A LAWYER SHALL NOT COMMIGLE CLINETS FUDS (RULE 16.02) Rule 16.

6.02 - A lawyer shall keep the funds of each client separate and apart from his own and those of others kept by him. Should not commingle a clients money with that of other clients and with his private funds, nor use the client money for his personal purposes without the clients consent. The high fiduciary and confidential relation of attorney and client requires that the lawyer should promptly account for all the funds or held by him for the clients benefits. The lawyer is not relieved of the obligation to make a proper accounting even if he has an attorneys lien over the clients money or funds in his possession. The lawyer in under strict obligation to label and identify his clients property and keep it separate and apart from his own.

C. RESTRICTIONS AGAINST BUYING CLIENTS PROPERTY PURCHASE OF CLIENTS PROPERTY IN LITIGATION The prohibition is entirely independent of any fraud that might arise. It stands on the moral obligation of an attorney to refrain from placing himself in a position which ordinarily excites conflict between self-interest and integrity.

APPLICATION OF THE RULE The rule forbidding the an attorney from purchasing his clients property or interest in litigation involves four elements: a. there must be an attorney and client and relationship. b. the property or interest of the client must be in litigation. c. the attorney takes part as counsel in the case d. the attorney by himself or through another purchases such property or interest during the pendency of the litigation. The presence of the foregoing elements makes the acquisition by a lawyer of his clients property in litigation violative of the law and renders his conduct ethically improper. The prohibition applies even if the purchase or lease of the property in litigation is in favor of a partnership, of which counsel is a partner for the rule otherwise is to circumvent the law. A lwyer who executed with his client A transfer of right over A pArcel of lAnd involved in A pending litigation As his Attorneys fees violates the rules prohibiting the purchase of property in litigation by A lAwyer from his client. The purchase of rights constitutes mAlprActice.

A LAWYER SHALL DELIVER FUNDS TO CLIENT, SUJECT TO HIS 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
LAWYERS RETAINING LIEN a lawyer have a lien over the clients funds and may apply so much thereof to satisfy his lawful fees and disbursements but must give prompt notice to his client for the latters advertisement. CHARGING LIEN for the further protection of the lawyer, he shall also have a lien to the extent of his attorneys fees and legal disbursements on all judgments and executions he has secured for his client as provided for in the rules. Under the rule 138, section 37 of the rules of court, the attorney cannot be compelled to surrender the documents in his possession without prior proof that his fees have been duly satisfied. But if it be entirely indispensable for the court to gain possession are held by him in the course of his employment as counsel. It can require surrender thereof by requiring the client or clamant to first file proper and adequate security for the lawyers compensation. The provision grants the lawyer a lien over the clients funds in his possession as well as on all judgments and executions he has secured for his client, to satisfy his lawful fees and disbursements.

WHERE A RULE INAPPLICABLE the absence of any of the elements constitutes of the rule forbidding a lawyer from purchasing his clients property in litigation render the prohibition inapplicable . it has been held that the prohibition does not apply where the property purchsed by a lawyer was not involved in the suit where the attorney at the time of the purchse was not counsel in the case wher the purchser of the property in

litigtion was an officer of the court or when the sale took place after the termintion of the litigtiomn. the prohibition does not apply to the sale by the client to his attorney of a prcel of land, acquired by the client to stisfy the judgment in his fvor as long as the property was not the subject of the litigation. the prohibition applicable to a contract for attorneys fee contingent upon the outcome of the litigation.

EFFECTS OF PROHIBITED PURCHSE THE PRURCHSE BY aN Attorney of his clients property or interest in litigation is a breach of professional ethics. The attorney in an appropriate case may be disciplined for such misconduct. The transaction being prohibited by law is null and void.

The rule applies to matters disclosed to him by prospective clients. It is the glory of the legal profession that its fidelity to its client can be depended on and that a man safely go to a lawyer and converse with him upon his right supposed rights in any litigation with absolute assurance that the lawyers tongue is tied. Confidence refer to information by the attorney client privilege . Secrets refer to the other information gained in the professional relationship that the client has regulated to be held inviolate or the disclosure of which would be embarrassing or would likely be detrimental to the client.

To attain such ends the rules implementing such canon require: 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. 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 interests.

