Terminating and

Establishing attorney-
client relationship

Problem Areas in Legal Ethics

Arellano University School of Law – Arellano Law Foundation
2016-2017

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Nature of attorney-client relationship
 An attorney-client relationship is said to exist when a
lawyer acquiesces or voluntarily permits the consultation of
a person, who in respect to a business or trouble of any
kind, consults a lawyer with a view of obtaining
professional advice or assistance.

 It is not essential that the client should have employed the

lawyer on any previous occasion or that any retainer should
have been paid, promised or charged for; neither is it
material that the attorney consulted did not afterward
undertake the case about which the consultation was had, for
as long as the advice and assistance of the attorney is
sought and received in matters pertinent to his profession.
- Virgo v. Atty. Amorin A.C. No. 7861 [2009]

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 Can trigger a lawyer-client
relationship
 A lawyer-client relationship was established from the very
first moment complainant asked respondent for legal advise
regarding the former's business. To constitute professional
employment, it is not essential that the client employed the
attorney professionally on any previous occasion.
 It is not necessary that any retainer be paid, promised, or
charged; neither is it material that the attorney consulted
did not afterward handle the case for which his service had
been sought.- Hadjula v. Atty. Madianda, A.C. No. 6711
July 3, 2007

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 Verbal agreement

 There is no gainsaying that a verbal engagement is

sufficient to create an attorney-client relationship. -
Urban Bank Inc. vs. Atty. Pena, A.C. No. 4863 [2001]

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 Court finds that no attorney-client
relationship exists
 The relationship of complainant and [counsel] is mainly
personal or business in nature, and that whatever legal
services may have been rendered or given to them by Atty.
Amorin for free were only incidental to said relationship.
Noteworthy also is the fact that complainant was not able to
specify any act or transaction in which [counsel] acted as her
or her husband's counsel. - Virgo v. Atty. Amorin A.C. No. 7861
[2009]
 There are instances, however, when the Court finds that no
attorney-client relationship exists between the parties, such
as when the relationship stemmed from a personal transaction
between them rather than the practice of law of respondent or
when the legal acts done were only incidental to their personal
transaction. - Virgo v. Atty. Amorin A.C. No. 7861 [2009]

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 Duty once a lawyer-client relationship
exist

 Canon 18 of the Code of Professional Responsibility, that

“a lawyer shall serve his client with competence and
diligence.”

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Non-payment of fees does not diminish a
lawyer’s duty

 Assuming the non-payment to be true, such failure should not

be a reason not to inform the client of an important
development, or worse, to withhold vital information from
her. - Somosot v. Atty. Lara A.C. No. 7024 [2009]

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 Remedy for deliberate refusal to pay

 It is but just and proper that if refusal to pay just

compensation ensues in any transaction, the proper remedy is
to institute an action before the proper court and such
actuation of the respondent herein did not constitute
deceit, malpractice or gross misconduct. - Urban Bank Inc.
vs. Atty. Pena, A.C. No. 4863 [2001]

 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.

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 Implied duty to finish the case

 Among the fundamental rules of ethics is the principle that

an attorney who undertakes an action impliedly stipulates to
carry it to its termination, that is, until the case becomes
final and executory. - Venterez, et. al. v. Atty. Cosme,
A.C. No. 7421 [2007]

 Among the fundamental rules of ethics is the principle that

an attorney who undertakes to conduct an action impliedly
stipulates to carry it to its conclusion.- Francisco v.
Atty. Portugal, A.C. No. 6155, March 14, 2006

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 Terminating the attorney-client
relation
 CLIENT: The rule in this jurisdiction is that a client has
the absolute right to terminate the attorney-client relation
at anytime with or without cause.

 ATTORNEY: The right of an attorney to withdraw or terminate

the relation other than for sufficient cause is, however,
considerably restricted. Xxx He is not at liberty to abandon
it without reasonable cause. A lawyer’s right to withdraw
from a case before its final adjudication arises only from
the client’s written consent or from a good cause. -
Francisco v. Atty. Portugal, A.C. No. 6155, March 14, 2006

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 CANON 22 - A LAWYER SHALL WITHDRAW HIS
SERVICES ONLY FOR GOOD CAUSE AND UPON NOTICE
APPROPRIATE IN THE CIRCUMSTANCES.
 Rule 22.01 - A lawyer may withdraw his services in any of the
following case:
(a) When the client pursues an illegal or immoral course of conduct in
connection with the matter he is handling; [see Rule 19.02]
(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 [see Rule
3.03]; and
(g) Other similar cases.

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 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.

 Rule 15.06. - A lawyer shall not state or imply that he is

able to influence any public official, tribunal or
legislative body.

 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.

