CHAPTER1 theprovisionsofthisRule,andwhoisingoodandregularstanding,
Requirements before admission to the bar or for continuous
practiceoflaw,etc.
Whatispracticeoflaw?
TheCourtruledthatthetermpracticeoflawimpliescustomarily
or habitually holding oneself out to the public as a lawyer for
compensationasasourceoflivelihoodorinconsiderationofhis
services.TheCourtfurtherruledthatholdingonesselfoutasa
lawyermaybeshownbyactsindicativeofthatpurpose,suchas
identifying oneself as attorney, appearing in court in
representationofaclient,orassociatingoneselfasapartnerof
alawofficeforthegeneralpracticeoflaw.Atty.NoeLacsaman
v.Atty.Busmente,A.C.No.7269[2011]
Anyactivity,inandoutofcourt,thatrequirestheapplicationof
law, legal procedure, knowledge, training and experience.
Moreover, we ruled that to engage in the practice of law is to
performthoseactswhicharecharacteristicsoftheprofession;
topracticelawisto givenoticeorrenderanykindofservice,
whichdeviceorservicerequirestheuseinanydegreeoflegal
knowledgeorskill.QueryofAtty.SilverioBuffe,A.M.No.086
352RTC[2009]
The practice oflaw is not limited to the conductof cases or
litigationincourt;itembracesthepreparationofpleadingsand
otherpapersincidenttoactionsandspecialproceedings,the
managementofsuchactionsandproceedingsonbehalfofclients
beforejudgesandcourts,andinaddition,conveyancing.
Ingeneral,alladvicetoclients,andallactiontakenforthemin
mattersconnectedwiththelawxxx.Aguirrev.Rana,B.M.No.
1036.June10,2003
Whomaypracticelaw?
Section1,Rule138oftheRulesofCourtprovides:
Whomaypracticelaw.Anypersonheretofore dulyadmittedasa
memberofthebar,orthereafteradmittedassuchinaccordancewith
isentitledtopracticelaw.
Passingthebarexamisnotenough
Abarcandidatedoesnotacquiretherighttopracticelaw simply
by passing the bar examinations. The practice of law is a
privilegethatcanbewithheldevenfromonewhohaspassedthe
barexaminations,ifthepersonseekingadmissionhadpracticed
lawwithoutalicense.
True,respondentherepassedthe2000BarExaminationsandtook
the lawyers oath. However, it is the signing in the Roll of
Attorneysthatfinallymakesoneafullfledgedlawyer.Thefact
thatrespondentpassedthebarexaminationsisimmaterial.Passing
thebarisnottheonlyqualificationtobecomeanattorneyatlaw.
Respondentshouldknowthattwoessentialrequisitesforbecoming
alawyerstillhadtobeperformed,namely:hislawyersoathtobe
administered by this Court and his signature in the Roll of
Attorneys.Aguirrev.Rana,B.M.No.1036.June10,2003
Signing of the Lawyers Oath is not equivalent to taking the
oath
RespondentAbadshouldknowthatthecircumstances whichhe
hasnarrateddonotconstitutehisadmissiontothePhilippineBar
andtherighttopracticelawthereafter.Heshouldknowthattwo
essential requisites for becoming a lawyer still had to be
performed,namely:hislawyer'soathtobeadministeredbythis
CourtandhissignatureintheRollofAttorneys.(Rule138,Secs.
17 and 19, Rules of Court.) Re: Elmo Abad, A. M. No. 139
[1983]
Whetherornotalawyerisentitledtoexemptionfrompaymentof
hisIBPduesduringthetimethathewasinactiveinthepractice
oflaw
Thus, payment of dues is a necessary consequence of
membershipintheIBP,ofwhichnooneisexempt.Thismeans
 thatthecompulsorynatureofpaymentofduessubsistsforaslong
asonesmembershipintheIBPremainsregardlessofthelack
ofpracticeof,orthetypeofpractice,thememberisengaged
in.
Thereisnothinginthelaworruleswhichallowsexemptionfrom
paymentofmembershipdues.Atmost,ascorrectlyobservedby
theIBP,hecouldhaveinformedtheSecretaryoftheIntegrated
Barofhisintentiontostayabroadbeforeheleft.Insuchcase,his
membership in the IBP could have been terminated and his
obligationtopayduescouldhavebeendiscontinued. Letterof
Atty.CecilioY.ArevaloJr.B.M.1370May9,2005
IsIBPmembershipfeeaformoftax?
Forthecourttoprescribeduestobepaidbythemembersdoesnot
meanthattheCourtisattemptingtolevyatax.
A membership fee in the Bar association is an exaction for
regulation, while tax purpose of a tax is a revenue. If the
judiciaryhasinherentpowertoregulatetheBar,itfollowsthatas
anincidenttoregulation,itmayimposeamembershipfeeforthat
purpose. It would not be possible to put on an integrated Bar
programwithoutmeanstodefraytheexpenses.Thedoctrineof
implied powers necessarily carries with it the power to impose
suchexaction.LetterofAtty.CecilioY.ArevaloJr.B.M.1370
May9,2005
There is no provision under the CPR which prohibits the
unauthorizedpracticeoflaw
CANON9Alawyershallnot,directlyorindirectly,assistinthe
unauthorizedpracticeoflaw.
WhileareadingofCanon9appearstomerely prohibitlawyers
from assisting in the unauthorized practice of law, the
unauthorized practice of law by the lawyer himself is
subsumedunderthisprovision,becauseattheheartofCanon9
isthelawyer'sdutytopreventtheunauthorizedpracticeoflaw.
PetitiontosignintheRollofAttorneys,Medado,B.M.No.2540
[2013]
Examplesofunauthorizedpracticeoflaw
Inthecaseswherewefoundapartyliablefortheunauthorized
practiceoflaw,thepartywasguiltyofsomeovertactlike:
1. signingcourtpleadingsonbehalfofhisclient;
2. appearingbeforecourthearingsasanattorney;
3. manifestingbeforethecourtthathewillpracticelawdespite
beingpreviouslydeniedadmissiontothebar;or
4. deliberatelyattemptingtopracticelawand
5. holdingouthimselfasanattorneythroughcircularswithfull
knowledgethatheisnotlicensedtodoso.
Normatan&Pagayokanv.Balajadia,G.R.No.1695172006
Prelawrequirements
Rule138Sec.6.PreLaw.Noapplicantforadmissiontothebar
examinationshallbeadmittedunlesshepresentsacertificatethat
hehassatisfiedtheSecretaryofEducationthat,beforehebegan
thestudyoflaw,hehadpursuedandsatisfactorilycompletedin
an authorized andrecognized university orcollege,requiring
foradmissiontheretothecompletionofafouryearhighschool
course, the course of study prescribed therein for a bachelor's
degreeinartsorscienceswithanyofthefollowingsubjectsas
major orfield ofconcentration: political science,logic, english,
spanish,historyandeconomics.
ViolationofRule138section6
[b]y utilizing the school records of his cousin and namesake,
JuanM.Publicowhen,inactualfact,petitionerhadnotcompleted
GradeVIofhiselementaryschooling,muchless,FirstandSecond
YearHighSchool.
Foralltheforegoing,wefindandsoholdthatrespondentfalsified
hisschoolrecords,bymakingitappearthathehadfinishedor
completed GradeVIelementaryand Firstand Second Year
 highschool,whenintruthandinfacthehadnot,therebyviolating
the provisions of Sections 5 and 6, Rule 127 of the Rules of
Court,whichrequirecompletionbyabarexamineeorcandidateof
theprescribedcoursesinelementary,high,prelawandlawschool,
prior to his admission to the practice of law. In re: Juan
Publico,Petition for Reinstatement in the Roll of Attorneys
February20,1981
Applicant should be ready to present evidence of good moral
character
Whenapplicantsseekadmissiontothebar,theyhaveplacedtheir
character atissue. Therefore,theapplicant bearstheburdenof
producinginformation provinggoodmoralcharacter. Mitchell
Simon,NickSmithandNicoleNegowetti
Grosslyimmoralact
Agrosslyimmoral actis onethat issocorruptandfalseas to
constituteacriminalactorsounprincipledordisgracefulastobe
reprehensibletoahighdegree.Itisawillful,flagrant,orshameless
actwhichshowsamoralindifferencetotheopinionofrespectable
membersofthecommunity.Figueroav.Barranco,Jr.SBCCase
No.5191997
Isbreachofpromisetomarrygrossimmorality?
Respondentwaspreventedfromtakingthelawyersoathin1971
because of the charges of gross immorality made by
complainant.Torecapitulate,respondentboreanillegitimatechild
withhissweetheart,PatriciaFigueroa,whoalsoclaimsthathedid
not fulfill his promise to marry her after he passes the bar
examinations.
We find that these facts do not constitute gross immorality
warrantingthepermanentexclusionofrespondentfromthelegal
profession.His engaging in premarital sexual relations with
complainantandpromisestomarrysuggestsadoubtfulmoral
characteronhispartbutthesamedoesnotconstitutegrossly
immoralconduct.TheCourthasheldthattojustifysuspensionor
disbarmenttheactcomplainedofmustnotonlybeimmoral,but
grosslyimmoral. Figueroav.Barranco,Jr.SBCCaseNo.519
1997
Goodmoralcharacterv.Rehabilitation
Whenanapplicantforadmissiontothebarhascommittedfirst
degreemurder, acrimethatdemonstratesanextremelackof
goodmoralcharacter,hemustmakeanextraordinaryshowingof
presentgoodmoralcharactertoestablishthatheorsheisqualified
tobeadmittedtothepracticeoflawxxx.
To show rehabilitation, [one] must show that he has accepted
responsibilityforhiscriminalconduct.
Rehabilitationisanecessary,butnotsufficient,ingredientofgood
moral character of bar applicant who had been convicted of a
seriousfelony;applicantmustestablishhis currentgoodmoral
character, independent of and in addition to, evidence of
rehabilitation.Inre:JamesJosephHamm123P.3d652[2005]
Rehabilitationisnotenough
Evenassumingthat[one]hasestablishedrehabilitation,showing
rehabilitationfromcriminalconductdoesnot,initself,establish
goodmoralcharacter.
Rehabilitationisanecessary,butnotsufficient,ingredientofgood
moral character. Anapplicant mustestablish his current good
moral character, independent of and in addition to, evidence of
rehabilitation.
Even assuming that he has established rehabilitation, showing
rehabilitation from criminal conduct does not, in itself,
establishgoodmoralcharacter.Inre:JamesJosephHamm123
P.3d652[2005]
Whatisanuprightcharacter?
'Upright character' is something more than an absence of bad
character.Itmeansthathe[anapplicantforadmission]musthave
conductedhimselfasamanofuprightcharacterordinarilywould,
should,ordoes.Suchcharacterexpressesitselfnotinnegatives
 norinfollowingthelineofleastresistance,butquiteofteninthe
willtodotheunpleasantthingifitisright,andtheresolvenotto
dothepleasantthingifitiswrong.Inre:JamesJosephHamm
123P.3d652[2005]
PastandPresentmoralcharacter
We also agree with Hamm that, under the Rule applicable to
Hamm'sapplication, ourconcernmustbewiththeapplicant's
presentmoralcharacter. InGreenberg,weexplainedthat"itis
[the applicant's] moral character as of now with which we are
concerned." xxx Past misconduct, however, is not irrelevant.
Rather,thisCourtmustdeterminewhatpastbadactsrevealabout
anapplicant'scurrentcharacter.Inre:JamesJosephHamm123
P.3d652[2005]
Effectofpriorcriminalconviction
Although a prior conviction is not conclusive of a lack of
present good moral character, ... it adds to his burden of
establishing present good character by requiring convincing
proofofhisfullandcompleterehabilitation.Inre:JamesJoseph
Hamm123P.3d652[2005]
Canalawyerdetaineepracticelaw?
As a matter of law, when a person indicted for an offense is
arrested,heisdeemedplacedunderthecustodyofthelaw.Heis
placedinactualrestraintoflibertyinjailsothathemaybebound
toanswerforthecommissionoftheoffense.Hemustbedetained
injailduringthependencyofthecaseagainsthim,unlessheis
authorizedbythecourttobereleasedonbailoronrecognizance.
Letitbestressedthatallprisonerswhetherunderpreventive
detention or serving final sentence can not practice their
professionnorengageinanybusinessoroccupation,orhold
office, elective or appointive, while in detention. This is a
necessaryconsequenceofarrestanddetention. PPv.Hon.
MacedaandJavellanaG.R.No.8959196January24,2000
WhatistheeffectofnonpaymentofIBPdues?
Rule 139A, Section 10 which provides that "default in the
paymentofannualduesforsixmonthsshallwarrantsuspension
ofmembershipintheIntegratedBar,anddefaultinsuchpayment
foroneyearshallbeagroundfortheremovalofthenameofthe
delinquentmemberfromtheRollofAttorneys.Santos,Jr.V.
Atty.LlamasA.CNo.4749[2000]
Misrepresentingtothepublicandthecourtsthathehadpaidhis
IBPdues
By indicating "IBPRizal 259060" in his pleadings and thereby
misrepresentingtothepublicandthecourtsthathehadpaid
hisIBPduestotheRizalChapter,respondentisguiltyofviolating
theCodeofProfessionalResponsibilitywhichprovides:
Rule 1.01 A lawyer shall not engage in unlawful, dishonest,
immoralordeceitfulconduct.
CANON 7A LAWYERSHALL ATALLTIMES UPHOLD
THE INTEGRITY AND DIGNITY OF THE LEGAL
PROFESSION, AND SUPPORT THE ACTIVITIES OF THE
INTEGRATEDBAR.
CANON10ALAWYEROWESCANDOR,FAIRNESSAND
GOODFAITHTOTHECOURT.
Rule10.01Alawyershallnotdoanyfalsehood,norconsentto
thedoingofanycourt;norshallhemisleadorallowthecourttobe
misledbyanyartifice.Santos,Jr.V.Atty.LlamasA.CNo.4749
[2000]
IsaseniorcitizenlawyerexemptedfrompaymentofITRalso
exemptedfrompaymentofIBPdues?
While it is true that R.A. No. 7432, 4 grants senior citizens
"exemption from the payment of individual income taxes:
provided, that their annual taxable income does not exceed the
poverty level as determined by the National Economic and
Development Authority (NEDA) for that year," the exemption
 doesnotincludepaymentofmembershiporassociationdues.
Santos,Jr.V.Atty.LlamasA.CNo.4749[2000]
Intentisnecessarytobeguiltyofunauthorizedpracticeoflaw
Inseveralcases,wehaveruledthattheunauthorizedpracticeof
law byassumingtobeanattorneyandactingassuchwithout
authority constitutes indirect contempt which is punishable by
fineorimprisonmentorboth. Theliabilityfortheunauthorized
practiceoflawunderSection3(e),Rule71oftheRulesofCourtis
in thenatureofcriminal contempt and theacts arepunished
because they are an affront to the dignity and authority of the
court, and obstruct the orderly administration of justice. In
determiningliabilityforcriminalcontempt,wellsettledistherule
thatintentisanecessaryelement,andnoonecanbepunished
unlesstheevidencemakesitclearthatheintendedtocommit
it.Normatan&Pagayokanv.Balajadia,G.R.No.1695172006
DoesgivingupPhilippinecitizenshipautomaticallyresultintolost
ofmembershipinthePhilippinebar?
TheConstitutionprovidesthatthepracticeofallprofessionsinthe
Philippines shall be limited to Filipino citizens save in cases
prescribedbylaw.SinceFilipinocitizenshipisarequirementfor
admissiontothebar,lossthereofterminatesmembershipinthe
Philippinebar and,consequently,theprivilegetoengageinthe
practiceoflaw.Inotherwords,the lossofFilipinocitizenship
ipso jure terminates the privilege to practice law in the
Philippines.Thepracticeoflawisaprivilegedeniedtoforeigners.
Petitionforleavetoresumepracticeoflaw,DacanayB.M.No.
1678December17,2007
MayalawyerwhohaslosthisFilipinocitizenshipstillpracticelaw
inthePhilippines?
TheConstitutionprovidesthatthepracticeofallprofessionsinthe
Philippines shall be limited to Filipino citizens save in cases
prescribedbylaw.SinceFilipinocitizenshipisarequirementfor
admissiontothebar,lossthereofterminates membershipinthe
Philippine barand,consequently,theprivilege toengageinthe
practiceoflaw.Inotherwords,thelossofFilipinocitizenshipipso
jureterminatestheprivilegetopracticelawinthePhilippines.The
practiceoflawisaprivilegedeniedtoforeigners. Petitionfor
leavetoresumepracticeoflaw,DacanayB.M.No.1678December
17,2007
EffectofreacquisitionofFilipinocitizenship
AFilipinolawyerwhobecomesacitizenofanothercountryand
laterreacquireshisPhilippinecitizenshipunderR.A.No.9225,
remains to be a member of the Philippine Bar. Petition to
reacquire the privilege to practice law in the Philippines,
Muneses,B.M.2112[2012]
Requirements before one can resume practice of law after
reacquiringFilipinocitizenship
Beforealawyerwhoreacquires Filipinocitizenship pursuantto
RA9225canresumehislawpractice,hemustfirstsecurefrom
thisCourttheauthoritytodoso,conditionedon:
a) theupdatingandpaymentinfulloftheannualmembershipdues
intheIBP;
b) thepaymentofprofessionaltax;
c) the completion of at least 36 credit hours of mandatory
continuinglegaleducation;thisisspeciallysignificanttorefresh
theapplicant/petitionersknowledgeofPhilippinelawsandupdate
himoflegaldevelopmentsand
d) theretakingofthelawyersoathwhichwillnotonlyremindhim
ofhisdutiesandresponsibilitiesasalawyerandasanofficerof
theCourt,butalsorenewhispledgetomaintainallegiancetothe
RepublicofthePhilippines.Petitionforleavetoresumepractice
oflaw,DacanayB.M.No.1678December17,2007
WhatisthepurposeforrequiringtheretakingofLawyersOath?
 The retakingofthelawyersoath whichwillnotonlyremind
himofhisdutiesandresponsibilitiesasalawyerandasanofficer
oftheCourt,butalsorenewhispledgetomaintainallegianceto
theRepublicofthePhilippines.
CitizenshiprequirementinordertopracticelawinthePhilippines
Constitution Art. 12 Section 14. xxx. The practice of all
professionsinthePhilippinesshallbelimitedtoFilipinocitizens,
saveincasesprescribedbylaw.
Requirementsforallapplicantsforadmissiontothebar
Section2,Rule138(AttorneysandAdmissiontoBar)oftheRules
ofCourt:
Requirements for all applicants for admission to the bar.
Everyapplicantforadmissionasamemberofthebarmustbe
acitizenofthePhilippines,atleasttwentyoneyearsofage,
ofgoodmoralcharacter,andaresidentofthePhilippines;
and must produce before the Supreme Court satisfactory
evidence of good moral character, and that no charges
againsthim,involvingmoralturpitude,havebeenfiledorare
pendinginanycourtinthePhilippines.
Continuingrequirementstopracticelaw
The second requisite for the practice of law membership in
good standing is a continuing requirement. This means
continued membership and, concomitantly, payment of annual
membershipduesintheIBP;paymentoftheannualprofessional
tax; compliance with the mandatory continuing legal education
requirement;faithfulobservanceoftherulesandethicsofthelegal
profession and being continually subject to judicial disciplinary
control. Petition for leave to resume practice of law,Dacanay
B.M.No.1678December17,2007
Phasesofadmissiontothebar
Moreover,admissiontothebarinvolves variousphases suchas
furnishing satisfactory proof of educational, moral and other
qualifications;passingthebarexaminations;takingthelawyers
oathandsigningtherollofattorneysandreceivingfromtheclerk
of court of this Court a certificate of the license to practice.
Petition for leave to resumepractice of law,DacanayB.M.No.
1678December17,2007
Canasuccessfulexamineetakehisoathbeforeanypersonallowed
bylawtoadministeranoath?
Rule138Sec.17.Admissionandoathofsuccessfulapplicants.
Anapplicantwhohaspassedtherequiredexamination,orhasbeen
otherwisefoundtobeentitledtoadmissiontothebar,shalltake
andsubscribebeforetheSupremeCourtthecorrespondingoath
ofoffice.
Inasmuchastheoathaslawyerisaprerequisitetothepracticeof
lawandmaybetakenonly,beforetheSupremeCourt,bythose
authorizedbythelattertoengageinsuchpracticexxx.PPv.De
Luna,et.al.G.R.Nos.L1023648.January31,1958
Section2.Section41oftheAdministrativeCodeof1987ishereby
amendedtoreadasfollows
Sec. 41. Officers Authorized to Administer Oath. The following
officershavegeneralauthoritytoadministeroaths:
President;
VicePresident;
MembersandSecretariesofbothHousesoftheCongress;
MembersoftheJudiciary;
SecretariesofDepartments;
provincialgovernorsandlieutenantgovernors;
citymayors;
municipalmayors;
bureaudirectors;
regionaldirectors;
clerksofcourts;
registrarsofdeeds;
othercivilianofficersinthepublicserviceofthegovernment
of the Philippines whose appointments are vested in the
 PresidentandaresubjecttoconfirmationbytheCommission
onAppointments;
allotherconstitutionalofficers;
andnotariespublic."
DutiesofAttorneys
Rule138section20Itisthedutyofanattorney:
(a)TomaintainallegiancetotheRepublicofthePhilippinesandto
supporttheConstitutionandobeythelawsofthePhilippines;
(b)Toobserveandmaintaintherespectduetothecourtsofjusticeand
judicialofficers;
(c)Tocounselormaintainsuchactionsorproceedingsonlyasappear
tohimtobejust,andsuchdefensesonlyashebelievestobehonestly
debatableunderthelaw;
(d)Toemploy,forthepurposeofmaintainingthecausesconfidedto
him,suchmeansonlyasareconsistentwithtruthandhonor,andnever
seektomisleadthejudgeoranyjudicialofficerbyanartificeorfalse
statementoffactorlaw;
(e)Tomaintaininviolatetheconfidence,andateveryperiltohimself,
topreservethesecretsofhisclient,andtoacceptnocompensationin
connection with his client's business except from him or with his
knowledgeandapproval;
(f)Toabstainfromalloffensivepersonalityandtoadvancenofact
prejudicial to the honor or reputation of a party or witness, unless
requiredbythejusticeofthecausewithwhichheischarged;
(g)Nottoencourageeitherthecommencementorthecontinuanceof
anactionorproceeding,ordelayanyman'scause,fromanycorrupt
motiveorinterest;
(h)Nevertoreject,foranyconsiderationpersonaltohimself,thecause
ofthedefenselessoroppressed;
(i) In the defense of a person accused of crime, by all fair and
honorablemeans,regardlessofhispersonalopinionastotheguiltof
theaccused,topresenteverydefensethatthelawpermits,totheend
thatnopersonmaybedeprivedoflifeorliberty,butbydueprocessof
law.
Whatisalawyersproofofauthoritytopracticeoflaw?
Rule138Sec.18.Certificate.TheSupremeCourtshallthereupon
admittheapplicantasamemberofthebarforallthecourtsofthe
Philippines,andshalldirectanordertobeenteredtothateffect
uponitsrecords,andthatacertificateofsuchrecordbegivento
himbytheclerkofcourt,whichcertificateshallbehisauthority
topractice.
FailuretosignintheRollofAttorneys
PetitionerdidnotsignintheRollofAttorneysfor32years.What
hehadsignedattheentranceofthePICCwasprobablyjustan
attendancerecord.
AsMedadoisnotyetafullfledgedlawyer,wecannotsuspend
himfromthepracticeoflaw.However,weseeitfittoimpose
uponhimapenaltyakintosuspensionbyallowinghimtosignin
theRollofAttorneysone(1)yearafterreceiptofthisResolution.
Forhistransgressionoftheprohibitionagainsttheunauthorized
practiceoflaw,welikewiseseeitfittofinehimintheamountof
P32,000.PetitiontosignintheRollofAttorneys,Medado,B.M.
No.2540[2013]
CertificateofMembership&CertificateofMembershipinGood
StandinginIBP
Certificate of Membership in the Integrated Bar of the
Philippines as well as a Certificate of Membership in Good
Standing withtheQuezonCityChapteroftheIntegratedBarof
thePhilippinesdonotconstitutehisadmissiontothePhilippine
Barandtherighttopracticelawthereafter.Re:ElmoAbad,
A.M.No.139[1983]
Requirementsafterflunkingthebar3times
Sec. 16. Failing candidates to take review course. Candidates
who have failed the bar examinations for three times shall be
disqualifiedfromtakinganotherexaminationunlesstheyshowto
thesatisfactionofthecourtthattheyhaveenrolledinandpassed
regularfourthyearreviewclassesaswellasattendedaprebar
reviewcourseinarecognizedlawschool.

