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THE CODE OF Canon 16: Duty of Fiduciary in Handling Client’s
PROFESSIONAL RESPONSIBILITY
HISTORY
1917: Adoption by the Philippine Bar Association
(PBA) of Canons 1 to 32 of Canons of Professional
Ethics of the American Bar Association (ABA)
1946: Adoption by PBA of Canons 33 to 47
1979: Drafting by the Integrated Bar of the
Philippines of a proposed Code of Professional
Responsibility
June 21, 1988: Promulgation by the Supreme Court
of the Code of Professional Responsibility.
OUTLINE OF THE CANONS OF PROFESSIONAL
RESPONSIBILITY
CHAPTER I: The Lawyer and Society
Canon 1: Duty to Uphold the Constitution and the
Laws
Canon 2: Duty to be an Efficient Lawyer
Canon 3: Duty of Honest and Dignified
Pronouncement of Legal Service
Canon 4: Duty to Support the Improvement of the
Legal System
Canon 5: Duty to Keep Abreast of Legal
Developments
Canon 6: The Canons Apply to Lawyers in
Government Service
CHAPTER II: The Lawyer and the Legal
Profession
Canon 7: Duty to Uphold the Dignity of the Legal
Profession
Canon 8: Duty of Professional Courtesy
Canon 9: Duty to Not to Engage in Unauthorized
Practice of Law
CHAPTER III: The Lawyer and the Courts
Canon 10: Duty of Candor, Fairness, and Good
Faith to the Courts
Canon 11: Duty to Give Respect to the Courts
Canon 12: Duty to Assist in the Speedy and
Efficient Administration of Justice
Canon 13: Duty Not to Influence Judges
CHAPTER IV: The Lawyer and the Client
Canon 14: Duty to Render Legal Service to the
Needy
Canon 15: Duty of Candor, Fairness, and Loyalty to
the Client
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Moneys and Properties
Canon 17: Duty of Fidelity to the Cause of the
Client
Canon 18: Duty to Serve with Competence and
Due Diligence
Canon 19: Duty to Serve Only Within the Bounds of
Law
Canon 20: Duty to Charge Only Fair and
Reasonable Fees
Canon 21: Duty to Preserve the Client’s
Confidence and Secrets
Canon 22: Duty to Withdraw Services Only for
Good Cause and upon Notice
Applicability to Lawyers in Government Service
The Code of Professional Responsibility does not
cease to apply to a lawyer simply because he has
joined the government service. Where a lawyer’s
misconduct as a government official is of such
nature as to affect his qualification as a lawyer or to
show moral delinquency, then he may be disciplined
as a member of the bar on such grounds (Lahn III v.
Mayor, Jr., A.C. No. 7430, February 15, 2012).
CHAPTER 1: THE LAWYER AND
THE SOCIETY
CANON 1: A LAWYER SHALL UPHOLD THE
CONSTITUTION, OBEY THE LAWS OF THE
LAND AND PROMOTE RESPECT FOR LAW AND
LEGAL PROCESSES.
1.01 - A lawyer shall not engage in unlawful,
dishonest, immoral or deceitful conduct.
Unlawful Conduct
It is a transgression of any provision of law, which
need not be a penal law. The presence of evil intent
on the part of the lawyer is not essential in order to
bring his act or omission within the terms of this Rule
(Re: Report on the Financial Audit Conducted on the
Books of Accounts of Atty. Raquel Kho, A.M. No. P-
06-2177, April 13, 2007).
Dishonest Act
Denotes an absence of integrity; a disposition to
cheat, deceive, or defraud; deceive and betray.
(Alsup v. State, 91 Tex. Crim. R. 224, 1922).
Immoral or Deceitful Conduct
It involves moral turpitude (AGPALO, Ethics, supra
at 72).
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It is a conduct which is willful, flagrant, or
shameless, and which shows a moral indifference to
the opinion of the good and respectable members of
the community (Arciga v. Maniwang, A.M. No. 1608,
August 14, 1981).
Moral Turpitude
It is an act of baseness, vileness or depravity in the
duties which one person owes to another or to
society in general which is contrary to the usually
accepted and customary rule of right and duty which
a person should follow.
Examples of Crimes Involving Moral Turpitude
1. Estafa;
2. Bribery;
3. Murder;
4. Seduction;
5. Abduction;
6. Concubinage;
7. Smuggling;
8. Falsification of public document; and
9. Violation of B.P. 22 (PINEDA, Legal Ethics, 2009,
p.51) [hereinafter PINEDA, Legal].
Gross immorality is conduct which is so corrupt
and false as to constitute a criminal act or so
unprincipled or disgraceful as to be reprehensible to
a high degree (Reyes v. Wong, A.C. No. 547,
January 29, 1975).
Note: Gross immorality and not mere immorality is
sanctioned (FUNA, Legal and Judicial Ethics, 2009,
p.21) [hereinafter FUNA, Ethics].
Examples of Grossly Immoral Act:
1. Abandonment of family and cohabiting with
another woman (Narag v. Narag, A.C. No. 3405,
June 29, 1998);
2. A lawyer who had carnal knowledge with a
woman through a promise of marriage which he
did not fulfill (Quingwa v. Puno, A.C.No. 389,  disciplinary sanction against him, even if as a
February 28, 1967);
3. Seduction of a woman who is the niece of a
married woman with whom the respondent lawyer
had adulterous relations (Royong v. Oblena, A.C.
No. 376, April 30, 1963);
4. Lawyer arranging the marriage of his son to a
woman with whom the lawyer had illicit relations.
After the marriage of the woman to the
respondent’s son, he continued his adulterous
relations with her (Mortel v. Aspiras, G.R. No. L-
9152, December 28, 1956);
5. Lawyer inveigling a woman into believing that
they had been married civilly to satisfy his carnal
desires (Cabrera v. Agustin, G.R. No. L-225,
September 30, 1959);
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6. Lawyer taking advantage of his position as
chairman of the college of medicine and asked a
lady student to go with him to Manila where he
had carnal knowledge of her under threat that if
she refused, she would flunk in all her subjects
(Delos Reyes v. Aznar, A.M. No. 1334,
November 28, 1989);
7. Bigamy committed by the lawyer (In Re: Charges
of Villasanta for Immorality, April 30, 1957);
8. Concubinage coupled with failure to support
illegitimate children (Laguitan v. Tinio, A.M. No.
3049, December 4, 1989);
9. Adultery committed by the lawyer (Sevilla v.
Cardenas, G.R. No. 167684, July 31, 2006);
10. Facilitating another person’s travel using spurious
travel documents (Sebastian v. Calis, A.C. No.
5118, September 9, 1999);
11. Selling real property which is part of public
domain (Po Cham v. Pizarro, A.C. No. 5499,
August 16, 2005); and
12. When a Labor Arbiter asked complainant to give
him a portion of the monetary award that may be
granted thereafter, the Labor Arbiter is guilty of
gross immoral conduct and gross misconduct
(Abella v. Barrios, Jr., A.C. No. 7332, June 18,
2013).
Note: Gross immorality need not be committed
under scandalous circumstances and need not be
punishable by law (FUNA, Ethics, supra at 27).
Acts which do not Constitute Gross Immorality:
1. Stealing a kiss from a client (Advincula v.
Macabata, A.C. No. 7204, March 7, 2007);
2. Live-in relationship involving two unmarried
persons;
3. Mere intimacy between a man and woman, both
of whom possess no impediment to marry,
voluntarily carried on and devoid of any deceit on
the part of respondent, is neither so corrupt nor
so unprincipled as to warrant the imposition of
result of such relationship a child was born out of
wedlock (Arciga v. Maniwang, A.C. No. 1608,
August 14, 1981); and
4. Failure to pay a loan;
General Rule: A lawyer may not be disciplined
for failure to pay a loan. The proper remedy is the
filing of an action for collection of a sum of money
in regular courts (Toledo v. Abalos, A.C. No.
5141, September 29, 1999).
Exception: Deliberate failure to pay just debts
and the issuance of worthless checks (Lao v.
Medel, A.C. No. 5916, July 1, 2003).
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Just Debts processes (Batac, Jr. v. Cruz Jr., A.C. No. 5809,
Include unpaid rentals, electric bills, claims February 23, 2004);
adjudicated by a court of law, and claims the 4. Drafting and notarizing a document authorizing
existence and justness of which are admitted by the spouses to arry again and at the same time
debtor (Cham v. Paita-Moya, A.C. No. 7494, June renouncing whatever right of action one might
27, 2008). have against the party so marrying (In re:
Santiago, A.C. No. 932, June 21, 1940); or
Having incurred just debts, a lawyer has the moral 5. Lawyers who engage in irregularities such as
duty and legal responsibility to settle them when prohibited campaigning for national position in the
they become due. He should comply with his just Integrated Bar of the Philippines in the violation of
contractual obligations, act fairly and adhere to high IBP By-Laws (Re: 1989 Elections of the
ethical standards to preserve the court’s integrity, Integrated Bar of the Philippines, A.M. No. 491,
since he is an employee thereof (Cham v. Paita- October 6, 1989).
Moya, A.C. No. 7494, June 27, 2008).
Rule 1.03 - A lawyer shall not, for any corrupt
Plenary pardon does not itself warrant motive or interest, encourage any suit or
reinstatement, evidence of reformation must first be proceeding or delay any man's cause.
present (In re: Vailoces, A.M. No. 439, September
30, 1982). A lawyer owes to society and to the court the duty
not to stir up litigation.
Plagiarism
Maintenance
The rule exonerating judges from charges of
It is the intermeddling of an interested party to
plagiarism applies also to lawyers. Judges should
encourage a lawsuit. It is a taking in hand, a bearing
not be exposed to charges of plagiarism in what they
up or upholding of quarrels or sides, to the
write so long as they do not depart, as officers of the
disturbance of the common right (FUNA, Ethics,
court, from the objective of assisting the Court in the
supra at 45).
administration of justice (In matter of the charges of
plagiarism, etc. against Associate Justice Mariano
Reason: Prevent barratry and ambulance chasing
C. Del Castillo, A.M. No. 10-7-17-SC,  February 8,
2011).
Barratry
It is the offense of frequently exciting and stirring up
Rule 1.02 - A lawyer shall not counsel or abet
quarrels and suits, either at law or otherwise
activities aimed at defiance of the law or at
(Black’s Law Dictionary, 5th ed., citing State v.
lessening confidence in the legal system.
Batson N.C. 4121). The person who engages in
barratry is called a barretor or barrater.
A lawyer should not promote nor hold an
organization known for violating the law nor assist it
Ambulance Chasing
in a scheme which is dishonest. He should not allow
A solicitation of almost any kind of legal business by
his services to be engaged by an organization
laymen employed by an attorney for the purpose or
whose members are violating the law and defend
by the attorney himself.
them should they get caught (A.B.A OP 281, 1952).
It has spawned a number of recognized evils such
Examples of Activities Aimed at Defiance of Law
as (FSMD):
or Lessening Confidence in the Legal System:
1. Fomenting of litigation with resulting burdens on
1. Advising his clients to execute another Deed of
the courts and the public;
Absolute Sale antedated to 1979 to evade
2. Subornation of perjury;
payment of capital gains tax (Chua v. Mesina,
3. Mulcting of innocent persons by judgments, upon
A.C. No. 4904, August 12, 2004);
manufactured causes of action; and
2. Appearing as an attorney for a party to a case
4. Defrauding of injured persons having proper
without authority to do so (Santayana v.
causes of action but ignorant of legal rights and
Alampay, A.C. No. 5878, March 21, 2005);
court procedures by means of contracts which
3. Repeatedly disobeying orders of the Securities
retain exorbitant percentages of recovery and
and Exchange Commission (SEC) hearing panel
illegal charges for court costs and expenses and
to appear in the hearing and repeatedly failing to
by settlement made for quick returns of fees and
substantiate his excuse for failing to appear
against the just rights of the injured persons
constitute blatant disrespect for legal orders and

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 (Hightower v. Detroit Edison Co., 247 NW 97,
1933).
Note: Volunteering advice to bring lawsuit comes
within the prohibition, except where ties of blood,
relationship, and trust make it a duty to do so
(RULES OF COURT, Canons of Professional
Ethics, Canon 28).
Rule 1.04 - A lawyer shall encourage his clients
to avoid, end or settle a controversy if it will
admit of a fair settlement.
An attorney should be a mediator for concord and a
conciliator for compromise and not an instigator of
controversy and a predator of conflict (Castaneda v.
Ago, G.R. No. L-28546, July 30, 1975).
Advantages:
1. Parties in an amicable settlement enjoy benefits
better than those which can legally be secured to
them by the most elaborate and exacting judicial
procedure (Brodett v. Dela Rosa, G.R. No. L-783,
December 18, 1946).
2. A litigation involves time, expense and ill feelings
which may be avoided by the settlement of the
action (AGPALO, Ethics, supra at 75-76).
A lawyer cannot, without special authority,
compromise his client’s litigation or receive anything
in discharge of the client’s claim but the full amount
in cash. A compromise entered into without authority
is merely unenforceable. HOWEVER, a lawyer has
the exclusive management of the procedural aspect
of the litigation including the enforcement of rights
and remedies of the client (Melendrez v. Decena,
A.M. No. 2104, August 24, 1989).
Settlement between two contending parties may be
agreed upon at any stage of legal proceeding. This
Rule provides the important role expected from a
lawyer in the settlement between contending parties.
Note: This rule does not extend to instances where
a “fair settlement” is not the possible option (FUNA,
Ethics, supra at 47).
The following mandates the parties to consider the
possibility of amicable settlement:
1. Rules of Court, Rule 18 on Pre-trial, Sec. 2;
2. The Local Government Code (Barangay
Conciliation Proceedings); and
3. Judicial Dispute Resolution.
CANON 2: A LAWYER SHALL MAKE HIS LEGAL
SERVICES AVAILABLE IN AN EFFICIENT AND
CONVENIENT MANNER COMPATIBLE WITH THE
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INDEPENDENCE, INTEGRITY AND
EFFECTIVENESS OF THE PROFESSION.
Rule 2.01 - A lawyer shall not reject, except for
valid reasons, the cause of the defenseless or
the oppressed.
Reason: It is the lawyer’s prime duty to see to it that
justice is accorded to all without discrimination.
Defenseless
Those who are not in a position to defend
themselves due to poverty, weakness, ignorance or
other similar reasons
Oppressed
The victims of cruelty, unlawful exaction, domination
or excessive use of authority
The general rule, made clear by the phrase “shall
not reject”, is that the lawyer is mandated to serve
the marginalized.
Legal aid is not a matter of charity, but a public
responsibility
It is a means for the correction of social imbalance
that may and often do lead to injustice, for which
reason it is the public responsibility of the Bar (IBP
Handbook, Art. 1, Sec. 1).
A lawyer should decline professional employment
regardless of how attractive the fee offered may be if
its acceptance will involve:
1. A violation of any of the rules of the legal
profession;
2. Nullification of a contract which he prepared;
3. Advocacy in any matter in which he had
intervened while in the government service;
4. Employment, the nature of which might easily be
used as a means of advertising his professional
services or his skill;
5. Employment with a collection agency, which
solicits business to collect claims; and
6. Any matter in which he knows or has reason to
believe that he or his partner will be an essential
witness for the prospective client.
Rule 2.02 - In such cases, even if the lawyer does
not accept a case, he shall not refuse to render
legal advice to the person concerned if only to
the extent necessary to safeguard the latter's
rights.
This is the only exception to the general rule that
consultation creates a lawyer-client relationship.
Even if no lawyer-client relationship is created, as
when the lawyer categorically refuses to accept a
case, a lawyer is still bound to give legal advice to
`
the defenseless and the oppressed in protection of
the latter’s right (FUNA, Ethics, supra at 51).
“If only to the extent necessary to safeguard the
latter’s rights”
This means advising a person on what preliminary
steps to take until he has secured the services of
counsel. HOWEVER, he shall refrain from giving
such preliminary advice if there is conflict of interest
between him and a prospective client or between a
present client and a prospective one. Extending
such legal advice will create and establish an
attorney-client relationship between them and may
violate the rule prohibiting a lawyer from
representing conflicting interest (AGPALO, Ethics,
supra at 78-79).
Rule 2.03 – A lawyer shall not do or permit to be
done any act designed primarily to solicit legal
business.
The rule prohibits professional touting.
The following are the reasons why the rules prohibit
solicitation:
1. The profession is primarily for public service;
2. Commercializes the profession;
3. Involves self-praise and puffing;
4. Damages public confidence; and
5. May increase lawsuits and result in needless
litigation.
Practice of Law v. Business
1. A duty of public service, of which the emolument
is a by-product, and which one my attain the
highest eminence without making much money;
2. A relation as an “officer of the court” to the
administration of justice involving thorough
sincerity, integrity and reliability;
3. A relation to the clients in the highest degree of
fiduciary;
4. A relation to colleagues characterized by candor,
fairness and unwillingness to resort to current
business methods of advertising and
encroachment on their practice or dealing directly
with their clients (In re Sycip, 92 SCRA 1, July
30, 1979).
The best advertisement for a lawyer is a well-
deserved reputation for competence, honesty and
fidelity to private trust and public duty.
Rule 2.04 - A lawyer shall not charge rates lower
than those customarily prescribed unless the
circumstances so warrant.
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Reason: To avoid any demeaning and degrading
competition
Exceptions: Valid justifications such as when the
client is a relative or a brother lawyer or is too poor
that it would be inhumane to charge him even the
customary rates of attorney’s fees (PINEDA, Legal,
supra at 83).
Note: What the rule prohibits is competition in the
matter of charging professional fees for the purpose
of attracting clients in favor of the lawyer who offers
lower rates. The rule does not prohibit a lawyer from
charging a reduced fee or none at all to an indigent
(Comments of the IBP Committee).
Some IBP Chapters in the country have approved
Schedules of Attorney’s Fees providing specific
guidelines in the fixing of attorney’s fees for legal
services, including but not limited to consultation,
documentation, notarization, pleading, research, trial
work, appearance fees, acceptance fees, retainers
and similar others. Other Chapters, while they do not
have such Schedules, have followed and are still
following a long standing local custom or tradition on
the amounts of attorney’s fees for their legal
services (PINEDA, Legal, supra at 83).
CANON 3: A LAWYER IN MAKING KNOWN HIS
LEGAL SERVICES SHALL USE ONLY TRUE,
HONEST, FAIR, DIGNIFIED AND OBJECTIVE
INFORMATION OR STATEMENT OF FACTS.
Reason: Legal services, unlike other personal
services rendered by other professionals or skilled
workers require a certain degree of dignity to be
maintained (FUNA, Ethics, supra at 62).
Advertising and Solicitation
Rule 3.01 - A lawyer shall not use or permit the
use of any false, fraudulent, misleading,
deceptive, undignified, self-laudatory or unfair
statement or claim regarding his qualifications
or legal services.
General Rule: A lawyer cannot advertise his talent
as a shopkeeper advertises his wares as he is a
member of an honorable profession whose primary
purpose is to render public service and help secure
justice and in which the remuneration is a mere
incident (AGPALO, Ethics, supra at 118).
Exceptions:
1. Writing legal articles;
2. Engaging in business or other occupations
except when such could be deemed improper, be
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 seen as indirect solicitation or would be the
equivalent of law practice;
3. Publication in reputable law lists, but only of brief
biographical and informative data; The reputable
law list must be published primarily for that
purpose. It cannot be a mere supplement of a
magazine or journal (AGPALO, Ethics, supra at
121).
4. Use of an ordinary professional card;
5. Notice to other local lawyers and publishing in a
legal journal of one’s availability to act as an
associate for them;
6. The proffer of free legal services to the indigent,
even when broadcasted over the radio or
tendered through circulation of printed matter to
the general public;
7. Seeking a public office, which can only be held by
a lawyer or, in a dignified manner, a position as a
full time corporate counsel;
8. Simple announcement of the opening of a law
firm or of changes in the partnership, associates,
firm name or office address, being for the
convenience of the profession;
9. Listing in a phone directory, but not under a
designation of a special branch of law;
10. Activity of an association for the purpose of legal
representation;
11. Selling for publication article of general nature on
legal subjects;
12. Sending upon request his picture for publication
with the article in law journal; and
13. Submitting for publication to a bar association
journal an unsolicited article on a legal subject.
