spethics canon 14-19

8/9/2019 Spethics Canon 14-19

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MA. LUISA HADJULA,Complainant,

- versus -

ATTY. ROCLS !. MADIA"DA,Respon#ent.

A.C. "o. $%&&Present:

PUNO, C.J., Chairperson,

*SANDOVAL-GUTIERREZ, CORONA, AZCUNA, and GARCIA,JJ.

Promu!ated:

"u# $, %&&'

(------------------------------------------------------------------------------------(

D C I S I O "'ARCIA,J.(

Under )onsderaton s Resouton No+ VI-%&&-'% o. t/e 0oard o. Go1ernors, Inte!rated 0ar o. t/e P/22nes 3I0P4, reat1e to t/e )om2ant .or ds5arment .ed 5# /eren )om2anant6a+ Lusa 7ad8ua a!anst res2ondent Att#+ Ro)ees 9+ 6adanda+

T/e )ase started /en, n anAFFIDAVIT-COMPLAINT;


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?+ I s2e).)a# den# t/e ae!aton o. 9SUPT+ 6A+ LUISA C+ 7AD"ULA n 2ara!ra2/ o. /er A99IDAVIT-CO6PLAINT .or reason t/at s/e ne1er BAS 6F

CLIENT nor e e1er /ad an# LABFER-CLIENT RELATIONS7IP t/at e1er e(sted e1er sn)e and t/at ne1er o5taned an# e!a ad1)e .rom me re!ardn! /er PERSONALPRO0LE6S or PERSONAL SECRETS+ S/e @ese ne1er de1ered to me e!a do)uments mu)/ more tod me some )on.denta n.ormaton or se)rets+ T/at s 5e)ause Ine1er entertan LEGAL UERIES or CONSULTATION re!ardn! PERSONAL 6ATTERS sn)e I @no as a LABFER o. t/e 0ureau o. 9re Prote)ton t/at I am not aoed to2r1ate# 2ra)t)e a and t m!/t aso resut to CON9LICT O9 INTEREST+ As a matter o. .a)t, /ene1er t/ere 5e PERSONAL 6ATTERS re.erred to me, I 8ust re.erredt/em to 2r1ate a 2ra)ttoners and ne1er entertan t/e same, NOR sten to t/er stores or e(amne or a))e2t an# do)ument+

>+ I s2e).)a# den# t/e ae!aton o. 9SUPT+ 6A+ LUISA C+ 7AD"ULA n 2ara!ra2/ o. /er A99IDAVIT-CO6PLAINT, t/e trut/ o. t/e matter s t/at /er

ILLICIT RELATIONS7IP and /er e!a and una.u a)t1tes are @non n t/e 0ureau o. 9re Prote)ton sn)e s/e aso . ed C7ILD SUPPORT )ase a!anst /er o1er H /eres/e /as a )/d H+6oreo1er, t/e ae!ed DOCU6ENTS s/e 2ur2orted# /a1e s/on to me sometme n >, are a 2art o. 2u5) re)ords H+9urt/ermore, 9SUPT+ 6A+ LUISA C+ 7AD"ULA, s .n! t/e nstant )ase 8ust to !et e1en t/ me or to .or)e me to sette and t/dra t/e CASES I 9ILED

AGAINST 7ER sn)e s/e @nos t/at s/e )ertan# 5e DIS6ISSED 9RO6 SERVICE, RE6OVED 9RO6 T7E PRC ROLL and CRI6INALLF CONVICTED o. /erILLICIT, I66ORAL, ILLEGAL and UNLAB9UL ACTS+

On O)to5er ', %&&, t/e In1est!atn! Commssoner o. t/e I0P Commsson on 0ar Ds)2ne )ame out t/ a Report and Recommendation, statn! t/at t/e n.ormaton reated 5# )om2anantto t/e res2ondent s 2rote)ted under t/e attorne#-)ent 2r1e!e )ommun)aton+J Pres)ndn! .rom t/s 2ostuate, t/e In1est!atn! Commssoner .ound t/e res2ondent to /a1e 1oated e!a et/)s/en s/e ;re1eaed= n.ormaton !1en to /er durn! a e!a )onsutaton,J and a))ordn!# re)ommended t/at res2ondent 5e re2rmanded t/ere.or, t/us:

B7ERE9ORE, 2remses )onsdered, t s res2e)t.u# re)ommended t/at res2ondent Att#+ Ro)ees 6adanda 5e re2rmanded .or re1ean! t/e se)rets o. t/e )om2anant+

On No1em5er , %&&, t/e I0P 0oard o. Go1ernors ssued Resouton No+ VI-%&&-'% readn! as .oos:

RESOLVED to ADOPT and APPROVE, as t s /ere5# ADOPTED and APPROVED, t/e Re2ort and Re)ommendaton o. t/e In1est!atn! Commssoner o. t/e a5o1e-entted )ase, /eren made 2art o. t/s Resouton as Anne( AJK and , .ndn! t/e re)ommendaton .u# su22orted 5# t/e e1den)e on re)ord and t/e a22)a5e as and rues, and)onsdern! t/e a)tuaton o. re1ean! n.ormaton !1en to res2ondent durn! a e!a )onsutaton, Att#+ Ro)ees 6adanda s /ere5# R)RIMA"DD+

Be A'Rt/ t/e re)ommendaton and t/e 2remses /odn! t to!et/er+

As t ere, )om2anant ent to res2ondent, a a#er /o n)denta# as aso t/en a .rend, to 5are /at s/e )onsdered 2ersona se)rets and senst1e do)uments .or t/e 2ur2ose o.o5tann! e!a ad1)e and assstan)e+ T/e moment )om2anant a22roa)/ed t/e t/en re)e2t1e res2ondent to see@ e!a ad1)e, a 1erta5e a#er-)ent reatons/2 e1o1ed 5eteen t/e to+ Su)/reatons/2 m2oses u2on t/e a#er )ertan restr)tons )r)ums)r5ed 5# t/e et/)s o. t/e 2ro.esson+ Amon! t/e 5urdens o. t/e reatons/2 s t/at /)/ en8ons t/e a#er, res2ondent n t/snstan)e, to @ee2 n1oate )on.denta n.ormaton a)ured or re1eaed durn! e!a )onsutatons+ T/e .a)t t/at one s, at t/e end o. t/e da#, not n)ned to /ande t/e )ents )ase s /ard# o.)onseuen)e+ O. tte moment, too, s t/e .a)t t/at no .orma 2ro.essona en!a!ement .oos t/e )onsutaton+ Nor t ma@e an# d..eren)e t/at no )ontra)t /atsoe1er as e(e)uted 5# t/e2artes to memorae t/e reatons/2+ As e sad n !r"e #. Ma$!%ta,[6]-

A a#er-)ent reatons/2 as esta5s/ed .rom t/e 1er# .rst moment )om2anant as@ed res2ondent .or e!a ad1se re!ardn! t/e .ormers 5usness+ To )onsttute

2ro.essona em2o#ment, t s not essenta t/at t/e )ent em2o#ed t/e attorne# 2ro.essona# on an# 2re1ous o))ason+It s not ne)essar# t/at an# retaner 5e 2ad, 2romsed, or )/ar!edK net/er s t matera t/at t/e attorne# )onsuted dd not a.terard /ande t/e )ase .or /)/ /s ser1)e

/ad 5een sou!/t+
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R'ALADO,J.:

Pettoner assas t/e resouton o. res2ondent )ourt, dated 9e5ruar#


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u2on a moton .or re)onsderaton t/erea.ter .ed 5# 2r1ate res2ondent, t/e 2resent res2ondent Court o. A22eas ssued anot/er resouton, dated 9e5ruar#


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0ot/ t/e oer )ourt and t/e a22eate )ourt )on)ur n t/er .ndn!s t/at t/ere as a a#er-)ent reatons/2 5eteen 2ettoner and 2r1ate res2ondent 6utu)+ Be .nd no reason to nter.ere t/t/s .a)tua .ndn!+ T/ere ma# 5e nstan)es /en t/ere s dou5t as to /et/er an attorne#-)ent reatons/2 /as 5een )reated+ T/e ssue ma# 5e rased n t/e tra )ourt, 5ut on)e t/e tra )ourt and t/eCourt o. A22eas /a1e .ound t/at t/ere as su)/ a reatons/2 t/e Su2reme Court )annot dstur5 su)/ .ndn! o. .a)t, &&a5sent )o!ent reasons t/ere.or+

