Code of Professional Responsibility

and Accountability
(Sections 53-56)
Prepared by: John Kayle C. Borja
 • Termination of engagement by the
Lawyer - Section 53
• Termination of engagement by the Client
– Section 54
• Termination of Engagement upon Death
Agenda – Section 55
• Accounting and Turn-over of funds and
properties upon termination of
engagement – Section 56
• Jurisprudence
• Bar Questions

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Section 53: Termination of engagement by the lawyer. – A lawyer shall terminate the client
engagement only for good cause and upon written notice, in any of the following cases:

(a) When the client pursue and illegal or immoral course of conduct in connection with the
engagement;

(b) When the client insists that the lawyer pursue conduct that is violative of these Canons and
rules;

(c) When the lawyer’s inability to work with a co-counsel will not promote the best interest of the
client;

(d) When the moral predisposition or the mental or physical condition of the lawyer renders it
difficult to carry out the engagement effectively;

(e) When the client deliberately fails to pay the fees for the lawyer’s services, fails to comply with
the retainer agreement, or can no longer be found despite diligent efforts;

(f) When the lawyer is elected or appointed to public office;

(g) Other similar cases.

Jurisprudence
In Perfecto v. Judge Esidera this Court discussed how morality is understood in our
jurisdiction:
Morality refers to what is good or right conduct at a given circumstance.
In Estrada v. Escritor, this court described morality as "how we ought to live and
why.“
Morality may be religious, in which case what is good depends on the moral
prescriptions of a high moral authority or the beliefs of a particular religion. Religion, as this
court defined in Aglipay v. Ruiz, is "a profession of faith to an active power that binds and
elevates man to his Creator." A conduct is religiously moral if it is consistent with and is
carried out in light of the divine set of beliefs and obligations imposed by the active power.
Morality may also be secular in which case it is independent of any divine moral
prescriptions. What is good or right at a given circumstance does not derive its basis from any
religious doctrine but from the independent moral sense shared as humans.
 Jurisprudence
Ceniza v. Atty. Rubia, A.C. No. 6166, 02 Oct. 2009:
Standing alone, heavy workload is not sufficient reason for the withdrawal of a
counsel. When a lawyer accepts to handle a case, whether for a fee or gratis et amore, he
undertakes to give his utmost attention, skill and competence to it regardless of its
significance. Failure to fulfill his duties will subject him to grave administrative liability as
a member of the Bar.

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 Rules of Court

A lawyer may retire at any time from any action or special proceeding:
1. With the written consent of his client filed in the court and copy thereof served upon the
adverse party; or
2. 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 (Sec. 26, rule 138)

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 General Rule and Exception
GR: The withdrawal in writing, with the client’s conformity, does not require the approval of the
Court to be effective.
Exception: Villasis v. CA, G.R. No. L-34369:
If now new counsel has entered his appearance, the court mat, in order to prevent a
denial of a party’s right to the assistance of counsel require that the lawyer’s withdrawal be
held in abeyance until another lawyer shall have appeared for the party.
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 and by the court to do what the interests of his client require. (Pineda,
2009)

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 Bar Question 2004
Q: On the eve of the initial hearing for the reception of evidence for the defense, the
defendant and his counsel had a conference where the client directed the lawyer to present as
principal defense witnesses 2 persons whose testimonies were personally known to the lawyer to
have been perjured.
The lawyer informed his client that he refused to go along with the unwarranted course
of action proposed by the defendant. But the client insisted on the directive, or else he would not
pay the agreed attorney’s fees. When the case was called for hearing the next morning the lawyer
forthwith moved in open court that he be relieved as counsel for the defendant. Both the defendant
and the plaintiff’s counsel objected to the motion.
a. Under the given facts, is the defense lawyer legally justified in seeking withdrawal from the
case? Why or why not? Reason briefly.
b. Was the motion for relief as counsel made by the defense lawyer in full accord with the
procedural requirements for a lawyer’s withdrawal from a court case?

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 Ans: A: YES. He is justified. Under Rule 22.01 of the CPR, a lawyer may withdraw his services “if
the client insists that the lawyer pursue conduct violative of these canons and rules”. The insistence
of the client that the lawyer present witnesses whom he personally knows to have been perjured,
will expose him to criminal and civil liability and violate his duty of candor, fairness and good
faith to the court.
Ans: B: A: NO. His actuation is not in accord with the procedural requirements for the lawyer’s
withdrawal from a court case. Whether or not a lawyer has a valid cause to withdraw from a case,
he cannot just do so and leave the client in the cold unprotected. He must serve a copy of his
petition upon the client and the adverse party. He should, moreover, present his petition well in
advance of the trial of the action to enable the client to secure the services of another lawyer.

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 Bar Question 2000
Q: Atty. X filed a notice of withdrawal of appearance as counsel for the accused Y after the
prosecution rested its case. The reason for the withdrawal of Atty. X was the failure of accused Y to
affix his conformity to the demand of Atty. X for increase in attorney's fees. Is the ground for
withdrawal justified? Explain. (2000 BAR)
Ans: The ground for the withdrawal is not justified. Rule 22.01(e) of the CPR provides that a
lawyer may withdraw his services when the client deliberately fails to pay the fees for his services
or fails to comply with the retainer agreement. In this case, the client has not failed to pay the
lawyer's fees or to comply with the retainer agreement. He has only refused to agree with the
lawyer's demand for an increase in his fees. It is his right to refuse as that is part of his freedom of
contract.

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 Section 54. Termination of engagement by the client.

The lawyer-client engagement may be terminated by the client at any time upon loss of trust and
confidence.