Certain self-laudation maybe disseminated, such as
the election to a public office, scholastic honors and
achievements, and legal authorships. It is prohibited
when it creates an unjustified expectation such as
when it announces the successful results it had
obtained in one case which might be deceptive and
misleading because past performance is not an
indication of future performance (FUNA, Ethics,
supra at 64).
The professional card may contain only a statement
of his name, the name of the law firm of which he is
connected with, address, telephone number and
special branch of law practices (A.B.A. Op. 11, May
11, 1927).
Solicitation of cases constitutes malpractice. The law
prohibits lawyers from soliciting cases for the
purpose of gain, either personally or through paid
agents or brokers (RULES OF COURT, Rule 138,
Sec. 27).
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Instances of Prohibited Advertisement and
Solicitation (AGPALO, Ethics, supra at 126)
1. The use of a card containing the following: “As a
notary public, he can execute for you a deed of
sale, can renew lost documents of young
animals, can make your application and final
requisites for your homestead, and execute any
kind of affidavit. As a lawyer, he can help you
collect your loans although long overdue, as well
as any complaint for or against you. Come or
write to him in his town, Echague, Isabela. He
offers free consultation, and is willing to help and
serve the poor.” (In re: Tagorda, 53 Phil. 37,
March 23, 1929).
2. Causing to be published in a newspaper the
following advertisement: “Marriage License
promptly secured through our assistance and the
annoyance of delay or publicity avoided if
desired, and marriage arranged to the wishes of
the parties. Consultation on the matter free to the
poor. Everything confidential. Legal Assistance.”
(Director of Religious Affairs v. Bayot, A.C. No. L-
1117, March 20, 1944).
3. A newspaper ad which reads: “Secret Marriage?
P560.00 for a valid marriage. Info on Divorce,
Absence, Annulment, VISA, Guam Divorce. Don
Arkinson an attorney in Guam is giving free
books on Guam Divorce through the Legal Aid
Clinic” (Ulep v. Legal Aid Clinic Inc., B.M. No. L-
553, June 17, 1993).
4. A paid advertisement in a newspaper, which
reads: “Annulment of Marriage Specialist 532-
4333/521-2667” (Khan Jr. v. Simbillo, A.C. No.
5299, August 19, 2003).
A lawyer who agrees with a non-lawyer to divide
attorney’s fees paid by clients supplied or solicited
by the non-lawyer is guilty of malpractice, the same
being a form of solicitation of cases (Tan Tek Beng
v. David, A.C. No. 1261, December 29, 1983).
Use of Law Firm Name
Rule 3.02 - In the choice of a firm name, no false,
misleading or assumed name shall be used. The
continued use of the name of a deceased partner
is permissible provided that the firm indicates in
all its communications that said partner is
deceased.
Use of a Deceased Partner’s Name
The reason for allowing the continued use of the
name of a deceased partner is that all of the
partners, by their joint efforts, contributed to the
goodwill attached to the firm name. This goodwill is
disturbed by a change in the firm name every time a
partner dies (AGPALO, Ethics, supra at 129).
`
The use of a cross after the name of the deceased
partner is sufficient indication. It is advisable that the
year of death be also indicated (PINEDA, Legal,
supra at 87).
No name not belonging to any of the partners or
associates may be used in the firm name for any
purpose.
The name of a law firm may not necessarily identify
the individual members of the firm and
consequently, use of the firm name after the death
of one or more of the partners is not deception.
(Comments of IBP Committee)
Use of a Foreign Law Firm Name
Filipino lawyers cannot practice law under the name
of a foreign law firm, as the latter cannot practice law
in the Philippines and the use of the foreign law firm
in the country is unethical (Dacanay v. Baker &
McKenzie, A.C. No. 2131, May 10, 1985).
Rule 3.03 - Where a partner accepts public office,
he shall withdraw from the firm and his name
shall be dropped from the firm name unless the
law allows him to practice law concurrently.
Reason: To prevent the law firm or partners from
making use of the name of the public official to
attract business and to avoid suspicion of undue
influence (Report of the IBP Committee, p. 16).
(See discussion on Practice of Law by Public
Officials, infra.)
Rule 3.04 – A lawyer shall not pay or give
anything of value to representatives of the mass
media in anticipation of, or in return for, publicity
to attract legal business.
Reason: To prevent some lawyers from gaining an
unfair advantage over others thru the use of
gimmickry, press agentry, or other artificial means
(AGPALO, Ethics, supra at 131).
Note: The lawyer is not required to decline genuine
media attention to advocacies which have generated
public interest. In some instances, his advocacy
needs the indispensable participation of media, such
as the advocacy to expose government corruption
(FUNA, Ethics, supra at 75).
CANON 4: A LAWYER SHALL PARTICIPATE IN
THE DEVELOPMENT OF THE LEGAL SYSTEM
BY INITIATING OR SUPPORTING EFFORTS IN
LAW REFORM AND IN THE IMPROVEMENT OF
THE ADMINISTRATION OF JUSTICE.
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While the lawyer’s task in contributing to the
improvement of the legal system is not a matter of
strict duty, it is a duty nonetheless which flows from
the lawyer’s sense of public responsibility (PINEDA,
Legal, supra at 94).
CANON 5: A LAWYER SHALL KEEP ABREAST
OF LEGAL DEVELOPMENTS, PARTICIPATE IN
CONTINUING LEGAL EDUCATION PROGRAMS,
SUPPORT EFFORTS TO ACHIEVE HIGH
STANDARDS IN LAW SCHOOLS AS WELL AS IN
THE PRACTICAL TRAINING OF LAW STUDENTS
AND ASSIST IN DISSEMINATING THE LAW AND
JURISPRUDENCE.
This duty carries with it the obligation to be well
informed of the existing laws and to keep abreast
with legal developments, recent enactment and
jurisprudence. Unless they faithfully comply with
such duty they may not be able to discharge
competently and diligently their obligations as
members of the Bar. Worse, they may become
susceptible to committing mistakes (Dulalai Jr. v.
Cruz, A.C. No. 6854, April 27, 2007, citing Santiago
v. Rafanan).
Three-Fold Obligation of a Lawyer Concerning
the Requirement of Continuing Legal Education:
1. He owes it to himself to continue improving his
knowledge of the law;
2. He owes it to his profession to take an active
interest in the maintenance of high standards of
legal education; and
3. He owes it to the lay public to make the law a
part of their social consciousness (AGPALO,
Ethics, supra at 80).
Rules on Mandatory Continuing Legal Education
(MCLE) for Members of the IBP (Bar Matter no.
850)
Purpose: To ensure that throughout their career,
they keep abreast with law and jurisprudence,
maintain the ethics of the profession and enhance
the standards of the practice of law (Rules on
MCLE, Rule 1, Sec. 1).
Requirements of Completion of MCLE
Members of the IBP, unless exempted under Rule 7,
shall complete every three (3) years at least 36
hours of continuing legal education activities.
Parties Exempted from the MCLE:
1. The President, Vice-President, and the
Secretaries and Undersecretaries of executive
departments;
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 2. Senators and Members of the House of
Representatives;
3. The Chief Justice and Associate Justices of the
SC, incumbent and retired justices of the
judiciary, incumbent members of the Judicial and
Bar Council and incumbent court lawyers covered
by the Philippine Judicial Academy Program of
Continuing Legal Education;
4. The Chief State Counsel, Chief State Prosecutor
and Assistant Secretaries of the Department of
Justice;
5. The Solicitor-General and the Assistant
Solicitors-General;
6. The Government Corporate Counsel, Deputy and
Assistant Government Corporate Counsel;
7. The Chairman and Members of the Constitutional
Commissions;
8. The Ombudsman, the Overall Deputy
Ombudsman, the Deputy Ombudsman and the
Special Prosecutor of the Office of the
Ombudsman;
9. Heads of government agencies exercising quasi-
judicial functions;
10. Incumbent deans, bar reviewers and professors
of law who have teaching experience for at least
10 years in accredited law schools;
11. The Chancellor, Vice-Chancellor and members of
the Corps of Professional Lecturers of the
Philippine Judicial Academy; and
12. Governors and Mayors.
Other Exempted Parties:
1. Those who are not in law practice, private or
public; and
2. Those who have retired from law practice with the
approval of the IBP Board of Governors.
Application for Exemption from or Modification
of the MCLE Requirement
1. A member may file a verified request setting forth
good cause for exemption (such as physical
disability, illness, post-graduate study abroad,
proven expertise in law) from compliance with or
modification of any of the requirements, including
an extension of time for compliance, in
accordance with procedure to be established by
the committee on MCLE.
2. Applications for exemption from or modification of
the MCLE requirement shall be under oath and
supported by documents.
What constitutes non-compliance (CASE-PA)
1. Failure to Complete education requirement within
the compliance period;
2. Failure to provide Attestation of compliance or
exemption;
8
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3. Failure to provide Satisfactory evidence of
compliance;
4. Failure to satisfy the Education requirement and
furnish the evidence of such compliance within 60
days from receipt of non-compliance notice
5. Failure to Pay non-compliance fee within the
prescribed period; and
6. Any other act or omission Analogous to any of
the foregoing or intended to circumvent or evade
compliance with the MCLE requirement.
Consequences of Non-compliance
1. A member who fails to comply with the
requirements after the 60-day period shall be
listed as delinquent member by the IBP Board of
Governors upon recommendation of the
Committee on MCLE.
2. The listing as a delinquent member is
administrative in nature BUT shall be made with
notice and hearing by the Committee on MCLE.
B.M. No. 1922, as amended, REQUIRES
practicing members of the bar to INDICATE in all
pleadings filed before the courts or quasi-judicial
bodies, the NUMBER AND DATE OF ISSUE of
their MCLE Certificate of Compliance or
Certificate of Exemption, as may be applicable,
for the immediately preceding compliance period.
Failure to disclose the required information would
cause the dismissal of the case and the
expunction of the pleadings from the records.
Note: The Court en banc issued a Resolution
dated January 14, 2014, which reads as follows:
B.M. No. 1922 (Re: Recommendation of the
Mandatory Continuing Legal Education [MCLE]
Board to Indicate in All Pleadings Filed with the
Courts the Counsel's MCLE Certificate of
Compliance or Certificate of Exemption). The
Court Resolved, upon the recommendation of the
MCLE Governing Board, to:
a.AMEND the June 3, 2008 resolution by
repealing the phrase "Failure to disclose the
required information would cause the dismissal
of the case and the expunction of the pleadings
from the records" and replacing it with "Failure
to disclose the required information would
subject the counsel to appropriate penalty and
disciplinary action"; and
b.PRESCRIBE the following rules for non-
disclosure of current MCLE compliance /
exemption number in the pleadings:
i. The lawyer shall be imposed a fine of
P2,000.00 for the first offense, P3,000.00 for
the second offense and P4,000.00 for the
third offense;
`
ii. In addition to the fine, counsel may be listed
as a delinquent member of the Bar pursuant
to Section 2, Rule 13 of Bar Matter No. 850
and its implementing rules and regulations;
and
iii. The non-compliant lawyer shall be
discharged from the case and the client/s
shall be allowed to secure the services of a
new counsel with the concomitant right to
demand the return of fees already paid to
the non-compliant lawyer (B.M. No. 1922,
Re: Recommendation of the MCLE Board to
Indicate in All Pleadings filed with the
Courts the Counsel's MCLE Certificate of
Compliance or Certificate of Exemption).
CANON 6: THESE CANONS SHALL APPLY TO
LAWYERS IN GOVERNMENT SERVICES IN THE
DISCHARGE OF THEIR TASKS.
Reason: A lawyer does not shed his professional
obligations upon his assuming public office
(AGPALO, Ethics, supra at 80).
In fact, his professional obligation should make him
more sensitive to his official obligation because a
lawyer’s disreputable conduct is more likely to be
magnified in the public eye (Comment of IBP
Committee).
Rule 6.01 - The primary duty of a lawyer engaged
in public prosecution is not to convict but to see
that justice is done. The suppression of facts or
the concealment of witnesses capable of
establishing the innocence of the accused is
highly reprehensible and is cause for
disciplinary action
Public Prosecutor
He is a quasi-judicial officer and as such, he should
seek equal and impartial justice. He should be
concerned with seeing that no innocent man suffers
as in seeing that no guilty man escapes (State v.
Platon, 40 O.G., 6th Supp. 235).
Note: The interest of a prosecutor in a criminal
prosecution is not to win a case but to see that
justice is done (PINEDA, Legal, supra at 105).
He should see to it that the accused is given fair and
partial trial and not deprived of any of his statutory or
constitutional rights. He should recommend the
acquittal of the accused whose conviction is on
appeal, if he finds no legal basis to sustain the
conviction (Trieste v. Sandiganbayan, G.R. No.
70332-43, November 13, 1986).
9
Private Prosecutor
General Rule: The offended party has the right to
intervene in the prosecution of a crime.
Exceptions:
1. Where from the nature of the crime and the law
defining and punishing it, no civil liability arises in
favor of the offended party; and
2. Where from the nature of the offense the
offended party is entitled to civil indemnity arising
therefrom but he has waived the same or has
expressly reserved his right to institute a civil
action or has already instituted said action
(AGPALO, Ethics, supra at 86).
All criminal actions commenced by complaint or
information shall be prosecuted under the direction
and control of the prosecutor. In case of heavy work
schedule of the public prosecutor or in the event of
lack of public prosecutors, the private prosecutor
may be authorized in writing by the Chief of the
Prosecution Office or the Regional State Prosecutor
to prosecute the case subject to the approval of the
Court. Once so authorized to prosecute the criminal
action, the private prosecutor shall continue to
prosecute the case up to the end of the trial even in
the absence of a public prosecutor, unless the
authority is revoked or otherwise withdrawn (RULES
OF COURT, Rule 110, Sec. 5)
If the case is dismissed, the private prosecutor may
NOT file a motion for reconsideration for such duty
belongs solely to the public prosecutor.
Restrictions against Using Public Office to
Promote Private Interest
Rule 6.02 - A lawyer in the government service
shall not use his public position to promote or
advance his private interests, nor allow the latter
to interfere with his public duties.
Applicability of the Rule:
1. Lawyers in government service allowed by law to
engage in private practice concurrently; and
2. Those who, though prohibited from engaging in
the practice of law, have friends, former
associates and relatives who are in the active
practice of law (AGPALO, Ethics, supra at 89).
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
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 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;
3. Recommend any person to any position in a
private enterprise which has a regular or pending
official transaction with their office; and
4. Use or divulge confidential or classified
information officially known to them by reason of
their office and not available to the public (RA
6713, Sec. 7(b) and (c)).
Restrictions against Former Official from
Accepting Certain Employment
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.
Reason: To avoid conflict of interests, preclude the
lawyer from using secrets or information learned in
his official capacity, or prevent the appearance of
impropriety.
Any Matter
Refers to any discrete, isolatable act, as well as
identifiable transaction or conduct involving a
particular situation and specific party, and not merely
an act of drafting, enforcing or interpreting
government or agency proceeding, regulations or
laws or briefing abstract principles of law
Intervene
Includes an act of a person who has the power to
influence the subject proceedings (PCGG v.
Sandiganbayan, G.R. No.151809-12, April 12,
2005).
RA 6713, Section 7 (b)
Prohibits any former public official or employee for a
period of one year after retirement or separation
from office to practice his profession in connection
with any other matter before the office he used to be
with.
Forbidden Office
A member of the legislature may not accept an
appointment in an office in which was created nor
had its emoluments increased during the lawmakers’
term of office (CONST., Art. VI, Sect 13).
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CHAPTER II: THE LAWYERS AND
THE LEGAL PROFESSION
CANON 7: A LAWYER SHALL AT ALL TIMES
UPHOLD THE INTEGRITY AND DIGNITY OF THE
LEGAL PROFESSION AND SUPPORT THE
ACTIVITIES OF THE INTEGRATED BAR.
A lawyer who disobeys the law disrespects it. Thus,
he disregards legal ethics and disgraces the dignity
of the legal profession (Catu v. Rellosa, A.C. No.
5738, February 19, 2008).
Rule 7.01 - A lawyer shall be answerable for
knowingly making a false statement or
suppressing a material fact in connection with
his application for admission to the bar.
A lawyer is expected to be honest from the moment
he applies for admission to the bar. However, the
falsity referred to in this Canon must be knowingly
done (FUNA, Ethics, supra at 100).
Consequences of Knowingly Making a False
Statement or Suppression of a Material Fact in
the Application for Admission to the Bar
1. If the false statement or suppression of material
fact is discovered before the candidate could take
the bar examinations, he will be denied
permission to take the examinations.
2. If the false statement or suppression of material
fact was discovered after the candidate had
passed the examinations but before having taken
his oath, he will not be allowed to take his oath as
a lawyer.
3. If the discovery was made after the candidate
had taken his oath as a lawyer, his name will be
stricken from the Roll of Attorneys (PINEDA,
Legal, supra at 117).
Effect if what is concealed is a crime NOT
involving moral turpitude
Concealment will be taken against him. It is the fact
of concealment and not the commission of the crime
itself that makes him morally unfit to become a
lawyer. When he made concealment, he perpetrated
perjury (In re: Galang, A.M. No. 1162, August 29,
1975).
Note: By asking admission to the practice of law, an
applicant puts in issue all his qualifications and
assumes the burden of proof to establish all those
qualifications to the satisfaction of the court
(Rosencranz v. Tidrington, 193 Ind. 472, 141 N.E.
58).
`
Rule 7.01, Canon 7, Chapter II of the Code of
Professional Responsibility explicitly provides: "A
lawyer shall be answerable for knowingly making a
false statement or suppression of a material fact in
connection with his application for admission to the
bar.” A lawyer’s declaration in his application for
Admission to the 1981 Bar Examinations that he
was "single" was a gross misrepresentation of a
material fact made in utter bad faith, for which he
should be made answerable (Leda v. Tabang, A.C.
No. 2505, February 21, 1992).
Rule 7.02 - A lawyer shall not support the
application for admission to the bar of any
person known by him to be unqualified in
respect to character, education, or other relevant
attribute.
Public policy requires that the practice of law be
limited to those individuals found duly qualified in
education and character. The permissive right
conferred on the lawyer is an individual and limited
privilege, subject to withdrawal if he fails to maintain
proper standards of moral and professional conduct
(AGPALO, Ethics, supra at 113).
Rule 7.03 - A lawyer shall not engage in conduct
that adversely reflects on his fitness to practice
law, nor shall he, whether in public or private
life, behave in a scandalous manner to the
discredit of the legal profession.
This conduct of nobility and uprightness should stay
with him whether in his public or private life. A
lawyer who commits an unlawful act though not
related to the discharge of his professional duties as
a member of the Bar, which puts his moral character
in serious doubt, renders him unfit to continue in the
practice of law (Melendrez v. Decena, A. M. No.
2104, August 24, 1989).
The grounds for disciplinary actions enumerated
under the Rules of Court are not exclusive and are
so broad as to cover practically any misconduct of a
lawyer in his professional and private capacity (In re:
Pelaez, 44 Phil. 567, March 3, 1923).
There is no distinction as to whether the
transgression is committed in the lawyer’s
professional capacity or in his private life or in his
private transaction because a lawyer may not divide
his personality so as to be an attorney at one time
and a mere citizen at another (FUNA, Ethics, supra
at 29).
11
CANON 8: A LAWYER SHALL CONDUCT
HIMSELF WITH COURTESY, FAIRNESS AND
CANDOR TOWARDS HIS PROFESSIONAL
COLLEAGUES, AND SHALL AVOID HARASSING
TACTICS AGAINST OPPOSING COUNSEL.
Rule 8.01 - A lawyer shall not, in his professional
dealings, use language which is abusive,
offensive or otherwise improper.
Any kind of language which attacks without
foundation the integrity of the opposing counsel or
the dignity of the court may be stricken off the
records or may subject a lawyer to disciplinary
action (Report of IBP Committee, p. 41).
Language to be Used:
A lawyer’s language should be forceful but dignified,
emphatic but respectful as befitting an advocate and
in keeping with the dignity of the Legal Profession
(Surigao Mineral Reservation Board v. Cloribel, G.R.
No. L-27072, January 9, 1970).
Instances of Disrespectful Language
39608. Categorizes the SC decision as false
erroneous and illegal (Surigao Mineral
Reservation Board v. Cloribel, G.R. No. L-27072
January 9, 1970);
39609. Description of judges attitude as “unjust,
hostile, vindictive and dangerous” (Cornejo v.