T/e 2uere )am s ad1an)ed t/at t/ere as no attorne#-)ent reatons/2 5eteen 2ettoner and 2r1ate res2ondent .or a)@ o. a rtten )ontra)t to t/at e..e)t+ T/e a5sen)e o. a rtten )ontra)t not 2re)ude t/e .ndn! t/at t/ere as a 2ro.essona reatons/2 /)/ merts attorne#s .ees .or 2ro.essona ser1)es rendered+ Do)umentar# .ormasm s not an essenta eement n t/eem2o#ment o. an attorne#K t/e )ontra)t ma# 5e e(2ress or m2ed+ To esta5s/ t/e reaton, t s su..)ent t/at t/e ad1)e and assstan)e o. an attorne# s sou!/t and re)e1ed n an# matter 2ertnentto /s 2ro.esson+ An a))e2tan)e o. t/e reaton s m2ed on t/e 2art o. t/e attorne# .rom /s a)tn! on 5e/a. o. /s )ent n 2ursuan)e o. a reuest .rom t/e atter+ &0

T/ere s no ueston t/at 2ro.essona ser1)es ere a)tua# rendered 5# 2r1ate res2ondent to 2ettoner and /s .am#+ T/rou!/ /s e..orts, t/e a))ount o. 2ettoners 5rot/er, Dee# Dee, t/Caesars Paa)e as assumed 5# Ramon S# and 2ettoner and /s .am# ere .urt/er .reed .rom t/e a22re/enson t/at Dee# m!/t 5e /armed or e1en @ed 5# t/e so-)aed ma)ia+ 9or su)/ser1)es, res2ondent 6utu) s ndu5ta5# entted to re)e1e a reasona5e )om2ensaton and t/s r!/t )annot 5e )on)uded 5# 2ettoners 2retenson t/at at t/e tme 2r1ate res2ondent rendered su)/ser1)es to 2ettoner and /s .am#, t/e .ormer as aso t/e P/22ne )onsutant o. Caesars Paa)e+

On t/e .rst as2e)t, t/e e1den)e o. re)ord s/os t/at t/e ser1)es o. res2ondent 6utu) ere en!a!ed 5# t/e 2ettoner .or t/e 2ur2oses /eren5e.ore ds)ussed+ T/e 2re1ous 2arta 2a#ments totan!P?&,&&&+&& made 5# 2ettoner to res2ondent 6utu) and t/e tenor o. t/e demand etters sent 5# sad 2r1ate res2ondent to 2ettoner, t/e re)e2t t/ereo. 5en! a)@noed!ed 5# 2ettoner, neu)ta5#2ro1e t/ree .a)ts, 1: t/at 2ettoner /red t/e ser1)es o. 2r1ate res2ondent 6utu)K t/at t/ere as a 2ror a!reement as to t/e amount o. attorne#s .ees to 5e !1en to t/e atterK and t/ere as st a5aan)e due and 2a#a5e on sad .ees+ T/e du2)ate or!na )o2# o. t/e nta re)e2t ssued and s!ned n t/s )onne)ton 5# 2r1ate res2ondent reads:

RECEIVED .rom 6r+ Donad Dee, .or 2ro.essona ser1)es rendered, t/e sum o. T7IRTF T7OUSAND PESOS 3P$&,&&&+&&4 as 2arta 2a#ment, ea1n! a 5aan)e o. SEVENTF

T7OUSAND PESOS 3P'&,&&&+&&4, 2a#a5e on demand+

6a@at, 6etro 6ana, "u# %?,


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A a#er s entted to /a1e and re)e1e t/e 8ust and reasona5e )om2ensaton .or ser1)es rendered at t/e s2e)a nstan)e and reuest o. /s )ent and as on! as /e s /onest# and n !ood .at/ tr#n!to ser1e and re2resent t/e nterests o. /s )ent, t/e atter s 5ound to 2a# /s 8ust .ees+ &1

B7ERE9ORE, t/e resouton o. res2ondent Court o. A22eas, dated 9e5ruar#


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VALERIANA U+ DALISAF, Complainant,

- 1ersus -

ATTF+ 6ELANIO 6AURICIO, "R+, Res2ondent+

A.C. "o. 2$22

Present:

PANGANI0AN,J+,C/arman,SANDOVAL-GUTIERREZ,CORONA,CARPIO 6ORALES, andGARCIA,JJ+

Promu!ated:

A2r %%, %&&?

4

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D C I S I O "

SANDOVAL-GUTIERREZ,J+:

T/e nstant )ase stemmed .rom a 1er.ed etter-)om2ant dated 9e5ruar# %


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turn, res2ondent demanded P%?,&&&+&& as a))e2tan)e .ee /)/ s/e 2ad+ T/en res2ondent as@ed /er to 2a# P,&&&+&& as .n! .ee+ S/e 2ad t/e amount at/ou!/ s/e @ne t/at C1 Case No+ &&- as aread# .ed t/ t/e )ourt+

A.ter a mont/, )om2anant a22roa)/ed res2ondent to .oou2 /er )ase+ Res2ondent demanded addtona a))e2tan)e .ee, or a tota o. P>&,&&&+&&, t/ t/e e(2anaton t/at /e )an !1e a

ds)ount s/oud s/e 2a# n )as/+ Res2ondent aso as@ed /er to 2a# /m P$,&&&+&& as a22earan)e .ee+Com2anant rased an addtona amount and 2ad res2ondent t/e tota sum o. P,&&&+&&+ Addn! to t/s amount P,&&&+&& .n! .ee, /er tota 2a#ment asP?M,&&&+&&+Com2anant .urt/er ae!ed t/at nott/standn! /er 2a#ments, res2ondent ne1er rendered an# e!a ser1)e .or /er n C1 Case No+ &&-&+ As a resut, s/e termnated t/er attorne#-

)ent reatons/2 and demanded t/e return o. /er mone# and do)uments+ 7oe1er, /e re.used to do so+In /s )omment, res2ondent dened )om2anants )/ar!e+ 7e )amed t/at Att#+ O1er Loano re.erred /er to /m to de.end /er n C1 Case No+ &&-&+ 7e e(2aned to /er t/at s/e s

not )o1ered 5# t/e .ree e!a ser1)es 5en! rendered 5# /s o..)e+ T/us, s/e oud 5e treated as a re!uar )ent+ A))ordn!#, /s a))e2tan)e .ee oud 5e One 7undred T/ousand 3P


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On 9e5ruar# %', %&&, t/e I0P 0oard o. Go1ernors 2assed Resouton No+ VI-%&&-


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It s no )ear to us t/at sn)e res2ondent dd not ta@e an# ste2 to assst )om2anant n /er )ase, )/ar!n! P?M,&&&+&& s m2ro2er+ B/e !1n! e!a ad1)e and o2non on )om2anants

2ro5ems and t/ose o. /er .am# )onsttutes e!a ser1)e, /oe1er, t/e attorne#s .ee must 5e reasona5e+ O51ous#, P?M,&&&+&& s e(or5tant+

Be )annot understand /# res2ondent nta# demanded P,&&&+&& as .n! .ee .rom )om2anant /en /e 1er# e @ne t/at t/e do)@et .ee .or C1 Case No+ &&-& /ad 5een 2ad+ I.t as ntended as a do)@et .ee .or anot/er )ase, /# dd /e not .e t/e )orres2ondn! )om2antQ

0# /s na)ton n C1 Case No+&&-&, res2ondent 1oated Canons


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AY" Y. YU, complainant, vs. R"ATO LA=ARO >O"DAL, respondent.

D C I S I O "

CAR)IO MORALS,J.(

Att#+ Renato Laaro 0onda 3res2ondent4 stands )/ar!ed n a )om2ant ; aso .or 1oaton o. 0atas Pam5ansa 0!+ %%+;=

In t/e Retaner A!reement;?=dated 6ar)/ $&, %&&&, )om2anant a!reed to 2a# res2ondent t/e amount o. P%&&,&&&+&& as A))e2tan)e 9ee .or t/e .1e )ases, t/ an A22earan)e 9ee o. P and 0PI 9am# 0an@ No+ >>M, dated 9e5ruar# %&, %&&< and A2r ?, %&&< n t/e amount o. P$&,&&&+&& andP%


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0# Resouton;, %&&%, /)/ as !ranted 5# Resouton o. 6a# %', %&&%+ No )o2# as, /oe1er, .urns/ed res2ondents )ounse+;


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A.ter a )are.u e1auaton o. t/e e1den)e on re)ord, t/e unders!ned re)ommends .or t/e dsmssa o. t/e 2resent )om2ants on t/e .oon! !rounds:

&-da# 2erod /en)e t/ere s no more 2resum2ton o. @noed!e o. t/e nsu..)en)# o. .unds+ A))ordn!#, t/e 5urden s s/.ted u2on t/e)om2anant to 2ro1e t/at at t/e tme t/e )/e)@s ere ssued, t/e draer @ne t/at /e /ad nsu..)ent .unds+ T/ere s no ae!aton mu)/ ess 2roo. to t/at e..e)t+ T/e resut s t/at t/eeement o. @noed!e o. nsu..)en)# o. .unds or )redt s not 2resent, t/ere.ore t/e )rme does not e(st+;$%=

