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.
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A lawyer must be scrupulously careful in handling money entrusted to him in

his professional capacity, because of the high degree of fidelity and good faith
expected on his part.
A lawyer holds money or property, which he received from his client, in trust
and should promptly make an accounting therof.
If money or property entrusted was not used for its purpose, it should be
returned immediately to the client. Failure to return would raise presumption
that he misappropriated the money/property.
Money received by a lawyer from a person who is not his client is also held by
him in trust and he is under obligation to account for it.
The circumstances that a lawyer has a lien for his attorneys fees over the
clients money in his possession does not relieve him from the obligation to
make a prompt accounting and his failure to do so constitutes professional
misconduct.

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.
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The lawyer is under strict obligation to label and identify his clients property
and keep it separate and apart from his own.
A lawyer should not commingle a clients money with that of other clients and
with his private funds, nor use the clients money for his personal purposes
without the clients consent.
The prohibition against commingling is not only to prevent confusion but also
to avoid the appearance of impropriety. If funds are kept in separate account,
the temptation to convert them to personal use is one step removed.
A lawyer should keep funds of each client separate and apart from his own.
He should not use clients money for personal purposes without clients
consent. He should report promptly the money of his client in his possession.