Termination of Lawyer’s Engagement | LEGAL ETHICS: CANON III. Fidelity

TERMINATION OF LAWYER’S ENGAGEMENT
(Under Philippine Legal Ethics, with emphasis on Canon of Fidelity and the relevant rules on withdrawal of counsel)

I. OVERVIEW

A lawyer’s engagement (or attorney-client relationship) is founded on mutual trust, fidelity, confidence, and the faithful observance of legal and ethical duties. In the Philippines, the Code of Professional Responsibility (as superseded or supplemented by the 2023 Code of Professional Responsibility and Accountability, where applicable) and jurisprudence set forth the standards governing both the formation and termination of this relationship.

Termination of a lawyer’s engagement may occur:

  1. By the Client’s Act (dismissal or change of counsel);
  2. By the Lawyer’s Act (withdrawal from the case);
  3. By Mutual Consent; or
  4. By Operation of Law (e.g., death of the lawyer or client, final disposition of the case, etc.).

When termination arises, fidelity to the client’s cause does not abruptly end. A lawyer remains bound to certain continuing duties—such as confidentiality, return of client documents, and ensuring that the client’s interests are not prejudiced by the lawyer’s departure.

II. RELEVANT LEGAL AND ETHICAL BASES

  1. Fidelity to the Client

    • The notion of “fidelity” requires undivided loyalty. Even in terminating the engagement, the lawyer must protect the client’s interests to the fullest extent necessary to prevent prejudice.
    • Philippine jurisprudence stresses that a lawyer should not abandon a client at a critical stage of litigation without valid cause and proper notice.

  2. Code of Professional Responsibility

    • While the 1988 Code of Professional Responsibility (CPR) is traditionally cited, be aware of the 2023 Code of Professional Responsibility and Accountability (CPRA) which updates certain provisions.
    • Canon 22 (1988 CPR) and relevant rules provide that a lawyer may withdraw only for good cause and upon proper notice, and that the lawyer must undertake steps to protect the client’s interests.

  3. Rules of Court

    • The Rules of Court require court approval or permission for withdrawal when the court has already acquired jurisdiction over the case. A Formal Motion to Withdraw must be filed, stating the reasons for withdrawal and showing that the client has been duly notified.

  4. Case Law

    • Supreme Court decisions emphasize that a lawyer’s withdrawal must not prejudice the client’s ability to carry on with the case. Failure to comply can subject the lawyer to disciplinary action.

III. GROUNDS FOR TERMINATION OF ENGAGEMENT

A. Termination by the Client

  1. Dismissal or Discharge of Counsel at Will

    • The client has the absolute right to terminate the lawyer-client relationship at any time, with or without cause.
    • However, the client may still be liable for attorney’s fees for services already rendered or as stipulated in a valid fee agreement.

  2. Retention of a New Counsel

    • Once a client engages a new lawyer to handle the same matter, the previous lawyer’s authority is typically deemed terminated, provided that the new counsel has formally entered an appearance and, if necessary, the court has noted or approved the substitution.

B. Termination by the Lawyer (Withdrawal)

A lawyer may voluntarily withdraw from representing a client under certain conditions, generally requiring:

  1. Good Cause – Examples include:
    • The client insists on pursuing an illegal or unethical course of action.
    • The client refuses to pay attorney’s fees despite reasonable demand, or the relationship is marred by serious conflict rendering effective representation impossible.
    • Conflict of interest that was not initially apparent.
    • The client uses the lawyer’s services to perpetuate fraud.
  2. No Prejudice to the Client – The lawyer must ensure that withdrawal does not leave the client in a precarious situation or cause undue delay or harm to the client’s interests.
  3. Court Approval (if in litigation) – Once a case is in court, the lawyer’s withdrawal requires the prior permission of the court. A formal Motion to Withdraw must be filed:
    • Stating the reasons for withdrawal.
    • Showing proof of written notice to the client.
    • Informing the client of the need to secure another counsel or to appear on his/her own behalf.

C. Termination by Mutual Consent

Lawyer and client may agree to end the relationship at any time. This typically involves:

  • A formal document or written notice to confirm the mutual agreement.
  • Settlement of any outstanding fees and turnover of case files.

D. Termination by Operation of Law

  1. Death or Incapacity of the lawyer or the client.
  2. Completion of the Engagement – For instance, the final judgment in a litigation matter or successful conclusion of a transaction for which the lawyer was retained.

IV. ETHICAL DUTIES UPON TERMINATION

Even after the termination of the engagement, the lawyer’s duty of fidelity imposes continuing obligations:

  1. Duty to Give Reasonable Notice

    • If the termination is initiated by the lawyer, the client should receive adequate notice and reasonable opportunity to secure replacement counsel.
    • In court proceedings, the withdrawing lawyer must also notify the court.

  2. Duty to Return Documents and Property

    • All documents, funds, and property belonging to the client (e.g., original records, pleadings, exhibits) must be returned promptly upon request or upon withdrawal.
    • Failure to return documents can lead to administrative liability.

  3. Duty to Maintain Confidentiality

    • The lawyer remains bound by confidentiality. Even after the engagement ends, privileged communications or client secrets cannot be disclosed without the client’s consent or unless otherwise required by law.

  4. Duty to Account for Fees

    • The lawyer must render an accounting of any funds received on behalf of the client and return any unearned portion of fees, if applicable (e.g., if the lawyer was paid a retainer for specific services that were not fully performed by the time of withdrawal or termination).

