[Discussion: Canon 16 - Canon 19; 13
June 2020]
Final Exam Coverage: Pertinent Rules of
Court Admission to the Integrated Bar
Code of Professional Responsibility
Pertinent Rules on MCLE
Rules on Suspension and Disbarment
Excluding Specific Guidelines of Admin
Proceeding in the IBP
CANON 16 - characterizes high fidelity of
the lawyer with the property of his clients
16.01 - A lawyer shall account for all
money or property collected or received
for or from the client.
16.02 - A lawyer shall keep the funds of
each client separate and apart from his
own and those of others kept by him.
The source of the duty is derived from law
on agency. The law of agency. There’s a
special degree of accountability on the
part of the lawyer. As far as the rules are
concerned, the lawyer will keep his funds
separate from the money of his client to
avoid misappropriation.
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.
(1st sentence of 16.03) A lawyer shall
deliver the funds of his client when it is
due or upon demand
- In the event that the lawyer fails, it
will give rise to the presumption
that the fund was misappropriated.
(2nd sentence of 16.03) However, he shall
have a lien over the funds…. May apply so
much thereof according to his fees.
- He may have a right to keep the
same. This provision assumes that
the client has already agreed on
the attorney’s fees (Note: There’s
PRIOR CONSENT of the client).
The lawyer may reduce the fees he
is entitled to from the fund that was
entrusted to him from the client. If
there is no consent, he must return
all the money and may file a case
demanding the recovery of
attorney’s fees.
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.
Rule on Prohibited Purchase
- Art. 1491 of the CC and its
elements:
1.) Attorney-client relationship.
2.) Property or interest in litigation.
3.) Attorney takes part as counsel in
the case.
4.) Attorney by himself or another,
purchases the property during the
pendency of the case.
- Example: A house that was the
object of the case cannot be
purchased by the client. A is the
owner of the residential house and
B is the lessee of A. B did not pay
the rent and wanted to eject B. A
filed a case against B to eject B.
 Can C (lawyer of A) purchase the
house of A?
- NO. It will be VOID subject to Art.
1491 because all the elements are
present in this case.
- If the purchase was done during
the termination of the case, no
violation of Art. 1491.
- The prohibition does not include
Contingent Contracts where for
example, a person who is insolvent
made a condition that the
attorney’s fees will be 50% of the
amount of the estate to be claimed
from the client's father’s property.
A contract of a contingent fee is
not covered by 1491 because the
transaction takes place after the
FINALITY of the judgment. Hence,
it was not during the pendency of
the case. The Contingent Fee
arrangement is therefore valid.
CANON 17 - A lawyer owes fidelity to the
cause of his client and he shall be mindful
of the confidence reposed in him.
- A general statement of the
fiduciary relationship between
client and lawyer.
CANON 18 - A lawyer shall serve his
client with competence and diligence.
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.
- A lawyer shall not accept a legal
service which he knows he is not
competent enough or does not
have the specialization to handle
the case UNLESS he collaborates
with a COMPETENT counsel (who
specializes in the matter) and
renders such service with the
consent of the client.
18.02 - A lawyer shall not handle any legal
matter without adequate preparation.
- Self-explanatory. A lawyer shall not
a handle a matter without being
prepared.
18.03 - A lawyer shall not neglect a legal
matter entrusted to him, and his
negligence in connection therewith shall
render him liable.
What if the fault is not on the lawyer but
his secretary?
- To illustrate: 2 days before, a
lawyer asked his clerk to file the
MR on a specific date and the MR
was filed 2 days after the deadline
imposed by the Court. Hence, the
MR was denied and the case was
dismissed and had become final
and executory. The lawyer said it
was not his fault and that the
mistake was due on his secretary.
- The SC ruled that it was not a
sufficient excuse because it turns
the others to a scapegoat of the
lawyer’s negligence and
incompetence. Trivializing this rule
would lead to an unending
litigation.
As to the Effect on the Client
- A person is bound by the acts and
omission of his counsel.
- Hence, the mistake of a lawyer is
binding to his client.
Exception​: When the negligence is ​gross
in character. It will not be binding on the
client because it would lead to the client’s
deprivation of due process.
CANON ​19 - A lawyer shall represent his
client with zeal within the bounds of the
law.
- A lawyer shall represent his client
with zeal, but not so far as to act in
defiance to the purpose of the law.

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.

19.02 - A lawyer who has received, 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.

19.03 - A lawyer shall not allow his client

to dictate the procedure in handling the
case.
- speaks of a domain where the
lawyer is supreme.
- If substantial, need ng consent ni
client. Attorney cannot compromise
the substantial issue of the matter
without the authority of client A.

What if the controversy involved is the

conduct of Attorney C’s order of
presentation of evidence?
- As long as it’s procedural, or
ordinary judicial procedure, it is
within the exclusive management
of the attorney.