LEGAL ETHICS REVIWER (Canons 16-22)

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III. CLIENTS MONEYS AND PROPERTIES
Canon 16. A lawyer shall hold in trust all moneys and properties of his client that may come into his
possession.
General rule: Money collected by the lawyer on a judgement favorable to his client constitutes trust funds and
should be immediately paid over the client
Note: A lawyer may retain the funds, documents and papers of his client, which have lawfully
come into his possession until his lawful fees and disbursements have been paid (Section 37, Rule
138), but still he has the responsibility to promptly account to his client such money received.
Failure to do so constitutes professional misconduct.
The lawyers failure to turn over such funds, moneys, or properties to the client despite the
latters demands give rise to the presumption that the lawyer had converted the money for his
personal use and benefit. This failure also renders the lawyer vulnerable to judicial contempt
(Section 25, Rule 138).
and that a lawyer is prohibited from acquiring properties of his client.
Note: Article 1491 (5) of the New Civil Code states that, the following persons cannot acquire or
purchase, even at public or judicial auction, either in person or through the mediation of another:
xxx
(5) lawyers, with respect to the property and rights which may be the object of any litigation in
which they take part by virtue of their profession.
Article 1491 (5) of the New Civil Code applies only if the sale or assignment of the property takes
place during the pendency of the litigation involving the clients property.
Instances where the rule under Art. 1491 of NCC is inapplicable:
1.
2.
3.
4.
5.
6.

7.

Where the property purchased by the lawyer was not involved in the litigation;
Where the sale took place before it became involved in the suit;
Where the attorney at the time of the purchase was not the counsel in the case;
Where the purchased of the property in litigation was a corporation even though the attorney
was an officer thereof;
Where the sale took place after the termination of the litigation;
A lawyer may accept an assignment from his client of a money judgment rendered in the latters
favor in a case in which he was not counsel, in payment of his professional services performed in
another case;
In a contract for attorneys fees contingent upon the outcome of the litigation (contingent fee
arrangement).

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a.

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

Note: A lawyer must be careful in handling money entrusted to him in his professional capacity, because
of the high degree of fidelity and good faith expected on his part.
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 but in case of failed to use the money for the
intended purpose, the lawyer must immediately return the money to the client.
Requisites for the liability of a lawyer for damages:
1.
2.
3.

Attorney-client relationship;
Want of reasonable care and diligence by lawyer; and
Injury sustained by client as a proximate result of the lawyers negligence.

Attorney-client relationship a privilege which is highly fiduciary as it is founded on trust and

confidence where a lawyer acts as the trustee and the client acting as trustor in regard to the matter
subject of the professional engagement.
Fiduciary duty is the principle that an attorney derives no undue advantage that may operate to the
prejudice or cause an occasion for loss of a client. The relationship between the lawyer and client is one of
mutual trust and confidence of the highest degree.
Breach of fiduciary obligation a lawyer failed in his obligation to make an accounting of funds or
property that may come to his possession for a lawyer holds is clients funds or property in trust for his
client.
b. Co-Mingling of Funds
Rule 16.02 A lawyer shall keep the funds of each client separate and apart from his own and
those of the others kept by him.
Note: Money or property of the client coming into the possession of the lawyer should be reported by the
latter and account any circumstances, and should not be commingled with his own or be used by him.
c.

Delivery of funds
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.

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Note: While this rule provides that the lawyer has the right to retain the funds of his client as may be
necessary to satisfy his lawful fees and disbursements known as attorneys lien and his lien to the same
extent on all judgments and executions he has secured for his client called charging lien, he is still
dutybound to render an accounting of his possession in the course of his professional employment in the
application of attorneys lien, a lawyer shall give notice to his client otherwise, the same might be
construed as misappropriation.
d. Borrowing or Lending
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 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.
General rule: A lawyer is not allowed to borrow money from his client.
Exception: Unless the clients interests are fully protected by the nature of the case by independent advice.
Note: While a lawyer may borrow money from his client, where the clients interests are fully
protected by the nature of the case he is handling for the client, or by independent advice from
another lawyer, he should not abuse the clients confidence by delaying payment.
General rule: A lawyer is not allowed to lend money to his client.
Exception: When in the interest of justice, he has to advance necessary expenses in a legal matter he is handling for
the client.
Note: Prohibition from lending is intended to assure the lawyers independent professional
judgment, for if the lawyer acquires a financial interest in the outcome off the case the free
exercise of his judgment may be adversely affected.
The principle behind this rule is to prevent the lawyer from taking advantage of his influence
over the client or to avoid acquiring a financial interest in the outcome of the case.