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 Changing lawyer does not need the
approval of the Court
 [A client] may discharge his attorney at any time with or
without cause and thereafter employ another lawyer who may
then enter his appearance. Thus, it has been held that a
client is free to change his counsel in a pending case and
thereafter retain another lawyer to represent him. That
manner of changing a lawyer does not need the consent of the
lawyer to be dismissed. Nor does it require approval of the
court. - Atty. Jalandoni v. Atty. Villarosa, AC 5303, June
15, 2006

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 Termination of services without the
written consent of client
 A lawyer who desires to retire from an action without the written
consent of his client must file a petition for withdrawal in court.
He must serve a copy of his petition upon his client and the
adverse party - Atty. Jalandoni v. Atty. Villarosa, AC 5303, June
15, 2006

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 A lawyer must see to it that a new
lawyer is recorded before terminating
his services
 An attorney may only retire from a case either by written
consent of his client or by permission of the court after
due notice and hearing, in which event the attorney should
see to it that the name of the new lawyer is recorded in the
case. - Atty. Jalandoni v. Atty. Villarosa, AC 5303, June
15, 2006

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 Cessation of law practice is not a
“good cause” to withdraw
 Neither is the cessation of his law practice an excuse for
his failure to file the required brief. Even if it were
true that Atty. Briones has stopped practicing law, he still
could not ignore the directives coming from the Court. It
does not appear from the records of G.R. No. 130965 that
Atty. Briones has withdrawn his appearance. Unless he has
withdrawn his appearance in the case, the Court would still
consider him as counsel for the accused-appellant and he is
expected to comply with all its orders and directives. - In
Re: Atty. David Briones, A.C. No. 5486. August 15, 2001]

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 The only way to be relieved as counsel

 Thus, the only way to be relieved as counsel is to have

either the written conformity of his client or an order from
the court relieving him of the duties of counsel, in
accordance with Rule 138, Section 26 of the Rules of Court.
- Balatbat v. Atty. Arias, A.C. No. 1666, April 13, 2007

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Duty of lawyer once he is discharged as
counsel
 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
cooperative with his successor in the orderly transfer of
the matter, including all information necessary for the
proper handling of the matter.

 The discharged attorney must likewise see to it that the

name of the new counsel is properly recorded and the records
properly handed over. - Balatbat v. Atty. Arias, A.C. No.
1666 [2007]

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 A simple turnover of the records does
not end a lawyer’s duty
 Contrary to respondent’s contention, his professional
relations as a lawyer with his clients are not terminated by
the simple turnover of the records of the case to his
clients. - Venterez, et. al. v. Atty. Cosme, A.C. No. 7421
[2007]

 xxx and shall cooperative with his successor in the orderly

transfer of the matter, including all information necessary
for the proper handling of the matter. - Rule 22.02

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 Client refusal to give his consent is
still subject to Court’s discretion
 A lawyer may retire at any time from any action or special
proceeding with the written consent of his client filed in
court and with a copy thereof served upon the adverse party.
Should the client refuse to give his consent, the lawyer
must file an application with the court. The court, on
notice to the client and adverse party, shall determine
whether the lawyer ought to be allowed to retire. The
application for withdrawal must be based on a good cause. -
Venterez, et. al. v. Atty. Cosme, A.C. No. 7421 [2007]

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 Consent to withdraw must be given by
the litigant
 Respondent’s defense completely crumbles in face of the
fact that Salvador Ramirez is not even a party in Civil Case
No. 981 and, hence, had no authority to withdraw the records
of the said case from respondent or to terminate the
latter’s services. - Venterez, et. al. v. Atty. Cosme, A.C.
No. 7421 [2007]

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 Pendency of petition for withdrawal
does not relieve lawyer of his duty
 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 clients, as well as
by the court, to do what the interests of his clients
require. He must still appear before the court to protect
the interest of his clients by availing himself of the
proper remedy, for the attorney-client relations are not
terminated formally until there is a withdrawal of record. -
Venterez, et. al. v. Atty. Cosme, A.C. No. 7421 [2007]

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 A valid cause to withdraw must still be
subject to formalities of withdrawing as
counsel

 Without a proper revocation of his authority and withdrawal

as counsel, respondent remains counsel of record for the
complainants in Civil Case No. 981; and whether he has a
valid cause to withdraw from the case, he cannot immediately
do so and leave his clients without representation. -
Venterez, et. al. v. Atty. Cosme, A.C. No. 7421 [2007]

