ACCOUNTING OF

CLIENTS FUNDS
Mercado, Melody Ann D.

Canon 16
-- A lawyer shall hold in trust all
moneys and properties of his client
that may come into his possession

Rule 16.01
-- A lawyer shall account for all
money or property collected or
received for or from the client

Such money or property

includes

clients money given to his lawyer

intended as filing fees and other legal
fees for the counterclaims in the
answer he filed for his client, which
was not paid for such purpose.

A lawyer also holds for the benefit of

his client any property redeemed with
the clients money and registered in the
lawyers name or any fund received by
him from
a judgment creditor as
consideration for his desisting from

 Money collected by a lawyer in

pursuance of a judgment in favor of his

clients is held in trust and must be
immediately turned over to them.
[Busios vs. Ricafort (1997)]
His failure to make an accounting or
return the money if the purpose for
which the money is intended has
failed, constitutes blatant disregard of
Rule 16.01 of the code.

 Money received by a lawyer from a

person who is not his client is also held

by him in trust and he is under
obligation to account for it.
A lawyer who fails to account his
clients money or return the same may
disciplined, which may range from
suspension to disbarment depending
upon the surrounding circumstances of
each case.

Angeles vs Uy Jr.
The relationship between a lawyer and a
client is highly fiduciary; it requires a high
degree of fidelity and good faith. It is designed
to remove all such temptation and to prevent
everything of that kind from being done for the
protection of the client.

CANONS OF PROFESSIONAL
ETHICS:
-- The lawyer should refrain from any
action whereby for his personal benefit
or gain he abuses or takes advantage of
the confidence reposed in him by his

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.
He should report promptly the money of
his client that has come to his
possession.
He should maintain a reputation for
honesty and fidelity to private trust

Delivery of Funds
Rule 16.03
-- A lawyer shall deliver the funds and property to
his client when due or upon demand. However,
(a) he shall have a lien over the funds and
(b) may apply so much thereof as may be
necessary to satisfy his
lawful fees and disbursements,
(c) 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.

-- the provision grants the lawyer a

lien over the clients funds in his
possession as well as on all
judgments and executions he has
secured for his client, to satisfy
lawful fees and disbursements.

Rules of Court, Rule 138

Sec.37

- Attorneys Liens. An attorney

shall have a lien upon the funds
,documents and papers of his
clients which have lawfully come
into his possession and may retain
the same until his lawful fees and
disbursements have been paid and
may apply such funds to the
satisfaction thereof