Judge Tan, G.R. No. L-2217, March 23, 1950);
39610. Calling an adverse counsel as bobo or
using the word “ay que bobo” in reference to the
manner of offering evidence (Castillo v. Padilla
Jr., A.C. No. 2339, February 24, 1984);
39611. Summoning another lawyer in a shouting
match, hurling invectives and attempting to throw
a punch (Alcantara v. Pefianco, A.C. No. 5298,
December 3, 2002);
39612. Stating that ‘justice is blind and also “deaf
and dumb” (In re: Almacen, G.R.No.27654,
February 18, 1970); and
39613. Attributing to the SC acts of dismissing
judges “without rhyme and reason” and disbarring
lawyers “without due process” (Zaldivar v.
Gonzalez, G.R. 79690-707, February 1, 1989).
Any undue ill-feeling between clients should not
influence counsels in their conduct and demeanor
toward each other. While lawyers owe entire
devotion to the interests of their clients, their office
does not permit violation of the laws or any manner
of fraud or chicanery (Reyes v. Chiong, Jr., A.C. No.
5148, July 1, 2003).
A lawyer who uses intemperate, abusive, abrasive
or threatening language portrays disrespect to the
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court, disgraces the Bar and invites the exercise by
the court of its disciplinary power (In re: Gomez, 43
Phil. 376, May 16, 1922).
The lawyer’s arguments, whether written or oral,
should be gracious to both the court and opposing
counsel and be of such words as may be properly
addressed by one gentleman to another (National
Security Co. v. Jarvis, 278 U.S. 610, 1928).
Lack or want of intention is no excuse for the
disrespectful language employed. Counsel cannot
escape responsibility by claiming that his words did
not mean what any reader must have understood
them as meaning (Rheem of the Philippines v.
Ferrer, G.R. No. L-22979, January 27, 1967).
HOWEVER, utterances made out of impulse in the
course of an argument may be forgiven and should
not be penalized (Cruz v. Cabrera, A.C. No. 5737,
October 25, 2004). In addition, statements made in
the course of judicial proceedings, including all kinds
of pleadings, petitions and motions, are absolutely
privileged regardless of the defamatory tenor and of
the presence of malice, provided it is relevant,
pertinent or material to the cause or the subject of
inquiry (Tolentino v. Baylosis, G.R. No. L-15742,
January 31, 1961).
Rule 8.02 - A lawyer shall not, directly or
indirectly, encroach upon the professional
employment of another lawyer, however, it is the
right of any lawyer, without fear or favor, to give
proper advice and assistance to those seeking
relief against unfaithful or neglectful counsel.
Duty to Refrain from Professional Encroachment
Part of the professional courtesy to a fellow lawyer is
the respect for the lawyer-client relationship existing
between another lawyer and his clients (FUNA,
Ethics, supra at 113).
A person without a retained lawyer is a legitimate
prospective client for any lawyer whom he
approaches for legal services. But, as soon as he
had retained one and had not dismissed the retained
counsel, efforts on the part of another lawyer to take
him as client constitutes an act of encroaching upon
the employment of another lawyer (PINEDA, Legal,
supra at 130)
Rules on Accepting Employment on a Matter
Previously Handled by Another Lawyer
1. A lawyer may properly accept employment to
handle a matter which has been previously
handled by another lawyer, provided that the first
lawyer has been given notice by the client that his
12
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services have been terminated.
2. In the absence of such notice of termination by
the client, a lawyer retained to take over a case
from a peer in the bar should do so only after he
shall have obtained conformity of the counsel
whom he would substitute.
3. In the absence of such conformity by the counsel,
he should at least give sufficient notice to such
lawyer of the contemplated substitution.
4. His entry of appearance without notice to the first
lawyer is an improper encroachment upon the
professional employment of the original counsel.
5. The notice will enable the lawyer sought to be
charged to assert and protect any right to
compensation which he may claim or possess
(AGPALO, Ethics, supra at 111).
A lawyer should not in any way communicate upon
the subject of controversy with a party represented
by counsel, much less should he undertake to
negotiate or compromise the matter with him, but
should deal with his counsel.
Exceptions:
1. A lawyer may properly interview any witness or
prospective witness for the opposing side in any
civil or criminal action without the consent of
opposing counsel or party.
2. Any person who seeks relief against an unfaithful
or neglectful lawyer may approach another
lawyer for proper advice and assistance. Any
advice or assistance extended after proper
verification is not encroaching upon the business
of another lawyer for such act is justified under
the circumstances.
CANON 9: A LAWYER SHALL NOT, DIRECTLY
OR INDIRECTLY, ASSIST IN THE
UNAUTHORIZED PRACTICE OF LAW.
The unauthorized practice of law must not be
tolerated, much less assisted by lawyers. An
unauthorized practice of law can bring detriment,
danger and damage to private individuals who
should be receiving competent and learned legal
assistance from lawyers who can be held
accountable (FUNA, Ethics, supra at 116).
Purpose: To protect the public, the court, the client
and the bar from the incompetence or dishonesty of
those unlicensed to practice law and not subject to
the disciplinary control of the court (Phil. Assoc of
Free Labor Union v. Binalbagan Isabela Sugar Co.,
G.R. No. L-23959, November 29, 1971).
Passing the bar and taking the oath does not mean
that one is a lawyer already. It is the signing of the
`
Roll of Attorneys that finally makes one a full-fledged
lawyer. Before such time, one cannot engage in the
practice of law (Aguirre v. Rana, B.M. No.
1036,   June 10, 2003).
Intervention of Intermediary
A lawyer is PROHIBITED from allowing an
intermediary to intervene in the performance of his
professional obligation. The lawyer’s relation to the
client is PERSONAL and his responsibility is
DIRECT to the client (AGPALO, Ethics, supra at
114).
Contempt as Penalty
The act of pretending or assuming to be an attorney
or an officer of the court and acting as such without
authority is punishable with indirect contempt of
court (RULES OF COURT, Rule 71, Sec.3 [e]).
While a lawyer may accept employment from any
organization to render legal services in any matter in
which the organization as an entity is interested, that
employment should not include the rendering of
legal services to members of such organization in
respect to their individual affair (RULES OF
COURT, Canons of Professional Ethics, Canon 35).
Examples of Violations of this Canon:
1. Respondent admitted that the letterhead of the
law office listed two persons as senior partners
but who are in fact paralegals and not lawyers.
They are listed in the letterhead as senior
partners because they have investments in her
law office. That is a blatant misrepresentation
(Cambaliza v. Atty. Cristal-Tenorio, A.C. No.
6290, July 14, 2004);
2. Respondent, who held himself out as a partner of
a law firm, was rendering legal services together
with persons not licensed to practice law. The
firm was actually a cooperative composed of non-
lawyers (Plus Builders, Inc. et. al. v. Revilla, A.C.
No. 7056, September 13, 2006); and
3. When a lawyer may have at first operated under
an honest mistake of fact wherein he thought that
what he had signed at the PICC entrance before
the oath-taking was already the Roll of Attorneys.
However, the moment he realized that what he
had signed was merely an attendance record, he
could no longer claim honest mistake of fact as a
valid justification. He should have known that he
was not a full-fledged member of the Philippine
Bar because of his failure to sign the Roll of
Attorneys, as it was the act of signing therein that
would have made him so (In Re: Petition to Sign
in the Roll of Attorneys Michael A. Medado, B.M.
No. 2540, September 24, 2013).
13
Note: This duty likewise applies to law students and
Bar candidates. As aspiring members of the Bar,
they are bound to comport themselves in
accordance with the ethical standards of the legal
profession (In Re: Petition to Sign in the Roll of
Attorneys Michael A. Medado, B.M. No. 2540,
September 24, 2013).
Rule 9.01- A lawyer shall not delegate to any
unqualified person the performance of any task
which by law may only be performed by a
member of the bar in good standing.
Reasons:
1. The practice of law is limited only to individuals
duly qualified in moral character and education
and who passed the Bar Examinations.
2. A client-lawyer relationship is a personal one.
Attorneys are selected on account of their special
fitness through their learning or probity for the
work in hand.
Note: “Unqualified person” is not limited to non-
lawyers but also to lawyers who are not in good
standing and lawyers who are unqualified (FUNA,
Ethics, supra at 123).
Lawyers can engage the services of secretaries,
investigators, detectives, researchers, as long as
they are not involved in the practice of law.
The preparation and signing of a pleading constitute
legal work involving the practice of law which is
reserved exclusively for members of the legal
profession (Tapay v. Bancolo, A.C. No. 9604, March
20, 2013).
Rule 9.02 - A lawyer shall not divide or stipulate
to divide a fee for legal services with persons
not licensed to practice law, except:
1.Where there is a pre-existing agreement with a
partner or associate that, upon the latter's
death, money shall be paid over a reasonable
period of time to his estate or to persons
specified in the agreement; or
2.Where a lawyer undertakes to complete
unfinished legal business of a deceased
lawyer; or
3.Where a lawyer or law firm includes non-
lawyer employees in a retirement plan, even if
the plan is based in whole or in part, on a
profit-sharing agreement.
General Rule: Non-lawyers are not entitled to
attorney’s fees.
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Reason: Not to leave the public in hopeless
confusion as to whom to consult in case of necessity
and also to leave the bar in a chaotic condition,
aside from the fact that non-lawyers are not
amenable to disciplinary measures
The first and second exceptions to the rule, strictly
speaking, represent compensation for legal services
rendered by the deceased lawyer during his lifetime,
which is paid to his estate or heirs.
Note: Impropriety arises where the effect of the
arrangement is to make the estate or heir a member
of the partnership along with the surviving partners,
or where the estate or heir is to receive a
percentage of the fees that may be paid from future
business of the deceased lawyer’s clients.
The third, strictly speaking, is not a division of legal
fees but a pension representing deferred wages for
the employees’ past services.
The statutory rule that an attorney shall be entitled to
have and recover from his client a reasonable
compensation for his services necessarily imports
the existence of an attorney-client relationship as a
condition for the recovery of attorney's fees, and
such relationship cannot exist unless the client's
representative is a lawyer (Five J Taxi v. NLRC,
G.R. No. 111474, August 22, 1994).
CHAPTER III: THE LAWYER
AND THE COURT
CANON 10: A LAWYER OWES CANDOR,
FAIRNESS AND GOOD FAITH TO THE COURT.
A lawyer’s conduct before the court should be
characterized by candor and fairness. The
administration of justice would gravely suffer if
lawyers do not act with complete candor and
honesty before the courts (Serana v.
Sandiganbayan, G.R. No. 162059, January 22,
2008).
Reason: The burden cast on the judiciary would be
intolerable if it could not take at face value what is
asserted by counsel (Munoz v. People, G.R. No. L-
33672, September 28, 1973).
Candor requires that a lawyer act with the highest
standards of truthfulness, fair play, and nobility in the
conduct of litigation and in his relations with his
client, the opposing party and his counsel, and the
14
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court before which he pleads his client’s cause
(AGPALO, Ethics, supra at 144).
Obligations Related to Candor (SVDR)
1. Not to Suppress material and vital facts which
bear on the merit or lack of merit of the complaint
or petition;
2. To Volunteer to the court any development of the
case which has rendered the issue raised moot
and academic;
3. To Disclose to court any decision adverse to his
position of which opposing counsel is apparently
ignorant and which court should consider in
deciding a case; and
4. Not to Represent himself as a lawyer for a client,
appear in court and present pleadings in the
latter’s behalf, only to claim later that he was not
authorized to do so (AGPALO, Ethics, supra at
144-145).
Rule 10.01 - A lawyer shall not do any falsehood,
nor consent to the doing of any in court; nor
shall he mislead, or allow the Court to be misled
by any artifice.
Lawyer as a Disciple of Truth
As an officer of the court, his high vocation is to
correctly inform the court upon the law and the facts
of the case and to aid it in doing justice and arriving
at correct conclusion. The courts, on the other hand,
are entitled to expect only complete honesty from
lawyers appearing and pleading before them. While
a lawyer has the solemn duty to defend his client’s
cause, his conduct must never be at the expense of
truth (Young v. Batuegas, A.C. 5379, May 9, 2003).
A lawyer should not conceal the truth from the court,
nor mislead the court in any manner, no matter how
demanding his duties to his clients may be. His
duties to his clients should yield to his duty to deal
candidly with the court (AGPALO, Ethics, supra at
145-146).
Any person who shall knowingly offer in evidence a
false witness or testimony in any judicial or official
proceeding, shall be punished as guilty of false
testimony and shall suffer the respective penalties
provided in this section (REVISED PENAL CODE,
Art. 184).
Some Cases of Falsehoods by Lawyers which
Merited Discipline
1. Falsely stating in a deed of sale that property is
free from all liens and encumbrances when it is
not so (Sevilla v. Zoleta, A.C. No. 31, March 28,
1955);
 `
2. Making it appear that a person, long dead,
executed a deed of sale in his favor (Monterey v.
Arayata, Per. Rec. Nos. 3527, 3408. August 23,
1935);
3. Encashing a check payable to a deceased cousin
by signing the latter’s name on the check (In re:
Samaniego, A.C. No. 74, Novenber 20, 1951);
4. Falsifying a power of attorney and used it in
collecting the money due to the principal and
appropriating the money for his own benefit (In
Re: Rusina, A.C. No. 27, May 29, 1959);
5. Alleging in one pleading that his clients were
merely lessees of the property involved, and
alleged in a later pleading that the same clients
were the owners of the same property (Chavez v.
Viola, A.C. No. 2152, 19 April 1991);
6. Uttering falsehood in a Motion to Dismiss (Martin
v. Moreno, A.C. NO. 1432, May 21, 1984);
7. Denying having received the notice to file brief
which is belied by the return card (Ragasajo v.
IAC, G.R. No. L-69129, August 31, 1987);
8. Presenting falsified documents in court which he
knows to be false (Bautista v. Gonzales, A.M.
No. 1625, February 12, 1990) or introducing false
evidence (Berrenguer v. Carranza, A.C. No. 716,
January 30, 1969);
9. Filing false charges or groundless suits (Retuya
v. Gorduiz, Adm. Case No. 1388, March 28,
1980);
10. Manufacturing, flaunting and using a spurious CA
resolution before the RTC (Florido v. Florido,
A.C. No. 5624, January 20, 2004);
11. Using in pleadings the IBP number of another
lawyer (Bongolota v. Castillo, CBD No. 176,
January 1, 1995); and
12. Use of fiction residence certificate by a notary
public (Roces v. Aportadera, A.C. No. 2936,
March 3, 1995).
Rule 10.02 - A lawyer shall not knowingly
misquote or misrepresent the contents of a
paper, the language or the argument of opposing
counsel, or the text of a decision or authority, or
knowingly cite as law a provision already
rendered inoperative by repeal or amendment, or
assert as a fact that which has not been proved.
Reason: If not faithfully and exactly quoted, the
decisions and rulings of the court may lose their
proper and correct meaning, to the detriment of
other courts, lawyers and the public who may
thereby be misled (AGPALO, Ethics, supra at 147).
To knowingly misquote or misrepresent in any of
these matters is not only unprofessional but
contemptuous as well (Id.).
15
A mere typographical error in the citation of an
authority is not contemptuous (Del Rosario v.
Chingcuangco, G.R. No. L-25503, December 17,
1966).
The respondents deliberately made the quote from
the SCRA syllabus appear as the words of the
Supreme Court. The Court admonish them for what
is at the least patent carelessness, if not an outright
attempt to mislead the parties and the courts taking
cognizance to insubordination (Allied Banking
Corporation v. CA and Galanida, G.R. No. 144412,
November 18, 2003).
Proper Quotation of Court Decision
Court decisions must be reproduced, copied or
quoted word-for-word and punctuation mark-for-
punctuation mark (FUNA, Ethics, supra at 145).
Rule 10.03 - A lawyer shall observe the rules of
procedure and shall not misuse them to defeat
the ends of justice.
Reason: Procedures are instruments in the speedy
and efficient administration of justice. They should
be used to achieve such end and not to derail it.
It must be noted however that the rules of procedure
are not to be applied in a very rigid, technical sense;
rules or procedure are used only to help secure
substantial justice. If a technical and rigid
enforcement of the rules is made, their aim would be
defeated (Id.).
Filing multiple actions constitutes an abuse of the
Court’s processes. Those who file multiple or
repetitive actions subject themselves to disciplinary
action for incompetence or willful violation of their
duties as attorneys to act with all good fidelity to the
courts, and to maintain only such actions that
appear to be just and consistent with truth and honor
(Olivares, et al. v. Villalon, Jr., A.C. No. 6323, April
13, 2007).
CANON 11: A LAWYER SHALL OBSERVE AND
MAINTAIN THE RESPECT DUE TO THE COURTS
AND TO JUDICIAL OFFICERS AND SHOULD
INSIST ON SIMILAR CONDUCT BY OTHERS.
Reason: Disrespect toward the court would
necessarily undermine the confidence of the people
in the honesty and integrity of the members of the
court, and consequently to lower or degrade the
administration of justice by the court.
All lawyers are expected to recognize the authority
of the Supreme Court and obey its lawful processes
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and orders. Despite errors which one may impute on
the orders of the Court, these must be respected,
especially by the bar or the lawyers who are
themselves officers of the courts (Yap-Paras v.
Paras, A.C. No. 4947, June 7, 2007).
Liberally imputing sinister and devious motives and
questioning the impartiality, integrity, and authority of
the members of the Court result in the obstruction
and perversion of the dispensation of justice
(Estrada v. Sandiganbayan, G.R. No.159486-88,
November 25, 2003).
Even as lawyers passionately and vigorously
propound their points of view, they are bound by
certain rules of conduct for the legal profession.  scandalous, offensive or menacing language or
This Court is certainly not claiming that it should be
shielded from criticism. All the Court demands are
the same respect and courtesy that one lawyer owes
to another under established ethical standards.  All
lawyers, whether they are judges, court employees,
professors or private practitioners, are officers of the
Court and have voluntarily taken an oath, as an
indispensable qualification for admission to the Bar,
to conduct themselves with good fidelity towards the
courts.  There is no exemption from this sworn duty
for law professors, regardless of their status in the
academic community or the law school to which they
belong.  (Re: Letter of the UP Law Faculty entitled
“Restoring Integrity: A statement by the Faculty of
the University of the Philippines College of Law on
the allegations of plagiarism and misrepresentation
in the Supreme Court,” A.M. No. 10-10-4-SC, March
8, 2011).
It is the attorney’s duty to defend a judge from
unfounded criticism or groundless personal attack.
This requires of him not only to refrain from
subjecting the judge to wild and groundless
accusation but also to discourage other people from
so doing and come to his defense when he is
subjected (AGPALO, Ethics, supra at 153).
Rule 11.01 - A lawyer shall appear in court
properly attired.
Reason: To maintain the dignity and responsibility
of the legal profession
Generally: Contemporary business suit (FUNA,
Ethics, supra at 170).
Male: Either Barong Tagalog or suit with tie
Female: Appropriate business attire
In addition to the clothes, the lawyer must be clean,
neat and well-groomed (Id.)
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Rule 11.02 - A lawyer shall punctually appear at
court hearings.
Reason: Punctuality is demanded by the respect
which a lawyer owes to the court, the opposing
counsel and to all the parties to the case (Id.).
Inexcusable absence from, or repeated tardiness in,
attending a pre-trial or hearing may not only subject
the lawyer to disciplinary action but may also
prejudice his client who may not be non-suited,
declared in default or adjudged liable ex parte, as
the case may be (AGPALO, Ethics, supra at 153).
Rule 11.03 - A lawyer shall abstain from
behavior before the Courts.
The lawyer’s duty to render respectful subordination
to the courts is essential to the orderly administration
of justice. Hence, in the assertion of the client’s
rights, lawyers – even those gifted with superior
intellect, are enjoined to rein up their tempers
(Zaldivar v. Gonzales, G.R. Nos. L-79690-707,
October 7, 1988).
(See discussion under 8.01)
Rule 11.04 - A lawyer shall not attribute to a
judge motives not supported by the record or
have no materiality to the case.
This Rule Does Not Preclude A Lawyer From
Criticizing Judicial Conduct, PROVIDED The
Criticism Is:
1.Supported by the record; or
2.Material to the case (AGPALO, Ethics, supra at
157).
Counsels must however be courageous enough to
point out errors, arbitrariness, and injustices of
courts and judges (Id.).
Rule 11.05 - A lawyer shall submit grievances
against a Judge to the proper authorities only.