IV.

FIDELITY TO CLIENTS CAUSE

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.
Note: Loyalty to a client does not require a lawyer to adopt a clients political, social and economic views,
or refrain from a political activity that may be in opposition to a clients position.
Lawyers duty of fidelity commences from the receipt of his retainer until his effective release
from the case or the final disposition of the whole subject matter of the litigation. During that period, he is
expected to take such reasonable steps and such ordinary care as his clients interest may require.

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Acceptance of money from a client establishes an attorney-client relationship and gives rise to the
duty of fidelity to the clients cause. Every case accepted by a lawyer deserves full attention, diligence,
skill and competence, regardless of importance.
It must be stressed that the privilege against disclosure of confidential communications or
information is limited only to communications which are legitimately and properly within the scope of a
lawful employment of a lawyer. The attorney-client privilege does not attach, there being no professional
employment in the strict sense.
V.

COMPETENCE AND DILIGENCE

Canon 18. A lawyer shall serve his client with competence and diligence.
Note: Lawyers should handle only as many cases as they can efficiently handle. For it is not enough that a
practitioner is qualified to handle a legal matter, he is also required to prepare adequately and give the
appropriate attention to his legal work. A lawyer owes entire devotion to the cause of his client, warmth
and zeal in the defense and maintenance of his right, and the exertion of his learning and utmost ability
that nothing can be taken or withheld from his client except in accordance with law.
a.

Collaborating Counsel
Rule 18.01 A lawyer shall not undertake a legal service which he knows or should know that he
is not qualified to render. However, he may render such service if, with the consent of his client,
he can obtain as collaborating counsel a lawyer who is competent on the matter.

Note: The lawyers acceptance is an implied representation that he possesses the academic learning, skill
and ability to handle the case.
Collaborating Counsel one who is subsequently engaged to assist a lawyer who is already handling a
particular case for a client.
Note: The handling lawyer cannot just take another counsel with the consent of the client. The
new lawyer on the other hand cannot just enter his appearance as collaborating counsel without
the conformity of the first counsel.
The same diligence required of the first counsel is required of the collaborating counsel. The
negligence of the latter is also binding on the client.
b. Negligence without adequate preparation
Rule 18.02 A lawyer shall not handle any legal matter without adequate preparation.
Note: A lawyer should prepare his pleadings with great care and circumspection He should refrain from
using abrasive and offensive language, for it merely weakens rather than strengthens the force of legal
reasoning detracts from its persuasiveness. In preparing a complaint for damages, counsel for plaintiff
should allege and state the specific amounts claimed not only in the body of the complaint for damages,

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counsel for plaintiff should allege and state the specific amounts claimed not only in the body of the
complaint but also in the prayer, so that the proper docket fees can be assessed and paid.
c.

Degree of Diligence
Rule 18.03 A lawyer shall not neglect a legal matter entrusted to him and his negligence in
connection therewith shall render him liable.

Note: The legal profession demands of a lawyer that degree of vigilance and attention of a good father of
a family or ordinary pater familias. He is not required to exercise extraordinary diligence.
d. Duty to Appraise the Client
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 clients request for information.
Note: A lawyer should notify his client of the adverse decision while within the period to appeal to
enable the client to decide whether to seek an appellate review. He should communicate with him
concerning the withdrawal of appeal with all its adverse consequences. The client is entitled to the fullest
disclosure of the mode or manner by which his interest is defended or why certain steps are taken or
omitted.
Doctrine of Imputed Knowledge the knowledge acquired by an attorney during the time that hes
acting within the scope of his authority is imputed to the client. It is based on the assumption that an
attorney, who has notice of matter affecting his client, has communicated the same to his principal in the
course of professional dealings.
Note: The doctrine applies regardless of whether or not the lawyer actually communicated to the
client what he learned in his professional capacity, the attorney and his client being one judicial
person.
Mistakes or Negligence of a lawyer
General rule: Client is bound by attorneys conduct, negligence and mistake in handling a case or in
management and litigation and in procedural technique, and he cannot complain that the result might have
been different had his lawyer proceeded differently.
Exception:
1.
2.
3.
4.
5.

