Rule 8.07 A lawyer shall not commingle clients funds.

A lawyer shall keep the funds of each

client separate and apart from his
own and those of other kept by him.
High fiduciary
Honesty and fidelity to private trust

Rule 8.08 A lawyer shall deliver funds to client,

subject to his lien

He may use the funds for lawful fees

and disbursements so long as he
notifies his client thereafter.
Failure to return money upon clients
demand gives the presumption of
misappropriation and violation of
trust.

 Non-agreement of lawyers fees:

Lawyer should not apply funds for
the payment of his fees. Client may
file the necessary action to fix and
recover the amount of his fees.

RESTRICTION AGAINST
BUYING CLIENTS
PROPERTY

Rule 8.09 Purchase of clients

property in litigation
Lawyer is prohibited from buying
clients property, either personally or
through mediation (such as an
auction), that is involved in any
litigation.
This is to prevent undue influence of
the lawyer over his client.
No fraud in fact need be shown and
no excuse will be heard.

Rule 8.10 Application of rule

4 Elements so 8.09 may be applied:
There must be an attorney-client
relationship
Property must be in litigation
Attorney is the counsel in the case
The attorney or someone else buys
the property during the pendency of
the litigation

 Execution of the deed of sale is

immaterial
Any other means to circumvent the
law applies

Rule 8.11 Where rule

inapplicable
The absence of any rule renders Rule
8.09 inapplicable.

Rule 8.12 Effects of prohibited

purchase
It is a breach of professional ethics
Transaction is prohibited by law. It is
null and void ab initio.
The client is entitled to recover from
his attorney.

Rule 8.13 Purchase of choses in

action
The purpose of this is to prevent a
lawyer from the temptation to litigate
in his own account as a business
proposition.
An attorney places himself in the
category of a voluntary litigant for
profit.