Enrollment and completion of prebar review course is an
additionalrequirementunderRule138oftheRulesofCourtfor
thosewhofailedthebarexaminationsforthree(3)ormoretimes.
Inre:Purisima,B.M.Nos.979and986[2002]
The professors of the individual review subjects attended by the
candidatesunderthisruleshallcertifyunderoaththatthecandidates
haveregularlyattendedclassesandpassedthesubjectsunderthesame
conditionsasordinarystudentsandtheratingsobtainedbytheminthe
particularsubject.
Authoritytoappearinbehalfofaclient
Sec. 21. Authority of attorney to appear. An attorney is
presumedtobeproperlyauthorizedtorepresent anycausein
which he appears, and no written power of attorney is
requiredtoauthorizehimtoappearincourtforhisclient,but
the presiding judge may, on motion of either party and on
reasonablegroundsthereforbeingshown, requireanyattorney
whoassumestherighttoappearinacasetoproduceorprove
the authority under which he appears, and to disclose,
whenever pertinent to any issue, the name of the person who
employed him, and may thereupon make such order as justice
requires. An attorney wilfully appearing in court for a person
withoutbeingemployed,unlessbyleaveofthecourt, maybe
punished for contempt as an officer of the court who has
misbehavedinhisofficialtransactions.
ACounselorisnotanAttorney
Thetitleof"attorney"isreservedtothosewho,havingobtained
thenecessarydegreeinthestudyoflawandsuccessfullytakenthe
BarExaminations,havebeenadmittedtotheIntegratedBarofthe
Philippinesandremainmembersthereofingoodstanding;anditis
theyonlywhoareauthorizedtopracticelawinthisjurisdiction.
Hisdisinclinationtousethetitleof"counselor"doesnotwarrant
hisuseofthetitleofattorney.Alawiv.Alauya,A.M.SDC972
P.February24,1997
Prohibitedactsofanexaminee
Rule138Sec.12.Committeeofexaminers.Examinationsshall
beconductedbyacommitteeofbarexaminerstobeappointedby
theSupremeCourt.ThiscommitteeshallbecomposedofaJustice
oftheSupremeCourt,whoshallactaschairman,andwhoshallbe
designatedbythecourttoserveforoneyear,andeightmembersof
thebarofthePhilippines,whoshallholdofficeforaperiodofone
year. The names of the members of this committee shall be
publishedineachvolumeoftheofficialreports.
Rule 138 Sec. 13. Disciplinary measures. No candidate shall
endeavor to influence any member of the committee, and
duringexaminationthecandidatesshallnotcommunicatewith
each other nor shalltheygiveorreceive anyassistance. The
candidate whoviolates thisprovision,oranyotherprovisionof
thisrule,shallbebarredfromtheexamination,andthesameto
count as a failure against him, and further disciplinary action,
including permanent disqualification, may be taken in the
discretionofthecourt.
Cananindefinitesuspensionfromthepracticeoflawprohibita
lawyerfromfilingacitizenortaxpayersuit?
Petitioner AlanF.Paguia(petitioner), ascitizen andtaxpayer,
filed this original action for the writ of certiorari to invalidate
President Gloria MacapagalArroyos nomination of respondent
formerChiefJusticeHilarioG.Davide,Jr.(respondentDavide)as
PermanentRepresentativetotheUnitedNations(UN)forviolation
ofSection23ofRepublicActNo.7157(RA7157),thePhilippine
ForeignServiceActof1991.
IntheirseparateComments,respondentDavide,theOfficeofthe
President,andtheSecretaryofForeignAffairs(respondents)raise
threshold issues against the petition. First, they question
 petitionersstandingtobringthissuitbecauseofhisindefinite filed, mustbesignedbythesupervisingattorney forandin
suspensionfromthepracticeoflaw. behalfofthelegalclinic.

An incapacity to bring legal actions peculiar to petitioner also Thephrase"directsupervisionandcontrol"requiresnoless

obtains.Petitionerssuspensionfromthepracticeoflawbarshim thanthephysicalpresenceofthesupervisinglawyerduringthe
fromperforminganyactivity,inoroutofcourt,whichrequires hearing.
theapplicationoflaw,legalprocedure,knowledge,trainingand
experience. Certainly, preparing a petition raising carefully Sec.3.Privilegedcommunications.TheRulessafeguarding
craftedargumentsonequalprotectiongroundsandemploying privileged communications between attorneyand client shall
highlylegalisticrulesofstatutoryconstructiontoparseSection apply tosimilarcommunicationsmadetoorreceivedbythe
23ofRA7157fallswithintheproscribedconduct. Paguiav. lawstudent,actingforthelegalclinic.
OfficeofthePresident,G.R.No.176278[2010]
Sec. 4. Standards of conduct and supervision. The law
CHAPTER2
student shall comply with the standards of professional
LawStudentRule
conductgoverningmembersoftheBar.Failureofanattorney
RULE138A
toprovideadequatesupervisionofstudentpracticemaybea
LAWSTUDENTPRACTICERULE
groundfordisciplinaryaction.
SCCircularNo.19,prom.Dec.19,1986
Rule138(RRC)Sec.34
SECTION1.ConditionsforStudentPractice.Alawstudent
Rule138(RRC)Sec.34.Bywhomlitigationconducted.Inthe
who has successfully completed his 3rd year of the regular
court of a justice of the peace a party may conduct his
fouryear prescribed law curriculum and is enrolled in a
litigation in person, with the aid of an agent or friend
recognized law school's clinical legal education program
appointed by him for that purpose, or with the aid of an
approved by the Supreme Court, may appear without
attorney.
compensation in any civil, criminal or administrative case
beforeanytrialcourt,tribunal,boardorofficer,topresentany
Inanyothercourt,aparty mayconducthislitigationpersonally
indigentclientsacceptedbythelegalclinicofthelawschool.
or by aid of an attorney, and his appearance must be either
personalorbyadulyauthorizedmemberofthebar.
Sec. 2. Appearance. The appearance of the law student
authorizedbythisrule,shallbeunderthe directsupervision
Rule138section34doesnotapplyincasesbeforetheRTC
and control of a member of the Integrated Bar of the
The Rules are clear. In municipal courts, the litigant may be
Philippines duly accredited by the law school. Any and all assisted by a friend, agent, or an attorney. However, in cases
pleadings,motions,briefs,memorandaorotherpaperstobe beforetheregionaltrialcourt,thelitigantmustbeaidedbya
dulyauthorized memberofthebar. Theruleinvokedbythe
 Torcinosappliesonlytocasesfiledwiththeregionaltrialcourt
andnottocasesbeforeamunicipalcourt. Bulacanv.Torcino,
G.R.No.L44388January30,1985
Butfortheprotectionofthepartiesandintheinterestofjustice,
therequirementforappearancesinregionaltrialcourtsand
highercourtsismorestringent.Bulacanv.Torcino,G.R.No.
L44388January30,1985
Reconcilingthe2rules
ThereisreallynoproblemastotheapplicationofSection34of
Rule138andRule138A.Intheformer,theappearanceofanon
lawyer, as an agent or friend of a party litigant, is expressly
allowed,whilethelatterruleprovidesforconditionswhenalaw
student,notasanagentorafriendofapartylitigant,mayappear
beforethecourts.Cruzv.MinaGRno.154207April27,2007
ThephraseInthecourtofajusticeofthepeacemeans:
ThephraseInthecourtofajusticeofthepeaceinBarMatter
No. 730 is subsequently changed to In the court of a
municipalityasitnowappearsinSection34ofRule138,thus:
SEC.34. Bywhomlitigationisconducted.IntheCourtofa
municipalityapartymayconducthislitigationinperson,withthe
aidofanagentorfriendappointedbyhimforthatpurpose,orwith
theaidofanattorney.Inanyothercourt,apartymayconducthis
litigationpersonallyorbyaidofanattorneyandhisappearance
mustbeeitherpersonalorbyadulyauthorizedmemberofthebar.
Cruzv.MinaGRno.154207April27,2007
Theterm"MunicipalTrialCourts"asusedintheseRulesshall
include:
1.MetropolitanTrialCourts,
2.MunicipalTrialCourtsinCities,
3.MunicipalTrialCourts,and
4.MunicipalCircuitTrialCourts.
Cruzv.MinaGRno.154207April27,2007
BARMATTERNO.730,June13,1997
Fortheguidanceofthebenchandbar,weholdthatalawstudent
appearing before the Regional Trial Court under Rule 138A
shouldatalltimesbeaccompaniedbyasupervisinglawyer.
Lawstudentcanappearwithoutsupervisionofalawyer
Therule,however,isdifferentifthelawstudentappearsbeforean
inferior court, where the issues and procedure are relatively
simple.Ininferiorcourts,alawstudentmayappearinhispersonal
capacitywithoutthesupervisionofalawyer.
Thus,alawstudentmayappearbeforeaninferiorcourt asan
agentorfriendofapartywithoutthesupervisionofamember
ofthebar.
Cautionwhenoneactashisownattorney
Thisprovisionmeansthatinalitigation,partiesmaypersonallydo
everything during its progress from its commencement to its
termination.Whenthey,however,actastheirownattorneys,they
are restrictedtothesamerulesofevidenceandprocedureas
thosequalified topracticelaw;otherwise,ignorancewouldbe
unjustifiably rewarded. Individuals have long been permitted to
manage,prosecuteanddefendtheirownactions;and whenthey
doso,theyarenotconsideredtobeinthepracticeoflaw."One
does not practice law by acting for himself any more than he
practicesmedicinebyrenderingfirstaidtohimself.Maderada
v.JudgeMediodea,A.M.No.MTJ021459.October14,2003
Appearingashisownattorneyisnotpracticeoflaw
Clearly,inappearingforherself,complainantwasnotcustomarily
or habitually holding herself out to the public as a lawyer.
Neitherwasshedemandingpaymentforsuchservices.Hence,she
cannotbesaidtobeinthepracticeoflaw. Maderadav.Judge
Mediodea,A.M.No.MTJ021459.October14,2003
 Thelawallowspersons whoarenotlawyersbyprofessionto
litigatetheirowncase incourt. Therightofcomplainantto
litigate her case personally cannot be taken away from her.
Maderadav.JudgeMediodea,A.M.No.MTJ021459. October
14,2003
UNAUTHORIZEDPRACTICEOFLAW
CANON 9 A LAWYER SHALL NOT, DIRECTLY OR
INDIRECTLY, ASSIST IN THE UNAUTHORIZED
PRACTICEOFLAW.
Rule 9.01A lawyer shall notdelegatetoanyunqualified
person theperformanceofanytaskwhichbylawmayonlybe
performedbyamemberofthebaringoodstanding.
ThreefoldrationalebehindtheLawStudentPracticeRule
1.toensurethattherewillbenomiscarriageofjusticeasa
resultofincompetenceorinexperienceoflawstudents,who,not
havingasyetpassedthetestofprofessionalcompetence,are
presumablynotfullyequippedtoactacounselsontheirown;
2.toprovideamechanismbywhichtheaccreditedlawschool
clinicmaybeabletoprotectitselffromanypotentialvicarious
liabilityarisingfromsomeculpableactionbytheirlawstudents;
and
3.toensureconsistencywiththefundamentalprinciplethatno
personisallowedtopracticeaparticularprofessionwithout
possessingthequalifications,particularlyalicense,asrequiredby
law.
Presidingjudgehasnodiscretion
Thematterofallowingalawstudenttoappearbeforethecourt
unaccompanied by a supervising lawyer cannot be left to the
discretionofthepresidingjudge.Theruleclearlystatesthatthe
appearanceofthelawstudentshallbeunderthe directcontrol
and supervision of a member of the Integrated Bar of the
Philippines duly accredited by law schools. The rule must be
strictlyconstruedbecausepublicpolicydemandsthatlegalwork
shouldbeentrustedonlytothosewhopossesstestedqualifications,
aresworntoobservetherulesandethicsofthelegalprofession
andsubjecttojudicialdisciplinarycontrol. BARMATTERNO.
730June13,1997
Appearanceofalawstudentininferiorcourtsdoesnotrequire
supervisionoflawyer
Forrelativelysimplelitigationbeforemunicipalcourts,theRules
still allow amore educated orcapable person in behalf ofa
litigantwhocannotgetalawyer.Bulacanv.Torcino,G.R.No.L
44388January30,1985
Therule,however,isdifferentifthelawstudent appearsbefore
aninferiorcourt,wheretheissuesandprocedurearerelatively
simple. In inferior courts, a law student may appear in his
personal capacity without the supervision of a lawyer. BAR
MATTERNO.730June13,1997
Alawstudentmayappearbeforeaninferiorcourtasanagentor
friendofaparty withoutthesupervision ofamemberofthe
bar.BARMATTERNO.730June13,1997
Therespondent allegesthatthecomplaintisirregularasitwas
signednotbytheplaintiffbutbyonewhowasnotamemberofthe
barandwhodesignatedhimselfmerelyas"Friendcounselforthe
Plaintiff."Theappellantsarguethatthemunicipalcourtdidnot
acquirejurisdictionoverthecase.
TheyinvokeSection5,Rule7whichstatesthat[SEC.5.Signature
andaddress][e]verypleadingofapartyrepresentedbyanattorney
shall be signed by at least one attorney of record in his
individualname,whoseaddressshallbestated.Apartywhoisnot
representedbyanattorney shallsignhispleading andstatehis
address.
DECIDE.