On t/e ae!ed .aure o. res2ondent to a22ear durn! t/e /earn! o. I+S+ No+ %&&&-G-%%&'- and /s .aure to 2resent t/e or!na o. t/e )/e)@s su58e)t t/ereo., t/e# 5en! t/en n t/e2ossesson o. )om2anant /o as a5road at t/at tme:;$$=Su)/ .aure to 2resent t/e or!na o. t/e )/e)@s )annot soe# 5e attr5uted to res2ondent, .or s/e /erse. as !ut# o. ne!e)t+;$=

As .or t/e ae!ed )om2uson n t/e settement o. /er to )om2ants .or 1oaton o. 0+P+ 0!+ %% n a))ordan)e t/ t/e terms d)tated 5# t/e t/eren res2ondents 6ona Lsa San "uan andEa5et/ C/an On!, u2on t/e 2romse o. res2ondent t/at /e oud a1e t/e


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9ERNANDO 6ARTIN O+ PENA, A+C+ No+ '%>Com2anant, ;9ormer# C0D Case No+ &?-


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R S O L U T I O "

TINGA,J.:

In t/s admnstrat1e )om2ant, a a#er s )/ar!ed t/ 1oaton o. Rue +&< o. Canon o. t/e Code o. Pro.essona Res2ons5t# .or rtn! a demand etter t/e )ontents o. /)/t/reatened )om2anant t/ t/e .n! o. )rmna )ases .or ta( e1ason and .as.)aton o. do)uments+

Att#+ Loto G+ A2ar)o 3res2ondent4 a22eared as e!a )ounse .or Gra)e C+ 7u.ana n an e!a dsmssa )ase 5e.ore t/e Natona La5or Reatons Commsson 3NLRC4+ Sometme nAu!ust %&&?, )om2anant 9ernando 6artn O+ Pena, as Presdent o. 6O9 Com2an#, In)+ 3Su5)4, re)e1ed a not)e .rom t/e Con)aton and 6edaton Center o. t/e NLRC .or amedaton)on)aton )on.eren)e+ In t/e )on.eren)e, res2ondent, n 5e/a. o. /s )ent, su5mtted a )am .or se2araton 2a# arsn! .rom /er ae!ed e!a dsmssa+ Com2anant re8e)ted t/e )amas 5en! 5aseess+ Com2anant t/erea.ter sent not)es to 7u.ana .or t/e atter to e(2an /er a5sen)es and to return to or@+ In re2# to t/s return to or@ not)e, res2ondent rote a etter to)om2anant reteratn! /s )ents )am .or se2araton 2a#+ T/e etter aso )ontaned t/e .oon! t/reat to t/e )om2an#:

>UT . t/ese are not 2ad on Au/ust &3, 0332, e 5e )onstraned to .e and )am 5!!er amounts n)udn! mora dama!es to t/e tune o. mons under esta5s/ed2re)eden)e o. )ases and as+ In addton to ot/er mut2e )/ar!es @e:

reurn! a )ert.)ate a!anst .orum s/o22n! and, a))ordn!#, re)ommended t/e dsmssa o. t/e )om2ant a!anst res2ondent+ On %M 6a# %&&M, t/e I0P 0oard o. Go1ernors ado2ted anda22ro1ed t/e Re2ort and Re)ommendaton o. t/e In1est!atn! Commssoner+ ;=On


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0ased on t/e re)ords, t/ere s trut/ to )om2anants asserton t/at /e .ed /s 2oston 2a2er on %< De)em5er %&&?, a.ter ser1n! a )o2# o. t/e same to res2ondent+ T/e I0P stam2 on t/e.ront 2a!e o. sad do)ument s/os t/at t as re)e1ed 5# t/e I0P on %< De)em5er %&&?+ T/e re!str# re)e2t atta)/ed to t/e same do)ument aso s/os t/at t as sent 5# re!stered ma tores2ondent on t/e same date+;, ssued 5# t/s Court .or e1er# 2etton .ed t/ t/e Court

or t/e Court o. A22eas+ Admnstrat1e Cr)uar No+ &->, made e..e)t1e on < A2r >, e(2anded t/e )ert.)aton reurement to n)ude )ases .ed n )ourts and uas-8ud)a a!en)es 5eot/s Court and t/e Court o. A22eas+ Utmate#, t/e Court ado2ted 2ara!ra2/s 3 to 5e)ome Se)ton ?, Rue ' o. t/e >' Rues o. C1 Pro)edure+;


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9na#, t/e ntrns) mert o. )om2anants )ase a!anst res2ondent 8ust.es t/e !rant o. t/e 2resent 2etton+ Res2ondent does not den# aut/ors/2 o. t/e t/reatenn! etter to )om2anant,e1en s2rted# )ontestn! t/e )/ar!e t/at t/e etter s unet/)a+

Canon o. t/e Code o. Pro.essona Res2ons5t# states t/at a a#er s/a re2resent /s )ent t/ ea t/n t/e 5ounds o. t/e a,J remndn! e!a 2ra)ttoners t/at a a#ers dut#

s not to /s )ent 5ut to t/e admnstraton o. 8ust)eK to t/at end, /s )ents su))ess s /o# su5ordnateK and /s )ondu)t ou!/t to and must aa#s 5e s)ru2uous# o5ser1ant o. a and et/)s+;%=In 2art)uar, Rue +&< )ommands t/at a a#er s/a em2o# on# .ar and /onest means to attan t/e a.u o58e)t1es o. /s )ent and s/a not 2resent, 2art)2ate n 2resentn! or t/reaten to2resent un.ounded )rmna )/ar!es to o5tan an m2ro2er ad1anta!e n an# )ase or 2ro)eedn!+J Under t/s Rue, a a#er s/oud not .e or t/reaten to .e an# un.ounded or 5aseess )rmna )ase or)ases a!anst t/e ad1ersares o. /s )ent des!ned to se)ure a e1era!e to )om2e t/e ad1ersares to #ed or t/dra t/er on )ases a!anst t/e a#ers )ent+ ;%?=

In t/e )ase at 5ar, res2ondent dd e(a)t# /at Canon and ts Rue 2ros)r5e+ T/rou!/ /s etter, /e t/reatened )om2anant t/at s/oud t/e atter .a to 2a# t/e amounts t/e# 2ro2ose as

settement, /e oud .e and )am 5!!er amounts n)udn! mora dama!es, as e as mut2e )/ar!es su)/ as ta( e1ason, .as.)aton o. do)uments, and )an)eaton o. 5usness )ense to o2eratedue to 1oatons o. as+ T/e t/reats are not on# unet/)a .or 1oatn! Canon , 5ut t/e# aso amount to 5a)@ma+

0a)@ma s t/e e(torton o. mone# .rom a 2erson 5# t/reats o. a))usaton or e(2osure or o22oston n t/e 2u5) 2rnts,Ho5tann! o. 1aue .rom a 2erson as a )ondton o. re.rann!

.rom ma@n! an a))usaton a!anst /m, or ds)osn! some se)ret )a)uated to o2erate to /s 2re8ud)e+J In )ommon 2aran)e and n !enera a))e2taton, t s eu1aent to and s#non#mous t/e(torton, t/e e(a)ton o. mone# et/er .or t/e 2er.orman)e o. a dut#, t/e 2re1enton o. an n8ur#, or t/e e(er)se o. an n.uen)e+ Not n.reuent#, t s e(torted 5# t/reats, or 5# o2eratn! on t/e .earsor t/e )redut#, or 5# 2romses to )on)ea or o..ers to e(2ose t/e ea@nesses, t/e .oes, or t/e )rme o. t/e 1)tm+ ;%M=

In :ps+o9"o9 #. Att9. =a"!t, Jr.,;%'=e /ed t/at ;a=n a))usaton .or 5a)@ma and e(torton s a 1er# serous one /)/, . 2ro2er# su5stantated, oud enta not on# res2ondents

ds5arment .rom t/e 2ra)t)e o. a, 5ut aso a 2oss5e )rmna 2rose)uton+J ;%=B/e t/e res2ondent no9"o9 as e(onerated .or a)@ o. e1den)e, t/e same ma# not 5e sad o. res2ondent n t/e2resent )ase .or /e admts to rtn! t/e o..ens1e etter+

In .a)t, res2ondent does not .nd an#t/n! ron! t/ /at /e rote, dsmssn! t/e same as mere# an a)t o. 2ontn! out mass1e 1oatons o. t/e a 5# t/e ot/er 2art#, and, t/ 5odness,

assertn! t/at a a#er s under o5!aton to te t/e trut/, to re2ort to t/e !o1ernment )ommsson o. o..enses 2uns/a5e 5# t/e State+J;%>=

