ESTABLISHING AND TERMINATION OF ATTORNEY-CLIENT RELATIONSHIP

A lawyer-client relationship is established when a lawyer voluntarily entertains a

consultation; regardless of the close relationship between the parties or the absence of
a written contract or non-payment of legal fees. Once a lawyer agrees to take up the
client's cause, the lawyer must serve the client with diligence and competence. A
lawyer who is negligent in attending to a client's cause may be grounds for
administrative sanction. (Sison vs. Dumlao, A.C. No. 11959 [2021])

In Burbe vs. Magulta1, the Philippine Supreme Court summarized the governing
principles for the privilege:

1. An attorney-client relationship is established from the very first moment the

client asked the attorney for legal advice regarding the former's business. To
constitute professional employment, it is not essential that the client employed the
attorney professionally on any previous occasion.
2. It is not necessary that any retainer be paid, promised, or charged; nor is it
material that the attorney consulted did not afterward handle the case for which his
service had been sought.
o RATIONALE: There are times when lawyers represent clients pro bono, which
act is considered social obligation. (Pineda, 2009)
3. If a person, in respect to business affairs or troubles of any kind, consults an
attorney with a view to obtaining professional advice or assistance, and the attorney
voluntarily permits or acquiesces with the consultation, then professional
employment is established.
4. Likewise, an attorney-client relationship exists notwithstanding the close
personal relationship between the attorney and the client or the non-payment of
the former's fees.

Furthermore, the duty of a lawyer to preserve his client's secrets and confidence
outlasts the termination of the attorney-client relationship and continues even after the
client's death.

Q: When does lawyer-client relationship commence?

A: Upon the meeting of the minds of the lawyer and the client then there is a perfected
contract between them.

1
AC No. 99-634, June 10, 2002.

2
Under the New Code of Professional Responsibility and Accountability

CANON 3, SECTION 3. Lawyer-client relationship. A lawyer-client relationship is

of the highest fiduciary character. As a trust relation, it is essential that the
engagement is founded on the confidence reposed by the client on the lawyer.
Therefore, a lawyer-client relationship shall arise when the client consciously,
voluntarily and in good faith vests a lawyer with the client's confidence for the
purpose of rendering legal services such as providing legal advice or
representation, and the lawyer, whether expressly or impliedly, agrees to render
such services.

Under Canon 3 of the New Code of Professional Responsibility and Accountability,

Lawyer-Client relationship arises when the client consciously, voluntarily and in
good faith vests a lawyer with the client's confidence for the purpose of rendering
legal services.

Q: Is there a need for a written contract to consummate a lawyer-client

relationship?

A: NO, it could be oral or in writing. But the law does not require that it must be in
writing, as long as there is a meeting of the minds, the relationship is consummated.

Under Canon 3 of the New Code of Professional Responsibility and

Accountability, written agreement is now REQUIRED to bind the lawyer to a client.

SECTION 4. Authority of lawyer to bind client. — A lawyer can bind a client in a legal
engagement only when so authorized through a written agreement. The lawyer,
however, cannot compromise a client's litigation, or receive anything in discharge of a
client's claim, without a special power of attorney for such purpose.

LAWYER’S TERMINATION RELATIONSHIP ATTORNEY-CLIENT

CLIENT: The rule in this jurisdiction is that a client has the absolute right to terminate
the attorney-client relationship at any time with or without cause.

ATTORNEY: The right of an attorney to withdraw or terminate the relation other than for
sufficient cause is, however, considerably restricted. Xxx He is not at liberty to abandon
it without reasonable cause. A lawyer’s right to withdraw from a case before its final
adjudication arises only from the client’s written consent or from a good cause. (Ma.
Gina L. Francisco, Josephine S. Tan, And Carlos M. Joaquin Vs. Atty. Jaime Juanito P.
Portugal, A.C. No. 6155 [March 14, 2006])

3
CANON 22: A lawyer shall withdraw his services only for GOOD CAUSE and
UPON NOTICE appropriate in the circumstances.

Rule 22.01-- A lawyer may WITHDRAW his services in any of the following cases:

a) When the client pursues an illegal or immoral course of conduct in connection with
the matter he is handling;
b) When the client insists that the lawyer pursue conduct violative of these canons
and rules;
c) When his inability to work with co-counsel will not promote the best interest of the
client;
d) When the mental or physical condition of the lawyer renders it difficult for him to
carry out the employment effectively;
e) When the client deliberately fails to pay the fees for the services or fails to comply
with the retainer agreement;
f) When the lawyer is elected or appointed to public office; and
g) Other similar cases.

Death Of a Client Automatically Terminates Client-Lawyer Relationship

The relationship between the lawyer and the client is personal and one of agency.
(Pineda, 2009, as cited in Barrameda vs. Barbara, 90 Phil. 718)

Death Of a Client Also Terminates Client-Lawyer Relationship

General Rule: A lawyer-client relationship is personal, hence, it terminates upon the

death of the party.

