CHAPTER 11

AUTHORITY OF ATTORNEY
GENERAL and IMPLIED AUTHORITY
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as defined by what is expected of him provided by law and the Rules of Court
only matters of ordinary procedure as to perform acts necessary or incidental to the
prosecution or management of the suit entrusted to him or the accomplishment of its
purpose for which he was retained
the procedural aspect of the litigation all proceedings to enforce the remedy, to bring
the claim, demand, cause of action or subject matter of the suit to hearing, trial,
determination, judgment and execution

SPECIAL AUTHORITY
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as defined by the written authority granted by the client to act on substantial matters
The existence of attorney-client relationship does not by itself confer upon the attorney
implied or apparent authority to bind the client on substantial matters:
a. the cause of action,
b. the claim or demand sued upon, and
c. the subject matter of the litigation
are substantial matters which the attorney may not impair, novate, compromise,
settle, surrender or destroy without the clients consent or authority.

GENERAL and IMPLIED AUTHORITY

1. To bind the client.
> Any act performed by a counsel within the scope of his general or implied authority
is regarded as the act of his client.
> The mistake or negligence of counsel may result in the rendition of an unfavorable
judgment against the client.
EXCEPT:
a. there is gross negligence of the lawyer
b. clients meritorious claim or defense has been prejudiced (i.e. non-presentation
of a crucial document)
c. there is diligence or absence of gross negligence on the part of the party
represented.
MAKING ADMISSIONS
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The authority of an attorney to manage the clients cause includes the power to
make admissions of facts for the purpose of the litigation.
The authority to make admissions is limited to the action in which he is retained,
consequently, admissions made by him on behalf of a client in one case are not
binding upon the same client in another suit
EXCEPT: express authority to make admissions or the subsequent litigation is related
to the previous controversy.

ENTERING INTO STIPULATIONS

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A lawyer has the general or implied authority to agree or stipulate upon the facts
involved in litigation even without the prior knowledge or consent of his client. His
signature in a stipulation is an admission of the truth of all the facts therein stated,
including the changes made thereon.

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The fact that the client never authorized his attorney to make a particular statement
does not detract from its binding effect, unless he raises such question seasonably,
nor does the circumstance that the fact agreed upon by the attorney is unfavorable
to the client diminish its binding force.
RATIO: a party may not be allowed to gainsay his own act or deny a right which he
has previously recognized.

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When Client not bound:

a. the party is allowed to withdraw therefrom with the consent of the other party;

b. the court permits him to withdraw from the stipulation, upon showing of palpable
mistake;
c. when what the lawyer agreed is that a witness, if presented in court, would
testify as stated by the adverse attorney.
d. when what the lawyer has stipulated is not related to the enforcement of a
remedy but to the cause of action or subject matter of the litigation
e. when the conformity of counsel to the adverse partys motion materially changes
a judgment.
2. To act as an agent of the client.
> General rules on ordinary agency apply the extent of authority of a lawyer, when
acting on behalf of his client outside of court, is measured by the same test as that
which is applied to an ordinary agent.
> In representing a client in court, the attorney acts more than an agent and has
powers different from and superior to that of an ordinary agent, he being an officer
of the court with rights, privileges and duties peculiar only to a lawyer.
SERVICE OF SUMMONS
RULE: An attorney has NO power to receive or accept on behalf of his client the service
of summons in his bare professional capacity. He cannot be regarded as an agent
for the purpose of receiving or accepting service of summons.
EXCEPT: Only as an agent of a corporation, where there are circumstances showing that
he has been conferred or is exercising additional power as to regard the attorney
as an agent upon whom service of summons intended for his corporate client
may be made and binding on the latter.
Example:
A foreign corporation which has no agent or officer in this country other than its
counsel who is also its sole representative for setting claims is sued for a sum of
money and damages, the service of summons made upon its counsel binds the
corporation because, as the sole representative charged with the duty of setting
claims against it. The attorney is presumed to have communicated to his client
the service of process upon him and as counsel he is also presumed to be prompt
in the protection of his clients interest and diligent in the discharge of his duty.
An attorney who acted as counsel for a corporate taxpayer in the administrative
stage of a tax deficiency assessment proceeding and replied on his clients
behalf to a letter of demand for payment of the deficiency tax, is deemed to be
the corporate taxpayers agent on whom summons concerning the civil action for
collection of the tax against the taxpayer may be served.
3. To collect or enforce a claim in behalf of the client.
> to take all steps necessary to collect or enforce a claim
i.e.
- sending a letter of demand requiring payment of the obligation within a
specified period
- filing the corresponding action in court in the event of the debtors refusal to
pay
- to release the debtor from his obligation upon full payment thereof in cash and
to issue a receipt therefor
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The authority to collect or receive payments for the client carries with it the duty to
promptly inform the client or to render accounting of the amounts the lawyer
received in the course of his professional employment. The fact that a lawyer has a
lien for his attorneys fees does not relieve him of these duties. (Viray vs Sanicas, AC
7337, Sept 29, 2014)

