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2.

Rules 138, Rules of Court

a. Duties of Attorneys Section 20, Rule 138 of the Rules of Court enumerates the duties of attorneys, thus: (a) To maintain allegiance to the Re u!lic of the "hili ines and to su ort the Constitution and o!ey the la#s of the "hili ines$ (!) To o!ser%e and maintain the res ect due to the courts of &ustice and &udicial officers' (c) To counsel or maintain such actions or roceedings only as a ear to him to !e &ust, and such defenses only as he !elie%es to !e honestly de!ata!le under the la#$ (d) To em loy, for the ur ose of maintaining the causes confided to him, such means only as are consistent #ith truth and honor, and ne%er see( to mislead the &udge or any &udicial officer !y an artifice or false statement of fact or la#' (e) To maintain in%iolate the confidence, and at e%ery eril to himself, to reser%e the secrets of his client, and to acce t no com ensation in connection #ith his client)s !usiness e*ce t from him or #ith his (no#ledge and a ro%al' (f) To a!stain from all offensi%e ersonality and to ad%ance no fact re&udicial to the honor or re utation of a arty or #itness, unless re+uired !y the &ustice of the cause #ith #hich he is charged' (g) ,ot to encourage either the commencement or the continuance of an action or roceeding, or delay any man)s cause, from any corru t moti%e or interest' (h) ,e%er to re&ect, for any consideration ersonal to himself, the cause of the defenseless or o ressed' (i) -n the defense of a erson accused of crime, !y all fair and honora!le means, regardless of his ersonal o inion as to the guilt of the accused, to resent e%ery defense that the la# ermits, to the end that no erson may !e de ri%ed of life or li!erty, !ut !y due rocess of la#$ (Sec$ 20, Rule 138)$

. court may assign an attorney to render rofessional aid free of charge to any arty in a case, if u on in%estigation it a ears that the arty is destitute and una!le to em loy an attorney, and that the ser%ices of counsel are necessary to secure the ends of &ustice and to rotect the rights of the arty$ -t shall !e the duty of the attorney so assigned to render the re+uired ser%ice, unless he is e*cused therefrom !y the court for sufficient cause sho#n$ (Sec$ 31, Rule 138)$ b. Malpractice; Solicitation of Cases . mem!er of the !ar may !e remo%ed or sus ended from his office as attorney !y the Su reme Court for any deceit, malpractice, or other gross misconduct in such office, grossly immoral conduct, or !y reason of his con%iction of a crime in%ol%ing moral tur itude, or for any %iolation of the oath #hich he is re+uired to ta(e !efore the admission to ractice, or for a #illful diso!edience of any la#ful order of a su erior court, or for corru tly or #illful a earing as an attorney for a arty to a case #ithout authority so to do$ The ractice of soliciting cases at la# for the ur ose of gain, either ersonally or through aid agents or !ro(ers, constitutes malpractice$ (Sec$ 2/, Rule 138)$ The Court of . eals or a Court of 0irst -nstance may sus end an attorney from ractice for any of the causes named in the last receding section, and after such sus ension such attorney shall not ractice his rofession until further action of the Su reme Court in the remises$ (Sec$ 28, Rule 138)$ 1 on such sus ension, the Court of . eals or the Court of 0irst -nstance shall forth#ith transmit to the Su reme Court a certified co y of the order of sus ension and a full statement of the facts u on #hich the same #as !ased$ 1 on the recei t of such certified co y and statement, the Su reme Court shall ma(e a full in%estigation of the facts in%ol%ed and ma(e such order re%o(ing or e*tending the sus ension, or remo%ing the attorney

from his office as such, as the facts #arrant$ (Sec$ 22, Rule 138)$ ,o attorney shall !e remo%ed or sus ended from the ractice of his rofession, until he has had full o ortunity u on reasona!le notice to ans#er the charges against him, to roduce #itnesses in his o#n !ehalf, and to !e heard !y himself or counsel$ 3ut if u on reasona!le notice he fails to a ear and ans#er the accusation, the court may roceed to determine the matter ex parte$ (Sec$ 30, Rule 138' see also: Rule 132 and 1324., Rules of Court)$ c. Rights of Attorneys to air Co!pensation .n attorney shall !e entitled to ha%e and reco%er from his client no more than a reasona!le com ensation for his ser%ices, #ith a %ie# to the im ortance of the su!&ect matter of the contro%ersy, the e*tent of the ser%ices rendered, and the rofessional standing of the attorney$ ,o court shall !e !ound !y the o inion of attorneys as e* ert #itnesses as to the ro er com ensation, !ut may disregard such testimony and !ase its conclusion on its o#n rofessional (no#ledge$ . #ritten contract for ser%ices shall control the amount to !e aid therefor unless found !y the court to !e unconsciona!le or unreasona!le$ (Sec$ 25, Rule 138)$ 6o#e%er, #hen an attorney un&ustly retains in his hands money of his client after it has !een demanded, he may !e unished for contem t as an officer of the Court #ho has mis!eha%ed in his official transactions' !ut roceedings under this section shall not !e a !ar to a criminal rosecution$ (Sec$ 27, Rule 138)$ .n attorney may retire at any time from any action or s ecial roceeding, !y the #ritten consent of his client filed in court$ 6e may also retire at any time from an action or s ecial roceeding, #ithout the consent of his client, should the court, on notice to the client and attorney, and on hearing, determine that he ought to !e allo#ed to retire$ -n case of su!stitution, the name of the attorney ne#ly em loyed shall !e entered on the doc(et of the