7e .urt/er asserts t/at t/e rtn! o. demand etters s astandard 2ra)t)e and tradton and t/at our as ao and en)oura!e t/e settement o. ds2utes+

Res2ondents assertons, /oe1er, are mseadn!, .or t s ute o51ous t/at res2ondents t/reat to .e t/e )ases a!anst )om2anant as des!ned to se)ure some e1era!e to )om2e t/eatter to !1e n to /s )ents demands+ It as not res2ondents ntenton to 2ont out )om2anants 1oatons o. t/e a as /e so !aant# )ams+ 9ar .rom t, t/e etter e1en )ontans an m2ed2romse to @ee2 sentJ a5out t/e sad 1oatons . 2a#ment o. t/e )am s made on t/e date nd)ated+

Indeed, t/e rtn! o. demand etters s a standard 2ra)t)e and tradton n t/s 8ursd)ton+ It s usua# done 5# a a#er 2ursuant to t/e 2rn)2a-a!ent reatons/2 t/at /e /as t/ /s

)ent, t/e 2rn)2a+ T/us, n t/e 2er.orman)e o. /s roe as a!ent, t/e a#er ma# 5e tas@ed to en.or)e /s )ents )am and to ta@e a t/e ste2s ne)essar# to )oe)t t, su)/ as rtn! a etter o.demand reurn! 2a#ment t/n a s2e).ed 2erod+ 7oe1er, t/e etter n t/s )ase )ontans more t/an 8ust a sm2e demand to 2a#+ It e1en )ontans a t/reat to .e retaator# )/ar!es a!anst)om2anant /)/ /a1e not/n! to do t/ /s )ents )am .or se2araton 2a#+ T/e etter as o51ous# des!ned to se)ure e1era!e to )om2e )om2anant to #ed to t/er )ams+ Indeed, etters o.t/s nature are de.nte# 2ros)r5ed 5# t/e Code o. Pro.essona Res2ons5t#+

Res2ondent )annot )am t/e san)tuar# 2ro1ded 5# t/e 2r1e!ed )ommun)aton rue under /)/ a 2r1ate )ommun)aton e(e)uted n t/e 2er.orman)e o. a e!a dut# s not a)tona5e+

T/e 2r1e!ed nature o. t/e etter as remo1ed /en res2ondent used t to 5a)@ma )om2anant and e(tort .rom t/e atter )om2an)e t/ t/e demands o. /s )ent+

7oe1er, /e t/e rtn! o. t/e etter ent 5e#ond et/)a standards, e /od t/at ds5arment s too se1ere a 2enat# to 5e m2osed on res2ondent, )onsdern! t/at /e rote t/e same outo. /s o1ereaousness to 2rote)t /s )ents nterests+ A))ordn!#, t/e more a22ro2rate 2enat# s re2rmand+

B7ERE9ORE, 2remses )onsdered, t/e 2etton s !ranted+ T/e %M 6a# %&&M Resouton o. t/e I0P 0oard o. Go1ernors s /ere5# REVERSED and SET ASIDE+ Res2ondent

Att#+ Loto G+ A2ar)o s /ere5# .ound a5e .or 1oaton o. Rue +&< o. Canon o. t/e Code o. Pro.essona Res2ons5t#, and s a))ordn!# meted out t/e 2enat# o. REPRI6AND, t/ t/eSTERN BARNING t/at a re2etton o. t/e same or smar a)t 5e deat t/ more se1ere#+

SO ORDERED+
http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn24http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn24http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn25http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn26http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn27http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn27http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn28http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn28http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn29http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn29http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn24http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn25http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn26http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn27http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn28http://sc.judiciary.gov.ph/jurisprudence/2007/june2007/7298.htm#_ftn29


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>"DICTO HOR"ILLA an# ATTY. !DRICO D. RICA!ORT, complainants, vs. ATTY. R"STO S. SALU"AT, respondent.

R S O L U T I O "

Y"ARS-SA"TIA'O,J.:

On No1em5er %', 0ened)to 7orna and 9eder)o D+ R)a.ort .ed an admnstrat1e )om2ant;


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)ounse o. t/e P/22ne Pu5) S)/oo Tea)/ers Asso)aton 3PPSTA4+ Res2ondents 5rot/er, Aureo S+ Saunat, as a mem5er o. t/e PPSTA 0oard /)/ a22ro1ed res2ondents en!a!ement asretaned )ounse o. PPSTA+

Com2anants, /o are mem5ers o. t/e PPSTA, .ed an ntra-)or2orate )ase a!anst ts mem5ers o. t/e 0oard o. Dre)tors .or t/e terms >%->? and >?->' 5e.ore t/e Se)urtes andE()/an!e Commsson, /)/ as do)@eted as SEC Case No+ &?->'-?M?', and a )om2ant 5e.ore t/e O..)e o. t/e Om5udsman, do)@eted as O60 Case No+ &->'-&M>?, .or una.u s2endn! andt/e under1aued sae o. rea 2ro2ert# o. t/e PPSTA+ Res2ondent entered /s a22earan)e as )ounse .or t/e PPSTA 0oard mem5ers n t/e sad )ases+ Com2anants )ontend t/at res2ondent as !ut#o. )on.)t o. nterest 5e)ause /e as en!a!ed 5# t/e PPSTA, o. /)/ )om2anants ere mem5ers, and as 5en! 2ad out o. ts )or2orate .unds /ere )om2anants /a1e )ontr5uted+ Des2te5en! tod 5# PPSTA mem5ers o. t/e sad )on.)t o. nterest, res2ondent re.used to t/dra /s a22earan)e n t/e sad )ases+

6oreo1er, )om2anants a1er t/at res2ondent 1oated Rue


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B/ere )or2orate dre)tors /a1e )ommtted a 5rea)/ o. trust et/er 5# t/er .rauds, !%tra #iresa)ts, or ne!!en)e, and t/e )or2oraton s una5e or unn! to nsttute sut to remed# t/e ron!,a sto)@/oder ma# sue on 5e/a. o. /mse. and ot/er sto)@/oders and .or t/e 5ene.t o. t/e )or2oraton, to 5rn! a5out a redress o. t/e ron! done dre)t# to t/e )or2oraton and ndre)t# to t/esto)@/oders+;


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30/130


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32/130

ATTY. HCTOR TODOSIO,petitioner, vs. MRCDS "A*A, respondent.

D C I S I O "

M"DO=A,J.(

T/s s a )om2ant .ed a!anst 2ettoner Att#+ 7e)tor Teodoso .or /a1n! ae!ed# re2resented )ents t/ )on.)tn! nterests n 1oaton o. Rue


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B/e t/e )om2ants a!anst t/em ere 2endn! 2remnar# n1est!aton, Es2nosa and Pama /red 2ettoners ser1)es n see@n! t/e annument o. )ertan trust re)e2t a!reements ae!ed#.as.ed 5# Na1a, on t/e 5ass o. /)/ t/e )rmna )om2ants a!anst t/em ere .ed+ As a resut, 2ettoner .ed on 5e/a. o. Es2nosa and Pama C1 Case Nos+ %


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First+ Pettoner 2onts out t/at t/e I0P 0oard ordered /m sus2ended .rom t/e 2ra)t)e o. a t/out statn! t/e .a)ts and t/e a on /)/ ts de)son s 5ased+ On t/e ot/er /and, at/ou!/t/e re2ort o. t/e n1est!atn! )ommssoner )ontans .ndn!s, /er re)ommendaton as .or t/e dsmssa o. t/e )om2ant a!anst 2ettoner .or a)@ o. mert+ Pettoner )ontends t/at e1en t/e)ommssoners re2ort s o. dou5t.u 1adt# sn)e s/e .aed to s)/edue an# /earn! on t/e )ase 5e.ore s/e su5mtted /er re2ort to t/e 0oard o. Go1ernors+;


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Under Canon M o. t/e 2re1ous Canons o. Pro.essona Et/)s, a a#er s deemed to re2resent )on.)tn! nterests /en, n 5e/a. o. one )ent, t s /s dut# to )ontend .or t/at /)/ dut# toanot/er )ent reures /m to o22ose+;


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!LICITAS S. BUIAM>AO, A#m. Case "o. $%31Com2anant, 3C0D Case No+ &