Lack of acquaintance with technical aspect of procedure;

When adherence thereto results in outright deprivation of clients liberty or property or where interest
of justice so requires;
Where error by counsel is purely technical which does not substantially affect clients cause;
Ignorance, incompetence, or inexperience of lawyer is so great and error so serious that client, who has
a good cause, is prejudiced and denied a day in court.
Gross negligence of lawyer.

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Plea of guilty it is an admission by the accused of his guilt of a crime as charged in the information and
of the truth of the facts alleged, including the qualifying and aggravating circumstances.
VI.

REPRESENTATION WITH ZEAL WITHIN THE LEGAL BOUNDS

Canon 19 A lawyer shall represent his client with zeal within the bounds of the law.
Note: When a lawyer accepts a case, whether for a fee or not, his acceptance is an implied representation
that he:
1.
2.
3.
4.

Will exercise reasonable and ordinary care and diligence in the pursuit of the defense of the case;
Will possess the requisite degree of academic learning,, skill and ability in the practice of his
profession;
Will take steps as will adequately safeguard his clients interests; and
Will exert his best judgment in the prosecution or defense of the litigation entrusted to him.
A practicing lawyer who assumes the right to appear in a case, may be required by the presiding
judge to produce or prove 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. (Section 21, Rule 138, Rules of Court)
A lawyer may not voluntarily appear for a person without being employed or retained by such
person.
An unauthorized appearance may be ratified by:
Express categorized assertion by client that he has authorized a lawyer or that he
confirms his authorization to represent him in the case.
Implied where a party without knowledge of fact that a lawyer has been representing
him in a case, accepts benefits of representation or fails to promptly repudiate the
assumed authority.

Compromise it is a contract whereby the parties, by making reciprocal concessions, avoid litigation or
put an end to one already commenced. (Art. 2028, New Civil Code)
General rule: the attorney has no authority to compromise his clients case but the client can authorize his
lawyer to compromise his case and the settlement made by the lawyer will bind his client.
Exception: when the lawyer is confronted with an emergency where prompt and urgent action is
necessary to protect the interest of his client and there is no opportunity for consultation with the latter.
a.

Duty to Restrain Client from Impropriety

Rule 19.01 A lawyer shall employ only fair and honest means to attain the lawful objectives of
his client and shall not present, participate in presenting or threaten to present unfounded
criminal charges to obtain an improper advantage in any case or proceeding.

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Note: A lawyer is obliged, in defending his client, to employ only such means as are consistent with truth
and honor. He should not prosecute patently frivolous and meritless appeals or institute clearly
groundless actions just to prevent the execution of the judgment against his clients.
Under this rule, a lawyer should not file or threaten to file any unfounded or baseless criminal
case or cases against the adversaries of his client designed to secure a leverage to compel the adversaries
to yield or withdraw their own cases against the lawyers client.
b. Duty of Lawyer in Case of knowledge of Clients Fraud
Rule 19.02 A lawyer who has received information that his client has, in the course of the
representation, perpetrated a fraud 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.
Note: A lawyer should use his best efforts to retrain and to prevent his client from doing those things
which he himself out not to do, particularly with reference to the conduct toward the court, judicial
officer, witness and suitor and if the client persists in such wrong doing, the lawyer should terminate
their relation.
c.

Authority of a Lawyer
Rule 19.03 A lawyer shall not allow his client to dictate the procedure in handling the case.