Held:
Underthefactsofthiscase,however,theapplicableprovisionis
Section34,Rule138oftheRulesofCourtwhichstates:
SEC. 34. By whom litigation is conducted. In the Court of a
municipalityapartymayconducthislitigationinpersonwiththe
aidofanagentorfriendappointedbyhimforthatpurpose,or
withtheaidofanattorney.Inanyothercourt,apartymayconduct
hislitigationpersonallyorbyaidofanattorneyandhisappearance
mustbeeitherpersonalorbyadulyauthorizedmemberofthebar.
Bulacanv.Torcino,G.R.No.L44388January30,1985
Supervisinglawyershouldbetheonetosignthepleadings
Rule 7 (RRC) Section 3. Signature and address. Every
pleadingmustbesignedbythepartyorcounselrepresenting
him,statingineithercasehisaddresswhichshouldnotbeapost
officebox.
Signingamountstocertificationoflawyer
Rule7(RRC)Section3.xxxThesignatureofcounselconstitutesa
certificatebyhimthathehasreadthepleading;thattothebestof
hisknowledge,information,andbelief thereisgoodgroundto
supportit;andthatitisnotinterposedfordelay.
Effectofunsignedpleadings
Rule7(RRC)Section3.Anunsignedpleadingproducesnolegal
effect. However, the court may, in its discretion, allow such
deficiencytoberemediedifitshallappearthatthesamewasdue
to mere inadvertence and not intended for delay. Counsel who
deliberatelyfilesanunsignedpleading,xxx,shallbesubjectto
appropriatedisciplinaryaction.
Canathirdyearlawstudentappearasprivateprosecutorina
criminalcaseandwithinthejurisdictionoftheinferiorcourt?
The petitioner, describing himself as a third year law student,
justifies his appearance as private prosecutor on thebases of
Section34ofRule138oftheRulesofCourt.
Thepetitionerfurthermoreaversthathisappearancewaswiththe
priorconformityofthepublicprosecutorandawrittenauthority
ofMarianoCruzappointinghimtobehisagentintheprosecution
ofthesaidcriminalcase.
TheMeTCdeniedpermissionforpetitionertoappearasprivate
prosecutoronthegroundthatCircularNo.19(1997)governing
limitedlawstudentpracticeinconjunctionwithRule138Aof
theRulesofCourt (LawStudentPracticeRule) shouldtake
precedence over the ruling of the Court laid down in
Cantimbuhan(1983).
Held:
PetitionerexpresslyanchoredhisappearanceonSection34ofRule
138. Thecourtaquomusthavebeenconfusedbythefactthat
petitioner referred to himself as a law student in his entry of
appearance. Rule 138A should not have been used by the
courtsaquoindenyingpermissiontoactasprivateprosecutor
againstpetitionerforthesimplereasonthatRule138Aisnotthe
basisforthepetitionersappearance.
Section34,Rule138isclearthatappearancebeforetheinferior
courtsbyanonlawyerisallowed,irrespectiveofwhetherornot
heisalawstudent.AssuccinctlyclarifiedinBarMatterNo.730,
byvirtueofSection34,Rule138,alawstudentmayappear,as
anagentorafriendofapartylitigant,withoutthesupervision
ofalawyerbeforeinferiorcourts.Cruzv.MinaGRno.154207
April27,2007
Fiscalsrolewhenthereisaprivateprosecutor
Thepermissionofthefiscalisnotnecessaryforonetoenterhis
appearanceasprivateprosecutor.Inthefirstplace,thelawdoes
notimposethiscondition.Whatthefiscalcando,ifhewantsto
handlethecasepersonallyistodisallowtheprivateprosecutor's
 participation, whetherhebealawyerornot, inthetrialofthe
case.Ontheotherhand,ifthefiscaldesirestheactiveparticipation
oftheprivateprosecutor,hecanjustmanifesttothecourtthatthe
privateprosecutor,withitsapproval,willconducttheprosecution
ofthecaseunderhissupervisionandcontrol.Cantimbuhanv.
Hon.Cruz,Jr.,G.R.No.L5181314November29,1983
Sections4and15,Rule110oftheRulesofCourt
SEC.4.Whomustprosecutecriminalactions.Allcriminal
actionseithercommencedbycomplaintorbyinformationshall
beprosecutedunderthedirectionandcontrolofthefiscal.
xxxxxxxxx
SEC.15.Interventionoftheoffendedpartyincriminalaction.
Unless the offended party has waived the civil action or
expresslyreservedtherighttoinstituteitseparatelyfromthe
criminal action, and subject to the provisions of section 4
hereof, he may intervene, personally or by attorney, in the
prosecutionoftheoffense.
CHAPTER3
Solicitationoflegalservices
CodeofProfessionalResponsibility
CANON 2 A LAWYER SHALL MAKE HIS LEGAL
SERVICES AVAILABLE IN AN EFFICIENT AND
CONVENIENT MANNER COMPATIBLE WITH THE
INDEPENDENCE, INTEGRITY AND EFFECTIVENESS OF
THEPROFESSION.
Rule2.01Alawyershallnotreject,exceptforvalidreasons,the Sec.27.AttorneysremovedorsuspendedbySupremeCourton
causeofthedefenselessortheoppressed.
Rule2.02Insuchcases,evenifthelawyerdoesnotaccepta
case, he shall not refuse to render legal advice to the person
concernedifonlytotheextentnecessarytosafeguardthelatter's
rights.
Rule2.03Alawyershallnotdoorpermittobedoneanyact
designedprimarilytosolicitlegalbusiness.
Rule 2.04 A lawyer shall not charge rates lower than those
customarilyprescribedunlessthecircumstancessowarrant.
CANON 3 A LAWYER IN MAKING KNOWN HIS LEGAL
SERVICES SHALL USE ONLY TRUE, HONEST, FAIR,
DIGNIFIEDANDOBJECTIVEINFORMATIONORSTATEMENT
OFFACTS.
Rule3.01Alawyershallnotuseorpermittheuseofanyfalse,
fraudulent, misleading, deceptive, undignified, selflaudatory or
unfair statement or claim regarding his qualifications or legal
services.
Rule3.02Inthechoiceofafirmname,nofalse,misleadingor
assumednameshallbeused.Thecontinueduseofthenameofa
deceasedpartnerispermissibleprovidedthatthefirmindicatesin
allitscommunicationsthatsaidpartnerisdeceased.
Rule 3.03 Where a partner accepts public office, he shall
withdrawfromthefirmandhisnameshallbedroppedfromthe
firmnameunlessthelawallowshimtopracticelawcurrently.
Rule3.04Alawyershallnotpayorgiveanythingofvalueto
representativesofthemassmediainanticipationof,orinreturnfor
publicitytoattractlegalbusiness.
Rule138
what grounds. A member of the bar may be removed or
suspendedfromhisofficeasattorneybytheSupremeCourtfor
anydeceit,malpractice,orothergrossmisconductinsuchoffice,
 grosslyimmoralconduct,orbyreasonofhisconvictionofacrime
involvingmoralturpitude,orforanyviolationoftheoathwhichhe
isrequiredtotakebeforeadmissiontopractice,orforawilfull
disobedience of any lawful order of a superior court, or for
corruptlyorwilfullyappearingasanattorneyforapartytoacase
withoutauthoritysotodo.Thepracticeofsolicitingcasesatlaw
for the purpose of gain, either personally or through paid
agentsorbrokers,constitutesmalpractice.
Rule2.03shouldbereadinconnectionwithRule1.03oftheCPR
Rule2.03Alawyershallnotdoorpermittobedoneanyact
designedprimarilytosolicitlegalbusiness.
RULE1.03.ALAWYERSHALLNOT,FORANYCORRUPT
MOTIVE OR INTEREST, ENCOURAGE ANY SUIT OR
PROCEEDINGORDELAYANYMANSCAUSE.
This rule proscribes ambulance chasing (the solicitation of
almost anykindoflegalbusiness byanattorney,personally or
throughanagentinordertogainemployment)asameasureto
protect the community from barratry and champerty.
Linsanganv.Atty.Tolentino,A.C.No.6672,September4,2009
Donotpirateaclient
CANON8ALAWYERSHALLCONDUCTHIMSELFWITH
COURTESY, FAIRNESS AND CANDOR TOWARDS HIS
PROFESSIONAL COLLEAGUES, AND SHALL AVOID
HARASSINGTACTICSAGAINSTOPPOSINGCOUNSEL.
Rule 8.02 A lawyer shall not, directly or indirectly, encroach
upontheprofessionalemploymentofanotherlawyer,however,it
istherightofanylawyer,withoutfearorfavor,togiveproper
adviceandassistancetothoseseekingreliefagainstunfaithfulor
neglectfulcounsel.
Thefollowingelementsdistinguishthelegalprofessionfroma
business:
1. A duty of public service, of which the emolument is a by
product, and in which one may attain the highest eminence
withoutmakingmuchmoney;
2. Arelationasanofficerofthecourttotheadministrationof
justiceinvolvingthoroughsincerity,integrityandreliability;
3. Arelationtoclientsinthehighestdegreeoffiduciary;
4. A relation to colleagues at the bar characterized by candor,
fairness, and unwillingness to resort to current business
methodsofadvertisingandencroachmentontheirpractice,or
dealingdirectlywiththeirclients.
Atty.KhanJr.v.Atty.Simbillo,A.C.No.5299,August19,
2003
Generalrule
Hence,lawyersareprohibitedfromsolicitingcasesforthepurpose
of gain, either personally or through paid agents or brokers.
Suchactuationconstitutesmalpractice,agroundfordisbarment.
Linsanganv.Atty.Tolentino,A.C.No.6672,September4,2009
Solicitation or obtaining of professional employment by any
meansofcommunication."Geffenv.Moss,53Cal.App.3d215,
125Cal.Rptr.687[1975]
SolicitationorAmbulancechasing
We need not labor the point that solicitation or ambulance
chasing,socalled,eitherdirectlyorindirectlythroughtheservices
of runners or others, is conduct which is reprehensible and
inimicable to the traditions and best interests of the legal
profession.Notonlydoesitprovokederisionanddisrespectinthe
eyesofthepublic,butitisanoverreachingoftheothermembers
oftheprofessionwhoadheretothestandardsfixedbycanonsof
ethics and the dictates of good conscience. To permit such
conducttocontinueundeterredcouldonlyresultinunsavory
competitions and consequencesmaterially detrimental tothe
dignityandhonorofthelegalprofessionasawhole. Inre
Krasner204N.E.2d10(1965)
Ambulancechasing Common barratry consisting of frequently stirring up suits and
This rule proscribes ambulance chasing (the solicitation of quarrelsbetweenindividuals.
almost anykindoflegalbusiness byanattorney,personally or
throughanagentinordertogainemployment)asameasureto Onlywaytoannouncelegalservice
protectthecommunityfrombarratryandchamperty.Linsangan For this reason, lawyers are only allowed to announce their
v.Atty.Tolentino,A.C.No.6672,September4,2009 services by publication in reputable law lists or use of simple
professionalcards.Linsanganv.Atty.Tolentino,A.C.No.6672,
Champertouscontract September4,2009
Champertyn.anagreementbetweenthepartysuinginalawsuit Nonetheless,the solicitationoflegalbusinessisnotaltogether
(plaintiff)andanotherperson,usuallyanattorney,whoagreesto proscribed. However, for solicitation to be proper, it must be
financeandcarrythelawsuitinreturnforapercentageofthe compatiblewiththedignityofthelegalprofession.Ifitismade
recovery(moneywonandpaid.)InCommonLawthiswasillegal inamodestanddecorousmanner,itwouldbringnoinjurytothe
onthetheorythatitencouragedlawsuits. lawyerandtothebar.Atty.KhanJr.v.Atty.Simbillo,A.C.No.
5299,August19,2003
Contingentfeeisvalid
For this reason, lawyers are only allowed to announce their
Contingentfeecontractsarepermittedinthisjurisdictionbecause
services bypublicationinreputablelawlists oruseof simple
they redound to the benefit of the poor client and the lawyer
professionalcards.Linsanganv.Atty.Tolentino,A.C.No.6672,
"especially in cases where the client has meritorious cause of
September4,2009
action,butnomeanswithwhichtopayforlegalservicesunless
hecan,withthesanctionoflaw,makeacontractforacontingent Professionalcallingcardsmayonlycontainthefollowingdetails:
fee tobepaidoutoftheproceedsoflitigation.Oftentimes,the
contingentfeearrangementistheonlymeansbywhichthepoor 1. lawyersname;
clientscanhavetheirrightsvindicatedandupheld." 2. nameofthelawfirmwithwhichheisconnected;
As long as the lawyer does not exert undue influence on his 3. address;
client,thatnofraudiscommittedorimpositionapplied,orthat 4. telephonenumberand
the compensation is clearly not excessive as to amount to 5. specialbranchoflawpracticed.
extortion,acontractforcontingentfeeisvalidandenforceable. Linsanganv.Atty.Tolentino,A.C.No.6672,September4,
Fabillov.IACG.R.No.L68838March11,1991 2009
Acceptancefee Briefbiographicalandinformativedata
Anacceptancefeeisnotacontingentfee,butisanabsolutefee Such data must not be misleading and may include only the
arrangement which entitles a lawyer to get paid for his efforts following:
regardlessoftheoutcomeofthelitigation.Yuv.Bondal,A.C.No. 1. a statement of the lawyers name and the names of his
5534,January17,2005 professionalassociates;
Touterssomeonewhoadvertisesforcustomersinanespecially 2. addresses,telephonenumbers,cableaddresses;
brazenway. 3. branchesoflawpracticed;
 4. dateandplaceofbirthandadmissiontothebar;
5. schoolsattendedwithdatesofgraduation,degreesandother
educationaldistinctions;
6. publicorquasipublicoffices;
7. postsofhonor;
8. legalauthorships;
9. legalteachingpositions;
10. membership and offices in bar associations and committees
thereof,inlegalandscientificsocietiesandlegalfraternities;
11. thefactoflistingsinotherreputablelawlists;
12. thenamesandaddressesofreferences;and,
13. with their written consent, the names of clients regularly
represented.
Atty.KhanJr.v.Atty.Simbillo,A.C.No.5299,August19,
2003
Acceptablelawlistpublication
Thelawlistmustbeareputablelawlistpublishedprimarilyfor
thatpurpose;itcannotbeameresupplementalfeatureofapaper,
magazine, trade journal or periodical which is published
principallyforotherpurposes.Forthatreason,alawyermaynot
properlypublishhisbriefbiographicalandinformativedataina
dailypaper,magazine,tradejournalorsocietyprogram.Normaya
lawyerpermithisnametobepublishedinalawlisttheconduct,
management, or contents of which are calculated or likely to
deceive or injure the public or the bar, or to lower dignity or
standingoftheprofession.Atty.KhanJr.v.Atty.Simbillo,A.C.
No.5299,August19,2003
Acceptablepublication
Theuseofanordinarysimpleprofessionalcardisalsopermitted.
Thecardmaycontainonlyastatementofhisname,thenameof
the law firm which he is connected with, address, telephone
numberandspecialbranchoflawpracticed.Thepublicationofa
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, is not
objectionable. Atty.KhanJr.v.Atty.Simbillo,A.C.No.5299,
August19,2003
Telephonedirectory
Hemaylikewisehavehisnamelistedinatelephonedirectorybut
notunderadesignationofspecialbranchoflaw.Atty.Khan
Jr.v.Atty.Simbillo,A.C.No.5299,August19,2003
Whether or not the firm of Velasquez, Rodriguez, Respicio,
Ramos, Nidea, and Prado may call itself A law Firm Of St.
ThomasMoreandAssociateMembers
We agree with the OBC. Rule 3.02 is clear. No name not
belongingtoanyofthepartnersorassociatesmaybeusedin
thefirmnameforanypurpose.Inonecase,wehaveruledthat
the use of the firm name of a foreign law firm is unethical
because that firm is not authorized to practice law in this
jurisdiction.Inthiscase,TheLawFirmofSt.ThomasMoreand
AssociateMembersisnotalawfirminthisjurisdictionorevenin
any otherjurisdiction. ASt. Thomas MoreandAssociates or
STMA is in fact the sociopolitical ministry or the couples for
Christ,aChristianfamilyrenewalcommunity. PPv.Gonzalez,
Jr.,G.R.No.139542June10,2003
Toappellate tothenameofthelawyers TheLaw FirmofSt.
Thomas More and Associate Members indeed appears
misleading. Itimplies thatSt.Thomas More is aLaw Firm
when in fact it is not it would also convey to the public the
impressionthatthelawyersaremembersofthelawfirmwhich
doesnotexist.Tothepublic,itwouldseemthatthepurposeor
intention of adding The Law Firm of St. Thomas More and
AssociatesMembersistobaskinthenameofaSaint,although
thatmaynotreally,bethepurposeorintentionofthelawyers.The
appellation only tends to confuse the public and in a way
demeanboththesaintsandthelegalprofessionwhosemembers
mustdependontheirownnameandrecordandmeritandnoton
thename/gloryofotherpersonslivingordead.PPv.Gonzalez,
Jr.,G.R.No.139542June10,2003
PhilippineDailyInquirer,whichreads:

ANNULMENTOFMARRIAGESpecialist5324333/5212667.

Atty.KhanJr.v.Atty.Simbillo,A.C.No.5299,August19,2003

Thus,theuseofsimplesignsstatingthenameornamesofthe
lawyers,theofficeandresidenceaddressandfieldsofpractice,as
wellasadvertisementinlegalperiodicalsbearingthesamebrief
data, are permissible. Even the use of calling cards is now
acceptable. Publication in reputable law lists, in a manner
consistentwiththestandardsofconductimposedbythecanon,of
brief biographical and informative data is likewise allowable.
Atty.KhanJr.v.Atty.Simbillo,A.C.No.5299,August19,2003

CallingcardofAtty.Tolentino

Complainantallegedthatrespondent,withthehelpofparalegalFe
Marie Labiano, convinced his clients to transfer legal
representation.Respondentpromisedthemfinancialassistanceand
expeditiouscollectionontheirclaims.Toinducethemtohirehis
services,hepersistentlycalledthemandsentthemtextmessages.

To support his allegations, complainant presented the sworn

affidavitofJamesGregorioattestingthatLabianotriedtoprevail
uponhimtoseverhislawyerclientrelationswithcomplainantand
utilize respondents services instead, in exchange for a loan of
P50,000.
 Moreover,byengaginginamoneylendingventurewithhisclients
asborrowers,respondentviolatedRule16.04:
Rule16.04Alawyershallnotborrowmoneyfromhisclient
unlesstheclientsinterestsarefullyprotectedbythenatureof
thecaseorbyindependentadvice.Neithershallalawyerlend
moneytoaclientexcept,whenintheinterestofjustice,hehas
toadvancenecessaryexpensesinalegalmatterheishandling
for the client. Linsangan v. Atty. Tolentino, A.C.No.6672,
September4,2009
Theruleisthatalawyershallnotlendmoneytohisclient. The
onlyexceptionis,whenintheinterestofjustice,hehastoadvance
necessary expenses (such as filing fees, stenographers fees for
transcriptofstenographicnotes,cashbondorpremiumforsurety
bond,etc.)foramatterthatheishandlingfortheclient.
The rule is intended to safeguard the lawyers independence of
mind so that the free exercise of his judgment may not be
adverselyaffected.Itseekstoensurehisundividedattentiontothe
caseheishandlingaswellashisentiredevotionandfidelitytothe
clients cause. Linsangan v. Atty. Tolentino, A.C. No. 6672,
September4,2009
Lendingmoneytoclient
If the lawyer lends money to the client in connection with the
clientscase,thelawyerineffectacquiresaninterestinthesubject
matterofthecaseoranadditionalstakeinitsoutcome.Eitherof
these circumstances may lead the lawyer to consider his own
recovery ratherthanthatofhisclient,or toacceptasettlement
whichmaytakecareofhisinterestintheverdicttotheprejudice
oftheclientinviolationofhisdutyofundividedfidelitytothe
clients cause. Linsangan v. Atty. Tolentino, A.C. No. 6672,
September4,2009
Uninformativefact
Somewhatmoretroublingisappellant'slisting,inlargecapital
letters,thathewasamemberoftheBaroftheSupremeCourtof
theUnitedStates.Theemphasisofthisrelativelyuninformative
factisatleastbadtaste.Inre:R.M.J.455U.S.191[1982]
Includingagovernmentlawyerinabusinesscard
Thus,whilehemaynotbeactuallyanddirectlyemployedwiththe
firm,thefactthathisnameappearsonthecallingcardasapartner
intheBaligod,Gatdula,Tacardon,Dimailig&CeleraLawOffices
givetheimpressionthatheisconnectedthereinandmayconstitute
an act of solicitation and private practice which is declared
unlawful under Republic Act No. 6713. Samonte v. Atty.
GatdulaA.M.No.P991292[1999]
Averifiedcomplaint,soughttoenjoinJuanG.Collas,Jr.andnine
other lawyers frompracticing law under the name ofBaker &
McKenzie,alawfirmorganizedinIllinois
WeholdthatBaker&McKenzie,beinganalienlawfirm,cannot
practicelawinthePhilippines(Sec.1,Rule138,RulesofCourt).
Asadmittedbytherespondentsintheirmemorandum,Baker&
McKenzie is a professional partnership organized in 1949 in
Chicago,Illinoiswithmembersandassociatesin30citiesaround
the world. Respondents, aside from being members of the
Philippine bar, practicing under the firm name of Guerrero &
Torres, are members or associates of Baker &Mckenzie.
Dacanay v. Baker & McKenzie, et. al. Adm. Case No. 2131
[1985]
AspointedoutbytheSolicitorGeneral,respondents' useofthe
firm name Baker & McKenzie constitutes a representation that
beingassociatedwiththefirmtheycould"renderlegalservicesof
thehighestqualitytomultinationalbusinessenterprisesandothers
engaged in foreign trade and investment. This is unethical
becauseBaker&McKenzieisnotauthorizedtopracticelawhere.
Dacanayv.Baker&McKenzie,et.al.Adm.CaseNo.2131
[1985]
DirectorofReligiousAffairsv.Bayot,A.C.No.L1117,March20, (NOTE.Asnotarypublic,hecanexecuteforyouadeedofsalefor
1944 thepurchaseoflandasrequiredbythecadastraloffice;canrenewlost
documents of your animals; can make your application and final
SundayTribuneofJune13,1943,whichreadsasfollows: requisitesforyourhomestead;andcanexecuteanykindofaffidavit.
Asalawyer,hecanhelpyoucollectyourloansalthoughlongoverdue,
Marriagelicensepromptlysecuredthruourassistance&the aswellasanycomplaintfororagainstyou.Comeorwritetohimin
annoyance of delay or publicity avoided if desired, and histown,Echague,Isabela.Heoffersfreeconsultation,andiswilling
marriagearrangedtowishesofparties.Consultationonany tohelpandservethepoor.)
matterfreeforthepoor.Everythingconfidential.
Volunteer[legal]adviceismalpractice
Legalassistanceservice It is unprofessional fora lawyer to volunteer advice to bring a
lawsuit,exceptinrarecaseswheretiesofblood,relationshipor
12Escolta,Manila,Room,105 trustmakeithisdutytodoso.Stirringupstrifeandlitigationis
Tel.24160. not only unprofessional, but it is indictable at common law.
Canons of Professionals Ethics adopted by the American Bar
Association in 1908 and by the Philippine Bar Association in
1917.Canons27and28oftheCodeofEthicsInre:Tagorda,53
Phil.37(1929)

Admonitiontoayounglawyer Yourbestadvertisementasalawyer
"Themostworthandeffectiveadvertisementpossible,evenfora Werepeat,thecanonoftheprofessiontellusthatthebest
younglawyer,...istheestablishmentofawellmeritedreputation advertisingpossibleforalawyerisawellmeritedreputationfor
forprofessionalcapacityandfidelitytotrust.Thiscannotbeforced
professionalcapacityandfidelitytotrust,whichmustbeearned
butmustbetheoutcomeofcharacterandconduct.Directorof
astheoutcomeofcharacterandconduct.
ReligiousAffairsv.Bayot,A.C.No.L1117,March20,1944
Goodandefficientservicetoaclientaswellastothecommunity
hasawayofpublicizingitselfandcatchingpublicattention.That
Unacceptableadvertisement publicityisanormalbyproductofeffectiveservicewhichisright
LUISB.TAGORDA and proper. A good and reputable lawyer needs no artificial
Attorney stimulustogenerateitandtomagnifyhissuccess.Heeasilysees
thedifferencebetweenanormalbyproductofableserviceandthe
NotaryPublic unwholesomeresultofpropaganda. Ulepvs.LegalClinic223
SCRA378
CANDIDATEFORTHIRDMEMBER
ProhibitedadvertisementorsolicitationInre:Tagorda,53Phil.
ProvinceofIsabela
37(1929)
 Butsolicitationofbusinessbycircularsoradvertisements,orby
personalcommunicationsorinterviewnotwarrantedbypersonal
relations,isunprofessional.
It is equally unprofessional to procure business by indirection
through toutersof any kind,whether allied real estate firms or
trustcompaniesadvertisingtosecurethedrawingofdeedsorwills
orofferingretainersinexchangeforexecutorshipsortrusteeships
tobeinfluencedbythelawyer.
Indirectadvertisement forbusiness byfurnishingorinspiring
newspapercommentsconcerningthemanneroftheirconduct,the
magnitudeoftheinterestinvolved,theimportanceofthelawyer's
position,andallotherlikeselflaudation,defythetraditionsand
lowerthetoneofourhighcalling,andareintolerable.
Bestmodeofadvertisement
Themostworthyandeffectiveadvertisementpossible,evenfora
young lawyer, and especially with his brother lawyers, is the
establishment of a wellmerited reputation for professional
capacityandfidelitytotrust.Thiscannotbeforced,butmustbe
theoutcomeofcharacterandconduct.Inre:Tagorda,53Phil.
37(1929)
Lawfirmwithaforeignlawyeraspartner
Intheyear1904hemadeanarrangementwiththedefendantNey,
apracticingattorney,tocarryonbusinesstogether,sendingouta
circular signed "Ney & Bosque," stating that they had
establishedanofficeforthegeneralpracticeoflawinallthecourts
oftheIslandsandthatBosquewoulddevotehimselfespeciallyto
consultationandofficeworkrelatingtoSpanishlaw.Thepaper
was headed "Law Office Ney & Bosque. Juan G. Bosque,
jurisconsultoespaolC.W.Ney,abogadoamericano."
SincethattimethedefendantBosquehasnotpersonallyappeared
in the courts, and with one exception, occuring through an
inadvertance,papersfromtheofficeweresignednotwiththefirm
namealonenorwithanydesignationofthefirmasattorneys,but
withthewords"Ney&BosqueC.W.Ney,abogado.U.S.vs.
NeyandBosque,8Phil.146(1907)
Moreoverthefirmcircularinsettingforththeestablishmentofan
officeforthegeneralpracticeoflawinallthecourtsoftheIslands,
amountedtoanassertionofhisrightandpurpose,noteffectively
qualified by the addition that he would devote himself to
consultationandofficeworkrelatingtoSpanishlaw.
Rule3.01Alawyershallnotuseorpermittheuseofanyfalse,
fraudulent,misleading,deceptive, undignified,selflaudatoryor
unfair statement or claim regarding his qualifications or legal
services.
Rule3.02Inthechoice ofafirmname, nofalse,misleadingor
assumednameshallbeused.Xxx.
CHAPTER4
AttorneysfeesandCompensationforlegalservices
CANON20ALAWYERSHALLCHARGEONLYFAIRAND
REASONABLEFEES.
Rule20.01Alawyershallbeguidedbythefollowingfactorsin
determininghisfees:
(a) the time spent and the extent of the service rendered or
required;
(b)thenoveltyanddifficultyofthequestionsinvolved;
(c)Theimportanceofthesubjectmatter;
(d)Theskilldemanded;
(e) The probability of losing other employment as a result of
acceptanceoftheprofferedcase;
(f)Thecustomarychargesforsimilarservicesandthescheduleof
feesoftheIBPchaptertowhichhebelongs;
(g) The amount involved in the controversy and the benefits
resultingtotheclientfromtheservice;
(h)Thecontingencyorcertaintyofcompensation;
 (i) The character of the employment, whether occasional or andcommensuratewiththeservicesrendered,butalsotomaintain
established;and the dignity and integrity of the legal profession to which he
(j)Theprofessionalstandingofthelawyer. belongs.Rayosv.Atty.Hernandez,G.R.No.169079,February
12,2007
Rule20.02Alawyershall,incaseofreferral,withtheconsentof
Collectionsuitshouldbethelastresort
theclient,be entitledtoadivisionoffees inproportiontothe
workperformedandresponsibilityassumed. Rule 20.4 of the Code of Professional Responsibility advises
lawyers to avoid controversies with clients concerning their
Rule20.03Alawyershallnot,withoutthefullknowledgeand
compensation and to resort to judicial action only to prevent
consentoftheclient,acceptanyfee,reward,costs,commission,
imposition, injustice or fraud. Suits to collect fees should be
interest, rebate or forwarding allowance or other compensation
avoided and should be filed only when circumstances force
whatsoeverrelatedtohisprofessionalemployment fromanyone
lawyerstoresorttoit.Pinedav.Atty.DeJesus,et.al.G.R.No.
otherthantheclient.
155224August23,2006
Rule 20.04 A lawyer shall avoid controversies with clients
Rule138
concerninghiscompensationand shallresorttojudicialaction
Sec.24.Compensationofattorneys;agreementastofees.An
onlytopreventimposition,injusticeorfraud.
attorneyshallbe0entitledtohaveandrecoverfromhisclient no
morethanareasonablecompensation forhisservices,witha
Basesforjustcompensation
view:
With his capital consisting of his brains and with his skill
1)totheimportanceofthesubjectmatterofthecontroversy,
acquired at tremendous cost not only in money but in
2)theextentoftheservicesrendered,and
expenditureoftimeandenergy,heisentitledtotheprotectionof 3)theprofessionalstandingoftheattorney.
anyjudicialtribunalagainstanyattemptonthepartofhisclientto
escape payment of his just compensation. Masmud v. NLRC, Nocourt shallbeboundbytheopinionofattorneysasexpert
G.R.No.183385,February13,2009
witnessesastothepropercompensation,butmaydisregardsuch
testimony and base its conclusion on its own professional
Professionalfeeissubjecttocourtsregulatorypower
knowledge. A written contract for services shall control the
Upon taking his attorneys oath as an officer of the court, a
amount to be paid therefor unless found by the court to be
lawyersubmitshimselftotheauthorityofthecourtstoregulate
unconscionableorunreasonable.
hisrighttochargeprofessionalfees.Rayosv.Atty.Hernandez,
G.R.No.169079,February12,2007 Section25,Rule138oftheRulesofCourt:

