reason, complainant prayed for the disbarment of Atty.

CHAPTER IV. THE LAWYER AND THE CLIENT Francisco.

ISSUE:
CANON 14 - A LAWYER SHALL NOT REFUSE 1. W/N there is violation of the rule on conflict of interests and
HIS SERVICES TO THE NEEDY. disclosure of privileged communication

RULING:
Rule 14.01 - A lawyer shall not decline to represent 1. NO, the Court finds no violation of the rule on conflict of
a person solely on account of the latter's race, sex. interests and disclosure of privileged communication
creed or status of life, or because of his own
- From the foregoing, it is obvious that the rule on
opinion regarding the guilt of said person.
conflict of interests presupposes a lawyer-client
--------------------------------------------------------- relationship. The purpose of the rule is precisely to
protect the fiduciary nature of the ties between an
--------------------------------------------------------- attorney and his client. Conversely, a lawyer may
not be precluded from accepting and representing
Rule 14.02 - A lawyer shall not decline, except for
other clients on the ground of conflict of interests, if
serious and sufficient cause, an appointment as the lawyer-client relationship does not exist in favor
counsel de officio or as amicus curiae, or a request of a party in the first place.
from the Integrated Bar of the Philippines or any of - In determining whether or not Atty. Francisco
violated the rule on conflict of interests, a scrutiny of
its chapters for rendition of free legal aid.
the partiesÊ submissions with the IBP reveals that the
--------------------------------------------------------- complainant failed to establish that she was a client
of Atty. Francisco.
---------------------------------------------------------
Rule 14.03 - A lawyer may not refuse to accept - Conflict of Interests;
representation of an indigent client if: - A client can only entrust confidential information to
his/her lawyer based on an expectation from the
lawyer of utmost secrecy and discretion; the lawyer,
(a) he is not in a position to carry out the work
for his part, is duty-bound to observe candor, fairness
effectively or competently; and loyalty in all his dealings and transactions with
(b) he labors under a conflict of interest between the client.
him and the prospective client or between a - Part of the lawyerÊs duty in this regard is to avoid
representing conflicting interests.·Rule 15.03, Canon
present client and the prospective client.
15 of the CPR provides that, „[a] lawyer shall not
--------------------------------------------------------- represent conflicting interests except by written
consent of all concerned given after a full disclosure
of the facts.‰ „
CAPTION: Jimenez v. Francisco, A.C. No. 10548, December 10,
- The relationship between a lawyer and his/her client
2014
should ideally be imbued with the highest level of
trust and confidence. This is the standard of
FACTS: confidentiality that must prevail to promote a full
* Complainant was shocked upon reading the allegations in disclosure of the clientÊs most confidential
the complaint for estafa filed by Jimenez against her. She felt information to his/her lawyer for an unhampered
even more betrayed when she read the affidavit of Atty. exchange of information between them. Needless
Francisco, on whom she relied as her personal lawyer and to state, a client can only entrust confidential
Clarion’s corporate counsel and secretary of Clarion. information to his/her lawyer based on an
expectation from the lawyer of utmost secrecy and
* This prompted her to file a disciplinary case against Atty. discretion;
Francisco for representing conflicting interests. According to - the lawyer, for his part, is duty-bound to observe
her, she usually conferred with Atty. Francisco regarding the candor, fairness and loyalty in all his dealings and
legal implications of Clarion’s transactions. More significantly, transactions with the client. Part of the lawyerÊs duty
the principal documents relative to the sale and transfer of in this regard is to avoid representing conflicting
Clarion’s property were all prepared and drafted by Atty. interests⁄‰
Francisco or the members of his law office.7 - Thus, even if lucrative fees offered by prospective
clients are at stake, a lawyer must decline
Atty. Francisco was the one who actively participated in the professional employment if the same would trigger a
transactions involving the sale of the Forbes property. Without violation of the prohibition against conflict of
admitting the truth of the allegations in his affidavit, interest.
complainant argued that its execution clearly betrayed the
trust and confidence she reposed on him as a lawyer. For this ---------------------------------------------------------
• __