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9rom "une %&&& to "anuar# %&&< , t/e )om2a nan t as t/e 2 res den t and mana!n! d re) to r o . A ed In1es t !a t on 0ureau , In) + 3AI04 , a .am # -oned )or2orat on en!a!ed n 2 ro1 d n! se)ur t# and n1es t !a t on se r1 )es + S/e a1ers t/a t s/e 2 ro)ured t/e e!a se r1 )es o . t/e res2ondent no t on # .o r t/e )or2ora te a . .a r s o . AI0 5u t a so .o r /er 2ersona )ase + Par t )u a r #, t/e res2ondent a) ted as /er )ounse o . re)ord n an e 8e) tment )ase a!a ns t S2ousesSanta!o and 9orta Torro5a .ed 5# /er on %> De)em5er %&&& 5e.ore t/e 6etro2otan Tra Court 36eTC4 o. ParaWaue Ct#, /)/ as do)@eted as C1Case No+


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T/e nature o. t/at reatons/2 s , t/ere.ore, one o. trust and )on.den)e o. t/e /!/est de!ree+ ; > = I t 5e/oo1es a#ers no t on # to @ee2 n1 o a te t/e ) en t s)on. den)e , 5u t a so to a1o d t/e a22earan)e o . t rea)/er# and dou5e -dea n! .o r on # t/en )a n t !an ts 5e en)oura!ed to en t rus t t/e r se) re ts to t/e r a#ers, /)/ s o. 2aramount m2ortan)e n t/e admnstraton o. 8ust)e+ ; < & =

In 5 road te rms , a#ers a re deemed to re2resen t )on. ) t n! n te res ts /en, n 5e/a . o . one ) en t , t s t/e r du t# to )on tend .o r t/a t /)/ du t# toano t/er ) en t reu res t/em to o22ose + ; < < = De1eo2ments n 8u r s2 ruden)e /a1e 2ar t )u a r ed 1ar ous tes ts to de te rmne /et/er a a#ers )ondu) t e s t/ n t/ s 2 ros)r 2 t on + One tes t s /e t/er a a#er s du t#-5ound to . !/ t .o r an ssue o r ) a m n 5e/a . o . one ) en t and , a t t/e same t me , to o22oset/a t ) a m .or t/e o t/er ) en t + ; < % = T/us , . a a#ers a r!ument .o r one ) en t /as to 5e o22osed 5# t/a t same a#er n a r!u n! .o r t/e o t/er ) en t , t/e re sa 1 o a t on o . t/e ru e +

Anot/er tes t o . n)ons s ten)# o. n te res ts s /e t/er t/e a))e2 tan)e o . a ne re a t on oud 2 re1en t t/e .u d s)/ar!e o . t/e a#ers du t# o . und 1 ded . de t# and o#a t# to t/e ) en t o r n1 te sus2 ) on o . un.a t/ .u ness o r dou5e -dea n! n t/e 2er .o rman)e o . t/a t du t# + ; < $ = St ano t/er tes t s/et/er t/e a#er oud 5e )aed u2on n t/e ne reaton to use a!anst a .ormer )ent an# )on.denta n.ormaton a)ured t/ro u! / t/er )onne)ton or2r e1 ou s em2 o#m en t + ; < =

T/e 2ros)r 2 t on a!a ns t re2resen ta t on o . )on. ) t n! n te res ts a22 es to a s tua t on /ere t/e o22os n! 2ar t es a re 2 resen t ) en ts n t/e samea) t on o r n an unre a ted a) t on + I t s o . no moment t/a t t/e a#er oud no t 5e )a ed u2on to )on tend .o r one ) en t t/a t /)/ t/e a#er /as to o22ose.or t/e o t/er ) en t , o r t/a t t/e re oud 5e no o))as on to use t/e )on. den t a n .ormat on a)u red . rom one to t/e d sad1an ta!e o . t/e o t/er as t/e toa) t ons a re /o # unre a ted + I t s enou!/ t/a t t/e o22os n! 2ar t es n one )ase , one o . /om oud ose t/e su t , a re 2 resen t ) en ts and t/e na tu re o r )ondtons o. t/e a#ers res2e)t1e retaners t/ ea)/ o. t/em oud a..e)t t/e 2er.orman)e o. t/e dut# o. und1ded .det# to 5ot/ )ents+ ; < ? =

In t/ s )ase , t s und s2u ted t/a t a t t/e t me t/e res2ondent . ed t/e re2 e1 n )ase on 5e/a . o . AI0 /e as s t t/e )ounse o . re)ord o . t/e

)om2a nan t n t/e 2end n! e 8e) tment )ase + Be do no t sus ta n res2ondents t/eor# t/a t s n)e t/e e 8e) tment )ase and t/e re2 e1 n )ase a re unre a ted )ases. rau!/t t/ d . .e rent s sues , 2a r t es , and su5 8e) t mat te rs , t/e 2 ro/ 5 t on s na22 )a5e + 7 s re2resen ta t on o . o22os n! ) en ts n 5o t/ )ases , t/ou!/u n r e a t ed , o 5 1 o u s # ) o n s t t u t es ) o n . ) t o . n t e re s t o r , a t t / e e a s t , n 1 t e s s u s 2 ) on o . d o u 5 e - de a n ! + B / e t / e r e s 2 o n de n t m a # a s s er t t / a t t / e)om2anant e(2ress# )onsented to /s )ontnued re2resentaton n t/e e8e)tment )ase, t/e res2ondent .aed to s/o t/at /e .u# ds)osed t/e .a)ts to 5ot// s ) en ts and /e .a ed to 2 resen t an# r t ten )onsen t o . t/e )om2a nan t and AI0 as reu red under Rue


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B/ e t/e )om2a nan t a)@s 2ersona t# to ues t on t/e a e!ed )on. ) t o . n te res ts on t/e 2ar t o . t/e res2ondent n se r1 n! 5o t/ se)ur t# a!en) es ,

e )annot 8us t tu rn a 5 nd e#e to res2ondents a) t + I t mus t 5e no ted t/a t t/e 2 ros)r 2 t on a!a ns t re2resen ta t on o . )on. ) t n! n te res ts . nds a22 )a t on/ere t/e )on. ) t n! n te res ts a r se t/ res2e)t to t/e same !enera mat te r /oe1er s !/ t t/e ad1erse n te res t ma# 5e + I t a22 es e1en . t/e )on. ) t2e rt a ns to t/e a # er s 2r 1a te a) t 1 t # or n t/e 2e r .o rma n) e o. a .u n) t on n a no n-2 ro .e ss ona )a 2a ) t #+ ; % $ = In t/e 2ro)ess o. determnn! /et/er t/ere sa )on. ) t o . n te res t , an m2or tan t ) r te r on s 2 ro5a5 t# , no t )e r ta n t#, o . )on. ) t +

Sn)e t/e res2ondent /as .nan)a or 2e)unar# nterest n SESSI, /)/ s en!a!ed n a 5usness )om2etn! t/ /s )ents, and, more m2ortant#,/e o))u2es t/e / !/es t 2os t on n SESSI, one )annot /e 2 en te r ta n n! a dou5t on / s o#a t# to / s ) en t AI0 + T/s @ nd o . s tua t on 2asses t/e se)ondtes t o . )on. ) t o . n te res t , /)/ s /e t/er t/e a))e2 tan)e o . a ne re a t ons/ 2 oud 2 re1en t t/e .u d s)/ar!e o . t/e a#ers du t# o . und 1 ded . de t#

and o#a t# to t/e ) en t o r n1 te sus2 ) on o . un.a t/ .u ness o r dou5e -dea n! n t/e 2er .o rman)e o . t/a t du t# + T/e ) ose re a t ons/ 2 o . t/e ma8or t#s to)@/oders o . 5o t/ )om2anes does no t ne!a te t/e )on. ) t o . n te res t + Ne t/er does / s 2 ro tes ta t on t/a t / s s/are/o d n! n SESSI s a mere 2e55 eamon! t/e sands+J

In 1e o. a o. t/e .ore!on!, e .nd t/e res2ondent !ut# o. serous ms)ondu)t .or re2resentn! )on.)tn! nterests+

9ur t/ermore , t mus t 5e no ted t/a t Re2u5 ) A)t No + ?' , o t/erse @non as t/e Pr i#a te :e c! r i t9 A$ en c9 La * , 2 ro/ 5 t s a 2erson . rom or!an n!or /a1 n! an n te res t n more t/an one se)ur t# a!en)# + 9 rom res2ondents 2os t on 2a2er , t )an 5e )u ed t/a t Leode!ar o uam5ao s t/e 2 res den t andmana!n! d re) to r o . AI0 , /o d n! M& o. t/e ou ts tand n! s/ares K / e / s .our o t/er s 5 n!s /o a re 2ermanent res den ts n t/e Un ted S ta tes on t/ereman n! &+ ; % = T/s 2 ro/ 5 t on no t t/s tand n! , t/e res2ondent o r!an ed SESSI , t/ Leode!ar o s .e and son as ma8or t# s to)@/oders /o d n!a5out '& o. t/e ou ts tand n! s/ares and t/ / m 3 t/e res2ondent4 , a s e as t/e res t o . t/e s to)@/oders , /o d n! mn ma s/ares + ; % ? = In do n! so , t/eres2ondent 1 r tua # a oed Leode!ar o and t/e a t te r s .e to 1 o a te o r ) r)um1ent t/e a 5# /a1 n! an n te res t n more t/an one se)ur t# a!en)#+ I tmus t 5e no ted t/a t n t/e a . . da1 t ; % M = o. Leode!aro s .e , s/e ment oned o. t/e r )on 8u!a 2 ro2er t# + In t/e a5sen)e o . e1 den)e to t/e )on tra r# , t/e

