PROBLEM AREAS IN LEGAL ETHICS

Notes and Reviewer

Part I (Topics 1-3)

NOTE 1: This material is based on (1) the 2017 Legal and Judicial Ethics MemAid, (2) the 3D1819 PALE case list, and (3) J. Arcega’s lecture during our PALE class
NOTE 2: J. Arcega focused on the following topics: (1) Practice of Law, (2) Conflict of Interest, (3) Privileged Communication, (4) Honesty in Law Practice, (5) Guilty Clients, (6)
Criticism by Lawyers, and (7) Attorney’s Fees
NOTE 3: Topics 4-7 are in Part II

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 Part One – PRACTICE OF LAW

I. Definition of Terms

1. Bar & Bench: The term “bar” refers to the legal profession; whereas the word “bench” means the judiciary (Agpalo, 2009). Bar refers to the whole body of attorneys and
counsellors; collectively, the members of the legal profession; they are figuratively called the “bar” to distinguish them from the “bench,” which term denote the whole body of
judges (Pineda, 2009 citing Black’s Law Dictionary, 6th Ed.). Bar refers to the collectivity of persons whose names appear in the Roll of Attorneys (Garcia v. De Vera, 418 SCRA
27).
2. Bar Admission: Act by which one is licensed to practice before courts of a particular state or jurisdiction after satisfying certain requirements such s bar examinations, period
of residency or admission on grounds of reciprocity after period of years as member of bar of another jurisdiction (Pineda, 2009 citing Black’s Law Dictionary, 6th Ed.).
3. Lawyer: The general term for a person trained in the law and authorized to advise or represent others in legal matters (Pineda, 2009); a person licensed to practice law (Pineda,
2009 citing Black’s Law Dictionary, 6th Ed.).
4. Trial Lawyer: A lawyer who personally handles cases in court, administrative agencies or boards which means engaging in actual trial work either for the prosecution or for
the defense of cases of clients (Pineda, 2009).
5. Practicing Lawyer: One engaged in the practice of law (Pineda, 2009).
6. Attorneys-at-Law: That class of persons who are by license, officers of the courts, empowered to appear, prosecute, and defend, and upon whom peculiar duties, responsibilities
and liabilities are developed by law as a consequence (Cui v. Cui, 120 Phil. 729); an attorney-at-law is a person admitted to practice law in his respective state an authorized to
perform both civil and criminal legal functions for clients, including drafting of legal documents, giving of legal advice, and representing such before courts, administrative
agencies, boards, etc. (Black’s Law Dictionary, 6th Ed.).
7. Attorney-in-Fact: Simply an agent whose authority is strictly limited by the instrument appointing him, though he may do things not mentioned in his appointment necessary
to the performance of the duties specifically required of him by the power of attorney appointing him, such authority being necessarily implied (Philippine Legal Encyclopedia).
His authority is provided in a special power of attorney or general power of attorney or letter of attorney. An attorney-in-fact is not necessarily a lawyer (Pineda, 2009).
8. Counsel de Oficio: An attorney that may be assigned by the court to render professional aid free of charge to any party in a case, if upon investigation it appears that the party
is destitute and unable to employ an attorney, and that the services of counsel are necessary to secure the ends of justice and to protect the rights of the party. It shall be the
duty of the attorney so assigned to render the required service, unless he is excused therefrom by the court for sufficient cause shown (Rules of Court, Rule 138, Sec. 31); an
attorney appointed by the court to defend an indigent defendant in a criminal action (Agpalo, 2009; Pineda, 2009); a counsel, appointed or assigned by the court, from among
such members of the bar in good standing who, by reason of their experience and ability, may adequately defend the accused. But in localities where members of the bar are
not available, the court may appoint any person, resident of the province and of good repute for probity and ability, to defend the accused (Rules of Court, Rule 116, Sec. 7).
8a. Counsel de Parte: A lawyer retained by a party litigant, usually, for a fee, to prosecute or defend his cause in court. The term implies freedom of choice either on the part of the
lawyer to accept the employment or on the part of the litigant to continue or terminate the retainer at any time.
9. Attorney – Ad Hoc: A person named and appointed by the court to defend an absentee defendant in the suit in which the appointment is made (Bienvenu v. Factor’s & Traders
Ins. Co., 33 La. Ann. 209).
10. Attorney of Record: The attorney whose name, together with his address, is entered in the record of a case as the designated counsel of the party litigant in the case and to
whom judicial notices relative thereto are sent (Rules of Court, Rule 7, Sec. 5; Flores v. Zurbito, 37 Phil. 746 [1918]; U.S. v. Borromeo, 20 Phil. 189 [1911]; Vivero v. Santos, 98
Phil. 500 [1956]; Ramos v. Potenciano, 9 SCRA 587 [1963]); attorney whose name must appear somewhere in permanent records or files of case, or on the pleadings or some
instrument filed in the case, or on appearance docket; person whom the client has named as his agent upon whom service of papers may be made (Reynolds v. Reynolds, 21 Cal.
2d 580, 134 P.2d 251, 254); one who has filed a notice of appearance (e.g. through a praecipe) and who hence is formally mentioned in court records as the official attorney of
the party. Once an attorney becomes an attorney of record, he often cannot withdraw from the case without court permission (Black’s Law Dictionary, 6th Ed.).
11. Of Counsel: An experienced lawyer, who is usually a retired member of judiciary, employed by law firms as consultant (Agpalo, 2009); to distinguish them from attorneys of
record, associate attorneys are referred to as of counsel (5 Am. Jur. 264).