Rule 14.04 - A lawyer who accepts the cause of a

there were serious threats to his person, this did not
person unable to pay his professional fees shall give him the permission to desert his client and leave
observe the same standard of conduct governing the cases entrusted to his care hanging. He should
his relations with paying clients. have at least exercised reasonable and ordinary
care and diligence by taking steps to ensure that
---------------------------------------------------------
the cases he was handling were attended to and
that his client’s interest was safeguarded. If it was not
CANON 15 - A LAWYER SHALL OBSERVE possible for him to handle the cases entrusted to his
care, he should have informed the complainant of
CANDOR, FAIRNESS AND LOYALTY IN ALL his predicament and asked that he be allowed to
HIS DEALINGS AND TRANSACTIONS WITH withdraw from the case to enable the client to
engage the services of another counsel who could
HIS CLIENTS. properly represent him.
--------------------------------------------------------- - Deplorably, the respondent just disappeared,
deserted his client and forgot about the cases
entrusted to his care, to the complainant’s damage
CAPTION: Overgaard vs. Valdez, A.C. No. 7902, March 31, and prejudice. The respondent’s disbarment is not
2009 anchored on his failure to do anything in relation the
cases entrusted to his care, but on his abandonment
FACTS: of his client. He will not be absolved from liability on
* The complainant, engaged the services of respondent as his the basis alone of these inconsequential acts which
legal counsel in two cases filed by him and two cases filed he claims to have accomplished because the
against him. glaring fact remains that he has failed to perform his
essential obligations to his client, to the courts and to
Despite the receipt of the full amount of legal fees, the society. As the complainant’s lawyer, the
respondent refused to perform any of his obligations under respondent is expected to serve his client with
their contract for legal services, ignored the complainant’s competence and diligence.30 This includes not
request for a report of the status of the cases entrusted to his merely reviewing the cases entrusted to his care and
care, and rejected the complainant’s demands for the return giving the complainant sound legal advice, but also
of the money paid to him. properly representing his client in court, attending
scheduled hearings, preparing and filing required
Complainant Overgaard filed a complaint for disbarment pleadings, prosecuting the cases entrusted to his
against Valdez before the IBP. care with reasonable dispatch, and urging their
termination without waiting for his client or the court
During the investigation, respondent Valdez did not to prod him to do so. He should not idly sit by and
participate despite due notice. He was declared in default leave the rights of his client in a state of uncertainty.
for failure to submit an answer and attend the mandatory
conference. He did not submit a position paper or attend the
hearing. The Court held that respondent Valdez committed 1. YES Respondent's inaction with respect to the matters
multiple violations of the canons of the Code of Professional entrusted to his care is obvious; and his failure to file an
Responsibility and hereby DISBARRED and his name is ordered answer to the complaint for disbarment against him and to
STRICKEN from the Roll of Attorneys. attend the hearings in connection therewith, without any
explanation or request for resetting, despite proper notice
from the IBP, is clear evidence of negligence on his part.
ISSUE:
1. W/N did not give due diligence to the case of his client and
The relationship of an attorney to his client is highly fiduciary.
violated the CPR
Canon 15 of the Code of Professional Responsibility provides
that "a lawyer shall observe candor, fairness and loyalty in all
RULING:
his dealings and transactions with his client." Necessity and
1. YES, In abruptly abandoning his law office without advising
public interest enjoin lawyers to be honest and truthful when
his client and without making sure that the cases he was
dealing with his client. A lawyer owes fidelity to the cause of
handling for his client were properly attended to during his
his client and shall be mindful of the trust and confidence
absence, and without making arrangements whereby he
reposed in him.29
would receive important mail, the respondent is clearly guilty
of gross negligence.
However, instead of devoting himself to the client's cause, the
- Yes, the court find that respondent’s disbarment
respondent avoided the complainant, forgot about the cases
should be upheld. From the facts of the case, and
he was handling for him and ostensibly abandoned him. The
based on his own admissions, it is evident that he has
client reposed his trust in his lawyer with full faith that the
committed multiple violations of the Code of
lawyer would not betray him or abscond from his
Professional Responsibility.
responsibilities. By assuring the complainant that he would
- A lawyer cannot simply disappear and abandon his
take care of the cases included in the Retainer Agreement,
clients and then rely on the convenient excuse that
and even accepting fees, the respondent defrauded the
there were threats to his safety. Even assuming that

