CANON 15 1.

C engages the services of Attorney D concerning various mortgage contracts entered into by her husband from whom she is separated, fearful that her real estate properties will be foreclosed and of impending suits for sums of money against her. Attorney D advised C to give him her land titles covering her lots so he could sell them to enable her to pay her creditors. He then persuaded her to execute deeds of sale in his favour without any monetary or valuable consideration, to which C agreed on condition that he would sell the lots and from the proceeds pay her creditors. Later on, C came to know that Attorney D did not sell her lots but instead paid her creditors with his own funds and had her land titles registered in his name. Did Attorney D violate the Code of Professional Responsibility? Explain. (2007 Bar) Answer: Under the same set of facts in the case of Hernandez vs. Go, the Supreme Court held the lawyer to have violated the Code of Professional Responsibility specifically Canons 15, 16 and 17. CANON 15 - A LAWYER SHALL OBSERVE CANDOR, FAIRNESS AND LOYALTY IN ALL HIS DEALINGS AND TRANSACTIONS WITH HIS CLIENTS. CANON 16 - A LAWYER SHALL HOLD IN TRUST ALL MONEYS AND PROPERTIES OF HIS CLIENT THAT MAY COME INTO HIS PROFESSION. CANON 17 - A LAWYER OWES FIDELITY TO THE CAUSE OF HIS CLIENT AND HE SHALL BE MINDFUL OF THE TRUST AND CONFIDENCE REPOSED IN HIM. Furthermore, it was held that the lawyer concerned has engaged in deceitful, dishonest, unlawful and grossly immoral acts, which might lessen the trust and confidence reposed by the public in the fidelity, honesty, and integrity of the legal profession. Consequently, the Court disbarred him.

2. (a) In anticipation of a close friends approval, even gratefulness, a lawyer enters his appearance in a case as counsel for such friend, without the latters previous consent. Is the act of the lawyer ethical? Reasons for your answer. (b) What do you understand by an integrated bar? Would an integrated bar in the Philippines improve the ethical standards of the law profession? Discuss briefly. (1966 Bar) Answer: (a) The act of the lawyer is unethical. Friendship and lawyer-client relationship is beyond different from each other. In the given situation, there was no lawyer-client relationship to speak of. It must be remembered that this kind of relationship is highly confidential and consensual; hence, to anticipate and to enter his appearance as lawyer for his close friend without even the latters consent is unethical. 1

(b) (based on your understanding po pero here are some points to base your answer po) An Integrated Bar is a State-organized Bar, to which every lawyer must belong, as distinguished from bar association organized by individual lawyers themselves, membership in which is voluntary. Integration of the Bar is essentially a process by which every member of the Bar is afforded an opportunity to do his shares in carrying out the objectives of the Bar as well as obliged to bear his portion of its responsibilities. Organized by or under the direction of the State, an Integrated Bar is an official national body of which all lawyers are required to be members.

3. X, a practicing lawyer, appeared in court in behalf of a party litigant. His appearance was without authority from the party for whom he entered his appearance. Did he commit any crime? Give your reasons. (1968 Bar) Answer: (I dont think so. However, it is unethical just like the situation in Question No. 2) I AM UNSURE ABOUT THIS. SORRY!!!

4. To what extent can a lawyer bind his client? Explain. (1979 Bar) Answer: The client s bound by his lawyers procedural handling of the case, even when his lawyer is negligent or makes mistakes, the exception is when the mistake of his lawyer proceeds from an incompetency so great as to have prevented the client from making a fair presentation of his case.

5. In 1998, Acaramba, a telecommunications company, signed a retainer agreement with Bianca & Sophia Law Office (B & S) for the latters legal services for a fee of P2,000 a month. From 1998 to 2001, the only service actually performed by B & S for Acaramba was the review of a lease agreement and representation of Acaramba as a complainant in a bouncing checks case. Acaramba stopped paying retainer fees in 2002 and terminated its retainer agreement with B & S in 2005. In 2007, Temavous, another telecommunications company, requested B & S to act as its counsel in the following transactions: (a) the acquisition of Acaramba; and (b) the acquisition of Super-6, a company engaged in the power business. In which transactions, if any, can Bianca & Sophia Law Office represent Temavous? Explain fully. (2008 Bar)

Answer: Bianca & Sophia Law Office can represent Temavous only in transaction (b); but, as to transaction (a) there will be conflict of interest. It may seem at first that there is no conflict of interest; however, it must be remembered that there is conflict of interest if the new retainer will require the attorney to perform an act which will injuriously affect his first client in any matter in which he represents him and also where he will be called upon in his new relation to use against his first client any knowledge acquired through their connection. Hence, there could be a possible conflict of interest between the two companies-clients of B&S.

