Client bought a headshot/'portfolio' shoot n burn with images on disc, plus 3 retouched, for a set amount from another photographer. Client did not like the results, came to me with the images he would like fixed (some bad exposure messups, etc). Now, as he owns the images, there is no issue with me editing and charging him, but would I be able to post those images on my own site (as retouch examples, not my own photographic works - would not the originals are not of my creation, just the editing). Thoughts?
Did the client purchase the copyright to the images or did the client purchase the rights to use the images? If the client only purchased usage rights, did they get the option to sublicense usage rights? As long as the client can legally grant you some sort of usage rights, you're in the clear.
It's common to see offers for people to "restore" an image. It happens.
In the US, copyright ownership is with the originator unless there is a contractual reason to know that it belongs to someone else (without going into volumes on the various ways it might not be - the person wanting the corrections should be able to provide clear evidence of copyright ownership or license to alter the product). This isn't necessarily the way it works in other countries.
Ownership of the "item" is not ownership of copyright. One of the exclusive rights granted to the copyright owner is the right to create derivative works. So, no, unless he can establish copyright ownership, it would not be "legal" for you to alter the other artist's product and claim it as yours, even simply claiming only those alterations.
In a practical sense, you might get away with it if only for the individual's private use, but putting it out on display promoting your skill in fixing other people's product (especially with them apparently in the same business area) would seem to be tempting fate.