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 others kept by
him.
The relationship between a lawyer and a client is highly fiduciary; it requires a high degree of fidelity and
good faith. Hence, in dealing with trust property, a lawyer should be very scrupulous. Money or other trust property of
the client coming into the possession of the lawyer should be reported by the latter and accounted for promptly and
should not, under any circumstances be commingled with his own or used by him.
- (Espiritu vs. Cabredo IV 395 SCRA 19)
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.
A lawyer who obtained possession of the funds and properties belonging to his client in the course of his
professional employment shall deliver the same to his client when (a) they become due or (b) upon demand.
- (Dumagdag vs. Lumaya 197 SCRA 303)
The lawyers failure to deliver upon demand gives rise to the presumption that he has misappropriated the
funds for his own use to the prejudice of the client and in violation of the trust reposed in him.
- (Capulong vs. Alino 22 SCRA 491)
A lawyer cannot unilaterally appropriate the clients money for himself by the mere fact that the client owes
him attorneys fees.
- (Almendarez, Jr. vs. Langit 496 SCRA 402)
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.

Q: May a lawyer borrow money from a client bank?
Yes, a lawyer may borrow money from a client bank for here, the clients interests are fully protected by the
banks rules and regulations which have to be complied with. A lawyer is allowed to borrow money from his client
provided the interests of the client are fully protected by the nature of the case or by independent advice.


Fidelity of 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.
Competence and dilligence
CANON 18
A LAWYER SHALL SERVE HIS CLIENT WITH COMPETENCE AND DILIGENCE.
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.
Adequate protection
Q: How can a lawyer provide full protection of the clients interest?
The full protection of the clients interest requires no less than mastery of the applicable law and the facts
involved in a case, regardless of the nature of the assignment. (Javellana vs. Lutero 20 SCRA 717)
Q: What is the standard of care required of a lawyer?
Good father of a family. Practice of law does not require extraordinary diligence or that extreme measure of
care and caution which persons of unusual prudence and circumspection use of securing and preserving their rights
(Ediquibal vs. Ferrer,Jr. 450 SCRA 406)
Rule 18.02
A lawyer shall not handle any legal matter without adequate preparation.
Negligence
Rule 18.03
A lawyer shall not neglect a legal matter entrusted to him, and his negligence in connection there
with shall render him liable.
Q: What constitutes negligence of a lawyer?
What amounts to carelessness or negligence in the lawyers discharge of his duty is incapable of exact
formulation. That question depends upon circumstances of the case.
( Agpalo, Comments on Code of Professional Responsibility and Code of Judicial Conduct, 2004, p. 208)
Q. What is the presumption in case of doubt as to whether the lawyer was negligent?
In absence of contrary evidence, a lawyer is presumed to be prompt and diligent in the performance of his
duties and to have employed his best efforts, learning and ability in the protection of his clients interests and in
discharge of his duties as an officer of the court.
(People vs. Mantawar 80 Phil 817)
Q: Does the lawyers negligence bind the client?
Yes, but where such negligence amounts to a deprivation of due process for the client or results in serious
injustice, the client is not bound.
Q: What could be an adverse effect of inadequate preparation of the lawyer?
Inadequate preparation goes beyond the personal interests of the client. It would cast doubt on the lawyers
intellectual honesty and capacity. It may also mislead the court to look at the case at an uneven light.
( Agpalo, Comments on Code of Professional Responsibility and Code of Judicial Conduct, 2009, p. 221)

