Lawyer’s Duties of

Fair Dealings and

Avoiding Conflict of
Interests
 CANON 15
A lawyer shall observe
candor, fairness, and loyalty
in all his dealings and
transactions with his client.
 Code of Professional
Responsibility

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.
 A lawyer shall ascertain possible
conflict of interests.
It is a duty of a lawyer to disclose and explain
to a prospective client all circumstances of
his relations to the parties and any interest
in or connection with the controversy, which
in his honest judgment might influence the
client in the selection of counsel.
 Exception

Rule 15.03
A lawyer shall not represent conflicting
interests except by written consent of all
concerned given after full disclosure of facts.
 A thorough
Possible adverse Possible use or
explanation of
effects of dual revelation of
the nature and
representation confidential
extent of the
information
conflict

Disclosure
Tests of Inconsistency
of Interests
 Test of
Inconsistency

Conflict of Interests

When in behalf of one client, it is his duty to

contend for that which duty to another client
(previous or present) he is required to oppose,
or the possibility of such situation develops
 “
Perez v. dela Torre 485 SCRA 547

“What is unsettling is that respondent assisted in the execution

by the two accused of their confessions whereby they admitted
their participation in various serious criminal offenses knowing
fully well that he was retained previously by the heirs of one of
the victims. Respondent, who presumably knows the intricacies
of the law, should have exercised his better judgment before
conceding to accused’s choice of counsel. It did not cross his
mind to inhibit himself from acting as their counsel and instead,
he even assisted them in executing the extrajudicial confession.”
 Duty to Decline Employment

In any similar matters in view of the rule prohibiting

representation of conflicting interests
 Test of
Inconsistency

Conflict of Interests
Whether the acceptance of a new relation
will prevent an attorney from the full
discharge of his duty of undivided fidelity
and loyalty
 “
Mejia v. Reyes 4 SCRA 648

“Lawyers are prohibited from representing conflicting interests in a

case. The respondent’s act of appearing and acting as counsel for the
complainants Jose G. Mejia and Emilia N. Abrera in the civil case
against the Philippine National Bank, that had appointed him bank
attorney and notary public, constitutes malpractice. However, it does
not appear satisfactorily proven that during the pendency of their case
the complaints did not know of the respondents connection with the
bank as attorney and notary public. Evidence shows that the Philippine
National Bank knew that the respondent was appearing as counsel for
the complainants, yet it did not revoke or cancel his appointment as
bank attorney and notary public.”
 Test of
Inconsistency

Conflict of Interests
Whether he will be called upon in his new
relation to use against his first client any
knowledge acquired through their
connection or previous employment
 “
Gonzales v. Cabucana 479 SCRA 330

“Lawyers are expected 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 of paramount
importance in the administration of justice.
xxx
Respondent further argued that it was his brother who
represented Gonzales in the civil case and not him, thus, there
could be no conflict of interests. We do not agree. As respondent
admitted, it was their law firm which represented Gonzales in
the civil case. Such being the case, the rule against representing
conflicting interests applies.”
 Rule Applicable to Law Firm
Where a lawyer is disqualified or
forbidden from appearing as counsel in a
case because of conflict of interests, the
law firm of which he is a member as well
as any member, associate or assistant
therein is similarly disqualified from so
acting.
“The test to determine whether there is a conflict
of interest in the representation is probability,
not certainty of conflict.”

-Nakpil vs. Valdez A.M. No. 2040

 “
Defense that prospective client has no lawyer to
turn to is not acceptable.
“His claim that he could not turn down the spouses as no other
lawyer is willing to take their case cannot prosper where
lawyers cannot decline representation they cannot be made to
labor under a present client and a prospective one. Granting
also that there really was no other lawyer who could handle the
spouses’ case other than him, still he should have observed the
requirements xxx to ascertain as soon as practicable whether
the matter would involve a conflict with another client then
seek the written consent of all concerned after full disclosure
of facts. The respondent failed to do so thus exposing him to
the charge of double dealing.”
-Gonzales v. Cabucana Jr. 479 SCRA 331
 “
EFFECT OF TERMINATION OF
RELATION

“The termination of the relation of

attorney and client provides no
justification for a lawyer to represent an
interest adverse to or in conflict with that
of the former client.”

-Pormento v. Pontevedra 454 SCRA 167

 “
LAWYER’S PRIVATE INTERESTS
VS. CLIENT’S INTERESTS

A lawyer should not put himself in a

position where self-interest tempts him to
do less than best for his client.
 The prohibition does not apply:

◈ no conflict of interests exists

◈ The client knowingly consent to the dual
representation
◈ No true attorney-client relationship is
attendant
 Failure to Disclose Prior Engagement or
Interest and Representation Without a Written
Consent
◈ Disciplinary action
◈ A good ground for the client to discharge attorney
◈ Possible disqualification of attorney to represent new
client upon petition of former client
◈ Setting aside of judgment prejudicial to new client
◈ Attorney’s right to fees may be affected