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12. Lead Counsel: The counsel on either side of a litigated action who is charged with the principal management and direction of party’s case, as distinguished from his juniors or
subordinates, is said to “lead the cause,” and is termed as the “leading counsel” on the side. It may also refer to the chief or primary attorney in class action or multi-district
litigation (Black’s Law Dictionary, 6th Ed.).
13. House Counsel: An attorney hired by a corporation tasked to attend to and conduct its own legal business or affairs (Agpalo, 2009), who is paid regular salaries, ranked in the
corporation’s table of organization, and otherwise treated like its other officers and employees (Hydro Resources Contractors Corp. v. Pagalilauan, 172 SCRA 399 [1989]).
14. Client: One who engages the services of a lawyer for legal advice or for purposes of prosecuting or defending a suit in his behalf and usually for a fee (Pineda, 2009).
15. Amicus Curiae: Experienced and impartial attorneys that may be invited by the court to appear to help in the disposition of issues submitted to it (Rules of Court, Rule 138,
Sec. 36); literally means “a friend of the court”; a person with strong interest in or views on the subject matter of an action, but not a party to the action, may petition the court
for permission to file a brief, ostensibly on behalf of a party but actually to suggest a rationale consistent with its own views (Black’s Law Dictionary, 6th Ed.).
16. Amicus Curiae Par Excellence: Bar associations who appear in court as amici curiae or friends of the court (Pineda, 2009).
17. Integrated Bar of the Philippines: A national organization of the legal profession based on the recognition of the lawyer as an officer of the court set up by government authority
(Report of the Commission on Bar Integration, quoted in In re Integration of the Bar of the Philippines, 49 SCRA 22, 25 [1973]; In Edillon, 84 SCRA 554 [1978]; See Parlade v. Board
of Governor, 7 IBP, 107 SCRA 589 [1981]); the national organization of lawyers created on January 16, 1973 under Rule 139-A of the Rules of Court, and constituted on May 4,
1973 into a body corporate by Presidential Decree No. 181 (Pineda, 2009).
18. Moral Turpitude: Means anything which is done contrary to justice, honesty, modesty or good morals (De Jesus-Paras v. Vailoces, 111 Phil. 569 [1961]; In re Peralta, 101 Phil.
313 (1959]), or to any act of vileness, baseness or depravity in the private and social duties that a man owes his fellowmen or to society, contrary to the accepted rule of right
and duty between man and man (In re Gutierrez, 5 SCRA 661 [1962]).
19. Ambulance Chasing: Refers to solicitation of almost any kind of legal business by laymen employed by an attorney for the purpose or by the attorney himself (Agpalo, 2009;
“See Annotation on “Ambulance Chasing,” 67 ALR2d 859 [1959]).
20. Barratry: Common barratry consists of frequently stirring up suits and quarrels between individuals, and was a crime at the common law, and one of the penalties for this
offense when committed by an attorney was disbarment. Statutes intended to reach the same evil have been provided in a number of jurisdictions usually at the instance of
the bar itself, and have been upheld as constitutional. The reason behind statutes of this type is not difficult to discover. The law is a profession and not a business. The lawyer
may not seek or obtain employment by himself or through others for to do so would be unprofessional (In re: Tagorda, G.R. No. 32329, March 23, 1929 citing State v. Rossman
[1909], 53 Wash., 1; 17 Ann. Cas., 625; People v. Mac Cabe [1893], 19 L. R. A., 231; 2 R. C. L., 1097)
21. Champertous Contract: An agreement by a lawyer to conduct the litigation on his own account, to pay the expenses thereof or to save his client therefrom and to receive as his
fee a portion of the proceeds of a judgment, which is considered obnoxious to the law (Bautista v. Gonzales, 182 SCRA 151 [1990]; Wotkins v. Sedberry, 261 U.S. 571, 67 L. ed 802
[1923]).
22. Quantum Meruit: Literally, the term quantum meruit means as much as a lawyer deserves (Mead v. Ringling, 64 NW2d 222; Losli v. Foster, 222 P2d 824). The lawyer is entitled
to receive what he merits for his services, as much as he has earned (Quilban v. Robinal, 171 SCRA 768 [1989]).
23. Doctrine of Double Deontology: Describes the situation in which an attorney is obligated to simultaneously follow two different sets of ethical standards (Double Deontology
Group: U.S.-Spain Comparative Professional Responsibility and “Double Deontology”. The Spain-American Bar Association. Retrieved from