2
• __

complainant when he did not do a single thing he was RULING:

expected to do. A lawyer shall serve his client with 1. YES, he must not have accepted the engagement from
competence and diligence.30 A lawyer shall not neglect a Zenaida Canete
legal matter entrusted to him, and his negligence in - Attorney-Client Relationships; Conflict of Interests;
connection therewith shall render him liable.31 Respondent The relationship between a lawyer and his/her client
should indeed be held liable, for he was not just incompetent, should ideally be imbued with the highest level of
he was practically useless; he was not just negligent, he was trust and confidence; Part of the lawyerÊs duty in this
indolent; and rather than being of help to the complainant, regard is to avoid representing conflicting interests,
he prejudiced the client. a matter covered by Rule 15.03, Canon 15 of the
Code of Professional Responsibility
--------------------------------------------------------- - Jurisprudence has provided three tests in
Rule 15.02.- A lawyer shall be bound by the rule on determining whether a violation of the above rule is
present in a given case.
privilege communication in respect of matters
- One test is whether a lawyer is duty-bound
disclosed to him by a prospective client. to fight for an issue or claim in behalf of
--------------------------------------------------------- one client and, at the same time, to
oppose that claim for the other client. Thus,
---------------------------------------------------------
if a lawyerÊs argument for one client has to
Rule 15.01. - A lawyer, in conferring with a be opposed by that same lawyer in
prospective client, shall ascertain as soon as arguing for the other client, there is a
violation of the rule.
practicable whether the matter would involve a
- Another test of inconsistency of interests is
conflict with another client or his own interest, and if whether the acceptance of a new relation
so, shall forthwith inform the prospective client. would prevent the full discharge of the
lawyerÊs duty of undivided fidelity and
loyalty to the client or invite suspicion of
Rule 15.03. - A lawyer shall not represent conflicting
unfaithfulness or double-dealing in the
interests except by written consent of all concerned performance of that duty.
given after a full disclosure of the facts. - Still another test is whether the lawyer
--------------------------------------------------------- would be called upon in the new relation
to use against a former client any
CONFLICT OF INTEREST
confidential information acquired through
CAPTION: Aninon v. Sabitsana, Jr., A.C. No. 5098, April 11, their connection or previous employment.
2012

FACTS: CAPTION: Roberto Bernardino v. Atty. Victor Rey Santos, A.C.

* On the basis of the attendant facts of the case, we find No 10583, February 18, 2015
substantial evidence to support Atty. SabitsanaÊs violation of
the above rule, as established by the following circumstances FACTS:
on record: * In A.C. No. 10583, complainant Roberto C. Bernardino
- One, his legal services were initially engaged by the (Bernardino) filed a Letter-Complaint4 against Atty. Victor Rey
complainant to protect her interest over a certain Santos (Atty. Santos) before the Integrated Bar of the
property. The records show that upon the legal Philippines, praying that Atty. Santos be investigated and
advice of Atty. Sabitsana, the Deed of Sale over the subjected to disciplinary action.5
property was prepared and executed in the
complainantÊs favor. Bernardino alleged that the death certificate of his aunt,
Rufina de Castro Turla, was falsified by Atty. Santos. Atty.
- Two, Atty. Sabitsana met with Zenaida Cañete to Santos made it appear that Rufina Turla died in 1992, when in
discuss the latterÊs legal interest over the property fact, she died in 1990.6
subject of the Deed of Sale. At that point, Atty.
Sabitsana already had knowledge that Zenaida Atty. Santos used the falsified death certificate to -support the
CañeteÊs interest clashed with the complainantÊs Affidavit of Self-Adjudication7 executed by Mariano Turla,
interests. husband of Rufina Turla.8 Paragraph 6 of the Affidavit of Self-
Adjudication prepared by Atty. Santos states:
- Three, despite the knowledge of the clashing
interests between his two clients, Atty. Sabitsana Being her surviving spouse, I am. the sole legal heir entitled to
accepted the engagement from Zenaida Cañete. succeed to and inherit the estate of said deceased who did
not leave any descendant or any other heir entitled to her
estate.9 (Emphasis in the original underscoring supplied)
ISSUE:
1. W/N Atty. Sabitsana violated the rule against conflict of Years later, Atty. Santos, on behalf of Marilu Turla, daughter of
interest Rufina and Mariano Turla,10 filed a Complaint11 for sum of

