MIDTERM EXAM IN PROBLEM AREAS IN LEGAL ETHICS

Instructions: Always raticionate with legal provisions of the law.

1. Define practice of law. (5 pts)

Practice of law means any activity in or out court which requires the application of law,
legal procedure, knowledge, training and experience.

2. May a judge refuse to follow a memorandum circular issued by the Supreme Court? (5
pts)

No, a judge may not refuse to fallow a memorandum circular issued by the Supreme
Court. A judge as officer of the court has duty to comply and compel compliance of the
orders coming from the Supreme Court.

3. Mrs. Amy Dizon’s husband was killed in a traffic accident. She wants to sue the bus
company for damages but she cannot afford a lawyer. She approached Atty. Larry Rio
who agreed to handle the case without any retainer’s fee or expenses on her part, on
the condition that in case of recovery of damages, he shall get 33% of the award by the
court.

a) Is this arrangement valid and permissible? Decide with reasons. (1990

Bar) (5 pts)

No. the arrangement is not valid and not permissible.

Under the law, neither shall a lawyer lend money to a client except when in the interest
of justice, he has to advance necessary expenses in a legal matter he is handling for the client.

In the case ta bar, when Atty. Rio agreed to handle the case without retainer’s fee or
expenses on her part upon the condition that in case of recovery of damages he shall get 33%
of the award of the court. It is deemed that Atty. Rio will carry out in advance all the necessary
expenses during the process of litigation. Under the law such arrangement is invalid unless
interest of justice so requires which is inexistent in the case at bar.

4. A j u d g e h a d b e e n s e e n h a v i n g a l u n c h w i t h a l i t i g a n t
w i t h a c a s e p e n d i n g before him in a court. He was also seen at the race
track placing bet on certain horses.

a) How would you evaluate the behavior of the judge? Explain. (1992 Bar) (5
pts)

The behavior of the judge is considered improper.

Under the law, a Judge must behave at all times as to promote public confidence and
impartiality of the judiciary.

In the case at bar, acts of the judge by having lunch with a litigant and having seen
betting on horse race track may have an adverse effect to the public.

5. Atty. V. Suarez represented Altamarino in an ejectment case against Orbido.

Judgement was rendered in favor of Altamarino and Orbido vacated the property
forthwith. Subsequently, a case for annulment of Altamarino’s title over the  property
subject of the ejectment case was filed by Orbido who is now represented  by Atty.
Suarez. Altamarino filed a motion for disqualification of Atty. Suarez for representing
conflicting interest as the latter was his lawyer in the ejectment case against attorney
 and client relationship between her and Altamarino had already terminated and that she
did not obtain any confidential information regarding Altamarino’s title in handling the
ejectment case, which is different from the present case for annulment of title.

a) Rule on the motion for disqualification of Atty. Suarez should be granted.

(1992 Bar) (5 pts)

The Motion for Disqualification of Atty. Suarez should be granted.

Under the law, a lawyer is prohibited from in engaging in services where there exists a
conflict of interest.

In the case at bar, Almatorio was a former client of Atty. Suarez in the previous ejectment
case between Almatorio and Orbido. It is presumed that Atty. Suarez has obtained some
information regarding the concerned property on the previous case. Therefore Atty. Suarez
should be disqualified as counsel of Orbido.

6. The client with whom you have a retainer agreement had not been paying you contrary to your
stipulations on legal fees as you continue to appear at hearings in his case. A judgment
was finally rendered in your clients favor awarding him the real property in litigation as
well as a substantial amount in damages.

a) As a counsel who had not been paid what steps can you take to protect your
interest? (1994) (5 pts)

As counsel, I can protect my interest against a client who is not paying retainer’s fees by
way of attaching to the judgement a charging lien. By attaching a charging lien to the
judgement I can enforce the payment of my retainer’s fees.