Proper Authority: The Supreme Court shall have
administrative supervision over all courts and
personnel thereof (CONST. Art. VIII, Sec. 5[5]).
Right and Duty of a Lawyer to Criticize Courts 
1. The fact that a person is a lawyer does not
deprive him of the right, enjoyed by every citizen,
to comment on and criticize the actuations of a
judge;
2. The court, in a pending litigation, must be
shielded from embarrassment or influence in its
`
all-important duty of deciding the case. Once
litigation is concluded, the judge who decided it is
subject to the same criticism as any other public
official because his ruling becomes public
property and is thrown open to public
consumption;
3. It is the cardinal condition of all such criticism that
it shall be bona fide, and shall not spill over the
walls of decency and propriety (Zaldivar v.
Gonzales, G.R. Nos. L-79690-707, October 7,
1988); and
4. The duty of the bar to support the judge against
unjust criticism and clamor does not, however,
preclude a lawyer from filing administrative
complaints against erring judges or from acting
as counsel for clients who have legitimate
grievances against them. But the lawyer should
file charges against the judge before the proper
authorities only and only after proper
circumspection and without the use of
disrespectful language and offensive
personalities so as not to unduly burden the court
in the discharge of its functions (Urbina v.
Maceren, A.C. No. 288-J, June 19, 1974).
A lawyer may not file an administrative complaint
against a judge, which arises from his judicial acts,
until the lawyer shall have exhausted judicial
remedies which result in a finding that the judge has
gravely erred. If the lawyer does so without
exhausting such judicial remedies or awaiting the
result thereof, he may be administratively held to
account therefore (Flores v. Abesamis, A.M. No.
SC-96-1, July 10, 1997).
Lawyer’s Freedom of Expression
As to the question on whether lawyers who are also
law professors can invoke academic freedom as a
defense in an administrative proceeding for
intemperate statements tending to pressure the
Court or influence the outcome of a case or
degrade the courts.
The same is answered through the application by
analogy of the Court’s past treatment of the “free
speech” defense in other bar discipline cases.
Academic freedom cannot be successfully invoked
by respondents.  The implicit ruling in jurisprudence
is that the constitutional right to freedom of
expression of members of the Bar may be
circumscribed by their ethical duties as lawyers to
give due respect to the courts and to uphold the
public’s faith in the legal profession and the justice
system.  The reason that freedom of expression
may be so delimited in the case of lawyers applies
with greater force to the academic freedom of law
professors.  It is not contested that respondent
17
professors are, by law and jurisprudence,
guaranteed academic freedom and indisputably,
they are free to determine what they will teach their
students and how they will teach. But it must be
pointed out that there is nothing in the Show Cause
Resolution that dictates upon respondents the
subject matter they can teach and the manner of
their instruction.  Moreover, it is not inconsistent
with the principle of academic freedom for the Court
to subject lawyers who teach law to disciplinary
action for contumacious conduct and speech,
coupled with undue intervention in favor of a party
in a pending case, without observing proper
procedure, even if purportedly done in their capacity
as teachers  (Re: Letter of the UP Law Faculty
entitled “Restoring Integrity: A statement by the
Faculty of the University of the Philippines College
of Law on the allegations of plagiarism and
misrepresentation in the Supreme Court,” A.M. No.
10-10-4-SC, March 8, 2011).
CANON 12: A LAWYER SHALL EXERT EVERY
EFFORT AND CONSIDER IT HIS DUTY TO
ASSIST IN THE SPEEDY AND EFFICIENT
ADMINISTRATION OF JUSTICE.
Constitutional Basis: All persons shall have the
right to a speedy disposition of their cases before all
judicial, quasi-judicial, or administrative bodies
(CONST., Art. III, Sec. 16).
The filing of another action concerning the same
subject matter, in violation of the doctrine of res
judicata, runs contrary to this Canon (Lim v.
Montano, A.C. No. 5653, February 27, 2006).
The speedy and efficient administration of justice is
however, the duty not only of the lawyer but also the
judge as well (FUNA, supra at 182.)
Rule 12.01 - A lawyer shall not appear for trial
unless he has adequately prepared himself on
the law and the facts of his case, the evidence he
will adduce and the order of its preference. He
should also be ready with the original
documents for comparison with the copies.
A lawyer is not adequately prepared unless he has a
mastery of the facts of his case, the law and
jurisprudence applicable thereto and upon which he
can appropriately anchor his theory or stance
(PINEDA, Legal, supra at 185).
A newly hired counsel who appears in a case in the
midstream is presumed and obliged to acquaint
himself with all the antecedent processes and
proceedings that have transpired in the record prior
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to his takeover (Villasis v. CA, G.R. No. L-34369.
September 30, 1974).
Like courts itself, a lawyer is an instrument to
advance the speedy, efficient, impartial, correct and
inexpensive adjudication of cases and the prompt
satisfaction of final judgment. He should likewise
avoid any unethical or improper practices that
impede, obstruct or prevent the realization of these
objectives (AGPALO, Ethics, supra at 159).
Some Acts Which Amount to Obstruction in the
Administration of Justice
1. Inadequate preparation;
2. Instructing complaining witness in a criminal
action not to appear at the schedule hearing so
that the case against the client would be
dismissed;
3. Asking a client to plead guilty to crime which the
lawyer knows his client did not commit;
4. Advising a client who is detained for crime to
escape from prison;
5. Employing dilatory tactics to frustrate satisfaction
of clearly valid claims;
6. Prosecuting clearly frivolous cases or appeals to
drain the resources of the other party and compel
him to submit out of exhaustion;
7. Filing multiple petitions or complaints for a cause
that has been previously rejected in the false
expectation of getting favorable action; and
8. Other acts of this similar nature (FUNA, Ethics,
supra at 183-184).
Rule 12.02 - A lawyer shall not file multiple
actions arising from the same cause.
Forum Shopping
There is forum shopping when as a result of an
adverse opinion in one forum, a party seeks a
favorable opinion in another or when he institutes
two or more actions or proceedings grounded on the
same cause, on the gamble that one or other court
would make a favorable disposition (PINEDA, Legal,
supra at 188).
The most important factor in determining the
existence of forum shopping is the vexation caused
the courts and parties by a party who asks different
courts to rule on the same or related causes or grant
the same or substantially the same reliefs (Benguet
Electric Cooperatve, Inc. v. Flores, A.C. No. 4058,
March 12, 1998).
Penalties for Violation of the Rule against Forum
Shopping
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1. Failure to comply with the requirements shall not
be curable by mere amendment of the complaint
or other initiatory pleading but shall be a cause
for dismissal of the case without prejudice, unless
otherwise provided, upon motion and after
hearing;
2. The submission of a false certification or non-
compliance with any of the undertakings therein
shall constitute indirect contempt of court, without
prejudice to the corresponding administrative and
criminal actions; and
3. If the acts of the party or his counsel clearly
constitute willful and deliberate forum shopping,
the same shall be ground for summary dismissal
with prejudice and shall constitute direct
contempt, as well as a cause for administrative
sanctions (RULES OF COURT, Rule 7, Sec. 5).
Note: The mere filing of several cases based on the
same incident does not necessarily constitute forum
shopping. The question is whether the several
actions filed involve the same transactions, essential
facts and circumstances. If they involve essentially
different facts, circumstances and causes of action,
there is no forum shopping (Paredes v.
Sandiganbayan, G.R. No. 108251, January 31,
1996).
General Rule: A certification against forum
shopping must be signed by the client and not by the
counsel. Otherwise, it is equivalent to non-
compliance with the Rules of Court and is defective
(Far Eastern Shipping Co. v. CA, G.R. No. 130068,
October 1, 1998).
Exception: When the counsel attests in the
certification that he has personal knowledge of the
facts stated and gives justifiable reasons why the
party himself cannot sign the same (Ortiz v. CA,
G.R. No. 127393, December 4, 1998).
Rule 12.03 - A lawyer shall not, after obtaining
extensions of time to file pleadings, memoranda
or briefs, let the period lapse without submitting
the same or offering an explanation for his
failure to do so.
The court frowns on lawyers’ practice of repeatedly
seeking extensions to file pleadings and thereafter
simply letting the period lapse without submitting any
pleading or even any explanation of manifestation
for their failure. The same rule applies more
forcefully to motion for continuance.
POSTPONEMENT is NOT a matter of right but a
sound judicial discretion (Edrial v. Quilat-Quilat,
G.R. No. 133625, September 6, 2000).
`
Rule 12.04 - A lawyer shall not unduly delay a
case, impede the execution of a judgment or
misuse Court processes.
Once a judgment becomes final and executory, the
prevailing party should not be denied the fruits of his
victory by some subterfuge devised of the losing
party. Unjustified delay in the enforcement of a
judgment sets at naught the role of courts in
disposing justiciable controversies with finality
(Aguilar v. Manila Banking Corporation, G.R. No.
157911, September 19, 2006).
Lawyers should not resort to nor abet the resort of
their clients, to a series of actions and petitions for
the purpose of thwarting the execution of a judgment
that has long become final and executory (Perez v.
Lantin, G.R. No. L-22320, July 29, 1968).
If a lawyer is honestly convinced of the futility of an
appeal in a civil suit he should not hesitate to inform
his disappointed client that most likely the verdict
would not be altered (AGPALO, Ethics, supra at
172).
As part of the lawyer’s duty to assist in the early
termination of the case, he should inform the court:
1. Within thirty days, of the death of his client in a
pending case (Heirs of Elias Lorilla v. CA, G.R.
No. 118655, April 12, 2000); and
2. Of any change of his address (City Sheriff Iligan
City v. Fortunato, G.R. No. 80390, March 27,
1998).
Rule 12.05 - A lawyer shall refrain from talking to
his witness during a break or recess in the trial,
while the witness is still under examination.
Purpose: To prevent the suspicion that he is
coaching the witness on what to say during the
resumption of the examination. Moreover, this rule is
also designed to uphold and maintain fair play with
the other party and to prevent the examining lawyer
from being tempted to coach his own witness to suit
his purpose.
Rule 12.06 - A lawyer shall not knowingly assist
a witness to misrepresent himself or to
impersonate another.
The witness who commits misrepresentation is
criminally liable for False Testimony either under Art.
181, 182 or 183 of the Revised Penal Code, as the
case may be. The lawyer who induces a witness to
commit false testimony is equally guilty as the
witness.
19
The lawyer who presented a witness knowing him to
be a false witness is criminally liable for Offering
False Testimony in Evidence under Art. 184.
The lawyer who is guilty of the above is both
criminally and administratively liable.
Subornation of Perjury
It is committed by a person who knowingly and
willfully procures another to swear falsely and the
witness suborned does testify under circumstances
rendering him guilty of perjury (U.S. v. Ballena, G.R.
No. L-6294, February 10, 1911).
Rule 12.07 - A lawyer shall not abuse, browbeat
or harass a witness nor needlessly
inconvenience him.
It was highly inconsiderate for the prosecutor and
the defense counsel to trade quips at the precise
time victim was reliving her harrowing experience.
Courts are looked up to by the people with high
respect and are regarded as places where litigants
are heard, rights and conflicts are settled and justice
solemnly dispensed. Levity has no place in the
courtroom during the examination of the victim of
rape, and particularly at her expense (People v.
Nuguid, G.R. No. 148991, January 21, 2004).
Rights and Obligations of a Witness under the
Rules of Court
A witness must answer questions, although his
answer may tend to establish a claim against him.
However, it is the right of a witness:
1. To be protected from irrelevant, improper, or
insulting questions, and from harsh or insulting
demeanor;
2. Not to be detained longer than the interests of
justice require;
3. Not to be examined except only as to matters
pertinent to the issue;
4. Not to give an answer which will tend to subject
him to a penalty for an offense unless otherwise
provided by law; or
5. Not to give an answer which will tend to degrade
his reputation, unless it to be the very fact at
issue or to a fact from which the fact in issue
would be presumed. But a witness must answer
to the fact of his previous final conviction for an
offense (RULES OF COURT, Rule 132, Sec. 3).
Rule 12.08 - A lawyer shall avoid testifying in
behalf of his client, except:
1.On formal matters, such as the mailing,
authentication or custody of an instrument,
and the like; or
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2.On substantial matters, in cases where his
testimony is essential to the ends of justice, in
which event he must, during his testimony,
entrust the trial of the case to another counsel.
Reason: There is a difference between the function
of a witness and that of an advocate. A witness is to
tell the facts as he recalls them in answer to
questions while an advocate is a partisan. The
lawyer will find it hard to dissociate his relation to his
client as an attorney and his relation to the party as
a witness (Jacobs v. Weissinger, 211 Mich. 47, 178
N.W. 65, 1920).
The question is one of propriety than competency.
While the law does not disqualify a lawyer from
testifying, the practice is violative of the rule on
professional conduct (Philippine National Bank v. Uy
Teng Piao, G.R. No. 35252, October 21, 1932).
Lawyer as Witness
A lawyer shall avoid testifying in behalf of his client.
The function of a witness is to tell the facts as he
recalls them in answer to questions. The function of
an advocate is that of a partisan. It is difficult to
distinguish between the zeal of an advocate and the
fairness and impartiality of a disinterested witness.
Although the law does not forbid an attorney to be a
witness and at the same time an attorney in a cause,
the courts prefer that counsel should not testify as a
witness unless it is necessary, and that they should
withdraw from the active management of the case
(Philippine National Bank v. Uy Teng Piao, G.R No.
35252, October 21, 1932).
Instances When a Lawyer MAY NOT Testify as a
Witness in a Case Which He Is Handling For a
Client
1. When such would adversely affect any lawful
interest of the client with respect to which
confidence has been reposed on him;
2. Having accepted a retainer, he cannot be a
witness against his client;
3. He cannot serve conflicting interests;
4. When he is to violate the confidence of his client;
and
5. When as an attorney, he is to testify on the theory
of the case.
Instances when a lawyer MAY testify as a
witness in a case which he is handling for a
client
1. On formal matters, such as the mailing,
authentication or custody of an instrument and
the like;
2. Acting as an expert on his fee;
20
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3. Acting as an Arbitrator;
4. Deposition; and
5. On substantial matters in cases where his
testimony is essential to the ends of justice, in
which event he must, during his testimony,
entrust the trial of the case to another counsel.
CANON 13: A LAWYER SHALL RELY UPON THE
MERITS OF HIS CAUSE AND REFRAIN FROM
ANY IMPROPRIETY WHICH TENDS TO
INFLUENCE, OR GIVES THE APPEARANCE OF
INFLUENCING THE COURT.
Rule 13.01 - A lawyer shall not extend
extraordinary attention or hospitality to, nor seek
opportunity for cultivating familiarity with
Judges.
Reason: To protect the good name and reputation
of the judge and the lawyer.
Lawyers should not seek for opportunity to cultivate
familiarity with judges. A lawyer who resorts to such
practices of seeking familiarity with judges dishonors
his profession and a judge who consents to them is
unworthy of his high office.
It is improper for a litigant or counsel to see a judge
in chambers and talk to him about a matter related
to the case pending in the court of said judge
(Austria v. Masaquel, G.R. No. L-22536, August 31,
1967).
A lawyer should not communicate or argue privately
with the judge as to the merits of a pending case. He
should be rebuked and denounced for any device or
attempt to gain from a judge special personal
consideration or favor (RULES OF COURT, Canons
of Professional Ethics, Canon 3).
It is highly improper for a judge to meet privately with
an accused who has pending case before him
without the presence of the other party (Gallo v.
Cordero, A.M. No. MTJ-95-1035, June 21, 1995).
However, it is not incumbent on a lawyer to refuse
professional employment in a case because it may
be heard by a judge who is his relative, compadre or
former colleague. The responsibility is on the judge
not to sit in a case unless he is both free from bias
and from the appearance thereof (Bautista v.
Rebueno, G.R. No. L-46117, February 22, 1978).
A lawyer must rely on the merits of his case and
should avoid using influences and connection to win
his case. His cases must be won because they are
meritorious and not because of connections, clout,
`
dominance or influence (PINEDA, Legal, supra at
206).
Rule 13.02 - A lawyer shall not make public
statements in the media regarding a pending
case tending to arouse public opinion for or
against a party.
The subjudice rule governs what public
statements, whether orally or in published writings,
can be made about matters pending in legal
proceedings before the courts.
The rule applies where court proceedings are
ongoing, and through all stages of appeal until the
matter is completed. It is not limited to parties in a
case or their lawyers. It applies as well to the public
and public officials including legislators (FUNA,
Ethics, supra at 213).
Making public statements in the media regarding a
pending case which tends to arouse public opinion
for or against a party may also constitute indirect
contempt under Section 3 of Rule 71 of the Rules of
Court (Id.).
Newspaper publications by a lawyer as to pending
or anticipated litigation may interfere with a fair trial
in the courts and otherwise prejudice, the due
administration of justice. However, if the extreme of
a particular case justify a statement to the public, it
is unprofessional to make it anonymously (PINEDA,
Legal, supra at 210).
Test When Public Statements are Contemptuous
The character of the act done and its direct tendency
to prevent and obstruct the discharge of official duty
is the test to determine whether a newspaper
publication concerning a pending case is
contemptuous (Toledo, Newspaper Co. v. US, 407
US 1186).
In a concluded litigation, a lawyer enjoys a wider
latitude to comment on or criticize the decision of a
judge or his actuation. Thus, a newspaper
publication tending to impede, obstruct, embarrass
or influence the courts in administering justice in a
pending case constitutes criminal contempt, but the
rule is otherwise after the litigation is ended (In re:
Lozano and Quevedo, 54 Phil. 801, July 24, 1930).
The restriction does NOT prohibit issuance of
statements by public officials charged with the duty
of prosecuting or defending actions in court.
However, such statements should avoid any
statement of fact likely to create an adverse attitude
in the public mind respecting the alleged actions of
21
the defendants to the pending proceedings (A.B.A
Op. 199, January 26, 1940).
Rule 13.03 - A lawyer shall not brook or invite
interference by another branch or agency of the
government in the normal course of judicial
proceedings.
Reason: To preserve the independence of the
judges in the performance of their duties
The Supreme Court accordingly administered a
reprimand to respondent for gross ignorance of law
and of the Constitution in having asked the
President to set aside by decree the Court’s decision
which suspended him for two years from the practice
of law (De Bumanlag v. Bumanlag, A.M. No. 188,
November 29, 1976).
Note: The rule should be distinguished from Rule
11.05 which reads: “A lawyer shall submit
grievances against a Judge to the proper authorities
only”. The latter rule refers to complaints against
judges themselves which must be coursed to the
proper authorities only (PINEDA, Legal, supra at
214).
CHAPTER IV: THE LAWYER AND
THE CLIENT
Nature of Attorney-Client relationship
1. Strictly personal;
2. Highly confidential; and
3. Fiduciary
The preservation and protection of the relation will
encourage a client to entrust his legal problems to
an attorney, which is of paramount importance to the
administration of justice (Hilado v. David, G.R. No.
L-961, September 21, 1949).
General Rules Protecting Attorney-Client
Relationships
1. The attorney must exert his best efforts to protect
the interest of his client;
2. He must promptly account for any fund or
property entrusted by or received for, his client;
3. He cannot purchase his client’s property or
interest in litigation;
4. The privacy of communications shall at all times
be upheld; and
5. An attorney cannot represent a party whose
interest is adverse to that of his client even after
the termination of the relation.
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Retainer or Employment
The relation of attorney and client begins from the
time an attorney is retained. “Retainer” may refer to
the act of client by which he engages the services of
an attorney to render legal advice, or to defend or
prosecute his cause of action.
Creation of Relation: Forms of Employment as
Counsel to a Client
1. Oral – when the counsel is employed without a
written agreement, but the conditions and amount
of attorney’s fees are agreed upon.
2. Express – when the terms and conditions
including the amount of fees, are explicitly
stipulated in a written document which may be a
private or public document. Written contract of
attorney’s fees is the law between the lawyer and
the client.
3. Implied – when there is no agreement, whether
oral or written, but the client allowed the lawyer to
render legal services not intended to be
gratuitous without objection, and the client is
benefited by reason thereof.
Note:  While a written agreement for professional
services is the best evidence to show the relation,
formality is not an essential element in the
employment of an attorney. The absence of a written
contract will not preclude a finding that there is a
professional relationship. Documentary formalism is
not an essential element in the employment of an
attorney; the contract may be express or implied.