Reasonswhylawyerscompensationissubjecttothesupervision
SEC.25.Unlawfulretentionofclientsfunds;contemptWhen
ofthecourt an attorney unjustlyretains in his hands moneyofhis client
Itfollowsthatalawyerscompensationforprofessionalservices afterithasbeendemandedhemaybepunishedforcontemptas
rendered is subject to the supervision of the court, not just to an officer of the Court who has misbehaved in his official
guaranteethatthefeeshechargesandreceivesremainreasonable
 transactions;butproceedingsunderthissectionshallnotbeabar
toacriminalprosecution.
Ruleondivisionoflegalfees
Rule9.02Alawyershallnotdivideorstipulatetodivideafee
for legal services with persons not licensed to practice law,
except:
(a) Where there is a preexisting agreement with a partner or
associatethat,uponthelatter'sdeath,moneyshallbepaidovera
reasonableperiodoftimetohisestateortopersonsspecifiedinthe
agreement;or
(b) Where a lawyer undertakes to complete unfinished legal
businessofadeceasedlawyer;or
(c)Wherealawyerorlawfirmincludesnonlawyeremployeesin
aretirementplaneveniftheplanisbasedinwholeorinpart,ona
profitsharingagreement.
CANON 16 A LAWYER SHALL HOLD IN TRUST ALL
MONEYS AND PROPERTIES OF HIS CLIENT THAT MAY
COMEINTOHISPROFESSION.
Rule 16.01A lawyershall account forall moneyorproperty
collectedorreceivedfororfromtheclient.
Rule16.02Alawyershallkeepthefundsofeachclientseparate
andapartfromhisownandthoseofotherskeptbyhim.
Rule16.03Alawyershalldeliverthefundsandpropertyofhis
clientwhendueorupondemand.However,heshallhavealien
overthefundsandmayapplysomuchthereofasmaybenecessary
to satisfy his lawful fees and disbursements, giving notice
promptlythereaftertohisclient.Heshallalsohavealientothe
sameextentonalljudgmentsandexecutionshehassecuredforhis
clientasprovidedforintheRulesofCourt.
Rule 16.04A lawyershall notborrow moneyfrom his client
unlesstheclient'sinterestarefullyprotectedbythenatureofthe
caseorbyindependentadvice.Neithershallalawyerlendmoney
toaclientexcept,whenintheinterestofjustice,hehastoadvance
necessaryexpensesinalegalmatterheishandlingfortheclient.
This rule is intended to prevent the lawyer from taking
advantage of his influence over the client. Junio v. Atty.
Grupo,A.C.No.5020,December18,2001
NonpaymentofloanisaviolationofPCRnotmisappropriation
orembezzlement
Respondents liability is thus not for misappropriation or
embezzlement but for violation of Rule 16.04 of the Code of
Professional Responsibility which forbids lawyers from
borrowingmoneyfromtheirclients unlessthelattersinterests
are protected by the nature of the case or by independent
advice.Inthiscase,respondentsliabilityiscompoundedbythe
factthatnotonlydidhenotgiveanysecurityforthepaymentof
theamount loanedtohim butthat hehasalsorefusedtopay
the said amount. His claim that he could not pay the loan
becausecircumstances...didnotallowitandthat,becauseof
the passage of time, he somehow forgot about his obligation
only underscores his blatant disregard of his obligation which
reflectsonhishonestyandcandor.
Whetherornotanattorneywhowasengagedonacontingentfee
basismay,inordertocollecthisfees,prosecuteanappealdespite
hisclient'srefusaltoappealthedecisionofthetrialcourt.
Apracticingattorney,enteredintoawrittenagreementwiththe
privaterespondenttoappearashercounselinapetitionforprobate
oftheholographicwill.Underthewill,apieceofrealpropertyat
Sales Street, Quiapo, Manila, was bequeathed to private
respondent.Itwasagreedthattheattorneyscontigentfeewould
be thirtyfive per cent (35%) of the property that private
respondentmayreceiveupontheprobateofthewill.
Thepaymentofhisfeesiscontingentanddependentuponthe
successfulprobateoftheholographicwill.Sincethepetitionfor
probatewasdismissedbythelowercourt,thecontingencydidnot
occur.AttorneyLevisteisnotentitledtohisfee.Levistev.CA,
G.R.No.L29184[1989]

Is the right of a client to enter into a compromise agreement
withouttheconsentofhislawyerdefeatedbyacontrarywritten
contract?
ItappearsfromtherecordthatonJuly31,1921,therespondents
bymeansofawrittencontract,retainedthepetitionertorepresent
themastheirlawyer.Thecontractfixedthepetitioner'sfeeatP200
inadvancewithanadditionalcontigentfeeofP1,300.Itwasalso
providedinthecontractthatrespondentshouldnotcompromise
theclaimagainstthedefendantinthecasewithoutexpressconsent
ofhislawyer.
Through the sole effort of respondents the case was dismissed
withoutnoticetotheircounsel.
Rightofaclienttocompromisesuit
The client has also an undoubted right to compromise a suit
withouttheinterventionofhislawyer.
Thoughthereisavalidagreementforthepaymenttotheattorney
ofalargeproportionofthesumrecoveredincaseofsuccessthis
does not give the attorney such an interest in the cause of
action that it prevents plaintiff from compromising the suit.
Rustiav.TheJudgeofFirstInstanceofBatangas, G.R.No.L
19695November17,1922
Wehaverecentlyheldthataclienthasalwaystherighttosettle
his cause of action and stop litigation at any stage of the
proceeding, subject, however, to the right of the attorney to
receivecompensation forservicesrendered. Arov.TheHon.
Naawa,G.R.No.L24163[1969]
Appliesonlyincivilcases
Rule1.04Alawyershallencouragehisclientstoavoid,endor
settleacontroversyifitwilladmitofafairsettlement.
Limitationofclientsrighttocompromisesuit
WhileWeherereaffirmtherulethat"theclienthasanundoubted
righttocompromiseasuitwithouttheinterventionofhislawyer",
Weholdthatwhensuchcompromiseisenteredinto infraudof
thelawyer,withintenttodeprivehimofthefeesjustlydue
him, thecompromisemustbesubjecttothesaidfees,andthat
whenitisevidentthatthesaidfraudiscommittedinconfabulation
with the adverse party who had knowledge of the lawyer's
contingent interest or such interest appears of record and who
wouldbenefitundersuchcompromise, thebetterpracticeisto
settlethematteroftheattorney'sfeesinthesameproceeding,
afterhearingalltheaffectedpartiesandwithoutprejudicetothe
finalityofthecompromiseinsofarasitdoesnotadverselyaffect
therightsofthelawyer.Arov.TheHon.Naawa,G.R.No.L
24163[1969]
Quantummeruit
Theprincipleofquantummeruit(asmuchashedeserves)maybe
abasisfordeterminingthereasonableamountofattorneysfees.
Quantummeruitisadevicetopreventundueenrichmentbasedon
theequitablepostulatethatitisunjustforapersontoretainbenefit
withoutpayingforit.Itisapplicableeveniftherewasaformal
writtencontractforattorneysfeesaslongastheagreedfeewas
foundbythecourttobeunconscionable.Atty.Orociov.Angulan
et.al.,G.R.No.17989293,January30,2009
2purposesofapplicationQuantummeruit
Therecoveryofattorneysfeesonthisbasisispermitted,asinthis
case, where there is no express agreement for the payment of
attorneysfees.Basically,itisalegalmechanismwhichprevents
anunscrupulousclientfromrunningawaywiththefruitsof
thelegalservicesofcounselwithoutpayingforit.Inthesame
vein,itavoidsunjustenrichmentonthepart ofthelawyer
himself.Pinedav.Atty.DeJesus,et.al.G.R.No.155224August
23,2006
WhenisQuantummeruitauthorized
(1) there is no express contract for payment of attorney's fees
agreeduponbetweenthelawyerandtheclient;
(2)whenalthoughthereisaformalcontractforattorney'sfees,the
feesstipulatedarefoundunconscionableorunreasonablebythe
court;and
(3) when the contract for attorney's fee's is void due to purely
formaldefectsofexecution;
(4)whenthecounsel,forjustifiablecause,wasnotabletofinish
thecasetoitsconclusion;
(5) when lawyer and client disregard the contract forattorney's
fees,Rilloza,et.al.v.EasternTelecommunicationsPhils.,Inc.,
G.R.No.104600[1999]
Factorsforapplicationofquantummeruit
Infixingareasonablecompensationfortheservicesrenderedbya
lawyeronthebasisofquantummeruit, factors suchasthetime
spent,andextentofservicesrendered;noveltyanddifficultyofthe
questions involved; importance of the subject matter; skill
demanded;probabilityoflosingotheremploymentasaresultof
acceptance of the proferred case; customary charges for similar
services; amount involved in the controversy and the benefits
resulting to the client; certainty of compensation; character of
employment; and professional standing of the lawyer, may be
considered.(Atty.Orociov.Angulanet.al.,G.R.No.17989293,
January30,2009)
Thecourtshallfixtheamount
Infixingareasonablecompensationfortheservicesrenderedbya
lawyer on the basis of quantum meruit, the elements to be
consideredaregenerally
(1)theimportanceofthesubjectmatterincontroversy,
(2)theextentofservicesrendered,and
(3)theprofessionalstandingofthelawyer.
A determination of these factors would indispensably require
nothinglessthanafullblowntrialwhereprivaterespondentscan
adduceevidencetoestablishtherighttolawfulattorney'sfeesand
forpetitionertoopposeorrefutethesame.Thetrialcourthasthe
principaltaskoffixingtheamountofattorney'sfees.Hence,
the necessity of a hearing is beyond cavil. Rilloza, et. al. v.
EasternTelecommunicationsPhils.,Inc.,G.R.No.104600[1999]
Champertouscontract
"1.Onallcommissionorattorneysfeesthatweshallreceivefrom
ourclientsbyvirtueofthecollectionthatweshallbeabletoeffect
on their accounts, we shall divide fiftyfifty. Likewise you are
entitled to commission, 50/50 from domestic, inheritance and
commercialfromoursaidclientsorinanycriminalcaseswhere
theyareinvolved.
We hold that the said agreement is void because it was
tantamountto malpractice which is "the practice of soliciting
casesatlawforthepurposeofgain,eitherpersonallyorthrough
paid agents or brokers" Sec. 27, Rule 138, Rules of Court).
Malpracticeordinarilyreferstoanymalfeasanceorderelictionof
duty committed by a lawyer. Section 27 gives a special and
technical meaning to the term "malpractice" (Act No. 2828,
amendingsec.21ofActNo.190).TanTekBengv.David,A.C.
No.1261.December29,1983
Agreementtopayallexpensesofproceedings
An agreement whereby an attorney agrees to pay expenses of
proceedingstoenforcetheclient'srightsischampertous [JBP
HoldingCorp.v.U.S.166F.Supp.324(1958)].Suchagreements
are against public policy especially where, as in this case, the
attorneyhasagreedtocarryontheactionathisownexpensein
considerationofsomebargaintohavepartofthethingindispute
[SeeSamplinerv.MotionPicturesPatentsCo.,etal.,255F.242
(1918)].Theexecutionofthesecontracts violatesthefiduciary
relationship between thelawyerandhisclient,forwhichthe
 former must incur administrative sanctions. Atty. Orocio v.
Angulanet.al.,G.R.No.17989293,January30,2009
Fundinglitigation
[A]slongaslitigationandaccesstothecourtsremainexpensive,
then anyone who has a right that stands in need ofvindication
shouldbeabletoobtainfundingfromanyonewillingtoofferit
andonwhatevertermsitisoffered.
Neuberger, From Barretry, Maintenance and Champerty to
LitigationFunding,SpeechatGraysInn,May8,2013.
Paythelawfirmnotthehandlinglawyer
Whenaclient employs theservices ofalaw firm,hedoesnot
employtheservicesofthelawyerwhoisassignedtopersonally
handle thecase.Rather,heemploys theentire lawfirm.Inthe
eventthatthecounselappearingfortheclientresigns,thefirmis
boundtoprovideareplacement.
Rilloza,et.al.v.EasternTelecommunicationsPhils.,Inc.,G.R.No.
104600[1999]
Retaininglien
Rule138Sec.37.Attorney'sliens.Anattorneyshallhavealien
uponthefunds,documentsandpapersofhisclient,whichhave
lawfullycomeintohispossessionandmayretainthesameuntil
his lawful fees and disbursements have been paid, and may
applysuchfundstothesatisfactionthereof.Heshallalsohavea
lien to the same extent upon all judgments for the payment of
money, and executions issued in pursuance of such judgments,
whichhehassecuredinalitigationofhisclient,fromandafterthe
timewhenheshallhavecausedastatementofhisclaimofsuch
lien tobeenteredupontherecords ofthecourtrenderingsuch
judgment,orissuingsuchexecution,andshallhavecausedwritten
noticethereoftobedeliveredtohisclientandtotheadverseparty;
andheshallhavethesamerightandpoweroversuchjudgments
andexecutions ashisclientwouldhavetoenforcehislienand
securethepaymentofhisjustfeesanddisbursements."
Charginglien
Rule138Section37.xxxHeshallalsohavealientothesame
extent upon all judgments for the payment of money, and
executionsissuedinpursuanceofsuchjudgments,whichhehas
securedinalitigationofhisclient,fromandafterthetimewhenhe
shall have caused a statement of his claim of such lien to be
enteredupontherecordsofthecourtrenderingsuchjudgment,or
issuing such execution, and shall have caused written notice
thereoftobedeliveredtohisclientandtotheadverseparty;andhe
shall have the same right and power over such judgments and
executionsashisclientwouldhavetoenforcehislienandsecure
thepaymentofhisjustfeesanddisbursements."
Theremustbeafavorablejudgment
Acharginglientobeenforceableassecurityforthepaymentof
attorney'sfeesrequiresasaconditionsinequanonajudgmentfor
moneyandexecutioninpursuanceofsuchjudgmentsecuredinthe
mainactionbytheattorneyinfavorofhisclient.Acharginglien
presupposesthattheattorneyhassecuredafavorablemoney
judgment for his client. Rilloza, et. al. v. Eastern
TelecommunicationsPhils.,Inc.,G.R.No.104600[1999]
The following are the circumstances to be considered in
determiningthecompensationofanattorney
1.theamountandcharacteroftheservicesrendered;
2.thelabor,time,andtroubleinvolved;
3.thenatureandimportanceofthelitigationorbusinessinwhichthe
serviceswererendered;theresponsibilityimposed;
4.theamountofmoneyorthevalueofthepropertyaffectedbythe
controversy,orinvolvedintheemployment,
5. the skill and experience called for in the performance of the
services;
6.theprofessionalcharacterandsocialstandingoftheattorney;
7.theresultssecured;and
8. whether or not the fee is absolute or contingent, it being a
recognizedrulethatanattorneymayproperlychargeamuchalarger
feewhenitistobecontingentthatwhenitisnot.
9.Thefinancialabilityofthedefendantmayalsobeconsiderednotto
enhance the amount above a reasonable compensation, but to
determinewhetherornotheisabletopayafairandjustcompensation
fortheservicesrendered,orasincidentinascertainingtheimportance
andgravityoftheinterestsinvolvedinthelitigation.
Forumdoesnotqualifypaymentofcompensation
We have noted in the beginning that the services here were
renderedinacaseofanadministrativenature.Butthat doesnot
altertheapplicationoftheproperrule:
Professional services, to prepare and advocate just claims for
compensation, are as legitimate as services rendered in court in
arguingacausetoconvinceacourtorjurythattheclaimpresentedor
thedefensesetupagainstaclaimpresentedbytheotherpartyoughtto
beallowedorrejected.Partiesinsuchcasesrequireadvocates;andthe
legalprofessionmusthavearighttoacceptsuchemploymentand
toreceivecompensationfortheirservices.DeGuzmanv.Visayan
RapidTransportCo.Inc.G.R.No.46396September30,1939
Written contract is not required to prove lawyerclient
relationship
Theabsenceofawrittencontractwillnotprecludethefindingthat
therewasaprofessionalrelationshipwhichmeritsattorney'sfees
forprofessionalservicesrendered.Documentaryformalismisnot
anessentialelementintheemploymentofanattorney;thecontract
maybeexpressorimplied.Toestablishtherelation,itissufficient
that the advice and assistance of an attorney is sought and
received in any matter pertinent to his profession. An
acceptanceoftherelationisimpliedonthepartoftheattorney
fromhisactingonbehalfofhisclientinpursuanceofarequest
fromthelatter.Deevs.CourtofAppeals,G.R.No.77439,August
24,1989
Optionstoenforcerighttoprofessionalfees
Alawyermayenforcehisrighttohisfeesbyfilingthenecessary
petitionasanincidentofthe mainaction inwhichhisservices
wererenderedor inanindependentsuitagainsthisclient.The
formerispreferable toavoidmultiplicity ofsuits. Pinedav.
Atty.DeJesus,et.al.G.R.No.155224August23,2006
Onlyreasontofilesuit
Rule 20.4 of the Code of Professional Responsibility advises
lawyers to avoid controversies with clients concerning their
compensation and to resort to judicial action only to prevent
imposition, injustice or fraud. Suits to collect fees should be
avoided and should be filed only when circumstances force
lawyerstoresorttoit.Pinedav.Atty.DeJesus,et.al.G.R.No.
155224August23,2006
Twocommonlyacceptedconceptsofattorneysfees
In its ordinary concept, an attorneys fee is the reasonable
compensationpaidtoalawyerbyhisclientforthelegalservices
hehasrenderedtothelatter.Thebasisofthiscompensationisthe
factofhisemploymentbyandhisagreementwiththeclient.
Initsextraordinaryconcept,anattorneysfeeisanindemnityfor
damagesorderedbythecourttobepaidbythelosingpartyina
litigation. Thebasisofthisisanyofthecasesprovidedbylaw
where such award can be made, such as those authorized in
Article2208,CivilCode,andispayablenottothelawyerbutto
theclient,unlesstheyhaveagreedthattheawardshallpertainto
thelawyerasadditionalcompensationoraspartthereof.Traders
Royal Bank Employees UnionIndependent v. NLRC G.R. No.
120592.March14,1997
Awardof(extraordinary)attorneysfeeisdiscretionary
ThepowerofthisCourt toreduceorevendeletetheawardof
attorneys fees cannot be denied. Lawyers are officers of the
 Court and they participate in the fundamental function of
administeringjustice.Whentheytooktheiroath,theysubmitted
themselves to the authority of the Court and subjected their
professionalfeestojudicialcontrol.Pinedav.Atty.DeJesus,et.
al.G.R.No.155224August23,2006
ContingentfeeagreementdoesnotviolateArticle1491(5)ofthe
NCC
The contract of services did not violate said provision of law.
Article1491oftheCivilCode,specificallyparagraph5thereof,
prohibitslawyersfromacquiringbypurchaseevenatapublicor
judicial auction, properties and rights which are the objects of
litigationinwhichtheymaytakepartbyvirtueoftheirprofession.
The said prohibition, however, applies only if the sale or
assignmentofthepropertytakesplaceduringthependencyof
thelitigationinvolvingtheclient'sproperty.
Hence,acontractbetweenalawyerandhisclient stipulatinga
contingentfeeisnotcoveredbysaidprohibitionunderArticle
1491(5)oftheCivilCodebecausethepaymentofsaidfeeisnot
madeduringthependencyofthelitigationbutonlyafterjudgment
hasbeenrenderedinthecasehandledbythelawyer.Infact,under
the1988CodeofProfessionalResponsibility,alawyermayhavea
lienoverfundsandpropertyofhisclientandmayapplysomuch
thereof as may be necessary to satisfy his lawful fees and
disbursements. Fabillo and Tana v. IAC G.R. No. L68838
[1991]
Meredemandfordeliveryofthelitigatedpropertyisnotunethical
Intheinstantcase,therewasnoactualacquisitionoftheproperty
inlitigationsincetherespondentonlymadeawrittendemandfor
its delivery which the complainant refused to comply. Mere
demandfordeliveryofthelitigatedpropertydoesnotcause
the transfer of ownership, hence, not a prohibited transaction
withinthecontemplationofArticle1491.Ramosv.Atty.Ngaseo,
A.C.No.6210[2004]
Commission/referralfeesprohibited
By openly admitting he divided the Php70,000.00 to other
individuals ascommission/referralfeesrespondentviolatedRule
9.02,Canon9oftheCodeofProfessionalResponsibilitywhich
providesthatalawyershallnotdivideorstipulatetodivideafee
for legal services with persons not licensed to practice law.
Lijaucov.Atty.Terrado,A.C.No.6317[2006]
CANON 9 A LAWYER SHALL NOT, DIRECTLY OR
INDIRECTLY,ASSISTINTHEUNAUTHORIZEDPRACTICEOF
LAW.
Rule9.02Alawyershallnotdivideorstipulatetodivideafeefor
legalserviceswithpersonsnotlicensedtopracticelaw,except:
(a) Where there is a preexisting agreement with a partner or
associatethat,uponthelatter'sdeath,moneyshallbepaidovera
reasonableperiodoftimetohisestateortopersonsspecifiedinthe
agreement;or
(b) Where a lawyer undertakes to complete unfinished legal
businessofadeceasedlawyer;or
(c)Wherealawyerorlawfirmincludesnonlawyeremployeesin
aretirementplaneveniftheplanisbasedinwholeorinpart,ona
profitsharingagreement.
Qualityoflegalserviceshouldnotvaryifrenderedforfree
Itistruethatheisacourtappointedcounsel.Butwedosaythatas
such counseldeoficio,hehas ashighadutytotheaccusedas
oneemployedandpaidbydefendanthimself.Because,asinthe
caseofthelatter,hemustexercisehisbesteffortsandprofessional
abilityinbehalfofthepersonassignedtohiscare.Hisistorender
effective assistance. The accused defendant expects of him due
diligence,notmereperfunctoryrepresentation.Wedonotaccept
theparadoxthatresponsibilityislesswherethedefendedparty
ispoor.InRe:Atty.Adriano,G.R.No.L26868[1969]
 Rule14.04Alawyerwhoacceptsthecauseofapersonunableto
pay his professional fees shall observe the same standard of
conductgoverninghisrelationswithpayingclients.
Caselaw
Mr.CulpeppersentMr.Colealetterinwhichheconfirmedthathe
wouldaccepttherepresentation onacontingentfee basis of
onethird"ofwhateveradditionalpropertyormoneywecangetfor
you.
AfternegotiationbetweenMr.Culpepperandcounselfortheestate
of Mr. Cole's mother, Mr. Cole was offered property worth
$21,600.03overandabovewhathewouldhavereceivedunderthe
terms of the decedent's will. Mr. Culpepper thought the
compromisewasreasonableandrecommendedtoMr.Colethathe
accepttheoffer. However,Mr.Colerefusedtosettlehisclaim
forthatamount,believinghewasentitledtoalargershareof
hismother'ssuccessionasaforcedheir.WhenMr.Culpepper
refused to file suit in the matter, Mr. Cole terminated his
representation.
Pursuant to the parties' agreement, Mr. Culpepper is entitled to
onethird"ofwhateveradditionalpropertyormoney"heobtained
onbehalfofMr.Cole.ItisundisputedthatMr.Colerecovered
no additional property or money as a result of the litigation
against his mother's estate. Because Mr. Cole obtained no
recovery, it follows that Mr. Culpepper is not entitled to any
contingentfee.
Nonetheless,Mr.Culpepperurgesustofindthathiscontingency
shouldattachtothesettlementofferheobtainedonbehalfofhis
client, even though his client refused to accept that offer.
AccordingtoMr.Culpepper,hedidtheworkforwhichMr.Cole
retained him, and he is therefore entitled to onethird of the
amountofferedinsettlement,notwithstandingMr.Cole'srejection
ofthesettlementoffer.
Decision
ToallowMr.Culpeppertorecoveracontingentfeeunderthese
circumstances wouldpenalizeMr.Coleforexercisinghisright
torejectthesettlement.Wefindnostatutoryorjurisprudential
supportforsuchaproposition.Indeed,thiscourthasrejectedany
interpretationoftheRulesofProfessionalConductwhich would
placerestrictionsontheclient'sfundamentalrighttocontrol
thecase.
In summary, we find that Mr. Culpepper did not obtain any
recoveryonbehalfofMr.Cole.Intheabsenceofarecovery,it
followsthatMr.Culpeppercannotcollectacontingentfeeforhis
services.Culpepperv.Cole929So.2d1224[2006]
Acceptance fee is not necessary to establish lawyerclient
relationship
Alawyerclientrelationshipwasestablished fromtheveryfirst
moment complainant asked respondent for legal advice
regarding the formers 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
afterwardhandlethecaseforwhichhisservicehadbeensought.
Burbev.Atty.MagultaACNo.99634.June10,2002
Moneydownfirstpolicyisunethical
Theimproprietyliesinthefactthatshesuggestedthatcomplainant
borrowmoney fromDomingoNatavio forthepayment thereof.
This act impresses upon the Court that respondent would do
nothing to the cause of complainants motherinlaw unless
paymentoftheacceptancefeeismade.Herdutytorenderlegal
servicestoherclientwithcompetenceanddiligence shouldnot
depend on the payment of acceptance fee. Ceniza v. Atty.
Rubia,A.C.No.6166,October2,2009
I,dosolemnlyswearthatxxxIwilldelaynomanformoneyxxx.
Establishment of lawyerclient relationship not influenced by
personalaffiliation
Respondent takes further refuge in the intimate and close
relationship existing between himself and the complainants
family on the basis of which his legal services were purely
gratuitousorsimplyanactofafriendforafriendwithno
considerationinvolved.Unfortunately,hiseffortstoredeemthe
foreclosedproperty,asalreadystated,didnotproducethedesired
result because the mortgagee would not budge anymore and
wouldnotacceptthesumoffered.
Thus,therespondentconcludedthattherewas,strictlyspeaking,
noattorneyclient [relationship] existingbetween them. Rather,
rightfromthestart[,]everythingwassortofpersonal,headded.
xxxThiscontentionhasnomerit.Juniov.Atty.Grupo,A.C.No.
5020.December18,2001
Righttoalienversusdutytoaccount
Lawyers who convert the funds entrusted to them are in gross
violationofprofessionalethicsandareguiltyofbetrayalofpublic
confidenceinthelegalprofession.Itmaybetruethattheyhave
alien upontheclients funds,documents andotherpapers that
have lawfully come into their possession; that they may retain
themuntiltheirlawfulfeesanddisbursementshavebeenpaid;and
thattheymayapplysuchfundstothesatisfactionofsuchfeesand
disbursements. However, these considerations do not relieve
themoftheirdutytopromptlyaccountforthemoneysthey
received. Their failure to do so constitutes professional
misconduct.Inanyevent,theymuststillexertallefforttoprotect
theirclientsinterestwithintheboundsoflaw. Burbev.Atty.
MagultaACNo.99634.June10,2002
Dutyofaccounting
Whenalawyer receivesmoneyfromaclientforaparticular
purposeinvolvingtheclientattorneyrelationship,heisboundto
renderanaccounting totheclientshowingthatthemoneywas
spentforthatparticularpurpose.Ifthelawyerdoesnotusethe
moneyfortheintendedpurpose,hemustimmediatelyreturnthe
money to his client. Navarro & Presbitero, A.C. No. 9872,
January28,2014
Changeofattorney
Section26ofRule138oftheRevisedRulesofCourtprovides:
"Sec.26. ChangeofattorneysAnattorneymayretireatany
timefromanyactionorspecialproceeding,bythewrittenconsent
ofhisclientfiledincourt.Hemayalsoretireatanytimefroman
actionorspecialproceeding, withouttheconsentofhisclient,
should the court, on notice to the client and attorney, and on
hearing,determinethatheoughttobeallowedtoretire.Incaseof
substitution, the name of the attorney newly employed shall be
enteredonthedocketofthecourtinplaceoftheformerone,and
writtennoticeofthechangeshallbegiventotheadverseparty.
Withdrawalofcounsel
A lawyer may retire at any time from any action or special
proceeding withthewrittenconsent ofhisclientfiledincourt
andcopythereofservedupontheadverseparty.Shouldtheclient
refusetogivehisconsent,thelawyermustfileanapplicationwith
thecourt.Thecourt,onnoticetotheclientandadverseparty,shall
determine whether he ought to be allowed to retire. The
applicationforwithdrawalmustbebasedonagoodcause.
Orcinov.Atty.Gaspar,A.C.No.3773.September24,1997
Groundsforwithdrawal
Respondent'swithdrawalwasmadeonthegroundthat"thereno
longerexist[ed]thexxxconfidence"betweenthemandthatthere
hadbeen"seriousdiffferencesbetweenthemrelatingtothemanner
ofprivateprosecution.Orcinov.Atty.Gaspar,A.C.No.3773.
September24,1997
Courtapprovalrequiredbeforecounselcanwithdraw
 Assuming, nevertheless, that respondent was justified in
terminatinghisservices,he,however,cannotjustdosoandleave
complainantinthecoldunprotected. Thelawyerhasnorightto
presume that his petition forwithdrawal will begranted bythe
court.Untilhiswithdrawalshallhavebeenapproved,thelawyer
remainscounselofrecordwhoisexpectedbyhisclientaswellas
bythecourttodowhattheinterestsofhisclientrequire.Hemust
stillappearonthedateofhearingfortheattorneyclientrelation
doesnotterminateformallyuntilthereisawithdrawalofrecord.
Orcinov.Atty.Gaspar,A.C.No.3773.September24,1997
Whatisacontingencycontract
The client and his lawyer may enter into a written contract
wherebythelatterwouldbepaidattorneysfeesonlyifthesuit
or litigation ends favorably to the client. This is called a
contingencyfeecontract. Theamountofattorneysfeesinthis
contract may be on a percentage basis, and a much higher
compensation is allowed in consideration of the risk that the
lawyermaygetnothingifthesuitfails.
In the case at bar, the nonEPIRA separated members and
petitioner voluntarily entered into a contingency fee contract
whereby petitioner did not receive any acceptance fee or
appearance/meetingfee.Atty.Orociov.Angulanet.al.,G.R.No.
17989293[2009]
Whycontingencyfeeisallowed
Contingentfeecontractsarepermittedinthisjurisdictionbecause
they redound to the benefit of the poor client and the lawyer
especially in cases where the client has meritorious cause of
action,butnomeanswithwhichtopayforlegalservicesunless
hecan,withthesanctionoflaw,makeacontractforacontingent
feetobepaidoutoftheproceeds oflitigation.Oftentimes,the
contingentfeearrangementistheonlymeansbywhichthepoor
clientscanhavetheirrightsvindicatedandupheld.Atty.Orocio
v.Angulanet.al.,G.R.No.17989293[2009]
Contingentfeearrangementmustbewritten
Itbearstostressthatacontingentfeearrangementisvalidinthis
jurisdictionandisgenerallyrecognizedasvalidandbinding but
mustbelaiddowninanexpresscontract.FelicisimaMendoza
vda.DeRobosav.Atty.Mendoza&Atty.Navarro,Jr.,A.C.no.
6056,September09,2015
Limitationsofacontingencyagreement
However,incaseswherecontingentfeesaresanctionedbylaw,the
sameshouldbereasonableunderallthecircumstancesofthe
case,andshouldalwaysbesubjecttothesupervisionofacourt,
astoitsreasonableness,suchthatunderCanon20oftheCodeof
ProfessionalResponsibility,alawyeristaskedtochargeonlyfair
andreasonablefees. Atty.Orociov.Angulanet.al.,G.R.No.
17989293[2009]
Contingentfeetoawitness
Witnessesshouldalwaystestifytruthfullyandshouldbefreefrom
anyfinancialinducementsthatmighttemptthemtodootherwise.
Alawyershould notpayoragreetopayanonexpertwitness
an amount in excess of reimbursement for expenses and
financial loss incident to being a witness; however, a lawyer
maypayoragreetopayanexpertwitnessa reasonablefeefor
servicesasanexpert. Butinnoeventshouldalawyerpayor
agree to pay a contingent fee to any witness. Swafford v.
Harris,967S.W.2d319(1998)
Whenisanattorneysfeesunconscionable?
Attorneysfeesareunconscionableiftheyaffrontonessenseof
justice, decency or reasonableness, or if they are so
disproportionatetothevalueoftheservicesrendered.Insucha
case,courtsareempoweredtoreducetheattorneysfeeorfixa
reasonable amount thereof taking into consideration the
surroundingcircumstancesandtheestablishedparameters.Atty.
Orociov.Angulanet.al.,G.R.No.17989293[2009]