Exception: When the lawyer is a member of a law firm, which firm appears as counsel
for clients. Then, the lawyer-client relationship shall not be terminated. The Firm shall
continue to appear for the client unless there is an understanding that the legal services
were to be rendered only by the said attorney. (Pineda, 2009, as cited in Clifton vs.
Clark, 102 Am. St. Rep. 458)

Conflict of Interest Also Terminates Client-Lawyer Relationship

A lawyer shall not represent conflicting interests except by written consent of all
concerned given after a full disclosure of the facts. (Canon 15, CPR)

This prohibition is founded on principles of public policy and good taste. In the course of
a lawyer-client relationship, the lawyer learns all the facts connected with the client's
case, including the weak and strong points of the case. The nature of that relationship
is, therefore, one of trust and confidence of the highest degree.

4
It behooves lawyers not only to keep inviolate the client's 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 of paramount importance
in the administration of justice. (Quiambao vs. Bamba, ADM Case No. 6708 [2005])

The rule is still the same with the New Code of Professional Responsibility and
Accountability.

CANON 3, SECTION 13. Conflict of interest. — A lawyer shall not represent

conflicting interests except by written informed consent of all concerned given after a full
disclosure of the facts.

There is conflict of interest when a lawyer represents inconsistent or opposing interests

of two or more persons. The test is whether in behalf of one client it is the lawyer's duty
to fight for an issue or claim, but which is his or her duty to oppose for the other client.

Procedure to follow when withdrawal is without client’s consent

1. File a petition for withdrawal in court.

2. Serve a copy of this petition upon his client and the adverse party at least 3 days
before the date set for hearing.

NOTE: He should present his petition well in advance of the trial of the action to enable
the client to secure the services of another lawyer.

However, if no new counsel has entered his appearance, the court may, 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.
(Agpalo, 2009)

Duties of a discharged lawyer or one who withdraws

1. Immediately turn-over all papers and property to which the client is entitled; and
2. To cooperate with his successor in the orderly transfer of the case. (Pineda, 2009, as
cited in Arambulo vs. CA, 226 SCRA 589)

What are the requisites of the substitution of counsel? (BAR Q)

1. Filing of a written application for substitution

2. Written consent of the client
3. Written consent of the attorney to be substituted
4. In case such written consent cannot be secured, there must be filed with the
application proof of service of the notice of application upon the attorney to be
substituted.

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Rule 22.02 - A lawyer who withdraws or is discharged shall, subject to a retainer lien,
immediately turn over all papers and property to which the client is entitled, and shall
cooperate with his successor in the orderly transfer of the matter, including all
information necessary for the proper handling of the matter.

Retaining Lien vs. Charging Lien

Retaining Lien Charging Lien

It is a passive lien and may not be This is the equitable right of the attorney
actively enforced. It amounts to a mere to have the fees due him for services in a
right to retain the papers as against the particular suit secured by the judgment or
client until the lawyer is fully paid. recovery in such suit. The object of this
(Pineda, 2009, as cited in 5 Am. Jr. 392) lien is to protect the claim on the fruits of
the lawyer’s labor. (Pineda, 2009, as cited
in Myers vs. Miller, ,117 ALR 977)

Rule 22.02 ONLY applies to Retaining Lien

The rule only applies to retaining lien, it cannot apply to a charging lien which arises
only after counsel shall have secured a favorable money judgment for the client. The
Rule contemplates of a lawyer who withdrew from the case or is discharged without
finishing the case.

Elements for the exercise of retaining lien (ALU)

1. Attorney-client relationship;
2. Lawful possession by the lawyer of the client’s funds, documents and papers in his
professional capacity; and
3. Unsatisfied claim for attorney’s fees or disbursements. (Miranda v. Atty. Carpio, A.C.
No. 6281, September 26, 2011; Ampil v. Judge Agrava, G.R. No. L-27394, July 31,
1970)

Elements for exercise of charging lien (ASMoCAR)

1. Attorney-client relationship;
2. Legal Services was rendered;
3. Favorable Money judgment secured by the counsel for his client;
4. The attorney has a Claim for Attorney’s fees or advances; and
5. A statement of the claim has been duly Recorded in the case with notice thereof
served upon the client and the adverse party.

NOTE: A charging lien, to be enforceable as a security for the payment of attorney’s

fees, requires as a condition sine qua non a judgment for money and execution in
pursuance of such judgment secured in the main action by the attorney in favor of his
client. (Rolloza et al. v. Eastern Telecommunications Phils., Inc. G.R. No. 104600, July
2, 1999; MEBTC v. CA, G.R. No. 86100-03, January 23, 1990)

6
2. PROPER CONDUCT OF LAWYERS AND CLIENTS IN LAWYER-CLIENT
RELATIONSHIP

CANON 14 - A LAWYER SHALL NOT REFUSE HIS SERVICES TO THE NEEDY.

The poor and indigent should not be further disadvantaged by lack of access to the
Philippine legal system.