4. To appear in court in behalf of the client

APPEARANCE
- the coming into court as a party either as a plaintiff or as a defendant and asking
relief therefrom.
APPEARANCE AS COUNSEL
- a voluntary submission to the courts jurisdiction by a legal advocate or lawyer
professionally engaged to represent and plead the cause of another, such as by
actual physical appearance or by filing pleadings in court.

GENERAL APPEARANCE
- when the 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 of objecting to the
jurisdiction of the court over his person. The aim is the dismissal of the case on the
ground of lack of jurisdiction over his person.
PRESUMPTION OF AUTHORITY
- An attorney is presumed to be properly authorized to represent any cause in which
he appears in all stages of the litigation and no written authority is required to
authorize him to appear.
> FORMAL WRITTEN APPEARANCE - a pleading, asking the clerk of court to enter
his name as counsel for a party, with the signature of the client conforming
thereto, and requesting that copies of orders, processes, decision and pleadings
be henceforth sent to him at the address therein clearly indicated, with copy of
his appearance furnished the adverse party.
> Without such formal appearance, counsel is not generally entitled to notice.
> The fact that a lawyer has not entered his formal appearance does not warrant
the conclusion that the pleading filed by him has no legal effect whatsoever.
UNAUTHORIZED APPEARANCE
EFFECTS
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The unauthorized appearance of a lawyer in a case does not bind the party-client
neither shall the judgment rendered therein be imposed upon latter.
The unauthorized appearance of counsel for a plaintiff or a defendant who has
not been served with summons does not confer upon the court jurisdiction over
the person of either party.
The adverse party who has been forced to litigate as a defendant by the
unauthorized action on the part of the attorney for the plaintiff may, on that
ground, move for the dismissal of the complaint.
The counsel may be cited for contempt or may be disciplined for professional
misconduct, for wilful unauthorized appearance.

RATIFICATION OF UNAUTHORIZED APPEARANCE

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Express or implied shall retroact to the date of the attorneys first appearance and
validates the action taken by him
EXPRESS - a categorical assertion by the client that he has authorized the attorney
or that he is confirming his authority to represent him in the case.
IMPLIED - where a party, with knowledge of the fact that an attorney has been
representing him in a case, (1) accepts the benefit of the representation, or (2) fails
to promptly repudiate the assumed authority, provided that:
a. the party represented by the attorney is of age or competent or if he suffers from
any disability, he has a duly appointed guardian or legal representative;
b. the party or his guardian, as the case may be, is aware of the attorneys
representation; AND
c. the party fails to promptly repudiate the assumed authority.

5. To delegate legal work

vs. to delegate an authority or confidence
RULE: A lawyer has the implied power to delegate to his associate or assistant attorney,
under his supervision and responsibility, part or the whole of the legal work
required to be performed in the prosecution or defense of the clients cause.
EXCEPT: the client expressly prohibits such delegation
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The delegation of an attorney of a part or whole of the legal work to another lawyer
does not make the latter the counsel of the client nor does it create an attorneyclient relationship between them, THUS the client may not be held liable for the fees
of the assigned lawyer, absence of an agreement.

