10
CANON 15, CPR represents such client’s cause. This
- A LAWYER SHALL OBSERVE
CANDOR, FAIRNESS AND LOYALTY
IN ALL HIS DEALINGS AND
TRANSACTIONS WITH HIS CLIENT.
Note: Under this Rule, a lawyer is
expected to have an undivided
allegiance, a conspicuous and high
degree of good faith, disinterestedness,
candor, fairness, loyalty, fidelity and
absolute integrity in all his dealings and
transactions with his clients. He must
also renounce every personal
advantage conflicting in any way,
directly or indirectly, with the interest of
his client.
If in case that the lawyer finds that his
client’s cause is defenseless or bereft of
merit, he shall advise his client not to file
a case but rather, submits his self to
possibility of compromise if that will give
the greatest justice to him.
Rationale: Practice of law is a legal
profession and not a business. A lawyer
should resist from filing a case just for
his own benefit and for the expense of
justice.
Rule 15.01 - A lawyer, in conferring with
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 prospective client.
Q: Is a lawyer bound to inform his
prospective client of the possible conflict
of interest that may arise in case he
represents such client’s cause?
A: Yes, he is bound to inform his
prospective client of the possible conflict
of interest that may arise in case he
matter is mandated by Rule 15.01 of
Canon 15 of the Code of Professional
Responsibility.
Rationale: This is to encourage
transparency between the lawyers and
his client.
a. Confidentiality rule
Note: Confidentiality means the relation
between lawyer and client or guardian
and ward, or between spouses, with
regard to the trust that is placed in the
one by the other. (Black’s Law
Dictionary 7th Edition 1990, 2004).
This rule suggests the fiduciary
relationship between client and his
lawyer.
b. Privilege Communication
Rule 15.02, Canon 15, CPR- A lawyer
shall be bound by the rule on privilege
communication in respect of matters
disclosed to him by a prospective client.
Basis: This prohibition is founded on
principles of public policy, good taste
and, more importantly, upon necessity.
In the course of a lawyer-client
relationship, the lawyer learns all the
facts connected with the client’s case,
including its weak and strong points.
Such knowledge must be considered
sacred and guarded with care. No
opportunity must be given to him to take
advantage of his client; for if the
confidence is abused, the profession will
suffer by the loss thereof. It behooves
lawyers not only to keep inviolate the
clients confidence, but also to avoid the
appearance of treachery and double ─
dealing for only then can litigants be
encouraged to entrust their secrets to

their lawyers, which is paramount in the
administration of justice. It is for these
reasons that we have described the
attorney-client relationship as one of
trust and confidence of the highest
degree. (Pacana vs. Pascual-Lopez,
591 SCRA 1 (2009))
Related statutory basis:
a. Revised Penal Code
Art. 209. Betrayal of trust by an
attorney or Solicitor - Revelation of
Secrets. In addition to the proper
administrative action x x x shall be
imposed upon an attorney-at-law or
solicitor (procurador judicial) who, by
any malicious breach of professional
duty or of inexcusable negligence or
ignorance, shall prejudice his client, or
reveal any of the secrets of the latter
learned by him in his professional
capacity.
b. Revised Rules of Court
Section 24 (b), Rule 130.
Disqualification by reason of
privileged communication. – The
following persons cannot testify as to
matters learned in confidence in the
following cases:
XXX
(b) An attorney cannot, without
the consent of his client, be
examined as to any communication
made by the client to him, or his
advice given thereon in the course
of, or with a view to, professional
employment, nor can an attorney’s
secretary, stenographer, or clerk be
examined, without the consent of the
client and his employer, concerning
10
any fact the knowledge of which has
been acquired in such capacity;
XXX
Q: What is the concept of privileged
communication?
A: Privileged communication
suggests that an attorney cannot,
without the consent of his client, be
examined as to any communication
made by the client to him or his
advice given thereon in the course of
professional employment; nor can an
attorney’s secretary, stenographer, or
clerk be examined, without the
consent of the client and his
employer, concerning any fact the
knowledge of which has been
acquired in such capacity (Rule 130,
Section 24 (b) of the Revised Rules
of Court).
Purpose: The purpose of the rule of
confidentiality is actually to protect the
client from possible breach of
confidence as a result of a consultation
with a lawyer. (Hadjula vs. Madianda,
526 SCRA 241, (2007))
Q: What are the requisites for privileged
communication to apply?
A: For privileged communication to
exist, the following requisites must
concur:
1) There is an attorney-client
relationship or a kind of consultancy
requirement with a prospective client;
2) The communication was made
by the client to the lawyer in the
course of the lawyer’s professional
employment;
 10