Advantages of a written contract between the
lawyer and the client:
1. It is conclusive as to the amount of
compensation; and
2. In case of unjustified dismissal of an attorney, he
shall be entitled to recover from the client full
compensation stipulated in the contract (RA 636).
CANON 14: A LAWYER SHALL NOT REFUSE HIS
SERVICES TO THE NEEDY.
Rule 14.01 – A lawyer shall not decline to
represent a person solely on account of the
latter’s race, sex, creed or status of life, or
because of his own opinion regarding the guilt
of said person.
Right to Decline Employment
General Rule: A lawyer is not obliged to act as legal
counsel for any person who may wish to become his
client. He has the right to decline employment.
Exceptions:  believes to be honestly debatable under the law.”
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1. A lawyer shall not refuse his services to the
needy (Canon 14);
2. He shall not decline to represent a person solely
on account of the latter’s race, sex, creed or
status of life or because of his own opinion
regarding the guilt of said person  (Rule 14.01);
3. Neither shall he decline, except for serious and
sufficient cause, an appointment as counsel de
oficio or amicus curiae or a request from the IBP
or any of its chapters for rendition of free legal aid
(Rule 14.02);
4. He shall not decline, except for serious and
sufficient cause like:
a. If he is not in a position to carry out the work
effectively or competently; and
b. If he labors under a conflict of interest
between him and the prospective client or
between a present client and the prospective
client (Rule 14.03).
Note: Rule 14.01 is applicable only to Criminal
Cases but not in Civil Case. Under Rule 138,
Section 20 (c), Rules of Court, the lawyer may act as
“Counsel or maintain such action or proceedings
only as appear to him to be just, and such defenses
only as he believes to be honestly debatable under
the law” (PINEDA, Legal, supra at 219).
Duty to Decline Employment
A lawyer should decline professional employment
regardless of how attractive the fee offered may be if
its acceptance will involve:
1. A violation of any of the rules of the legal
profession;
2. Nullification of a contract which he prepared;
3. Advocacy in any matter in which he had
intervened while in the government service;
4. Employment, the nature of which might easily be
used as a means of advertising his professional
services or his skill;
5. Employment with a collection agency, which
solicits business to collect claims; and
6. Any matter in which he knows or has reason to
believe that he or his partner will be an essential
witness for the prospective client.
Reasons
1. The attorney’s signature in every pleading
constitutes a certificate by him that there is good
cause to support it and that it is not interposed for
delay and willful violation of such rule shall
subject him to disciplinary action.
2. It is the attorney’s duty to “counsel or maintain
such actions or proceedings only as appear to
him to be just and only such defenses as he
`
3. A lawyer is not to encourage either the
commencement or the continuance of an action
or proceeding, or delay any man’s cause, for any
corrupt motive or interest.
4. A lawyer must decline to conduct a civil cause or
to make a defense when convinced that it is
intended merely to harass or injure the opposite
party or to work oppression or wrong.
Exception BUT With Limitation: A lawyer may
accept a losing civil case provided that, in so doing,
he must not engage in dilatory tactics and must
advise his client about the prospects and
advantages of settling the case through a
compromise.
If he were to take a bad civil case for the plaintiff, it
will only be to advise him not to file the action or to
settle it with the client.
If he were to accept the defense of a bad civil case
for the defendant, it will either be to exert his best
effort toward a compromise or to tell his client to
confess judgment.
Rule 14.02 - A lawyer shall not decline, except
for serious and sufficient cause, an appointment
as counsel de oficio or as amicus curiae, or a
request from the Integrated Bar of the
Philippines or any of its chapters for rendition of
free legal aid.
Appointment of Counsel de Oficio
The appointment rests upon the presiding judge.
However, as such right may be waived, if accused
wants to defend himself without a counsel, the
Judge may allow him to go to trial without a counsel
but he cannot later claim he was not accorded due
process for lack of counsel (PINEDA, Legal, supra
at 220).
As counsel de oficio, the lawyer is duty bound to
exert his best effort and professional ability in behalf
of the person assigned to his care. Corollary to this
duty, the presiding judge must give the counsel de
oficio ample opportunity to examine not only the
records of the case but also to confer with the
accused lengthily properly and intelligently and fully
represent and defend the interest of the accused
(Id.).
Rule 14.03 - A lawyer may not refuse to accept
representation of an indigent client if:
a.He is not in a position to carry out the work
effectively or competently;
23
b.He labors under a conflict of interest between
him and the prospective client or between a
present client and the prospective client.
Any of the following may constitute a sufficient
cause under Rule 14.03:
1. It is believed that it is a sufficient cause where the
lawyer cannot handle the matter competently; or
2. In case of conflict of interest (FUNA, Ethics,
supra at 226); or
3. Where the lawyer is to incur out-of-pocket
expenses for investigation costs, fees for
witnesses, unable to continue his private practice
(Brown v. Board of County Commissioners, 451
P.2d 708 Nev., 1969).
Rule 14.04 - A lawyer who accepts the cause of a
person unable to pay his professional fees shall
observe the same standard of conduct
governing his relations with paying clients.
Rule on Mandatory Legal Aid Service (B.M. No.
2012)
Pursuant to an en banc Resolution of the Supreme
Court, this Rule took effect on January 1, 2010,
provided its implementing regulations have been
published prior to the said date.
Purpose
To enhance the duty of lawyers to society as agents
of social change and to the courts as officers thereof
by helping improve access to justice by the less
privileged members of society and expedite the
resolution of cases involving them.
Definition of Terms
1. Practicing lawyers are members of the
Philippine Bar who appear for and in behalf of
parties in courts of law and quasi-judicial
agencies. The term "practicing lawyers" shall
EXCLUDE:
a. Government employees and incumbent
elective officials not allowed by law to practice;
b. Lawyers who by law are not allowed to appear
in court;
c. Supervising lawyers of students enrolled in
law student practice in duly accredited legal
clinics of law schools and lawyers of
NGOs)and peoples organizations (POs) who
by the nature of their work already render free
legal aid to indigent and pauper litigants; and
d. Lawyers not covered under subparagraphs (i)
to (ii) including those who are employed in the
private sector but do not appear for and in
behalf of parties in courts of law and quasi-
judicial agencies.
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2. Indigent and pauper litigants
a. Indigent litigants are those whose gross
income and that of their immediate family do
not exceed an amount double the monthly
minimum wage of an employee and who do
not own real property with a fair market value
as stated in the current tax declaration of more
than three hundred thousand pesos (RULES
OF COURT, Rule 141, Sec. 19).
b. An indigent party may be authorized to
litigate his action, claim or defense as an
indigent if the court, upon an ex parte
application and hearing, is satisfied that the
party is one who has no money or property
sufficient and available for food, shelter and
basic necessities for himself and his family
(RULES OF COURT, Rule 3, Sec. 21).
3. Legal aid cases are those actions, disputes, and
controversies that are criminal, civil and
administrative in nature in whatever stage
wherein indigent and pauper litigants need legal
representation.
Requirements
1. Every practicing lawyer is required to render a
minimum of sixty (60) hours of free legal aid
services to indigent litigants in a year. Said 60
hours shall be spread within a period of twelve
(12) months, with a minimum of five (5) hours of
free legal aid services each month. However,
where it is necessary for the practicing lawyer to
render legal aid service for more than five (5)
hours in one (1) month, the excess hours may be
credited to the said lawyer for the succeeding
periods.
2. The practicing lawyer shall report compliance
with the requirement within ten (10) days of the
last month of each quarter of the year.
3. A practicing lawyer shall be required to secure
and obtain a certificate from the Clerk of Court
attesting to the number of hours spent rendering
free legal aid services in a case.
4. Said compliance report shall be submitted to the
Legal Aid Chairperson of the IBP Chapter within
the court’s jurisdiction.
5. The IBP Chapter shall, after verification, issue a
compliance certificate to the concerned lawyer.
The IBP Chapter shall also submit the
compliance reports to the IBPs National
Committee on Legal Aid (NCLA) for recording
and documentation.
6. Practicing lawyers shall indicate in all pleadings
filed before the courts or quasi-judicial bodies the
number and date of issue of their certificate of
compliance for the immediately preceding
compliance period.
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Penalties
1. At the end of every calendar year, any practicing
lawyer who fails to meet the minimum prescribed
60 hours of legal aid service each year shall be
required by the IBP, through the NCLA, to explain
why he was unable to render the minimum
prescribed number of hours.
2. If no explanation has been given or if the NCLA
finds the explanation unsatisfactory, the NCLA
shall make a report and recommendation to the
IBP Board of Governors that the erring lawyer be
declared a member of the IBP who is not in good
standing.
3. Upon approval of the NCLAs recommendation,
the IBP Board of Governors shall declare the
erring lawyer as a member not in good standing.
4. The notice to the lawyer shall include a directive
to pay four thousand pesos P4,000 as penalty
which shall accrue to the special fund for the
legal aid program of the IBP.
5. The "not in good standing" declaration shall be
effective for a period of three (3) months from the
receipt of the erring lawyer of the notice from the
IBP Board of Governors.
During the said period, the lawyer cannot appear
in court or any quasi-judicial body as counsel.
6. Provided, however, that the "not in good
standing" status shall subsist even after the lapse
of the three-month period until and unless the
penalty shall have been paid.
Note: Any lawyer who fails to comply with his duties
under this Rule for at least three (3) consecutive
years shall be the subject of disciplinary proceedings
to be instituted motu proprio by the Committee on
Bar Discipline.
Free Legal Assistance Act of 2010 (R.A. No.
9999)
Purposes
1. To guarantee free legal assistance to the poor;
and
2. To ensure that every person who cannot afford
the services of a counsel is provided with a
competent and independent counsel preferably of
his/her own choice.
Legal Services to be Performed by a Lawyer
Any activity which requires the application of law,
legal procedure, knowledge, training and
experiences which shall include, among others, legal
advice and counsel, and the preparation of
instruments and contracts, including appearance
before the administrative and quasi-judicial offices,
bodies and tribunals handling cases in court, and
`
other similar services as may be defined by the
Supreme Court.
Requirements for Availment
To avail of the benefits and services as envisioned
in this Act, the following requirements should be
met:
1. A lawyer or professional partnership shall secure
a certification from the Public Attorney's Office
(PAO), the Department of Justice (DOJ) or
accredited association of the Supreme Court
indicating that the said legal services to be
provided are within the services defined by the
Supreme Court, and that the agencies cannot
provide the legal services to be provided by the
private counsel.
2. To determine the number of hours actually
provided by the lawyer and/or professional firm in
the provision of legal services, the association
and/or organization duly accredited by the
Supreme Court shall issue the necessary
certification that said legal services were actually
undertaken.
3. The certification issued by, among others, the
PAO, the DOJ and other accredited association
by the Supreme Court shall be submitted to the
BIR for purposes of availing the tax deductions
and to the DOJ for purposes of monitoring.
Incentives to Lawyers
A lawyer or professional partnerships rendering
actual free legal services, as defined by the
Supreme Court, shall be entitled to an allowable
deduction from the gross income, the amount that
could have been collected for the actual free legal
services rendered or up to ten percent (10%) of the
gross income derived from the actual performance
of the legal profession, whichever is lower: Provided,
That the actual free legal services herein
contemplated shall be exclusive of the minimum
sixty (60)-hour mandatory legal aid services
rendered to indigent litigants as required under the
Rule on Mandatory Legal Aid Services for Practicing
Lawyers, under BAR Matter No. 2012, issued by the
Supreme Court.
CANON 15: A LAWYER SHALL OBSERVE
CANDOR, FAIRNESS AND LOYALTY IN ALL HIS
DEALINGS AND TRANSACTIONS WITH HIS
CLIENTS.
It demands of an attorney an undivided allegiance, a
conspicuous and high degree of good faith,
disinterestedness, candor, fairness, loyalty, fidelity
and absolute integrity in all his dealings and
transactions with his clients and an utter
renunciation of every personal advantage conflicting
25
in any way, directly or indirectly, with the interest of
his client (Oparel, Sr. v. Abara, A.C. No. 959, July
30, 1971).
If they find that their client’s cause is defenseless,
then it is their bounden duty to advise the latter to
acquiesce and submit, rather than to traverse the
incontrovertible (Rollon v. Naraval, A.C. No. 6424,
March 4, 2005).
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.
Kinds of Conflicts of Interests:
1.Concurrent Representation- Generally occurs
when a lawyer represents clients whose objectives
are adverse to each other, no matter how slight or
remote such adverse interests maybe.
2.Client Sequential Representation- Generally
occurs when a lawyer firm takes a present client
who has an interest adverse to the interest of a
former client of the same law firm (PINEDA, Legal,
supra at 234).
A potential conflict of interest is a matter which could
be determined at the initial conferment with a
prospective client. A lawyer can readily determine
this by considering the facts given to him and by
asking the necessary questions regarding the facts
and the personalities involved in the case (Id.).
In case of conflict of interest of a lawyer and his
client, the lawyer shall give preference to client’s
interests (Id.).
Rule 15.02 – A lawyer shall be bound by the rule
on privileged communication in respect of
matters disclosed to him by a prospective client.
As a safeguard against the disclosure of the clients’
confidences and secrets, the Rules of Court
mandates that an attorney cannot, without the
consent of his client, be examined as to any
communication made by the client to him or advice
given thereon in the course of professional
employment (PINEDA, Legal, supra at 235).
Purpose of the Rule:
1. To encourage a client to make a full disclosure of
the facts of the case to his counsel without fear;
and
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2. To allow the lawyer freedom to obtain full
information from his client (Report of IBP
Committee, p. 81).
In Regala v. Sandiganbayan, it was held that the
client’s 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. The utmost
zeal given by Courts to the protection of the lawyer-
client confidentiality privilege and lawyer’s loyalty to
his client is evident in the duration of the protection,
which exists not only during the relationship, but
extends even after the termination of the relationship
(G.R. No. 105938, September 20, 1996).
Requisites that Establish the Existence of the
Attorney-Client Privilege Communication
1. Where legal advice of any kind is sought;
2. From a professional legal adviser in his capacity
as such;
3. The communications relating to that purpose;
4. Made in confidence;
5. By the client;
6. Are at his instance permanently protected;
7. From disclosure by himself or by the legal
advisor; and
8. Except where the protection be waived (Hadjula
v. Madianda, A.C. No. 6711, July 3, 2007).
Requisites of the Attorney-Client Privilege (AIC)
1. There exists an Attorney and client relationship or
a kind of consultancy relationship with a
prospective client. That is, legal advice is what is
sought;
Note: This includes persons appointed as
counsel de oficio
2. The communication was made by the client to the
lawyer In the course of the lawyer’s professional
employment; and
3. The communication must be intended to be
Confidential (Uy Chico v. Union Life Association
Society, G. R. No. 9231, January 6, 1915).
Note: The mere relation of attorney and client
does not raise a presumption of confidentiality.
Parties Covered by the Privilege:
1. Client;
2. Lawyer himself or the client’s employee in the
absence of any waiver on the part of the client;
and
Attorney’s secretary, stenographer, or clerk who
acquired confidential communication in such
capacity and only when the client and attorney
jointly consent thereto (RULES OF COURT, Rule
130, Sec. 24[b]).
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Duration of the Privilege
The privilege continues to exist even after the
termination of the attorney-client relationship. It
outlasts the lawyer’s engagement. The privileged
character of the communication ceases only when
waived by the client himself or if after his death, by
the heir or legal representative (Baldwin v. CIR, 125
F. 2d 812, February 10, 1942).
Burden of Proof
The party who avers that the communication is
privileged has the burden of proof to establish the
existence of the privilege unless from the face of the
document itself, it clearly appears that it is
privileged. The mere allegation that the matter is
privileged is not sufficient (People v. Sleeper, G.R.
No. 22783, December 3, 1924).
Art. 209. Betrayal of Trust By an Attorney or
Solicitor. — Revelation of Secrets. — In addition
to the proper administrative action, there 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.
Note: Rule on Privileged Communication is
applicable to students allowed to appear in court for
indigent clients accepted by the legal clinic of the
law school where h is enrolled.
(See discussion under Canon 21)
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
Conflict of interest
Duty of a lawyer to his client in case there is
conflict of interest
The proscription against representation of conflicting
interest finds application where the conflicting
interests arise with respect to the same general
matter and is applicable however slight such
adverse interest may be; the fact that the conflict of
interests is remote or merely probable does not
make the prohibition inoperative (Pormento v.
Pontevedra, A.C. 5128, March 31, 2005).
Reason: To bar the dishonest practitioner from
fraudulent conduct and to prevent the honest
practitioner from putting himself in a position where
`
he may be required to choose between conflicting
duties
Exceptions to the Rule Against Representation
of Conflicting Interests
1. Where no conflict of interest exists;
2. Where clients knowingly consent to the dual
representation; and
3. Where no true attorney-client relationship is
attendant.
Tests to Determine Conflicting Interests
1. Conflicting Duties: Whether or not the attorney
may be required to contest for that which his duty
to another client requires him to oppose.
2. Invitation of Suspicion: Whether or not the
acceptance of a new relation invites suspicion
and/or actually lead to unfaithfulness or double-
dealing towards another client.
3. Use of prior knowledge obtained: Whether or
not the attorney may be called upon in his new
relation to use against his first client any
knowledge acquired in the previous employment?
Note: This pertains to those cases in which the
adverse party against whom the attorney appears
is his former client in a matter which is related,
directly or indirectly, to the present controversy.
Note: This rule covers not only cases in which
confidential communications have been confided,
but also those in which no confidence has been
bestowed or will be used.
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 arises after the lawyer-client
relationship has terminated (Lim-Santiago v.
Sagucio, A.C. No. 6705, March 31, 2006).
It is inconsequential that petitioner never questioned
the propriety of respondent’s continued
representation of defendant. The lack of opposition
does not mean tacit consent. As long as the lawyer
represents inconsistent interests of two or more
opposing clients, he is guilty of violating his oath
(San Jose Homeowners Association, Inc. v.
Romanillos, A.C. No. 5580, June 15, 2005).
Instances When a Lawyer May Have a Conflict of
Interest
1. As an employee of a corporation whose duty is to
attend to its legal affairs, he cannot join a labor
union of employees in that corporation;
27
2. As a lawyer who investigated an accident as
counsel for insurance, he cannot represent the
injured person;
3. As a receiver of a corporation, he cannot
represent the creditor;
4. As a representative of the obligor, he cannot
represent the obligee; and
5. As a lawyer representing a party in a compromise
agreement, he cannot, subsequently, be a lawyer
representing another client who seeks to nullify
the agreement.
Effects of Representing Adverse Interests
1. Disqualification as counsel of new client on
petition of former client;
2. When such is unknown to, and becomes
prejudicial to the interests of the new client, a
judgment against such may, on that ground, be
set aside;
3. A lawyer can be held administratively liable
through disciplinary action and may be held
criminally liable for betrayal of trust; and
4. The attorney’s right to fees may be defeated if
found to be related to such conflict and such was
objected to by the former client, or if there was a
concealment and prejudice by reason of the
attorney’s previous professional relationship with
the opposite party.
Effect of Termination of Relation
Termination of relation provides no justification for a
lawyer to represent an interest adverse to or in
conflict with that of the former client (San Jose v.
Cruz, 57 Phil. 79, February 1, 1933).
Reason: The client’s confidence once reposed
cannot be divested by the expiration of the
professional employment (Hilado v. David, G.R. No.
L-961, September 21, 1949).
Note: A lawyer is forbidden from representing a
subsequent client against a former client only when
the subject matter of the present controversy is
related, directly or indirectly, to the subject matter of
the previous litigation in which he appeared to the
former client (Nombrado v. Hernandez, A.C. No.
555, November 25, 1968).
The rule on likewise applies to law firms. Where a
lawyer is disqualified from appearing as counsel in a
case because of conflict of interests with the law firm
of which he is a member, as well as any member,
associate or assistant therein is similarly disqualified
or prohibited from so acting (Hilado v. David, G.R.
No. L-961, September 21, 1949).
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Rule 15.04 – A lawyer may, with the written
consent of all concerned, act as mediator,
conciliator or arbitrator in settling disputes.
Consent in writing is required to prevent future
controversy on the authority of the lawyer to act as
mediator or arbitrator. However, a lawyer who acts
as mediator, conciliator or arbitrator in settling a
dispute, cannot represent any of the parties to it
(Report of IBP Committee, p. 82).