The termination of the engagement shall not relieve the client from full payment of all
professional fees due to the lawyer. If the engagement has been reduced to writing, the lawyer
shall be entitled to recover from the client the full compensation stipulated, unless found by
the court, tribunal or other government agency to be unconscionable or unreasonable under Canon
III, Section 41 of the CPRA.

For the payment of the compensation, the lawyer shall have a charging lien upon all
judgments for the payment of money, and executions issued in pursuance of such judgment,
rendered in the case where the lawyer’s services had been retained by the client.

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 Retaining Lien v. Charging Lien
1. Nature: RL – Passive lien. Iit cannot be actively enforced. It is a general lien. CL – Active
lien. It can be enforced by execution. It is a special lien.

2. Basis: RL – Lawful possession of funds, papers, documents, property belonging to client. CL

– Securing of a favorable judgment for client.

3. Coverage: RL – covers only funds, papers, documents, and property in the possession of the
attorney by reason of his professional employment. CL – covers all judgment for the payment
of money and executions issued in pursuance of such judgement.

4. Effectivity: RL – as soon as the lawyer gest possession of the funds, papers, documents,
property. CL – as soon as the claim for attorney’s fees had been entered into the records of the
case.

5. Applicability: RL – may be exercised before judgement or execution, or regardless thereof.

CL – generally, it is exercisable only when the attorney had already secured a favorable
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 Requisites; Charging Lien
1. Attorney-client relationship

2. The attorney has rendered services

3. A money judgment favorable to the client has been secured in the action

4. The attorney has a claim for the attorney’s fees or advances statement of his claim has
been recorded in the case with notice served upon the client and adverse party.

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 Bar Question 1994, 1997, & 1998

Q: Can a client discharge the services of his lawyer without a cause? (1994, 1997, 1998 BAR)
Ans: YES. A client has the right to discharge his attorney at any time with or without a cause
or even against his consent.

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 Termination of engagement by the client.
1. With just cause: the 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
for recovery.

2. If without just cause:

a. No express written agreement as to fees – reasonable value of his services up to the date of his
dismissal (quantum meruit).

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.

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 Section 55. Termination of engagement upon death.

The death of the lawyer or client shall terminate the lawyer-client relationship.
The death of such lawyer shall not extinguish the lawyer-client engagement between the
law firm and the client handled by such law firm.

Duties of Lawyers in Case of Death of Parties Represented

Whenever a party to a pending case dies, or becomes incapacitated or incompetent, it
shall be the duty of his attorney to inform the court promptly of such death, incapacity or
incompetency, and to give the name and residence of his executor, administrator, guardian or
other legal representative. (Sec. 16, Rule 3, Rules of Court, as amended)

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 General Rule and Exception
1. In case of death of the parties represented – as the relation of attorney and client is personal
and one of agency, it terminates upon the death of the client.
GR: The attorney loses his or her standing in court to represent the deceased client or the latter’s
estate.
XPN: He is retained by the deceased client’s administrator, executor, or legal representative.
2. In case of incapacity or incompetency of the client – the relation of attorney and client also
terminates upon the incapacity or incompetency of a client during the pendency of the litigation.
GR: The client loses the legal capacity to contract the subject matter of the action.
XPN: The guardian of the incapacitated or incompetent client may authorize the lawyer to
continue representing the client.

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 Section 56. Accounting and turn over upon
termination of engagement.
A lawyer who is discharged from or terminates the engagement shall, subject to an
attorney’s lien, immediately render a full account of and turn over all documents, evidence,
funds, and properties belonging to the client.
The lawyer shall cooperate with the chosen successor in the orderly transfer of the
legal matter, including all information necessary for the efficient handling of the client’s
representation.
A lawyer shall have a lien upon the funds, documents, and papers of the client
which have lawfully come into his or her possession and may retain the same until the fair
and reasonable fees and disbursements have been paid, and may apply such funds to the
satisfaction thereof.

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 PALENCIA v. LINSANGAN A.C. No. 10557
The relationship between a lawyer and his client is highly fiduciary. This relationship
holds a lawyer to a great degree of fidelity and good faith especially in handling money or
property of his clients. Thus, Canon 16 and its rules remind a lawyer to: (1) hold in trust all
moneys and properties of his client that may come into his possession; (2) deliver the funds and
property of his client when due or upon demand subject to his retaining lien; and (3) account
for all money or property collected or received for or from his client.
Money collected by a lawyer on a judgment rendered in favor of his client constitutes
trust funds and must be immediately paid over to the client. As he holds such funds as agent or
trustee, his failure to pay or deliver the same to the client after demand constitutes conversion. Thus,
whenever a lawyer collects money as a result of a favorable judgment, he must promptly report
and account the money collected to his client.

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 PALENCIA v. LINSANGAN A.C. No. 10557
It is the lawyer's duty to give a prompt and accurate account to his client. Upon
the collection or receipt of property or funds for the benefit of the client, his duty is to notify
the client promptly and, absent a contrary understanding, pay or remit the same to the client,
less only proper fees and disbursements, as soon as reasonably possible.
He is under absolute duty to give his client a full, detailed, and accurate account of
all money and property which has been received and handled by him and must justify all
transactions and dealings concerning them. And while he is in possession of the client's
funds, he should not commingle it with his private property or use it for his personal purposes
without his client's consent.

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 Cabigo v. Rodrigo
A counsel has no right to retain or appropriate unilaterally as lawyer’s lien any amount
belong to his client which may come into his possession.
While 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 attorney’s lien as well as his lien to
the same extent on all judgments and execution, he has secured for his client called
charging lien, he is still duty bound to render an accounting of his client’s funds and
property which may come into his possession in the course of his professional employment.
In the application of the attorney’s lien, a lawyer shall give notice to his client, otherwise,
the same might be construed as misappropriation which may subject him to disciplinary
action. (Antiquiera, 2007)

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