Chapter IV : The Lawyer and the Client

Nature of Attorney-Client relationship

1. Strictly personal
2. Highly confidential
3. Fiduciary

General rules in protecting Attorney-Client relationship

1. The attorney must exert his best effort to protect the interest of his client
2. He must promptly account for any fund or property entrusted by or received
for his client
3. He cannot purchase his clients property or interest in litigation
4. The privacy of communication shall at all times be upheld
5. An attorney cannot represent a party whose interest in adverse to that of his
client even after the termination of the relation

Retainer or Employment

The relation of attorney and client begins from the tie an attorney is retained.
Retainer may refer to the act of the client by which he engages the services of an
attorney to render legal advice or to defend or prosecute his cause of action.

Canon 14: A lawyer shall not refuse his services to the needy.

Constitutional provision

Free access to the courts and quasi-judicial bodies and adequate legal assistance
shall not be denied to any person by reason of poverty (Constitution, Article III,
Section 11).

Rule 14.01 A lawyer shall not decline to represent a person solely on account of
the latters race, sex, creed or status of life or because of his own opinion regarding
the guilt of said person.

Rule 138 Section 20 (h-i)

Duties of attorneys:

H. Never to reject, for any consideration personal to himself, the cause of the
defenseless of oppressed

I. In the defense of a person accused of crime, by all fair and honorable means,
regardless of his personal opinion as to the guilt of the accused, to present every
defense that the law permits, to the end that no person may be deprived of life or
liberty, but by due process of law.
Rule 14.02 A lawyer shall not decline except for serious and sufficient cause, an
appointment as counsel de oficio or as amicus curiae or a request from the
Integrated Bar of the Philippines or any of its chapters for rendition of free legal aid.

Appointment of Counsel de Oficio

Rule 138 Section 31

In a criminal action, the court may appoint a counsel de oficio in the following
instances:

1. Rule 116, Section 6, Rules of Court

2. Rule 122, Section 13, Rules of Court
3. If it appears from the record of the case as transmitted that: a. that the
accused is confined in prison, b. is without counsel de parte on appeal, or c.
has signed the notice of appeal himself, the clerk of the Court of Appeals
shall designate a counsel de oficio

Rule 124 Section 2 Rules of Court

Appointment of Amicus Curiae

Rule 138 Section 36 Rules of Court

Courts are cautioned against the frequent appointment of the same attorney as
counsel de oficio for two reasons:

1. It is unfair to the attorney considering the burden of his regular practice to be

saddled with too many de oficio cases
2. The compensation provided for by Section 32 of the Rules of Court might be
considered as a regular source of income, something not envisioned by the
Rules (People v. Daeng, G.R. no. L-34091, January 30, 1973).

Rule 14.03 A lawyer many not refuse to accept representation of an indigent client
if:

a. He is not in a position to carry out the work effectively or competently

b. He labors under a conflict of interest between him and the prospective client
or between a present client and the prospective client.

Right to decline employment

General rule: A lawyer is not obliged to act as counsel for any person who may wish
to become his client.
Exceptions:

1. Canon 14
2. Rule 14.01
3. Rule 14.02
4. Rule 14.03

Rule 14.04 A lawyer who accepts the cause of a person unable to pay his
professional fees shall observe the same standard of conduct governing his
relations with paying clients.

Rule on Mandatory legal Aid Service (B.M no. 2012)

Purpose

To enhance the duty of lawyers to society as agents of social change and to the
courts as officers thereof by helping improve access to justice by the less privileged
members of the society and expedite the resolution of cases involving them.
(Section 2)

The law requires that Every practicing lawyer is required to render a minimum of
sixty (60) hours of free legal aid services to indigent litigants in a year (Section 5
no. 1).

Free Legal Assistance Act of 2010 (R.A. no. 9999)

Purpose

The State shall guarantee free legal assistance to the poor and ensure that every
person who cannot afford the services of a counsel is provided with a competent
and independent counsel preferably of his/her own choice, if upon determination it
appears that the party cannot afford the services of a counsel, and that services of
a counsel are necessary to secure the ends of justice and protect of the party.
(Section 2)

Canon 15: A lawyer shall observe candor, fairness and loyalty to all his dealings and
transactions with all his clients.

Rule 15.01 A lawyer, in conferring with a prospective client, shall ascertain as soon
as possible whether the matter would involve a conflict with another client or his
own interest and if so, shall forthwith inform the prospective client.

Kinds of Conflict of Interests:

 1. Concurrent representation (Multiple)- occurs when a lawyer represents clients
whose objectives are adverse to each other, no matter how slight or remote
such adverse maybe.
2. Sequential representation (Successive)- occurs when a lawyer firm takes a
present client who has an interest adverse to the interest of a former client of
the same law firm (Pineda, Legal supra at 234).

Rule 15.02 A lawyer shall be bound by the rule on privileged communication in

respect of matters disclosed to him by a prospective client.