3
• __

money with prayer for Writ of Preliminary Injunction and - Applying the test to determine whether conflict of
temporary restraining order against Bernardino, docketed as interest exists, respondent would necessarily refute
Civil Case No. 09-269.1 Mariano Turla’s claim that he is Rufina Turla’s sole
heir when he agreed to represent Marilu Turla.
ISSUE: Worse, he knew that Mariano Turla was not the only
1. W/N respondent violated the rule against conflict of interest heir. As stated in the Report of the Commission on
despite the previous client being dead Bar Discipline:
- Worse[,] the respondent himself on the witness stand
RULING: during his April 14, 2009 testimony in the Civil Case for
1.YES, Mariano Turla died on February 5, 2009,64 while Sum of Money with Prayer of Writ of Preliminary
respondent represented Marilu Turla in March 2009.65 It is Injunction and Temporary Restraining Order
understandable why respondent was unable to obtain docketed as Civil Case No. 09-269 filed with the RTC
Mariano Turla’s consent. Still, respondent did not present of Makati City admitted as follows: "I called the
evidence showing that he disclosed to Marilu Turla that he attention of Mr. Mariano Turla[.] I . . . asked him what
previously represented Mariano Turla and assisted him in about Lulu she is entitled [sic] to a share of properties
executing the Affidavit of Self-Adjudication. Thus, the and he . . . told me, ‘Ako na ang bahala kay Lulu[,]
allegation of conflict of interest against respondent was hindi ko pababayaan yan.’ So he asked me to
sufficiently proven. proceed with the Affidavit of Adjudication wherein
- . . . Canon 15 of the Code of Professional he claimed the whole [sic] properties for himself." This
Responsibility particularly Rule 15.03 specifically very admission proves that the respondent was privy
proscribes members of the bar from representing to Marilu Turla’s standing as a legal and rightful heir
conflicting interests. The Supreme Court has to Rufina Turla’s estate.62 (Citation omitted)
explained that "the proscription against
representation of conflicting interest finds
application where the conflicting interests arise with ---------------------------------------------------------
respect to the same general matter and is
Rule 15.04. - A lawyer may, with the written consent
applicable however slight such adverse interest may
be; the fact that the conflict of interests is remote or of all concerned, act as mediator, conciliator or
merely probable does not make the prohibition arbitrator in settling disputes.
inoperative." . . . . ---------------------------------------------------------
- The rule on conflict of interest is based on the
fiduciary obligation in a lawyer-client relationship. ---------------------------------------------------------
Lawyers must treat all information received from their Rule 15.05. - A lawyer when advising his client, shall
clients with utmost confidentiality in order to
give a candid and honest opinion on the merits and
encourage clients to fully inform their counsels of the
facts of their case.59 In Hornilla v. Atty. Salunat,60 probable results of the client's case, neither
this court explained what conflict of interest means: overstating nor understating the prospects of the
- There is conflict of interest when a lawyer represents case.
inconsistent interests of two or more opposing
---------------------------------------------------------
parties. The test is "whether or not in behalf of one
client, it is the lawyer’s duty to fight for an issue or ---------------------------------------------------------
claim, but it is his duty to oppose it for the other Rule 15.06. - A lawyer shall not state or imply that
client. In brief, if he argues for one client, this
he is able to influence any public official, tribunal or
argument will be opposed by him when he argues
for the other client." legislative body.
- This rule covers not only cases in which confidential
communications have been confided, but also Rule 15.07. - A lawyer shall impress upon his client
those in which no confidence has been bestowed or
compliance with the laws and the principles of
will be used.
- Also, there is conflict of interests if the acceptance fairness.
of 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 whether he will be called upon in his new Rule 15.08. - A lawyer who is engaged in another
relation to use against his first client any knowledge profession or occupation concurrently with the
acquired through their connection. Another test of
practice of law shall make clear to his client
the inconsistency of interests is whether the
acceptance of a new relation will prevent an
whether he is acting as a lawyer or in another
attorney from the full discharge of his duty of capacity.
undivided fidelity and loyalty to his client or invite ---------------------------------------------------------
suspicion of unfaithfulness or double dealing in the
---------------------------------------------------------
performance thereof.61