Legal aid cases

Legal aid cases are those actions, disputes and controversies that are criminal, civil and
administrative in nature in whatever stage, wherein an indigent and pauper litigants
need legal representation. (Sec. 4(c), B.M. No. 2012)

Rationale: Legal aid is not a matter of charity. It is a means for the correction of social
imbalances that may and often do lead to injustice, for which reason it is a public
responsibility of the Bar. The spirit of public service should, therefore, underlie all legal
aid offices. The same should be so administered as to give maximum possible
assistance to the indigent and deserving members of the community in all cases,
matters and situations in which legal aid may be necessary to forestall an injustice.
(Public Service, Sec. 1, Art. 1 of the IBP Guidelines on Legal Aid)

Rule 14.01 - A lawyer shall not decline to represent a person solely on account of the
latter's race, or sex. creed or status of life, or because of his own opinion regarding the
guilt of said person.

Q: Can a lawyer refuse to handle a criminal case based on his opinion that the
accused is guilty of the crime charged?

A: He cannot refuse or decline to handle a criminal case on the ground that, based on
his opinion, the accused is guilty of the crime charged. A lawyer, regardless of his
personal opinion as to the guilt of the accused, may not refuse to render his services
because every person is entitled to be defended. (Rule 14.01)

NOTE: Rule 14.01 ONLY applies to CRIMINAL CASES.

● In CIVIL CASES, a lawyer has the discretion to accept or decline the case.

Reason: One of the duties of a lawyer is to counsel or maintain such actions or

proceedings only as appear to him to be just, and such defenses only as he believes to
be honestly debatable under the law.

Rule 14.02 - A lawyer shall not decline, except for serious and sufficient cause, an
appointment as counsel de officio or as amicus curiae or a request from the Integrated
Bar of the Philippines or any of its chapters for rendition of free legal aid.

7
Counsel de Officio – a lawyer that is appointed by the court to represent, in most
cases indigent litigants who cannot afford the services of a counsel, in a criminal case.

Qualifications:

1. Members of the bar in good standing;

2. Any person, resident of the province and of good repute for probity and ability, in
localities without lawyers

Considerations in appointing a counsel de officio

1. Gravity of offense
2. Difficulty of questions that may arise; and
3. Experience and ability of appointee

Under Canon 3 Of the New Code of Professional Responsibilities and Ethics.

SECTION 23. Amicus curiae. — A lawyer shall not decline, without just cause, a
request by any court, tribunal, or other government agency to act as amicus curiae in
any proceeding relating to the lawyer's expertise or field of specialization.

● Under the New Code of Professional Responsibilities and Ethics, it removed the
phrase “except for serious and sufficient cause”, and changed it to without just
cause.
● Hence, a lawyer can only decline an appointment as amicus curae or counsel de
officio when he has just cause.

Rule 14.03 - A lawyer may not refuse to accept representation of an indigent client
unless:

(a) He is not in a position to carry out the work effectively or competently;

(b) He labors under a conflict of interest between him and the prospective client or
between a present client and the prospective client.

Q: Can a lawyer refuse to handle a case referred to him for legal assistance?

General Rule: A lawyer cannot refuse or decline his services to persons in need of his
assistance. (Canon 14)

Exception: In case of serious and sufficient causes, such as: (Rule 14.02)

1. Conflict of Interests
2. Lack of Competence
3. Health reasons

8
Rule 14.04 - A lawyer who accepts the cause of a person unable to pay his professional
fees shall observe the same standard of conduct governing his relations with paying
clients.

Q: What is expected of a lawyer who handles a case pro bono?

A: A lawyer is expected to exercise the same zeal and diligence as if he was paid to
accept the case. He is expected to deliver the same standard of conduct to pro bono
clients, with the same standard he extended to the paying client.

The supposed extreme poverty of the client is not a justifiable excuse for the failure of
his counsel to file the motion for reconsideration on time under the circumstances.
There was gross negligence on the part of the counsel in the discharge of his duty and
this cannot be countenanced if we are to have an orderly administration of justice.
(American Home Assurance vs. NLRC, G.R. No. 111929 [1996])

CANON 15 - A LAWYER SHALL OBSERVE CANDOR, FAIRNESS, AND LOYALTY IN

ALL HIS DEALINGS AND TRANSACTIONS WITH HIS CLIENTS.

General duty of a lawyer towards his clients

● To protect the interest of his clients. He owes his entire devotion to the interest of his
client. But he should not forget that he is an officer of the court, and as an officer of
the court, he should assist the court for the speedy and efficient disposition of cases.
● A lawyer has an obligation to represent a client skillfully. A lawyer must use the legal
expertise, knowledge, diligence, and preparation required for representation in order
to fulfill this duty.
● Before agreeing to represent a client in a case involving that area of law, a lawyer is
not required to have any special training or prior experience in that area of law, as
stated by the competence requirement.
● However, the attorney should only take on the representation if she can gain the
information and training necessary for adequate representation through study or
collaboration with another attorney more knowledgeable in the relevant field of law.

The lawyer and his client have a fiduciary relationship.