Purpose of the rule:

1. To encourage a client to make a full disclosure of the facts of the case to his
counsel without fear
2. To allow the lawyer freedom to obtain full information from his client (Report
of IBP Committee, p.81).

Parties covered by the privilege:

1. Client
2. Attorney himself without the consent of his client
3. Attorneys secretary, stenographer or clerk who acquired any fact in such
capacity without the consent of the client and attorney (Rules of Court, Rule
130, Section 24 [b]).

Note: The rule on privileged communication is applicable to students under the Law
Student Practice Rule (Rules of Court, Rule 138-A, Section 3).

Requisites that establish the existence of the attorney-client privileged

communication:

1. Where legal advice of any kind is sought

2. From a professional legal adviser in his capacity as such
3. The communications relating to that purpose
4. Made in confidence
5. By the client
6. Are at his instance permanently protected
7. From disclosure by himself or by the legal advisor
8. Except where the protection be waived (Hadjula vs. Madianda, A.C. no. 6711,
July 3, 2007)

Article 209, Revised Penal Code. Betrayal of Trust by an Attorney or Solicitor.

Revelation of Secrets. In addition to the proper administrative action, there shall
be imposed upon any attorney-at-law or solicitor (procurador judicial) who, by any
malicious breach of professional duty or of inexcusable negligence or ignorance,
shall prejudice his client, or reveal any of the secrets of the latter learned by him in
his professional capacity.

Rule 15.03 A lawyer shall not represent conflicting interest except by written
consent of all concerned given after a full disclosure of the facts.

When a lawyer represents two or more opposing parties, there is a conflict of

interests, the existence of which is determined by three separate tests:

1. When, in representation of one client, a lawyer is required to fight for an issue

or claim, but also duty-bound to oppose it for another client.
2. When the acceptance of the new retainer will require an attorney to perform
an act that may injuriously affect the first client or when called upon in a new
relation, to use against the first one any knowledge acquired through their
professional connection
3. When the acceptance of a new relation would prevent the full discharge of an
attorneys duty to give undivided fidelity and loyalty to the client or would
invite suspicion of unfaithfulness or double dealing in the performance of that
duty (Northwest University, Inc. vs. Arquillo, A.C. no. 6632, August 2, 2005).

Exception to the rule against representation of conflicting interests:

1. Where no conflict of interest exists

2. Where clients knowingly consent to the dual representation
3. Where no true attorney-client relationship is attendant (Agpalo, Ethics, supra
at 315-317).

Effects of Representing adverse interests:

1. Subjecting the lawyer to disciplinary action

2. Disqualification from representing the new client upon petition of former
client
3. Where the representation of conflicting interest is unknown and works
prejudice to the new client, a judgment against the latter may be set aside
4. The attorneys right to be paid for his services rendered in favor of his former
client may be affected only if the two matters are related and the former
client objected to such representation (Agpalo, Ethics, supra at 318-319).

Rule 15.04 A lawyer may, with the written consent of all concerned, act as
mediator, conciliator or arbitrator in settling disputes.

Consent in writing is required to prevent future controversy on the authority of the

lawyer to act as mediator or arbitrator. However, a lawyer who acts in such capacity
in the settling of dispute, cannot represent any of the parties to it (Report of IBP
Committee, p. 82).

Rule 15.05 A lawyer, when advising his client, shall give a candid and honest
opinion on the merits and probable results of the clients case, neither overstating
nor understating the prospects of the case.

This rule is an example of candor in dealing with clients (Pineda,Legal, supra at

231).

Rule 15.06 A lawyer shall not state nor imply that he is able to influence any public
official, tribunal or legislative body.

This rule is known as influence-peddling.

It is improper for a lawyer to show in any way that he has connections and can
influence any tribunal or public official, judges, prosecutors, congressmen and
others, specially so if the purpose is to enhance his legal standing and to entrench
the confidence of the client that his case or cases are assured of victory (Pineda,
Legal, supra at 265).

Rule 15.07 A lawyer shall impress upon his client compliance with the laws and the
principles of fairness.

Duty of attorney

To counsel or maintain such actions or proceedings only as appear to him to be just,

and such defenses only as he believes to be honestly debatable under the law (Rule
138, Section 20 (c), Rules of Court).

It is the lawyers duty to counsel his fellow citizens to use peaceful and lawful
methods in seeking justice and refrain from doing an intentional wrong to their
adversaries (5 Am. 265).

Rule 15.08 A lawyer who is engaged in another profession or occupation

concurrently with the practice of law shall make clear to his client whether he is
acting as a lawyer or in another capacity.
The fact of being a lawyer does not preclude him from engaging in business.
Impropriety rises only when the business is conducted in a manner inconsistent with
his duties as a member of the bar (Report of IBP Committee, p.81).