court in lace of the former one, and #ritten notice of the change shall !e gi%en to the ad%ance arty$ (Sec$ 28, Rule 138)$ . client may at any time dismiss his attorney or su!stitute another in his lace, !ut if the contract !et#een client and attorney has !een reduced to #riting and the dismissal of the attorney #as #ithout &ustifia!le cause, he shall !e entitled to reco%er from the client the full com ensation sti ulated in the contract$ 6o#e%er, the attorney may, in the discretion of the court, inter%ene in the case to rotect his rights$ 0or the ayment of his com ensation the attorney shall ha%e a lien u on all &udgments for the ayment of money, and e*ecutions issued in ursuance of such &udgment, rendered in the case #herein his ser%ices had !een retained !y the client$ (Id.)$ Su!&ect to a%aila!ility of funds as may !e ro%ided !y the la# the court may, in its discretion, order an attorney em loyed as counsel de oficio to !e com ensates in such sum as the court may fi* in accordance #ith section 25 of this rule$ 9hene%er such com ensation is allo#ed, it shall !e not less than thirty esos ("30) in any case, nor more than the follo#ing amounts: (1) 0ifty esos ("70) in light felonies' (2) :ne hundred esos ("100) in less gra%e felonies' (3) T#o hundred esos ("200) in gra%e felonies other than ca ital offenses' (5) 0i%e 6undred esos ("700) in ca ital offenses$ (Sec$ 32, Rule 138$ ,ote the outdated amounts fi*ed !y the Rules)$ .n attorney shall ha%e a lien u on the funds, documents and a ers of his client #hich ha%e la#fully come into his ossession and may retain the same until his la#ful fees and dis!ursements ha%e !een aid, and may a ly such funds to the satisfaction thereof$ 6e shall also ha%e a lien to the same e*tent u on all &udgments for the ayment of money, and e*ecutions issued in ursuance of such &udgments, #hich he has secured in a litigation of his client, from and after the time #hen he shall ha%e the caused a statement of his claim of such lien to !e entered u on the records of the court rendering such &udgment, or issuing such e*ecution,

and shall ha%e the caused #ritten notice thereof to !e deli%ered to his client and to the ad%erse arty' and he shall ha%e the same right and o#er o%er such &udgments and e*ecutions as his client #ould ha%e to enforce his lien and secure the ayment of his &ust fees and dis!ursements$ (Sec$ 3/, Rule 138)$

a. "a# is $ot a %ra&e The ractice of la# is not a %ested right !ut a ri%ilege$ -t is clothed #ith u!lic interest$ . la#yer o#es duties not only to his client !ut also to his in the rofession, to the courts, and to the nation$ 6e ta(es art in one of the most im ortant functions of the state, #hich is the administration of &ustice, as an officer of the court$ 6ence, it is the right and duty of the state to su er%ise, control and regulate the selection of candidates for admission to the 3ar, as #ell as the e*ercise of that ri%ilege to assure com liance #ith the la#yer;s u!lic res onsi!ilities$ (Diaz v. Martinez, 119 Phil. 49 , ! "#$% 4!& '19()*+$ The right to ractice is not a natural or constitutional right nor an a!solute right de ,ure !ut is a ri%ilege$ The right to ractice is not a ro erty$ -t cannot !e assigned or inherited !ut must !e earned !y hard study and good conduct$ (<rnami Cru= "ano, supra, citing -n re, >i!!s, 2/8 $ 3/1' -n re ?anuero, 88 SCR. 257 @12/7A' -n re ethics, 203 $ 27/' -n re ?iller, 255 $ 3/8' -n re Cliffton, 177 So$ 325)$ Ba#yers lay an im ortant role in society$ Ce ending on the circumstances, the la#yer may lead in ma(ing olicy as #ell as in resol%ing conflict$ 6e is often a scholar or a hiloso her see(ing to refine the analysis !y #hich la#yers li%e, or to ro ose ne# solutions for ro!lems ne# or old$ (Id$, at $ 53)$ 0or the achie%ement of its o!&ecti%e of dedicated ser%ice to society, the ancient and learned rofession of la# e*acts from its mem!ers the highest standard of morality$ Trusted #ith the confidential affairs of their clients, attorneys are s#orn to su!ordinate their ersonal interests to those

of the eo le they re resent$ They should stri%e at all times to u hold the honor and maintain the dignity of the legal rofession, #hich is higher than that of the mar(et lace$ (Id$, at $ 55, citing #anon -9, #anons of Professional .thics/ #alo v. Degamo, - "#$% 44! (19(!+$ .fter assing the !ar e*aminations and ta(ing the la#yer;s oath, the la#yer is considered authori=ed to ractice la# !efore all courts in the "hili ines$ 6o#e%er, the first duty that he has to erform is not to his client, as o ularly !elie%ed, !ut to assist in the administration of &ustice$ (Id$, $ 584 52, citing Rule 138, Sec$ 20 @!A)$ .s the ractice of la# is not a right granted to anyone #ho see( it, it is accorded only to those #ho meet s ecific standards of mental and moral fitness$ (In re Del $osario, &- Phil. )99/ In re 0utierrez, &1.0. -4+$ 0or this reason, failure on the art of the la#yer to maintain a high standard of morality may result in dis!arment$ (Id$, $ 72473, citing 2elivar v. "umi3ol, 1( "#$% (-). 4oledo v. 4oledo, %.#. no. -((, %pril -!, 19())$ The roscri tion against la#yer ad%ertising and solicitation of cases la#yers aim to reser%e the dignity of the legal rofession$ . la#yer cannot ad%ertise his talent as a sho (ee er ad%ertises his #ares$ ( In re5 4agorda, &4 Phil. )! '19-9*/ Director of $eligious %ffairs v. 2a6ot, !4 Phil. &!9 (1944+/ $ule 1)7, "ec. -!, $$#/ 8a6me v. 2ualan, &7 Phil. 4--+. . la#yer is a mem!er of an honora!le rofession #hose rimary ur ose is to render u!lic ser%ice and hel secure &ustice and in #hich remuneration is a mere incident (#anon 1-, #ode of Professional .thics+$ Such rofessional consideration ma(es a la#yer radically different from a sho (ee er, a trader, a manufacturer or a money changer #hose rimordial aim is ri%ate gain and #hose rinci al tool to sell his roduct or ser%ice is ad%ertising $ To allo# a la#yer to ad%ertise his talent or s(ill is to commerciali=e the ractice of la#, lo#er the rofession in u!lic confidence, and lesser its a!ility to render efficiently that higher character of ser%ice to #hich e%ery mem!er of the !ar is called$ (Id.)$