http://www.spainamericanbar.org/en/member-services/legal-ethics-research-coordination-panel).
24. Doctrine of Imputed Knowledge: The knowledge acquired by an attorney during the time that he is acting within the scope of his authority is imputed to the client (Ramirez v.
Sheriff of Pampanga, 75 Phil. 462 [1946]; Armstrong v. Ashley, 204 U.S. 272, 51 L ed 482 [1907]). The doctrine is based on the assumption that an attorney, who has notice of
matters affecting his client, has communicated the same to his principal in the course of professional dealings (Johnlo Trading Co. v. Flores, 88 Phil. 741 [1951]; Peyer v. Martinez,
88 Phil. 72[1951]).
25. Gross Misconduct: “Any inexcusable, shameful, flagrant, or unlawful conduct on the part of the person concerned in the administration of justice which is prejudicial to the
rights of the parties or to the right determination of a cause.” It is a “conduct that is generally motivated by a premeditated, obstinate, or intentional purpose” (Sebastian v.
Bajar, A.C. No. 3731, September 7, 2007).
26. Charging Lien: The law creates in favor of a lawyer a lien upon all judgments for the payment of money and executions issued in pursuance of such judgments rendered in the
case wherein his services have been retained by the client (Rule 138, Sec. 26, Rules of Court; Rule 16.03; Code of Professional Responsibility; Caina v. Victoriano, 105 Phil. 194
[1959]).
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27. Legal Ethics: The embodiment of all principles of morality and refinement that should govern the conduct of every member of the bar; broadly defined as the “living spirit of
the profession, which limits yet uplifts it as a livelihood”; specifically, it is a branch of moral science which treats of the duties which an attorney owes to the court, to his client,
to his colleagues in the profession and to the public (Agpalo, 2009)
28. Practice of Law: Practice of law means any activity, in or out of court, which requires the application of law, legal procedure, knowledge, training and experience. “To engage
in the practice of law is to perform those acts which are characteristics of the profession. Generally, to practice law is to give notice or render any kind of service, which device
or service requires the use in any degree of legal knowledge or skill” (Cayetano v. Monsod); The practice of law is not limited to the conduct of cases or litigation in court; it
embraces the preparation of pleadings and other papers incident to actions and special proceedings, the management of such actions and proceedings on behalf of clients
before judges and courts, and in addition, conveying. In general, all advice to clients, and all action taken for them in matters connected with the law incorporation services,
assessment and condemnation services contemplating an appearance before a judicial body, the foreclosure of a mortgage, enforcement of a creditor’s claim in bankruptcy
and insolvency proceedings, and conducting proceedings in attachment, and in matters of estate and guardianship have been held to constitute law practice, as do the
preparation and drafting of legal instruments, where the work done involves the determination by the trained legal mind of the legal effect of facts and conditions.” (5 Am. Jr.
p. 262, 263). (Emphasis supplied) “Practice of law under modern conditions consists in no small part of work performed outside of any court and having no immediate relation
to proceedings in court. It embraces conveyancing, the giving of legal advice on a large variety of subjects, and the preparation and execution of legal instruments covering an
extensive field of business and trust relations and other affairs. Although these transactions may have no direct connection with court proceedings, they are always subject to
become involved in litigation. They require in many aspects a high degree of legal skill, a wide experience with men and affairs, and great capacity for adaptation to difficult
and complex situations. These customary functions of an attorney or counselor at law bear an intimate relation to the administration of justice by the courts. No valid
distinction, so far as concerns the question set forth in the order, can be drawn between that part of the work of the lawyer which involves appearance in court and that part
which involves advice and drafting of instruments in his office. It is of importance to the welfare of the public that these manifold customary functions be performed by persons
possessed of adequate learning and skill, of sound moral character, and acting at all times under the heavy trust obligations to clients which rests upon all attorneys” (PLA v.
Agrava).