Reason

Certain ethical considerations governing the client-lawyer relationship may be

operative in one case and not in the other (Report of IBP Committee, p.84).

Canon 16: A lawyer shall hold in trust all money and properties of his client that
may come into his possession.

Rule 16.01 A lawyer shall account for all money or property collected or received
for or from the client.

This duty of a lawyer is generally derived from the law on agency, which imposes
the duties of separation, accounting, notification and delivery on all agents
possessing the principals property (Funa, Ethics, supra at 256).

Obligations of a lawyer under Rule 16.01

1. When a lawyer collects or receives money from his client for a particular
purpose, he should promptly account to the client how the money was spent
2. If he does not use the money for its intended purpose, he must immediately
return it to the client.
3. A lawyer has the duty to deliver his clients funds or properties as they fall
due or upon demand (Trenas vs. People, G.R. no. 195002, January 25, 2012).

Rule 16.02 A lawyer shall keep the funds of each client separate and apart from
his own and those of others kept by him

Reason

To prevent confusion and possible misappropriation of funds and properties

appearance of impropriety. If the funds are kept in a separate account, the
temptation to convert them to personal use is one step removed (Report of IBP
Committee, p.88).
Rule 16.03 A lawyer shall deliver the funds and property of his client when due or
upon demand. However, he shall have a lien on the funds and may apply so much
thereof as may be necessary to satisfy his lawful fees and disbursements, giving
notice promptly thereafter to his client. He shall also have a lien to the same extent
on all judgments and the execution he has secured for his client as provided for in
the Rules of Court.

Note: Attorneys Retaining Lien does not apply to public documents and exhibits
introduced in court. These are subject to the courts custody.

A charging lien may be assigned because it is a property right. Also, the charging
lien survives the death of the client (Pineda, Legal, supra at 280).

Rule 16.04 A lawyer shall not borrow money from his client unless the clients
interests are fully protected by the nature of the case or by independent service.
Neither shall a lawyer lend money to a client except, when in the interest of justice.
He has to advance necessary expenses in a legal manner he is handling for the
client.

Prohibitions

1. Lawyer borrowing money from client

Exception: The lawyer is allowed to borrow money from his client provided
that the clients interests are fully protected by the nature of the case or by
independent service.
2. Lawyer lending money to client
Exception: The lawyer may lend money to a client, when it is necessary in the
interest of justice to advance necessary expenses in a legal manner he is
handling for the client.

Prohibition against purchase of property in litigation under Article 1491 of the Civil
Code

The following persons cannot acquire by purchase, even at a public or judicial

auction, either in person or through the mediation of another:

(5) Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and
other officers and employees connected with the administration of justice, the
property and rights in litigation or levied upon an execution before the court within
whose jurisdiction or territory they exercise their respective functions; this
prohibition includes the act of acquiring by assignment and shall apply to lawyers.
With respect to the property and rights which may be the object of any litigation in
which they may take part by virtue of their profession.

Elements of prohibition:
 1. There is an attorney-client relationship
2. The property is in litigation
3. The attorney is the counsel of record in the case
4. The attorney, by himself or through an agent, purchases such property during
the pendecy of said case (Agpalo, Ethics, supra at 259).

Other instances where prohibition is applicable:

1. Redemption, compromise and renunciation of the subject in litigation (Civil

Code, Article 1492)
2. Lease of the subject in litigation (Civil Code, Article 1646)

Canon 17: A lawyer owes fidelity to the cause of his client and he shall be mindful of
the trust and confidence reposed in him.

Fidelity to the cause of client is the essence of legal profession. Without fidelity, the
profession, for in the long run, no one will engage any lawyer anymore (Pineda,
Legal, supra at 283).

In serving this client, the lawyer should present every remedy or defense authorized
by law in support of his clients cause, regardless of his personal views (Agpalo,
Ethics, supra at 207).

The rule concerning conflict of interest prohibits a lawyer from representing a client
if that representation will be directly adverse to any of his present or former clients.
The rule is grounded in the fiduciary obligation of loyalty. In the course of a lawyer-
client relationship, the lawyer learns all the facts connected with the client's case,
including the weak and strong points of the case. The nature of that relationship is,
therefore, one of trust and confidence of the highest degree. (HEIRS OF LYDIO
"JERRY" FALAME v. ATTY. EDGAR J. BAGUIO, A.C. No. 6876. March 7, 2008.)

Lawyers are expected to maintain at all times a high standard of legal proficiency
and of morality which includes honesty, integrity and fair dealing. They must
perform their four-fold duty to society, the legal profession, the courts and their
clients in accordance with the values and norms of the legal profession, as
embodied in the Code of Professional Responsibility. Any conduct found wanting in
these considerations, whether in their professional or private capacity, shall subject
them to disciplinary action. (SPOUSES ARANDA v. ATTY. ELAYDA, A.C. No. 7907,
December 15, 2010.)