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.
Q: Who is a collaborating counsel?
A collaborating counsel is one who is subsequently engaged to assists a lawyer already handling a
particular case for a client. The same diligence required of the first counsel is required of the collaborating counsel.
Q: May a lawyer obtain the help of a collaborating counsel anytime?
The fiduciary nature of attorney client relationship prohibits a lawyer from collaborating with another in a
particular case without the consent of 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 clients request for information.
The specific duty of a lawyer under this rule is that he should notify his client of an adverse decision while
within the period to appeal to enable his 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.
Q: What is the doctrine of imputed knowledge?
The knowledge acquired by an attorney during the time that he is acting within the scope of his authority is
imputed to the client.
(Ramirez vs. Sheriff of Pampanga 75 Phil 462)
Q: What are the exceptions of this doctrine?
The following are the exception on this doctrine of imputed knowledge:
a. If strict application might foster dangerous collusion to the detriment of justice;
b. Service of notice upon party instead upon his attorney is ordered by the court
c. Notice of pre-trial is required to be served upon parties and their respective lawyers; and
d. In appeal from the lower court to the RTC, upon docketing of appeal. Failure to appeal to CA despite
instructions by the client to do so constitutes inexcusable negligence on part of the counsel.
Canon18. Rule 18.04 of the Code of Professional Responsibility requires a lawyer to keep his client
informed of the status of the case and respond within a reasonable time to the clients request for information.
(Abiero vs. Juanino A.C. No. 5302, February 2005)
Representation with zeal within legal bounds
CANON 19 - A LAWYER SHALL REPRESENT HIS CLIENT WITH ZEAL WITHIN THE BOUNDS OF THE LAW.
Use of Fair and honest means
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.
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 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.
Q: Using this rule may the lawyer communicate any information concerning the clients fraud to other person?
A lawyer may not volunteer the information the clients fraud to anybody, as it will violate his obligation to
maintain his clients secrets undisclosed.
Procedure in handling the case
Rule 19.03
A lawyer shall not allow his client to dictate the procedure on handling the case.
Q: What is the extent of his duty?
The rule speaks of procedure only. In brief, in matters of procedure, where he is skilled he is in control but
not as to the subject matter of the case.
(Pineda, Legal Ethics, 2009, p. 311)
Q: A client wants to appeal but the lawyer believes that the appeal is frivolous. May the lawyer refuse to file an appeal
or move to dismiss an appeal already filed?
No. Even if a lawyer believes that the appeal of his client is frivolous, he cannot move to dismiss the appeal
without the consent of his client. His remedy is to withraw from the case.
(People vs. Pagaro, Minute Resolution, G.R. No. 93002627, July 24, 1991.)


Attorneys Fees
Q: What are the requisites for a lwyer to be entitled to attorneys fees?
A: The following are teh requisites to be entitled to attorneys fees:
1: Existence of attorney-client relationship; and
2. Rendition by the lawyer of services to the client. (Sato vs. Rallos, 12 SCRA 84)
Q: Is a pauper-litigant exempted from paying attorneys fees?
A: No. Plaintiff who files a complaint as a pauper while exempted from payment of legal fees is not exempted
from payment of attorneys fees. (Cristobal vs. Employees Compensation Commission)
Acceptance Fees
CANON 20
A LAWYER SHALL CHARGE ONLY FAIR AND REASONABLE FEES.
Rule 138, Sec. 24: Compensation of attorneys; agreement as to fees. An attorney shall be entitled to
have and recover from his client no more than a reasonable compensation for his services, with a view
to the importance of the subject matter of the controversy, the extent of the services rendered, and the
professional standing of the attorney. No court shall be bound by the opinion of attorneys as expert
witnesses as to the proper compensation, but may disregard such testimony and base its conclusion on
its own professional knowledge. A written contract for services shall control the amount to be paid
therefor unless found by the court to be unconscionable or unreasonable.
(Rules of Court)
Limitation in the practice of law
REPUBLIC ACT No. 5185
AN ACT GRANTING FURTHER AUTONOMOUS POWERS TO LOCAL GOVERNMENTS
Section 6. Prohibition Against Practice. A member of the Provincial Board or City or Municipal Council
shall not appear as counsel before any court in any civil case wherein the province, city or municipality,
as the case may be, is the adverse party: Provided, however, That no member of the Provincial Board
shall so appear except in behalf of his province in any civil case wherein any city in the province is the
adverse party whose voters are en-franchised to vote for provincial officials, nor shall such member of
the Provincial Board or City or Municipal Council appear as counsel for the accused in any criminal case
wherein an officer or employee of said province, city or municipality is accused of an offense committed
in relation to the latter's office, nor shall he collect any fee for his appearance in any administrative
proceedings before provincial, city or municipal agencies of the province, city or municipality, as the
case may be, of which he is an elected official.
The provisions of this Section shall likewise apply to provincial governors and city and municipal mayors.

Q: What are the two concepts of retainer?
A: The two concepts of retainer are:
1. 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.
2. Fee which a client pays to the attorney
(Agpallo, Legal and Judicial Ethics, 2009, p. 186)
Q: What are the different kinds of retaineer agreeement?
A: The following are the different kinds of retainer agreement:
1. General retainer 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 the fees, which could be monthly or
otherwise. The fees are paid whether or not there are cases referred to the lawyer; or

2. Special retainer- fee for a specific case or service rendered by the lawyer for the client.
(Agpallo, Comments on Code of Professional Responsibility and Code of Judicial Conduct,
2004, p. 301)