6. Atty. Marie consulted Atty. Hernandez whether she can successfully prosecute her case for declaration of nullity of marriage she intends to file against her husband. Atty. Hernandez advised her in writing that the case will not prosper for the reasons stated therein. Atty. Marie, however, decided to file the case and engaged the services of another lawyer, Atty. Pe. Her husband, Noel, having learned about the opinion of Atty. Hernandez, hired him as his lawyer. Is Atty. Hernandez's acquiescence to be Noel's counsel ethical? (2006 Bar) Answer: No. Atty. Hernandezs acquiescence to be Noels counsel will not be ethical. It will constitute a conflict of interests. When Atty. Marie consulted Atty. Hernandez for advice on whether she can successfully prosecute her case for declaration of nullity of her marriage to Noel, and he advised her that it will not prosper, a lawyer-client relationship was created between them, although his advice was unfavourable to her. From that moment, Atty. Hernandez is barred from accepting employment from the adverse party concerning the same matter about which she had consulted him.

7. The existence of an attorney-client relationship precludes the lawyer from accepting professional employment from the clients adversary, either in the same case or in a different but related action, and the prohibition lies irrespective whether or not a lawyer acquired professional information from his client. Discuss the foundation of, and the philosophy behind, the aforesaid rule. (1985 Bar) Answer: This question involves the prohibition of a lawyer appearing for conflicting interest. A lawyer may not, without being guilty of professional misconduct, act as counsel for a person whose interest conflicts with that of his present or former client; nor may he accept employment from a party in the performance of which he may be forced to act in a double capacity or suspected of divided loyalty.

The stern rule against representation of conflicting interest is founded on principles of public policy and good taste. It springs from the attorneys duty to represent his client with undivided fidelity and to maintain inviolate the clients confidence as well as from the injunction forbidding the examination of an attorney as to any of the privileged communications of his client. The reason for the prohibition is found in the relation of attorney and client, which is one of trust and confidence of the highest degree. A lawyer becomes familiar with all the facts connected with his clients case. He learns from his client the weak points of the action as well as the strong ones. Such knowledge must be considered sacred and guarded with care. No opportunity must be given him to take advantage of the clients secrets. A lawyer must have the fullest confidence of his client. For if the confidence is abused, the profession will suffer by the loss thereof.

8. Lawyer A rendered professional services for B in a case until final judgment. Later on, B prosecuted other cases against different persons. In the new cases, B did not retain A who was not even consulted. The defendants and the subject matter of the new case are different from the case previously handled by A. The defendant in one of the new cases of B retained A who filed his appearance in said case. Did A violate legal ethics by appearing as an attorney for one of the defendants in the new cases of B. Reason out your answer. (1967 Bar) Answer: Yes. This is in violation of the rule on representing conflicting interests. Though this involves unrelated matter, the loyalty of a lawyer extends even after the termination of the lawyer-client relationship. It is not a good practice to permit him afterwards to defend in another case other person against his former client.

9. X, a practicing lawyer, was approached by Y for legal advice. He took down the facts of the case as narrated by Y, who however did not divulge the name of the other party in the case, promising to do so later. Upon her request, a written opinion was prepared by X on her possible cause of action, and this opinion was sent to her together with Xs bill for rendering the opinion. Y did not pay the bill without stating any reason. Shortly thereafter, X was asked by his uncle (his fathers brother) to appear for him in a court case and upon reading the complaint, X discovered that his uncle was the other party in the case on which Y had earlier consulted him. X entered his appearance in court for his uncle, and the counsel for Y promptly moved to disqualify him, on the ground that, on the very subject matter of the action, X had been engaged as counsel for Y. If you were the judge, would you disqualify X from appearing for his uncle? Discuss your answer briefly. (1969 Bar) 4

Answer: Yes, because first: there was a lawyer-client relationship between X and Y. Second, lawyer X holds confidential information gotten from the consultation made by Y; hence, there will be conflict of interests.