  5. Duty to Cooperate in the Transfer of the Case

    • If the client decides to hire new counsel, the former lawyer should cooperate to the extent necessary to ensure a smooth transition, e.g., turning over all pleadings, evidence, and relevant case files.

  6. Duty to Avoid Prejudice to the Client

    • The lawyer must avoid any action that would injure the client’s interests, such as refusal to sign withdrawal pleadings, withholding documents, or using confidential information learned during the course of representation.

V. REMEDIES AND LIABILITIES RELATED TO IMPROPER TERMINATION

  1. Administrative Sanctions

    • Lawyers who improperly withdraw (e.g., abandonment of the client without notice) may face disciplinary action from the Supreme Court, ranging from reprimand to disbarment depending on the gravity of the misconduct.

  2. Civil Liability

    • A client may file a civil case for damages if the lawyer’s improper withdrawal or mishandling of the case caused financial or other harm.

  3. Forfeiture of Attorney’s Fees

    • Where a lawyer is guilty of misconduct or unethical withdrawal, courts can order partial or full forfeiture of fees.
    • On the other hand, if a lawyer is discharged without valid reason, the lawyer may be entitled to fees based on quantum meruit.

  4. Contempt of Court

    • If withdrawal is done without the required court approval or fails to comply with court orders, the lawyer risks being held in contempt.

VI. BEST PRACTICES FOR PROPER TERMINATION

  1. Communicate Clearly and Early

    • Whether initiated by the client or counsel, communicate the intent to terminate in writing, explaining reasons (if ethically permissible) and next steps.

  2. Secure Court Approval When Necessary

    • In pending litigation, file the appropriate Motion to Withdraw as Counsel or Substitution of Counsel (if new counsel is appearing). Ensure proof of service on the client and all other parties.

  3. Document All Transactions

    • Keep a written record (e.g., termination letter, receipt for returned documents, statement of account) to protect both client and lawyer.

  4. Ensure Smooth Handover of the Case

    • Provide new counsel or the client with all pertinent records, pleadings, and transcripts.
    • Offer clarifications on pending deadlines or procedural steps to avoid jeopardizing the case.

  5. Maintain Confidentiality

    • Continue to safeguard client secrets even after withdrawal or dismissal from the case.

  6. Avoid Conflicts of Interest

    • After termination, be mindful of potential conflicts if a subsequent representation might involve interests adverse to the former client.

VII. SAMPLE CLAUSES / FORMS FOR TERMINATION

Below is a skeletal outline of common legal forms or clauses that might be used in the Philippines. (Note: Always adapt to the specific facts and rules of the court in question.)

A. Motion to Withdraw as Counsel

REPUBLIC OF THE PHILIPPINES
REGIONAL TRIAL COURT
[Branch Number], [City/Province]

[Case Title and Number]

MOTION TO WITHDRAW AS COUNSEL

The undersigned counsel, Atty. [Name], respectfully manifests:

1. That he/she has been counsel of record for [Client Name] in the above-captioned case.
2. That due to [state valid ground — e.g., irreconcilable differences, non-payment of attorney’s fees, etc.], the undersigned can no longer continue to represent the client effectively.
3. That [Client Name] has been notified in writing of this intent to withdraw on [date of notice], and has been advised to secure the services of new counsel.
4. That this withdrawal is not intended to prejudice the interests of [Client Name], who has sufficient time to engage a new counsel.

WHEREFORE, premises considered, it is respectfully prayed that this Honorable Court grant the undersigned’s Motion to Withdraw as Counsel, and that he/she be relieved of further obligations in this case.

Other reliefs just and equitable under the premises are likewise prayed for.

[Date and Place]

Respectfully submitted,

[Signature over Printed Name of the Lawyer]
PTR No. _____________
IBP No. _____________
Roll No. _____________
[Address & Contact Details]

Copy furnished:
- [Name of Client], [Address]
- [Opposing Counsel/Party], [Address]

B. Notice of Termination of Engagement (by Client)

[Date]

Atty. [Lawyer’s Name]
[Address]

Dear Atty. [Name]:

Please be informed that I, [Client Name], am terminating your services as legal counsel effective immediately. I have decided to engage another lawyer to handle my [case/matter]. 

Kindly coordinate with my new counsel, Atty. [New Counsel], for the turnover of all case records, pleadings, and other relevant documents in your possession. 

I appreciate the services you have rendered thus far. Please forward a final statement of account, if any, for our settlement.

Thank you for your prompt attention to this matter.

Sincerely,

[Signature Over Printed Name of Client]
[Address and Contact Details]

VIII. CONCLUSION

The termination of a lawyer’s engagement in the Philippines is governed by rules designed to protect the client’s interests, uphold the integrity of the legal profession, and ensure faithful adherence to the principle of fidelity. Whether initiated by the client, by the lawyer, by mutual consent, or by operation of law, the departure must be handled ethically, with proper notice and respect for the ongoing duties owed to the client and the court.

A lawyer must:

  • Withdraw only for valid cause and with court permission where required.
  • Protect client interests until the transition is complete.
  • Return all client property and maintain confidentiality.
  • Remain mindful that professional responsibility extends beyond the termination date.

Meticulous adherence to these standards not only safeguards the client but also ensures that the legal profession remains worthy of public trust and confidence.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

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