II. Requirements for Admission to Bar

C21GREAEOCR
1. Must be a citizen of the Philippines (Rule 138, Sec. 2)
2. Must be at least 21 years of age (Rule 138, Sec. 2)
3. Must be of good moral character (Rule 138, Sec. 2)
4. Must be a resident of the Philippines (Rule 138, Sec. 2)
5. Must produce before the SC satisfactory evidence (Rule 138, Sec. 2):
a. Of good moral character, and
b. That no charge against him, involving moral turpitude, have been filed or are pending in any court in the PH
6. Academic requirements:
a. Law Degree: Satisfactorily show that they have regularly studied law and completed all prescribed courses (civil law, commercial law, remedial law, criminal law, public
and private international law, political law, labor and social legislation, medical jurisprudence, taxation and legal ethics) in a law school or university, officially approved
and recognized by the Secretary of Education (Rule 138, Sec. 5)
b. Pre-Law: Present certificate that he has satisfied the Secretary of Education that, before he began the study of law, he had pursued and satisfactorily completed in an
authorized and recognized university or college, requiring admission thereto the completion of a 4-year high school course, the course of study prescribed therein for a
bachelor’s degree in arts or sciences (with any of the following subjects as major or filed of concentration: political science, logic, english, spanish, history, and economics)
(Rule 138, Sec. 6)
7. Must pass the bar exam (Rule 138, Secs. 9 and 14)
• Must obtain a general average of 75%

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 • Must not obtain below 50% in any subject
8. Must take an oath (Rule 138, Sec. 17)
• I, ___ do solemnly swear that I will maintain allegiance to the Republic of the Philippines; I will support its Constitution and obey the laws as well as the legal orders of the
duly constituted authorities therein; I will do no falsehood nor consent to the doing of any in court; I will not wittingly or willingly promote or sue any groundless, false or
unlawful suit nor give aid nor consent to the same. I will delay no man for money or malice, and will conduct myself as a lawyer according to the best of my knowledge and
discretion with all good fidelity as well to the courts as to my clients; and I impose upon myself this voluntary obligation without any mental reservation or purpose of
evasion. So help me God.
9. Must receive a certificate from the clerk of court (Rule 138, Sec. 18)
10. Must sign in the Roll of Attorneys (Rule 138, Sec. 19)

III. Requirements for Practice of Law (Rule 138, Sec. 1)

BS
1. Admitted to the bar (see above)
2. In good and regular standing
a. Membership in the IBP
b. Payment of IBP dues
c. Payment of professional tax
d. Compliance with the MCLE
e. Citizenship
f. Good moral character

IV. Four-Fold Duties of a Lawyer

1. Duty to the Public (or Society): Should not violate his responsibility to society, exemplar for righteousness, ready to ender legal aid, foster social reforms, guardian of due
process, aware of special role in the solution of special problems ad be always ready to lend assistance in the study and solution of social problems
2. Duty to the Bar (or Legal Profession): Candor, farness, courtesy and truthfulness, avoid encroachment in the business of other lawyers, uphold the honor of the profession
3. Duty to the Courts: Respect or defend it against criticisms, uphold authority and dignity, obey its orders and processes, assist in the administration of justice
4. Duty to the Client: Entire devotion to client’s interest

V. Duties of Attorneys (Rule 138, Sec. 20)

MOCEMAERD
Rule 138, Sec. 20. Duties of attorneys. — It is the duty of an attorney:
(a) To maintain allegiance to the Republic of the Philippines and to support the Constitution and obey the laws of the Philippines;
(b) To observe and maintain the respect due to the courts of justice and judicial officers;
(c) To 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;
(d) To employ, for the purpose of maintaining the causes confided to him, such means only as are consistent with truth and honor, and never seek to mislead the judge or any
judicial officer by an artifice or false statement of fact or law;
(e) To maintain inviolate the confidence, and at every peril to himself, to preserve the secrets of his client, and to accept no compensation in connection with his client’s business
except from him or with his knowledge and approval;
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(f) To abstain from all offensive personality and to advance no fact prejudicial to the honor or reputation of a party or witness, unless required by the justice of the cause with
which he is charged;
(g) Not to encourage either the commencement or the continuance of an action or proceeding, or delay any man’s cause, from any corrupt motive or interest;
(h) Never to reject, for any consideration personal to himself, the cause of the defenseless or oppressed;
(i) In the defense of a person accused of crime, by all fair and honorable means, regardless of his personal opinion as to the guilt of the accused, to present every defense that the
law permits, to the end that no person may be deprived of life or liberty, but by due process of law.