Lawyers compensation for professional services rendered is
subjecttothesupervisionofthecourt
Under Section 24, Rule 138 of the Rules of Court, a written
contractforservicesshallcontroltheamounttobepaidtherefor
unlessfoundbythecourttobeunconscionableorunreasonable.
Itfollowsthatalawyerscompensationforprofessionalservices
rendered is subject to the supervision of the court, not just to
guarantee that the fees he charges and receives remain
reasonableandcommensuratewiththeservicesrendered,butalso
tomaintainthedignityandintegrityofthelegalprofessionto
whichhebelongs.Upontakinghisattorneysoathasanofficerof
the court, a lawyer submits himself to the authority of the
courtstoregulatehisrighttochargeprofessionalfees. Atty.
Orociov.Angulanet.al.,G.R.No.17989293[2009]
CHAPTER5
Thelawyerandthe[Law]Firm
ChoiceofaFirmname
Rule3.02oftheCodeofProfessionalResponsibilitywhichstates
that in the choice of a firm name, no false, misleading or
assumednameshallbeused.
Nonamenotbelongingtoanyofthepartnersorassociatesmay
beusedinthefirmnameforanypurpose. PPv.Gonzalez,Jr.,
G.R.No.139542June10,2003
Negligenceofclerksinalawfirm
TimeandagaintheCourthasadmonishedlawfirmstoadopta
systemofdistributingpleadingsandnotices,wherebylawyers
workingthereinreceivepromptlynoticesandpleadingsintended
forthem,sothattheywillalwaysbeinformedofthestatusoftheir
cases.
TheirCourthasalsooftenrepeatedthatthe negligenceofclerks
whichadverselyaffectthecaseshandledbylawyers, isbinding
uponthelatter.B.R.SebastianEnterprises,Inc.v.CA,G.R.No.
L41862[1992]
Lawfirmrepresentstheclient
Respondent judge should not have accommodated so many
MotionsforPostponementfiledbythethenailingAtty.Rosendo
CastilloSr.because alawfirm(Castillo&Castillo),towhich
the latter belonged, was really representing the defendants,
there certainly were other competent lawyers who could have
handledthematter. Sps.Reaportv.JudgeMariano,A.M.No.
MTJ001253.July11,2001
Mainandbranchofficeconstituteonepersonality
Petitioner'scounselwasandisthefirmofLedesma,Saludoand
Associates (and not any particular member or associate of that
firm)whichfirmhappenstohaveamainofficeinMakatianda
branchofficeinCebuCity.TheCourtnotesthatboththemainand
branch offices operate under one and the same name, Saludo
LedesmaandAssociates.Havingrepresenteditselftothepublic
ascomprisingasinglefirm,LSAshouldnotbeallowedatthis
point topretendthatitsmainofficeanditsbranchofficein
effectconstituteseparatelawfirmswithseparateanddistinct
personalitiesandresponsibilities.OuanoArrastreServiceInc.v.
JudgeAleonor,G.R.No.97664October10,1991
Deathofahandlinglawyerofthefirm
Hence,thedeathofthelatterdidnotextinguishthelawyerclient
relationship between said firm and petitioner. B.R. Sebastian
Enterprises,Inc.v.CA,G.R.No.L41862[1992]
DutiesofFirmsandLawyersWhenSomeoneLeaves
A.EthicalObligationtoCommunicatetoCertainclients
B.TrustAccountMonies
C.FeeDivisionsInGeneral
D.Files
E.Phones
 PartnersandAssociatesLeavingMustAbideByFiduciaryDuties
toFirm
EthicalObligationtoCommunicatetoCertainClients
1)lawyershaveadutytotelltheirclientsthattheyareleaving.
2) clients are not chattels the firm and departing lawyer cannot
decidewhichclientscanstayandwhichcangotheclientsdecide.
Ruleofconfidentialityinalawfirm
Rule21.04Alawyermaydisclosetheaffairsofaclientofthe
firm to partners or associates thereof unless prohibited by the
client.
Dutytonotifyaclient
The departing lawyer and responsible members of the law
firmwhoremainhaveanethicalobligationtoassurethatprompt
noticeisgiventoclientsonwhoseactivemattersshecurrentlyis
working.
Rule18.04Alawyershallkeeptheclientinformedofthestatus
ofhiscase andshall respondwithinareasonabletimetothe
client'srequestforinformation.
Lawyerwhohashadsignificantpersonalcontacts
Adeparting lawyerwhohashadsignificantpersonalcontacts
withtheclient,shouldinformtheclientthatthelawyerisleaving
thefirm.
Note:thisdoesnotmeanthatanassociatewhometaclientonceor
twice and has prepared discovery requests has had significant
personalcontactsthestandardisthatiftheclientwereasked
which lawyer(s) at the firm represents you? the lawyers
mentioned would be those that have hadsignificant personal
contacts.
Ethicalobligationsofdepartinglawyers
Inadditiontotheethicalobligationsdepartinglawyershave,they
alsomustavoidinterferingwiththecontractsthefirmhaswith
existingclients.
However,thecautionto avoidstealingclients mustbebalanced
againstthedepartinglawyersethicalobligationtonotifyclients
thatanattorneyisdeparting.
Howtotellclients
Thepreferredmethodofadvisingfirmclientsabouttheimpending
departure of an attorney is a joint letter from the firm and
departing lawyer to all clients with whom the lawyer had
significantpersonalcontacts.
Alettershouldadvisetheclients
Whenthelawyerisleaving
Theclienthastheoptionofgoingwiththelawyer,stayingwiththe
firm,orgettinganewfirm
Howanyadvancefeedepositwillbetreated
Aplacefortheclienttosignandreturntheletter,withinstructions
onwheretheirfileshouldgo.
Separatelettersmaybesentbythelawyer(orthefirm)toclients
withwhomthedepartinglawyerhadsubstantialpersonalcontact
aslongas:
1)thelettersdonotdisparagethefirmorthelawyer;and
2)thelettersdonotinvolveimpropersolicitation
TrustAccountMonies
Clientsthathavegiventhefirmanadvancefeeoradvancecost
deposittakethemoneywiththem(lessearnedfeesandcosts),if
they go with the departing lawyer. While simple in theory,
applicationsometimescanbeproblematic.
Theold firmshouldwriteacheck,consistentwiththewritten
instructionsoftheclient,toeithertheclientortothetrustaccount
forthedepartedlawyersnewfirm.
FeeDivisionsInGeneral
In contingentfee cases where some or much ofthe work was
performed at the existing firm, but the case is going with the
departing lawyer, the firm and lawyer must agree how the
contingentfeewillbeapportionedamongthem,basedupontheir
respectivecontributionstothecase(i.e.,quantummeruit)orbased
upontermsinthepartnershipagreement.
Butcanadepartinglawyerkeepallofacontingentfeecasethat
came
theoldfirmbutultimatelysettledwhenthelawyerwasatanew
firm?
Probablynot,accordingtoseveralcases.
Alawyermaybeentitledtoonlyhispartnershipportionofthefees
earnedonacase,evenifheperformedmostoftheworkafterthe
dissolutionofthefirm.
Nevertheless,somecourtswillfindthatwhenalawyerleavesa
firmandtakesacasewithhim,hemaybeentitledtothequantum
meruitvalueoftheworkheperformed.
Clients interests not be prejudiced when the attorney/client
relationshipisterminated
Donotholdclientfileshostage,eveniftheclientthatisleaving
withthelawyerowesthecurrentfirmmoney.
Model Rule 1.16(d) requires that the clients interests not be
prejudiced when the attorney/client relationship is terminated.
Havetheclientorarunnerfromthedepartedlawyersnewfirm
signforthefile,ifitisgoingtothenewfirm.
Also, it is appropriate to request in a litigation matter that the
departedlawyerfileasubstitutionofcounseloratleastnotification
ofaddresschangewiththecourt,toassurethattheoldfirmisstill
notlistedascounselofrecord.
Clientsfile=paperandelectronicdocuments
Whenaclient asksfortheirfile,youmustgivethem boththe
paperandtheelectronicdocumentsincludingemails.
Andrememberthattheclientfileisclientproperty,soyoucannot
charge the client for the cost of downloading everything to
disks.
Phones
Itis ethicallyinappropriate tohavethereceptionisttellcallers
whoarelookingforalawyerwhorecentlyleftthefirmwedont
know where he is. That game is not professional and not
into acceptable.
Assurethatallstaffareinstructedtoprovidethedepartedlawyers
phonenumberandmailingaddress.
Also,assignapartnertoansweranyclientinquiries.
Moreover,mailshouldbeforwardedtothedepartedlawyer.
PartnersandAssociatesLeavingMustAbideByFiduciaryDuties
to
Firm
Itisworthnotingagainthatlawyerswhoareleavingafirmhave
certain fiduciary duties to the firm to not interfere with the
contracts thatthefirmhaswithexistingclients,to notusefirm
resourcestosetuptheirnewfirm,andtonotattempttosteal
awayassociatesandstaffwhilethelawyersarestillworkingfor
thefirm.LyndaC.Shely
Alawyerwhosespouseisassociatedwithafirmrepresentingan
opposingparty
[T]he lawyer should advise the client of all circumstances that
mightcauseonetoquestiontheundividedloyaltyofthelawfirm
andlettheclientmakethedecisionastoitsemployment.Ifthe
clientprefersnottoemployalawfirmcontainingalawyerwhose
spouseisassociatedwithafirmrepresentinganopposingparty,
thatdecisionshouldberespected.
WONthefirmofVelasquez,Rodriguez,Respicio,Ramos,Nidea,
and PradomaycallitselfAlawFirmOfSt.ThomasMoreand
AssociateMembers.
ItimpliesthatSt.ThomasMoreisaLawFirmwheninfactitis
not it would also convey to the public the impression that the
lawyersaremembersofthelawfirmwhichdoesnotexist.Tothe
public,itwouldseemthatthepurposeorintentionofaddingThe
LawFirmofSt.ThomasMoreandAssociatesMembersistobask
inthenameofaSaint,althoughthatmaynotreally,bethepurpose
orintentionofthelawyers.Theappellationonlytendstoconfuse
the public and in a way demean both the saints and the legal
professionwhosemembersmustdependontheirownnameand
recordandmeritandnotonthename/gloryofotherpersonsliving
ordead.PPv.Gonzalez,Jr.,G.R.No.139542June10,2003
DutiesWhenSwitchingFirms
DutiesofLawyersInterviewingWithOtherFirms
ScreeninganInfectedLateralHire
DeathofaLawyer
CHAPTER6
Confidentiality&privilegecommunicationsbetweenlawyersand
clients
CANON15Alawyershallobservecandor,fairnessandloyalty
inallhisdealingsandtransactionswithhisclients
Rule15.02.Alawyershallbeboundbytheruleon privilege
communication in respect of matters disclosed to him by a
prospectiveclient.
Rule 130 Sec. 24.Disqualification by reason of privileged
communication. The following persons cannot testify as to
matterslearnedinconfidence:
(b)Anattorneycannot,withouttheconsentofhisclient,be
examinedastoanycommunicationmadebytheclienttohim,
orhisadvicegiventhereoninthecourseof,orwithaviewto,
professional employment, nor can an attorney's secretary,
stenographer,orclerkbeexamined,withouttheconsentofthe
clientandhisemployer,concerninganyfacttheknowledgeof
whichhasbeenacquiredinsuchcapacity;
Canon21Alawyershallpreservetheconfidenceandsecretsofhis
client even after the
attorneyclientrelationisterminated
Rule21.01Alawyershallnotrevealtheconfidencesorsecretsof
hisclientexcept;
(a)Whenauthorizedbytheclientafteracquaintinghimofthe
consequencesofthedisclosure;
(b)Whenrequiredbylaw;
(c)Whennecessarytocollecthisfeesortodefendhimself,
hisemployeesorassociatesorbyjudicialaction.
Rule21.02Alawyershallnot,tothedisadvantageofhisclient,
useinformationacquiredinthecourseofemployment,norshallhe
usethesame tohisownadvantageorthatofathirdperson,
unless the client with full knowledge of the circumstances
consentsthereto.
Rule21.03Alawyershallnot,withoutthewrittenconsent of
his client, give information from his files to an outside agency
seeking such information for auditing, statistical, bookkeeping,
accounting,dataprocessing,oranysimilarpurpose.
Rule21.04Alawyermaydisclosetheaffairsofaclientofthe
firm to partners or associates thereof unless prohibited bythe
client.
Rule 21.05 A lawyer shall adopt such measures as may be
requiredtopreventthosewhoseservicesareutilizedbyhim,from
disclosingorusingconfidencesorsecretsoftheclients.
Rule21.06Alawyershallavoidindiscreetconversationabouta
client'saffairsevenwithmembersofhisfamily.
Rule21.07Alawyershallnotrevealthathehasbeenconsulted
aboutaparticularcaseexcepttoavoidpossibleconflictofinterest.
Rule138oftheRulesofCourt
 Sec.20.Itisthedutyofanattorney:(e)tomaintaininviolatethe
confidence,andateveryperiltohimself,topreservethesecrets
ofhisclient,andtoacceptnocompensationinconnectionwithhis
client's business except from him or with his knowledge and
approval.
Canon17.Alawyerowesfidelitytothecauseofhisclientandhe
shallbemindfulofthetrustandconfidencereposedinhim.
RevisedPenalCode
Art.209.Betrayaloftrustbyanattorneyorsolicitor.Revelation
ofsecrets. Inadditiontotheproperadministrativeaction,
xxx shall be imposed upon any attorneyatlaw or solicitor
(procuradorjudicial)who,byanymaliciousbreachofprofessional
dutyorofinexcusablenegligenceorignorance,shallprejudicehis
client,orrevealanyofthesecretsofthelatterlearnedbyhimin
hisprofessionalcapacity.
Thesamepenaltyshallbeimposeduponan attorneyatlaw or
solicitor (procurador judicial) who, having undertaken the
defenseofaclientorhavingreceivedconfidentialinformation
fromsaidclientinacase,shall undertakethedefenseofthe
opposingpartyinthesamecase,withouttheconsentofhisfirst
client.
Confidentialityisnotthesameastheattorneyclientprivilege
Thelawyersdutyofconfidentiality(anethicalduty)isnotthe
sameastheclientsrighttoasserttheattorneyclientprivilege(a
ruleofevidence).
The attorney/client privilege extends only to communications
betweenlawyersandclientsrelatingtolegalservicesandwhich
theclientreasonablybelievesisconfidential.
Anydisclosuremaywaivetheattorney/clientprivilegeastoother
otherwiseprotectedmatters;notsowiththedutyofconfidentiality.
The privilege applies only to limiting testimony in a legal
proceeding. The duty of confidentiality limits voluntary
disclosuresanywhere.
Whylawyerclientrelationshipsrequiresconfidentiality
Considerations favoring confidentially in lawyerclient
relationshipsaremanyandserveseveralconstitutionalandpolicy
concerns.Intheconstitutionalsphere,theprivilegegivesfleshto
oneofthemostsacrosanctrightsavailabletotheaccused,theright
to counsel. If a client were made to choose between legal
representationwithouteffectivecommunicationanddisclosureand
legalrepresentationwithallhissecretsrevealedthenhemightbe
compelled,insomeinstances,toeitheropttostayawayfromthe
judicialsystem or tolosetherighttocounsel. Ifthepriceof
disclosureistoohigh,orifitamountstoselfincrimination,then
theflowofinformationwouldbecurtailedtherebyrenderingthe
right practically nugatory. The threat this represents against
another sacrosanct individual right, the right to be presumed
innocent is at once selfevident. Regala et. al. v.
Sandiganbayan,G.R.No.105938[1996]
ExtentofConfidentialityRule
Theconfidentialityrule,forexample,appliesnotonlytomatters
communicated in confidence by the client but also to all
informationrelatingtotherepresentation,whateveritssource.A
lawyermaynotdisclosesuchinformationexceptasauthorizedor
requiredbytheRulesofProfessionalConductorotherlaw.
Lawyersdutytokeeptheconfidentiality
Aneffectivelawyerclientrelationshipislargelydependentupon
the degree of confidence which exists between lawyer and
client which in turn requires a situation which encourages a
dynamic and fruitful exchange and flow of information. It
necessarilyfollowsthatinordertoattaineffectiverepresentation,
thelawyermustinvoketheprivilegenotasamatterofoptionbut
asamatterofdutyandprofessionalresponsibility.Regalaet.
al.v.Sandiganbayan,G.R.No.105938[1996]
Dutyoflawyerwhenreceivingamaterialnotintendedforhim
Alawyerwhoreceivesonanunauthorizedbasismaterialsofan
adverse party that she knows to be privileged or confidential
should,uponrecognizingtheprivilegedorconfidentialnatureof
the materials, either refrain from reviewing such materials or
review them only to the extent required to determine how
appropriatelytoproceed;
She should notify her adversary's lawyer that she has such
materialsandshouldeitherfollowinstructionsoftheadversary's
lawyerwithrespecttothedispositionofthematerials,orrefrain
fromusingthematerialsuntiladefinitiveresolutionoftheproper
disposition of the materials is obtained from a court. ABA
Comm. on Ethics and Prof'l Responsibility, Formal Op. 382
(1994).
GeneralRuleonclientsidentity
As a matter of public policy, a client's identity should not be
shroudedinmystery.Underthispremise,thegeneralruleinour
jurisdictionaswellasintheUnitedStatesisthatalawyermaynot
invoketheprivilegeandrefusetodivulgethenameoridentityof
thisclient. Regalaet.al.v.Sandiganbayan,G.R.No.105938
[1996]
Reasonsadvancedforthegeneralrule
First,thecourthasarighttoknowthattheclientwhoseprivileged
informationissoughttobeprotectedisfleshandblood.
Second, the privilege begins to exist only after the attorney
client relationship has been established. The attorneyclient
privilegedoesnotattachuntilthereisaclient.
Third,theprivilegegenerally pertainstothesubjectmatterof
therelationship.
Finally, due process considerations require that the opposing
partyshould,asageneralrule,knowhisadversary."Aparty
suingorsuedisentitledtoknowwhohisopponentis."Hecannot
beobligedtogropeinthedarkagainstunknownforces.
Exceptions
1)Clientidentityisprivilegedwhereastrongprobabilityexiststhat
revealing the client's name would implicate that client in the very
activityforwhichhesoughtthelawyer'sadvice.
2)Wheredisclosurewouldopentheclienttocivilliability;hisidentity
isprivileged.
3)Wherethegovernment'slawyershavenocaseagainstanattorney's
client unless, by revealing the client's name, the said name would
furnishtheonlylinkthatwouldformthechainoftestimonynecessary
toconvictanindividualofacrime,theclient'snameisprivileged.
Regalaet.al.v.Sandiganbayan,G.R.No.105938[1996]
Summarizingtheseexceptions,informationrelatingtotheidentity
ofaclient mayfallwithintheambitoftheprivilegewhenthe
client'snameitselfhasanindependentsignificance,suchthat
disclosurewouldthenrevealclientconfidences.Regalaet.al.
v.Sandiganbayan,G.R.No.105938[1996]
Communicationtocommitcrimeorfraudnotprivileged
"Thereasonoftheprinciplewhichholdssuchcommunicationsnot
tobeprivilegedisthatitisnotwithintheprofessionalcharacter
ofalawyertogiveadviceuponsuchsubjects,andthatitisno
part of the professionof an attorney or counselor at law tobe
advisingpersonsastohowtheymaycommitcrimesorfrauds,
or how they may escape the consequences of contemplated
crimesandfrauds.
Therelationofattorneyandclientcannotexistforthepurposeof
counselinconcoctingcrimes.
Theprotectionwhichthelawaffordstocommunicationsbetween
attorneyandclienthasreferencetothosewhicharelegitimately
andproperlywithinthescopeofalawfulemployment,and does
not extend to communications made in contemplation of a
crime,orperpetrationofafraud.Dissentingopinion,Regalaet.
al.v.Sandiganbayan,G.R.No.105938[1996]