Note: While a lawyer owes utmost zeal and devotion to the interest of his, he also has the responsibility
of employing only fair and honest means to attain the lawful objectives of his client and should not allow
the latter to dictate the procedure in handling a case. It is assumed that the lawyer has the knowledge of
laws and rules of procedure.
Appearance it is the coming into court as a party either as a plaintiff or as a defendant and asking relief
therefrom.
Kinds of Appearance:
1.
2.

General appearance when a party comes to court either as plaintiff or defendant and seeks
general reliefs from the court for satisfaction of his claims or counterclaims respectively.
Special appearance when a defendant appears in court solely for the purpose objecting the
jurisdiction if the court over his person.

Note: By virtue of Sec. 20, Rule 14 of the 1997 Rules of Civil Procedure, there is no more
distinction between general appearance and special appearance, in the sense that a defendant
may file a motion to dismiss not only on the ground of lack of jurisdiction over his person but
also on some other grounds without waiving the jurisdiction of the court over his person.

VII.

ATTORNEYS FEES

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Canon 20 A lawyer shall charge only fair and reasonable fees
General rule: only lawyers are entitled to attorneys fees. The same cannot be shared with a non-lawyer. It is
unethical.
Exception: a lawyer may ivied a fee for legal services with persons not licensed to practice law:
1.
2.

3.

A lawyer undertakes to complete the unfinished legal business of a deceased lawyer;

There is a pre-existing agreement with a partner or associate that, upon the latters death, money
shall be paid over a reasonable period of time to his estate or to persons specified in the
agreement;
A lawyer or law firm includes non-lawyer employees in retirement plan, even if the plan is
based, in whole or in part, on a profit-sharing agreement.

Note: Entitlement to lawyers fees is presumed unless otherwise expressly stipulated; rendition of
professional services by a lawyer is for a fee or compensation and is not gratuitous.
a.

Factors to Determine Attorneys Fees

Rule 20.01 A lawyer shall be guided by the following factors in determinging his fees:
a. The time spent and the extent of service rendered or required;
b. The novelty or difficulty of 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 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.

Note: Generally, the amount of attorneys fees due is that stipulated in the retainer agreement which is
conclusive as to the amount of lawyers compensation unless the stipulated amount in the written
contract is found by the court to be unconscionable or unreasonable. In the absence thereof, the amount of
attorneys fees is fixed on the basis of quantum meruit.
These are mere guides in ascertaining the real value of the lawyers service. Courts are not bound
to consider all these factors in fixing attorneys fees.
Kinds of payment:
1.
a.
b.
c.

Fixed or absolute fee that which is payable regardless of the result of the case.
A fixed fee payable per appearance
A fixed fee computed upon the number of hours spent
A fixed fee based on piece of work

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d. Combination of any of the above
2.

Contingent fee that which is conditioned on the securing of a favorable judgment and recovery of
money or property and the amount of which may be on a percentage basis.

Note: A lawyer is entitled to recover litigation expenses incurred in collecting attorneys fees.
Quantum Meruit means as much as he deserves and is used as the basis for determining the lawyers
professional fees in the absence of a contract but recoverable by him from his client. It is resorted to when:
1.
2.
3.
4.
5.
6.

There is no express contract for payment of attorneys fees agreed upon between the lawyer
and client;
Although there is a formal contract for attorneys fees, the stipulated fees are found
unconscionable or unreasonable by the court;
The contract for attorneys fees is void due to purely formal matters or defects of the execution;
The counsel, for justifiable cause, was not able to finish the case to its conclusion;
Lawyer and client disregard the contract for attorneys fees; and
The client dismissed his counsel before the termination of the case.

Concepts of Attorneys Fees

1.

Ordinary attorneys fee - the reasonable compensation paid to a lawyer by his client for the legal
services he has rendered to the latter.
Basis: the fact of his employment by and his agreement with the client
Note: Lawyers should be reminded that they are members of an honorable profession which
primary vision is justice. The practice of law is a decent profession and not a money-making
trade. Compensation should be but a mere incident.

2.

