2016 (Legal Ethics) Bar Exam Questions: Question 8

[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]


Arthur hired Atty. Jojo to file a complaint for the collection of P500,000.00. He agreed to pay Atty. Jojo the amounts of P100,000.00 as acceptance fee and P100,000.00 as success fee. Arthur paid P50,000.00 as partial payment of the acceptance fee with the promise to pay the balance ofP50,000.00 after presentation of Arthur’s evidence. During the pre-trial, the defendant paid to Atty. Jojo the amount ofPl00,000.00 as partial payment ofhis debt. Considering that he has not yet been paid of the balance ofhis acceptance fee, Atty. Jojo applied P50,000.00 to the balance of the acceptance fee and the remaining P50,000.00 was deposited in his bank account for safekeeping. Despite the lapse of one ( 1) month, Arthur was not informed of the payment. Arthur sued Atty. Jojo for keeping the money and argues that the latter violated the rules under Canon 16 of the CPR that a lawyer shall hold in trust all monies of his client that may come into his possession. Atty. Jojo claims he has a lien on the monies paid to him by the defendant. Rule on the complaint and explain. (5%)

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