CHAPTER VI

NATURE & CREATION OF ATTY-CLIENT RELATIONSHIP

A. NATURE OF RELATION

Nature of atty-client relationship, generally

- An atty is more than a mere agent or servant because he possesses special powers
of trust and confidence reposed on him by his client

- Officer of the court

- 3 characteristics of the relationship:

o Strictly personal

o Highly confidential

o Fiduciary

- There is no other human relation which involves so delicate, exacting and

confidential a nature and character as that of atty and client, which necessity and
public interest so require

- Based on the hypothesis that abstinence from seeking legal advice in a good cause
is an evil which is fatal to the administration of justice

- It demands a sense of commitment to the ideals of the legal profession and a

strength of character to resist the many temptations of the law to deviate from its
exacting norms.

- Safe guide is high moral principle, best shield is a clear conscience and
unblemished record

- Ma. Luisa Hadjula vs. Atty. Roceles Madianda, AC No. 6711, 7/3/07

Strictly personal

- Involves mutual trust and confidence of the highest degree whether the client is a
private person or a government functionary;
- It prohibits delegation of the relationship to another without the client’s consent
 - It terminates upon death of client or atty
- Client can terminate relation anytime with or without cause
- Lawyer cannot terminate anytime, only with the consent of client or court
- Lawyer should not adopt as his own the personal troubles of client, he may lose
his composure and equanimity; maintain personal detachment – hence not to
appear for himself or relative
- Personal involvement may blur his sense of duty and purpose and affect his
performance

Fiduciary and confidential

- Takes care of money

o Fiduciary – a legal or ethical relationship of trust between two or more
parties. Typically, a fiduciary prudently takes care of money for another
person
o To promptly account for any fund or property entrusted by or received for
his client
o Not to purchase or acquire any property or interest of his client in litigation

- Confidential
o Privileged communication
o To forever keep inviolate his client’s secrets or confidence and not to
abuse them

- Undivided allegiance, conspicuous and high degree of good faith,

disinterestedness, candor, fairness, loyalty, fidelity and absolute integrity in all his
dealings and transactions with his clients
- With utter renunciation of every personal advantage conflicting in any way,
directly or indirectly, with the interest of his client
- Duties with client should be reconciled with his duties to the courts, bar and
public- each of them requires fidelity and loyalty in varying degrees within limits

Rules protective of relation

- Interest of the public requires that the personal, confidential and fiduciary relation
bet atty and client to be preserved and protected
- To encourage client to entrust his legal problems to an atty which is of paramount
importance to the admin of justice:
o Exert his best effort and learning in the protection of the interest of his
client
- Conflict of interest
 o Not to represent a party whose interest is adverse to that of his client even
after the termination of his relation

B. RETAINER OR EMPLOYMENT

Concept of “retainer”

- Relation of atty and client begins from the time an atty is retained
- “retainer” may refer to either of two concepts:
o 1) It may refer to the act of a client by which he engages the services of an
atty to render legal advice, or to defend or prosecute his cause in court.

 A) General retainer – the purpose of which is to secure beforehand

the services of an atty for any legal problem that may afterward
arise.
 B) Special retainer – has reference to a particular case or service

o 2) It may also refer to the fee which a client pays to any atty when the
latter is retained, known as retaining fee.

o Retaining fee – preliminary fee paid to insure and secure his future
services, to remunerate him for being deprived, by being retained by one
party, of the opportunity of rendering services to the other party and of
receiving pay from him, and the payment of such fee, in the absence of an
agreement to the contrary, is neither made nor received in consideration of
the services contemplated;

 it is apart from what the client has agreed to pay for the services
which he has retained him to perform. (ie. Acceptance fee &
appearance fee)

 Purpose is to prevent undue hardship on the part of the atty

resulting from the rigid observance of the rule forbidding him from
acting as counsel for the other party after he has been retained by
or has given professional advice to the opposite party.

 Due to conflict of interest – deprived of income

Necessity of retainer

- Atty has no power to act as counsel or legal rep for a person without being
retained nor may he appear in court for a party without being employed unless by
leave of court.
 - There must be a contract of employment, express or implied, between him and the
party
- Effect of unauthorized appearance – disciplined or punished for contempt; party
not affected by his appearance unless ratified or party is estopped (Que vs.
Revilla)

Sufficiency of professional employment

- Written agreement for professional services is the best evidence to show the
relation, but formality is not an essential element of the employment of an atty.
- Not necessary that a retainer should have been paid, promised or charged for; nor
is it material that the atty consulted does not afterward undertake the case about
which he has been consulted.
- Neither is it important that a confidential communication has been confided to or
acquired by the atty

- It is sufficient that the advice and assistance of an atty is sought and received in
any matter pertinent to his profession

