[Answer/discuss the question below, or see 2017 bar exam Legal and Judicial Ethics Instructions; 2017 Legal and Judicial Ethics questions: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, and 16; See also 2017 Bar Exam: Information, Discussions, Tips, Questions and Results]
Define champerty. (3%)
Atty. Andy and Atty. Valeriano were classmates in law school. As such, they developed a close friendly relationship. They agreed that they would refer clients to each other, and whoever referred clients would receive a commission or portion of the attorney’s fees. Atty. Andy referred a client to Atty. Valeriano, who charged the client P100,000.00 as initial attorney’s fees. Thereafter, Atty. Valeriano sent 15°/o of P100,000.00, or P15,000.00, to Atty. Andy as the latter’s referral fee.
Explain if the agreement on the referral fee is ethical. (3%)