.d%ertising inesca a!ly in%ol%es self4 raise$ -f com etiti%e ad%ertising among la#yers #ere ermitted, the conscientious and ethical #ill una%oida!ly !e at the mercy of the !raggart$ (In $e $othman, 9! % -d (-!, )9 %9$ -d 1 )- '19&)*+$ -t #ill undou!tedly increase la#suits and needless litigations$ (In re 4agorda, supra/ Director of $eligious %ffairs v. 2a6ot, supra+. b. 1'1( Co&e of )rofessional *thics Section 21 of the old Code of Ci%il "rocedure, as amended in 1212 !y .ct 2828, ro%ided that .the ractice of soliciting cases at la# for the ur ose of gain, either ersonally or through aid agents or !ro(ers, constitutes mal racticeD$ Section 2/ of Rule 138 of the 1285 Re%ised Rules of Court maintained the ro%ision$ Sections 2/ and Section 28 of the 1208 .merican 3ar .ssociation)s Code of "rofessional <thics and the 121/ "hili ine 3ar .ssociation;s Code of "rofessional <thics #ere identical in their ro%isions, to #it: "ec. -!$ A&+ertising, Direct or ,n&irect $ 4 The most #orthy and effecti%e ad%ertisement ossi!le, e%en for a young la#yer, and es ecially #ith his !rother la#yers, is the esta!lishment of a #ell4 merited re utation for rofessional ca acity and fidelity to trust$ This cannot !e forced, !ut must !e the outcome of character and conduct$ The u!lication or circulation of ordinary sim le !usiness cards, !eing a matter of ersonal taste or local custom, and sometimes of con%enience, is not er se im ro er$ 3ut solicitation of !usiness !y circular or ad%ertisements, or !y ersonal communications or inter%ie#s not #arranted !y ersonal relations, is un rofessional$ -t is e+ually un rofessional to rocure !usiness !y indirection through touters of any (ind, #hether allied real estate firms or trust com anies ad%ertising to secure the

dra#ing of deeds or #ills or offering retainers in e*change for e*ecutorshi s or trusteeshi s to !e influenced !y the la#yer$ -ndirect ad%ertisement for !usiness !y furnishing or ins iring ne#s a er comments concerning the manner of their conduct, the magnitude of the interest in%ol%ed, the im ortance of the la#yer;s osition, and all other li(e self4laudation, defy the traditions and lo#er the tone of our high calling, and are intolera!le$D "ection -7$ Stirring -p "itigation, Directly or %hrough Agents $ 4 -t is un rofessional for a la#yer to %olunteer ad%ice to !ring a la#suit, e*ce t in rare cases #here ties of !lood, relationshi or trust ma(e it his duty to do so$ Stirring u strife and litigation is not only un rofessional, !ut it is indicta!le at common la#$ -t is disre uta!le to hunt u defects in titles or other causes of action and inform thereof in order to !e em loyed to !ring suit, or to !reed litigation !y see(ing out those #ith claims for ersonal in&uries or those ha%ing any other grounds of action in order to secure them as clients, or to em loy agents or runners for li(e ur oses, or to ay or re#ard directly or indirectly, those #ho !ring or influence the !ringing of such cases to his office, or to remunerate olicemen, court or rison officials, hysicians, hos ital attaches or others #ho may succeed, under the guise of gi%ing disinterested friendly ad%ice, in influencing the criminal, the sic( and the in&ured, the ignorant or others, to see( his rofessional ser%ices$ . duty to the u!lic and to the rofession de%ol%es u on e%ery mem!er of the !ar ha%ing (no#ledge of such ractices u on the art of any ractitioner immediately to inform thereof to the end that the offender may !e dis!arredD$

1nder Sec$ 2/ of the 121/ Code of "rofessional <thics the only methods of la#yer ad%ertising allo#ed #ere the !usiness cards and re uta!le la# lists or la#yers; directories$ The use of an ordinary sim le rofessional card #as ermitted$ (%2% 1pinion :o. 11, Ma6 11, 19-!)$ . la#yer engaged in a articular !rand of la# a%aila!le to act as an associate of other la#yers in that s ecific !ranch of legal ser%ice may send to local legal &ournals a !rief dignified announcement of his a%aila!ility to inform other la#yers in connection there#ith$ (#anon 4(, #P./ %2% 1pinion :o. 194, %pril --,19)9)$ -f #arranted !y ersonal relations, a la#yer may solicit em loyment (#anon -!, #P.)$ The hrase . ersonal relationsD included ersonal friends and relati%es (%2% 1pinion :o. !, %pril -7, 19-&+$ . la#yer may #rite legal articles for u!lication in #hich he gi%es information u on the la# !ut he should not acce t em loyment from such u!lication$ (#anon 4 , #P.$ See also: Ru!en .g alo, Legal Ethics$ Eue=on City, "hili ines: 1ni%ersity of the "hili ines Ba# Center, 1283 edition, $ 1104120)$ -n the 1S, the acti%ity of an association for the ur ose of romoting grou legal re resentation, as a mode of collecti%e e* ression of the !eliefs of a social sector and for meaningful access to courts !y the mem!ers of such sector, #as deemed to !e rotected !y the 1S Constitution (freedom of e* ression and freedom of association) and could ethically !e underta(en$ (:%##P v. 2utton, )!1 ;.". 41& (19()+/ ;nited 4ransp. ;nion v. "tate 2ar of Michigan, 4 1 ;.".&!( (19!1+/ ;nited Mines <or=ers v. Illinois 2ar %ssociation, )79 ;.". -1! (19(!+/ 2rotherhood of $.$. 4rainmen v. >irginia "tate 2ar, )!! ;.". 1 (19(1++. Similarly, the offer of legal ser%ices to the indigent, e%en #hen !roadcast o%er the radio or tendered through circulation of rinted matter to the general u!lic, offended no ethical rule$ (%2% 1pinion :o. 147, :ov. 19)&)$

c. 1'88 Co&e of )rofessional Responsibility

Canon 2, Rule 2$03 of the 1288 Code of "rofessional Res onsi!ility s ecifically ro%ides that .a la#yer shall not do or ermit to !e done any act designed primaril6 to solicit legal 3usinessD$ Canon 3 of the Code further contains s ecific rules on the su!&ect of la#yer ad%ertising, to #it:

CA$.$ 3 C . B.9F<R -, ?.G-,> G,:9, 6-S B<>.B S<RH-C<S S6.BB 1S< :,BF TR1<, 6:,<ST, 0.-R, C->,-0-<C .,C :3I<CT-H< -,0:R?.T-:, :R ST.T<?<,T :0 0.CTS$ Rule 3$01 4 . la#yer shall not use or ermit the use of any false, fraudulent, misleading, dece ti%e, undignified, self4 laudatory or unfair statement or claim regarding his +ualifications or legal ser%ices$ Rule 3$02 C -n the choice of a firm name, no false, misleading or assumed name shall !e used$ The continued use of the name of a deceased artner is ermissi!le ro%ided that the firm indicates in all its communications that said artner is deceased$ Rule 3$03 C 9here a artner acce ts u!lic office, he shall #ithdra#al from the firm and his name shall !e dro ed from the firm name unless the la# allo#s him to ractice la# currently$

Rule 3$05 C . la#yer shall not ay or gi%e anything of %alue to re resentati%es of the mass media in antici ation of, or in return for, u!licity to attract legal !usiness$ (See in general: <rnesto "ineda, "egal an& /u&icial *thics. Eue=on City: Central "rofessional 3oo(s, -nc, 1227 ed$' Ricardo Teruel, )ractical "a#yering in the )hilippines$ Eue=on City: Central Ba#!oo( "u!lishing Co$ -nc$, 122/ ed$)$ The 1288 Code of "rofessional Res onsi!ility im oses an a!solute and total !an on la#yer ad%ertising$ -t #as !asically atterned after the circa4 12/0s .3. Code of "rofessional Res onsi!ility !efore the ad%ent of the 2ates decision of the 1S Su reme Court, supra, #hich had held that an a!solute !an against la#yer ad%ertising #as a %iolation of the la#yers; constitutional freedom of commercial s eech (0irst .mendment rights)$ 0ollo#ing the 1S e* erience in the 12/0s, and e%en in the "hili ines at resent, there ha%e !een !ar o!&ections to the rules rohi!iting ad%ertising or solicitation$ (See, in general: <rnani Cru= "ano, 4he 8udiciar6 and the 2ar, supra)$ The usual and fre+uent o!&ection is that ad%ertising or

solicitation interferes only #ith small or solo ractitioners, recluding then from ma(ing themsel%es (no#n to ros ecti%e clients, #hile !ig ractitioners or large la# firms not only are constantly in the u!lic eye !ut !y !ecause of their social and olitical connections are a!le to meet and !ecome intimate #ith leaders in !usiness as otential clients$ -t is also argued that legal counsel should !e made a%aila!le to the oor and the least educated and rela*ing the restriction on ad%ertising #ould stimulate an interest in demand for legal assistance from these grou s in fa%or of small la# firms and solo ractitioners (see, for e*am le: 71 ?ale 9. 8. 1-44, et. "e@. , Ma6 19!-+. There are al#ays honest differences of o inion as to #hat is ideal or im ro er ad%ertising or solicitation of !usiness$ The line is a +uestion of good faith and good taste$ (People ex. $el. #hicago 2ar %ssAn v. 2a=er, 14- :. &)4, )1 %9$ !)! '19-4*+. "rof$ "ineda has argued that it is not un rofessional for a la#yer to ma(e (no#n his legal ser%ices$ 6o#e%er, he must do so only !y using true, honest fair, dignified and o!&ecti%e information or state of facts$ 6e must not resort to false and misleading information, and e%en if (no#n it must not !e undignified$ (<rnesto "ineda, "egal an& /u&icial *thics. Eue=on City: Central "rofessional 3oo(s, -nc, 1227 ed$, $ 78485, citing Canon 3, 1288 C"R)$ -t is im ortant to mention the other rele%ant ro%isions of the 1288 Code of "rofessional Res onsi!ility in res ect of a la#yer;s relationshi #ith his clients and #ith the society in general, to #it:

CA$.$ 2 4 . B.9F<R S6.BB ?.G< 6-S B<>.B S<RH-C<S .H.-B.3B< -, ., <00-C-<,T .,C C:,H<,-<,T ?.,,<R C:?".T-3B< 9-T6 T6< -,C<"<,C<,C<,

-,T<>R-TF .,C <00<CT-H<,<SS :0 T6< "R:0<SS-:,$ Rule 2$01 C . la#yer shall not re&ect, e*ce t for %alid reasons, the cause of the defenseless or the o ressed$ Rule 2$02 C -n such cases, e%en if the la#yer does not acce t a case, he shall not refuse to render legal ad%ice to the erson concerned if only to the e*tent necessary to safeguard the latter)s rights$ Rule 2$05 C . la#yer shall not charge rates lo#er than those customarily rescri!ed unless the circumstances so #arrant$

Rule 2$02 C . la#yer shall not di%ide or sti ulate to di%ide a fee for legal ser%ices #ith ersons not licensed to ractice la#, e*ce t: a) 9here there is a re4e*isting agreement #ith a artner or associate that, u on the latter)s death, money shall !e aid o%er a reasona!le eriod of time to his estate or to ersons s ecified in the agreement' or !) 9here a la#yer underta(es to com lete unfinished legal !usiness of a deceased la#yer' or c) 9here a la#yer or la# firm includes non4la#yer em loyees in a retirement lan e%en if the lan is !ased in #hole or in art, on a rofit sharing agreement$

and ro!a!le results of the client)s case, neither o%erstating nor understating the ros ects of the case$ Rule 17$08$ C . la#yer shall not state or im ly that he is a!le to influence any u!lic official, tri!unal or legislati%e !ody$ Rule 17$0/$ C . la#yer shall im ress u on his client com liance #ith the la#s and the rinci les of fairness$ Rule 17$08$ C . la#yer #ho is engaged in another rofession or occu ation concurrently #ith the ractice of la# shall ma(e clear to his client #hether he is acting as a la#yer or in another ca acity$

