18 May 2018

Canon 15

BLE 5-18-18

J: Naka save na ko ng marami tapos sasabihin sakin no you can't use that money to buy a new
car, you have to buy a second hand car. Mahilig siyang ganon buy and sell, in a few years wala
kang mabiling bago puro second hand, laging ganyan sasabihin niya pano ka kukunin ng client.
Ako hindi ako naniniwala maybe true, kung ang client mas maganda pa ang car sayo, oh diba
that's a psychological side ang hirap diba. Always neat tidy, coat and tie parati, how about yung
disposition mo hindi pwede masungit simangot always smiling, kasi iisipin ng client pag naka
frown baka talo sa korte to. Mga lawyers ko sanay na mga yan very ano sila, inspiring. And tha's
why its very hard to observer after accepting the case and accepting attorney's fees allowing the
client to spend so much in your meriende and then you know honestly talo tayo, how can you
say that. Attorney paano tayo matatalo dapat you should have researched then, so again your
reputation is at stake. In other words in those cases the SC said you are not mandated to give
every detail of your case, you are not manddated to even explain the merits meaning the
possible defcision of the court, it is not an abssolute value. So when does 15. 05 apply now?
You don't have to give an account nor a summary of the time you accept the case. Unlike in
ordinary business you have to account for everything, hindi naman ganoon ang lawyer. So
what is required by the SC is a general overview, uhh you have state what kind of case, sabi ng
SC you don't have to volunteer but when you are asked or demanded by the client to make a
evaluation of the progress of the case, then that's where the duty of honesty comes in. Well
and the duty of honesty and candor does not have to be based in your personal opinion, so
when wala ka pang actual basis you have to go to the element of back to the sea if it is not
verified by the records, kung wala ka pa naman record ng you are losing you don't have to say
you are losing. But when there is a record of loss, you have to say to your client for it is your
duty to be honest because of the existence of the record. Pero kung wala ka pa namang record,
you are not required to make a summary that I think we are losing, eh kung panalo ka pala. Sabi
lang naman doon na the common ruling in those jurisprudence is the duty of the lawyer to
regularly inform the client of the progress of the case based on the report. At may nangyaring
development iinform, in other words don't let the client go in the dark. Why does the oerstating
the conversation the prospects of the case. This is related to 15.06 overstating or making a
statement or employed extrajudicial means to win, kasi if you have the record to show what is
really happening with your case how can you overstate, nagsisinungaling ka the client will now
your lying. But the overstating refers too, making an impression on the client that we are
influencing the court, that you are able to influence the court. Doon sa understating wala
akong nakikitang desisyon on how can you understate.
In order words you seperateto make clear to the client and to the public whwat profession you
practice as a lawyer or as a businessman, so yun lang ang focus ng supreme court. Lalo na pag
isa lang office mo. So any questions before we go?

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That there is a possibility of double dealing, conflic of interest. There's the lawyer, where there is
possibility. Panong hindi ganoon gagamitin ng lawyer talaga. When he has access of information
from the first client. When the second client files a case against the 1st client and they accept
information which is prejudicial to the first client. And that the evidence for the 1st and the 2nd
client may be linear to each other, even if the cases being handled by the lawyer for the 1st and
the 2nd are not the same. But evidence same evidence they may use for both or against client
definitely there is a conflic of interest, because the lawyer will now be confused whether to be
faithful to the 1st client by using this evidence or to the 2nd client. Why? Because in actual cases
lawyers can for example handle for the 1st client 1 case, which is not apparantly prejudicial to
another client. They can claim no conflic of interest, the example i gave you was the labo case.
The evidence were not the same so even if the parties or the clients are the same, yung 1st
vclient niya yung company the 2nd client are the empoyees, the wasges is the subjet matter.
Iba ang period covered, SC said he cannot defend if the lawyer is unfaithful to one client and
faithful to another we are talking about different sense of evidence.

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CANON 16 - A LAWYER SHALL HOLD IN TRUST ALL MONEYS AND PROPERTIES OF HIS CLIENT
THAT MAY COME INTO HIS PROFESSION.

Rule 16.01 - A lawyer shall account for all money or property collected or received for or from
the client.

Rule 16.02 - A lawyer shall keep the funds of each client separate and apart from his own and
those of others kept by him.

Rule 16.03 - A lawyer shall deliver the funds and property of his client when due or upon
demand. However, he shall have a lien over the funds and may apply so much thereof as may be
necessary to satisfy his lawful fees and disbursements, giving notice promptly thereafter to his
client. He shall also have a lien to the same extent on all judgments and executions he has
secured for his client as provided for in the Rules of Court.

