2017 (Legal Ethics) Bar Exam Questions: Question 11

[Answer/discuss the question below, or see 2017 bar exam Legal and Judicial Ethics Instructions; 2017 Legal and Judicial Ethics questions: 12345678, 9, 1012, 13, 14, 15, and 16; See also 2017 Bar Exam: Information, Discussions, Tips, Questions and Results]

-XI-

A.

Define champerty. (3%)

B.

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%)

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