Itdoesnotextendtothosemadeincontemplationofacrimeor
perpetrationofafraud.Iftheunlawfulpurposeisavowed,asin
thiscase,thecomplainantsallegedintentiontobribegovernment
officialsinrelationtohiscase,thecommunicationisnotcovered
by the privilege as the client does not consult the lawyer
professionally. Itisnotwithintheprofessionofalawyerto
adviseaclientastohowhemaycommitacrimeasalawyeris
notagunforhire. Thus,theattorneyclientprivilegedoesnot
attach,therebeingnoprofessionalemploymentinthestrictsense.
Genatov.Atty.Silapan,A.C.No.4078.July14,2003
Causeofclientdefenseisnotabsolute
Whateverthecontoursofthelinebetweentraditionallawyering
andcriminalconduct,theymustinevitablybedrawncasebycase.
We refuse to accept the notion that lawyers may do anything,
including violating the law, to zealously advocate their clients'
interests and then avoid criminal prosecution by claiming that
theywere"justdoingtheirjob." UnitedStatesv.Cueto(7th
Cir.1998)151F.3d620,634
Permanentnatureofdutytokeepconfidentiality
The duty to maintain inviolate the clients confidences and
secretsisnottemporarybutpermanent.Itisineffectperpetual
for "it outlasts the lawyers employment" (Canon 37, Code of
Professional Responsibility) which means even after the
relationshiphasbeenterminated,thedutytopreservetheclients
confidencesandsecretsremainseffective.
Thisobligationtopreservetheconfidencesandsecretsofaclient
arisesattheinceptionoftheirrelationship.Theprotectiongivento
theclientisperpetualanddoesnotceasewiththetermination
ofthelitigation,norisitaffectedbythepartysceasingtoemploy
the attorney and retaining another, or by any other change of
relationbetweenthem.Itevensurvivesthedeathoftheclient.
Genatov.Atty.Silapan,A.C.No.4078.July14,2003
Secrets or confidential communications must be obtained in a
lawyerclientrelationship
Thealleged"secrets"ofcomplainantwerenotspecifiedbyhimin
his affidavitcomplaint. Whatever facts alleged by respondent
against complainant were not obtained by respondent in his
professional capacity but as a redemptioner of a property
originally owned by his deceased son and therefore, when
respondent filed the complaint for estafa against herein
complainant,whichnecessarilyinvolvedallegingfactsthatwould
constituteestafa,respondentwasnot,inanyway,violatingCanon
21.xxxToholdotherwisewouldbeprecludinganylawyerfrom
instituting a case against anyone to protect his personal or
proprietaryinterests.Uyv.Atty.Gonzales,A.C.No.5280,March
30,2004
Itmustbestressed,however,thattheprivilegeagainstdisclosure
ofconfidentialcommunicationsorinformationis limitedonlyto
communications which are legitimately and properly within
thescopeofalawfulemploymentofalawyer.Genatov.Atty.
Silapan,A.C.No.4078.July14,2003
Startingpointofdutyofconfidentiality
The moment complainant approached the then receptive
respondent to seek legal advice, a veritable lawyerclient
relationshipevolvedbetweenthetwo.Suchrelationshipimposes
uponthelawyercertainrestrictionscircumscribedbytheethicsof
theprofession.Amongtheburdensoftherelationshipisthatwhich
enjoinsthelawyer,respondentinthisinstance, tokeepinviolate
confidential information acquired or revealed during legal
consultations.Hadjulav.Atty.Madianda,A.C.No.6711[2007]
This duty of confidentiality also extends to prospective clients
eventhoughanattorneyclientrelationshipisneverestablished.
Notadefensetojustifybreachingthedutyofconfidentiality
1. Lawyernotinclinedtohandletheclient'scaseafterconsultation.
2. noformalprofessionalengagementfollowstheconsultation.
3. nocontractwhatsoeverwasexecutedbythepartiestomemorialize
therelationship.
Hadjulav.Atty.Madianda,A.C.No.6711[2007]
The essential factors to establish the existence of the attorney
clientprivilegecommunication
(1)Wherelegaladviceofanykindissought
(2)fromaprofessionallegaladviserinhiscapacityassuch,
(3)thecommunicationsrelatingtothatpurpose,
(4)madeinconfidence
(5)bytheclient,
(6)areathisinstancepermanentlyprotected
(7)fromdisclosurebyhimselforbythelegaladvisor,
(8)excepttheprotectionbewaived.
Hadjulav.Atty.Madianda,A.C.No.6711[2007]
CharacteristicsoftheAttorneyClientPrivilege
1.ACprivilegewherelegaladviceisprofessionallysoughtfroman
attorney.
2.Theclientmustintendtheabovecommunicationtobeconfidential.
3.ACprivilegeembracesallformsofcommunicationandaction.
4. As a general rule, AC privilege also extends to the attorneys
secretary, stenographer, clerk or agent with reference to any fact
requiredinsuchcapacity.
5. The above duty is perpetual and is absolutely privileged from
disclosure.
AttorneyClientPrivilegecannotbeinvoked
1.Thereisconsentorwaiverorclient.
2.Suchisrequiredbylaw.
3.Suchismadetoprotectthelawyersrights(i.e.tocollecthisfeesor
associatesorbyjudicialaction).
4.Whensuchcommunicationaremadeincontemplationofacrimeor
theperpetuationofafraud.
Theprincipleofclientlawyerconfidentialityisgiveneffectby
relatedbodiesoflaw
1. theattorneyclientprivilege,
2. theworkproductdoctrineand
3. theruleofconfidentialityestablishedinprofessionalethics.
Theattorneyclientprivilegeandworkproductdoctrineapplyin
judicialandotherproceedingsinwhichalawyermaybecalled
asawitnessorotherwiserequiredtoproduceevidenceconcerning
aclient.
Theruleofclientlawyerconfidentialityappliesinsituationsother
than those where evidence is sought from the lawyer through
compulsionoflaw.
Confidentialitydoesnotextendtopartnersandassociates
Lawyersinafirmmay,inthecourseofthefirm'spractice,disclose
toeachotherinformationrelatingtoaclientofthefirm,unlessthe
clienthasinstructedthatparticularinformationbeconfinedto
specifiedlawyers.
Rule21.04Alawyermaydisclosetheaffairsofaclientofthe
firmtopartnersorassociatesthereofunlessprohibitedbythe
client.
Protectionfromthirdparty
Thisprohibitionalsoappliestodisclosuresbyalawyerthatdonot
inthemselvesrevealprotectedinformationbutcouldreasonably
leadtothediscoveryofsuchinformationbyathirdperson.
DisclosureoftheClient'sIdentityandWhereabouts
Thegeneralruleisthataclient'sidentityandwhereaboutsarenot
covered by the attorneyclient privilege, as opposed to the
ethicaldutyofconfidentiality.
However, exceptions have been made if disclosure would
implicatetheclientinthecriminalactivityforwhichlegaladvice
wassoughtor"iftheneteffectofthedisclosurewouldbetoreveal
 the nature of a client communication." Charles McCormick,
McCormickonEvidence90(5thed.1999)
Lawyermusttestifyaboutidentityofclientwhopaidwith
counterfeit$100bill.
Client'snamenotconsideredconfidentialunless"intertwined"with
confidentialinformationorlastlinktyingclienttocrime.Alexiou
v.UnitedStates),39F.3d973(9thCir.1994)
Clientidentityisprivilegedinexceptionalcaseswhendisclosure
would provide "last link" in chain of evidence leading to
conclusion that client committed crime, and would reveal
confidentialcommunicationbetweenlawyerandclient;
Clientwhoaccuseddivorcelawyerofimpropersexualadvances
maynotobtainclientlistindiscovery. Brettv.Berkowitz,706
A.2d509(Del.1998)
Lawyer for client sought in hitandrun accident may withhold
client's identity when disclosure would implicate client in
criminalactivityforwhichlegaladvicesought.Dietzv.Doe,935
P.2d611(Wash.1997)
Certaininstanceswhereacourtorderisnotinvolved,courtshave
heldtheclient'swhereaboutsprotected
Lawyer maynot becompelled todisclose address ofdefendant
fatherinchildcustodyproceedingwhenhespecificallyrequested
thatlawyernotrevealthehomeaddressandtelephonenumberof
thefatherandthenameandaddressoftheschoolthechildrenwere
attending; information that the client requests be kept
confidential is protected unless protection permits a fraud or
crimeorclearlyfrustratestheadministrationofjustice.Brennan
v.Brennan,422A2d510(PaSuperCt1980)
Domestic relations case where confidentiality of address was
necessaryforclientsafety.Waldmanv.Waldman,358NE2d521
(1976)
As a rule a lawyer should challenge an order to disclose
informationaboutclient
Insum,theattorneyclientprivilegeordinarily willnotcover the
informationsoughtbyasubpoenadirectedtoalawyer.Yeteven
whenfacedwithasubpoenaseekingfeeinformationoraclient's
identity,thelawyershould generallyasserttheattorneyclient
privilege and obtain a court ruling rather than make his own
determinationwhethertheinformationisprivileged.Theexistence
ofexceptionstothegeneralruleholdingthatfeeandclientidentity
arenotprivileged,aswellasthelawyer'sethicaldutytooppose
disclosure of information learned during a client's
representation,makeitadvisabletofollowthiscourseofaction.
A lawyer faced with a subpoena for information about a client
must resist the subpoena if the lawyer's testimony or the
document production would violate either the attorneyclient
privilege or the ethical duty of confidentiality and the client
doesnotconsenttothedisclosure. InreGrandJuryWitness,
695F2d359(CA91982);InreGrandJurySubpoena(U.S.),831
F2d225(CA111987
Alawyerwhoreceivesasubpoenatotestifyaboutaclientmayfile
a motion to quash asserting the attorneyclient privilege, along
withanyotherpossiblegroundsforrefusingtocomply.
A subpoena duces tecum issued to a lawyer that makes no
attempt whatsoever to confine its scope to relevant, non
privilegedmattersisunenforceableandmustbequashed.U.S.v.
Horn,976F2d1314(CA91992)
Representingafugitive
Assumingtheclientisindeedproperlycharacterizedasafugitive,
defense counsel must take into account the boundaries of
permissible advocacy. It bears noting that any physical act
intended toharbororconceal afugitive soas to prevent his
discoveryorarrestarguablycouldconstituteaseparatecriminal
violation.
 Alawyerisfreetocontinuetogivelegaladviceto[afugitive]
clientandtorepresenthimbeforetheauthorities,aslongas[the
lawyer]doesnothingtoaidtheclienttoescapetrial.
Clientisunderconditionsofbail
Whereaclientis underconditionsofbailanddefiesalawful
courtordertoappear,his'whereabouts'arenotunqualifiedly
protected bytheattorneyclient privilege,andtheattorneymay
becompelledtodiscloseinformationoftheclient'swhereabouts."
Commonwealthv.Maguigan,511A2d1327(PaSupCt1986)
Lawyer wholearned fromclient's wifethat client had leftwith
suitcasefor"partsunknown"hadfirmfactualbasisforbelieving
clientjumpedbondanddidnotintendtoappearfortrial,thushad
dutytoadvisecourttoavoidassistingincriminalact.U.S.v.
DelCarpioCotrina,733FSupp95(DCSFla1990)
An attorney representing an individual who has violated the
terms of bail and fled the jurisdiction arguably has an even
greaterobligationasanofficerofthecourttoseektheprompt
returnoftheclientincompliancewithajudicialreleaseorder.
Anattorneymaynotassistthe[fugitive]clientinanywaythat
the lawyer knows will further an illegal or fraudulent
purpose.AssociationoftheBaroftheCityofNewYorkFormal
Opinion199902
Whereanattorneybelieves, butdoesnotknow,conducttobe
illegalorfraudulent,theattorneymayactonbehalfofthefugitive
client, but only after assuring him or herself that there is
reasonablesupportforanargumentthattheclientsintendeduse
ofthefruitsoftherepresentationwillnotfurtheracriminal
schemeoract. AssociationoftheBaroftheCityofNewYork
FormalOpinion199902
Canthemetalfilingcabinetcontainingtherecordsanddocuments
ofclientsbesubjectofasearchwarrant?
Itisclearthatthecourtcouldnotandcannotordertheopeningof
the art metal filing cabinet in question because, it having been
proventhatitbelongstotheappellantattorneyandthatinithe
keepstherecordsanddocumentsofhisclients,todosowouldbe
in violation of his right as such attorney, since it would be
tantamounttocompellinghimtodiscloseordivulgefactsorthings
belongingtohisclients,whichshouldbekeptsecret,unlesssheis
authorized by them to make such disclosure, it being a duty
imposedbylawuponanattorneytostrictlypreservethesecretsor
communicationsmadetohim.PPv.SyJuco,G.R.No.L41957
August28,1937
CHAPTER7
Conflictofinterestinaregularlawyerclientrelationship
COIiseverywhere
Conflicts of interest are not the exclusive headache of large,
urban,multiofficelawfirms.Conflictsofinterestarisewithinand
affect law practices of every size, geographical location and
discipline.Thenumberofclients,adverseparties,andinterested
nonparties with whom attorneys become involved throughout
theircareersistrulystaggeringandinvariablyunderestimated.
ExtremecaseofConflictofInterest
The most obvious conflicts of interest are those in which the
lawyer'spersonalinterestsclashwiththoseoftheclient.
RuleonConflictingInterests
Itisgenerallytherulebasedonsoundpublicpolicythatattorney
cannotrepresentdiverseinterest.Itishighlyimpropertorepresent
bothsidesofanissue.
CompetitorConflicts
Courtshavefoundthatacompetitorconflictispresentwhenthe
lawyer attempts to represent two competitors on a material
aspectoftheircompetition.
Whoseinterest?
 Itis,ofcourse,ahornbookpropositionthatitistheclient,andnot
the lawyer, that defines the client's interests and instructs the
lawyeraboutthem.
Degreeofinvolvement
Thegreatertheinvolvementintheclient'saffairsthegreaterthe
dangerthatconfidences(wheresuchexist)willberevealed.
Closedfileconflicts
Involverepresentationadversetoaformerclientinthesameor
substantiallyrelatedmatters.
Absoluteprohibitionfromrepresentation
Hornillacaseprovidesanabsoluteprohibitionfromrepresentation
withrespecttoopposingpartiesinthesamecase.
Inotherwords,alawyercannotchangehisrepresentationfromone
partytothelatter'sopponentinthesamecase,asinthiscase.
Tuliov.Atty.Buhangin,A.C.No.7110,April20,2016
Doctrineofimputedknowledge
Doctrineofimputedknowledgeisbasedontheassumptionthatan
attorney, who has notice of matter affecting his client, has
communicated the same to his principal in the course of
professionaldealings.Thedoctrineappliesregardlessofwhether
or not the lawyer actually communicated to the client what he
learnedinhisprofessionalcapacity, theattorneyandhisclient
beingonejudicialperson.
Knowledge of one member of a law firm will be imputed by
inference to all members ofthat firm; free flow ofinformation
withinthepartnership.
Preliminaryconflictofinterestcheck
Wheneveraprospectiveclientseekinglegalassistancecontactsan
attorney,theattorneyshouldpolitelybutfirmlydeclinetodiscuss
thematterindetailuntilapreliminaryconflictofinterestcheck
canbeperformed.
Astheadjectivesuggests,preliminaryconflictofinterestchecks
should ideally be performed before the prospective client
divulgesadditionalconfidentialinformationwhichmayconflict
theattorneyoutofcurrentorfuturerepresentations.
Rule15.01.Alawyer,inconferringwithaprospective client,
shallascertain assoonaspracticable whetherthematterwould
involveaconflictwithanotherclientorhisowninterest,andifso,
shallforthwithinformtheprospectiveclient.
CANON21Alawyershallpreservetheconfidenceandsecretsof
hisclientevenaftertheattorneyclientrelationisterminated
Rule21.02Alawyershallnot,tothedisadvantageofhisclient,
use information acquired in the course of employment, nor
shallheusethesametohisownadvantage or thatofathird
person,unlesstheclientwithfullknowledgeofthecircumstances
consentsthereto.
Rule 21.07 A lawyer shall not reveal that he has been
consulted about a particular case except to avoid possible
conflictofinterest.
GeneralRuleinalawfirm
Rule21.04Alawyermaydisclosetheaffairsofaclientofthe
firmtopartnersorassociates thereofunlessprohibitedbythe
client.
Aninformationobtainedfromaclientbyamemberorassistantof
alawfirm isinformation impartedtothefirm.Thisisnota
merefictionoranarbitraryrule;forsuchmemberorassistant,as
inourcase,notonlyactsinthenameandinterestofthefirm,but
hisinformation,bythenatureofhisconnectionwiththefirm is
availabletohisassociatesoremployers. Hiladov.David,et.
Al.,G.R.No.L961,September21,1949
CANON15Alawyershallobservecandor,fairnessandloyalty
inallhisdealingsandtransactionswithhisclients
Rule15.01.Alawyer,inconferringwithaprospective client,
shallascertain assoonaspracticable whetherthematterwould
involveaconflictwithanotherclientorhisowninterest,andifso,
shallforthwithinformtheprospectiveclient.
Rule 15.03. A lawyer shall not represent conflicting interests
exceptbywritten consentofallconcerned givenafterafull
disclosureofthefacts.
Rule 15.04. A lawyer may, with the written consent of all
concerned, act as mediator, conciliator or arbitrator in settling
disputes.
Rule 15.05. A lawyer when advising his client, shall give a
candidandhonestopiniononthemeritsandprobableresultsofthe
client'scase,neitheroverstatingnorunderstatingtheprospectsof
thecase.
Rule15.08.Alawyerwhoisengagedinanotherprofessionor
occupationconcurrentlywiththepracticeoflawshallmakeclear
tohisclientwhetherheisactingasalawyerorinanothercapacity.
ConfidentialityofinformationisnotrelevantinCOI
Theruleonconflictofinterestscoversnotonlycasesinwhich
confidentialcommunicationshavebeenconfidedbutalsothosein
whichnoconfidencehasbeenbestowedorwillbeused.Atty.
Jalandoniv.Atty.Villarosa,AC5303,June15,2006
Unqualifiedopposinginterestofnewandformerclients
Theruleprohibitsalawyerfromrepresentingnewclients whose
interestsopposethoseofaformerclientinanymanner,whether
ornottheyarepartiesinthesameaction orintotally unrelated
cases.Atty.Jalandoniv.Atty.Villarosa,AC5303,June15,2006
Another test of the inconsistency of interests is whether the
acceptanceofanewrelationwillpreventanattorneyfromthefull
dischargeofhisdutyofundividedfidelityandloyaltytohisclient
or invite suspicion of unfaithfulness or doubledealing in the
performancethereof, and alsowhetherhewillbecalleduponin
hisnewrelation touseagainsthisfirstclientanyknowledge
acquireinthepreviousemployment.
The firstpart oftherulereferstocasesinwhichtheopposing
partiesarepresentclientseitherinthesameactionorinatotally
unrelated case;the secondpart pertains tothoseinwhichthe
adverse party against whom the attorney appears is his former
clientinamatterwhichis related,directlyorindirectly,tothe
presentcontroversy.Atty.Jalandoniv.Atty.Villarosa,AC5303,
June15,2006
Counsel of corporation cannot represent members of board of
directors
After due deliberation on the wisdom of this doctrine, we are