● The relation of attorney and client is one of trust and confidence of the highest order.
It is highly fiduciary in nature and demands utmost fidelity and good faith.
● A lawyer becomes knowledgeable about all the information relevant to his client's
case. He gains knowledge of both the action's strong and weak parts from his
customers. Such knowledge must be revered and carefully preserved. He must not
be given a chance to misuse the client's information.
● A client may reasonably expect that his counsel will make good his representations
and has the right to expect that his lawyer will protect his interests during the trial of
the case. For the general employment of an attorney to prosecute or defend a cause

9
 or proceeding ordinarily vests in a plaintiff’s attorney the implied authority to take all
steps or do all acts necessary or incidental to the regular and orderly prosecution or
management of the suit, and in a defendant’s attorney the power to take such steps
as it deems necessary to defend the suit and protect the interests of the defendant.
(Suarez vs CA [1993])

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.

Possible Involvement of Conflict of Interests

● When a lawyer confers with a prospective client, he shall ascertain whether he will
be involved in representing conflicting interest, and if so, he shall immediately inform
the prospective client.
● Lawyer shall not place his private interest over and above that of his clients. In case
of conflict of interests of a lawyer and his client, the lawyer shall give preference to
the client’s interests. (Pineda, 2009)
● Failure to disclose his prior engagement or interest is a good ground for the client to
discharge his attorney. (Pineda, 2009, as cited in McArthur vs. Fry, 10 Kan. 233)

Types of Conflict of Interest

1. Concurrent or multiple representations – Generally occurs when a lawyer

represents clients whose objectives are adverse to each other, no matter how slight
or remote such adverse interest may be.
2. Sequential or successive representation – Involves representation by a law firm
of a present client who may have an interest adverse to a prior or former client of the
firm. (CPR Annotated, PhilJA)

NOTE: What is material in determining whether there is a conflict of interest in the

representation is probability, not certainty of conflict.

Rule 15.02.- A lawyer shall be bound by the rule on privileged communication in respect
of matters disclosed to him by a prospective client.

Two-fold purpose of the rule

1. To encourage a client to make a full disclosure of the facts of the case to his counsel
without fear, and
2. To allow the lawyer freedom to obtain full information from his client. (Pineda, 2009)

Confidentiality It 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)

10
A lawyer shall preserve the confidences and secrets of his client even after the
attorney-client relation is terminated. (Canon 21, CPR)

A privileged communication is one that refers to information transmitted by voluntary

act of disclosure between attorney and client in confidence and by means of which, in
so far as the client is aware, discloses the information to no third person other than one
reasonably necessary for the transmission of the information or the accomplishment of
the purpose for which it was given. (Mercado v. Vitriolo, A.C. No. 5108, May 26, 2005)

SECTION 27. Confidentiality of privileged communication. — A lawyer shall

maintain the confidences of the client and shall respect data privacy laws. The duty of
confidentiality shall continue even after the termination of the lawyer-client engagement.

● Under the New CPRA, it now includes respecting data privacy laws.

Disclosure of a prospective client

The foregoing disqualification rule applies to prospective clients of a lawyer. Matters

disclosed by a prospective client to a lawyer are protected by the rule on privileged
communication even if the prospective client does not thereafter retain the lawyer or the
latter declines the employment. It covers crimes and offenses already committed by the
client. (Mercado v. Vitriolo, A.C. No. 5108, May 26, 2005)

REASON: To make the prospective client free to discuss whatever he wishes with the
lawyer without fear that what he tells the lawyer will be divulged or used against him,
and for the lawyer to be equally free to obtain information from the prospective client.
(Mercado v. Vitriolo, A.C. No. 5108, May 26, 2005)

General Rule: A lawyer shall not reveal the confidences of the client, including data
from the client's files, except;

a) When a written informed consent is obtained from the client;

b) When required by law, such as anti-money laundering statutes, or the Rules of
Court;
c) To the extent necessary, to collect the lawyer's fees;
d) In defense of the lawyer, or the lawyer's employees or associates; or
e) By judicial order, but only if material. (Canon 3, Sec. 28, CPRA 2023)

Duration of privileged communication

The privilege continues to exist even after the termination of the attorney-client
relationship. (Mercado v. Vitriolo, A.C. No. 5108, May 26, 2005)

NOTE: The privilege character of the communication ceases only when waived by the
client himself or after his death, by his heir or legal representative. (Lapeña Jr., 2009)

11
Rule 15.03. - A lawyer shall not represent conflicting interests except by written consent
of all concerned given after full disclosure of the facts.

General Rule: An attorney cannot represent diverse interests. It is highly improper to

represent both sides of an issue. The proscription against representation of conflicting
interest finds application where the conflicting interest arise with respect to the same
general matter and is applicable however slight such adverse interest may be. It applies
although the attorney’s intention and motives were honest, and he acted in good faith.

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, March 4, 1998; Orola v. Atty. Ramos, A.C. No. 9860; September 11, 2013)

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 (Rule 15.03, CPR; Canon 6, CPR).