3) The communication must be such matters are not covered by the

intended to be confidential. privileged communication between a
lawyer and his client. This is because
Q: Atty. X was a lawyer of Mr. D in a
Atty. X testified on matters regarding Mr.
rape case that was filed against him by
D’s future commission of a crime which
R before the Regional Trial Court of
he as a member of the society has the
Quezon City. Mr. D was so afraid that he
obligation to divulge for the protection of
might be convicted for the said crime.
the public.
Thus, he planned to kill R. Mr. D
confessed his plan to Atty. X. Atty. X Wherefore, Atty. X shall not be
tried to stop Mr. D but he failed to suspended or disbarred on the ground
convince the latter. Mr. D killed R. A stated by Mr. D.
criminal case for murder was filed
Note: The privilege communication
against Mr. D. Atty. X withdrew as
continues to exist even after the
counsel of Mr. D in the rape case.
termination of the attorney-client
Thereafter, he testified on the murder
relationship. In the case of Baldwin v.
case filed against Mr. D. Mr. D filed a
CIR, the Supreme Court elucidated that
disbarment case against Atty. X for
the privileged character of the
violating Rule 15.02, Canon 15 of the
communication ceases only when
Code of Professional Responsibility. Is
waived by the client himself or after his
the case filed by Mr. D against Atty. X
death, by the heir or legal
meritorious? Why or Why not?
representative.
A: No, the case is not meritorious. Rule
The party who avers that the
15.02 of the Code of Professional
communication is privileged has the
Responsibility must be read in relation to
burden of proof to establish the
paragraph b of Section 24, Rule 130 of
existence of the privilege unless from
the Revised Rules of Court.
the face of the document itself, it clearly
It is a settled rule in our appears that it is privileged. The mere
jurisprudence that the privileged allegation that the matter is privileged is
communication cannot be invoked not sufficient. (People v. Sleeper, No.
against a lawyer who, during the 22783, December 3, 1924; Lapena Jr.,
existence of attorney-client relationship, 2009)
acquires a knowledge about a crime that
Q: What are the exceptions to the
his client is planning to commit. This is
privileged communication between a
founded on the principle that a client has
lawyer and his client?
the obligation to the society to reveal
any information that he acquires A: The exceptions are:
regarding a commission of future crimes
to protect the interest of the public. 1) When a lawyer is accused by the
client and he needs to reveal information
In the instant case, Atty. X shall to defend himself
not be liable for testifying before the
court about the murder case of R since;