VI. Grounds for Disbarment or Suspension (Rule 138, Sec. 27)

DMMICVDA
Rule 138, Sec. 27. Disbarment or suspension of attorneys by Supreme Court; grounds therefor. — A member of the bar may be disbarred or suspended from his office as attorney by
the Supreme Court:
1. For any deceit
2. For any malpractice
• The practice of soliciting cases at law for the purpose of gain, either personally or through paid agents or brokers, constitutes malpractice
3. For any other gross misconduct in such office
4. Grossly immoral conduct
5. By reason of his conviction of a crime involving moral turpitude
6. For any violation of the oath which he is required to take before admission to practice
7. For willful disobedience of any lawful order of a superior court
8. For corruptly or willfully appearing as an attorney for a party to a case without authority so to do

VII. Case Doctrines

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 Part Two – CONFLICT OF INTEREST

I. Related Rules and Canons and Other Pertinent Provisions of Law and the Rules of Court

1. Code of Professional Responsibility

a. 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.
b. 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.
c. Rule 6.03 — A lawyer shall not, after leaving government service, accept engagement or employment in connection with any matter in which he had intervened while in
said service.
2. Laws
a. RA 3019, as amended, Sec. 3(d). Corrupt practices of public officers. — In addition to acts or omissions of public officers already penalized by existing law, the following
shall constitute corrupt practices of any public officer and are hereby declared to be unlawful: xxx (d) Accepting or having any member of his family accept employment
in a private enterprise which has pending official business with him during the pendency thereof or within one year after its termination
b. RA 6713, Sec. 7(b). Prohibited Acts and Transactions. — In addition to acts and omissions of public officials and employees now prescribed in the Constitution and existing
laws, the following shall constitute prohibited acts and transactions of any public official and employee and are hereby declared to be unlawful: xxx (b) Outside employment
and other activities related thereto. — Public officials and employees during their incumbency shall not:
(1) Own, control, manage or accept employment as officer, employee, consultant, counsel, broker, agent, trustee or nominee in any private enterprise regulated, supervised
or licensed by their office unless expressly allowed by law;
(2) Engage in the private practice of their profession unless authorized by the Constitution or law, provided, that such practice will not conflict or tend to conflict with
their official functions; or
(3) Recommend any person to any position in a private enterprise which has a regular or pending official transaction with their office.
c. RA 910, Sec. 1. When a Justice of the SC or of the CA who has rendered at least 20 years’ service either in the judiciary or in any other branch of the Government, or in both,
(a) retires for having attained the age of seventy years, or (b) resigns by reason of his incapacity to discharge the duties of his office, he shall receive during the residue of
his natural life, in the manner hereinafter provided, the salary which he was receiving at the time of his retirement or resignation. And when a Justice of the SC or of the
CA has attained the age of 57 years and has rendered at least 20 years’ service in the Government, 10 or more of which have been continuously rendered as such Justice
or as judge of a court of record, he shall be likewise entitled to retire and receive during the residue of his natural life, in the manner also hereinafter prescribed, the salary
which he was then receiving. It is a condition of the pension provided for herein that no retiring Justice during the time that he is receiving said pension shall appear as
counsel before any court in any civil case wherein the Government or any subdivision or instrumentality thereof is the adverse party, or in any criminal case wherein and
officer or employee of the Government is accused of an offense committed in relation to his office, or collect any fee for his appearance in any administrative proceedings
to maintain an interest adverse to the Government, insular, provincial or municipal, or to any of its legally constituted officers.

II. Kinds

1. Concurrent or Multiple Representations: When a lawyer represents clients whose objectives are adverse to each other, no matter how slight or remote such adverse interests
may be
2. Successive or Sequential Representations: 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
3. Conflict of Interest with the Property of Client
4. Conflict with Former Government Lawyers or Officers with Accepting Employment in Connection with Any Matter in which He Had Intervened With

III. Tests

1. Conflicting Duties: Whether a lawyer is duty bound to fight for an issue or claim in behalf of one client and, at the same time to oppose that claim for the other client
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2. Invitation of Suspicion: Whether the acceptance of a new relation would prevent the full discharge of the lawyer’s duty of undivided fidelity and loyalty to the client or invite
suspicion of unfaithfulness or double-dealing in the performance of that duty
3. Use of Prior Knowledge Obtained: Whether the lawyer would be called upon in the new relation to use against a former client any confidential information acquired through
their connection or previous employment

IV. Exceptions

1. Where clients knowingly consent to the dual representation

2. Where no true attorney-client relationship is attendant

V. Case Doctrines

0. ANGLO v. VALENCIA
The rule on conflict of interest which prohibits lawyers from representing new clients whose interests oppose those of a former client in any manner, whether or not they are
parties in the same action or on totally unrelated cases apply to a law firm as well. In this case, complainant was a former client in a labor case. Subsequently, one of the lawyers of
the firm was retained by a client for a qualified theft case against complainant.