7. Judge P decide an annulment of title suit in favor of A. After the decision had become
final and executory, A sold property to a realty firm. Judge P, a good friend of the owner
of the realty firm, purchased two lots in the  property at a substantial discount.

a) Did Judge P violate any provision of the Civil Code with respect
to the  purchase of a litigated property? (2.5 pts)

No, Judge P did violate any provision of the Civil Code with respect to the purchase of
the litigated property.

Under the law, a judge is prohibited from acquiring property which may be an object of
litigation to which they take part by virtue of profession, unless the case has already
terminated.

In the case at bar, the case herein has already been terminated. Therefore Judge P can
purchase the said property involved.

b) Did Judge P go against any provision of the Civil Code with respect to
the purchase of a litigated property? (1996 Bar.) (2.5 pts)

No, Judge P did not go against any provision of the Civil Code with respect to the purchase
of the property as the case in which Judge P took part has already been terminated. Hence
Judge P can acquire such property.

8. Nene approached Atty. Nilo and asked him if it was alright to buy a piece of land which
Maneng was selling. What was shown by Maneng to Nene was an Original Certificate of
title with many annotations and old patches, to which Nene expressed suspicion.
However, Atty. Nilo, desirous of pushing through with the transaction because of the
 high notarial fee promised to him, told Nene that the title was alright and that the title
was alright and that she should not worry since he is an attorney and that he knew
Maneng well. He notarized the Deed of Sale and Nene paid Maneng P108,000.00. It
turned out that Maneng had previously sold the same property to another person.

a) For the injustice done to Nene, may Atty. Nilo be disciplined? (1998 Bar) (5 pts)

Yes, Atty. Nilo should be disciplined.

Under the law, a lawyer shall not neglect a legal matter entrusted to him, and his negligence in
connection therewith shall render him liable.

In the case at bar, Atty Nilo is negligent in notarizing immediately the Deed Of Sale without looking
further that the lot was already been previously sold. Therefore Atty. Nilo should be disciplined.

9. C filed a verified administrative complaint against Atty. D. In the course of investigation,

C presented an affidavit of desistance which she identified on the witness stand.

a) What course of action should the investigator take? Explain. (2000 Bar)
(5 pts)

The investigator must continue the investigation.

Under the law, if the administrative case filed against a lawyer is in a form of
Disbarment case the same may proceed regardless of the desistance of the complainant.

However if it is a different administrative case filed against a lawyer, desistance of the

complainant may dismiss the case if the charges cannot be substantiated.

10. Define legal ethics. (5 pts)

Legal ethics refers to the code of conduct regulating the behavior of persons within the legal
profession.

11. Mr. L sought legal advice from his lawyer, Atty. M, regarding the possibility of annulling his
marriage. In the course of their conversation, Mr. L mentioned that he would be able to
immediately pay Atty. M's legal fees because he received a huge kickback from a favored
supplier in relation to his work as member of his Municipality's Bids and Awards Committee.

(a) Is the communication made by Mr. L to Atty. M regarding the kickback he

received presumed to be confidential? Explain. (3 pts)

No, the same is not considered as a confidential information.

Under the law, a lawyer shall avoid controversies with clients concerning his
compensation. Atty. M may decline the case if ever Mr. L will get him as his counsel. His
reason for declining will not be considered as confidential as his purpose was to avoid
controversy.

(b) What is the duty of a lawyer when, in the course of his representation, he
discovered that his client committed fraud upon a person or a tribunal? (2%)
(2019 Bar)

Under the law, a lawyer who has received information that his client has, in the course
of the representation, perpetrated a fraud upon a person or tribunal, shall promptly call upon
the client to rectify the same, and failing which he shall terminate the relationship with such
client.

12. P was dismissed by his former employer, Company X, for allegedly misappropriating
company funds entrusted to him. P alleged that there was no proof to substantiate the same;
hence, his dismissal was invalid.

