Rule 8.07 A lawyer shall not commingle client’s funds.

• A lawyer shall keep the funds of each client separate and apart from his own and those of other kept by him.

• High fiduciary• Honesty and fidelity to private trust

Rule 8.08 A lawyer shall deliver funds to client, subject to his lien

• He may use the funds for lawful fees and disbursements so long as he notifies his client thereafter.

• Failure to return money upon client’s demand gives the presumption of misappropriation and violation of trust.

• Non-agreement of lawyer’s fees: Lawyer should not apply funds for the payment of his fees. Client may file the necessary action to fix and recover the amount of his fees.

RESTRICTION AGAINST BUYING CLIENT’S PROPERTY

Rule 8.09 Purchase of client’s property in litigation

• Lawyer is prohibited from buying client’s property, either personally or through mediation (such as an auction), that is involved in any litigation.

• This is to prevent undue influence of the lawyer over his client.

• No fraud in fact need be shown and no excuse will be heard.

Rule 8.10 Application of rule

4 Elements so 8.09 may be applied:• There must be an attorney-client relationship• Property must be in litigation• Attorney is the counsel in the case• The attorney or someone else buys the

property during the pendency of the litigation

• Execution of the deed of sale is immaterial• Any other means to circumvent the law

applies

Rule 8.11 Where rule inapplicable

• The absence of any rule renders Rule 8.09 inapplicable.

Rule 8.12 Effects of prohibited purchase

• It is a breach of professional ethics• Transaction is prohibited by law. It is null and

void ab initio.• The client is entitled to recover from his

attorney.

Rule 8.13 Purchase of choses in action

• The purpose of this is to prevent a lawyer from the temptation to litigate in his own account as a business proposition.

• An attorney places himself in the category of a voluntary litigant for profit.