2016 (Legal Ethics) Bar Exam Questions: Question 3

[Answer/discuss the question below, or see 2016 bar exam Legal Ethics Instructions; 2016 Mercantile Law questions: 12345678910111213141516171819 and 20; See also 2016 Bar Exam: Information, Discussions, Tips, Questions and Results]

-III-

Differentiate “retaining lien” from “charging lien.” (5%)

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  1. Differentiate “retaining lien” from “charging lien.” (5%)

    SUGGESTED ANSWER:

    An attorney’s lien is of two kinds:

    One is called “retaining lien” and the other“charging lien.”

    The“retaining lien” is the right of the attorney to retain the funds, documents, and papers of his client which have lawfully come into his possession until his lawful fees and disbursements have been paid and to apply such funds to the satisfaction thereof.

    The“charging lien.” is the right which the attorney has upon all judgments for the payment of money, and executions issued in pursuance of said judgments, which he has secured in litigation of his client (Section 33, Rule 127; Rustia vs. Abeto, 72 Phil., 133). Under this rule, this lien, whether retaining or charging, takes legal effect only from and after, but not before, notice of said lien has been entered in the record and served on the adverse party (Macondray & Company, Inc. vs. Jose, 66 Phil., 590; Menzi and Company vs. Bastida, 63 Phil., 16).

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