CA$.$ ( C . B.9F<R S6.BB .T .BB T-?<S 1"6:BC T6< -,T<>R-TF .,C C->,-TF :0 T6< B<>.B "R:0<SS-:, .,C S1"":RT T6< .CT-H-T-<S :0 T6< -,T<>R.T<C 3.R$ CA$.$ ' C . B.9F<R S6.BB ,:T, C-R<CTBF :R -,C-R<CTBF, .SS-ST -, T6< 1,.1T6:R-J<C "R.CT-C< :0 B.9$ C . B.9F<R S6.BB :3S<RH< C.,C:R, 0.-R,<SS .,C B:F.BTF -, .BB 6-S C<.B-,>S .,C Rule /$01 C . la#yer shall !e ans#era!le for TR.,S.CT-:,S 9-T6 6-S CB-<,TS$ (no#ingly ma(ing a false statement or su ressing a material fact in connection #ith his a lication for admission to the !ar$ Rule 17$01$ C . la#yer, in conferring #ith a Rule /$02 C . la#yer shall not su ort the a lication ros ecti%e client, shall ascertain as soon as for admission to the !ar of any erson (no#n !y him ractica!le #hether the matter #ould in%ol%e a to !e un+ualified in res ect to character, education, or conflict #ith another client or his o#n interest, and if other rele%ant attri!ute$ so, shall forth#ith inform the ros ecti%e client$ Rule /$03 C . la#yer shall not engage in conduct that ad%ersely reflects on his fitness to ractice la#, nor shall he #hether in u!lic or ri%ate life, !eha%e in a Rule 17$03$ C . la#yer shall not re resent scandalous manner to the discredit of the legal conflicting interests e*ce t !y #ritten consent of all rofession$ concerned gi%en after a full disclosure of the facts$

CA$.$ 10 4 . B.9F<R S6.BB 6:BC -, TR1ST .BB ?:,<FS .,C "R:"<RT-<S :0 6-S CB-<,T T6.T ?.F C:?< -,T: 6-S "R:0<SS-:,$ Rule 18$01 C . la#yer shall account for all money or ro erty collected or recei%ed for or from the client$ Rule 18$02 C . la#yer shall (ee the funds of each client se arate and a art from his o#n and those of others (e t !y him$ Rule 18$03 C . la#yer shall deli%er the funds and ro erty of his client #hen due or u on demand$ 6o#e%er, he shall ha%e a lien o%er the funds and may a ly so much thereof as may !e necessary to satisfy his la#ful fees and dis!ursements, gi%ing notice rom tly thereafter to his client$ 6e shall also ha%e a lien to the same e*tent on all &udgments and e*ecutions he has secured for his client as ro%ided for in the Rules of Court$ Rule 18$05 C . la#yer shall not !orro# money from his client unless the client)s interest are fully rotected !y the nature of the case or !y inde endent ad%ice$ ,either shall a la#yer lend money to a client e*ce t, #hen in the interest of &ustice, he has to ad%ance necessary e* enses in a legal matter he is handling for the client$ C.,:, 20

Rule 2$01 C . la#yer shall not delegate to any un+ualified erson the erformance of any tas( #hich !y la# may only !e erformed !y a mem!er of the !ar in good standing$

Rule 17$05$ C . la#yer may, #ith the #ritten consent of all concerned, act as mediator, conciliator or ar!itrator in settling dis utes$ Rule 17$07$ C . la#yer #hen ad%ising his client, shall gi%e a candid and honest o inion on the merits

Rule 20$01 4 . la#yer shall !e guided !y the follo#ing factors in determining his fees$ a) the time s ent and the e*tent of the ser%ice rendered or re+uired' !) the no%elty and difficulty of the +uestions in%ol%ed' c) The im ortance of the su!&ect matter' d) The s(ill demanded' e) The ro!a!ility of losing other em loyment as a result of acce tance of the roffered case' f) The customary charges for similar ser%ices and the schedule of fees of the -3" cha ter to #hich he !elongs' g) The amount in%ol%ed in the contro%ersy and the !enefits resulting to the client from the ser%ice' h) The contingency or certainty of com ensation' i) The character of the em loyment, #hether occasional or esta!lished' and &) The rofessional standing of the la#yer$

#hatsoe%er related to his rofessional em loyment from anyone other than the client$ Rule 20$05 C . la#yer shall a%oid contro%ersies #ith clients concerning his com ensation and shall resort to &udicial action only to re%ent im osition, in&ustice or fraud$

"u!lications in re uta!le la# lists, in manner consistent #ith the standards of conduct im osed !y the canon, of !rief !iogra hical and information data, is allo#a!le$ ?odest announcements in ne#s a ers, eriodicals or maga=ines a!out the o ening of a la# office or stating the name of the la#yers and the address of the la# frm is not im ro er$ .ny self4 laudatory statements in ne#s a er ad%ertisements or rofessional cards disgrace and a!use the la#yer and his rofession$ 9orse, if the ad%ertisements are affected through the radios and tele%isions$ .n ad%ertisement !earing the name of the la#yer, his address, and the remar(s .ad%ice freeD is an im ro er solicitation (Pineda, supra, $ 52475, citing 3artor %$ State 3ar of California, 20 Cal$ 8//)$ . radio rogram of a la#yer, ad%ertising, his s(ills and recei%ing hone +uestions a!out the la# and #hich he ans#ers in the form of legal ad%ice is li(e#ise im ro er and re rehensi!le$ 6o#e%er, a legal aid rogram as a u!lic ser%ice is allo#a!le$D (Id.)$ &. -lep +. %he "egal Clinic, 1ar Matter $o. 223, /une 1(, 1''3 -n 1le %$ The Begal Clinic, 3ar ?atter ,o$ 773, Iune 1/, 1223, the res ondent laced a series of ne#s a er ad%ertisements, #hich read as a follo#s: Secret ?arriageK " 780$00 for a %alid marriage$ -nfo on Ci%orce, .!sence, .nnulment, Hisa The Begal Clinic -nc$ "lease call: 72140/8/ 721 4/232, 72242051 8:30 .$?$ 3 8:00 "$?$

Rule 20$02 C . la#yer shall, in case of referral, #ith the consent of the client, !e entitled to a di%ision of fees in ro ortion to the #or( erformed and res onsi!ility assumed$ Rule 20$03 C . la#yer shall not, #ithout the full (no#ledge and consent of the client, acce t any fee, re#ard, costs, commission, interest, re!ate or for#arding allo#ance or other com ensation