Rule 16.04 - A lawyer shall not borrow money from his client unless the client's interest are fully
protected by the nature of the case or by independent advice. Neither shall a lawyer lend money
to a client except, when in the interest of justice, he has to advance necessary expenses in a legal
matter he is handling for the client.
Your client, say Berto called you up and hired you to file a complaint for sum of money against
Mario for failure to comply with the contract, so there's a bleach of contract and also unpaid
obligation by mario amounting to 500k pesos, so you were engage you accepted the attorneys
fees, initially wala ka pa masyado nagagawa, so you already filed a complaint and it was
answered by Mario that there was no truth in the breach of contract because there were other
matters, there are also some obligations by Mario. There must be trial you already attended, sabi
pa ng Judge sa pre-trial brief excellent. The presentation of evidence was already sent, you
already presented 1 witness who already testified na "may utang yan eh, ayaw niya magbayad
up to now, now you're very good in examining your client, in fact the other lawyer failed to cross-
examine your client, Pedro. In other words sa nangyaring proceeding it seems that you already
win, so the following day Mario called you up to the office, "atty. secret lang tong tawag ko sayo,
but you know after the evaluation of everything I will just pay Pedro kasi ayoko lang ng gulo" so
what do you plan to do? "pupunta na ko jan sa inyong office to give you 500k pesos, so atty ikaw
na magsabi na ayoko na palalain, maybe you file the motion to dismiss. Now you called up Pedro
and asked him if he was willing to dismiss the case in case Mario payed 500k, and he said no +
interest and moral damages because of sleepless nights. So I don't agree, another 200k would be
enough + penalty 6% per annum. You then called up Mario and told him that Pedro doesn't want
to accept the 500k, and asks you to convince Pedro. You computed and saw that Pedro owed you
for atty. fees, so you got the fees from the 500k. You returned to Pedro only 300k out of the
500k, in the proceedings Pedro discovered you kept the 200k. And he told you to not get the
200k because he has to pay tuition for his son, but you answered that you should give me pay
since you're not paying attorney's fees. You are now invocing 16.03, Pedro got mad at you and
filed an administrative case against you, can you be held administrably liable in this case?

There should be seperate accounts to their names. Can you not keep it at home? Even if you alot
for this client half ba yun? If you were charged with a violation you should be able to present a
certification or proof, that he opened an account. Whether its mandatory to open an account?
No, only in cases where you cannot reach your client, if your client doesn't want you to open an
account, otherwise you ask the client how he would have like the moneyto be handled, to be
return to himor to be kept by the lawyer.

Duty in Canon 16

1st duty to account for all the money or property collected or received for or from the client.
2nd Duty Keep separate the money of the clients.

3rd Duty To deliver the funds and property upon demand

Retaining Lien is the second sentence only of 6.03. Is it then an exception to the duty to deliver?
Yes. The exception is when the lawyer has unsatisfied fees, then he can apply funds and
properties in his posession. Now, in our exampl ehe applied the 200k did he commit any
unethical act? Yes, because he failed to do his 1st and 2nd duty, how can the client now decide
whether to demand or return? When he did not receive notice or did not have prior knowledge
of receipt of the money.

A lawyer can apply the money to the lawyer's fee only if e complied with the first two duty. DUe
to the fact that if the client did not want the money to be appied, he would have asked for the
delivery of the money.

Retaining Lien cannot be invoked with the first and second duty are not complied with. These
two are mandatory.

Difference of Charging Lien with Retaining Lien

1. Retaining Lien- in 16.03 the lawyer has the lawful right, to retain and keep money or property
in his posseion and apply it to his fees tht have remained unpaid.

Is there any requirement to apply such right?

-Yes there should be a written notice [not required but writting is better proof] so that
the cllient can object, and if no objection occure the lawyer is secured.

Do you need court action?

-No. Walang court action yan. Its an extra judicial right.

2. Charging Lien- A type of attorney's lien under which a lawyer acquires an interest in a
judgment awarded to the client. This may mean that the lawyer can eventually claim a portion of
any money paid to the client due to the judgment. .

How do you exercise a charging lien?

1. That the lawyer must have cause a statement of the lien

2. Entered into the records of the court

3. The court must have entered a favorable judgement on the lien.

*then motion for charging lien usually executed with the motion of execution of
judgement. It should be a moral motion. (there can be no charging lien without the
motion, that must be subsequently granted by the court.)

4. The court must also notice the client as well as the adverse party of such charging lien.

In short charging Lien is from a court order, after favorable decision had been granted by the
court, the motion for charging lien can be filed with motion for exectuion of judgement, and
the four requisite of exercising charging lien will then need to be met. Adverse party need to
be notice because they are the ones who will be paying for the order of the court.

Now are these the only kinds of attorney's lien for an attorney to collect his fees?

- Well of course this will not preclude other modes, like filing a complaint for colection of
attorney's fees. It is not even unethical. If all efforts have failed, then this can be done.

Kay Dean Pineda, the book mentioned that charging lien can only be done by money
judgement.

xpn. if there is a contract stiupation between the lawyer and the client, where it allows for a
charging lien to be done with property judgement.

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Lastly, Canon 16. An attorney cannot borrow money from his client.

xpn : Unless the business of the client is really lending [bank]. Also, When the client's interest is
protected.

Can the client borrow money and lawyer lend money?

GR: NO. Because the fiduciary relationship can be prejudiced.

xpn: When there is emergency, the need to file docket fees, which are need to be filed right
away, the lawyer may advance the payment.