Extraordinary attorneys fee an indemnity for damages ordered by the court to be paid by the
losing party in litigation. This reward belongs to the client but parties may stipulate that
whatever may be awarded by the court as attorneys fees will go directly to the lawyer.
Basis: any of the cases provided for by law where such award can be made unless they have
agreed that the award shall pertain to the lawyer as additional compensation or as part thereof.

Acceptance Fees it is an absolute fee arrangement which entitles a lawyer to get paid for his efforts
regardless of the outcome of the litigation.
Different types of fee arrangements an attorney may enter into with his client:
1.
2.
3.

Retainers fee where the lawyer is paid for services for an agreed amount for the case.
The lawyer agrees to be paid per court appearance.
Contingent fee where the lawyer is paid for his services depending on the success of the case. This
applies usually in civil suits for money or property where the lawyers fee is taken from the
award granted by the court.

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4.

5.
6.

An attorney de oficio is appointed by the court to defend the indigent litigant in a criminal case.
The client is not bound to pay to attorney for his services although he may be paid a nominal fee
taken from a public fund appropriated for the purpose.
The legal aid that an attorney renders for those who could not afford to engage the services of
paid counsel.
If there is no specific contract between the lawyer and the client, the lawyer is paid on quantum
meruit basis, that is, what the lawyer deserves for his services.

Retainer it may refer to two concepts:

1.
2.

Act of a client by which he engages the services of an attorney to render legal advice or to
defend or prosecute his cause in court; or
Fee which a client pays to the attorney.

Kinds of retainer agreement on attorneys fees

1.

2.

General retainer or retaining fee it is the fee paid to a lawyer to secure his future services as
general counsel for any ordinary legal problem that may arise in the ordinary business of the
client and referred to him for legal action. The client pays fixed retainer fees, which could be
monthly or otherwise. The fees are paid whether or not there are cases referred to the lawyer.
Special retainer it is a fee for a specific or particular case or service rendered by the lawyer
for a client.

Contingent fee is a fee paid to a lawyer for his services depending on the success of the case. This
applies usually in civil suits for money or property where the lawyers fee is taken from the award
granted by the court.
Note: Contingent fee contracts are subject to the supervision and close scrutiny of the court in
order the clients may be protected from unjust charges. The amount of contingent fees agreed
upon by the parties is subject to the stipulation that counsel will be paid for his legal services only
if the suit or litigation prospers.
Contingent fee of 30% is reasonable, a much higher compensation is allowed as contingent fees
because of the risk that the lawyer may get nothing if the suit fails but 80% of the property
recovered is considered unconscionable, because it is so disproportionate as to indicate that an
unjust advantage had been taken of the client, and is revolting to human conscience.
Champertous contract it is on where the lawyer stipulates with his client in the prosecution of the case
that he will all the expenses for the recovery of things or property being claimed by the client, and the
latter agrees to pay the former a portion of the thing or property recovered as compensation. It is void for
being against public policy (like gambling).
Note: A champertous contract which is considered void due to public policy, because it would
make him acquire a stake in the outcome oof the litigation which might lead him to place his own
interest above that of the client.

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Contingent
Contract
Payable in cash

Champertous
Contract
Payable in kind only

Lawyers do not undertake

to pay all expenses of
litigation
Valid

Lawyers undertake to pay

all expenses of litigation
Void

b. Division of Fees
Rule 20.02 A lawyer shall, in cases of referral, with the consent of the client, be entitled to a
division of fees in proportion to the work performed and responsibility assumed.
Note: Under this system, if another counsel is referred to the client, and the latter agrees to take him as
collaborating counsel, and there is no express agreement on the payment of attorneys fees, the said
counsel will receive attorneys fees in proportion to the work performed and responsibility assumed. The
lawyers and the client may agree upon the proportion but in case of disagreement, the court may fix the
proportional division of fees.
c.

Acceptance of compensation
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.

