CHAPTER IV.

THE LAWYER AND THE CLIENT

CANON 14 - A LAWYER SHALL NOT REFUSE HIS
SERVICES TO THE NEEDY.

Rule 14.01 - A lawyer shall not decline to represent a

person solely on account of the latter's race, sex.
creed or status of life, or because of his own
opinion regarding the guilt of said person.

• Not bound to accept all cases; Restrictions

• How to deal with guilty clients
• Applicable only in criminal cases, not civil cases
Rule 14.02 - A lawyer shall not decline,
except for serious and sufficient cause,
an appointment as counsel de officio 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.

Definitions: Counsel de oficio, Amicus

Curiae
Rule 14.03 - A lawyer may not refuse to
accept representation of an indigent
client unless:
(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.
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.
 CANON 15 - A LAWYER SHALL OBSERVE CANDOR,
FAIRNESS AND LOYALTY IN ALL HIS DEALINGS AND
TRANSACTIONS WITH HIS CLIENTS.
Rule 15.01. - A lawyer, in conferring with a prospective
client, shall ascertain as soon as practicable whether
the matter would involve a conflict with another
client or his own interest, and if so, shall forthwith
inform the prospective client.
• MEJIA V. REYES
• Lawyers are prohibited from representing conflicting
interests in a case as this would constitute as
malpractice.
• Kinds of Conflict of Interest:
• Concurrent (Multiple) Representation
– Generally occurs when a lawyer represents
clients whose objectives are adverse to each
other, no matter how slight or remote such
adverse interest may be.
• Sequential (Successive)Representation
– Generally occurs when a law firm takes a
present client who has an interest adverse to
the interest of a former client of the same law
firm.
Rule 15.02.- A lawyer shall be bound by the rule on
privilege communication in respect of matters
disclosed to him by a prospective client.
Relate to:
Canon 21: even after termination of the relationship.
Rule 21.01: Exceptions:
(a) When authorized by the client after acquainting him
of the consequences of the disclosure;
(b) When required by law;
(c) When necessary to collect his fees or to defend
himself, his employees or associates or by judicial
action.
Requisites of privileged communication:
1. Existence of an attorney-client relationship
or a kind of consultancy relationship with a
prospective client;
2. Communication must be made to the lawyer
in the course of the lawyer’s professional
employment; and
3. The communication must be intended to be
confidential.
Rule 15.03. - A lawyer shall not represent conflicting
interests except by written consent of all concerned
given after a full disclosure of the facts.

