CANON 16.

A LAWYER SHALL HOLD IN TRUST AND  When shall client’s funds and properties be delivered;
MONEYS AND PROPERTIES OF HIS CLIENT
THAT MAY COME INTO HIS POSSESSION
Rule 16.01- A laywer shall account for all money or
property collected or received for or from
the client
 Lawyer accountable for all moneys and properties of
client
-the high fiduciary and confidential relation of attorney
and client requires that the lawyer should promptly
account for all the funds received or held by him for the
client’s benefits
- he should keep and maintain adequate records of the
client’s moneys or properties in his custody
- he must not commingle his client’s money with other
moneys in his possession; this is not only to prevent
confusion but also to “avoid the appearance of
impropriety”
presumption of misappropriation
a) They become due
b) Upon demand
- a lawyer cannot unilaterally appropriate the client’s
money for himself by the mere fact that the client owes
him attorney’s fees
 Implementation of Attorney’s Retaining or Charging
Liens
- this lien refers to charging liens
- to enforce a charging lien, it is necessary that the lawyer
shall have caused a
1) Statement of such lien to be entered upon the
records of the court which rendered the favourable
judgment
2) With written notice to the client and to the
adverse party

 Unlawful retention of client’s funds: contemptuous

- proceedings under this section shall not be a bar to
criminal prosecution

 Money not used for specific purpose is held also in

trust and must be accounted immediately
 Attorney’s Lien is not an excuse for non-rendition of
accounting
-he is allowed however to apply so much of the funds as
may be necessary to satisfy his lawful fees and
disbursements subject to the condition that he shall
promptly notify his client
 Lawyer cannot disburse client’s money to client’s
creditors without authority
- he owes fidelity to the client and not to the creditor; he
needs a special power to effect such payment

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
 Funds of clients NOT TO BE COMMINGLED with funds
of counsel
- hence, in dealing with property, a lawyer should be very
scrupulous. Money or other trust property of the client
coming into possession of the lawyer should be reported
by the latter and accounted for promptly and should not,
under any circumstances, be commingled with his own or
be used 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 as secured for his client as
provided for in the Rules of Court