of this compensation is the fact
of employment by the client.
2. Extraordinary
- The indemnity for damages ordered by the
court to be paid by the losing party to the
prevailing party in litigation. This is payable to
the client and not to the lawyer unless
otherwise agreed.
• Form of employment; commencement of
employment
– Oral, written or express.
– Meeting of the minds
• Kinds of payment which may be stipulated:
– Fixed or absolute fee
– Contingent fee
– Fixed fee payable per appearance
– Fixed fee computed by the number of hours spent
– Fixed fee based on piece work
• Retainer- Fee or Extent of Service.
• Kinds of Retainer Agreements
1. General Retainer or Retaining Fee
- Fee paid to secure a lawyer’s future
services as general counsel for any
ordinary legal business.
2. Special Retainer
- Fee for a specific case or service rendered
for a client.
• Attorney’s Fees based on Quantum Meruit
– “as much as he has deserved”
– Authorized when:
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 contact, the fees
stipulated are found to be unconscionable;
3. When contact for attorney’s fees is void due to purely
formal matters or defects of execution;
4. When for justifiable reasons the counsel is unable to
finish the case;
5. When contract is disregarded as though there was no
express stipulation.
• Definition:
• Champertous Contracts
– Lawyer stipulates with his client that in the
prosecution of the case he will bear all the
expenses for the recovery of the things or
property being claimed by the client and the
latter agrees to pay the former a portion of the
thing or property recovered as compensation.
• Contingent Fee
– Payment to an attorney for legal services that
depends, or is contingent, upon there being
some recovery or award in the case. The
payment is then a percentage of the amount
recovered.
 CANON 21 - A LAWYER SHALL PRESERVE THE CONFIDENCE
AND SECRETS OF HIS CLIENT EVEN AFTER THE
ATTORNEY-CLIENT RELATION IS TERMINATED.
Rule 21.01 -21.07
- Do not reveal confidences or secrets, exceptions.
- Do not use information acquired.
- Do not give out information w/o client’s written
consent.
- Application of the rules to law firms.
- Adopt appropriate measures.
- Avoid indiscreet conversations.
- Do not reveal consultation done.
• SUNTAY v. SUNTAY, AC No. 1890, 8/7/2002
– A lawyer shall preserve the confidences and secrets
of his clients even after termination of the attorney-
client relation.
– [T]he question is not necessarily one of the rights of
the parties, but as to whether the attorney has
adhered to proper professional standard. With
these thoughts in mind, it behooves attorneys, like
Caesar’s wife, not only to keep inviolate the client’s
confidence, but also to avoid the appearance of
treachery and double-dealing. Only thus can
litigants be encouraged to entrust their secrets to
their attorneys which is of paramount importance in
the administration of justice.
 CANON 22 - A LAWYER SHALL WITHDRAW HIS SERVICES ONLY
FOR GOOD CAUSE AND UPON NOTICE APPROPRIATE IN THE
CIRCUMSTANCES.
Rules 22.01-22.02
- When may a lawyer withdraw his services:
- Client pursues illegal or immoral course of conduct
- Client’s insistence of pursuing a conduct violative of the
canons
- Inability to work with co-counsel
- Due to mental or physical condition
- Client deliberately fails to pay fees
- Lawyer is elected or appointed to public office
- Other similar cases
- Obligation of the lawyer after withdrawal or discharge of
services
• Appearance- act of submitting or presenting
on presenting oneself to the court, either as
plaintiff or defendant, personally or through
counsel, and seeking general reliefs or special
reliefs from the court.
• Jurisdiction is acquired.
• Civil cases- plaintiff: filing of complaint
- defendant : filing of answer
: voluntary appearance
• Kinds of Appearance:
1. General Appearance- the kind where the party
comes to court either as plaintiff or defendant
and seeks the general reliefs from the court for
the satisfaction of his claims and counterclaims
respectively.
2. Special Appearance –the kind where a defendant
appears in court solely for the purpose of
objecting to the jurisdiction of the court over his
person and seeks the dismissal of the case. If
defendant would seek other reliefs then it ceases
to be a special appearance even if it is
denominated as such.
• Withdrawal of Counsel
• Written consent of the client or by permission of
the court after due notice and hearing.
• The name of the new attorney shall be recorded in
the case.
• Substitution of Counsel
• With written application;
• Written consent of the client;
• Written consent of the attorney to be substituted;
• If the consent of the attorney cannot be obtained,
there must be at least a proof of notice that the
motion for substitution has been served upon him
in the manner prescribed in the rules.
• Retaining Lien
– A passive lien and may not be actively
enforced. It amounts to a mere right to retain
the papers as against the client until the lawyer
is fully paid.
• Charging Lien
– The equitable right of the attorney to have the
fees due him for services in a particular suit
secured by the judgment or recovery in such
suit. The object of this lien is to protect the
claim on the fruits of the lawyer’s labor.