2r o2 er t # re a t on o . Le od e!a r o an d / s .e )a n 5e 2r esu me d to 5e t/a t o. )on 8u!a 2ar tne rs/ 2 o . !a ns K /e n) e, t/e ma 8or t # s/ ares n AI 0 an d SE SSI ar et/e )on 8u!a 2 ro2er t# o . Leode!ar o an d / s .e , t/e re5# 2 a) n! t/emse 1es n 2ossess on o . an n te res t n more t/an one se)ur t# a!en)# n )on t ra1en t ono. R +A + No+ ?'+ T/us , n o r!an n! SESSI , t/e res2ondent 1 o a ted Rue < +&% , Canon < o . t/e Code o. P ro.ess ona Res2ons 5 t#, /)/ mandatesa#ers to 2romote res2e)t .or t/e a and re.ran .rom )ounsen! or a5ettn! a)t1tes amed at de.an)e o. t/e a+

As to t/e re)ommendat on t/a t t/e 2ena t# 5e redu)ed . rom a sus2ens on o . one #ear to a s te rn arn n! , e . nd t/e same to 5e t/ou t 5as s + Beare d s tu r5ed 5# t/e redu) t on made 5# t/e I0P 0oard o . Go1ernors o . t/e 2ena t# re)ommended 5# t/e n1es t !a t n! )ommss oner t/ou t ) ea r # andds t n) t # s ta t n! t/e .a) ts and reasons on /)/ t/a t redu) t on s 5ased +

Se)ton


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+HR!OR, res2ondent A t t# + Nes to r A+ 0am5a s /ere5# /e d 'UILTY o . 1 o a t on o . Rue


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LTICIA 'O"=ALS, A.C. No. 6836

Com2anant,


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Present:

PANGANI0AN, C.J., Chairman,FNARES-SANTIAGO,

- 1ersus - AUSTRIA-6ARTINEZ, CALLE"O, and C7ICO-NAZARIO,JJ+

Promu!ated:ATTY. MARCLI"O CA>UCA"A,

Res2ondent+ "anuar# %$, %&&M

( - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (

R E S O L U T I O N

AUSTRIA-MARTI"=,J.(

0e.ore t/s Court s a )om2ant .ed 5# Let)a Gonaes 3Gonaes4 2ra#n! t/at Att#+ 6ar)eno Ca5u)ana, 3res2ondent4 5e ds5arred .or re2resentn! )on.)tn! nterests+

On "anuar# , %&&, Gonaes .ed a 2etton 5e.ore t/e Inte!rated 0ar o. t/e P/22nes 3I0P4 ae!n! t/at: s/e as t/e )om2anant n a )ase .or sum o. mone# and dama!es .ed 5e.ore t/e6un)2a Tra Court n Ctes 36TCC4 o. Santa!o Ct#, do)@eted as C1 Case No+


43/130

T/e Commsson on 0ar Ds)2ne o. t/e I0P sent to t/e 2artes a Not)e o. 6andator# Con.eren)e dated 6ar)/


44/130

It s res2e)t.u# re)ommended t/at Att#+ 6ar)eno C+ Ca5u)ana, "r+ 35e4 stern# arned and re2rmanded andHad1sed to 5e more )r)ums2e)t and )are.u n a))e2tn!)ases /)/ m!/t resut n )on.)t o. nterests+;%


45/130

As e e(2ounded n t/e re)ent )ase o. !iam"ao #s. am"a,;%=

T/e 2ros)r2ton a!anst re2resentaton o. )on.)tn! nterests a22es to a stuaton /ere t/e o22osn! 2artes are 2resent )ents n t/e same a)ton or n an unreated

a)ton+ It s o. no moment t/at t/e a#er oud not 5e )aed u2on to )ontend .or one )ent t/at /)/ t/e a#er /as to o22ose .or t/e ot/er )ent, or t/at t/ere oud 5e noo))ason to use t/e )on.denta n.ormaton a)ured .rom one to t/e dsad1anta!e o. t/e ot/er as t/e to a)tons are /o# unreated+ It s enou!/ t/at t/e o22osn! 2artes none )ase, one o. /om oud ose t/e sut, are 2resent )ents and t/e nature or )ondtons o. t/e a#ers res2e)t1e retaners t/ ea)/ o. t/em oud a..e)t t/e 2er.orman)e o.t/e dut# o. und1ded .det# to 5ot/ )ents+;%>=

T5e 7laim o: respon#ent t5at t5ere is no 7on:li7t o: interests in t5is 7ase, as t5e 7ivil 7ase 5an#le# 98 t5eir la6 :irm 65ere 'onales is t5e 7omplainant an# t5e 7riminal 7ases :ile# 98

'onales a/ainst t5e 'at75e7o spouses are not relate#, 5as no merit. T5e representation o: opposin/ 7lients in sai# 7ases, t5ou/5 unrelate#, 7onstitutes 7on:li7t o: interests or, at t5e ver8least, invites suspi7ion o: #ou9le-#ealin/ 65i75 t5is Court 7annot allo6.3E

Respon#ent :urt5er ar/ue# t5at it 6as 5is 9rot5er 65o represente# 'onales in t5e 7ivil 7ase an# not 5im, t5us, t5ere 7oul# 9e no 7on:li7t o: interests. +e #o not a/ree. As

respon#ent a#mitte#, it 6as t5eir la6 :irm 65i75 represente# 'onales in t5e 7ivil 7ase. Su75 9ein/ t5e 7ase, t5e rule a/ainst representin/ 7on:li7tin/ interests applies.

As 6e e4plaine# in t5e 7ase o:+ilado vs. avid(&E

H;B=eH )an not san)ton /s ta@n! u2 t/e )ause o. t/e ad1ersar# o. t/e 2art# /o /ad sou!/t and o5taned e!a ad1)e .rom /s .rmK t/s, not ne)essar# to 2re1entan# n8ust)e to t/e 2ant.. 5ut to @ee2 a5o1e re2roa)/ t/e /onor and nte!rt# o. t/e )ourts and o. t/e 5ar+ Bt/out )ondemnn! t/e res2ondents )ondu)t as ds/onest, )orru2t, or

.rauduent, e do 5ee1e t/at u2on t/e admtted .a)ts t s /!/# ne(2edent+ It /ad t/e tenden)# to 5rn! t/e 2ro.esson, o. /)/ /e s a dstn!us/ed mem5er, nto 2u5)dsre2ute and sus2)on and undermne t/e nte!rt# o. 8ust)e+J ;$%=

T5e 7laim o: respon#ent t5at 5e a7te# in /oo# :ait5 an# 6it5 5onest intention 6ill also not e47ulpate 5im as su75 7laim #oes not ren#er t5e pro5i9ition inoperative.E

In t5e same manner, 5is 7laim t5at 5e 7oul# not turn #o6n t5e spouses as no ot5er la68er is 6illin/ to tae t5eir 7ase 7annot prosper as it is settle# t5at 65ile t5ere ma8 9e instan7es65ere la68ers 7annot #e7line representation t5e8 7annot 9e ma#e to la9or un#er 7on:li7t o: interest 9et6een a present 7lient an# a prospe7tive one.E 'rantin/ also t5at t5ere reall8 6asno ot5er la68er 65o 7oul# 5an#le t5e spousesF 7ase ot5er t5an 5im, still 5e s5oul# 5ave o9serve# t5e re@uirements lai# #o6n 98 t5e rules 98 7on:errin/ 6it5 t5e prospe7tive 7lient toas7ertain as soon as pra7ti7a9le 65et5er t5e matter 6oul# involve a 7on:li7t 6it5 anot5er 7lient t5en see t5e 6ritten 7onsent o: all 7on7erne# a:ter a :ull #is7losure o: t5e :a7ts. 2E T5eserespon#ent :aile# to #o t5us e4posin/ 5imsel: to t5e 75ar/e o: #ou9le-#ealin/.