• SIBULO v. CABRERA, AC No. 4218, 7/20/2000

• Respondent was bound to faithfully represent his client in
all aspects of subject civil case. When he agreed to
represent the defendant and later on, also the plaintiff in
the same case, he could no longer serve either of his said
clients faithfully, as his duty to the plaintiff did necessarily
conflict with his duty to the defendant. The relation of
attorney and client is based on trust, so that double dealing
which could sometimes lead to treachery, should be
avoided.
• SAMALA v. VALENCIA
• The stern rule against representation of
conflicting interests is founded on principles
of public policy and good taste. It springs
from the attorney's duty to represent his
client with undivided fidelity and to maintain
inviolate the client's confidence as well as
from the injunction forbidding the
examination of an attorney as to any of the
privileged communications of his client.
• CASTRO-JUSTO v. GALING
• The prohibition against representing
conflicting interest is founded on principles
of public policy and good taste. In the course
of the lawyer-client relationship, the lawyer
learns of the facts connected with the
client’s case, including the weak and strong
points of the case. The nature of the
relationship is, therefore, one of trust and
confidence of the highest degree.
• HOCORMA FOUNDATION, INC. v. FUNK
• A lawyer owes his client undivided allegiance. Because of
the highly fiduciary nature of their relationship, sound
policy dictates that he be prohibited from representing
conflicting interests or discharging inconsistent duties. An
attorney may not, without being guilty of professional
misconduct, act as counsel for a person whose interest
conflicts with that of his present or former client. This rule
is so absolute that good faith and honest intention on the
erring lawyer’s part does not make it inoperative. The
reason for this is that a lawyer acquires knowledge of his
former client’s doings, whether documented or not, that he
would ordinarily not have acquired were it not for the trust
and confidence that his client placed on him in the light of
their relationship.
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 candid and honest
opinion on the merits and probable
results of the client's case, neither
overstating nor understating the
prospects of the case.
Rule 15.06. - A lawyer shall not state or
imply that he is able to influence any
public official, tribunal or legislative
body.
Rule 15.07. - A lawyer shall impress upon
his client compliance with the laws and
the principles of fairness.
• RURAL BANK OF CALAPE, INC. v. FLORIDO
• A lawyer’s duty is not to his client but to the
administration of justice. To that end, his
client’s success is wholly subordinate. His
conduct ought to and must always be
scrupulously observant of the law and ethics.
Any means, not honorable, fair and honest
which is resorted to by the lawyer, even in the
pursuit of his devotion to his client’s cause, is
condemnable and unethical.
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.
CANON 16 - A LAWYER SHALL HOLD IN TRUST
ALL MONEYS AND PROPERTIES OF HIS
CLIENT THAT MAY COME INTO HIS
PROFESSION.
Rule 16.01 - A lawyer shall account for all
money or property collected or received for
or from the client.
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.
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 over
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 executions he has secured
for his client as provided for in the Rules of
Court.
• ARROYO-POSIDIO v. VITAN, AC No. 6051,
4/2/2007
• The lawyer’s failure to return the money of his
client upon demand gave rise to a
presumption that he has misappropriated said
money in violation of the trust reposed on
him. The conversion by a lawyer [of] funds
entrusted to him by his client is a gross
violation of professional ethics and a betrayal
of public confidence in the legal profession.
• PARIÑAS v. PAGUINTO
• Acceptance of money from a client establishes
an attorney-client relationship and gives rise
to the duty of fidelity to the client’s cause.
Money entrusted to a lawyer for a specific
purpose, such as for filing fee, but not used for
failure to file the case must immediately be
returned to the client on demand. Respondent
returned the money only after complainant
filed an administrative case for disbarment.
• REYES v. MAGLAYA, AC No. 2125, 4/3/1995
• By the unexplained failure to return the
amount of P1,500.00 demanded by
complainant-client receipt of which
respondent had acknowledged and which he
had agreed to return at the earliest possible
opportunity, respondent failed to live up to his
duties as a lawyer. His inexcusable act of
withholding money belonging to his client
warrants the imposition of disciplinary
sanction.
• MENESES v. MACALINO
• When a lawyer receives money from the client
for a particular purpose, the lawyer is bound
to render an accounting to the client showing
that the money was spent for the intended
purpose. Consequently, if the lawyer does not
use the money for the intended purpose, the
lawyer must immediately return the money to
the client.
• BARCENAS v. ALVERO
• Jurisprudence dictates that a lawyer who
obtains possession of the funds and
properties of his client in the course of his
professional employment shall deliver the