The disclosure should include an explanation of the effects of the dual representation,
such as the possible revelation or use of confidential information. (Nakpil v. Valdez, A.C.
No. 2040, March 4, 1998)

Rule 15.04. - A lawyer may, with the written consent of all concerned, act as a mediator,
conciliator, or arbitrator in settling disputes.

Consent in writing is required to prevent future controversy on the authority of the

lawyer to act as mediator, conciliator or arbitrator. However, a lawyer who acts as
mediator, conciliator or arbitrator in settling a dispute cannot represent any of the parties
to it. (Pineda, 2009, as cited in Report of IBP Committee, p. 82)

Rule 15.05. - 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.

Rule 15.05 of the CPR requires that lawyers give their candid and best opinion to their
clients on the merit or lack of merit of the case, neither overstating nor understating their
evaluation thereof. Knowing whether a case would have some prospect of success is
not only a function, but also an obligation on the part of lawyers. If they find that their
client's cause is defenseless, then it is their bounden duty to advise the latter to
acquiesce and submit, rather than to traverse the incontrovertible. (Rollon v. Naraval,
A.C. No. 6424, March 4, 2005)

Rule 15.06. - A lawyer shall not state or imply that he is able to influence any public
official, tribunal, or legislative body.

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Influence-peddling

It is improper for a lawyer to show in any way that he has connections and can influence
any tribunal or public official, judges, prosecutors, congressmen and others, especially
so if the purpose is to enhance his legal standing and to entrench the confidence of the
client that his case or cases are assured of victory. (Agpalo, 2009)

Rule 15.07. - A lawyer shall impress upon his client compliance with the laws and the
principles of fairness.

Compliance with the laws

Rule 15.07 obliges lawyers to impress upon their client’s compliance with the laws and
the principle of fairness. To permit lawyers to resort to unscrupulous practices for the
protection of the supposed rights of their clients is to defeat one of the purposes of the
State, the administration of justice.

While lawyers owe their entire devotion to the interest of their clients and zeal in the
defense of their client's right, they should not forget that they are, first and foremost,
officers of the court, bound to exert every effort to assist in the speedy and efficient
administration of justice. (Suzuki v. Tiamson, A.C. No. 6542, September 30, 2005)

Lawyer Should Give Proper Advice To Clients

The lawyer shall not abet or encourage any person, specially public officials to disregard
the supremacy of the law and respect for the rights of the citizens. (Pineda, 2009, as
cited in Jessup, The Professional Ideals of the Lawyers, p. 13)

Otherwise, a lawyer who did not advise his client to obey the order of the Court is guilty
of contempt and misconduct. (Pineda, 2009, as cited in Conge vs. Deret, CA-G.R. No.
08848-CR [1974])

Rule 15.08. - 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 a lawyer or
in another capacity.

PURPOSE: This rule is intended to avoid confusion; it is for the benefit of both the client
and the lawyer. (Funa, 2009)

The lawyer should inform the client when he is acting as a lawyer and when he is not,
as certain ethical considerations governing the client-lawyer relationship may be
operative in one case and not in the other. (Report of the IBP Committee)

A party’s engagement of his counsel in another capacity concurrent with the practice of
law is not prohibited, so long as the roles being assumed by such counsel is made clear

13
to the client. (New Sampaguita Builder Construction, Inc. v. Philippine National Bank,
G.R. No. 148753, July 30, 2004)

CANON 18 - A LAWYER SHALL SERVE HIS CLIENT WITH COMPETENCE AND

DILIGENCE.

● Competence – refers to the intellectuality and capability of the lawyer to assist his
client.
● Diligence – refers to actions, performance, and industry on the part of the lawyer.

A lawyer has a duty to serve his client with competence and diligence. A member of the
legal profession owes his client entire devotion to his genuine interest, warm zeal in the
maintenance and defense of his rights, and the exertion of his utmost learning and
ability. Public interest demands that an attorney exerts his best efforts and ability to
preserve his client's cause, for the unwavering loyalty displayed to his client likewise
serves the ends of justice. (Lorenzo-Nucum vs. Cabalan [2020])

Rules 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.

A lawyer who accepts professional employment should be in a position to render

efficient and effective legal assistance. He is therefore directed not to take legal services
which he knows or should know he is not qualified or competent to render except if his
client consents, the lawyer can take as collaborating counsel another lawyer who is
competent on the matter. (Agpalo, 2009)

Consent of Client is necessary for to obtain Collaborating Counsel

Before the counsel secured by the client engages the services of a collaborating
counsel, there must be a consent of that client. Without the consent of that client, the
first counsel has no authority to get the services of a collaborating counsel.

● A Collaborating Counsel is one who is subsequently engaged to assist a lawyer

already handling a particular case for a client. (Pineda, 2009)

Rule 18.02 - A lawyer shall not handle any legal matter without adequate preparation.