sufficiently convinced that a lawyer engaged as counsel for a
corporationcannotrepresentmembersofthesamecorporations
boardofdirectorsinaderivativesuitbroughtagainstthem.Todo
sowouldbetantamounttorepresentingconflictinginterests,which
isprohibitedbytheCodeofProfessionalResponsibility.(Hornilla
v.Atty.Salunat,A.C.No.5804,July1,2003)
Degreeofadverseinterest,intentionormotivearenotmaterial
Anattorneyowestohisclientundividedallegiance.Afterbeing
retained and receiving the confidences of the client, he cannot,
withoutthefreeandintelligentconsentofhisclient,actbothfor
hisclientandforonewhoseinterestisadverseto,orconflicting
with that of his client in the same general matter. The
prohibitionstandseveniftheadverseinterestisveryslight;
neitherisitmaterialthattheintentionandmotiveoftheattorney
mayhavebeenhonestLimJr.v.Atty.Villarosa,A.C.No.5303,
June15,2006
Astowhoinitiateengagementisimmaterial
 Tonegate anyculpability, respondentexplained thathedidnot
offerhislegalservicestoaccusedAvilaandIlobutitwasthetwo
accusedwhosoughthisassistanceinexecutingtheirextrajudicial
confessions. Nonetheless, heacceded totheir request toact as
counselafterapprisingthemoftheirconstitutionalrightsandafter
being convinced that the accused were under no compulsion to
givetheirconfession.Perezv.Atty.DelaTorre,AC6160,March
30,2006
Retainedcounselofeitherpartycannotactasmediatorwithout
consent
Evenrespondentsallegedefforttosettletheexistingcontroversy
amongthefamilymembers wasimproperbecausethewritten
consentofallconcernedwasstillrequired.Alawyerwhoacts
assuchinsettlingadisputecannotrepresentanyoftheparties
toit.LimJr.v.Atty.Villarosa,A.C.No.5303,June15,2006
Rule 15.04. A lawyer may, with the written consent of all
concerned, act as mediator, conciliator or arbitrator in settling
disputes.
Natureofthecaseisirrelevant
Theclaimofrespondentthatthereisnoconflictofinterestsinthis
case,asthecivilcasehandledbytheirlawfirmwhereGonzalesis
thecomplainantandthecriminalcasesfiledbyGonzalesagainst
the Gatcheco spouses are not related, has no merit. The
representationofopposingclientsinsaidcases,thoughunrelated,
constitutes conflict of interests or, at the very least, invites
suspicion ofdoubledealingwhichthisCourtcannotallow.
Gonzalesv.Atty.Cabucana,A.C.No.6836,January23,2006
Dismissedemployeeandcounselofrecordincompatible
Intheinstantcase,quiteapartfromtheissueofvalidityofthe
1990compromiseagreement,thisCourtfindsfaultinrespondent's
omissionofthatbasicsenseoffidelitytosteerclearofsituations
thatputhisloyaltyanddevotiontohisclient,thefacultymembers
of UST, open to question. Atty. Mario both as lawyer and
presidentoftheunionwasdutyboundtoprotectandadvance
theinterestofunionmembersandthebargainingunitabove
his own. This obligation was jeopardized when his personal
interestasoneofthedismissedemployeesofUSTcomplicatedthe
negotiation process and eventually resulted in the lopsided
compromiseagreementthatrightlyorwronglybroughtmoneyto
him and the other dismissed union officers and directors,
seeminglyorotherwiseattheexpenseofthefacultymembers.
Dr.Gamillaet.al.v.Atty.MarioJr.,A.C.No.4763,March20,
2003
Clientoflawfirmistheclientofeverypartnersandassociates
Respondentfurtherarguedthatitwashisbrotherwhorepresented
Gonzalesinthecivilcaseandnothim,thus,therecouldbeno
conflictofinterests.Wedonotagree.Asrespondentadmitted,it
wastheirlawfirmwhichrepresentedGonzalesinthecivilcase.
Such being the case, the rule against representing conflicting
interests applies. Gonzales v. Atty. Cabucana,A.C.No.6836,
January23,2006
Vicariousdisqualification
Traditionally, if a lawyer is ineligible to represent a particular
client,allmembersofthelawyer'sfirmalsoareineligible.
The basis for vicarious disqualification is the "presumption of
sharedconfidences,"whichseekstopreventdisclosureofclient
confidences,preservecounselloyalty,andavoidtheappearanceof
impropriety.
Professionalengagementstartsthemomentthelawyerlistensto
hisprospectiveclient
Anattorneyisemployedthatis,heisengagedinhisprofessional
capacityasalawyerorcounselorwhenheislisteningtohisclient
spreliminarystatementofhiscase,orwhenheisgivingadvice
thereon,justastrulyaswhenheisdrawinghisclientspleadings,
or advocating his client s pleadings, or advocating his client s
 causeinopencourt.Atty.Catalanv.Atty.SilvosaA.C.No.7360
[2012]
Goodfaithisnotadefense
Indeed, the prohibition against representation of conflicting
interestsappliesalthoughtheattorneysintentionswerehonestand
heactedingoodfaith. Atty.Catalanv.Atty.SilvosaA.C.No.
7360[2012]
Consentineffective
A lawyer may not properly represent conflicting interests even
though the parties concerned agree to the dual representation
where:
1.theconflictisbetweentheattorneysinterestandthatofa
client,or
2. between a private clients interests and that of the
governmentoranyofitsinstrumentalities.
3.betweenanaccusedandcounsel.
Section12.(ArticleIIIoftheConstitution)
(1) Any person under investigation for the commission of an
offenseshallhavetherighttobeinformedofhisrighttoremain
silent and to have competent and independent counsel
preferably of his own choice. If the person cannot afford the
servicesofcounsel,hemustbeprovidedwithone.Theserights
cannotbewaivedexceptinwritingandinthepresenceofcounsel.
Threeteststodetermineconflictinginterests
Thefirstiswhen,onbehalfofoneclient,itistheattorneysdutyto
contestforthatwhichhisdutytoanotherclientrequireshimto
oppose or when this possibility of such situation will develop
(conflictingduties).
Thesecondtestiswhethertheacceptanceofthenewrelationwill
preventalawyerfromthefulldischargeofhisdutyofundivided
fidelity and loyalty to his client or will invite suspicion of
unfaithfulness or doubledealing in the performance thereof
(Invitationofsuspicion).
Thethirdtestiswhetheralawyerwillbecalleduponinhisnew
relationtouseagainstthefirstclientanyknowledgeacquiredin
thepreviousemployment(useofpriorknowledgeobtained).
Representing conflicting interests would occur only where the
attorneys new engagement would require her to use against a
former client any confidential information gained from the
previousprofessionalrelation.
Theprohibitiondidnotcoverasituationwherethesubjectmatter
ofthepresentengagement wastotally unrelated totheprevious
engagementoftheattorney.
Seares, Jr. v. Atty. GonzalesAlzate, Adm. Case No. 9058
November14,2012
Remember:Thetesttodeterminewhetherthereisaconflict of
interestintherepresentationisPROBABILITY,notcertaintyof
conflict.
Itisofnomomentthatthelawyerwouldnotbecalleduponto
contendforoneclientthatwhichthelawyerhastoopposeforthe
other client, or that there would be no occasion to use the
confidentialinformationacquiredfromonetothedisadvantageof
theotherasthetwoactionsarewhollyunrelated. Itisenough
thattheopposingpartiesinonecase,oneofwhomwouldlose
thesuit,arepresentclients andthenatureorconditionsofthe
lawyersrespectiveretainerswitheachofthemwouldaffectthe
performance of the duty of undivided fidelity to both clients.
Quiambaov.Atty.Bamba,Adm.CaseNo.6708August25,2005
EffectsofRepresentingAdverseInterests
1. Disqualificationascounselofnewclientonpetitionofformer
client.
2. Wheresuchisunknownto,becomesprejudicialinterestsofthe
newclient,ajudgmentagainstsuchmay,onthatgroundbesetaside.
3. A lawyer can be held administratively liable through
disciplinaryactionandmaybeheldcriminallyliableforbetrayalof
trust.
4. The attorneys rightto fees maybe defeated iffoundto be
relatedtosuchconflictandsuchwasobjectedtobytheformerclient,
oriftherewasaconcealmentandprejudicebyreasonoftheattorneys
previousprofessionalrelationshipwiththeoppositeparty.
Whatarethetypesofconflictofinterest?
1.Concurrentormultipleorsimultaneousrepresentation:
Alawyerrepresentsclientswhoseobjectivesareadversetoeach
other,nomatterhowslightorremotetheseare
Takenoteofthisminimaldegree
Ex.ACPAlawyerbeingpartofafirmthatrepresentstheestate
and being part of the accountancy firm that represents the
creditors. The conflict need not arise from two legal
relationships.
2.Sequentialorsuccessiverepresentation:
Representationofpresentclientwhomayhaveaninterestadverse
topriorclient.
Successiverepresentationwhenalawyerorlawfirmseeksto
representaclientwhoseinterestsareadversetoaformerclient
withouttheformerclient'sconsent.Theruleagainstsimultaneous
representation is based principally on the duty of undivided
loyalty.
Unlikesimultaneousrepresentation, successiverepresentation is
not prima facie improper. The duty to preserve client
confidences is the primary ethical consideration implicated by
successiverepresentation.
Successiverepresentationimplicatesboththedutyofloyaltyand
thepreservationoftheattorneyclientrelationship.
SuspicionofDoubledealingevenifthecaseisunrelated
Wedonotsustainrespondentstheorythatsincetheejectmentcase
and the replevin case are unrelated cases fraught with different
issues, parties, and subject matters, the prohibition is
inapplicable. His representation of opposing clients in both
cases, though unrelated, obviously constitutes conflict of
interestor,attheleast,invitessuspicionofdoubledealing.
Quiambaov.Atty.Bamba,Adm.CaseNo.6708August25,2005
Does the lawyer have to be the counselofrecord for the other
partytoviolatethisprovision?
To be guilty of representing conflicting interests, a counselof
recordofoneparty neednotalsobecounselofrecordofthe
adverseparty.Hedoesnothavetopubliclyholdhimselfasthe
counseloftheadverseparty,normakehiseffortstoadvancethe
adverse partys conflicting interests of record although these
circumstancesarethemostobviousandsatisfactoryproofofthe
charge.Itisenoughthatthecounselofoneparty hadahandin
the preparation of the pleading of the other party, claiming
adverseandconflictinginterestswiththatofhisoriginalclient.To
require that he also be counselofrecord of the adverse party
wouldpunishonlythemostobviousformofdeceitandreward,
withimpunity,thehighestformofdisloyalty.Artezuelav.Atty.
Maderazo,A.C.No.4354.April22,2002
Onlyinstancewhenalawyercanrepresentconflictinginterest
Alawyercannotrepresentconflictinginterestsexceptbywritten
consentofallconcernedgivenafterafulldisclosureofthefacts.
SantosVenturaHocormaFoundation,Inc.v.Atty.Funk,A.C.
No.9094August15,2012
Limitoffulldisclosure
Alawyeris forbidden fromrepresentingasubsequentclient
against a former client when the subject matter of the present
controversyisrelated,directlyorindirectly,tothesubjectmatter
of the previous litigation in which he appeared for the former
client.Conversely,hemayproperlyactascounselforanewclient,
 withfulldisclosuretothelatter,againstaformerclientinamatter
wholly unrelated to that of the previous employment, there
beinginthatinstancenoconflictofinterests.
Where,however,thesubjectmatterofthepresentsuitbetweenthe
lawyers new client and his former client is in some way
connected with that ofthe former clients action, the lawyer
mayhavetocontendforhisnewclientthatwhichhepreviously
opposedascounselfortheformerclientortouseagainstthelatter
informationconfidedtohimashiscounsel.Pormento,Sr.v.Atty.
Pontevedra,A.C.No.5128.March31,2005
Purposeandintentionisimmaterial
Respondentcontendsthathehandledthedefenseoftheaccusedin
thesubject criminal caseforhumanitarian reasonsandwiththe
honestbeliefthatthereexistsnoconflictofinterests. However,
the rule is settled that the prohibition against representation of
conflictinginterestsappliesalthoughtheattorneysintentionsand
motiveswerehonestandheactedingoodfaith.Moreover,the
factthattheconflictofinterestsisremoteormerelyprobabledoes
not make the prohibition inoperative. Pormento, Sr. v. Atty.
Pontevedra,A.C.No.5128.March31,2005
TerminationofACrelationsisnotajustification
Respondent also asserts that when he accepted employment in
CriminalCaseNo.3159,theattorneyclientrelationsbetweenhim
and complainant in Civil Case No. 1648 had already been
terminated. This defense does not hold water because the
terminationoftherelationofattorneyandclientprovidesno
justificationforalawyertorepresentaninterestadversetoor
inconflictwiththatoftheformerclient.Pormento,Sr.v.Atty.
Pontevedra,A.C.No.5128.March31,2005
Acquiredknowledgeofformerclientsdoingsisindelible
The reason for this is that a lawyer acquires knowledge of his
formerclient'sdoings,whetherdocumentedornot,thathewould
ordinarily not have acquired were it not for the trust and
confidence that his client placed on him in the light of their
relationship. It would simply be impossible for the lawyer to
identify and erase such entrusted knowledge with faultless
precisionorlockthesameintoanironboxwhensuingtheformer
client on behalf of a new one. Santos Ventura Hocorma
Foundation,Inc.v.Atty.Funk,A.C.No.9094August15,2012
Goodfaithandhonestintentionisnotadefense
Thattherepresentationofconflictinginterestisingoodfaithand
withhonestintentiononthepartofthelawyerdoesnotmakethe
prohibitioninoperative.Quiambaov.Atty.Bamba,Adm.Case
No.6708August25,2005
Although there are instances where lawyers cannot decline
representation, they cannot be made to labor under conflict of
interest between a present client and a prospective one.
Quiambaov.Atty.Bamba,Adm.CaseNo.6708August25,2005
Theprohibitionagainstconflictofinterestrestsonfiverationales,
renderedasfollows:
xxx.First,thelawseekstoassureclientsthattheirlawyerswill
representthemwithundividedloyalty.Aclientisentitledtobe
representedbyalawyerwhomtheclientcantrust.Instillingsuch
confidenceisanobjectiveimportantinitself.xxx.
Second, the prohibition against conflicts of interest seeks to
enhancetheeffectivenessoflegalrepresentation.Totheextentthat
aconflictofinterestunderminestheindependenceofthelawyers
professional judgment or inhibits a lawyer from working with
appropriatevigorintheclientsbehalf,theclientsexpectationof
effectiverepresentationxxxcouldbecompromised.Samsonv.
Atty.Era,A.C.No.6664July16,2013
Third,aclienthasalegalrighttohavethelawyersafeguardthe
clients confidential information xxx. Preventing use of
confidentialclientinformationagainsttheinterestsoftheclient,
eithertobenefitthelawyerspersonalinterest,inaidofsomeother
client,ortofosteranassumedpublicpurposeisfacilitatedthrough
conflictsrulesthatreducetheopportunityforsuchabuse.
 Fourth, conflicts rules help ensure that lawyers will not exploit
clients,suchasbyinducingaclienttomakeagifttothelawyer
xxx.
Finally,someconflictofinterestrulesprotectinterestsofthelegal
system in obtaining adequate presentations to tribunals. In the
absenceofsuchrules,forexample,alawyermightappearonboth
sidesofthelitigation,complicatingtheprocessoftakingproofand
compromiseadversaryargumentationxxx.Samsonv.Atty.Era,
A.C.No.6664July16,2013
Informedconsentmustbewritten
A client's implied consent is insufficient to waive a potential
conflictofinterest.
Rule 15.03. A lawyer shall not represent conflicting interests
except by written consent of all concerned given after a full
disclosureofthefacts.
Whiletherespondentmayassertthatthecomplainantexpressly
consentedtohiscontinuedrepresentationintheejectmentcase,the
respondentfailedtoshowthathefullydisclosedthefactstoboth
hisclientsand hefailedtopresentanywrittenconsentofthe
complainantandAIBasrequiredunderRule15.03,Canon15of
the Code of Professional Responsibility. Quiambao v. Atty.
Bamba,Adm.CaseNo.6708August25,2005
COIremainsafterterminationofattorneyclientrelationship
Theterminationoftheattorneyclientrelationshipdoesnotjustify
alawyertorepresentaninterestadversetoorinconflictwiththat
oftheformerclient.Thespiritbehindthisruleisthattheclients
confidence once given should not be stripped by the mere
expiration of the professional employment. Even after the
severanceoftherelation,alawyershouldnotdoanythingthatwill
injuriously affect his former client in any matter in which the
lawyerpreviouslyrepresentedtheclient. Samsonv.Atty.Era,
A.C.No.6664July16,2013
Currentobservationshusbandandwifelawyersinlegalpractice
Where both husband and wife are lawyers but they are not
practicinginassociationwithoneanother,maytheyortheirfirms
representdifferinginterests?
Somefirmsapparentlyhavebeenreluctanttoemployonespouse
lawyerwherethatperson'shusbandorwifeis,ormaysoonbe,
practicingwithanotherfirminthesamecityorarea.
Somelawfirmsareconcernedwhetheralawfirmisdisqualified,
byreasonofitsemploymentofonespouse,torepresentaclient
opposinganinterestrepresentedbyanotherlawfirmthatemploys
thehusbandorwifeoftheinquiringfirm'sassociate.
Itisnotnecessarilyimproperforhusbandandwifelawyerswho
arepracticingindifferent offices orfirmstorepresentdiffering
interests. No disciplinary rule expressly requires a lawyer to
decline employment if a husband, wife, son, daughter, brother,
father, or other close relative represents the opposing party in
negotiationorlitigation.
Likewise,itisnotnecessarilyimproperforalawfirmhavinga
marriedpartnerorassociatetorepresentclientswhoseinterestsare
opposedtothoseofotherclientsrepresentedbyanotherlawfirm
withwhichthemarriedlawyer'sspouseisassociatedasalawyer.
Marriedpartnerswhoarelawyersmustguardcarefullyatalltimes
againstinadvertentviolationsoftheirprofessionalresponsibilities
arisingbyreasonofthemaritalrelationship.
Thedisqualificationofmarriedorrelatedlawyerswhoopposeone
anotherprofessionallyisnotgenerallyimputedtootherlawyersin
therelatedlawyer'slawoffices.
Suchpersonaldisqualificationisnotimputedtothespouses'firms
unlessthelawyershaveapersonalinterestintheoutcomeofthe
case.
Specialcircumstancesthathighlighttheconcern
1.whetherthefeeofeitherfirmiscontingent,
2. whether the disputed matter is one of negotiation or
litigation,andwhetherthemarriedlawyerinquestionwillor
willnotactuallybeworkingontheparticularmatter.
 3.Anothervariationoftheproblemisthesituationinwhicha
governmental agency, such as a district attorney or an
attorneygeneral,istheemployerofeitherthehusbandorthe
wife,andthespouseisassociatedwithalawfirminthesame