same to his client (a) when they become due,
or (b) upon demand. In the instant case,
respondent failed to account for and return
the P300,000.00 despite complainant’s
repeated demands.
• ARELLANO UNIVERSITY, INC. v. MIJARES III
• Every lawyer has the responsibility to protect and
advance the interests of his client such that he must
promptly account for whatever money or property his
client may have entrusted to him. As a mere trustee of
said money or property, he must hold them separate
from that of his own and make sure that they are used
for their intended purpose. If not used, he must return
the money or property immediately to his client upon
demand, otherwise the lawyer shall be presumed to
have misappropriated the same in violation of the trust
reposed on him. A lawyer’s conversion of funds
entrusted to him is a gross violation of professional
ethics.
• IGUAL v. JAVIER
• Respondent claims the money given him is an
acceptance fee. But, as known by respondent,
ambiguities in contracts prepared by him, are
construed against him, and thus, if the receipt does
not specify that it is such an acceptance fee, it
cannot be treated as such. When it comes to fees,
the amount and purpose must be clearly stated.
Otherwise said contracts are interpreted against
the lawyer who is presumed to know better on
such legal matters as against his client, as in this
case, who is not a lawyer.
• Definition:
• Retaining Lien
– Attorney’s lien over the property of the client held
by the lawyer to apply to his claims upon due
notice to the client.
• Charging Lien
– a lien upon all judgments for the payment of
money and executions issued in pursuance of such
judgments; a lawyer causes a statement of his
claim of such lien to be entered upon the records
of the court that rendered judgment or issuing
execution with written notice to the client and
adverse party (Rule 138, S3c. 37, Rules of Court).
Rule 16.04 - A lawyer shall not borrow money
from his client unless the client's interest
are fully protected by the nature of the case
or by independent advice. Neither shall a
lawyer lend money to a client except, when
in the interest of justice, he has to advance
necessary expenses in a legal matter he is
handling for the client.
 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.
• TAHAW v. VITAN, AC No. 6441, 10/21/2004
• When a lawyer takes a client’s cause, he thereby
covenants that he will exert all effort for its prosecution
until its final conclusion. Thus, when respondent’s
services were engaged by complainant, the former
took it upon himself to perform the legal services
required of him. In the instant case, however,
respondent seemed to have forgotten his sworn duty
after he received the money from his client.
 CANON 18 - A LAWYER SHALL SERVE HIS CLIENT
WITH COMPETENCE AND DILIGENCE.
Rules 18.01 - A lawyer shall not undertake a legal
service which he knows or should know that
he is not qualified to render. However, he may
render such service if, with the consent of his
client, he can obtain as collaborating counsel a
lawyer who is competent on the matter.
Rule 18.02 - A lawyer shall not handle any legal
matter without adequate preparation.
Rule 18.03 - A lawyer shall not neglect a
legal matter entrusted to him, and his
negligence in connection therewith shall
render him liable.
Rule 18.04 - A lawyer shall keep the client
informed of the status of his case and
shall respond within a reasonable time
to the client's request for information.
• BARBUCO v. BELTRAN
• Failure to file brief within the reglementary
period constitutes inexcusable negligence.
That Respondent was suffered physical
injuries from a vehicular accident cannot
serve to excuse him from filing his pleadings
on time considering that he was a member
of a law firm composed of not just one
lawyer. He could have asked any of his
partners in the law office to file the brief or,
at least, to seek extension of time to file such
pleading.
• CUIZON v. MACALINO
• It is axiomatic that no lawyer is obliged to act either
as adviser or advocate for every person who may
wish to become his client. However, once he
agrees to take up the cause of a client, the lawyer
owes fidelity to such cause and must always be
mindful of the trust and confidence reposed in
him. He must serve his client with competence and
diligence, and champion the latter’s cause with
whole-hearted fidelity. Among the fundamental
rules of ethics is the principle that an attorney who
undertakes to conduct an action impliedly
stipulates to carry it to its conclusion.
• VILLARIASA-RIESENBECK v. ABARRIENTOS
• A lawyer must not keep a client in the dark as to
the status of and developments in the client’s
case. The lawyer is obliged to respond within a
reasonable time to a client’s request for
information. A client is entitled to the fullest
disclosure of the mode or manner by which that
client’s interest is defended or why certain steps
are taken or omitted. A lawyer who repeatedly fails
to answer the inquiries or communications of a
client violates the rules of professional courtesy
and neglects the client’s interests.
CANON 19 - A LAWYER SHALL REPRESENT
HIS CLIENT WITH ZEAL WITHIN THE
BOUNDS OF THE LAW.
Rule 19.01 - A lawyer shall employ only
fair and honest means to attain the
lawful objectives of his client and shall
not present, participate in presenting or
threaten to present unfounded criminal
