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Canon 3

The document discusses the lawyer-client relationship and conflicts of interest. It provides that a lawyer-client relationship is fiduciary in nature and arises when a client voluntarily seeks legal advice or representation from a lawyer. A conflict of interest exists when a lawyer has opposing duties to multiple clients, such as arguing a claim for one client while having to oppose it for another. Tests for conflict include whether the lawyer has competing duties of loyalty or would have to use confidential information against a former client. Lawyers are also expected to encourage settlement to avoid litigation whenever possible.

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83 views

Canon 3

The document discusses the lawyer-client relationship and conflicts of interest. It provides that a lawyer-client relationship is fiduciary in nature and arises when a client voluntarily seeks legal advice or representation from a lawyer. A conflict of interest exists when a lawyer has opposing duties to multiple clients, such as arguing a claim for one client while having to oppose it for another. Tests for conflict include whether the lawyer has competing duties of loyalty or would have to use confidential information against a former client. Lawyers are also expected to encourage settlement to avoid litigation whenever possible.

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xxxxxxxxx xxxxxxx
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CANON III

FIDELITY
Code of Professional Responsibility and Accountability
OCA Circular No. 200-2023
Lawyer-Client Relationship
Section 3. A lawyer-client relationship is of the highest fiduciary character. As a trust
relation, it is essential that the engagement is founded on the confidence reposed by the
client on the lawyer. Therefore, a lawyer-client relationship shall arise when the client
consciously, voluntarily and in good faith vests a lawyer with the client's confidence for the
purpose of rendering legal services such as providing legal advice or representation, and the
lawyer, whether expressly or impliedly, agrees to render such services.
Uy v. Gonzales, A.C. No. 5280 (2004)
As a rule, an attorney-client relationship is said
to exist when a lawyer voluntarily permits or
acquiesces with the consultation of a person,
who in respect to a business or trouble of any
kind, consults a lawyer with a view of
obtaining professional advice or assistance.
Sison v. Dumlao, A.C. No. 11959, April 28, 2021
A lawyer-client relationship is established when
lawyers consistently manifest to a person
consulting them that they would provide
legal representation or assistance, regardless
of the close ties between the parties, or the lack
of a written contract, or the non-payment of
legal fees.
De Ysasi v. NLRC, G.R. No. 104599 March 11,
1994
Both counsel may well be reminded that their
ethical duty as lawyers to represent their clients
with zeal goes beyond merely presenting their
clients’ respective causes in court. It is just as
much their responsibility, if not more
importantly, to exert all reasonable efforts to
smooth over legal conflicts, preferably out of
court and especially in consideration of the
direct and immediate consanguineous ties
between their clients.
Lawyer’s duty to encourage
settlement
Section 8. A lawyer shall encourage the client to avoid, end or settle a controversy,
whether pending or not, in order to reach a settlement or a compromise if the
matter can be compromised under the law and will admit of a fair settlement. To
this end, the lawyer shall actively assist the parties and the court, tribunal, or
other government agency to effect mediation and/or dispute resolution.
De Ysasi v. NLRC, G.R. No. 104599 March 11,
1994
Once again, we reiterate that the useful
function of a lawyer is not only to conduct
litigation but to avoid it whenever possible by
advising settlement or withholding suit.
…Rule 1.04 of the Code of Professional
Responsibility explicitly provides that" (a)
lawyer shall encourage his client to avoid, end
or settle the controversy if it will admit of a fair
settlement."
De Ysasi v. NLRC, G.R. No. 104599 March 11,
1994
Once again, we reiterate that the useful
function of a lawyer is not only to conduct
litigation but to avoid it whenever possible by
advising settlement or withholding suit.
…Rule 1.04 of the Code of Professional
Responsibility explicitly provides that" (a)
lawyer shall encourage his client to avoid, end
or settle the controversy if it will admit of a fair
settlement."
Conflict of interests
Section 13. A lawyer shall encourage the client to avoid, end or settle a controversy,
whether pending or not, in order to reach a settlement or a compromise if the matter can
be compromised under the law and will admit of a fair settlement. To this end, the lawyer
shall actively assist the parties and the court, tribunal, or other government agency to
effect mediation and/or dispute resolution.
There is conflict of interest when a lawyer represents inconsistent or opposing interests of
two or more persons. The test is whether in behalf of one client it is the lawyer's duty to
fight for an issue or claim, but which is his or her duty to oppose for the other client.
Mabini Colleges, Inc. v. Atty. Pajarillo, A.C. No. 10687, 22
July 2015
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 client. In brief, if he argues for one client,
this argument will be opposed by him when he
argues for the other client.”
Aniñon v. Sabitsana, A.C. No. 5098 April 11, 2012
One test is whether a lawyer is duty-bound 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 lawyer’s argument for
one client has to be opposed by that same lawyer in arguing for
the other client, there is a violation of the rule.
Another test of inconsistency of interests is whether the
acceptance of a new relation would prevent the full discharge
of the lawyer’s duty of undivided fidelity and loyalty to the
client or invite suspicion of unfaithfulness or double-dealing in
the performance of that duty.
Still another test is whether the lawyer would be called upon in
the new relation to use against a former client any confidential
information acquired through their connection or previous
employment.

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