2) When the client discloses the
intention to commit a crime or unlawful
act. (Future crime).
Q: Atty. X was the counsel of Mr. D in
the tax evasion case filed by the BIR
against the latter. The wife of Mr. D
called Atty. X because of the suicidal
note of Mr. D. Atty. X immediately went
to the office of Mr. D since the latter was
also his friend. Mr. D who was about to
jump from the third floor of the building
shouted and divulged that he was an
“estafador” and that he was the one who
killed R. Many people heard this.
Thereafter, Mr. D jumped from the
building and sustained serious physical
injuries. Is the information acquired by
Atty. X to Mr. D considered as
privileged? Why or why not?
A: No, the information that he obtained
from Mr. D cannot be considered
privilege because of the absence of the
essential requisites for it to be
privileged.
It is a settled rule in our
jurisprudence that for an information to
be privileged, it must be obtained by the
counsel in the course of his professional
duty with his client and that the
information is intended by the client to
be confidential.
In the instant case, Atty. X
acquired the information when he was
not in the exercise of his duty as lawyer
to his client but as friend to Mr. D.
Besides, the information was not
intended to be confidential because Mr.
D divulged the information although he
knew that many people would hear it
because of his attempt to committee
10
suicide in the third floor of his office that
caught the attention of the public.
Wherefore, the information was
not privileged.
Q: What is the doctrine of imputed
knowledge?
A: The Doctrine of imputed knowledge
is based on the assumption that an
attorney, who has notice of matter
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 one judicial person. For attorney-
client privilege to apply, however, the
period to be considered is the date when
the privileged communication was made
by the client to the attorney in relation to
either a crime committed in the past or
with respect to a crime intended to be
committed in the future (if past, privilege
applies; if future, does not apply). In
order that a communication between a
lawyer and his client be privileged, it
must be for a lawful purpose or in the
furtherance of a lawful end. (People v.
Sandiganbayan, 275 SCRA 505 (1996))
Q: How is Rule 15.02 different from
Canon 17?
A: Rule 15.02 speaks of the duty of
confidentiality to a prospective client
while Canon 17 provides for the duty of
confidentiality to an actual client. (Funa,
2009).
Q: When is communication not
privileged?

A: A communication made by a client to
a lawyer is not privileged:
1. After pleading has been filed.
Note: Pleading ceases to be privileged
communication – becomes part of public
records.
2. When communication was intended
by the client to be sent to a third person
through his counsel.
Note: It loses its confidential character
as soon as it reaches the hands of a
third person.
Q: When is a lawyer-client relationship
established?
A: A lawyer-client relationship was
established from the very first moment
complainant asked respondent for legal
advice, regarding the former’s business.
(Hadjula vs. Madianda, 526 SCRA 241,
(2007))
Note: To constitute professional
employment, it is not essential that the
client employed the attorney
professionally on any previous occasion.
It is not necessary that any
retainer be paid, promised, or charged;
neither is it material that the attorney
consulted did not afterward handle the
case for which his service had been
sought.
If a person, in respect to business
affairs or troubles of any kind, consults a
lawyer with a view to obtaining
professional advice or assistance, and
the attorney voluntarily permits or
acquiesces with the consultation, then
the professional employments is
established. (Hadjula vs. Madianda, 526
SCRA 241, (2007))
10
Q: Does the close personal relationship
between the lawyer and the complainant
affect the lawyer-client relationship?
A: No, the close personal relationship
between the lawyer and the complainant
does not affect the lawyer-client
relationship. (Hadjula vs. Madianda, 526
SCRA 241, (2007))
Rule 15.03, Canon 15, CPR – A lawyer
shall not represent conflicting interests
except by written consent of all
concerned given after a full disclosure of
the facts.
Q: May a lawyer represent conflicting
interest?
A: As a general rule, a lawyer cannot
represent diverse interests. It is highly
improper to a lawyer to represent both
sides of an issue. Besides, during the
existence of attorney-client relationship,
the lawyer obtains information that he
may use against the other party creating
comparative advantage to his other
client. This will make the integrity of the
lawyer in doubt. It applies although the
attorney’s intention and motives were
honest and he acted in good faith.
However, the rule admits an
exception Representation of conflicting
interest may be allowed where the
parties consent to the representation
after full disclosure of facts. (Nakpil v.
Valdez, A.C. No. 2040, Mar. 4, 1998)
Note: A lawyer may at a certain stage of
the controversy and before it reaches
the court represent conflicting interests
with the express written consent of all
parties concerned given after disclosure
of the facts. The disclosure should
include an explanation of the effects of

