Legal & Judicial Ethics, 2012 Bar — Question 14

MULTIPLE CHOICE

Mr. Joseph, owner of an investment house, consulted a friend, Atty. Miro, about a potential criminal act1on against him because he cannot pay investors due to temporary liquidity problems. Atty. Miro asked Mr. Joseph to transfer to him all assets of the firm and he will take charge of settling the claims and getting quitclaims. A month later, Mr. Joseph was surprised to receive a demand letter from Atty. Miro, as counsel for all the claimants, for the pay back of their investments. After a while, Mr. Joseph received releases and quitclaims from the investors, with desistance from filing criminal action against him. Atty. Miro later told Mr. Joseph that he sent the demand letter so he can claim attorney's fee. Was there a conflict of interest? (A) No, there was no formal engagement of Atty. Miro as counsel for Mr. Joseph. (B) Yes, by giving legal advice to Mr. Joseph, the latter became a client of Atty. Miro. (C) No, there is no attorney-client relationship between Mr. Joseph and Atty. Miro as no attorney's fee was charged nor paid to the latter. (D) Yes, because Atty. Miro was representing Mr. Joseph when he disposed the assets to pay off the claims.

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