/th 0lr$, Hictoria 3ldg$, 1$,$ .%e$, ?anila$ >uam Ci%orce Con "ar(inson .n attorney in >uam is gi%ing 0ree 3oo(s on >uam Ci%orce through The Begal Clinic !eginning ?onday to 0riday during office hours$ >uam Ci%orce, .nnulment of ?arriage, -n%estigation "ro!lems, Hisa <*tensions, EuotaL,on4 Euota, Resident .nd S ecial Retiree;s Hisa, Ceclaration of .!sence, Remarriage to 0ili ina 0iancee, .do tion, .d%ertisement in the "hili ines, 1SL 0oreign Hisas for 0ili ina S ouseLChildren$ Call ?ari%ic$ The Begal Clinic -nc$ /0 Hictoria 3ldg$, 522 1, .%e$ <rmita, ?anila near 1$S$ <m!asy Tel$ 7214/232, 7214/271, 72242051, 72140/8/$

The Su reme Court ruled that the then re%ailing "hili ine ethical standards of the legal rogression condemned the la#yers; ad%ertisement of their ser%ices$ . la#yer cannot, #ithout %iolating the ethics of his rofession, ad%ertise his talents or s(ills in a manner similar to a merchant ad%ertising his goods$ The roscri tion against ad%ertising of legal ser%ices or solicitation of legal !usiness rests on the fundamental ostulate that the ractice of la# is a rofession$ The Court held that it #as undenia!le that the ad%ertisement in +uestion #as .a flagrant %iolation !y the res ondent of the ethics of the legal rofession, it !eing a !ra=en solicitation of !usiness from the u!licD$ The Rules of Court e* ressly ro%ides among other things that .the ractice of soliciting cases at la# for the ur ose of gain, either ersonally as thru aid agents or !ro(ers, constitutes mal ractice$D -t is .highly unethical for an attorney to ad%ertise his talents or s(ills as a merchant ad%ertise his #ares as la# is a rofession and not a trade$ The la#yer degrades himself and his rofession #ho stoo s to and ado ts the ractices of merchants !y ad%ertising his ser%ices or offering them to the u!licD$ .s a mem!er of the 3ar, .he defiles the tem le of &ustice #ith mercenary acti%ities as the money4changers of old defiled the tem le of Ieho%ahD$ (See also 4eruel, supra, $ 8/482)$

-n its ans#er to the osition, res ondent admitted the fact of u!lication of said ad%ertisements at its instance, !ut claimed that it #as not engaged in the ractice of la# !ut in the rendering .legal su ort ser%icesD through aralegals #ith the use of modern com uters and electronic machines$ Res ondent further argued that assuming that the ser%ices ad%ertised #ere legal ser%ices, the act of ad%ertising these ser%ices should !e allo#ed in the light of the case of 2ates and >an 1A"teen vs. "tate 2ar of %rizona decided !y the 1S Su reme Court in 12//$

The Court cited a ast sur%ey in the 1S #here the u!lic erce tion of 1S la#yers had re ortedly deteriorated !ecause of aggressi%e la#yer ad%ertising in the mass media$ The Court also held that .#ith the resent situation of our legal and &udicial systems, to allo# the u!lication of ad%ertisements of the (ind used !y res ondent #ould only ser%e to aggra%ate #hat is already a deteriorating u!lic o inion of the legal rofession #hose integrity has consistently !een under attac( lately !y media and the community in generalD$ The Court held that the 1288 Code of "rofessional Res onsi!ility did not .e* ressly or im liedlyD allo# la#yer ad%ertising of any (ind$ The Court also held that .under the resent state of our la# and &uris rudence, a cor oration cannot !e organi=ed for or engage in the ractice of la# in this countryD and that .this interdiction, &ust li(e the rule against unethical ad%ertising, cannot !e su!%erted !y em loying some so4called aralegals su osedly rendering the alleged su ort ser%icesD$ S ea(ing of aralegals, the Court held that .in our &urisdiction the ser%ices !eing offered !y ri%ate res ondent cannot !e erformed !y aralegalsD and that .only a erson duly admitted as a mem!er of the !ar, or hereafter admitted as such in accordance #ith the ro%isions of the Rules of Court, and #ho is in good and regular standing, is entitled to ractice la#D$ The Court held that .#hate%er may !e its meritsD, the matter of the ado tion of the 1S conce t of aralegals as an occu ation se arate from the la# rofession !e ado ted in the "hili ines is .a matter for &udicial rules or legislati%e action, and not of unilateral ado tion as the res ondent has doneD$ (.t resent, the "hili ines does not ha%e a la# or &udicial rules on the accreditation or licensing of aralegals)$ Re utation is the la#yer;s !est ad%ertisement$ This conce t ho#e%er oses ractical com etition4related ro!lems to many ne#ly admitted solo ractitioners and small and medium la# firms$ .s Teruel, uts it: .Re utation is really hard to earn and it ta(es a great effort and a long time to esta!lish it$ .lthough already earned !ut e%entually lost, it is hard to reco%er$ 9hen destroyed, it is %ery difficult to re!uild$D (Teruel, supra, $ 123)$

e. )ractical Mar3eting Re utation and ersonal contacts account for 87 ercent of the clients; reasons for selecting their la#yers$ (Teruel, supra, $ 1224123, citing a 1283 ?issouri 3ar4"rentice 6all Sur%ey, % #omplete 0uide to Profita3le 9aB Practice, Hol$ -, 1228 ed$, $ 2)$ -n the "hili ines, case referrals to la#yers emanate from ersonal recommendations !y friends, neigh!ors, relati%es, co4#or(ers, e*isting clients, other la#yers and rofessionals, court ersonnel, la# directories, and la# &ournals$ (Teruel, supra, $ 1184 121)$ -t is useful for a la#yer to esta!lish and maintain his o#n local and international rofessional, !usiness and social net#or(s as art of !uilding his la# ractice$ (Id.+$ The %ia!ility and continuity of the life of la# firms de end on the re%enues that they generate$ The re%enues are as high or as lo# as the num!er and +uality of clients that are attracted to and atroni=e the firm$ Client de%elo ment tools are the life4!lood of the la# firms: la# firms continue to e*ist !ecause of the clients atroni=ing them$ (Id$, $ /2)$ 0ili ino la#yers and la# firms faces the conser%atism of "hili ine legal ethics in the matter of reaching out to the consumers of legal ser%ices and gi%ing the consumers factual information on the !est a%aila!le, com etiti%e and cost4effecti%e legal ser%ices that they can use$ To +uote Teruel:

"u!lic relations firms are acce ted as client de%elo ment tools in .merica as no ethical rules are infringed !y their use$ .lthough it can !e admitted that u!lic relations firms can lay an im ortant role in hel ing the la# firm gain the u!lic;s notice, acce tance and confidence, there are %ery strong ethical constraints for their use in our country$ This osition is !uttressed !y Canon 3 of the Code of "rofessional Res onsi!ility rescri!ing that: .. la#yer in ma(ing (no#n his legal ser%ices shall use only true, honest, fair, dignified and o!&ecti%e information or statement of facts$D <m loyment of u!lic relations firms is lightly o!&ectiona!le !ecause under Rule 3$05 3 .. la#yer shall not ay or gi%e anything of %alue to re resentati%es of the mass media in antici ation of, or in return for, u!licity to attract legal !usiness$ "aid ad%ertising is considered a ma&or factor in may la#yers; client de%elo ment rograms$ 9hile in the 1nited States of .merica attorneys can no# use a %ariety of ad%ertising media #hich may include tele%ision, radio, ne#s a ers, maga=ines, trade u!lications, tele hone !oo( yello# ages, and direct mail, it is %ery dou!tful #hether ad%ertising !y tele%ision and radio #ould !e allo#ed in "hili ines #ithout the la#yers running afoul #ith the ethics of the rofession in the country$ 9hile our .merican !rother la#yers can ad%ertise in any manner !y #hate%er means #ithout restraints nor constraints as they #ish as .li!eratedD indi%iduals, their 0ili ino counter arts are still %ery conser%ati%e, cautious and consciously dignified in using ad%ertising as a tool for client de%elo ment$ The ress releases of the la# firm are mar(eting tools used !y many$ ,e#s release do not er se result in the ac+uisition of ne# clients$ 6o#e%er, ne#s releases !uild la# firm a#areness, cost %ery little and im ro%es the image and restige of the la#yers com osing the firm and the firm itself$ (Teruel, supra, $ 82483, 85487, /2)$

That is #hy the eu hemistic co%er of social interaction, #hich is in reality .face to face selling and cross4sellingD, is the fa%orite client de%elo ment tool or la# firm mar(eting techni+ue of 0ili ino la#yers and la# firms$ (Id$, $ 72)$ .s Teruel !luntly uts it, .in mar(eting or selling, it is not #hat you (no#, !ut #ho you (no# that countsD$ 6e adds that .most la#yers #ho (no# so many eo le and some #ho made s ecial efforts to meet them are successful in the racticeD$ (Id.)$ -n addition, 0ili ino la#yers and la# firms, #ho can afford the e* enses, generate !usiness through any or all of the follo#ing su!tle methods: olitical e* osure, ro !ono in%ol%ement in !ar associations and in social, ci%ic, academic, fraternal and religious organi=ations, free legal aid clinics and human rights cases, !rochures, la# firm stationaries, free legal seminars, free legal lectures, u!lication of legal articles, ne#s a er columns, radio4TH tal( sho#s, !oo( #riting, free legal ne#sletters, ethical ress releases, charita!le acti%ities, la# teaching, in%itations to ros ecti%e clients to attend s ecial social e%ents in the la# office, and similar u!lic4 relations acti%ities$ (Id., $ /2)$ Some -nternet4sa%%y 0ili ino la#yers and la# firms artici ate in la#4 related or u!lic olicy4oriented electronic chats, message !oards or communities or o en their o#n -nternet #e! ages$ . la#yer shall not directly or indirectly assist in the unauthori=ed ractice of la# (#anon 9, #P$+$ 6e shall not di%ide or sti ulate to di%ide a fees for legal ser%ices #ith ersons not licensed to ractice la#$ ($ule 9. -, #P$+$ @See also: "ineda, supra, $ 284 103, citing ".0B1 %$ 3inal!agan -sa!ela Sugar Co$, 52 SCR. 20/A$ -t is thus unethical for a la#yer to s lit fees #ith, for e*am le, !ro(ers, ad&usters, or accountants$ (0or further reading, see also: ?eriam Cefensor4Santiago, $ules of #ourt %nnotated. Eue=on City: Central "rofessional 3oo(s, -nc$, 1222, annotating Rule 138 and citing .rrieta %$ Blosa, 282 SCR. 258 (122/)' 3ongalonta %$ Castielo, 250 SCR. 310 (1227)' ?aligsa %$ 2/2 SCR. 508 (122/)' 1le %$ Begal Clinic, 223 SCR. 3/8 (1223)' Hillanue%a %$ Sta$ .ra, 257 SCR. /0/(1227' Tan %$ Sa!andal, 208 SCR. 5/3 (1222)' Ro+ue %$

Clemencio, 212 SCR. 818 (1222)' -gna %$ Ia%ier, 275 SCR. 518 (1228)' 0$ Ca%id <nt$ %$ -3.., 12/ SCR. 718 (1220)' -?SC %$ Ro*as, 278 SCR. 222 (1228)' 3autista %$ >on=ales, 182 SCR. 171 (1220)' Ta!illo %$ -.C 127 SCR. 28 (1221)A$ ?oreo%er, the ragmatic financial and management as ects of the la# ractice of the 0ili ino la#yer is !ound !y the constitutional o#er of the Su reme Court to admit, control and su er%ise the 3ar, to disci line mem!ers of the 3ar for unethical acts, to control and reduce the fees of la#yers, #here #arranted !y the circumstances, and to regulate e%en their ri%ate life and !eha%ior insofar as the same may affect their standing in the 3ar$ @See Rule H---, 128/ Constitution$ See also: Cefensor4Santiago, id., $ 2/841025, citing Sumaoay %$ RTC, 217 SCR. 138 (1222)' TR3$ <1- %$ ,BRC, 282 SCR. /33 (122/)' Radio#ealth 0inance %s$ -C3, 182 SCR. 882 (1220)' Bi=aro %$ .mante, 128 SCR., (1221)' 3autista %$ >on=ales, 182 SCR. 171 (1220)' Constantino %$ Sanche=, 228 SCR. 233 (1223)' ?ana+uil %$ Hillegas, 182 SCR. 337 (1220)' Co %$ 3ernardino, 287 SCR. 102 (1228)' ,gayan %$ Tugade, 123 SCR. //2 (1221)A$ 4. Reiterating the *thical Doctrines ?em!ershi in the !ar is a ri%ilege !urdened #ith conditions$ :ne is admitted to the !ar for something more than ri%ate gain$ 6e !ecomes an officer of the court and, li(e the court itself, an instrument or agency to ad%ance the ends of &ustice$ (?anuel H$ ?oran, #omments on the $ules of #ourt, Hol$ H-$ ?anila: "asicola 3oo(s Ser%ice, 1280 ed$, $ 221, citing "eo le e* rel, Garlin %$ Cul(in, 258 ,$F$ 587, 182 ,$<$ 58/, 70 .$B$R$ 871)$ 1nder Rule 138 of the Rules of Court, a mem!er of the !ar may !e remo%ed or sus ended from his office as attorney !y the Su reme Court for deceit, mal ractice, or other gross misconduct in such office, grossly immoral conduct, or !y season of his con%iction of a crime in%ol%ing moral tur itude, or for any %iolation of the oath #hich he is re+uired to ta(e !efore admission to