+e note t5e a::i#avit o: #esistan7e :ile# 98 'onales. Ho6ever, 6e are not 9oun# 98 su75 #esistan7e as t5e present 7ase involves pu9li7 interest.$E In#ee#, t5e CourtFs e4er7ise o: itspo6er to tae 7o/nian7e o: a#ministrative 7ases a/ainst la68ers is not :or t5e purpose o: en:or7in/ 7ivil reme#ies 9et6een parties, 9ut to prote7t t5e 7ourt an# t5e pu9li7 a/ainst anattorne8 /uilt8 o: un6ort58 pra7ti7es in 5is pro:ession.%E

In smar )ases /ere t/e res2ondent as .ound !ut# o. re2resentn! )on.)tn! nterests a 2enat# ran!n! .rom one to t/ree #ears sus2enson as m2osed+;$=
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46/130

+e s5all 7onsi#er 5o6ever as miti/atin/ 7ir7umstan7es t5e :a7t t5at 5e is representin/ t5e 'at75e7o spousespro -ono an# t5at it 6as 5is :irm an# not respon#ent personall8, 65i755an#le# t5e 7ivil 7ase o: 'onales. As re7ounte# 98 7omplainant 5ersel:, Att8. #mar Ca9u7ana si/ne# t5e 7ivil 7ase o: 7omplainant 98 statin/ :irst t5e name o: t5e la6 :irm CA>UCA"A,CA>UCA"A, D 'U=MA" A"D CA>UCA"A LA+ O!!IC, un#er 65i75, 5is name an# si/nature appearG 65ile 5erein respon#ent si/ne# t5e plea#in/s :or t5e 'at75e7o spouses onl86it5 5is name,E6it5out an8 mention o: t5e la6 :irm. +e also note t5e o9servation o: t5e I>) Commissioner Re8es t5at t5ere 6as no mali7e an# 9a# :ait5 in respon#entFs a77eptan7e o:t5e 'at75e7osF 7ases as s5o6n 98 t5e move o: 7omplainant to 6it5#ra6 t5e 7ase.

T/us, .or 1oaton o. Rue


47/130

In /er )om2ant, "ose.na 6+ AnWon 3comp%ainant4 reated t/at s/e 2re1ous# en!a!ed t/e e!a ser1)es o. Att#+ Sa5tsana n t/e 2re2araton and e(e)uton n /er .a1or o. a Deed o. Saeo1er a 2ar)e o. and oned 5# /er ate )ommon-a /us5and, 0r!do Cane8a, "r+ Att#+ Sa5tsana ae!ed# 1oated /er )on.den)e /en /e su5seuent# .ed a )1 )ase a!anst /er .or t/eannument o. t/e Deed o. Sae n 5e/a. o. Zenada L+ CaWete, t/e e!a .e o. 0r!do Cane8a, "r+ T/e )om2anant a))used Att#+ Sa5tsana o. usn! t/e )on.denta n.ormaton /e o5taned .rom /ern .n! t/e )1 )ase+

Att#+ Sa5tsana admtted /a1n! ad1sed t/e )om2anant n t/e 2re2araton and e(e)uton o. t/e Deed o. Sae+ 7oe1er, /e dened /a1n! re)e1ed an# )on.denta n.ormaton+ Att#+ Sa5tsanaasserted t/at t/e 2resent ds5arment )om2ant as nst!ated 5# one Att#+ Ga5no Veasue, "r+, t/e notar# o. t/e ds5arment )om2ant /o ost a )ourt )ase a!anst /m 3Att#+ Sa5tsana4 and /adnst!ated t/e )om2ant .or t/s reason+T5e !in#in/s o: t5e I>) Investi/atin/ Commissioner

In our Resouton dated No1em5er %%, >>, e re.erred t/e ds5arment )om2ant to t/e Commsson on 0ar Ds)2ne o. t/e Inte!rated 0ar o. t/e P/22nes 3I0P4 .or n1est!aton, re2ortand re)ommendaton+ In /s Re2ort and Re)ommendaton dated No1em5er %, %&&$, I0P Commssoner Pedro A+ 6a!2a#o "r+ .ound Att#+ Sa5tsana admnstrat1e# a5e .or re2resentn!)on.)tn! nterests+ T/e I0P Commssoner o2ned:

In 0autsta 1s+ 0arros, t as /ed t/at a a#er ma# not /ande a )ase to nu.# a )ontra)t /)/ /e 2re2ared and t/ere5# ta@e u2 n)onsstent 2ostons+ Grantn! t/at Zenada L+CaWete, res2ondents 2resent )ent n C1 Case No+ 0-oar# o: 'overnors

In a resouton dated 9e5ruar# %', %&&, t/e I0P 0oard o. Go1ernors reso1ed to ado2t and a22ro1e t/e Re2ort and Re)ommendaton o. t/e I0P Commssoner a.ter .ndn! t to 5e .u#su22orted 5# t/e e1den)e on re)ord, t/e a22)a5e as and rues+;?=T/e I0P 0oard o. Go1ernors a!reed t/ t/e I0P Commssoners re)ommended 2enat#+

Att#+ Sa5tsana mo1ed to re)onsder t/e a5o1e resouton, 5ut t/e I0P 0oard o. Go1ernors dened /s moton n a resouton dated "u# $&, %&&+

T5e Issue

T/e ssue n t/s )ase s /et/er Att#+ Sa5tsana s !ut# o. ms)ondu)t .or re2resentn! )on.)tn! nterests+T5e CourtFs Rulin/

A:ter a 7are:ul stu#8 o: t5e re7or#s, 6e a/ree 6it5 t5e :in#in/s an# re7ommen#ations o: t5e I>) Commissioner an# t5e I>) >oar# o: 'overnors.

T/e reatons/2 5eteen a a#er and /s/er )ent s/oud dea# 5e m5ued t/ t/e /!/est e1e o. trust and )on.den)e+ T/s s t/e standard o. )on.dentat# t/at must 2re1a to2romote a .u ds)osure o. t/e )ents most )on.denta n.ormaton to /s/er a#er .or an un/am2ered e()/an!e o. n.ormaton 5eteen t/em+ Needess to state, a )ent )an on# entrust)on.denta n.ormaton to /s/er a#er 5ased on an e(2e)taton .rom t/e a#er o. utmost se)re)# and ds)retonK t/e a#er, .or /s 2art, s dut#-5ound to o5ser1e )andor, .arness and o#at# n a
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dean!s and transa)tons t/ t/e )ent+;M= Part o. t/e a#ers dut# n t/s re!ard s to a1od re2resentn! )on.)tn! nterests, a matter )o1ered 5# Rue


49/130

Be .nd no 1oaton o. Att#+ Sa5tsanas due 2ro)ess r!/ts+ At/ou!/ t/ere as ndeed a s2e).) )/ar!e n t/e )om2ant, e are not unmnd.u t/at t/e )om2ant tse. )ontaned

ae!atons o. a)ts su..)ent to )onsttute a 1oaton o. t/e rue on t/e 2ro/5ton a!anst re2resentn! )on.)tn! nterests+ As stated n 2ara!ra2/ o. t/e )om2ant:

Att#+ Sa5tsana, "r+ a))e2ted t/e )ommsson as a La#er o. ZENAIDA CANE"A, no Zenada CaWete, to re)o1er ands .rom Com2anant, n)udn! t/s and /ere a#er Att#+Sa5tsana, "r+ /as ad1sed /s )ent ;)om2anant= to e(e)ute t/e se)ond sae;+=

Interestn!#, Att#+ Sa5tsana e1en admtted t/ese ae!atons n /s anser+;


50/130


51/130


52/130

A.M. "o. 0& April &3, &1

CLDO"IO BUIL>A", ROMUALDO DALA'A", !ORTU"ATO RAMIR= AMADOR ALARCO" an# LUIS A'A+A", )om2anant,1s+ATTY. SA"TIA'O R. RO>I"OL,res2ondent+

A.M. "o. 0&13 April &3, &1

ATTY. SA"TIA'O R. RO>I"OL, )om2anant,1s+ATTY. A. R. MO"TMAYOR, res2ondent+

R E S O L U T I O N

)R CURIAM


53/130

)R CURIAM(

Su58e)ted to .rustratons ere t/e dreams o. t/rt#-to 3$%4 suatter .ames to on t/e and o. a22ro(mate# ?& suare meters ea)/ on /)/ t/er res2e)t1e /omes ere 5ut+ To 1nd)ate t/err!/ts t/e# /a1e ared t/er 2!/t 5e.ore t/s Court+ T/arted, too, as t/e 5ene1oen)e s/on 5# t/e or!na oner o. t/e and /)/ 2arted t/ ts 2ro2ert# at a !1eaa# 2r)e t/n@n! t/at t asa))ommodatn! t/e andess suatters+