community.
Concernsabouthusband&wifelawyers
Yetitalsomustberecognizedthatthe relationshipofhusband
andwifeissoclosethatthepossibilityofaninadvertentbreachof
aconfidenceortheunavoidablereceiptofinformationconcerning
the client by the spouse other than the one who represents the
client(forexample,informationcontainedinatelephonedmessage
leftforthelawyerathome)issubstantial.Becauseofthecloseness
ofthehusbandandwiferelationship,alawyerwhoismarriedto
alawyermustbeparticularlycareful.
Recommendations
Marriedpartnerswhoarelawyersmustguardcarefullyatalltimes
againstinadvertentviolationsoftheirprofessionalresponsibilities
arisingbyreasonofthemaritalrelationship.
LawyerRelatives
Ethicalpreceptsadmonishlawyersrelatedbybloodormarriageto
avoidadversarialrepresentationswithouttheinformedconsentof
theparties.
Lawyersrelatedbybloodormarriagehavelongbeenpermittedto
representadversarialinterestsprovidedthatareasonableeffortis
madetoanticipateandexposepotentialconflictstoclientsbefore
obtainingtheirconsenttorepresentation.
Faced with client consent, courts have consistently required an
actualconflictofinterestratherthansimplythefactofadversarial
lawyerrelativesbeforeorderingdisqualification.
PersonalRelationships
A lawyer is romantically involved with the opposing partys
attorney,orsexuallyinvolvedwithaclient,thelawyersloyaltyor
judgmentcanbeimpaired.
Lawyers who are dating and also representing adversaries in
litigationshoulddisclosetheirrelationshipifitissufficientlyclose
thattheirclientsmighthavequestionsaboutthelawyers'abilityto
representthemzealously.
Lawyerswhoareotherwisepersonallycloseshoulddolikewise.
Thelawyerhadenjoyedan"intimatephysicalrelationship"with
thesecretaryandtalkedwithher"aboutsignificantaspectsofthe
case,"forwhichhewasdisqualified.
A lawyer is prohibited from having sex with a client unless a
consensual sexual relationship existed prior to the start of
professionalrepresentation.
Duty to protect only matters acquired during the lawyerclient
relationship
Theintentofthelawistoimposeuponthelawyerthedutyto
protecttheclientsinterests onlyonmattersthathepreviously
handledfortheformerclientandnotformattersthataroseafter
the lawyerclient relationship has terminated. Palm v. Atty.
Iledan,Jr.A.C.No.8242[2009]
CHAPTER8
ConflictofinterestofCorporateLawyers
CPRprovisions
Rule15.03.Alawyershallnotrepresentconflictinginterests
exceptbywrittenconsentofallconcernedgivenafterafull
disclosureofthefacts.
Canon21.Alawyershallpreservetheconfidenceandsecretsof
hisclientevenaftertheattorneyclientrelationshipisterminated.
CorporatecounselandpossibilityofCOI
MembersoftheBoardofDirectors
Employeesofthecorporation
Generalpublic
 Counselsprivateinterest
Dutyofattorneytoacorporateclient
[a]nattorneyforacorporateclientoweshisduty[ofloyalty] to
thecorporateentity ratherthanaparticularofficer,director,or
shareholder. ABC Trans Natl Transport, Inc. v. Aeronautics
Forwarders,Inc,413NE.2d1299,13101980
[a] corporate attorney represents the corporation, not the
individualdirectorsorofficers. Heimv.SigncraftScreenprint
Inc,No01C50014,2001WL10182282001
[t]heattorneyforacorporation,evenacloselyheldone,doesnot
have a specific fiduciary duty toward the individual
shareholders.Kopkav.KamenskyandRubenstein,821NE.2d
719,727(2004)
He should resolve all doubts against the propriety of the
representation.Cannonv.U.S.AcousticsCorp.398F.Supp.209
(1975)
Canalawyerengagedbyacorporationdefendmembersofthe
boardofthesamecorporationinaderivativesuit?
Wearesufficientlyconvincedthatalawyerengagedascounselfor
acorporationcannotrepresentmembersofthesamecorporations
boardofdirectorsinaderivativesuitbroughtagainstthem.Todo
sowouldbetantamounttorepresentingconflictinginterests,which
isprohibitedbytheCodeofProfessionalResponsibility.
Furthermore,thisrestrictionondualrepresentationshouldnotbe
waivablebyconsentintheusualway;thecorporationshouldbe
presumptivelyincapableofgivingvalidconsent. Hornillav.
Atty.Salunat,A.C.No.5804.July1,2003
Palmv.Atty.Iledan,Jr.A.C.No.8242[2009]
ComplainantisthePresidentofComtech,acorporationengagedin
thebusinessofcomputersoftwaredevelopment.
FromFebruary2003toNovember2003, respondentservedas
ComtechsretainedcorporatecounselfortheamountofP6,000
permonthasretainerfee.
From September to October 2003, complainant personally met
withrespondenttoreviewcorporatematters,includingpotential
amendmentstothecorporatebylaws.
Inameetingheldon1October2003,respondent suggestedthat
Comtech amend its corporate bylaws toallow participation
duringboardmeetings,throughteleconference,ofmembersof
theBoardofDirectorswhowereoutsidethePhilippines.
Comtech decided to terminate its retainer agreement with
respondenteffectiveNovember2003.
On24March2004,Comtechsnewcounselsentademandletterto
Soledad[aformerofficeranddirectorofComtech,whoresigned
andwhowassuspectedofreleasingunauthorizeddisbursementsof
corporatefunds]toreturnoraccountfortheamountofP90,466.10
representing herunauthorizeddisbursementswhenshewasthe
CorporateTreasurerofComtech.
On22April2004,ComtechreceivedSoledadsreply, signedby
respondent.
InJuly2004,duetoSoledadsfailuretocomplywithComtech's
written demands, Comtech filed a complaint for Estafa against
SoledadbeforetheMakatiProsecutorsOffice.Intheproceedings
before the City Prosecution Office of Makati, respondent
appearedasSoledadscounsel.
InhisAnswer,respondentallegedthatinJanuary2002,Soledad
consultedhimonprocessandprocedureinacquiringproperty.
In April 2002, Soledad again consulted him about the legal
requirementsofputtingupadomesticcorporation. InFebruary
2003,SoledadengagedhisservicesasconsultantforComtech.
RespondentallegedthatfromFebruarytoOctober2003,neither
SoledadnorPalm consultedhimonconfidentialorprivileged
matter concerning the operations of the corporation.
Respondentfurtherallegedthathehadnoaccesstoanyrecordof
Comtech.
 Respondent admitted that during the months of September and
October 2003, complainant met with him regarding the
procedureinamendingthecorporatebylawstoallowboard
membersoutsidethePhilippinestoparticipateinboardmeetings.
Respondentallegedthattherewasnoconflictofinterestwhenhe
representedSoledadinthecaseforEstafafiledbyComtech.He
alleged that Soledad was already a client before he became a
consultantforComtech. Heallegedthatthecriminalcasewas
notrelatedtoorconnectedwiththelimitedproceduralqueries
hehandledwithComtech.
Inaddition,althoughtheinformationaboutthenecessitytoamend
thecorporatebylawsmayhavebeengiventorespondent,itcould
notbeconsideredaconfidentialinformation.
Further,wheneveranyamendmentoradoptionofnewbylawsis
made,copiesoftheamendmentsorthenewbylawsarefiledwith
theSecuritiesandExchangeCommission(SEC)andattachedto
theoriginalarticlesofincorporationandbylaws.Thedocuments
arepublicrecordsandcouldnotbeconsideredconfidential.
We agree with the IBP that in the course of complainants
consultations, respondent obtained the information about the
needtoamendthecorporatebylawstoallowboardmembers
outside the Philippines to participate in board meetings
throughteleconferencing. Respondenthimselfadmittedthisin
hisAnswer.
Itissettledthatthemererelationofattorneyandclientdoesnot
raiseapresumptionofconfidentiality.Theclientmustintendthe
communication to be confidential. Since the proposed
amendmentsmustbeapprovedbyatleastamajorityofthe
stockholders,andcopiesoftheamendedbylawsmustbefiled
withtheSEC,theinformationcouldnothavebeenintendedto
be confidential. Thus, the disclosure made by respondent
during the stockholders meeting could not be considered a
violation of his clients secrets and confidence within the
contemplation of Canon 21 of the Code of Professional
Responsibility.
We find no conflict of interest when respondent represented
SoledadinacasefiledbyComtech. Thecasewhererespondent
representsSoledadisanEstafacasefiledbyComtechagainstits
formerofficer. There was nothingintherecords thatwould
showthatrespondentusedagainstComtechanyconfidential
information acquired while he was still Comtechs retained
counsel.
Further, respondent made the representation after the
termination of his retainer agreement with Comtech. A
lawyers immutable duty to a former client does not cover
transactionsthatoccurredbeyondthelawyersemploymentwith
theclient.
Theintentofthelawistoimposeuponthelawyerthedutyto
protecttheclientsinterests onlyonmattersthathepreviously
handledfortheformerclientandnotformattersthataroseafter
thelawyerclientrelationshiphasterminated.
SantosVenturaHocormaFoundation,Inc.v.Atty.Funk,A.C.No.
9094August15,2012
It alleged that Atty. Funk used to work as corporate secretary,
counsel,chiefexecutiveofficer,andtrusteeoftheSantosVentura
Hocorma foundation from 1983 to 1985. He also served as its
counselinseveralcriminalandcivilcases.
HocormaFoundationfurtherallegedthatonNovember25,2006
Atty.Funkfiledanactionforquietingoftitleanddamagesagainst
Hocorma Foundation on behalf of Mabalacat Institute, Inc.
(Mabalacat Institute). Atty. Funk did so, according to the
foundation,usinginformationthatheacquiredwhileservingas
itscounselxxx.
Here, it is undeniable that Atty.Funk was formerly thelegal
counselofHocormaFoundation. Yearsafterterminatinghis
relationshipwiththefoundation,hefiledacomplaintagainstit
 onbehalfofanotherclient,theMabalacatInstitute, withoutthe
foundation'swrittenconsent.
Here, the evidence shows that Hocorma Foundation availed
itself of the legal services of Atty. Funk in connection with,
amongothers,thetransferofoneofthepropertiessubjectofthe
several suits that the lawyer subsequently filed against the
foundation. Indeed,Atty.Funkcollected attorney'sfeesfrom
thefoundationforsuchservices.
An attorney may not, without being guilty of professional
misconduct,actascounselforapersonwhoseinterestconflicts
withthatofhispresentorformerclient.Thisruleissoabsolute
thatgoodfaithandhonestintentionontheerringlawyer'spart
doesnotmakeitinoperative.
Thereasonforthisisthata lawyeracquiresknowledgeofhis
former client's doings, whether documented or not, that he
wouldordinarilynothaveacquiredwereitnotforthetrust
andconfidencethathisclientplacedonhiminthelightoftheir
relationship.
Itwouldsimplybeimpossibleforthelawyertoidentifyanderase
suchentrustedledgewithfaultlessprecisionorlockthesameinto
anironboxwhensuingtheformerclientonbehalfofanewone.
Hornillav.Atty.SalunatA.C.No.5804,July1,2003
TheyallegedthatrespondentisamemberoftheASSALawand
Associates, which was the retained counsel of the Philippine
Public School Teachers Association (PPSTA). Respondents
brother,AurelioS.Salunat,wasamemberofthePPSTABoard
whichapprovedrespondentsengagementasretainedcounselof
PPSTA.
Complainants,whoaremembers ofthePPSTA, filedanintra
corporatecaseagainstitsmembersoftheBoardofDirectors
fortheterms19921995and19951997beforetheSecuritiesand
ExchangeCommission.whichwasdocketedasSECCaseNo.05
975657,andacomplaintbeforetheOfficeoftheOmbudsman,
docketedasOMBCaseNo.0970695,forunlawfulspendingand
theundervaluedsaleofrealpropertyofthePPSTA.
Respondent enteredhisappearanceascounselforthePPSTA
Boardmembersinthesaidcases.
Complainants contend that respondent was guilty of conflict of
interest because he was engaged by the PPSTA, of which
complainants were members, and was being paid out of its
corporate funds where complainants have contributed. Despite
being told by PPSTA members of the said conflict of interest,
respondent refused to withdraw his appearance in the said
cases.
Respondentadmitsthatthe ASSALawFirm,ofwhichheisthe
ManagingPartner,wastheretainedcounselofPPSTA.Yet,he
appeared as counsel of record for the respondent Board of
Directors in the said case. Clearly, respondentwas guilty of
conflict of interest when he represented the parties against
whomhisotherclient,thePPSTA,filedsuit.
Whatisaderivativesuit?
Wherecorporatedirectorshavecommittedabreachoftrusteither
bytheirfrauds,ultraviresacts,ornegligence,andthecorporation
is unable or unwilling to institute suit to remedy the wrong, a
stockholder may sue on behalf of himself and other
stockholders and for the benefit ofthe corporation, to bring
aboutaredressofthewrongdonedirectlytothecorporationand
indirectlytothestockholders.
Thisiswhatisknownasaderivativesuit,andsettledisthe
doctrinethatinaderivativesuit,thecorporationistherealpartyin
interest while the stockholder filing suit for the corporations
behalfisonlynominalparty.Thecorporationshouldbeincluded
asapartyinthesuit.
Alawyerengagedascounselforacorporation cannotrepresent
members of the same corporations board of directors in a
derivative suit brought against them. To do so would be
 tantamount to representing conflicting interests, which is
prohibitedbytheCodeofProfessionalResponsibility.
The interestofthecorporateclientisparamount and should
notbeinfluencedbyanyinterestoftheindividualcorporate
officials.
Corporationcannotconsenttoarepresentationofalawyerwith
COI
The cases and ethics opinions differ on whether there must be
separaterepresentationfromtheoutsetormerelyfromthetimethe
corporation seeks to take an active role. Furthermore, this
restriction on dual representation should not be waivable by
consent in the usual way; the corporation should be
presumptivelyincapableofgivingvalidconsent.
Outside counsel must thus be retained to represent one of the
defendants.
Rule 15.03. A lawyer shall not represent conflicting interests
except by written consent of all concerned given after a full
disclosureofthefacts.
Quiambaov.Atty.NestorBambaA.C.No.6708August25,2005
Complainant Felicitas S. Quiambao charges respondent Atty.
Nestor A. Bamba with violation of the Code of Professional
Responsibility for representing conflicting interests when the
latter filed a case against her while he was at that time
representingherinanothercase,andforcommittingotheracts
ofdisloyaltyanddoubledealing.
The complainant was the president and managing director of
Allied Investigation Bureau, Inc. (AIB), a familyowned
corporation engaged in providing security and investigation
services. She avers that she procured the legal services of the
respondentnotonlyforthecorporateaffairsofAIBbutalsofor
herpersonalcase.
Particularly,theSpousesSantiagoandFloritaTorrobafiledbyher
on29December2000beforetheMetropolitanTrialCourt(MeTC)
ofParaaqueCity.
AboutsixmonthsaftersheresignedasAIBpresident,oron14
June2001,therespondentfiledonbehalfofAIBacomplaintfor
replevinanddamages againsther beforetheMeTCofQuezon
City for the purpose of recovering from her the car of AIB
assigned to her as a service vehicle. This he did without
withdrawingascounselofrecordintheejectmentcase,which
wasthenstillpending.
Wedonotsustainrespondentstheorythatsincetheejectmentcase
andthereplevincase areunrelatedcases fraughtwithdifferent
issues,parties,andsubjectmatters,theprohibitionisinapplicable.
His representation of opposing clients in both cases, though
unrelated,obviouslyconstitutesconflictofinterestor,attheleast,
invitessuspicionofdoubledealing.
Whiletherespondentmayassertthatthecomplainantexpressly
consentedtohiscontinuedrepresentationintheejectmentcase,the
respondent failed to show that hefully disclosed the facts to
bothhisclientsandhefailedtopresentanywrittenconsentof
thecomplainantandAIBasrequiredunderRule15.03,Canon15
oftheCodeofProfessionalResponsibility.
Neithercanweacceptrespondentspleathathewasdutyboundto
handle all the cases referred to him by AIB, including the
personalcases ofits officers which had noconnection toits
corporateaffairs.Thattherepresentationofconflictinginterestis
ingoodfaithandwithhonestintentiononthepartofthelawyer
doesnotmaketheprohibitioninoperative.
ExtentordegreeofprohibitiononrepresentingCOI
It must be noted that the proscription against representation of
conflicting interests finds application where the conflicting
interests arisewithrespect tothesamegeneralmatter however
slighttheadverseinterestmaybe.
 Itapplieseveniftheconflictpertainstothelawyersprivate interestofSBHIsincethelatterwastherealowneroftheland
activity or in the performance of a function in a non incontroversy.
professionalcapacity. Respondentclaims thattherewasnoattorneyclient relationship
between her and complainant. The claim has no merit. It was
Business transactions between an attorney and his client are complainantwhoretainedrespondenttoformacorporation.
disfavoredanddiscouragedbythepolicyofthelaw. Sheappearedascounselinbehalfofcomplainant.
Thepresentsituationshowsaclearcaseofconflictofinterestof
DeGuzmanv.Atty.L.DeDios,A.C.No.4943January26,2001 therespondent.
In 1995, complainant engaged the services of respondent as
counselinordertoformacorporation.
On January 10, 1996, with the assistance of Atty. De Dios,
complainantregisteredSuzukiBeachHotel,Inc.(SBHI)withthe
SecuritiesandExchangeCommission.
OnDecember15,1997,thecorporationrequiredcomplainantto
pay her unpaid subscribed shares of stock amounting to two
million two hundred and thirty five thousand pesos
(P2,235,000.00) or 22,350 shares, on or before December 30,
1997.
Complainantsoonlearnedthathershareshadbeenacquiredby
RamondelRosario,oneoftheincorporatorsofSBHI.Thesale
ousted complainant from the corporation completely. While
respondent rose to be president of the corporation,
complainantlostallherlife'ssavingsinvestedtherein.
ComplainantallegedthatshereliedontheadviceofAtty.deDios
andbelievedthatasthemajoritystockholder,Atty.deDioswould
helpherwiththemanagementofthecorporation.
Complainant pointed out that respondent appeared as her
counselandsignedpleadingsinacasewherecomplainantwas
oneoftheparties.Respondent,however,explainedthatsheonly
appearedbecausethepropertyinvolvedbelongedtoSBHI.
Respondentallegedthatcomplainantmisunderstoodtheroleof
respondent as legal counsel of Suzuki Beach Hotel, Inc.
Respondent manifested that her appearance as counsel for
complainant Diana de Guzman was to protect the rights and