1. LEGASPI v. FAJARDO
There is a conflict of interest where a lawyer entered his appearance (as collaborating counsel) for the defendant in a case, and thereafter, accepted his appointment as attorney-
in-fact for the plaintiff in the same case.

2. SPS. BALBIN v. BARANDA, JR.

There is no conflict of interest where a notary public subsequently became the counsel of one of the signatories in the subject document in a case. No such prohibition appears in
both the Notarial Law and its present iteration.

3. ALAG v. SENUPE, JR.

There is no conflict of interest where a lawyer, who is representing the petitioner in a case for a petition for issuance of letters of administration, notarized the affidavit of the actual
tiller of a lot which is part of the intestate estate of the decedent in the same case, since there is no proof showing that the lawyer, by merely notarizing the said document,
represented said actual tiller. The rule concerning conflict of interest which prohibits a lawyer from representing a client if that representation will be directly adverse to any his
present or former clients is not present here.

4. CABALIDA v. LOBRIDO, JR.

No conflict of interest can be attributed to opposing counsels who later become members of the same firm during the period before such membership in the same firm.

5. CANILLO v. ANGELES
There is conflict of interest where a lawyer represented a client and was instrumental in facilitating the various dealing with that client and another person, and then subsequently
filed a case against that client as co-plaintiff with said another person, seeking to invalidate the same agreements he prepared at a time when he enjoyed the confidence of such
client, since the rule prohibiting conflict of interest applies regardless of the degree of adverse interests, and what a lawyer owes his former client is to maintain inviolate the
client’s confidence or to refrain from doing anything which will injuriously affect the client in any matter in which he previously represented him.

6. BUENAVISTA PROPERTIES, INC. v. DELORIA

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There is conflict of interest where a lawyer, without the written consent of all the parties, simultaneously represented conflicting interests, i.e., the president of a corporation in an
estafa case and one of the complainants in that estafa case, considering that the estafa case was premised on the president’s and the corporation’s alleged misrepresentation of
ownership over the lots sold and the corporation’s eventual failure to deliver the title.
Where a corporation engaged in a JVA with a bank, and the former sold the subdivided lots to buyers, there is conflict of interest where the lawyer, without the written consent of
all the parties, represented the buyers as complainants in an action to compel the bank to execute the deeds of absolute sale and deliver the titles of the subdivided lots while also
representing the corporation as third-party respondent therein,

7. BSA TOWER CONDOMINIUM CORP. v. REYES II

Where a lawyer represented a client for an action for reimbursement against a corporation to which he was previously the corporate, there is no conflict of interest where there
was no convincing evidence to show that the lawyer used any confidential information that he had obtained from the former, especially since the dispute between the two are
contractual in nature, such that his new relationship with the client would not require him to disclose matters obtained during his engagement as the Corporate Secretary or
counsel of the corporation, or that his acceptance of the new client would prevent the full discharge of his duties as a lawyer or invite suspicion of double-dealing.

8. TANGCAY v. CABARROGUIS
There is conflict of interest where a lawyer lends money to his client (through a loan with real estate mortgage to cancel a previous mortgage involving the same property), not
falling under the exception in Rule 16.04 of the CPR, since lawyers who obtain tut interest in the subject-matter of litigation create a conflict-of-interest situation with their clients
and thereby directly violate the fiduciary duties they owe their clients.

9. ROMERO v. EVANGELISTA, JR.

There is conflict of interest where a lawyer, without the written consent of all the parties, represented clients whose interests oppose those of a former client, since the
representation of opposing clients, even in unrelated cases, is tantamount to representing conflicting interests or, at the very least, invites suspicion of double dealing which the
Court cannot allow.

10. BANSIL v. HIPOLITO III

There is a violation of the rule on conflict of interest where a lawyer acts as counsel for an unlawful detainer case against the occupants of a commercial space, and subsequently,
while the unlawful detainer case was still pending, became the counsel for said occupants, this time for intestate proceedings involving an estate which includes lease rights over
said commercial space. This is so, even if the inconsistency was remote or merely probable.