the dual representation, such as the
possible revelation or use of confidential
information.
An attorney owes loyalty to his client not
only in the case in which he has
represented him but also after relation of
attorney and client has terminated.
Q: What are the three test to determine
whether conflict of interest exist?
A: In the case of Aninon vs. Sabitsana,
the Supreme Court enunciated the three
test to determine whether conflict of
interest exist:
“First Test. Whether a lawyer is
duty-bound to fight for an issue or claim
in behalf of one client and, at the same
time, to oppose that claim for the other
client - if a lawyer’s argument for one
client has to be opposed by that same
lawyer in arguing for the other client,
there is a violation of the rule.
Second Test. Whether the
acceptance of a new relation would
prevent the full discharge of the lawyer’s
duty of undivided fidelity and loyalty to
the client or invite suspicion of
unfaithfulness or double-dealing in the
performance of that duty.
Third Test. Whether the lawyer
would be called upon in the new relation
to use against a former client any
confidential information acquired
through their connection or previous
employment.”
May a lawyer represent conflicting
interests?
Q: R was indebted to D and Y for an
amount of 10, 000. 00. They asked Atty.
X to draft a demand letter against R.
10
Atty. X acquired certain information to D
regarding the transaction that transpired
among D, Y and R. D and Y hired
another lawyer to represent them for the
collection of sum of money that they
filed against R. On the other hand, R
hired Atty. X as his lawyer. Atty. X
learned that he would be labored in
conflict of interest, thus, he asked for a
written consent to D. D allowed Atty. X to
represent R as contemplated to the
written consent that he gave to Atty. X. Y
filed an administrative case against Atty.
X for violating Rule 15.03 Canon 15 of
the Code of Professional Responsibility
alleging that Atty. X represented R under
a conflict of interest. Atty. X set up a
defense that he should not be liable for
violation of the said provision of the
Code of Professional Responsibility
because he asked a written consent
from D to whom he acquired confidential
information. Is the defense meritorious?
Why/why not?
A: No, the defense is not meritorious.
Rule 15.03, Canon 15 of the
Code of Professional Responsibility
provides that:
“A lawyer shall not represent
conflicting interests except by written
consent of all concerned given after a
full disclosure of the facts.”
In the instant case, the written
consent that D gave to Atty. X was
binding only between D and Atty. X. It
cannot be used against Y who did not
give his written consent. He must also
secure a separate written consent from
Y although he did not acquire such
confidential information to the latter
because by the act of drafting a demand

letter in favor of Y, there is already an
Attorney-client relationship exist
between them and representing D would
be adverse to his former client, Y.
Besides, the Code of professional
Responsibility mandates him as a
lawyer to ask or secure a written
consent to all the concerned parties. Y,
being one of the complainants, is a
concerned party and therefore, for atty.
X to represent R, he must also obtain a
written permission to Y.
In view of the foregoing, Atty. X
fell short to the requirements set forth by
the Code of Professional Responsibility.
His defense is not meritorious which
makes him administratively liable for
representing conflicting interest.
Q: What are the instances when a
lawyer may not represent conflicting
interests despite consent of both parties
concerned?
A: The instances when a lawyer may
not represent conflicting interest despite
of written consent are:
1. Where the conflict is between
the attorney’s interest and that of a
client; or
2. Where the conflict is between a
private client’s interests and that of the
government or any of its instrument.
Q: What are the effects of representing
adverse interests?
A: The effects of representing adverse
interest are:
1. Disqualification as counsel of
new client on petition of former client;
2. Where such is unknown to,
and becomes prejudicial to the interests
10
of the new client, a Judgment against
such may, on that ground, be set aside;
3. The attorney’s right to Fees
may be defeated if found to be related to
such conflict and such was objected to
by the former client, or if there was a
concealment and prejudice by reason of
the attorney’s previous professional
relationship with the opposite party;
4. A lawyer can be held
administratively liable through
disciplinary action and may be held
Criminally liable for betrayal of trust.
Q: X’s spouses were the owners of an
apartment to which L was a tenant. L
failed to pay the rental fees and due to
that an ejectment case was filed by X’s
spouses against her. X’s spouses
retained the services of Atty. Y. The
court ruled in favor of X’s spouses and
asked L to vacate the premises. The
court also issued a writ of execution
ordering the sheriff to get personal
properties of L in order to satisfy the
judgment. R, the brother of L and his
mother went to Atty. Y to ask for legal
advice. Atty. Y referred them to Atty. E,
his partner. R and his mother tried to
negotiate and showed his willingness to
pay the default rental fees of his sister
with the condition that he would be
considered as the new lessee. R failed
to follow the terms and conditions of the
negotiation. However, in order to
suppress the execution of writ, Atty. Y
gave an advice to R to execute an
affidavit of ownership. The execution of
writ was deferred but the stove was not
return to R. R filed a disbarment case
against Atty. Y for representing conflict
of interest? Is the case meritorious?
Why or why not?
 10