A counsel for any party in a judicial controversy, by mandate of the canons of legal
ethics, and with due regard for the elementary standards of fair play, is duty bound to
prepare for trial with diligence and deliberate speed. This norm of conduct is no less
applicable in a detainer case, even if the issues are essentially simple and
uncomplicated. (Javellana vs. Lutero, G.R. No. 23956 [1967]) Hence, a lawyer should

14
devote enough time, care, and attention to each of his cases. Due to this, a practicing
attorney should only take on the number of cases he can handle.

Rule 18.03 - A lawyer shall not neglect a legal matter entrusted to him, and his
negligence in connection therewith shall render him liable.

Q: Is the negligence of the counsel binding to the client?

General Rule: The negligence of the counsel is considered as the negligence of the
client.

Exceptions: However, in several case the Supreme Court admitted exceptions to the
general rule, to wit:
1. The client is deprived of due process (Apex Mining vs. CA, G.R. No. 133750
[1999])
2. Application of the general rule will result in outright deprivation of clients liberty
or property. (Legarda vs. CA, G.R. No. 94457 [1991])
3. Where the interest of justice so requires, and accord relief to the client who
suffered by reason of the lawyers gross negligence. (Callangan vs. People, G.R.
No. 153414 [2006])

NOTE: There must be a clear and convincing evidence that the counsel was grossly
negligent and it should not be accompanied by the client’s own negligence.

Rule 18.04 - A lawyer shall keep the client informed of the status of his case and shall
respond within a reasonable time to the client's request for information.

● An attorney has an obligation to swiftly inform his client whenever he has information
to share that is crucial for the client to know. The client has a right to full
transparency regarding the strategy used to protect his interests or the rationale
behind specific actions performed or omitted.

3. CONFIDENTIALITY BETWEEN LAWYERS AND CLIENTS

CANON 21 - A LAWYER SHALL PRESERVE THE CONFIDENCE AND SECRETS OF

HIS CLIENT EVEN AFTER THE ATTORNEY-CLIENT RELATION IS TERMINATED.

● Confidence refers to information protected by the attorney-client privilege under the

Rules of Court. (Pineda, 2009)
● Secret refers to other information gained in the professional relationship that the
client has requested to be held inviolate or the disclosure of which would be
embarrassing or would likely be detrimental to the client. (Pineda, 2009, as cited in
Report of IBP Committee, p. 117)

15
Rule 21.01 - A lawyer shall not reveal the confidences or secrets of his client
except;

(a) When authorized by the client after acquainting him of the consequences of the
disclosure;
(b) When required by law;
(c) When necessary to collect his fees or to defend himself, his employees or
associates or by judicial action.

Privileged Communication

General Rule: The lawyer is duty-bound to preserve the secret given by the client to the
lawyer.

Exceptions:

(a) When authorized by the client after acquainting him of the consequences of the
disclosure;
(b) When required by law;
(c) When necessary to collect his fees or to defend himself, his employees or
associates, or by judicial action.

Exception to the exception: In matters of Unprivileged Information, the lawyer may be

judicially compelled to make a disclosure even if the client objects.

Q: Can the lawyer be compelled by the court to disclose the information?

A: YES, the lawyer may be judicially compelled to disclose the information, but he
cannot voluntarily disclose the same.

Q: What if the client objected to the disclosure of the unprivileged

communication, can the lawyer still be judicially compelled to disclose the
information?

A: YES, he can still be compelled since it is one of the exceptions to the exception.

Rule 21.02 - A lawyer shall not, to the disadvantage of his client, use information
acquired in the course of employment, nor shall he use the same to his own advantage
or that of a third person, unless the client with full knowledge of the circumstances
consents thereto.

Lawyers cannot be allowed to exploit their profession to exact vengeance or as a tool

for instigating hostility against any person especially against a client or former client.
(Bun Siong Yao v. Aurelio, A.C. No. 7023, March 30, 2006)

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Rule 21.03 - A lawyer shall not, without the written consent of his client, give information
from his files to an outside agency seeking such information for auditing, statistical,
bookkeeping, accounting, data processing, or any similar purpose.

Disclosure Of Information Kept By The Lawyer

The Court could not and cannot order the opening of the art metal filing cabinet in
question because, it having been proven that it belongs to the appellant attorney and
that in it he keeps the records and documents of his clients, to do so would be in
violation of his rights as such attorney, since it would be tantamount to compelling him
to disclose or divulge facts or things belonging to his clients, which should be kept
secret, unless he is authorized by them to make such disclosure, it being a duty
imposed by law upon an attorney to strictly preserve the secrets or communications
made to him. (People vs. Sy Juco, G.R. No. 41957 [1937])

Rule 21.04 - A lawyer may disclose the affairs of a client of the firm to partners or
associates thereof unless prohibited by the client.

Rule 21.05 - A lawyer shall adopt such measures as may be required to prevent those
whose services are utilized by him, from disclosing or using confidences or secrets of
the clients.

Q: May the lawyer share the information obtained from his client to his partners
or associates in the law office?

General Rule: It is allowed. This is to obtain the opinions and ideas on legal strategies
to use in the case.