The lawyer acts as intermediary under this rule
when the lawyer represents all parties. A key factor
in defining the relationship is whether the parties
share responsibility for the lawyer’s fee, but the
common representation may be inferred from other
circumstances (FUNA, Ethics, supra at 250).
Rule 15.05 – A lawyer, when advising his client,
shall give a candid and honest opinion on the
merits and probable results of the client’s case,
neither overstating nor understating the
prospects of the case.
This rule is an example of Candor in dealing with
clients (PINEDA, Legal, supra at 231).
As officers of the court, counsels are under
obligation to advise their clients against making
untenable and inconsistent claims. Lawyers are not
merely hired employees who must unquestionably
do the bidding of the client, however unreasonable
this may be when tested by their own expert
appreciation of the facts and applicable law and
jurisprudence. Counsel must counsel (Periquet v.
NLRC, G.R. No. 91298, June 22, 1990).
Rule 15.06 – A lawyer shall not state nor imply
that he is able to influence any public official,
tribunal or legislative body.
This rule is known as influence-peddling.
It is improper for a lawyer to show in any way that he
has connections and can influence any tribunal or
public official, judges, prosecutors, congressmen
and others, specially so if the purpose is to enhance
his legal standing and to entrench the confidence of
the client that his case or cases are assured of
victory.
Rule 15.07 – A lawyer shall impress upon his
client compliance with the laws and the
principles of fairness.
A lawyer who advises his client not to obey the order
of the courts is guilty of contempt and misconduct
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(Conge v. Deret, C.A.-G.R. No. 08848-CR., March
25, 1974).
Canon 15, Rule 15.07 also obliges lawyers to
impress upon their clients compliance with the laws
and the principle of fairness (Suzuki v. Tiamson,
A.C. No. 6542, September 30, 2005).
A lawyer is required to represent his client “within
the bounds of the law”. The Code enjoins a lawyer to
employ only fair and honest means to attain the
lawful objectives of his client and warns him not to
allow his client to dictate the procedure in handling
the case. In short, a lawyer is not a gun for hire
(Millare v. Montero, A.C. No. 3283, July 13, 1995).
Rule 15.08 – A lawyer who is engaged in another
profession or occupation concurrently with the
practice of law shall make clear to his client
whether he is acting as a lawyer or in another
capacity.
Reason: Certain ethical considerations governing
the client-lawyer relationship may be operative in
one case and not in the other (Report of the IBP
Committee, p. 84).
A lawyer is not barred from dealing with his client but
the business transaction must be characterized with
utmost honesty and good faith. Business
transactions between an attorney and client are
disfavored and discouraged by policy of law
because by virtue of a lawyer’s office, he is in an
easy position to take advantage of the credulity and
ignorance of his client. Thus, there is no
presumption of innocence or improbability of
wrongdoing in favor of lawyers (Nakpil v. Valdez,
A.C. No. 2040, March 4, 1998).
A party’s engagement of his counsel in another
capacity concurrent with the practice of law is not
prohibited, so long as the roles being assumed by
such counsel is made clear to the client. The only
reason for this clarification requirement is that
certain ethical considerations operative in one
profession may not be so in the other (NSBCI v.
PNB, G.R. No. 148753, July 30, 2004).
CANON 16: A LAWYER SHALL HOLD IN TRUST
ALL MONEYS AND PROPERTIES OF HIS CLIENT
THAT MAY COME INTO HIS PROFESSION.
Rule 16.01 - A lawyer shall account for all money
or property collected or received for or from the
client.
`
The failure to return the money gives rise to the
presumption that he misappropriated for his own use
to the prejudice of, and in violation of the trust
reposed in him by his client (AGPALO, Ethics, supra
at 253).
This duty of a lawyer is generally derived from the
law on agency, which imposes the duties of
separation, accounting, notification and delivery on
all agents possessing the principal’s property
(FUNA, Ethics, supra at 256).
Obligations of a Lawyer Under Rule 16.01 (ARD)
1. When a lawyer collects or receives money from
his client for a particular purpose, he should
promptly Account to the client how the money
was spent.
2. If he does not use the money for its intended
purpose, he must immediately Return it to the
client. His failure either to render an accounting
or to return the money, if the intended purpose of
the money does not materialize, constitutes a
blatant disregard of Rule 16.01 of the Code of
Professional Responsibility.  professional judgment (Comments of the IBP
3. A lawyer has the duty to Deliver his client’s funds
or properties as they fall due or upon demand.
His failure to return the client’s money upon
demand gives rise to the presumption that he has
misappropriated it for his own use to the
prejudice of and in violation of the trust reposed
in him by the client (Trenas v. People,  G.R. No.
195002, January 25, 2012).
Note: When an attorney unjustly retains in his hands
money of his client after it has been demanded, he
may be punished for contempt as an officer of the
court who has misbehaved in his official transaction;
but proceedings under this section shall not be a bar
to criminal prosecution (PINEDA, Legal, supra at
273).
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.
Reason: To prevent confusion and possible
misappropriation of funds and properties
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 on 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 the execution he has secured for
his client as provided for in the Rules of Court.
29
A lawyer is not entitled to unilaterally appropriate his
client’s money for himself by the mere fact alone that
the client owes him attorney’s fees (Rayos v.
Hernandez, G.R. No. 169079, February 12, 2007).
Rule 16.04 - A lawyer shall not borrow money
from his client unless the client's interests are
fully protected by the nature of the case or by
independent advice. 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.
Prohibitions Under Rule 16.04
1. Lawyer borrowing money from client
Reason: To prevent lawyer from taking
advantage of his influence over the client
Exceptions: The lawyer is allowed to borrow
money from his client provided the interest of the
client is fully protected by the nature of the case
or by independent advice.
2. Lawyer lending money to client
Reason: To assure the lawyer’s independent
Committee).
Exception: The lawyer may lend money to a
client, when it is necessary in the interest of
justice to advance necessary expense in a legal
matter he is handling for the client.
A lawyer who takes advantage of his client’s
financial plight to acquire the latter’s properties
for his own benefit is destructive of the
confidence of the public in the fidelity, honesty
and integrity of the legal profession (Hernandez,
Jr. v. Go, A.C.No. 1526, January 31, 2005).
Prohibition against Purchase of Property in
Litigation Under the Civil Code
Art. 1491: The following persons cannot acquire by
purchase, even at a public or judicial auction, either
in person or through the mediation of another:
xxx
(5) Justices, judges, prosecuting attorneys, clerks of
superior and inferior courts, and other officers and
employees connected with the administration of
justice, the property and rights in litigation or levied
upon an execution before the court within whose
jurisdiction or territory they exercise their respective
functions; this prohibition includes the act of
acquiring by assignment and shall apply to lawyers,
with respect to the property and rights which may be
the object of any litigation in which they may take
part by virtue of their profession.
Prohibition is absolute and permanent, and rests on
considerations of public policy and interest. There is
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no need to show fraud and no excuse will be heard.
Law does not trust human nature to resist temptation
likely to arise.
Elements of Prohibition
1. There is an attorney-client relationship;
2. The property is in litigation;
3. The attorney is the counsel of record in the case;
and
4. The attorney, by himself or through an agent,
purchases such property during the pendency of
said case.
Other Instances Where Prohibition is Applicable
1. Redemption, compromise and renunciation of the
subject in litigation (CIVIL CODE, Art. 1492); and
2. Lease of the subject in litigation (CIVIL CODE,
Art. 1646).
Instances where prohibition is INAPPLICABLE:
1. Where the property purchased by a lawyer was
not involved in litigation;
2. Where the sale took place before it became
involved in the suit;
3. Where the attorney at the time of the purchase
was not the counsel in the case;
4. Where the purchaser of the property in litigation
was a corporation even though the attorney was
an officer thereof;
5. Where the sale took place after the termination of
the litigation;
6. A lawyer may accept an assignment from his
client of a money judgment rendered in the
latter’s favor in a case in which he was not
counsel, in payment of his professional services
performed in another case; and
7. In a contract for attorney’s fees which is
contingent upon the outcome of the litigation.
A lawyer may borrow money from a client bank for
here, the client’s interests are fully protected by the
bank’s rules and regulations which have to be
complied with. A lawyer is allowed to borrow money
from his client provided the interests of the client are
fully protected by the nature of the case or by
independent advice (PINEDA, Legal, supra at 283).
CANON 17: A LAWYER OWES FIDELITY TO THE
CAUSE OF HIS CLIENT AND HE SHALL BE
MINDFUL OF THE TRUST AND CONFIDENCE
REPOSED IN HIM.
Fidelity to the cause of client is the essence of legal
profession. Without fidelity the profession will not
survive, for in the long run, no one will engage any
lawyer anymore (PINEDA, Legal, supra at 283).
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Good moral character expresses itself in the will to
do the unpleasant thing if it is right and the resolve
not to do the pleasant thing if it is wrong (Cordon v.
Balicanta, A.C. No. 2797, October 4, 2002).
CANON 18: A LAWYER SHALL SERVE HIS
CLIENT WITH COMPETENCE AND DILIGENCE.
Diligence
The attention and care required of a person in a
given situation and is the opposite of negligence
(FUNA, Ethics, supra at 285).
The practice of law does not require extraordinary
diligence (exactissima diligentia) or that “extreme
measure of care and caution which persons of
unusual prudence and circumspection use for
securing and preserving their rights.” All that is
required is ordinary diligence (diligentia) or that
degree of vigilance expected of a bonus pater
familias (Edquibal v. Ferrer, A.C. No. 5687,
February 3, 2005).
It is presumed that a counsel takes ordinary care of
his concerns; and that his official duty (as officer of
the court) is regularly performed (RULES OF
COURT, Rule 131, Sections 3 (d) and (m)).
These presumptions may be rebutted by clear and
strong evidence (PINEDA, Legal, supra at 288).
Duty to Protect the Client’s Interests
Rule 18.01 - A lawyer shall not undertake a legal
service which he knows or should know that he
is not qualified to render. However, he may
render such service if, with the consent of his
client, he can obtain as collaborating counsel a
lawyer who is competent on the matter.
General Rule: A lawyer should not accept a case
which he knows or should know he is not qualified to
render.
Exception: If his client consents, the lawyer can
take as collaborating counsel another lawyer
competent on the matter.
Collaborating Counsel
One who is subsequently engaged to assist a lawyer
already handling a particular case for a client (Id.).
The handling lawyer cannot just take another
counsel without the consent of the client. The new
lawyer on the other hand cannot just enter his
appearance as collaborating counsel without the
conformity of the first counsel (Id.).
`
The same diligence of the first counsel is required of
the collaborating counsel (Sublay v. NLRC, G.R. No.
130104, January 31, 2000).
A lawyer’s acceptance of a case is an implied
representation that he possesses the requisite
degree of academic learning, skill and ability in his
practice (Azor v. Beltran, A.C. No. 1054, March 25,
1975).
Clients Entitled to Effective Representation
Not only does everyone have the right to
representation but everyone has a right to effective
representation.
The lawyer should recognize his lack of competence
for a particular task and the disservice he would do
his client if he undertook that task (PINEDA, Legal,
supra at 290-291).
If he is consulted in such circumstances, he should
either: (DOE)
1. Decline to act; or
2. Obtain his client’s instructions to retain, consult or
collaborate with a lawyer who is competent in that
field; or
3. Collaborate with Experts in scientific, accounting,
or other non-legal fields (Id.).
Rule 18.02 - A lawyer shall not handle any legal
matter without adequate preparation.
Concept of Adequate Preparation
The adequate preparation required of the lawyer in
the handling of a case covers a wide dimension in
law practice. It includes among other virtues: (KTP)
1. Sufficient Knowledge of the law and
jurisprudence;
The full protection of the client’s interests requires
no less than a mastery of the applicable law and
facts involved in a case, regardless of the nature
of the assignment. He must keep constantly
abreast of the latest jurisprudence and
developments in all branches of the law
(AGPALO, Ethics, supra at 221).
2. Ability in Trial technique; and
A lawyer may display his adequate preparation in
his trial technique through his skill in interviewing
witnesses, and his actions in case of conflict in
trial dates.
3. High proficiency in the formulation of Pleadings
(PINEDA, Legal, supra at 291-292).
A lawyer’s pleading, aside from its legal function,
shows the extent of his study and preparation,
articulates his ideas as an officer of the court,
31
mirrors his personality and reflects his conduct
and attitude toward the court, the opposing party
and his counsel. It is a document embodying the
result of his work and furnishing the basis on
which to judge his competence (Id.).
Rule 18.03 - A lawyer shall not neglect a legal
matter entrusted to him, and his negligence in
connection therewith shall render him liable.
Every case a lawyer accepts deserves his full
attention, skill and competence, regardless of its
importance and whether he accepts it for a fee (Id.).
The attorney’s duty to safeguard the client’s
interests commences from his retainer until his
effective release from the case or the final
disposition of the whole subject matter of the
litigation. During that period, he is expected to take
such reasonable steps and such ordinary care as his
client’s interests may require (Id.).
A lawyer who received money to handle a client’s
case but rendered no service at all shall be subject
to disciplinary measure (Dalisay v. Mauricio, A.C.
No. 5655, January 23, 2006).
The mere failure of the lawyer to perform the
obligations due to the client is considered per  se a
violation.  The circumstance that the client was also
at fault does not exonerate a lawyer from liability for
his negligence in handling a case (Solidon v.
Macalalad, A.C. No. 8158, February 24, 2010).
Failure to timely file a formal offer of exhibits
because a lawyer believes that the exhibits were
fabricated and that he was hoping that the same
would be refused admission by the RTC. Such was
improper because if he truly believed the exhibits
were fabricated, then he had the option to withdraw
from the case. A lawyer must not forget that he shall
not neglect a legal matter entrusted to him, and his
negligence in connection therewith shall render him
liable (Sps. Warriner v. Dublin, A.C. No. 5239,
November 18, 2013).
General Rule: The client is bound by his counsel’s
conduct, negligence and mistake in handling the
case.
Exceptions: (DJ-GP)
1. Where adherence to the rule will result in outright
Deprivation of the client’s liberty or property;
2. Where the interests of Justice require as when
the error committed by counsel is purely technical
in nature which does not affect substantially the
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 client’s cause and provided it does not appear to
have impaired substantial rights;
3. Where reckless or Gross negligence of counsel
deprives the client of due process of law; and
4. Where an unsuccessful party has been
Prevented from fully and fairly presenting his
case as a result of his lawyer’s professional
delinquency or infidelity (AGPALO, Ethics, supra
at 363-365).
Requisites of Gross Negligence
1. The counsel has been grossly negligent to justify
a new trial;
2. The client has good and meritorious defense; and
3. The client is not himself guilty of gross
negligence. (AGPALO, Ethics, supra at 366)
Applicability of Command Responsibility in Law
Firm Practitioners
Although the term command responsibility has
special meaning within the circle of men in uniform
in the military, however, the principle does not abide
solely therein.
Partners and practitioners who hold supervisory
capacities are legally responsible to exert ordinary
diligence in apprising themselves of the comings
and goings of the cases handled by the persons
over which they are exercising supervisory authority
and in exerting necessary efforts to foreclose the
occurrence of violations of the Code of Professional
Responsibility by persons under their charge
(Solatan v. Inocentes, A.C. No. 6504, August 9,
2005).
The rule is that the negligence or mistake of clerks
of lawyers, which adversely affects cases handled
by the latter, is binding upon the lawyers and
eventually their clients (AGPALO, Ethics, supra at
359).
Duty to Keep the Client Fully Informed
Rule 18.04 - A lawyer shall keep the client
informed of the status of his case and shall
respond within a reasonable time to the client's
request for information.
How To Keep Client Fully Informed (UMMRAC)
1. The client must receive from the lawyer periodic
and full Updates on developments affecting the
case;
2. The lawyer should apprise the client on the Mode
and Manner that the lawyer is utilizing to defend
the client’s interests; and
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3. The lawyer must advise the client of the Risks as
well as the Alternatives and their Consequences.
(FUNA, Ethics, supra at 302).
Duty In Case Of Adverse Decision Against Client
The client must be informed within the period of
appeal to enable him to decide whether or not he will
still seek an appellate review of the decision
(PINEDA, Legal, supra at 301).
He should communicate with him the effects of
withdrawal of appeal with all its adverse
consequences. The client is entitled to the fullest
disclosure of the mode or manner by which his
interest is defended.
Respondent Atty. Ga breached the duties imposed
by Rules 18.03 and 18.04 when he failed to
reconstitute or turn over the records of the case to
his client, herein complainant Gone. His negligence
manifests lack of competence and diligence required
of every lawyer.   Respondent’s sentiments against
complainant Gone is not a valid reason for him to
renege on his obligation as a lawyer.  The moment
he agreed to handle the case, he was bound to give
it his utmost attention, skill and
competence (Patricio Gone v. Atty. Macario
Ga, A.C. No. 7771, April 6, 2011).
Doctrine of Imputed Knowledge
This doctrine implies that notice to counsel is notice
to client.
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, G.R.No. 780, November 16, 1945).
Reason: An attorney, who has notice of matter
affecting his client, has communicated the same to
his principal in the course of professional dealings.
The doctrine applies regardless of whether or not
the lawyer actually communicated to the client what
he learned in his professional capacity, the attorney
and his client being, in legal contemplation, one
juridical person (AGPALO, Ethics, supra at 350).
Exceptions (CO)
1. If strict application might foster dangerous
Collusion to the detriment of justice; and
2. If service of notice upon party instead of upon his
attorney is Ordered by court (Id.).
Duty When the Accused Intends to Plead Guilty
A plea of guilty is an admission by the accused of
his guilt of crime as charged in the information and
`
of the truth of the facts alleged, including the
qualifying and aggravating circumstances.
It is the duty of the defense counsel when his client
desires to enter a plea of guilty to: (ACEPA)
1. Fully Acquaint himself with the records and
surrounding circumstances of the case;
2. Confer with the accused and obtain from him his
account of what had happened;
3. Thoroughly Explain to him the import of a guilty
plea and the inevitable conviction that will follow;
4. See to it that the prescribed Procedure which
experience has shown to be necessary to the
administration of justice is strictly followed and
disclosed in the court records; and
5. Advise him of his constitutional rights (AGPALO,
Ethics, supra at 241).
Duty of a Party-Litigant as Regards his Case or
Cases
It is a client’s duty to be in touch with his counsel so
as to be constantly posted about the case. The client
is mandated to inquire from his counsel about the
status and progress of the case from time to time
and cannot expect that all he has to do is sit back,
relax and wait for the outcome of the case (GCP-
Manny Transport Services, Inc. v. Principe, G.R. No.
141484, November 11, 2005).
Duty to Comply With the Client’s Lawful Request
A lawyer should endeavor to seek instruction from
his client on any substantial matter concerning the
litigation which may require decision on the part of
the client, such as whether to compromise the case
or to appeal an unfavorable judgment. He should
give his client sound advice on any such and similar
matters and comply with the client’s lawful
instructions relative thereto. He should resist any
unlawful instruction of his client.
CANON 19: A LAWYER SHALL REPRESENT HIS
CLIENT WITH ZEAL WITHIN THE BOUNDS OF
THE LAW.
Devotion to Client
A lawyer owes entire devotion to the interest of the
client, warm zeal in the maintenance of and defense
of his rights, and the exertion of his utmost learning
and ability, to the end that nothing be withheld from
him (PINEDA, Legal, supra at 305).
Limitation to the Devotion: The Law and Ethics
A lawyer’s duty is not to his client but to the
administration of justice; to that end, his client’s
success is wholly subordinate and his conduct ought
to and must always be unscrupulously observant of
law and ethics (Magsalang v. People, G.R. No.
90083, October 4, 1990).
33
Duty to Restrain Client from Impropriety
Rule 19.01 - A lawyer shall employ only fair and
honest means to attain the lawful objectives of
his client and shall not present, participate in
presenting or threaten to present unfounded
criminal charges to obtain an improper
advantage in any case or proceeding.
Duty to Employ only Fair and Honest Means
1. A lawyer should employ such means only as are
consistent with truth and honor. Among others,
he should not offer in evidence any document
which he knows is false nor present any witness
whom he knows will perjure.
2. In espousing his client’s cause, a lawyer should
not state his personal belief as to the soundness
or justice of his case (AGPALO, Ethics, supra at
214).