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 Verbal substitution of counsel not
allowed
 A verbal substitution of counsel, albeit impliedly granted
by respondent judge, contravenes Section 26 of Rule 138 of
the Rules of Court which prescribes the requirements for
change of attorneys. Said provision requires that the
written consent of the client should be filed in court and
the adverse party should be given written notice of the
substitution. As correctly pointed out by the OCA, if her
intention was to obviate delay, then she should have ordered
the counsel of record, Atty. Nueva, who was present during
the hearing, to file the required comment or opposition. -
Requirme, Jr. v. Judge Yuipco, A.M. No. RTJ-98-1427.
November 27, 2000

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 Death of a partner

 Petitioner's counsel was the law firm of BAIZAS, ALBERTO &

ASSOCIATES and not merely Atty. Crispin Baizas. Hence, the
death of the latter did not extinguish the lawyer-client
relationship between said firm and petitioner.
 Upon receipt of the notice to file Brief, the law firm
should have re-assigned the case to another associate or, it
could have withdrawn as counsel in the manner provided by
the Rules of Court so that the petitioner could contract the
services of a new lawyer. - B.R. Sebastian Enterprises, Inc.
v. CA, G.R. No. L-41862 [1992]

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 Grounds to withdraw from a case before
its final adjudication
 A lawyer’s right to withdraw from a case before its final
adjudication arises only from the client’s written consent
or from a good cause. - Francisco v. Atty. Portugal, A.C.
No. 6155 [2006]

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 Written contract is not essential in
establishing lawyer-client relationship

 A written contract is not an essential element in the

employment of an attorney; the contract may be express or
implied. - Francisco v. Atty. Portugal, A.C. No. 6155 [2006]

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Perceived insufficiency of remuneration
not a ground to diminish professional
zeal

 Hence, even if respondent felt under-compensated in the case

he undertook to defend, his obligation embodied in the
Lawyer’s Oath and the Code of Professional Responsibility
still remains unwavering. The zeal and the degree of fervor
in handling the case should neither diminish nor cease just
because of his perceived insufficiency of remuneration. -
Francisco v. Atty. Portugal, A.C. No. 6155 [2006]

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 Close personal relationship will not
bar a lawyer-client relationship

 Likewise, a lawyer-client relationship exists

notwithstanding the close personal relationship between the
lawyer and the complainant or the non-payment of the
former's fees. - Hadjula v. Atty. Madianda, A.C. No. 6711
July 3, 2007

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 Heavy workload

 Standing alone, heavy workload is not sufficient reason for

the withdrawal of her services. - Ceniza v. Atty. Rubia,
A.C. No. 6166 [2009]

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 Lost of confidence

 Respondent's withdrawal was made on the ground that "there

no longer exist[ed] the xxx confidence" between them and
that there had been "serious differences between them
relating to the manner of private prosecution.”- Orcino v.
Atty. Gaspar, A.C. No. 3773 September 24, 1997

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 “Hurt feelings” is not a valid ground to
automatically withdraw
 Complainant's words and actions may have hurt respondent's
feelings considering the work he had put into the case. But
her words were uttered in a burst of passion. And even at
that moment, complainant did not expressly terminate
respondent's services. She made this clear when she refused
to sign his "Motion to Withdraw as Counsel.“ - Orcino v.
Atty. Gaspar, A.C. No. 3773 September 24, 1997

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Withdrawal must be granted by the court

 Assuming, nevertheless, that respondent was justified in

terminating his services, he, however, cannot just do so and
leave complainant in the cold unprotected. 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. Atty. Gaspar, A.C. No. 3773 September 24,
1997

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 Lawyer’s responsibility

 CANON 18 - A LAWYER SHALL SERVE HIS CLIENT WITH COMPETENCE

AND DILIGENCE.


 x x x x


 Rule 18.03 - A lawyer shall not neglect a legal

matter entrusted to him and his negligence in connection
therewith shall render him liable.


 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.

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 Client should not file the Notice to
Withdraw
 Certainly, respondent ought to know that he was the one who
should have filed the Notice to Withdraw and not the
accused. - Francisco v. Atty. Portugal, A.C. No. 6155 [2006]

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 Having an additional lawyer did not
necessarily mean conformity
 The appearance of Atty. Alminaza in fact was not even to
substitute for respondent but to act as additional counsel.
Mrs. Jalandoni’s conformity to having an additional lawyer
did not necessarily mean conformity to respondent’s desire
to withdraw as counsel. Respondent’s speculations on the
professional relationship of Atty. Alminaza and Mrs.
Jalandoni find no support in the records of this case.
 That Mrs. Jalandoni continued with Atty. Alminaza’s
professional engagement on her behalf despite respondent’s
withdrawal did not absolve the latter of the consequences of
his unprofessional conduct. - Atty. Jalandoni v. Atty.
Villarosa, A.C. No. 5303 [2006]

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Thank you for your
attention!!

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