A: No, the case is not meritorious. Rule 15.04, Canon 15, CPR – A lawyer
may, with the written consent of all
In the case of Solatan vs.
concerned, act as mediator, conciliator
Incocentes, the Supreme Court held
or arbitrator in settling disputes.
that:
Q: Supposed that a lawyer who act as a
“The act of giving advice to
mediator will also be labored under a
impede the execution of the writ
conflict of interest, does he need to
obtained by the previous client of the
secure written consent as mandated by
lawyer giving reliefs from the new client
Rule 15.03 of the Code of Professional
is a culpable act of disloyalty to the
Responsibility to perform such function?
previous client.”
A: Yes, he must still secure the written
Atty. Y did not violate Rule 15.03,
consent of all the concerned parties. It is
Canon 15 of the Code of Professional
a settled rule that where the lawyer
Responsibility which prohibits
performs the function of mediator,
representing conflict of interest. The act
conciliator, or arbitrator in disputes
of Atty. Y of giving legal advice regarding
where the lawyer labors under a conflict
the remedy that R may use to suppress
of interest, he remains subject to the
the writ of execution filed by him cannot
requirement of a prior written informed
be a ground for his disbarment or
consent from all parties concerned. The
suspension. X’s spouses, the client of
requirement subsists even if the adverse
Atty. Y, has no interest over the property
interest is very slight, and
of R because the writ of execution was
notwithstanding the lawyer’s honest
enforced against L, the sister of R and
intention and motive.
not against R. Thus, there is no conflict
of interest in the act of giving advice to R Rule 15.05, Canon 15, CPR - A lawyer
who was not a party to the case. R when advising his client, shall give a
asked for legal advice in order for his candid and honest opinion on the merits
property to be protected from the said and probable results of the client's case,
writ of execution which included his neither overstating nor understating the
personal properties although it was prospects of the case.
issued not against him.
Rationale: Practice of law is not a
Wherefore, the case is devoid of business but a profession. A lawyer shall
merit. not advise the filing of a case which will
delay man’s cause for profit or only for
Note: The take- over of a client’s cause
his sole benefits. This act is improper to
of action by another lawyer does not
the practice of law because it removes
give the former lawyer the right to
the distinction between business and
represent the opposing party. It is not
practice of law to the detriment of the
only malpractice but also constitutes a
integrity of the legal profession.
violation of the confidence resulting from
the attorney-client relationship. (Castro- In the case of Cobb-Perez vs.
Justo vs. Galing, A.C. No. 6174, Lantin, the Supreme Court reminded a
November 16, 2011)