The writing of demand letters is a standard practice
and tradition in this jurisdiction. However, the letter
in this case contains more than just a simple
demand to pay. It even contains a threat to file
retaliatory charges against complainant which have
nothing to do with his client’s claim for separation
pay. Indeed, letters of this nature are definitely
proscribed by the Code of Professional
Responsibility (Peña v. Aparicio, A.C. No. 7298,
June 25, 2007).
Under this Rule, a lawyer should not file or threaten
to file any unfounded or baseless criminal case or
cases against the adversaries of his client designed
to secure a leverage to compel the adversaries to
yield or withdraw their own cases against the
lawyer's client (Pena v. Aparicio, A.C. No. 7298,
June 25, 2007).
Duty of Lawyer in Case Of Knowledge Of Client’s
Fraud
Rule 19.02 - 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
in accordance with the Rules of Court.
A lawyer should use his best efforts to restrain and
to prevent his client from doing those things which
he himself ought not to do, particularly with
reference to the conduct toward the court, judicial
officer, witness and suitor and if the client persists in
such wrongdoings, the lawyer should terminate their
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relation (CANONS OF PROFESSIONAL ETHICS,
Canon 16).
He may not volunteer the information concerning the
client’s commission of fraud to anybody, as it will
violate his obligation to maintain his client’s secrets
undisclosed (AGPALO, Ethics, supra at 218).
Authority of a Lawyer
Rule 19.03 - A lawyer shall not allow his client to
dictate the procedure in handling the case.
The lawyer has exclusive management of the
procedural aspect of the litigation. This means all
proceedings in court to: (EB)
1. Enforce the remedy; and
2. Bring the claim, demand, cause of action or
subject matter of the suit to hearing, trial,
determination, judgment and execution.
As to the substantial aspect, he can bind the client
only with the client’s express or implied consent.
The client has exclusive control over: (CDS)
1. The Cause of action; or
2. The claim or Demand sued upon; and
3. The Subject matter of the litigation.
A client may waive, surrender, dismiss, or
compromise any of his rights involved in litigation in
favor of the other party even without or against the
consent of his attorney (Id.).
The Code warns a lawyer not to allow his client to
dictate the procedure in handling the case. In short,
a lawyer is not a gun for hire (Millare v. Atty.
Montero, A.C. No. 3283, July 1995).
Authority of a lawyer to appear for or represent a
client
Appearance
It is the coming into court as a party either as a
plaintiff or as a defendant and asking relief therefrom
(Id).
Presumption of Authority
An attorney is presumed to be properly authorized to
represent any cause in which he appears in all
stages of the litigation and no written authority is
required to authorize him to appear.
The presumption is a strong one. A mere denial by a
party that he has authorized an attorney to appear
for him, in the absence of any compelling reason, is
insufficient to overcome the presumption especially
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when the denial comes after the rendition of an
adverse judgment (Id.).
Presumption Disputable
The presumption that an attorney is duly authorized
to manage a litigation is a disputable one and may
be overcome by clear evidence to the contrary, such
as judicial declaration that litigant is incompetent
(Id.).
Effects of an Unauthorized Appearance (PJDC)
1. Party is not bound by the attorney’s appearance
in the case or by the judgment rendered therein;
2. Court does not acquire Jurisdiction over the
person if the party has not been served with
summons;
3. The adverse party who has been forced to litigate
as a defendant by the unauthorized action on the
part of the attorney for the plaintiff may, on that
ground, move for the Dismissal of the complaint;
and
4. If unauthorized appearance is willful, attorney
may be cited for Contempt as an officer of the
court who has misbehaved in his official
transactions, and he may be disciplined for
professional misconduct (Id.).
Ratification of Unauthorized Appearance
1. Express: Categorical assertion by client that he
has authorized a lawyer or that he confirms his
authorization to represent him in the case.
2. Implied: Where a party with knowledge of the
fact that a lawyer has been representing him in a
case, accepts benefits of representation or fails to
promptly repudiate the assumed authority.
Requisites for Implied Ratification by Silence
(CDAF)
1.Party represented by lawyer must be of age,
Competent or if suffering from Disability, has a
guardian or legal representative;
2.Party or guardian is Aware of attorney’s
representation; and
3.He Fails to promptly repudiate assumed authority
(Id.).
Authority to Compromise
Compromise
A contract whereby the parties, by making reciprocal
concessions, avoid litigation or put an end to one
already commenced (CIVIL CODE, Art. 2028).
General Rule: The attorney has NO authority to
compromise his client’s case (RULES OF COURT,
Rule 138, Sec. 23).
`
Reason: The client, even if represented by counsel,
retains exclusive control over the subject matter of
the litigation. The client can, of course, authorize his
lawyer to compromise his case, and the settlement
made by the lawyer will bind his client (AGPALO,
Ethics, supra at 333).
Exception: Where the lawyer is confronted with an
emergency and prompt, urgent action is necessary
to protect the interest of his client and there is no
opportunity for consultation with him.
Mistakes or Negligence of Lawyer Binding upon
Client
General rule: Client is bound by attorney’s conduct,
negligence and mistake in handling a case or in
management of litigation and in procedural
technique, and he cannot be heard to complain that
result might have been different had his lawyer
proceeded differently (Vivero v. Santos, G.R. No. L-
8105, February 28, 1956).
Exceptions:
1. Where adherence thereto results in outright
deprivation of client’s liberty or property or where
interest of justice so requires;
2. Where error by counsel is purely technical which
does not substantially affect the client’s cause;
3. Ignorance, incompetence or inexperience of a
lawyer is so great and error so serious that client,
who has good cause, is prejudiced and denied a
day in court;
4. Gross negligence of lawyer; and
5. Lack of acquaintance with technical part of
procedure.
Form of Compromise
In the absence of statutory requirement, no
particular form of agreement is essential to the
validity of a compromise (Cadano v. Cadano, G.R.
No. L-34998, January 11, 1973).
Validity of a Compromise Effected by an
Attorney
Either of the following is essential for the validity of a
compromise effected by an attorney:
1. Special authority
The special authority need not be in writing,
although it is not only wise but prudent as well to
secure a written authority (Id.).
Effect of Want of Special Authority: Settlement
is merely unenforceable and not null and void ab
initio (Id. at 343).
2. Subsequent ratification on the part of a client
(AGPALO, Ethics, supra at 340-341).
35
Ratification of Unauthorized Compromise
A client may ratify an unauthorized compromise
entered into by his counsel either expressly or
tacitly (CIVIL CODE, Arts. 1317 and 1393).
A tacit or implied ratification may take many
forms, such as by: (SAB)
a. Silence or acquiescence;
b. By acts showing Approval or adoption of the
compromise; or
c. By acceptance and retention of the Benefits
flowing therefrom (Acuña v. Batac Producers
Cooperatives Marketing Association
Incorporated, G.R. No. L-20333, June 30,
1967).
Effect of Ratification of Unauthorized
Compromise
Ratification cleanses the compromise agreement of
all its defects from the moment it was constituted,
and the client who becomes bound thereby cannot
thereafter disown it (AGPALO, Ethics, supra at 343).
Authority to Appeal
A lawyer has no implied authority to waive his
client’s right to appeal or to withdraw a pending
appeal (Id. at 346).
Even if a lawyer believes that the appeal of his client
is frivolous, he cannot move to dismiss the appeal
without the consent of his client. His remedy is to
withdraw from the case (People v. Pagaro, G.R. No.
930026-27, July 24, 1991).
Authority to Dismiss a Case
1. A lawyer had no authority to dismiss his client’s
case with prejudice even if he does not believe
that his client is entitled to prevail in the action.
Reason: A dismissal with prejudice operates as
an adjudication of the action upon its merits and
precludes its refiling in court on the ground of res
judicata.
2. An attorney has, however, the implied power to
dismiss his client’s case without prejudice.
Reason: This is not a legal obstacle to the refiling
of the case (AGPALO, Ethics, supra at 345-346).
Attorney’s Fees
CANON 20: A LAWYER SHALL CHARGE ONLY
FAIR AND REASONABLE FEES.
Rule 20.01 - A lawyer shall be guided by the
following factors in determining his fees:
a.The time spent and the extent of the service
rendered or required;
SAN BEDA COLLEGE OF LAW
2014 CENTRALIZED BAR OPERATIONS
b.The novelty and difficulty of the questions Two Concepts of Attorney’s Fees
involved; Ordinary Extraordinary
c.The importance of the subject matter; The
d.The skill demanded; An indemnity
reasonable
e.The probability of losing other employment as for damages
compensatio
a result of acceptance of the proffered case; ordered by the
n paid to the
f. The customary charges for similar services court to be
lawyer for the
and the schedule of fees of the IBP chapter to Definition paid by the
legal services
which he belongs; losing party to
he had
g.The amount involved in the controversy and the prevailing
rendered in
the benefits resulting to the client from the party in a
favor of his
service; litigation.
client.
h.The contingency or certainty of compensation; General Rule:
i. The character of the employment, whether Paid to the
occasional or established; and Client
j. The professional standing of the lawyer.
Exception:
Basis for Attorney’s Fees Paid to the
The fact of employment as lawyer by the client Lawyer when
constitutes the legal basis of the lawyer’s right to To Whom Paid to the there is an
demand payment for his services. No formal Paid Lawyer agreement
contract is necessary to effectuate employment that the award
(PINEDA, Legal, supra at 316). shall pertain to
the lawyer as
Reason for an Adequate Compensation an additional
The protection of attorney’s lien by the court is compensation
necessary to preserve the decorum and or as part
respectability of the profession. A lawyer like all thereof.
other human beings has a right to livelihood (Id.). Any of the
The fact of
cases
Proper Time for Fixing Attorney’s Fees Basis employment
authorized by
The proper time for fixing the attorney’s fees, which by the client.
law
is a delicate matter, is at the commencement of the (PINEDA, Legal, supra at 316).
lawyer-client relationship (De Fajardo v. Bugaring,
A.C. No. 5113, October 7, 2004). Attorney’s Fees Merely Incidental
The compensation of a lawyer should be a mere
Requirement for the Decision to Mention the incident of the practice of law, the primary purpose
Reason for the Grant of Attorney’s Fees of which is to render public service (AGPALO,
The accepted rule is that the reason for the award of Ethics, supra at 386.)
the attorney’s fees must be stated in the text of the
court’s decision; otherwise, if it is stated only in the Being primarily an officer of the court charged with
dispositive portion of the decision, the same must be the duty of assisting the court render impartial
disallowed on appeal. justice, what a lawyer may collect as his fees is
always subject to judicial control (Mambulao Lumber
Reason: The award of attorney’s fees, being an Co. v. PNB, G.R. No. L-22973, January 30, 1968).
exception rather than the general rule, it is
necessary for the court to make findings of facts and Attorney’s Fees as Damages
law that would bring the case within the exception
and justify the grant of such award (Agustin v. Court General Rule: Attorney’s Fees as damages is not
of Appeals, G.R. No. 84751, June 6, 1990). recoverable because it is not the fact of winning that
ipso facto justifies the award but the attendance of
Requisites for the Right to Attorney’s Fees any of the special circumstances.
1.Existence of attorney-client relationship; and
2.Rendition by the lawyer of services to the client. Exceptions (A JIGSAW MUSCLE)
(AGPALO, Ethics, supra at 388). 1. There is an Agreement;
2. When the court deems it Just and equitable;

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 `
3. In actions for Indemnity under workmen’s
compensation and employees liability laws;
4. Defendant acted in Gross and evident bad faith
5. Actions for Support;
6. When at least double costs are Awarded which
is usually awarded to frivolous actions;
7. Cases for the recovery of Wages;
8. In criminal cases of Malicious prosecution
a. Defendant was acquitted
b. Person who charged him knowingly made the
false statement of facts or that the filing was
prompted by sinister design to vex him;
9. Action is clearly Unfounded and is so untenable
that it amounts to gross bad faith;
10. A Special law so authorizes;
11. In separate Civil action arising from a crime ;
12. Defendant’s action or omission in gross bad faith
compelled plaintiff to Litigate; and
13. Exemplary damages are awarded (AGPALO,
Ethics, supra at 437-443).
Retainer (Two Concepts)
1. As an act of a client, by which he engages the
services of an attorney to render legal advice or to
defend or prosecute his cause in court
2. As a fee which a client pays to the attorney
(PINEDA, Legal, supra at 324).
The expiration of the retainer contract between the
parties during the pendency of the labor case does
not extinguish the respondent’s right to attorney’s
fees (Uy v. Gonzales A.C. No. 5280, March 30,
2004).
Kinds of Retainer Agreement:
1. General retainer: It is the fee paid to a lawyer to
secure his future services as “general counsel”
for any ordinary legal problem that may arise in
the ordinary business of the client and referred to
him for legal action. The client pays fixed retainer
fees, which could be monthly or otherwise. The
fees are paid whether or not there are cases
referred to the lawyer; or
2. Special retainer: Fee for a specific case or
service rendered by the lawyer for the client.
Kinds of Payment that may be Stipulated Upon
1. Fixed or Absolute Fee
Payable regardless of the result of the case;
2. Contingent Fee
Conditioned on the securing of a favorable
judgment and recovery of money or property and
the amount of which may be on a percentage
basis;
3. Based on piece of work
The lawyer gets paid ONLY IF he wins the case;
4. Fixed fee payable per appearance;
37
5. Fixed fee computed by the number of hours
spent;
6. Fixed fee based on piece of work; and
7. A combination of the above arrangements or
an entirely different agreement not contrary to
law, morals or public policy (PINEDA, Legal,
supra at 324).
Situations When Counsel Cannot Recover the
Full Amount, Despite a Written Contract for
Attorney’s Fees
1. Services are not performed - As when the
counsel withdrew before the case is finished,
except when withdrawal is justified.
2. Justified dismissal of the attorney- Payment
will be based on quantum meruit (Cristobal v.
Ocson, G.R. No. 19205, February 13, 1923).
3. Stipulated Attorney’s fees are unconscionable
(Cruz v. CIR, G.R. No. L-18277, August 31,
1963).
4. Stipulated attorney’s fees are in excess of what
is expressly fixed by law. Under the Labor
Code, Attorney’s fees cannot exceed 10%.
5. When the lawyer is guilty of fraud or bad faith
toward his client in the matter of his employment
(Medina v. Bautista, A.C. No. 190, September
26, 1964).
6. Counsel’s services were worthless because of
his negligence (Delos Santos v. Palanca, G.R.
No. L-17815, August 31, 1963).
7. Contract of employment is illegal.
8. Serving adverse interest, unless he acted with
the consent of both parties.
Quantum Meruit
Literally means “as much as a lawyer deserves”
(AGPALO, Ethics, supra at 414).
Reason: The doctrine of quantum meruit is a
device to prevent undue enrichment based on the
equitable postulate that it is unjust for a person to
retain benefit without paying for it.
Some Instances of Recovery of Attorney’s Fees
On The Basis of Quantum Meruit (FUN-DDV)
1. When, for justifiable cause, the lawyer was not
able to Finish the case;
2. When although there is a formal contract for
attorney’s fees, the fees stipulated are found
Unconscionable;
3. There is No express contract for payment of
attorney’s fees agreed upon between the lawyer
and the client;
4. When the lawyer and the client Disregarded the
contract for fees (Rilloraza et al. v. Eastern
Telecommunications Phils. Inc. et al., G.R. No.
104600, July 2, 1999);
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 5. When the client Dismissed his counsel before the
termination of the case (AGPALO, Ethics, supra
at 389); and
6. When the contract for attorney’s fees is Void due
to purely formal defects of execution.
Guides for Determining Attorney’s Fees On The
Basis Of Quantum Meruit: (TINS-PPA-CCC)
1. Time spent and extent of the services rendered
or required;
A lawyer may charge higher fees when the case
is complicated and requires more time and effort.
2. Importance of subject matter ;
The more important the subject matter or the
bigger the value of the interest of property in
litigation, the higher is the attorney’s fees.
3. Novelty and difficulty of questions involved;
4. Skill demanded of a lawyer ;
A lawyer of great skill justifies a higher fee than
an ordinary practitioner;
5. Probability of losing other employment;
A lawyer may charge a higher fee if by reason of
his retention as counsel by a client, he loses the
chance of employment by the opposite party
because of the prohibition against representing
conflicting interests.
6. Professional standing of the lawyer;
7. Amount involved in the controversy and benefits
resulting to the client from the service;
8. Customary charges for similar services and
schedule fees of IBP;
9. Contingency or certainty of compensation; and
10. Character of employment.
A lawyer generally charges a higher fee from a
casual client than from a constant client.
None of the above guides are controlling. They are
resorted to only when there are no conclusive
contracts for attorney’s fees which could be enforced
without objections (Id.).
When Attorney’s Fees Reasonable
There is no hard and fast rule which could be utilized
to determine the reasonableness of attorney’s fees.
The same must be determined from the facts in
each case (De Guzman v. Visayan Rapid Transit
Co., Inc. G.R. No. 46396, September 30, 1939).
The fee is reasonable if it is within capacity of the
client to pay and is directly commensurate with the
value of the legal services rendered. The judge has
the discretion to determine the reasonableness of
the attorney’s fees which must be exercised soundly
to maintain the dignity and respectability of the
profession (PINEDA, Legal, supra at 341-342).
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When Attorney’s Fees are Unconscionable
Attorney’s fees are unconscionable if they affront
one’s sense of justice, decency or reasonableness.
In the instant case, the lawyers received an amount
which was equal to forty-four percent (44%) of the
just compensation paid or an amount. Considering
that there was no full blown hearing in the
expropriation case, ending as it did in a Compromise
Agreement, the 44% is, undeniably, unconscionable
and excessive under the circumstances (Roxas, et
al. v. De Zuzuarregui, Jr., et al., G.R. No. 152072,
January 31, 2006).
Attorney’s Liens
Charging Lien
An equitable right to have the fees and lawful
disbursements due a lawyer for his services in a suit
secured to him out of the judgment for the payment
of money and executions issued in pursuance
thereof in the particular suit (AGPALO, Ethics, supra
at 451).
Requisites for Enforceability of Charging Lien
(ASMCS)
1. An Attorney-client relationship;
2. The attorney has rendered Services;
3. Favorable Money judgment secured by the
counsel for his client;
4. The attorney has a Claim for attorney’s fees or
advances; and
5. A Statement of the claim has been duly recorded
in the case with notice thereof served upon the
client and the adverse party.
Property to which Charging Lien Attaches
An attorney’s charging lien, once duly recorded,
attaches to the judgment for the payment of money
and the executions issued in pursuance of such
judgment. The charging lien does not attach to
property or land in litigation (Id.).
Effects of a Valid Charging Lien
1. Becomes a collateral security on real or personal
property;
2. Follows the proceeds of the judgment obtained
for the client in the case wherever they may be
and whoever received them;
3. Gives the lawyer the right to collect, in payment
of his professional fees and disbursements, a
certain amount from out of the judgment or award
rendered in favor of his client;
4. Enjoys preference of credit over that of a creditor
who subsequently recorded it; and
5. Gives the lawyer standing to protest its prejudicial
discontinuance by the client (Id.).
`

Assignment of Charging Lien execution

General Rule: An attorney’s charging lien may be issued in
assigned or transferred without preference thereof properties in
pursuance of
being extinguished. the lawful
such
Exception: When the assignment will result to a possession of
judgments;
breach of the attorney’s duty to preserve his client’s the attorney
proceeds of
confidence. by reason of
judgment in
his
favor of client;
Retaining Lien professional
proceeds of
A right merely to retain the funds, documents, and employment.
compromise
papers as against the client until the attorney is fully settlement.
paid his fees As soon as As soon as
the attorney the claim for
Requisites: (ALU) gets attorney’s fees
1. Attorney-client relationship; Effectivity possession of had been
2. Lawful possession by the lawyer of the client’s the papers, entered into
funds, documents and papers in his professional documents, the records of
capacity; and or property. the case.
3. Unsatisfied claim for attorney’s fees or Client need Notice must
disbursements. not be be served
Notice notified to upon client
Property to which Retaining Lien Attaches make it and adverse
The general, possessory or retaining lien of an effective. party.
attorney attaches to all property, papers, books, Generally,
documents or securities of the client that lawfully May be exercisable
come to the lawyer professionally or in the course of exercised only when the
his professional employment. before attorney had
Applicability judgment or already
Hence, the retaining lien does not attach to funds, execution or secured a
documents and papers which come into the lawyer’s regardless favorable
possession in some other capacity such as an agent thereof. judgment for
of the client’s spouse, or as a mortgagee or trustee his client.