Example:

o Ma. Gina Francisco vs. Atty. Portugal, AC No. 6155, 3/14/06

 Ad cautelam petition filed out of time; dismissal due to gross
negligence

 The rule in this jurisdiction is that a client has the absolute right to
terminate the attorney-client relation at anytime with or without
cause. The right of an attorney to withdraw or terminate the
relation other than for sufficient cause is, however, considerably
restricted. 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. He is not at liberty to
abandon it without reasonable cause. A lawyer’s right to withdraw
from a case before its final adjudication arises only from the
client’s written consent or from a good cause

 A written contract is not an essential element in the employment of

an attorney; the contract may be express or implied. To establish
the relation, it is sufficient that the advice and assistance of an
attorney is sought and received in any matter pertinent to his
profession. 
 o Person consults w/ atty in his professional capacity to obtain professional
advice and atty voluntarily permits or acquiesces, prof employment is
established
o Atty received documents from a party and prepared necessary pleading
even if it is just a favor, w/o affixing signature, w/o fee
o Implied employment – lawyers appears on behalf of party w/o objection

No atty-client relationship:

o Atty wrote letters to tenants giving fixed pd to buy land, prepared deed of
sale for buyer and charged seller for fees – no relation bet atty and seller
(wrapped up in the sale and could have been done for the buyer for his
interest)
o Atty signed pleading in behalf of a counsel on record
o Atty helping appellant perfect appeal w/o entering appearance or signing
pleading

- In the absence of a written retainer, establishment of atty-client rel. depends upon

circumstances of the case
- In case of doubt, resolution should preclude impropriety or appearance thereof

Employment of a law firm

- Employment of law firm – equivalent to retainer of a member even if only one is

consulted; conversely, employment of one member is generally considered
employment of the law firm
o If counsel appearing for client dies, firm is bound to provide a
replacement; lawyer-client rel not extinguished
o Information obtained from a client by a member of the law firm is
information imparted to the latter

Who can employ attorney

- Any person who has the legal capacity to contract or employ an atty; not a person
w/ legal disability (only by a general guardian or guardian ad litem for a
minor/incompetent; by a relative of minor/incompetent is officious – no effect
except to show atty’s good faith in appearing in court)
- Agent can engage atty for principal; executor/admin for trustee
- Wife even w/o consent of husband in cases where she can prosecute/defend
- BOD for a corp, or delegate to officer
ETHICAL NORMS AND RESTRICTIONS

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.

- Lawyer may not refuse his services

- Lawyer shall not decline to represent unpopular clients (Rule 14.01)
- Lawyer shall not decline appointment by the court or the IBP

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.

- Court appoints counsel de officio in crim action

 Before arraignment
 Appeal
 Confined in prison, w/o counsel de parte, has signed notice of
appeal himself
- Frequent appointment of same counsel discouraged – overburdening counsel
- A lawyer may refuse to represent indigent on valid grounds

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.

- A lawyer shall observe the same standard for all clients

Duty to decline employment

- Duty to decline employment

o If acceptance would involve a violation of any of the rules
 Ie. Conflict of interest, intervention while in govt, means to
advertise professional skills, he or partner is a possible witness in
the case (double capacity)
Rule 14.03 - A lawyer may not refuse to accept representation of an indigent client
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(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.

- If its acceptance will involve a violation of any of the rules of the legal profession
- Any matter that may adversely affect the interest of his former client
o ie. Conflict of interest,
o employment that may nullify a contract he prepared,
o as an advocate in any matter in which he had intervened while in the
government service,
o investigated or passed upon while in the government service,
o as a means to advertise his professional services or skill (ie. Printed for
circulation; columnist to answer questions)
o to act as counsel and witness at the same time,
o if he cannot carry out his work effectively or competently

Duty to disclose matters material to employment

- A lawyer, in conferring w/ 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 client
- More for the protection of the lawyer than client; client may have reason to
suspect; client may lose confidence

- Duty of atty to disclose and explain to prospective client all circumstances of his
relations to the parties and any interest in/connection w/ the controversy, which in
his honest judgment might influence the client in the selection of counsel
 More for the protection of counsel
 Concealment may cause client to lose confidence in him and may
even affect his fee

A lawyer shall preserve the secrets of a prospective client

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.

o Preserved by the rule on privileged communication even if client does not

retain lawyer or lawyer declines (rule 15.02)
  To make prospective client free to discuss w/o fear

- Ethical considerations in taking bad cases

o How can a lawyer take a case which he does not believe in?
 One answer: it’s the judge who determines it.
 Second answer: it’s free choice; every case has two sides, and for
every lawyer on the wrong side, there’s another on the right side
 Both answers ignore some fundamental points:
 A lawyer certainly knows whether a case is good or bad
because it is not only his function but his duty to find out
o Crim action – lawyer’s duty to accept a crim case
o Civil – rules enjoin lawyer from taking a bad case:
 Atty’s signature in every pleading
constitutes a certificate by him that there is a
good cause to support it, not interposed for
delay
 Duty to counsel or maintain such actions or
proceeding only as appear to him to be just
and such defenses only as he believes to be
honestly debatable under the law
 Not to encourage
commencement/continuance of an action or
proceeding or delay any man’s cause for any
corrupt motive or interest
 Must decline – if intended to harass or injure