C v. D; E v. D
C is the present client and D is not a present
client in the same case but is a present client
in another case
It speaks of the duty of confidentiality to 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.
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. (Nakpil v.
Valdez, A.C. No. 2040, Mar. 4, 1998)
Where the lawyer performs the function of
mediator, conciliator, or arbitrator in disputes
where the lawyer labors under a conflict of
interest, he remains subject to the
requirement of a prior written informed
consent from all parties concerned. The
requirement subsists even if the adverse
interest is very slight, and notwithstanding
the lawyer’s honest intention and motive.
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, Mar. 4,
2005)
known as 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.
The lawyer should inform the client when he
is acting as a lawyer and when he is not,
because certain ethical considerations
governing the client-lawyer relationship may
be operative in one case and not in the other.
(Report of the IBP Committee, p.84)
Lawyer is trustee of Client’s Money
and Properties
◦ The moneys collected by an attorney for
his client belong to the client.
Consequently, the lawyer is under
obligation to hold in trust all moneys and
properties of his client that may come into
his possession.
Considering that the lawyer is merely holding in
trust the moneys and properties he received for
his client, he is accountable therefore to his
client.
The highly fiduciary and confidential relation of
attorney and client requires that the lawyer
should promptly account for all the funds
received or held by him for the client’s benefits.
In order that he may promptly account for or
deliver the same to the client or representative,
he should keep and maintain adequate records of
the client’s moneys or properties in his custody
the principle that an attorney derives no
undue advantage that may operate to the
prejudice or cause an occasion for loss of a
client. The relationship between the lawyer
and client is one of mutual trust and
confidence of the highest degree.
When will the liability of a lawyer for “breach of
fiduciary obligation” arises?
A lawyer may be held liable if he fails in his
obligation to make an accounting of funds or
property that may come to his possession for a
lawyer holds his client’s funds or property in
trust for his client.