Chapter 8: Lawyer's Fiduciary Obligations Flashcards
What is Article 24 of the Civil Code?
In all contractual, property, or other relations, when one of the parties is at a disadvantage on account of his moral dependence, ignorance, indigence, mental weakness, tender age or other handicaps, the courts, must be vigilant for his protection.”
What is Canon 11 of the Code of Professional Ethics?
Clue: Take advantage
“A lawyer should refrain from any action whereby for his personal benefit or gain he abuses or takes advantage of the confidence reposed in him by his client.”
Explain a lawyer’s duty in drawing a will of another.
A lawyer should not ordinarily draw a will under a circumstance which gives rise to an inference of undue influence.
What is Rule 10.4 of the CPR?
Clue: non acceptance of fees other than the client
A lawyer shall not without full knowledge and consent of his client, accept any fee, reward, cost commission interest, rebate or forwarding allowance or other compensation whatsoever related to his professional employment from anyone other than the client.”
What is Rule 16.4?
Clue: Borrowing money
“A lawyer shall not borrow money from his client unless the client’s interests are fully protected by the nature of the case or by independent advise.
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.”
What is the purpose of the prohibition against borrowing from a client?
To prevent the lawyer from taking advantage of his influence over the client?
What is the purpose of the prohibition against lending money to a client?
To assure the lawyer’s independent professional judgment for if a lawyer acquires a financial interest in the outcome of the case the free exercise of his judgment may be adversely affected.
What is Canon 16?
Clue: Hold in trust
A lawyer shall hold in trust all moneys and properties of his client that may come into his possession.
What is Rule 16.1?
Clue: Account
A lawyer shall account for all money or property collected or received for or from the client.
Enumerate the money that a lawyer may receive for or from his client.
- Money collected by client in pursuance of a judgment in favor of his client
- Money of a client not used for the purpose for which it was entrusted to his counsel