Aggrieved, P engaged the services of ABCDE Law Office to represent him in an illegal
dismissal case against Company X. Atty. A, a partner of the said law firm, was assigned to
handle P's case. Eventually, the illegal dismissal case was terminated upon settlement by all
parties, and thus, P's engagement with ABCDE Law Office ceased.

Two (2) years after, a criminal case for Qualified Theft was filed by Company X against P
based on the same events which led to his dismissal. To his surprise, P found out that
Company X was being represented by ABCDE Law Office in the criminal case. Decrying a
violation of the rule on conflict of interest, P filed an administrative complaint against Attys. A,
B, C, D, and E, the partners of ABCDE Law Office.

(a) Was the rule on conflict of interest violated in this case? Explain. (3 pts)

No, Rule on conflict of interest may be violated.

Under the law, one test to determine conflict of interests is when whether the lawyer will
be asked to use against his former client any confidential information acquired through their
connection or previous employment.

In the case at bar, P was not a former client of ABCDE law office on the previous case
but the counsel of Company X. Therefore there is no conflict of interest in the case at bar as
there are no previous confidential information acquired to be used against P.

(b) Is the prior termination of P's engagement with ABCDE Law Office a valid
defense to the administrative charge against Attys. A, B, C, D, and E? Explain.
(2.5 pts)

No, as there is no conflict of interest that might arise in the case at bar.

(c) May Attys. B, C, D, and E be held administratively liable for violating the rule
on conflict of interest despite the fact that it was only Atty. A, the handling lawyer,
who had knowledge of P's engagement as a client? Explain. (2.5pts) (2019 Bar)

Yes, Atty. B, C, D and E may be held administratively liable even if only Atty. A handled
P if they can acquire previous confidential information against P through Atty. A. If not, they
may not be held liable.

13. Every new lawyer must be acquainted with the consequences of noncompliance with the
essential obligations attendant to the legal profession. Among these obligations are
compliance with the requirements on Mandatory Continuing Legal Education (MCLE), and
payment of Integrated Bar of the Philippines (IBP) dues.

(a) What are the consequences of non-compliance with the requirements on

MCLE? (2.5 pts)

Non-compliance of a lawyer of requirement of MCLE for a period of 60 days after

expiration of compliance, he may then be listed as delinquent member of IBP and shall not be
permitted to practice law until there is already compliance of MCLE.

(b) What are the consequences of non-payment of IBP dues? (2.5 pts) (2019 Bar)
 A lawyer may be suspended of his membership from membership if there is a failure to
pay IBP dues for a period of 6 months. If there is already nonpayment of dues for a period of
one year then he may be removed from the roll of attorneys.

14. A lawyer advertised in the newspaper the following:

"Expert in annulment of marriage. Fast and sure. Consult anytime."

Is the advertisement proper? Explain. (2.5%) (2019 Bar)

No, such advertisement is improper.

Under the law, a lawyer cannot without violating the ethics of his profession advertise
his talent and skills as in a manner similar to a merchant advertising his goods.

Therefore such advertisement in a newspaper by a lawyer is improper.

15. Mr. O was disbarred from the practice of law in 2009 for gross immorality. Ten (10) years
later, at age 58, he asked for judicial clemency and filed a petition for his reinstatement in the
Roll of Attorneys. Mr. O had asked forgiveness from his children and maintained a cordial
relationship with his complainant wife. He also submitted a certification from the parish priest
and members of the Integrated Bar of the Philippines chapter to which he belongs of his civic
mindedness and good moral character.

Based on the guidelines for the reinstatement of a disbarred lawyer, may Mr. O be
reinstated as a member of the Bar? Explain. (2.5%) (2019 Bar)

Yes, Mr,O may be reinstated as member of the Bar. Provided that he can persuade the
Court that he has sufficiently achieved moral reformation and Mr. O was enable to realize his
previous professional transgressions. Then he might be reintegrated again as a member of the
Bar.

Nothing follows