Exception: Unless the client prohibits the disclosure.

Professional employment of a law firm is equivalent to retainer of members thereof. In a

law firm, partners or associates usually consult one another involving their cases and
some work as a team. Consequently, it cannot be avoided that some information about
the case received from the client may be disclosed to the partners or associates.
(Agpalo, 2009)

Rule 21.06 - A lawyer shall avoid indiscreet conversation about a client's affairs even
with members of his family.

Rule 21.07 - A lawyer shall not reveal that he has been consulted about a particular
case except to avoid possible conflict of interest.

To maintain the attorney-client relationship, the correspondence must be kept private.

It's important to think about confidentiality. Hence, the attorney-client privilege does not

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apply to communications made by the client to the attorney in the presence of third
parties who are not the client's or the attorney's agents.

When a client communicates with an attorney for the purpose of obtaining legal
services, advice, or opinion regarding the client's legal rights, obligations, or duties in
relation to the subject matter of the communication, the communication is considered to
be made in the attorney's official capacity. The communication needs to be relevant to
the case the lawyer is working on.

Section 24. Disqualification by reason of privileged communication. — The

following persons cannot testify as to matters learned in confidence in the
following cases:

(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 any fact the knowledge of which has been acquired
in such capacity.

The Code requires a lawyer to preserve the confidence and secrets of their client even
after the attorney-client relationship is terminated. It further provides that a lawyer shall
not reveal a client's confidences or secrets except:

● If the services or advice of the lawyer were sought or obtained to enable or aid
anyone to commit or plan to commit what the client knew or reasonably should have
known to be a crime or fraud
● As to a communication relevant to an issue between parties who claim through the
same deceased client, regardless of whether the claims are by testate or intestate or
by inter vivos transaction.
● As to a communication relevant to an issue of breach of duty by the lawyer to their
client or by the client to their lawyer
● As to a communication relevant to an issue concerning an attested document to
which the lawyer is an attesting witness
● As to a communication relevant to a matter of common interest between two or more
clients if the communication was made by any of them to a lawyer retained or
consulted in common, when offered in an action between any of the clients, unless
they have expressly agreed otherwise

The privilege likewise extends to a law student who was certified for a limited law
student practice either by the Executive Judge, or the Court Administrator

4. ATTORNEY’S COMPENSATION SERVICES FEES FOR LEGAL SERVICES

CANON 20 - A LAWYER SHALL CHARGE ONLY FAIR AND REASONABLE FEES.

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GR: Only lawyers are entitled to attorney’s fees. The same cannot be shared with a
non-lawyer. It is unethical.

XPNs: A lawyer may divide a fee for legal services with another under the following
instances: (CPR)

1. A lawyer undertakes to Complete the unfinished legal business of a deceased

lawyer;
2. There is a Pre-existing agreement with a partner or associate that, upon the latter’s
death, money shall be paid over a reasonable period of time to his estate or to
persons specified in the agreement;
3. A lawyer or law firm includes non-lawyer employees in Retirement plan, even if the
plan is based, in whole or in part, on a profit- sharing agreement. (Rule 9.02, CPR)

NOTE: Entitlement to lawyer’s fees is presumed. (Funa, 2009)

Unless otherwise expressly stipulated, rendition of professional services by a lawyer is

for a fee or compensation and is not gratuitous. (Research and Services Realty, Inc. v.
CA, G.R. No. 124074, January 27, 1997)

Requisites for the accrual of attorney’s fees

1. Existence of attorney-client relationship; and

2. Rendition by the lawyer of services to the client.

NOTE: A pauper, while exempted from payment of legal fees is not exempted from
payment of attorney’s fees. (Cristobal v. Employees’ Compensation Commission, G.R.
No. L-49280, February 26, 1981)

Rule 20.01 - A lawyer shall be guided by the following factors in determining his fees:

a) the time spent and the extent of the service rendered or required;
b) the novelty and difficulty of the questions involved;
c) The importance of the subject matter;
d) The skill demanded;
e) The probability of losing other employment as a result of acceptance of the
proffered case;
f) The customary charges for similar services and the schedule of fees of the IBP
chapter to which he belongs;
g) The amount involved in the controversy and the benefits resulting to the client
from the service;
h) The contingency or certainty of compensation;
i) The character of the employment, whether occasional or established; and
j) The professional standing of the lawyer.

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Rule 20.02 - A lawyer shall, in case of referral, with the consent of the client, be entitled
to a division of fees in proportion to the work performed and responsibility assumed.

Kinds of payment

1. Fixed or absolute fee – a fee which is payable regardless of the result of the case.
a. A fixed fee payable per appearance
b. A fixed fee computed upon the number of hours spent
c. A fixed fee based on piece work
d. Combination of any of the above
2. Contingent fee – a fee that is conditioned on the securing of a favorable judgment
and recovery of money or property and the amount of which may be on a
percentage basis.