General rule: Lawyers should only accept compensation from his client.
Note: Intended to secure the fidelity of the lawyer to his clients cause and to prevent a situation
in which the receipt of him of a rebate or commission from another with the clients business may
interfere with the full discharge of his duty to his client.
Exception: A lawyer may receive compensation from a person other than his client when the latter has full
knowledge and approval thereof.
Retaining Lien is the right of an attorney to retain the funds, documents and papers of his client which
have lawfully come into his possession and may retain the same until his lawful fees and disbursements
have been paid, and may apply such funds to the satisfaction thereof.
Requisites to exercise retaining lien:
1.
2.

Attorney-client relationship;
Lawful possession by the lawyer of the clients funds, documents and papers in his
professional capacity; and

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3.

Unsatisfied claim for attorneys fees or disbursements.

Note: If there is a dispute between the lawyer and client as to the amount of the fees that the
former is entitled, the lawyer must file an action for recovery of his fee or record a charging lien
so that the court can fix the amount to which he is entitled.
Charging Lien is the right of a lawyer to the same extent upon all judgments for the payment of
money, and executions issued in pursuance of such judgments which he has secured in a litigation of his
client, from and after the time when he shall have caused a statement of his claim of such lien to be
entered upon their records of the court rendering such judgment, or issuing such execution, and shall
have caused written notice thereof to be delivered to his client and to the adverse party; and he shall have
the same right and power over such judgments and executions as his client would have to enforce his lien
and secure the payment of his fees and disbursement.
Requisites to exercise charging lien:
1.
2.
3.
4.
5.

Existence of attorney-client relationship;

The attorney has rendered services;
Favorable money judgment secured by the counsel for his client;
The attorney has a claim for attorneys fees or advances; and
A statement of the claim has been duly recorded in the case with notice thereof served upon
the client and the adverse party.

Note: A charging lien, to be enforceable as a security for the payment of attorneys fees, requires
as a condition sine qua non a judgment for money and execution in pursuance of such judgment
secured in the main action by the attorney in favor of his client.
Retaining Lien

Charging Lien
As to Nature
Passive lien. It cannot be actively enforced. It is
Active Lien. It can be enforced by execution. It
a general lien.
is a special lien.
As to Basis
Lawful possession of papers, documents,
Securing of a favorable money judgment for
property belonging to the client.
client.
As to coverage
Covers papers, documents, and properties in
Covers all judgments for the payment of
the lawful possession of the attorney by reason
money and execution issued and pursuance of
of his professional employment
such judgments.
As to Effect
As soon as the attorney gets possession of
As soon as the claim for attorneys fees had
papers, documents, or property
been entered into the records of the case.
As to Applicability
May be exercised before judgment or execution
Generally, exercised only when the attorney
or regardless thereof.
had already secured a favorable judgment for
his client.
As to Extinguishment
When possession lawfully ends as when
When client loses action as lien may only be

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lawyer voluntarily parts with funds,
documents, and papers of client or officers
them as evidence.

enforced against judgment awarded in favor of

client, proceeds thereof/executed thereon.

d. Fees and Controversies with clients

Rule 20.04 A lawyer shall avoid controversies with clients concerning his compensation and
shall resort to judicial action only to prevent imposition, injustice or fraud.
General rule: A lawyer should avoid the filing of any case against a client for the enforcement of attorneys fees.
Note: The legal profession is not a money-making trade but a form of public service. Lawyers
should avoid giving the impression that they are mercenary.
Exception:
1.
2.
3.
VIII.

To prevent imposition
To prevent injustice
To prevent fraud
PRESERVATION OF CLIENTS CONFIDENCES

Canon 21 A lawyer shall preserve the confidences and secrets of his clients even after the attorneyclient relation is terminated.
Note: The protection given to the client is perpetual and does not cease with the termination of the
litigation nor is effected by the party ceasing to employ the attorney and employ another or any other
change of relation between them. It even survives the death of the client.
Confidence it refers to the information protected by the attorney-client privilege.
Secret it refers to other information gained in the professional relationship that the client has requested
to be held inviolate or the disclosure of which would be embarrassing or detrimental to the client.
a.

Confidences or Secrets of his client

Rule 21.01 A lawyer shall not reveal the confidences or secrets of his client except;
1.
2.
3.