(Id. at 448). When
possession
Distinctions between Retaining and Charging When the
lawfully ends,
Liens client loses
as when the
the action as
lawyer
Point of Retaining Charging the lien may
voluntarily
Distinction Lien Lien only be
parts with the
Passive Lien. enforced
Active Lien. funds,
It cannot be against a
It can be Extinguishme documents
actively judgment
Nature enforced by nt and papers,
enforced. It is awarded in
execution. It is but NOT
a general favor of the
a special lien. when the
lien. client, the
documents
Lawful proceeds
have been
possession of Securing of a thereof or
improperly or
papers, favorable executions
illegally taken
Basis documents, money thereon.
from lawyer’s
property judgment for custody.
belonging to the client. (PINEDA, Legal, supra at 388 and AGPALO, Ethics,
the client. supra at 450, 459)
Coverage Covers Covers all
papers, judgments for
documents, the payment
and of money and

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Champertous Contract
One where the lawyer stipulates with his client that
in the prosecution of the case, he will bear all the
expenses for the recovery of things or property
being claimed by the client, and the latter agrees to
pay the former a portion of the thing or property
recovered as compensation. It is VOID for being
against public policy.
Difference between Contingent Contract and
Champertous Contract
Champertous
Contingent Contract
Contract
Contingent fee is
Payable in kind ONLY
payable in cash
Lawyers do not Lawyers undertake to
undertake to pay all pay all expenses of
expenses of litigation litigation
Valid Void
(Id. at 339-340)
Rule 20.02 - A lawyer shall, in case of referral,
with the consent of the client, be entitled to a
division of fees in proportion to the work
performed and responsibility assumed.
Fees of Collaborating Counsel in case of
Lawyer-Referral
If another counsel is referred to the client, and the
latter agrees to take him as collaborating counsel,
and there is no express agreement on the payment
of attorney’s fees, the said counsel will receive
attorney’s fees in proportion to the: (WR)
1. Work Performed; and
2. Responsibility assumed
In case of disagreement, the court may fix the
proportional division of fees (PINEDA, Legal, supra
at 346).
If the lawyers were engaged at different stages of
the case, and there are no specific contracts
executed, the lawyer who bore the brunt of the
prosecution of the case to its successful end is
entitled to the full amount of his fees despite the fact
that the client has retained another lawyer as
“exclusive” counsel who appeared only after the
rendition of a favorable judgment (Cruz v. CIR, G.R.
No. L-18277, August 31, 1963).
Prohibitions
1. It is improper for a lawyer to receive
compensation for merely recommending another
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lawyer to his client and render no legal service at
all in the pursuit or defense of the client’s case.
Reason: This practice if allowed and abetted, will
commercialize the legal profession for the
recommending lawyers will be acting like “agents”
for the others (PINEDA, Legal, supra at 347).
2. Attorney’s fees cannot be shared to a non-lawyer
(Amalgamated Laborers' Association v. CIR,
G.R. No. L-23467, March 27, 1968).
Reason: The existence of an attorney client
relationship is required as a condition for the
recovery of attorney’s fees (AGPALO, Ethics,
supra at 399).
Rule 20.03 - A lawyer shall not, without the full
knowledge and consent of the client, accept any
fee, reward, costs, commission, interest, rebate
or forwarding allowance or other compensation
whatsoever related to his professional
employment from anyone other than the client.
Reason: To secure the fidelity of the lawyer to the
client’s cause.
There should be no room for suspicion on the part of
the client that his lawyer is receiving compensation
in connection with the case from third persons with
hostile interests (Report of the IBP Committee).
Whatever a lawyer receives from the opposite party
in the service of his client belongs to the client, in the
absence of client’s consent.
Exception: A lawyer may receive compensation
from a person other than his client when the latter
has full knowledge and approval thereof (Rule 138,
Sec. 20 (e)).
Enforcement of Attorney’s Fees
Rule 20.04 - A lawyer shall avoid controversies
with clients concerning his compensation and
shall resort to judicial action only to prevent
imposition, injustice or fraud.
General Rule
A lawyer should avoid the filing of any case against
a client for the enforcement of attorney’s fees.
Exceptions
1. To prevent imposition;
2. To prevent injustice; and
3. To prevent fraud.
Right to Protection of Attorney’s Fees
The duty of the court is not alone to see that a
lawyer acts in a proper and lawful manner; it is also
`
his duty to see that a lawyer is paid his just fees
(AGPALO, Ethics, supra at 387).
Effect of Nullity of Contract on the Right to
Attorney’s Fees
1. If the nullification is due to the illegality of its
object, the lawyer is precluded from recovering;
and
2. If the nullity is due to want of authority on the part
of one of the contracting parties or to some
irregularity in its formal execution or because the
court has found the amount to be recovered is
unconscionable, the lawyer may recover for any
services rendered based on quantum meruit.
When and where may a claim of fees be
asserted?
1. The very action in which the services in question
have been rendered; or
2. In a separate civil action.
Instances When an Independent Civil Action to
Recover Attorney’s Fees is Necessary
1. Main action is dismissed or nothing is awarded;
2. Court has decided that it has no jurisdiction over
the action or has already lost it;
3. Person liable for attorney’s fees is not a party to
the main action;
4. Court reserved to the lawyer the right to file a
separate civil suit for recovery of attorney’s fees;
5. Services for which the lawyer seeks payment are
not connected with the subject litigation; and
6. The court rendered judgment without requiring
payment for attorney’s fees and the judgment has
become final (AGPALO, Ethics, supra at 428-
430).
Compensation to which a lawyer is entitled to
depending on his capacity
1. Counsel de Parte – He is entitled to the
reasonable attorney’s fees agreed upon, or in the
absence thereof, on quantum meruit basis.
2. Counsel de Oficio – The counsel may not
demand from the accused attorney’s fees even if
he wins the case. He may, however, collect from
the government funds, if available based on the
amount fixed by the court.
3. Amicus Curiae – He is not entitled to attorney’s
fees.
Duty of Confidentiality
CANON 21: A LAWYER SHALL PRESERVE THE
CONFIDENCE AND SECRETS OF HIS CLIENT
EVEN AFTER THE ATTORNEY-CLIENT
RELATION IS TERMINATED.
41
The lawyer’s duty to maintain inviolate his client’s
confidence is perpetual because it outlasts the
lawyer’s employment (PINEDA, Legal, supra at
356).
Rule 21.01 - A lawyer shall not reveal the
confidences or secrets of his client, except:
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 or
by judicial action.
Confidence
Information protected by the attorney-client privilege
(Report of IBP Committee, p. 117).
Secret
Other information gained in the professional
relationship that the client has requested to be held
inviolate or the disclosure of which would be
embarrassing or detrimental to the client (Id.).
Requisites for the Attorney-Client Privilege
(See discussion under Rule 15.02.)
Evidentiary Privilege: All of the elements inherent
in the rule must concur to make the communication
privileged against disclosure.
Form or Mode of Communication Covered
38712. Oral statements;
38713. Written statements;
38714. Actions, signs or other means of
communication; and
38715. Those transmitted by any form of
agency, such as through messenger or
interpreter (AGPALO, Ethics, supra at 276).
Retainer Fee Not Necessary
Payment of a retainer fee is not essential before an
attorney can be required to safeguard a prospective
client’s secret acquired by the attorney during the
course of consultation with the prospective client,
even if the attorney did not accept the employment.
Requirement of Seeking Legal Advice
The essence of the veil of secrecy is that the
communication is intended by the client not for the
information of a third person but for the purpose of
seeking legal advice from his attorney as to his legal
rights or obligations (Id.).
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Requirement of Lawful Purpose
For a communication to be privileged, it must be for
a lawful purpose or in furtherance of a lawful end.
The existence of an unlawful purpose prevents the
privilege from attaching (People v. Sandiganbayan,
G.R. Nos. 115439-4, July 16, 1997).
Generally, the Attorney-Client Privilege Covers:
1. Lawyer;
2. Client; and
3. Third persons who by reason of their work have
acquired information about the case being
handled such as:
a. Attorney’s secretary, stenographer and clerk;
b. Interpreter, messengers and agents
transmitting communication; and
c. An accountant, scientist, physician, engineer
who has been hired for effective consultation
(AGPALO, Ethics, supra at 276).
Note: The assignee of the client’s interest may
assert the privilege as far as the communication
affects the realization of the assigned interest. After
the client’s death, his heir or legal representative
may assert the attorney-client privilege as against a
stranger to the estate but NOT where the
controversy is among the claimants of the estate of
the client (Id.).
Exceptions to the Privilege (CW-LPC)
1. When there is Consent or Waiver of client;
2. When the Law requires disclosure;
3. When disclosure is made to Protect the lawyer’s
rights (i.e., to collect his fees or defend himself,
his employees or associates or by judicial action);
and
4. When such communications are made in
contemplation of a Crime or the perpetuation of a
fraud.
Client’s Waiver of Privilege
General Rule: Only the client can waive the
privilege.
Exception: When the person to be examined is the
attorney’s secretary, stenographer or clerk, in which
case the consent of the lawyer is also necessary.
Waiver cannot be made partially. A waiver in part is
a waiver in whole for a client may not remove the
seal of confidentiality for his advantage and insist
that it be privileged as to so much as makes to the
disadvantage of his adversary (Id. at 285-286).
The privileged communication between an attorney
and client may be a shield of defense as to crimes
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already committed (Gerhardt v. United R Co., 220
SW 677, 9 ALR 1076, 1920).
Disclosure of Name of Client
General rule: The lawyer may NOT invoke the
privilege and refuse to divulge the name or identity
of his client/s.
Reasons
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; and
3. The privilege generally pertains to the subject
matter of the relationship.
Exceptions (ICG)
1. When there is a strong possibility that revealing
the clients name would Implicate the client in the
very activity for which he sought the lawyer’s
advice;
2. When disclosure would open the client to Civil
liability; and
3. When Government’s lawyers have no case
against an attorney’s client and revealing the
clients name would furnish the only link that
would form the chain of testimony necessary to
convict him (Regala v. Sandiganbayan, G.R. No.
105938, September 20, 1996).
Disclosure to Protect Attorney’s Rights
1. If an attorney is accused by his client of
misconduct in the discharge of his duty, he may
disclose the truth in respect to the accusation,
including the client’s instructions or the nature of
the duty which his client expected him to perform
(CANONS OF PROFESSIONAL ETHICS, Canon
37).
2. If an attorney is charged by a third person in
connection with the performance of his duty to his
client, he may also disclose his client’s
confidence relative thereto (Bard v. Koerner, 279
F2d 623, 95 ALR2d 303, 1960).
3. An attorney suing a client for attorney’s fees may
also disclose or use the confidential information
of his client if such disclosure or use is necessary
to enable him to secure his rights (AGPALO,
Ethics, supra at 287).
Rule 21.02 - A lawyer shall not, to the
disadvantage of his client, use information
acquired in the course 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.
Exception: Rule 21.01 and in matters of
unprivileged information (PINEDA, Legal, supra at
361).
Rule 21.03 - A lawyer shall not, without the
written consent of his client, give information
from his files to an outside agency seeking such
information for auditing, statistical,
bookkeeping, accounting, data processing, or
any similar purpose.
Reason: The work product of a lawyer, such as his
effort, research and thought, and the records of his
client, contained in his filed are privileged matters
(Hickman v. Taylor, 91 L ed 451, 1947).
The purchase of the goodwill of a deceased lawyer
by another lawyer may likely involve a violation of
this rule (A.B.A Op. 226, June 21, 1945).
Since it has been proven that the cabinet belongs to
a lawyer and that he keeps the records of his client
therein, the lower court cannot order the opening of
said cabinet. It would be tantamount to compelling
him to disclose his client’s secrets (People v. Sy
Juco, G.R. No. 41957, August 28, 1937).
Rule 21.04 - A lawyer may disclose the affairs of
a client of the firm to partners or associates
thereof unless prohibited by the client.
The rule is that the professional employment of a
law firm is equivalent to the retainer of the members
thereof even though only one of them is consulted;
conversely, the employment of one member of a law
firm is generally considered as employment of the
law firm (Hilado v. David, G.R. No. L-961,
September 21, 1949).
The disclosure is not to a third person because
members or associates in the law firm are
considered as one.
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 clients.
The lawyer should exercise care in selecting and
training his employees so that the sanctity of all
confidences and secrets of his clients may be
preserved (Report of IBP Committee, p.119).
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Rule 21.06 - A lawyer shall avoid indiscreet
conversation about a client's affairs even with
members of his family.
Reason: To better preserve the client’s confidences
and secrets (AGPALO, Ethics, supra at 270).
Prohibition against Indiscreet Conversation
about Client’s Affairs
A lawyer must not only preserve the confidences
and secrets of his clients in his law offices but also
outside including his home. He should avoid
committing calculated indiscretion, that is, accidental
revelation of secrets obtained in his professional
employment.
Reason: Reckless or imprudent disclosure of the
affairs of his clients may prejudice them. Not every
member of the lawyer’s family has the proper
orientation and training for keeping client’s
confidences and secrets (PINEDA, Legal, supra at
364).
Rule 21.07 - A lawyer shall not reveal that he has
been consulted about a particular case except to
avoid possible conflict of interest.
Prohibition to disclose secrets covers
consultations
Reason: The disclosure and the lawyer’s opinion
thereon create an attorney-client relationship, even
though the lawyer does not eventually accept the
employment (Hilado v. David, G.R. No. L-961,
September 21, 1949).
General Rule: If a lawyer was consulted about a
particular case, and irrespective of whether or not he
was thereafter hired as counsel, he should not
reveal to others the matter subject of consultation.
Exception: When the lawyer will be placed in a
situation of representing conflicting interests if he
does not disclose the consultation to the next person
consulting him on the same matter (PINEDA, Legal,
supra at 364).
Note: This applies to matters disclosed to a lawyer
by a prospective client (Id.).
Withdrawal of Services
CANON 22: A LAWYER SHALL WITHDRAW HIS
SERVICES ONLY FOR GOOD CAUSE AND UPON
NOTICE APPROPRIATE IN THE
CIRCUMSTANCES.
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The rule in this jurisdiction is that a client has the
absolute right to terminate the attorney-client relation
at any time with or without cause. The right of an
attorney to withdraw or terminate the relation other
than for sufficient cause is, however, considerably
restricted (Orcino v. Gaspar, A.C. No. 3773,
September 24, 1997).
Limitation: The discharge of an attorney or his
substitution by another without justifiable cause shall
not negate the attorney’s right to full payment of
compensation.
Termination of Attorney-Client Relationship
1. Withdrawal of lawyer under Rule 22.01;
2. Death of lawyer;
3. Death of client;
4. Discharge by client;
5. Appointment or election of a lawyer to a
government position which prohibits the practice
of law;
6. Full termination of the case;
7. Disbarment or suspension of the lawyer from the
practice of law;
8. Intervening incapacity or incompetency of client
during pendency of the case;
9. Declaration of presumptive death of the lawyer;
or
10. Conviction for a crime and imprisonment of the
lawyer for quite some time (Pineda, Legal, supra
at 380).
Rule 22.01 - A lawyer may withdraw his services
in any of the following cases:
a.When the client pursues an illegal or immoral
course of conduct in connection with the
matter he is handling;
b.When the client insists that the lawyer pursue
conduct violative of these canons and rules;
c. When his inability to work with co-counsel will
not promote the best interest of the client;
d.When the mental or physical condition of the
lawyer renders it difficult for him to carry out
the employment effectively;
e. When the client deliberately fails to pay the
fees for the services or fails to comply with the
retainer agreement;
f. When the lawyer is elected or appointed to
public office; and
g. Other similar cases.
In all the above cases, the lawyer must file a written
motion a copy thereof served upon the adverse
party with an express consent of his client and the
court shall determine whether he ought to be
allowed to retire.
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He may also retire at any time from an action or
special proceeding, without the consent of his client,
should the court, on notice to the client and attorney,
and on hearing, determine that he ought to be
allowed to retire (RULES OF COURT, Rule 138,
Sec. 26).
The lawyer has no right to presume that his petition
for withdrawal will be granted by the court. Until his
withdrawal shall have been approved, the lawyer
remains counsel of record who is expected by his
client as well as by the court to do what the interests
of his client require. He must still appear on the date
of hearing for the attorney-client relation does not
terminate formally until there is a withdrawal of
record (Orcino v. Gaspar, A.C. No. 3773,
September 24, 1997).
Acceptance of Incompatible Office
A lawyer who accepts public office ceases, by
operation of law, to engage in private law practice
and becomes disqualified from continuing to
represent a client in those cases which the law
prohibits him from doing so or requires his entire
time to be at the disposal of the government. His
qualification to public office operates to ruminate the
existing attorney-client relationship (Omico Miniing &
Industrial Corp. v. Vallejos, G.R. No. L-38974,
March 25, 1975).
Discharge of The Attorney By The Client
The client has the right to terminate at any time with
or without just cause. Just cause is material only in
determining compensation.
While clients have the right to terminate their
relations with their counsel and make substitution or
change at any stage of the proceedings, the
exercise of such right is subject to compliance with
the prescribed requirements. This rule is intended to
ensure the orderly disposition of cases, without it,
there will be confusion in the service of processes,
pleadings and other papers.
With Just Cause
Lawyer is not necessarily deprived of his right to be
paid for his services. He may only be deprived of
such right if the cause for his dismissal constitutes in
itself a sufficient legal obstacle to recovery.
Without Just Cause
1. No express written agreement as to fees –
reasonable value of his services up to the date of
his dismissal (quantum meruit).
2. There is written agreement and the fee stipulated
is absolute and reasonable – full payment of
compensation.
`

3. The amount stipulated as contingent fee.
4. If dismissed before the conclusion of the action –
reasonable value of his services (quantum
meruit).
5. If contingency occurs or client prevents its
occurrence – full amount.
Note: Lawyer should question his discharge,
otherwise he will only be allowed to recover on
quantum meruit basis.
Limitations of Client’s Right to Discharge His
Counsel
1. Client cannot deprive counsel of his right to be
paid for services rendered if dismissal is without
cause;
2. Client cannot discharge counsel as an excuse to
secure repeated extensions of time; and
3. Notice of discharge required in so far as court
and adverse party are concerned.
Insofar as the court and other party are
concerned, the severance of the relation of
attorney and client is NOT effective until a notice
of discharge by the client or a manifestation
clearly indicating that purpose is filed with the
court and a copy thereof served upon the
adverse party.
Change or Substitution of Counsel
Ways of Changing Counsel in a Pending Case
1. Client’s discharge of his attorney at any time with
or without cause and thereafter employ another
lawyer who may then enter his appearance;
2. Attorney himself may initiate the move by
withdrawing his appearance either with the
written consent of his client or with leave of court
on some justifiable ground; or
3. Substitution of counsel in the form of an
application for that purpose (Laput v. Remotigue,
A.C. No. 219, September 29, 1962).
Rule 22.02 - A lawyer who withdraws or is
discharged shall, subject to a retainer lien,
immediately turn over all papers and property to
which the client is entitled, and shall cooperate
with his successor in the orderly transfer of the
matter, including all information necessary for
the proper handling of the matter.
Duties of a Discharged Lawyer or One who
Withdraws
1. Immediately turn-over all papers and property to
which the client is entitled; and
2. Cooperate with his successor in the orderly
transfer of the case.
A lawyer who refuses to return documents or
receipts until his fees agreed upon have been paid is
NOT guilty of malpractice (Dauz v. Fontanosa, A.C.
No. 408, September 30, 1963).
But the retaining lien is dependent upon possession
and does not attach to anything not in attorney's
hands. The lien exists only so long as the attorney's
retains possession ends (Rustia v. Abeto, G.R. No.
47914, April 30, 1941).
Thus, the retaining lien does not attach to funds,
documents and papers which come into the lawyer’s
possession in some other capacity (Sarmiento v.
Montagne, G.R. No. 1110, April 22, 1904).

Requirements:
1. Written application for substitution;
2. Written consent of the client;
3. Written consent of the attorney to be substituted;
and
4. In case such written consent cannot be secured,
there must be filed with the application proof of
service of notice of the application upon the
attorney to be substituted (Ong Ching v.
Ramolete, G.R. No. L-35356, May 18, 1973).

Note: Substitution which does not comply with all of

the requirements is defective (AGPALO, Ethics,
supra at 383).

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