charges to obtain an improper
advantage in any case or proceeding.
Rule 19.02 - A lawyer who has received
information that his client has, in the course
of the representation, perpetrated a fraud
upon a person or tribunal, shall promptly
call upon the client to rectify the same, and
failing which he shall terminate the
relationship with such client in accordance
with the Rules of Court.
Rule 19.03 - A lawyer shall not allow his client
to dictate the procedure in handling the
case.
• PENA v. APARICIO
• While a lawyer shall represent his client with zeal
within the bounds of law, his duty is not to his
client but to the administration of justice – his
client’s success is wholly subordinate and his
conduct must always be scrupulously observant of
law and ethics. The writing of demand letters is
standard practice and tradition in this jurisdiction,
but, the letter in this case contains more than just a
simple demand to pay containing as it did a threat
to file retaliatory charges against Complainant
which have nothing to do with his client’s claim.
• MILLARE v. MONTERO
• Under Canon 19 of the Code of Professional
Responsibility, a lawyer is required to
represent his client "within the bounds of the
law." The Code enjoins a lawyer to employ
only fair and honest means to attain the
lawful objectives of his client (Rule 19.01) and
warns him not to allow his client to dictate the
procedure in handling the case (Rule 19.03). In
short, a lawyer is not a gun for hire.
• ONG v. UNTO
• While a lawyer owes absolute fidelity to the cause of
his client, full devotion to his genuine interest, and
warm zeal in the maintenance and defense of his
right, as well as the exercise of his utmost learning
and ability, he must do so only within the bounds of
the law. He must give a candid and honest opinion
on the merits and probable results of his client’s case
with the end view of promoting respect for the law
and legal processes, and 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.
 CANON 20 - A LAWYER SHALL CHARGE ONLY
FAIR AND REASONABLE FEES.
Rule 20.01 - A lawyer shall be guided by the
following factors in determining his fees:
(a) the time spent and the extent of the
service rendered or required;
(b) the novelty and difficulty of the questions
involved;
(c) The importance of the subject matter;
(d) The skill demanded;
(e) The probability of losing other employment as a
result of acceptance of the proffered case;
(f) The customary charges for similar services and
the schedule of fees of the IBP chapter to which
he belongs;
(g) The amount involved in the controversy and the
benefits resulting to the client from the service;
(h) The contingency or certainty of compensation;
(i) The character of the employment, whether
occasional or established; and
(j) The professional standing of the lawyer.
• Two concepts of Attorney’s Fees
1. Ordinary
- The reasonable compensation paid to a lawyer
for the legal services he has rendered to a
client. The basis of this compensation is the fact
of employment by the client.
1. Extraordinary
- The indemnity for damages ordered by the
court to be paid by the losing party to the
prevailing party in litigation. This is payable to
the client and not to the lawyer unless
otherwise agreed.
• Form of employment; commencement of
employment
– Oral, written or express.
– Meeting of the minds
• Kinds of payment which may be stipulated:
– Fixed or absolute fee
– Contingent fee
– Fixed fee payable per appearance
– Fixed fee computed by the number of hours spent
– Fixed fee based on piece work
• Retainer- Fee or Extent of Service.
• Kinds of Retainer Agreements
1. General Retainer or Retaining Fee
- Fee paid to secure a lawyer’s future
services as general counsel for any
ordinary legal business.
2. Special Retainer
- Fee for a specific case or service rendered
for a client.
• Attorney’s Fees based on Quantum Meruit
– “as much as he has deserved”
– Authorized when:
1. There is no express contract for payment of attorney’s
fees agreed upon between the lawyer and the client;
2. When although there is a formal contact, the fees
stipulated are found to be unconscionable;
3. When contact for attorney’s fees is void due to purely
formal matters or defects of execution;
4. When for justifiable reasons the counsel is unable to
finish the case;
5. When contract is disregarded as though there was no
express stipulation.
• Definition:
• Champertous Contracts
– Lawyer stipulates with his client that in the prosecution
of the case he will bear all the expenses for the
recovery of the things or property being claimed by the
client and the latter agrees to pay the former a portion
of the thing or property recovered as compensation.
• Contingent Fee
– Payment to an attorney for legal services that depends,
or is contingent, upon there being some recovery or
award in the case. The payment is then a percentage of
the amount recovered.
Rule 20.02 - A lawyer shall, in case of referral, with the
consent of the client, be entitled to a division of fees
in proportion to the work performed and
responsibility assumed.
Rule 20.03 - A lawyer shall not, without the full
knowledge and consent of the client, accept any fee,
reward, costs, commission, interest, rebate or
forwarding allowance or other compensation
whatsoever related to his professional employment
