Question 11, 2017 Legal Ethics Bar Exam

Atty. Jericho Del Puerto

Atty. Jericho Del Puerto

Lawyer, Author, Mentor



(Question XI-A, Legal and Judicial Ethics, 2017 Bar Exam)

Define champerty. (3%)

Suggested Answer:

Champerty is any agreement by a lawyer to conduct the litigation in his own account, to pay the expenses thereof or to save his client therefrom and to receive as his fee a portion of the proceeds of the judgment is obnoxious to the law. Champerty is prohibited.


(Question XI-B, Legal and Judicial Ethics, 2017 Bar Exam)

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 ₱100,000.00 as initial attorney’s fees. Thereafter, Atty. Valeriano sent 15% of ₱100,000.00, or ₱15,000.00, to Atty. Andy as the latter’s referral fee.

Explain if the agreement on the referral fee is ethical. (3%)

Suggested Answer:

The agreement is unethical. Answer

Under the Code of Professional Responsibility, a lawyer shall, in case of referral, with the consent of the client, be entitled to a division of fees in proportion to the work performed and responsibility assumed. Rule

In the case at bar, there is no indication that Atty. Andy performed any service for which he is compensated via the referral fee. There is also no indication that the client gave consent thereto. Apply

Thus, it is unethical for Atty. Valeriano to pay referral fee to Atty. Andy. Conclusion


(Notice: The suggested answers simulate those that a bar examinee may provide, and thus specific citations are not provided. Notwithstanding, in the reviewers, the bar exam question is answered under the appropriate topic which discusses the concepts and principles, as well as provide for specific citations. Accordingly, please refer to it on the reviewer or in the Library.)



Political Law, Labor Law

B. Anti-Fencing Law of 1979

Frequency: ★★☆☆☆ “Fencing” – is the act of any person who, with intent to gain for himself or for another, shall buy, receive, possess, keep,

4. Retroactive effect of penal laws

Frequency: ★★★★☆ Penal Laws shall have a retroactive effect insofar as they favor the persons guilty of a felony, who is not a habitual criminal,

G. Anti-Plunder Act

Frequency: ★★★★★ “Public Officer” – means any person holding any public office in the Government of the Republic of the Philippines by virtue of an

E. Anti-Money Laundering Act of 2001

Frequency: ★★★★☆ “Covered Institution” refers to: 1) Banks, non-banks, quasi-banks, trust entities, and all other institutions and their subsidiaries and affiliates supervised or regulated by

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