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An attorney may NOT delegate to a LAYMAN any work which involves a study of the
law or its application practice of law is performed only by lawyers

ACTS WHICH REQUIRE SPECIAL AUTHORITY

1. To delegate an authority
> Attorney-client relationship is one of utmost trust.
> An attorney may NOT, without the clients consent, express or implied, delegate the
confidence and the authority to another lawyer nor assign a contract of professional
services still to be rendered in favor of another lawyer.
> The client may ratify an unauthorized delegation.
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There is no violation of the trust and confidence reposed by the client Rule 138,
Section 20 (e), when the lawyer merely accommodated a party to the case out of the
latters request to temporarily represent her due to the counsel-of-records
unavailability at the time of hearing and that the lawyer did not acquire confidential
information from such appearance. (Orola vs. Ramos, AC 9860, Sept 11, 2013)

2. To discharge the clients claim for less than the amount thereof or for the full
amount in kind
3. To encash or endorse a check or draft payable to his client
4. To deliver the proceeds of a claim to a person other than to his client.
5. Other substantial matters. Article 1878 of the Civil Code
MATTERS IMPUTED TO CLIENT
1. Knowledge of the counsel is knowledge of the client
DOCTRINE OF IMPUTED KNOWLEDGE
- There is an assumption that an attorney, who has notice of matters affecting his
client, has communicated the same to his principal in the course of professional
dealings.
- 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, in legal contemplation, one juridical person.
2. Notice to counsel is notice to client; notice to client is not a notice in law
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Service of any written notice upon a party who has appeared by attorney or attorneys
shall be made upon his attorney or one of them, unless service upon the party himself is
ordered by the court.
WHEN NOT BINDING:
a. An attorney who never made a formal appearance is not entitled to notice, nor is a
notice served upon him and not upon the counsel of record who has not withdrawn
from the case binding upon the client.
b. Termination by law of the attorney-client relationship as in case of death of the
counsel or the appointment of the counsel to an office disqualifying him to continue
acting as the counsel of the client.

3. Notice to one is notice to other counsel

> If a party appears by two or more attorneys of record, notice to one attorney is notice to
the others as well as to the client
EXCEPT:
a. one of the attorneys is expressly designated as one to whom service is to be made
b. there is a clear display that one is a leading counsel and the rest are mere helpers
as when the adverse party and the court itself consider one of the lawyers as the
principal counsel.
4. Mistake or negligence of counsel binding upon client

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the client has to bear the adverse consequences of the inexcusable mistake or
negligence of his counsel or of the latters employee and may not be heard to
complain that the result of the litigation might have been different had he proceeded
differently.
EXCEPT:
a. reckless or gross negligence of counsel deprives the client of due process of law
b. when the application of the rule results in the outright deprivation of ones
property through a technicality
c. there is diligence or absence of gross negligence on the part of the party
represented

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The mistake of counsel in the conduct of the proceedings as a result of his

ignorance, inexperience or incompetence does not constitute a ground for a new
trial.
Neither does an error of counsel as to the competency of a witness, the sufficiency,
relevancy or irrelevancy of certain evidence, the proper defense, the burden of
proof, the quantum of evidence or the witness to be presented, justify a new trial.
A client who suffers prejudice by reason of his counsel's inexcusable negligence in
the discharge of his duty may, however, file an action for damages against him. He
may also institute a disbarment proceeding. Both actions can proceed
INDEPENDENTLY of the other.

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In failing to file the appellants brief, causing the dismissal of the appeal, the
respondent lawyer acted in violation of his duties under Rule 12.04, Canon 12 of
CPR, which dictates every member of the Bar not to unduly delay the clients cause.
(Figueras vs. Jimenez, AC 9116, March 12, 2014)

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The respondent lawyer has not been diligent and competent in handling the case of
the complainant when he failed to file the necessary pleading before the court,
resulting to its outright dismissal. Failure to exercise that degree of vigilance and
attention expected of a good father of a family makes the lawyer unworthy of the
trust and confidence reposed on him by his client and makes him answerable not
just to his client but also to the legal profession, the courts and society. (Cabauatan
vs. Venida, AC 10043, Nov 20, 2013)

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Even if the negligence of the lawyer did not necessarily prejudice his clients case,
his lack of honesty and trustworthiness as a lawyer and his resort to falsehood and
deceitful practices were a different matter and may be subject to disciplinary action.
(Samonte vs Abellana, AC 3452, June 23, 2014)