Purchase of choses in action It also improper for a lawyer in his professional capacity to buy judgment notes or other chooses in action for much less than their face value with intent to collect them at large profit for himself. Properly acquire chooses in action not his professional capacity but as a legitimate investments. The fact that a person hppens to be A lwyer does not deprive him of the privelge to engage in business activites As enjoyed by any such Act As mAy bring dishonor to the profession or violate any of its ethical rules concerning advertising or solicitation of business. CHAPTER 9 LAWYERS DUTY TO PRESERVE CLIENTS CONFIDENCE A. PRESERVATION OF CLIENTS CONFIDENCE

DUTY TO PRESERVE CLIENTS CONFIDENCE, GENERALLY (CANON 21.00)

A LAWYER SHALL PRESERVE THE CONFIDENCE AND SECRETS OF HIS CLIENT EVEN AFTER THE ATTORNEY-CLIENT RELATION IS TERMINATED.

It is the duty of an attorney to maintain inviolate the confidence and at every to peril himself to preserve the secret of his client. The performance of such duty involves the application of rules of evidence and professional ethics of both of which seek to safeguard the clients confidence. An attorney cannot without the consent of his client be examined as to any communication made by the client to him nor can an attorneys 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. The duty to preserve the clients secret arises from the moment the attorney client relationship is established. A clients communication intended for a third party is not privilege.

A lawyer shall not give information from his files.( 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. The reason for the rule is that the work product of a lawyer, such as his effort, research and thought and the records of his client contained in files r privileged matters. A lawyer may disclose affairs of client to partners (rule 2.04) The rule is tht the professionl employment of a lw firm is equivalent to the retainer of the members thereof even though the only one of them is consulted; coverseely the employment of the lw firm. Note; disclosure to firm partners or associates generally allowed because professional employment of a law firm is equivalent to retainer of members thereof. In a law firm or associates usually consult one another involving their cases and some work as a team. Consequently it cannot be voided that some information about the case received from the client to the partners or associates A LAWYER SHALL ADOPT MEASURES AGAINST DISCLOSURE OF CLIENTS SECRETS. (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. In the discharge of hi professional duties to a client a lawyer may avail of the clerical aids of secretaries, stenographers or clerks as well as the parties of accountants, physicians, investigators, engineers or technicians. The lawyer is obliged to exercise care and in selecting and training his employees so that the sanctity of all confidences and secrets of his clients may be preserved. A LAWYER SHALL AVOID INDISCREET CONVERSATION ABOUT CLIENTS AFFAIRS (RULE 21.6) A lawyer shall avoid indiscreet conversation about a client's affairs even with members of his family.

DURATION OF DUTY It outlasts his professional employment and continues even after the clients death for professional confidence once reposed cannot be divested by the expiration of the professional relationship or by the death of the client.. As a general rule, the protection of the attorney and client privilege is perpetual. The seal of the law once fixed upon communications between attorney and client remains forever unless removed by the client himself or after the death by his heir or legal representative. Reason for the rule Adequate legal requirement in the ascertainment and enforcement of rights or the protection or defense of litigations requires a full disclosure of the facts by the client to his attorney. The purpose of the attorney client privilege is to encourage a client to make a full disclosure to his a attorney and to place unrestricted confidence. The prohibition against disclosure of confidential communications is moreover designed to preserve the confidential and trust relation which exist between attorney and client. A lawyer shall not use clients secrets without his consent The lwyers duty to preserve the confidence nd secrets of his client requires tht he shll not the dvntge of his client use information acquired in the courts of employment nor he shall use the same to his own advantage or that of a third person unless the client with full knowledge of the circumstances consents thereto.

This rule is intended to better preserves the clients confidence and secrets. For indiscreet conversation can result in prejudice to the client and will lessen the respect due the legal profession. A LAWYER SHALL NOT REVEAL HIS HAVING BEEN CONSULTED (RULE 21.7) A lawyer shall not reveal that he has been consulted about a particular case except to avoid possible conflict of interest The rule on privileged communication applies to matter disclosed to a lawyer by a prospective client. The reason is that the disclosure and the lawyers opinion thereon create an attorney client relationship, even though the lawyer does not eventually accept the employment. If a lawyer was consulted about a particular case, and irrespective of whether or not he was thereafter hired as counsel should not reveal to others the subject matter of consultation. B. SCOPE OF ATTORNEY AND CLIENT PRIVELEGE REQUISITES OF PRIVELEGE 1. 2. 3. 4. 5. 6. 7. 8. Where legal advice of any kind is sought From a professional legal adviser in his capacity as such. The communications relating to that purpose Made in confidence By the client Are at his instance permanently protected From his disclosure by himself or by the legal advisor Except the protection be waived.

