Legal & Judicial Ethics, 2017 Bar — Question XI

ESSAY

A. Define champerty. 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% 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.

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