4
• __

CANON 16 - A LAWYER SHALL HOLD IN the complainant’s money. The respondent’s

TRUST ALL MONEYS AND PROPERTIES OF restitution cannot serve to mitigate his administrative
liability as he returned the complainant’s money not
HIS CLIENT THAT MAY COME INTO HIS voluntarily but for fear of possible criminal liability.
PROFESSION.
---------------------------------------------------------
---------------------------------------------------------
Rule 16.01 - A lawyer shall account for all money or
property collected or received for or from the
CAPTION: Andrada vs. Cera client.
A.C. No. 10187. July 22, 2015.* (formerly CBD Case No. 11- ---------------------------------------------------------
3053)
Fiduciary Relationship
FACTS: ---------------------------------------------------------
* The complainant hired the respondent to represent her in an
annulment of marriage case pending before the RTC.
Rule 16.02 - A lawyer shall keep the funds of each
In order to file the annulment case, the complainant needed client separate and apart from his own and those of
to submit National Statistics Office (NSO) copies of her others kept by him.
children’s birth certificates – documents which could not be
---------------------------------------------------------
obtained from the NSO because of her husband’s failure to
completely accomplish the certificates resulting in the non- Commingling of Funds
registration of the births of their two children. ---------------------------------------------------------

The complainant gave the respondent money to process the

registration and issuance of her children’s birth certificates
with the NSO.

The complainant also gave the respondent, through a friend,

the amount of ₱10,000.00 as advance payment for the hiring
of a psychologist and/or the conduct of psychologist tests for
herself and her children.

The complainant repeatedly asked the respondent for the

Rule 16.03 - A lawyer shall deliver the funds and
NSO receipt, but the latter would always give an excuse not
to turn the receipt over to her. property of his client when due or upon demand.
However, he shall have a lien over the funds and
This prompted the complainant to request confirmation of may apply so much thereof as may be necessary
payment from the NSO. She found out that the respondent
to satisfy his lawful fees and disbursements, giving
never paid nor filed applications for birth certificates.
notice promptly thereafter to his client. He shall also
The complainant wrote a demand letter to the respondent for have a lien to the same extent on all judgments
the surrender of the NSO receipt and the return of the and executions he has secured for his client as
₱10,000.00.
provided for in the Rules of Court.
ISSUE: ---------------------------------------------------------
1. W/N Returning money to the client upon threat of criminal Delivery of Funds [RULES]
liability restitutes the violation of Canon 16 ---------------------------------------------------------
RULING:
1. NO Rule 16.04 - A lawyer shall not borrow money from
- The court sustain the IBP Board of Governors’ findings
his client unless the client's interest are fully
of administrative liability, as well as its recommended
penalty of one (1) year suspension from the practice
protected by the nature of the case or by
of law. independent advice. Neither shall a lawyer lend
- The respondent, violated Rule 16.039 of Canon 16 money to a client except, when in the interest of
(which provides that “a lawyer shall deliver the funds
justice, he has to advance necessary expenses in a
and property of his client when due or upon
demand”) when he failed to return the
legal matter he is handling for the client.
complainant’s money upon demand. We note that it ---------------------------------------------------------
was only after a year that the respondent, under Borrowing or Lending
threat of a criminal case filed against him, returned

5
• __

CAPTION: Foronda v. Alvarez, A.C. No. 9976, June 25, 2014 FACTS:
* The complainant institute a case for the nullification of her
marriage. The respondent was referred to her and the
complainant agreed to engage his services for a fee of
₱195,000.00.

The complainant averred that the respondent promised to file

the petition after he received the full payment of his
attorney’s fee. The complainant inquired about the status of
her case and was allegedly told by the respondent that her
petition was pending in court; and in another time, she was
told that a decision by the court was already forthcoming.
However, when she came back to the country in May 2009,
the respondent told her that her petition was still pending in
court and apologized for the delay. Eventually, the
complainant was able to get a copy of her petition and
found out that it was filed a year later.