lawyer of his duty to temper his client’s
propensity to litigate.
As officers of the court, counsels
are under obligations to advise their
clients to dissuade from filing a case
which is devoid of merits. If he finds that
his client’s cause is meritorious and ripe
for judicial adjudication, he should
refrain from making bold and confident
assurance of success.
Q: Mr. Y wanted to declare his marriage
with O as void ab initio on the ground of
sexual infidelity. This is also for Mr. Y to
marry D. He asked for the services of
Atty. X, an expert of Family law,
regarding the said matter. Atty. X knew
that sexual infidelity is not a ground for
declaration of absolute nullity of
marriage under Article 35 of the Family
Code but a ground for legal separation
under Article 55 of the Family Code.
Because of that, Atty. X advised his
client to file a legal separation rather
than to file an absolute nullity of
marriage. But, the client really wanted
his marriage to declare void and
promised that he would give 800, 000 to
Atty. X plus house and lot if the latter will
win the case. What will Atty. X do?
A: Atty. X shall refuse to accept the case
despite of the offer.
Rule 15.05, Canon 15, Code of
Professional Responsibility states that:
“A lawyer when advising his
client, shall give a candid and honest
opinion on the merits and probable
results of the client's case, neither
overstating nor understating the
prospects of the case.”
10
Under this Rule, it is the duty of
Atty. X to advise his client not to file a
case that is absolutely devoid of merit or
that will delay the administration of
justice. This is because a lawyer is an
agent of justice and his loyalty to the
client is only secondary to his fidelity to
the court or justice. If he accepts the
case, he will violate the important duty of
a lawyer which is to uphold the integrity
of the legal profession by preserving the
distinction of the legal profession to a
business.
Thus, to avoid such scenario,
Atty. X shall decline from representing
the said client despite of his large offers.
Q: Assuming that Atty. X
accepted the case and later a
disbarment case was filed against him,
can he used Rule 14.01, Canon 14 of
the Code of Professional Responsibility
as a defense to exonerate from his
liability?
A: No, he cannot invoke such
Canon because that Canon is applicable
only in criminal cases and not to civil
cases like declaration of absolute nullity
of marriage. Besides, even if that Canon
is applicable in civil case, he cannot still
use it as a valid defense because the
act of Atty. X of refusing to accept the
case is justified. He did it to comply with
his other obligations under the Code of
Professional Responsibility. The Code
must be interpreted to give meaning to
all its provisions and not to interpret it’s
provision separate from the other.
Wherefore, Atty. X cannot be
exonerated from his liability by using
Canon 14 specifically Rule 14.01 as a
defense.
 10

especially in occupations related to the

Rule 15.06, Canon 15, CPR – A practice of law.
lawyer shall not state or imply that he Reason: Certain ethical considerations
is able to influence any public official, may be operative in one profession and
tribunal or legislative body. not in the other. (Agpalo)
Note: This rule protects against Note: A lawyer is not barred from dealng
influence peddling. Some prospective with his client but the business
clients secure the services of a transaction must be characterized with
particular lawyer or law firm precisely utmost honesty and good faith. Business
because he can exert a lot of influence transactions between and attorney and
on a judge and some lawyers exact big his client are disfavored and
fees for such influence. (Agpalo) discouraged by policy of law, because
by virtue of a lawyer’s office, he is an
c. Compliance with Laws easy position to take advantage of the
credulity and ignorance of his client.
Thus, there is no presumption of
Rule 15.07, Canon 15, CPR – A
innocence of improbability of
lawyer shall impress upon his client
wrongdoing in favor of lawyers. (Nakpil
compliance with the laws and the
vs. Valdez, 286 SCRA 758 (1998))
principles of fairness.
Related statutory basis:
Civil Code
Art. 19. Every person must, in the
exercise of his rights and in the
performance of his duties, act with
justice, give everyone his due, and
observe honest and good faith.
d. Concurrent Practice of another
Profession

Rule 15.08, Canon 15, CPR – A

lawyer who is engaged in another
profession or occupation
concurrently with the practice of law
shall make clear to his client whether
he is acting as lawyer or in another
capacity
General Rule: Exercise of dual
profession is not prohibited but a lawyer
must make it clear when he is acting as
a lawyer when he is otherwise,