CONFIDENTIALITY The mere relation of attorney and client and does not raise a presumption of confidentiality. The essence of the veil of secrecy which surrounds communication is intended by the client not for the information of a third person but for the purpose of seeking legal advise from his attorney as to his rights or obligations. A confidential communication refers to information transmitted by voluntary act of disclosure between attorney and client is aware discloses the information to no third person other than one reasonably necessary for the transmission of the information or the accomplishment of the purpose for which was given.

Form or mode of communication The attorney-client privilege embraces not only oral or written statements but actions, sign or other means of communication. A communication maybe transmitted by any form of agency, such as through a messenger, and an interpreter or any other form of transmission. The privilege is not confined to verbal or written communications made by the client to his attorney but extends as well to information communicated by the client to the attorney by other means.

Persons entitled to claim privilege Generally. The attorney client privilege extends to the attorney and his client as well as to the attorneys secretary, stenographer or clerk with reference to any fact acquired in such capacity. an expert such as an account a scientist, an engineer or a physician, who has been hired either by a client or an attorney for effective consultation or communication between attorney and client is covered by the privilege and is precluded from testifying as to any information acquired in the course of employment. The attorney and client privilege is intended primarily for the protection of the client ad incidentally in consideration for the oath and honor of the attorney. The client is entitled primarily assert the privilege and any other person to whom the privilege extends cannot compelled to disclose any confidential confidential communication without his consent.

RELATION OF ATTORNEY AND CLIENT If a person poses as a lawyer for some ulterior purpose and a client confides to him confidential communications in reliance upon the supposed relation of attorney and client, the mantle of the attorney client privilege protects such communications. The relation of attorney and client by reason of which the client made the communication. A communication from a client to a lawyer for some purpose other than on account of the attorney client relation is not privilege.

Application of rule The knowledge or information acquired by a lawyer in his professional capacity from his client may either be privileged or not privileged within the meaning of the evidentiary rule against compelling the disclosure of privileged communications.

The privilege does not as a rule attach to communications concerning the creation of the usual privileged communication in the absence of any factor justifying their disclosure.

c. exceptions to rule on privilege Exceptions to rule against disclosure of clients secrets (rule 20.01)

Privileged matters A document privileged upon delivery to an attorney retains its privileged character in the hands of his client. A privileged document may include a report of a physician an accountant and engineer or a technicians whose services have been secured by a client as part of his communication to his attorney or by the attorney to assists him render effective legal assistance to his client. The attorney client privilege extends to non-disclosure of the name of the client where a strong possibility exists that revealing the clients name would implicate the client in the very activity for which he sought the clients advice or where the disclosure would open the client to civil liability. a. b. c. d. e. A lawyer shall be guided by the following factors in determining his fees. The time spent and the extent of the services rendered or required. The novelty and difficulty of the question involved The importance of the subject matter The skill demanded 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 The additional exceptions refer to the commission of a contemplated crime or the perpetuation of a fraud the relation of attorney and client being for lawful and honest purposes only. Clients waiver of privilege The attorney client privilege against disclosure of the clients protection only the client as a rule can waive the privilege. The protection of the attorney client privilege has reference to communications which are legitimately and properly within the scope of a lawful employment and does not extend to those made in contemplation of a crime or perpetuation of a fraud. For the application of the attorney client privilege the communication was made by the client to the attorney in relation to either a crime was committed in the past or with respect to a crime intended to be committed in the future.

If the identification of a client conveys information which ordinarily would be part of the usual privileged communication between attorney and client the privileged extends to such identification in the absence of such factors: a. b. c. d. The commencement of litigation on behalf of the client. The identification relating to an employment of a third person. The employment of an attorney with respect to future criminal fraudulent transaction. The prosecution of a lawyer for criminal offense Suing the lawyer to force him to disclose the identity of his client in any of these instances is improper and the suit upon motion may be dismissed on such ground.

Matters not privileged Generally, any communication between attorney and client which lack any one of the elements that make the attorney client privilege is not a privileged. A letter written by counsel which has not been made in the course of judicial proceedings is not privileged.