10. Atty. Japzon, a former partner of XXX law firm, is representing Kapuso Corporation in a civil case against Kapamilya Corporation whose legal counsel is XXX law firm. Atty. Japzon claims that she never handled the case of Kapamilya Corporation when she was still with XXX law firm. Is there a conflict of interest? Explain. (2005 Bar) Answer: There is conflict of interest when a lawyer represents inconsistent interests. This rule covers not only cases in which confidential communications have been confided, but also those in which no confidence has been bestowed or will be used. Also, there is conflict of interest if the new retainer will require the attorney to perform an act which will injuriously affect his first client in any matter in which he represents him and also where he will be called upon in his new relation to use against his first client any knowledge acquired through their connection. Since Atty. Japzon was a partner of the XXX law firm which has Kapamilya Corporation as its client, she cannot handle a case against it as such will involve conflict of interest. The employment of a law firm is equivalent to the retainer of the members thereof. It does not matter if Atty. Japzon never handles a case of the Kapamilya Corporation when she was still with the XXX law firm.

11. You are the counsel for the estate of a deceased person. Your wife is a practicing Certified Public Accountant. She was asked by her client to prepare and submit an itemized claim against the estate you are representing. She asks for your advice on the legal propriety of her clients claim. What advice would you give her? Explain. (2003 Bar) Answer: I would advise her that it will be improper for her to handle her clients claim against the estate. As a counsel for the estate, it is my duty to preserve the estate. Her clients claim seeks to reduce the said estate. If she will handle such claim, I can be suspected of representing conflicting interests. The interests of said estate and of its creditors are adverse to each other. Even if she is a different person, the fact that she is my wife will still give rise to the impression that we are acting as one.

12. Six months ago, Atty. Z was consulted by A about a four-door apartment in Manila left by her deceased parents. A complained that her two siblings, B and C, who were occupying two units of 5

the apartment, were collecting rentals from the other two units and and refusing to give to her any part thereof. Atty. Z advised A to first seek the intervention of her relatives and told her that, if this failed, he would take legal action as A asked him to do. Today, September 22, 2002, B asks Atty. Z to defend him in a suit brought by A against him (B) and C through another counsel. A. Should Atty. Z accept the case? Why? B. Should Atty. Z tell B that A consulted him earlier about the same case? Why? (2002 Bar) Answer: A. Atty. Z should not accept the case. When A consulted him about her complaint against B and C, a lawyer-client relationship was created between A and Atty. Z. Thus, the latter cannot subsequently represent B against A in a matter he was consulted about. This constitutes conflict of interest. It does not matter if Atty. Z is not handling the case for A. B. Rule 21.07 provides: A lawyer shall not reveal that he has been consulted about a particular case except to avoid possible conflict of interest. In this case, he has to reveal to B that he had been consulted by A on the case that B is offering to retain his services, in order to avoid a possible conflict of interest.

13. Atty. As former Client B is deceased. A new Client C purposes to engage the legal services of Atty. A against the heirs of deceased Client B. Has Atty. A absolute right to accept the engagement since Client B is no longer his client? Decide. (2001 Bar) Answer: The right of Atty. A to accept the engagement of Client C is qualified by his obligations to avoid conflict of interest arising from his relation to the deceased client B. Atty. A has received information and confidences from Client B which Atty. A is prohibited from utilizing against the heirs of the deceased client. The obligation to hold in confidence communications and information received from Client B is not terminated by the death of the client.

14. In a contentious transaction of sale and purchase involving real property between X (seller) and Y (purchaser), whose interests were diametrically opposed to each other, Atty. Z with the knowledge and consent of X and Y, acted as attorney for both parties. Did Atty. Z commit malpractice? Explain. (2000 Bar) Answer: Rule 15.03 provides: A lawyer shall not represent conflicting interests except by written consent of all concerned given after a full disclosure of the facts. In this case, although Atty. Z acted as lawyer

for both X and Y with the knowledge and consent of both, such consent was not made in writing. Atty. Z may be held liable for malpractice.