Attorney’s Fees: Ordinary v Extraordinary

Ordinary Concept Extraordinary Concept

An attorney’s fee is the reasonable An attorney’s fees are deemed indemnity
compensation paid to a lawyer by his for damages ordered by the court to be
client for the legal services the former paid by the losing party to the winning
renders. Compensation is paid for the party in a litigation. (Alva vs. High
cost and/or results of legal services, as Capacity Security Force [2017])
agreed upon by the parties or as may be
assessed by the courts. (Alva vs. High Whatever attorney’s fees were awarded
Capacity Security Force [2017]) by the court to the prevailing party, that
amount paid to the party-litigant/client is
The basis is the fact of employment by a not intended to the counsel or the
client. prevailing party. The award of attorney’s
fees can be seen in the dispositive portion
of the decision.

However, the parties can agree that

whatever attorney’s fees will be rewarded
by the court, it will be paid to the counsel.

Rationale Of Adequate Compensation

Adequate Compensation is necessary in order to enable the lawyer to serve his client
effectively and to preserve the integrity and independence of the profession. (Pineda,
2009, as cited in Rule 2-107, California Rules of Professional Conduct)

Q: In case the counsel on record obtains the services of collaborating counsel,

how will they divide the attorney’s fees or legal fees?

A: In proportion of the work performed by them and the responsibility assumed by each
of the counsel.

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Q: Is there a need for the client to know how the counsel divided the attorney’s
fees?

A: No need. The consent of a client is only required when the first counsel will secure
the services of collaborating counsel, this is to avoid confusion or misunderstanding
among the counsels.

Rule 20.03 - A lawyer shall not, without the full knowledge and consent of the client,
accept any fee, reward, costs, commission, interest, rebate or forwarding allowance or
other compensation whatsoever related to his professional employment from anyone
other than the client.

General Rule: A lawyer shall not, without the full knowledge and consent of the client,
accept any fee, reward, costs, commission, interest, rebate or forwarding allowance or
other compensation whatsoever related to his professional employment from anyone
other than the client.

Exception: Upon the knowledge and consent of the client.

Rationale why it is not proper for a lawyer to receive compensation from another
person other than his client: To secure the fidelity of the lawyer to his clients’ cause,
and there should be no room for suspicion on the part of the client that his lawyer is
receiving compensation from third person in connection with his case, specially from
someone who has hostile interest with the case against the client.

Q: Is it proper to charge interest to the unpaid attorney’s fees?

A: NO, it is not proper. Legal interest cannot be imposed on attorney’s fees because
legal services stand upon an entirely different footing from contracts for the payment of
compensation for any other services.

Q: Is it proper for the court to charge or award attorney’s fees in the dispositive
portion of the decision without any discussion in the body of the decision?

A: NO, it is not proper. There must be a discussion in the body of the decision, and not
only in the dispositive portion. Attorney’s fees should be stated in the main text of the
decision accompanied by its basis. There should be a discussion. It must be proven and
justified why the court awarded attorney’s fees in the body of the decision.

Reason: If the decision will be taken up to the appellate court, definitely the appellate
court will remove the award of attorney’s fees.

Q: Does attorney’s fees fall under the catch-all provisions where other reliefs are
prayed for?

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A: NO. Attorney’s fees must be specifically prayed for in order to be granted. Otherwise,
the court will not grant the attorney’s fees.

Quantum meruit

Quantum meruit allows recovery of the reasonable value regardless of any agreement
as to value. It entitles the party to "as much as he, reasonably deserves.”

Instances when the measure of quantum meruit may be resorted to

1. There is no express contract for payment of attorney’s fees agreed upon between
the lawyer and the client;
2. Although there is a formal contract for attorney’s fees, the stipulated fees are found
unconscionable or unreasonable by the court;
3. The contract for attorney’s fees is void due to purely formal matters or defects of
execution;
4. The counsel, for justifiable cause, was not able to finish the case to its conclusion;
5. Lawyer and client disregard the contract for attorney’s fees; and
6. The client dismissed his counsel before the termination of the case.

Rule 20.04 - A lawyer shall avoid controversies with clients concerning his
compensation and shall resort to judicial action only to prevent imposition, injustice or
fraud.

A lawyer should avoid the filing of any case against clients for the enforcement of his
attorney’s fees against clients for the enforcement of his attorney’s fees except to
prevent:

a) Imposition
b) Injustice
c) Fraud

RATIONALE: The legal profession is not a money-making profession. (Pineda, 2009)

Judicial Action to Recover Attorney’s Fees

1. In the same case: He may enforce his attorney’s fees by filing an appropriate
motion or petition as an incident in the main action where he rendered legal
services. (Pineda, 2009, as cited in Lichauco vs. CA, 63 SCRA 123) This is to avoid
multiplicity of suits. The motion or petition must be filed before the judgment had
been satisfied or before the proceeds were delivered to the client. (Palanca vs.
Pecson)
2. In a separate civil action: The lawyer may also enforce his attorney’s fees by filing
an independent separate action for collection of attorney’s fees. (NWSA vs. NWSA
Consolidated Union. 164 SCRA 450)

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