Communication as to privilege Communication relating to fraud already committed is privileged, a communication seeking advice as to the commission of a fraud or the establishment of a false claim is an exception to the privilege. the principle rendering a communication of a client as to his announced intention to commit a crime unprivileged is equally applicable to a communication seeking the accomplishment of a fraud. CHAPTER 10 LAWYERS DUTIES OF FAIR DEALINGS AND AVOIDING CONFLICT OF INTERESTS a. fairness in dealings with client

A lawyer should decline professional employment even though how attractive the fee offered nay be if its acceptance will involve a violation of any of the rules of the legal profession. He may not accept employment from another in a matter adversely affecting any interest of his former client with respect to which confidence has been imposed. A lawyer should not accept employment as an advocate in any matter in which he had intervened while in the government service. He may not accept employment from an organization to render legal services to members thereof concerning questions submitted by the members the answers to which are printed for circulation. He may refuse to accept representation of an indigent client if he is not in a position to carry it out effectively or competently or he labors under a conflict of interest between him and the prospective client a present client and the prospective client. A lawyer shall preserve the secrets of a prospective client. (rule 15.02) The lawyer bound y the rule on privileged communication in respect of matters disclosed to him by a prospective client. The reason for the rule is to make the prospective client free to discuss whatever he wishes with the lawyer without fear that what he tell s the lawyer will not be divulged nor use against him and for the lawyer to be equally free to obtain information from the prospective client. The purpose of the attorney client relationship is two fold: a. To encourage a client to make a full disclosure of the facts of the case to his counsel without fear or favor. b. To allow the lawyer to obtain full information from his client. A lawyer shall preserve the confidence and secrets of his client even after the attorney client relation is terminated. A LAWYER MAY ACT AS MEDIATOR (RULE 15.4) A lawyer may with the written consent of all concerned act as mediator, conciliator or arbitrator in setting disputes. A lawyers knowledge OF THE LAW and his reputation for fidelity may make it easy for the disputants to settle their differences amicably. However the lawyer should not act as counsel to any of them. The lawyer shall not act as counsel for any of them, otherwise the rule prohibiting representation of conflict of interests will apply. B.REPRESENTING CONFLICTING INTERESTS

duty to be candid, fair and loyal in all dealings with client, generally (canon 15) -A LAWYER SHALL OBSERVE CANDOR, FAIRNESS AND LOYALTY IN ALL HIS DEALINGS AND TRANSACTIONS WITH HIS CLIENTS. Generally the relation of attorney and client is strictly personal and highly confidential and fiduciary. it is based on the hypothesis that abstinence from seeking legal advice in a good cause is an evil which is fatal to the administration. A lawyer shall ascertain possible conflict of interests. (rule 15.010 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. It is the duty of a lawyer to disclose and explain to a prospective client all circumstances of his relations to the parties and any interest in or connection with the controversy which in his honest judgment might influence the client in the selection of counsel. The disclosure is more for the protection of the lawyer than that of the client.

Duty to decline employment

A LAWYER SHALL NOT REPRESENT CONFLICTING INTERESTS. (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. GENERALLY there is inconsistency of interest within the meaning of the prohibition when, on behalf of one client, it is the attorneys duty to contend for that which his duty to another client requires him to oppose or when the possibility of such situation develops. This rules 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. 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 matter which is related directly or indirectly. The second part of the rule 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. Test of inconsistencies of interest: Whether the acceptance of a new relation would prevent the full discharge of the lawyers duty of undivided fidelity and loyalty to the client or invite suspicion of unfaithfulness or double dealing in the performance of that duty. The test to determine whether there is a conflict of interest is probability not certainty of conflict. The rule against representing conflicting interest applies eve if the conflict pertains to the lawyers private activity or in the performance in a non-professional capacity and his presentation as a lawyer regarding the same subject matter. Lawyers re expected not only to keep inviolate the clients confidence but also to avoid the appearance of treachery and double dealing for only then can litigants be encouraged to entrust their secrets to their lawyers which is of paramount importance in the administration of justice. The reason for the rule is that the clients confidence once reposed cannot be divested by the expiration of the professional employment. The reason for the prohibition is found in the relation of attorney and client which is one of trust and confidence of the highest degree. Test to determine if there is a representation of conflicting interest: 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. The reason for the prohibition is found in the relation of attorney and client which is one of trust and confidence of the highest degree