When authorized by the client after acquainting him of the consequences of the
disclosure
When required by law;
When necessary to collect his fees or to defend himself. His employees or associates or by
judicial action.

General rule: A lawyer shall not reveal the confidences and secrets of his client.

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Note: An attorney cannot, without the consent of his client, be examined as to any
communication made by the client to him, or his advice given thereon in the course of, or with a view to,
professional employment, not can an attorneys secretary, stenographer, or clerk be examined, without
the consent of the client and his employer, concerning any fact the knowledge of which has been acquired
is such capacity.
Exception:
1.
2.
3.

When authorized by his client after acquainting him of the consequences of the disclosure;
Note: There is a waiver of the privilege by the client.
When required by law;
When necessary to collect his fees or to defend himself, his employees or associates by judicial action.
Note: Payment of retainer fee is not essential before an attorney can be required to safeguard a
prospective clients secret acquired by the attorney during the course of the consultation with the
prospective client, even if the attorney did not accept the employment.

b. Use information acquired in the course of his employment

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.
Note: A lawyer is not permitted to disclose communications made to him in his professional character by
a client, unless the latter consents.
Lawyers cannot be allowed to exploit their profession for the purpose of exacting vengeance or as
a tool for instigating hostility against any person most especially against a client or former client.
c.

Give information to an outside agency

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, and any other similar purposes.

Note: Confidential information obtains even against government agencies and instrumentalities.
d. Disclosing clients matters to partners
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.
Note: Professional employment of a law firm is equivalent to retainer of members thereof. In a law firm,
partners or associates usually consult one another involving their cases and some work as a team.
Consequently, it cannot be avoided that some information about the case received from the client may be
disclosed to the partners or associates.

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e.

Adopting Measures to prevent disclosure of clients secrets

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 client.

f.

Indiscreet conversation of clients affairs

Rule 21.06 A lawyer shall avoid indiscreet conversation about a clients affairs even with
members of his family.

g.

Consultation of a case should not be revealed

Rule 21.07 A lawyer shall not reveal that he has been consulted about a particular case except to
avoid possible conflict of interest.

General rule: A lawyer may not invoke privileged communication to refuse revealing a clients identity.
Exception:
1.
2.
3.

IX.

When there is a strong possibility that revealing the clients name would implicate the client in the
very activity for which he sought the lawyers advice;
When disclosure would open the client to civil liability;
When governments lawyers have no case against an attorneys client and revealing the clients name
would furnish the only link that would come from the chain of testimony necessary to convict him.
WITHRAWAL OF SERVICES

Canon 22 A lawyer shall withdraw his services only for good cause and upon notice appropriate in
the circumstances.
General rule: A lawyer lacks the unqualified right to withdraw once he has taken a case. By his acceptance, he has
impliedly stipulated that he will prosecute the case to conclusion. This is especially true when such withdrawal will
work injustice to a client or frustrate the ends of justice.
Exception: The right of a lawyer to retire from the case before its final adjudication, which arises only from:
1.
2.

The clients written consent; or

By permission of the court after due notice and hearing.

Note: The withdrawal in writing of a lawyer as counsel for a party, with the clients written
conformity, does not require the approval of the court to be effective, especially if the withdrawal
is accompanied by a formal appearance of a new counsel.
Instances when a lawyer may withdraw his services without the consent of his client:
1.

When the client deliberately fails to pay the fee for the services or fails to comply with the
retainer agreement;

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2.
3.
4.
5.
6.
7.
8.

When the client pursues an illegal or immoral course of conduct in connection with the matter he
is handling;
When the lawyer finds out that he might be appearing for a conflict of interest;
When the mental or physical condition of the lawyer renders it difficult for him to carry out the
employment effectively;
Other similar cases;
When the client insists that the lawyer pursue conduct in violation of these canons and rules;
When his inability to work with co-counsel will not promote the best interest of the client; and
When the lawyer is elected or appointed to a public office.

Procedure of withdrawal without the clients consent:

1.
2.

File a petition for withdrawal in court

Serve a copy of this petition upon his client and the adverse party at least 3 days before the date
set for hearing.