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 PRIVILEGED COMMUNICATION

I. Related Rules and Canons and Other Pertinent Provisions of Law and the Rules of Court

1. Code of Professional Responsibility

a. 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.
b. Canon 21 — A lawyer shall preserve the confidences and secrets of his client even after the attorney-client relation is terminated.
c. 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 by judicial action
d. Rule 21.02 — A lawyer shall not, to the disadvantage of his client, use information acquired in the court 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.
e. Rule 21.03 — A lawyer shall not, without the written consent of his client, give information from his files to an outside agency seeking information for auditing, statistical,
bookkeeping, accounting, data processing, or any similar purpose.
f. Rule 21.04 — A lawyer may disclose the affairs of a client to the firm to partners or associates thereof unless prohibited by the client.
g. 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 client.
h. Rule 21.06 — A lawyer shall avoid indiscreet conversation about a client’s affairs even with members of his family.
i. Rule 21.07 — A lawyer shall not reveal that he has been consulted about a particular case except to avoid possible conflict of interest.
2. Rules of Court
a. Rule 138, Sec. 20(e). Duties of attorneys. — It is the duty of an attorney: xxx To maintain inviolate the confidence, and at every peril to himself, to preserve the secrets of
his client, and to accept no compensation in connection with his client’s business except from him or with his knowledge and approval
b. Rule 130, Sec. 24(b). Disqualification by reason or privileged communication. — The following persons cannot testify as to matters learned in confidence in the following
cases: xxx An attorney cannot, without the consent of his client, be examined as to any communication made by the client to him, or his advice given thereon in the course
of, or with a view to, professional employment, nor can an attorney’s 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.
3. Laws
a. RPC, Art. 209. Revelation of secrets. — In addition to the proper administrative action, the penalty of prision correccional in its minimum period, or a fine ranging from ₱200
to ₱1,000, or both, shall be imposed upon any attorney-at-law or solicitor (procurador judicial) who, by any malicious breach of professional duty or of inexcusable
negligence or ignorance, shall prejudice his client, or reveal any of the secrets of the latter learned by him in his professional capacity. The same penalty shall be imposed
upon an attorney-at-law or solicitor (procurador judicial) who, having undertaken the defense of a client or having received confidential information from said client in a
case, shall undertake the defense of the opposing party in the same case, without the consent of his first client.

II. Confidential Information vs. Secrets

1. Confidential Information: Information transmitted by voluntary act of disclosure between attorney and client in confidence and by means which so far as the 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 it
was given
2. Confidential Information vs. Secrets:
Confidential Information Secrets

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 Pertains to information protected by the rule on attorney-client privilege Those other pieces of information gained in the professional relationship that the
client has requested to be held inviolate or the disclosure of which would be
embarrassing or would likely be detrimental to client
• Not all confidential information are secrets, and not all secrets are confidential information.

III. Requisites

RMI
1. Existence of an attorney-client relationship or a kind of consultancy relationship with a prospective client
2. Communication was made by the client to the lawyer in the course of the lawyer’s professional employment
3. Communication must be intended to be confidential
• A counsel de oficio is bound by the rules on privileged communication
• Retainer’s fee is not essential in establishing attorney-client relationship

IV. Exceptions

ALNFCF
1. When authorized by the client after acquainting him of the consequences of the disclosure;
2. When required by law;
3. When necessary to collect his fees or to defend himself, his employees or associates by judicial action (Canon 21, Rule 21.01)
4. Where the client’s purpose is the furtherance of a future intended crime or fraud (Riano citing Wigmore)
5. Where it is is for the purpose of committing a crime or a tort (Riano citing U.S. v. Wilson)
6. Where it is made in furtherance of illicit activity (Riano citing U.S. v. Aucoin)

V. Case Doctrines

0. REGALA v. SANDIGANBAYAN
As a general rule, a lawyer may not refuse to divulge the identity of his client, because, as a matter of public policy, a client’s identity should not be shrouded in mystery. Further:
(1) The court has a right to know that the client whose privileged information is sought to be protected is flesh and blood
(2) The privilege begins to exist only after the attorney-client relationship has been established; the attorney-client privilege does not attach until there is a client
(3) The privilege generally pertains to the subject matter of the relationship
(4) Due process considerations require that the opposing party should, as a general rule, know his adversary; a party suing or sued is entitled to know who his opponent is,
and he cannot be obliged to grope in the dark against unknown forces.
However, information relating to the identity of a client may fall within the ambit of the privilege when the client’s name itself has an independent significance, such that disclosure
would then reveal client confidences. In particular, the following are the exceptions:
(1) Client identity is privileged where a strong probability exists that revealing the client’s name would implicate that client in the very activity for which he sought the lawyer’s
advice
(2) Where disclosure would open the client to civil liability, his identity is privileged
(3) Where the government’s lawyers have no case against an attorney’s client unless, by revealing the client’s name, the said name would furnish the only link that would form
the chain of testimony necessary to convict an individual of a crime, the client’s name is privileged