from anyone other than the client.
Rule 20.04 - A lawyer shall avoid controversies with
clients concerning his compensation and shall resort
to judicial action only to prevent imposition, injustice
or fraud.
 CANON 21 - A LAWYER SHALL PRESERVE THE
CONFIDENCE AND SECRETS OF HIS CLIENT EVEN
AFTER THE ATTORNEY-CLIENT RELATION IS
TERMINATED.
Rule 21.01 - A lawyer shall not reveal the
confidences or secrets of his client except;
(a) When authorized by the client after acquainting
him of the consequences of the disclosure;
(b) When required by law;
(c) When necessary to collect his fees or to defend
himself, his employees or associates or by judicial
action.
• SUNTAY v. SUNTAY, AC No. 1890, 8/7/2002
– A lawyer shall preserve the confidences and secrets
of his clients even after termination of the attorney-
client relation.
– [T]he question is not necessarily one of the rights of
the parties, but as to whether the attorney has
adhered to proper professional standard. With
these thoughts in mind, it behooves attorneys, like
Caesar’s wife, not only to keep inviolate the client’s
confidence, but also to avoid the appearance of
treachery and double-dealing. Only thus can
litigants be encouraged to entrust their secrets to
their attorneys which is of paramount importance in
the administration of justice.
Rule 21.02 - A lawyer shall not, to the disadvantage
of his client, use information acquired in the
course of employment, nor shall he use the same
to his own advantage or that of a third person,
unless the client with full knowledge of the
circumstances consents thereto.
Rule 21.03 - A lawyer shall not, without the written
consent of his client, give information from his
files to an outside agency seeking such
information for auditing, statistical, bookkeeping,
accounting, data processing, or any similar
purpose.
Rule 21.04 - A lawyer may disclose the affairs
of a client of the firm to partners or
associates thereof unless prohibited by the
client.
Rule 21.05 - A lawyer shall adopt such
measures as may be required to prevent
those whose services are utilized by him,
from disclosing or using confidences or
secrets of the clients.
Rule 21.06 - A lawyer shall avoid
indiscreet conversation about a client's
affairs even with members of his family.
Rule 21.07 - A lawyer shall not reveal that
he has been consulted about a
particular case except to avoid possible
conflict of interest.
CANON 22 - A LAWYER SHALL WITHDRAW HIS
SERVICES ONLY FOR GOOD CAUSE AND
UPON NOTICE APPROPRIATE IN THE
CIRCUMSTANCES.
Rule 22.01 - A lawyer may withdraw his
services in any of the following case:
(a) When the client pursues an illegal or
immoral course of conduct in connection
with the matter he is handling;
(b) When the client insists that the lawyer
pursue conduct violative of these canons
and rules;
(c) When his inability to work with co-counsel will
not promote the best interest of the client;
(d) When the mental or physical condition of the
lawyer renders it difficult for him to carry out the
employment effectively;
(e) When the client deliberately fails to pay the fees
for the services or fails to comply with the
retainer agreement;
(f) When the lawyer is elected or appointed to
public office; and
(g) Other similar cases.
• Appearance- act of submitting or presenting
on presenting oneself to the court, either as
plaintiff or defendant, personally or through
counsel, and seeking general reliefs or special
reliefs from the court.
• Jurisdiction is acquired.
• Civil cases- plaintiff: filing of complaint
- defendant : filing of answer
: voluntary appearance
• Kinds of Appearance:
1. General Appearance- the kind where the party
comes to court either as plaintiff or defendant
and seeks the general reliefs from the court for
the satisfaction of his claims and counterclaims
respectively.
2. Special Appearance –the kind where a defendant
appears in court solely for the purpose of
objecting to the jurisdiction of the court over his
person and seeks the dismissal of the case. If
defendant would seek other reliefs then it ceases
to be a special appearance even if it is
denominated as such.
• Withdrawal of Counsel
• Written consent of the client or by permission of
the court after due notice and hearing.
• The name of the new attorney shall be recorded in
the case.
• Substitution of Counsel
• With written application;
• Written consent of the client;
• Written consent of the attorney to be substituted;
• If the consent of the attorney cannot be obtained,
there must be at least a proof of notice that the
motion for substitution has been served upon him
in the manner prescribed in the rules.
Rule 22.02 - A lawyer who withdraws or is
discharged shall, subject to a retainer lien,
immediately turn over all papers and
property to which the client is entitled, and
shall cooperative with his successor in the
orderly transfer of the matter, including all
information necessary for the proper
handling of the matter.
• Retaining Lien
– A passive lien and may not be actively
enforced. It amounts to a mere right to retain
the papers as against the client until the lawyer
is fully paid.
• Charging Lien
– The equitable right of the attorney to have the
fees due him for services in a particular suit
secured by the judgment or recovery in such
suit. The object of this lien is to protect the
claim on the fruits of the lawyer’s labor.