ractice, or for a #illful diso!edience to any la#ful order of a su erior court, or for corru tly or #illfully a earing as as attorney for a arty to a case #ithout authority to do so, or for soliciting cases$ (Id$, $ 2714272, citing -n re "elacy, 55 "hil$ 783)$ The ractice of la# is not a matter of right !ut merely a ri%ilege !esto#ed u on indi%iduals #ho are not only learned in the la# out #ho are also (no#n to osses good moral character (Id$, citing Tan %s$ Sa!andal, 208 SCR. 5/3)$ -t is not a money4ma(ing %enture (Id$, citing Candas %$ C., 185 SCR. 180)$ Ba# ad%ocacy is not a ca ital that yields rofits$ -t is a calling that, unli(e mercantile ursuits #hich en&oy a greater deal of freedom from go%ernment interference, is im ressed #ith u!lic interests, to #hich it is su!&ect to strictl regulation (Id$, citing ?3TC %$ C., 181 SCR. 3//)$ -t is reser%ed only to those #ho are academically trained in la# and ossessed of good moral character not only at the time of their admission to the 3ar !ut e%en more so thereafter to remain in good standing to ractice la#$ (Id$, citing "eo le %$ Cecana, 1/8 SCR. 822)$ (See also: "ineda, su ra, $ 18412)$ -n an attorney is a u!lic office$ 6e occu ies #hat may !e called a +uasi4 &udicial office$ 6e is, figurati%ely s ea(ing, a riest of &ustice$ @Ru!en <$ .g alo, "egal *thics$ Eue=on City, "hili ines: 1ni%ersity of the "hili ines Ba# Center, 1283 ed$, citing Re 171, ,ational sa%ings 3an( %$ 9ard, 100 1$S$ 127, 27 B$ ed$ 821 (1880)' 3erman %$ Coa(ley, 13/ ,< 88/ 28 .BR 22 (1223)A$ ?em!ershi in the !ar, an ancient no!le fello#shi , accords the la#yer #ith the status of officer of the court and a .minister of the tem le of &usticeD, a ri%ilege !urdened #ith conditions (3ereguer %$ Carran=a, 28 SCR. 8/3' Bedesma %$ Climaco, 7/ SCR. 5/3' .tien=a %$ <%angelista, .C$ ,o$ 171/, M,o%$ 22, 12//' "eo le e*$ rel$ Garlin %$ Cul(in, 258 ,F 587, 80 .BR 871 (1228)' Berma %$ Climaco, >R 35335, ?ay 12, 12/2' -n re .lmacen, 31 SCR. 782' Surigao ?ineral Reser%ation 3oard %$ Clori!el, ?ineral Reser%ation 3oard %$ Clari!el, >R 2/0/2, Ian$ 2, 12/0' Castaneda, %$ .ge, >R 28758, Iuly 30, 12/7)$ .s an officer of the court, an attorney is su!&ect to the disci linary authority of the court #ith res ect to his

relation to the court as #ell as to his client$ 6is admission to the ractice of la# is u on the im lied condition that his continued en&oyment of the right conferred is de endent u on his remaining fit and safe to e*ercise it$ (6ilado %$ Ca%id, 85 "hil$ 782 (1252)' 3erenguen %$ Carran=a, .C /18, Ian$ 30, 1282) Te&an %$ Cusi, >G 28822, ?ay 30, 12/5' -n re >utierre=, 3883 Iuly 31, 1282' -n re Santiago, /0 "hil$ 88(1250)$ 6is malfeasance, mal ractice, misconduct or dereliction of duty &ustifies the im osition of disci linary action u on him to reser%e the no!ility of the legal rofession and the sanctity of the administration of &ustice$ ("ineda, supra, $ 2734287, citing Tan Te( 3eng %$ Ca%id, 128 SCR. 382' Ba ut %$ Remoti+ue, 8 SCR. 57' (-n re: Tagorda, 73 "hil$ 3/' Cir$ :f Religion .ffairs %$ 3ayot, /5 "hil$ 7/2' (1S %$ ,ery, 8 "hil$ 158' 3eltran %$ .!ad, 132 SCR. 572' Sec$ 2/, Rule 138)$ Such acts may include, !ut not necessarily limited to, solicitation of cases either directly or indirectly thru aid agents or !ro(ers, encroaching u on the !usiness of another la#yer, ad%ertising a la#yer;s s(ills in a ne#s a er or u!lication, and coo erating in illegal ractice of la# such as the formation of a artnershi #ith a layman$ (Id$, citing Tan %$ Ca%id, 128 SCR. 382)$ 3eing a +uasi4&udicial officer, the court al#ays loo(s into, and closely scrutini=es, the la#yer;s transactions #ith his client and rotects the client from undue disad%antage on account of his situation (.g alo, supra, $ /42, citing Caroy %$ Begas i, .C 238, Iuly 27, 12/7' 6ernande= %$ Hillanue%a, 50 "hil$ /77 (1220)' 6o e %$ Gla erich, 28 ,6 2d /80, 1/3 .BR 812 (125/)' 6ilado %$ Ca%id, 85 "hil$ 782 (1252)$

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