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 (4) The content of any client communication to a lawyer lies within the privilege if it is relevant to the subject matter of the legal problem on which the client seeks legal
assistance
(5) Where the nature of the attorney-client relationship has been previously disclosed and it is the identity which is intended to be confidential, the identity of the client has
been held to be privileged, since such revelation would otherwise result in disclosure and the entire transaction

1. PALACIOS v. AMORA, JR.

There is a violation of Canon 21, Rules 21.01 and 21.02 where the lawyer, acting as counsel for a subsequent client, caused the filing of a lawsuit against his former client using
information he acquired from his former professional employment.

2. PACES INDUSTRIAL CORP. v. SALANDANAN

One of the reasons for the prohibition against conflict of interest is that a client has a legal right to have the lawyer safeguard confidential information pertaining to it. Preventing
the use of confidential information against the interests of the client to benefit the lawyer’s personal interest, in aid of some other client, or to foster an assumed public purpose, is
facilitated through conflicts rules that reduce the opportunity for such abuse. The client’s confidence once given should not be stripped by the mere expiration of the professional
employment. However, that a lawyer’s immutable duty to a former client does not cover transactions that occurred beyond the lawyer’s employment with the client. The intent of
the law is to impose upon the lawyer the duty to protect the client’s interests only on matters that he previously handled for the former client and not for matters that arose after
the lawyer-client relationship has terminated.

3. GAMARO v. PEOPLE
Where a lawyer testifies in a case against a person to whom she allegedly gave “advice” to, who also happens to be her officemate, and such testimony consisted merely of
observations, i.e., of having personally saw the act which her testimony seeks to prove, there is no disclosure of privileged communications.

4. IN RE: CA RESOLUTION v. MORTEL

An agreement entered into by a lawyer (1) to use as his address on record the address of the law firm of his acquaintance, with the consent of the latter, such that all communication,
court orders, resolutions, notices, or other court processes were addressed to said law firm and were received by said law firm’s staff, and (2) to have said acquaintance contact
his messenger in case there were communications sent to him through such law firm violates Canon 21, Rule 21.04 of the CPR, because said lawyer is not a partner or associate of
said law firm.

5. FAJARDO v. ALVAREZ
Text messages between the lawyer and the client, are not legally admissible as they are covered by the lawyer-client privileged communication where these supposed texts had
been made for the purpose and in the course of employment.

6. JIMENEZ v. FRANCISCO
There is no violation of the prohibition on the disclosure of privileged communication where there is no attorney-client privilege.

7. ALCANTARA v. DE VERA
There is a violation of Canon 21 and Rule 21.02 of the CPR where the lawyer filed frivolous lawsuits against his previous client (to exact revenge on the latter for filing an
administrative complaint against him which ultimately led to his suspension), involving matters and information (such as information as to the structure and operations of the
family corporation, private documents, and other pertinent facts and figures) acquired by the lawyer through the attorney-client relationship with said previous client.

8. PALM v. ILEDAN, JR.

Where a lawyer was retained as corporate counsel for potential amendments to the corporate by-laws to allow participation during board meetings, through teleconference, of
members of the Board of Directors who were outside the Philippines, and in a stockholders’ meeting prior to the amendment of the by-laws wherein two board members participate
through teleconferencing, objected to the same as the by-laws had not yet been amended, there was no violation of Canon 21 of the CPR, because although the information about
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the necessity to amend the corporate by-laws may have been given to the lawyer, it could not be considered a confidential information since: (1) the stockholders are generally
aware of the proposed amendments to the by-laws, and (2) copies of the amended by-laws are filed with the SEC, hence, the same are public records and could not be considered
confidential.

9. ACEJAS III v. PEOPLE

When confronted by public officers who extort money, lawyers must decline and report the matter to the authorities, and if the extortion is directed at the client, they must advise
the client not to perform any illegal act. Moreover, they must report it to the authorities, without having to violate the
attorney-client privilege.

10. MERCADO v. VITRIOLO

The mere fact that a lawyer instituted a criminal action for falsification of public documents against his client (for making false entries in the birth certificates of the latter’s children
with respect to the indication therein that she was legally married to a certain person when in truth, she was actually legally married to someone else at the time) in an earlier case
for annulment of marriage does not of itself show that the lawyer violated attorney-client privilege, because it is not enough to merely assert the attorney-client privilege, the party
asserting the privilege has the burden of proving that the privilege applies, and in this case, the evidence on record fails to substantiate the complainant’s allegations.

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