The complainant further alleged in her complaint that the

week after she signed the contract of service with the
respondent, the latter requested for a meeting. Thinking that
they were going to discuss her case, she agreed. But during
the meeting, the respondent invited her to be an investor in
the lending business allegedly ran by the respondent’s sister-
in-law which he said can earn five percent (5%) interest per
month.

According to the complainant, upon presentment of these

checks, the drawee-bank honored the first two (2) checks,
but the rest were dishonored for being drawn against a
closed account. When she brought the matter to the
respondent, he promised to pay her in cash. He actually paid
her certain amounts as interest through her representative.
Nevertheless, the respondent failed to pay the entire
obligation as promised.

ISSUE:
1. W/N Violation of Canon 16.04 transpire, borrowing
client’s money

2. W/N Violation of Canon 15.06 transpired

3. W/N the bounced checks reflected violations the

respondents ethical commitment to candor

RULING:
1. YES
- Respondent induced complainant to lend him
money at 5% interest per month but failed to pay the
same. This is admitted by respondent. Rule 16.04
provides that a lawyer shall not borrow money from
his client unless the clientÊs interests are fully
protected by the nature of the case or by
independent advice. Obviously, respondent
borrowed money from his client and his clientÊs
interest was not fully protected. In fact, respondent
repeatedly failed to comply with his promise to pay
complainant. The fact that he subsequently paid
complainant more than the amount due from him
as part of the settlement of the criminal complaint
filed by her against him hardly serves to mitigate his

6
• __

Rule 22.02 - A lawyer who withdraws or is

liability. x x x.
2. YES, Violation of Canon 15.06 of the Code of discharged shall, subject to a retainer lien,
Professional Responsibilities when [the respondent] immediately turn over all papers and property to
represented to [the complainant] that he know[s] of court which the client is entitled, and shall cooperative
personnel who will help facilitate [the complainantÊs] with his successor in the orderly transfer of the
annulment case;
matter, including all information necessary for the
- The complainant averred that the respondent
promised to file the petition after he received the proper handling of the matter.
full payment of his attorneyÊs fee, or on June 11, ---------------------------------------------------------
2008. In September 2008, the complainant SUBSTITUTION OF COUNSEL
inquired about the status of her case and was
---------------------------------------------------------
allegedly told by the respondent that her petition
was pending in court; and in another time, she
was told that a decision by the court was already
forthcoming. However, when she came back to
the country in May 2009, the respondent told her
that her petition was still pending in court and
apologized for the delay. Eventually, the
complainant was able to get a copy of her
petition and found out that it was filed only on
July 16, 2009.5

3. YES
- Respondents unfulfilled promise to settle his
obligation and the issuance of worthless checks
have seriously breached the complainantÊs trust.
- She went so far as to file multiple criminal cases for
violation of Batas Pambansa Bilang (B.P. Blg.) 22
against him.·It cannot be denied that the
respondentÊs unfulfilled promise to settle his
obligation and the issuance of worthless checks
have seriously breached the complainantÊs trust.
She went so far as to file multiple criminal cases for
violation of B.P. Blg. 22 against him. „The relationship
of an attorney to his client is highly fiduciary. Canon
15 of the Code of Professional Responsibility provides
that Âa lawyer shall observe candor, fairness and
loyalty in all his dealings and transactions with his
client.Ê Necessity and public interest enjoin lawyers
to be honest and truthful when dealing with his
client.‰ All told, this Court finds that the respondent
is liable for violation of Canons 15, 17, Rule 18.04,
and Rule 16.04 of the Code of Professional
Responsibility. Likewise, he is also liable under Rule
1.01 thereof pursuant to our ruling in Co v. Atty.
Bernardino, 282 SCRA 102 (1998).

---------------------------------------------------------
(e) When the client deliberately fails to pay the fees
for the services or fails to comply with the retainer
agreement;

(f) When the lawyer is elected or appointed to

public office; and
(g) Other similar cases.
---------------------------------------------------------
Withdrawal of services
---------------------------------------------------------