Lawyer keeps client’s money

Lawyer keeps client’s money "A college friend sought the representation of a private lawyer in filing an estafa case against her three colleagues. At the onset of the complaint in the Prosecutor’s Office, her three colleagues signified their desire to settle. Since she was at the province at the time, she asked her lawyer if her mother could just accept the money on her behalf. Her lawyer rejected her proposition and insisted that he would be the one to accept the money. Although she was not comfortable with her lawyer’s proposition as she thought it would be easier for her if it would be her mother who would accept the money, she acceded to her lawyer. She asked her lawyer for the settlement money as soon as she came back from the province, but her lawyer gave several excuses. Months have already passed and still the money has not yet been transmitted to her. The last excuse her lawyer gave her is that she has to wait for the dismissal of the complaint. She smells something fishy. She feels that her lawyer is not being ethical. Do you think she has the basis to file a complaint for disbarment?Randolf Dear Randolf,Lawyers are bound not only to ensure that the law is upheld at all times, but also to maintain professionalism, high standards of honesty and keep their conduct beyond reproach. Rule 1.01 of the Code of Professional Responsibility (CPR) clearly states, “[A] lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct.” In money matters that involve their clients, lawyers are directed to hold their clients’ money in trust. And if demand has already been made, lawyers must deliver the same, save in the instances allowed by the Code. Canon 16 of the Code of Professional Responsibility states:“CANON 16 – A lawyer shall hold in trust all moneys and properties of his client that may come into his possession. “x x x“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.” In the situation you have presented, it appears that the private lawyer should have turned over the money, which is the subject of the settlement considering that your friend has made several demands for the same and it does not appear that said lawyer is asserting a lien over such funds.There also appears no legal basis to withhold such funds pending the dismissal of the complaint. If the lawyer will insist on this reasoning, then a complaint for disbarment may be instituted against him. As explained in the per curiam decision of the Supreme Court in the case of Diwei “Bryan” Huang vs. Atty. Jude Francis V. Zambrano (AC 12460, March 26, 2019):“Once money or property is received by a lawyer on behalf of his client, the former has the obligation to account for the said money or property and remit the same immediately to the latter. To ignore consecutive follow-ups and demands from the client without any acceptable reason corrodes the client’s trust and stains the legal profession.x x x“There is no law or jurisprudence which requires the formal dismissal of the case before the lawyer yields possession of his client’s money. In advising Huang of the same, Atty. Zambrano had acted deceitfully — willfully misleading Huang and abusing the trust and confidence his client reposed in him. This is in contravention of Rule 1.01, Canon 1 of the CPR, which bids lawyers not to engage in unlawful, dishonest, immoral, or deceitful conduct. x x x “A member of the Bar may be penalized, even disbarred or suspended from his office as an attorney, for violation of the lawyer’s oath and/or for breach of the ethics of the legal profession as embodied in the CPR. Lawyers should bear in mind that the practice of law is a profession, a form of public trust, the performance of which is entrusted only to those who are qualified and who possess good moral character. x x x”We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net" - https://www.affordablecebu.com/