15. Atty. Juan Cruz, a practicing lawyer, was employed by Pilipinas Bank as its bank attorney and notary public in three of its branches in Manila. While thus employed, Maria del Rio, who was unaware of Atty. Cruzs employment in the bank, engaged Atty. Cruzs services as a lawyer in a case that was filed by Pilipinas Bank for collection of sum of money involving one of its branches in Quezon City which Atty. Cruz accepted. The Quezon City RTC, after due proceeding and hearing, rendered judgment in favour of Pilipinas Bank and against Maria del Rio who wanted to appeal the adverse judgment. But upon advice of Atty. Cruz, the adverse judgment was not appealed. Thereafter, Maria del Rio learned Atty. Cruz was employed by Pilipinas Bank as one of its attorneys. She now consults with you and asks you to take legal steps against Atty. Cruz for his apparent misconduct. What do you think of what Atty. Cruz did? Is there a valid and legal basis to discipline him? (1999 Bar) Answer: In agreeing to represent Maria del Rio in a case which Pilipinas Bank filed against her, Atty. Cruz violated the rule against representing conflicting interests. Rule 15.03 provides: A lawyer shall not represent conflicting interests except by written consent of all concerned given after a full disclosure of the facts. It is improper for a lawyer to appear as counsel for a person whose interest conflicts with that of his present or former client, even in an unrelated case. It does not matter that the Pilipinas Bank branch in Quezon City is not one of the branches he services in Manila. The bank itself is his client.

16. Explain your understanding of Conflict of Interest under the Code of Professional Responsibility. (1997 Bar) Answer: A lawyer is prohibited from representing conflicting interests. There is conflict of interests within the context of the rule when, on behalf of one client, it is the lawyers duty to contend for that which his duty to another client requires him to oppose. Another test is whether the acceptance of a new lawyerclient relation will prevent a lawyer from discharging fully his duty of undivided fidelity and loyalty to another client or invite suspicion of unfaithfulness or double-dealing in the performance thereof. It is improper for a lawyer to appear as counsel for a person whose interest conflicts with that of his present or former client, even in an unrelated case.

17. Mrs. F, a young matron, was referred to you for legal advice by your good friend in connection with the matrons jewelry business. She related to you the facts regarding a sale on consignment of pieces of jewelry to someone she did not name or identify. Since she was referred to you by a close friend, you did not bill her for the consultation. Neither did she offer to compensate you. Six months later, Mrs. G, the wife of general manager of a client company of your law firm, asked you to defend her in a criminal case for estafa filed by Mrs. F. Would you agree to handle her case? (1997 Bar) Answer: First, I will inquire if the case for estafa filed by Mrs. F against the wife of the general manager, is the same matter concerning which Mrs. F consulted me six months before. If it is the same matter, I will not be able to handle the case for the general managers wife, because of a conflict of interest. When Mrs. F consulted me and I gave her professional advice, a lawyer-client relationship was created between us, regardless of the fact that I was not compensated for it. It would involve a conflict of interest if I will handle the case for the opposite party. (Hilado vs. David)

18. You are the lawyer of Mr. H, the plaintiff, in a civil case for rescission of contract. The prospects for an amicable settlement look bright. Impressed by your ability, Mr. I, the defendant, would like very much to retain you as his defense counsel in a criminal case for homicide through reckless imprudence. Mr. I wants you to forthwith enter your appearance, the arraignment already having been scheduled. Would you accept the offer? (1997 Bar) Answer: It depends. If the criminal case for homicide through reckless imprudence is against Mr. H, I cannot accept the same for that will involve a conflict of interest, although it is unrelated case. But if it will not involve Mr. H, I can accept the same. However, to avoid suspicion and misunderstanding, it would be better if I inform Mr. H about the offer and secure his conformity to my handling the same.

19. What steps should first be done by the attorney before he can endorse or object to his clients intention to plead guilty? State your reason. (2001 Bar) Answer: It is the duty of defense counsel to: (a) study thoroughly the records and surrounding circumstances of the case and determine if there are valid defenses he can use; in addition, if the case is punishable by capital penalty, keep in mind that the court will still conduct a searching inquiry (b) confer with the accused and obtain from him his account of what had happened 8

(c) advise him of his constitutional and statutory rights, including advisability of entering into plea bargaining (d) thoroughly explain to him the impact of a guilty plea and the inevitable conviction that will follow (e) if the client still insists in pleading guilty, see to it that the prescribed procedure necessary to the administration of justice is strictly followed and disclosed in the court records.