Note: He should present his petition well in advance of the trial of the action to enable the client to
secure the services of another lawyer.
A lawyer should not presume that the court will grant his petition for withdrawal. Until his
withdrawal shall have been proved, the lawyer remains counsel of record who is expected by his
client as well as by the court to do what the interests of his client require.
Discharge of the Attorney by the Client a client has the right to discharge his attorney at any time with
or without a cause or even against his consent.
1.

2.

With just cause lawyer is not necessarily deprived of his right to be paid for his services. He may
only be deprived of such right if the cause for his dismissal constitutes in itself a sufficient legal
obstacle to recovery.
Without just cause
a. No express written agreement as to fees reasonable value of his services up to the
date of his dismissal
b. There is written agreement and the fee stipulated is absolute and reasonable full
payment of compensation
c. The fee stipulated is contingent.
d. If dismissed before the conclusion of the action reasonable value of his services
(quantum meruit)
e. If contingency occurs or client prevents its occurrence full amount

Note: Lawyer should question his discharge otherwise he will only be allowed to recover on quantum
meruit basis.
The existence or non-existence of a just cause is important only in determining the right of an
attorney to compensation for services rendered.

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While client have the right to terminate their relations with their counsel and make substitution
or change at any stage of the proceedings, the exercise of such right is subject to compliance with the
prescribed requirements. This rule is intended to ensure the orderly disposition of cases, without it there
will be confusion in the service of processes pleadings and other papers.
Notice of discharge is not necessary between client and attorney. But insofar as the court and the
adverse party is concerned, the severance of the relation of attorney and client is not effective until:
1.
2.
a.

A notice of discharge by the client or a manifestation clearly indicating that purpose is filed
with the court; and
A copy thereof served upon the adverse party.

Withdrawal by the attorney

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 and conduct violative of these canons
and rules;
c. When the 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 of 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.

Note: In all the a-e cases above, the lawyer must file a written motion with an express consent of his
client and the court shall determine whether he ought to be allowed to retire.
He may also retire at any time from an action or special proceeding without the consent of his
client, should the court, on notice to the client and attorney, and on hearing, determine that he ought to
be allowed to retire.
Hot Potato Doctrine It refers to the prohibition from dropping smaller clients (like hot potatoes) in
order to pick up more lucrative clients.
b. Duties of a discharged lawyer or one who withdraws
Rule 22.02 A lawyer who withdraws or is discharged shall, subject to retaining lien,
immediately turn over all papers and property to which the client is entitled, and shall cooperate
with his successor in the orderly transfer of the matter, including all information necessary for
the proper handling of the matter.
Note:

After being discharged, a lawyer must:

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1.
2.

Immediately turn-over all papers and property to which the client is entitled
To cooperate with his successor in the orderly transfer of the case.

Failure of a lawyer to comply with the abovementioned duty will held him liable.
Kinds of damages:
1.
2.
3.
4.

Nominal where client lost the litigation as a consequence of lawyers gross omission of
negligence
Actual/Compensatory
Moral
Attorneys fees

Civil liability will arise:

1.
2.
3.
4.

Client is prejudiced by a lawyers negligence or conduct;

Breach of fiduciary obligation;
Civil liability to third persons;
Libelous words in pleadings;
Note: A lawyer is exempted from liability for slander libel or for words otherwise
defamatory, published in the course of judicial proceedings, provided the statements are
connected with, relevant, pertinent and material to the cause in hand or subject of inquiry.
Test of relevancy the matter to which the privilege does not extend must be palpably wanting
in relation to the subject of controversy, that no reasonable man can doubt its relevancy or
propriety.

5.
6.

Violation of communication privilege;

Liability for costs of suit (treble costs) when lawyer is made liable for insisting on clients
parently unmeritotious case or interposing appeal merely to delay litigation.

Breach of Fiduciary Obligation when a lawyer failed to make an accountin of funds or property that
may come to his possession for a lawyer holds his clients funds or property in trust for his client.
The remedy of the client is that he may recover property from lawyer, together with its fruits,
subject to clients returning to his lawyer the purchase price thereof and the legal interests thereon.