T/e ante)edent .a)ts .oo:

T/e Coe!o de San "ose, a "esut )or2oraton, 3Coe!o, .or s/ort4 used to on a 2ar)e o. and at t/e Semnar# Road, 0arro 0at/aa, ueon Ct#+ T/rou!/ ts admnstrator, 9at/er 9eder)o Es)aer,

t sod sad and to t/e ueon Ct# Go1ernment as t/e ste .or t/e ueon Ct# Genera 7os2ta 5ut reser1ed an area o. %,'$ suare meters as a 2oss5e de1eo2ment ste+ Suatters, /oe1er,setted n t/e area sn)e M? or MM+

Sometme n '&, t/e Coe!o, t/rou!/ 9at/er Es)aer !a1e 2ermsson to Con!ressman Lus R+ Taru) to 5ud on t/e reser1ed ste a /ouse .or /s resden)e and a trann! )enter .or t/e C/rstanSo)a 6o1ement+ Seen! t/e )roded s/antes o. suatters, Con!ressman Taru) 5roa)/ed to 9at/er Es)aer t/e Idea o. donatn! or sen! t/e and )/ea2 to t/e suatters+ Con!ressman Taru) t/enad1sed t/e suatters to .orm an or!anaton and )/oose a eader aut/ored to ne!otate t/ 9at/er Es)aer+ 9oon! t/at ad1)e, t/e suatters .ormed t/e Sama/an! Pa!@a@asa n! 0arro0at/aa 3Sama/an, .or 5re1t#4, t/ 0erna5e 6artn as Presdent 3E(/5t %, Ro5no4, /o as entrusted t/ t/e tas@ o. ne!otatn! on t/er 5e/a. .or t/e sae o. t/e and to t/em+

0ut nstead o. or@n! .or t/e e.are o. t/e Sama/an, 6artn ent to one 6a(mo R1era, a reator, t/ /om /e )onn1ed to o5tan t/e sae to t/e e()uson o. t/e ot/er Sama/an mem5ers+ On %6ar)/ '


54/130

t t . . d t 5 Att R 5 t/ t . / t t d d .t t/ C t . A D C C N


55/130

)ontn!ent .ee re.erred to 5# Att#+ Ro5no as t/e resut o. /s nsstent demand a.ter t/e Court o. A22eas De)son n C1 Case No+ -


56/130

Ine1ta5e, t/ere.ore, s t/e )on)uson t/at Att#+ Ro5no /as rendered /mse. un.t to )ontnue n t/e 2ra)t)e o. a+ 7e /as not on# 1oated /s oat/ not to dea# an# man .or mone# and to )ondu)t/mse. t/ a !ood .det# to /s )ents+ 7e /as aso 5rou!/t t/e 2ro.esson nto dsre2ute t/ 2eo2e /o /ad re2osed n t .u .at/ and rean)e .or t/e .u.ment o. a .e-tme am5ton toa)ure a /omeot t/e# )oud )a t/er on+

Re Att9. Anac%eto R. Montema9or

In so .ar as Att#+ 6ontema#or s )on)erned, e a!ree t/ t/e .ndn!s o. t/e So)tor Genera t/at /e /as not e(2osed /mse. to an# 2aus5e )/ar!e o. unet/)a )ondu)t n t/e e(er)se o. /s2ro.esson /en /e a!reed to ser1e as )ounse .or t/e 2ant..s n C1 Case No+ -


57/130


58/130


59/130

A.C. "o. 033. Mar75 , &1E

IMLDA A. "A)IL, complainant, vs. ATTY. CARLOS J. *ALDS, respondent.

D C I S I O "

)U"O,J.(

T/e .rends/2 o. "OSE NAPIL and res2ondent CARLOS "+ VALDES dates 5a)@ to t/e ?&s durn! t/er s)/ooda#s n De La Sae and t/e P/22ne La S)/oo+ T/er )oseness e(tended tot/er .ames and res2ondent 5e)ame t/e 5usness )onsutant, a#er and a))ountant o. t/e Na@2s+

In M?, "ose Na@2 5e)ame nterested n 2ur)/asn! a summer resden)e n 6oran Street, 0a!uo Ct#+ ;, 'M, res2ondents a .rm, Caros "+ Vades X Asso)ates, /anded t/e 2ro)eedn! .or t/e settement o. "oses estate+ Com2anant as a22onted as admnstrat( o. t/e

estate+

T/e oners/2 o. t/e 6oran 2ro2ert# 5e)ame an ssue n t/e ntestate 2ro)eedn!s+ It a22ears t/at res2ondent e()uded t/e 6oran 2ro2ert# .rom t/e n1entor# o. "oses estate+ On 9e5ruar# , )om2anant sou!/t to re)o1er t/e 6oran 2ro2ert# 5# .n! t/ t/e t/en Court o. 9rst Instan)e 3C9I4 o. 0a!uo Ct# an a)ton .or re)on1e#an)e t/ dama!es a!anstres2ondent and /s )or2oraton+ In de.ense, res2ondent )amed a5soute oners/2 o1er t/e 2ro2ert# and dened t/at a trust as )reated o1er t+

Durn! t/e 2enden)# o. t/e a)ton .or re)on1e#an)e, )om2anant .ed t/s admnstrat1e )ase to ds5ar t/e res2ondent+ S/e )/ar!ed t/at res2ondent 1oated 2ro.essona et/)s /en /e:

I+ Ass!ned to /s .am# )or2oraton t/e 6oran 2ro2ert# 3P!%on$ Ma!%ap4 /)/ 5eon!ed to t/e estate /e as settn! as ts a#er and audtor+

II+ E()uded t/e 6oran 2ro2ert# .rom t/e n1entor# o. rea estate 2ro2ertes /e 2re2ared .or a )ent-estate and, at t/e same tme, )/ar!ed t/e oan se)ured to 2ur)/ase t/e sad
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II+ E()uded t/e 6oran 2ro2ert# .rom t/e n1entor# o. rea estate 2ro2ertes /e 2re2ared .or a )ent estate and, at t/e same tme, )/ar!ed t/e oan se)ured to 2ur)/ase t/e sade()uded 2ro2ert# as a a5t# o. t/e estate, a .or t/e 2ur2ose o. trans.errn! t/e tte to t/e sad 2ro2ert# to /s .am# )or2oraton+

III+ Pre2ared and de.ended monetar# )ams a!anst t/e estate t/at retaned /m as ts )ounse and audtor+;%=

On t/e .rst )/ar!e, )om2anant ae!ed t/at s/e a))e2ted res2ondents o..er to ser1e as a#er and audtor to sette /er /us5ands estate+ Res2ondents a .rm t/en .ed a 2etton .orsettement o. t/e estate o. t/e de)eased Na@2 5ut dd not n)ude t/e 6oran 2ro2ert# n t/e estates n1entor#+ Instead, res2ondent trans.erred t/e 2ro2ert# to /s )or2oraton, Ca1a Reat#Cor2oraton, and tte as ssued n ts name+ Com2anant a))used res2ondent o. ma)ous# a22ro2ratn! t/e 2ro2ert# n trust @non! t/at t dd not 5eon! to /m+ S/e )amed t/at res2ondent /ase(2ress# a)@noed!ed t/at t/e sad 2ro2ert# 5eon!ed to t/e ate Na@2 n /s )orres2onden)es;$=t/ t/e 0a!uo Ct# Treasurer and t/e )om2anant+

On t/e se)ond )/ar!e, )om2anant ae!ed t/at res2ondents audtn! .rm 3C+ "+ Vades and Co+, CPAs4 e()uded t/e 6oran 2ro2ert# .rom t/e n1entor# o. /er /us5ands estate, #et n)uded nt/e )ams a!anst t/e estate t/e amounts o. PM?,&&&+&& and P'?,&&&+&&, /)/ res2ondent re2resented as /er /us5ands oans a22ed 2ro5a5# .or t/e 2ur)/ase o. a /ouse and ot n 6oran Street,0a!uo Ct#+J

As to t/e t/rd )/ar!e, )om2anant ae!ed t/at res2ondents a .rm 3Caros "+ Vades and Asso)ates4 .ed t/e 2etton .or t/e settement o. /er /us5ands estate n )ourt, /e res2ondentsaudtn! .rm 3C+ "+ Vades X Co+, CPAs4 a)ted as a))ountant o. 5ot/ t/e estate and to o. ts )redtors+ S/e )amed t/at res2ondent re2resented )on.)tn! nterests /en /s a))ountn! .rm 2re2aredt/e st o. )ams o. )redtors An!e Na@2 and ENORN, In)+ a!anst /er /us5ands estate /)/ as re2resented 5# res2ondents a .rm+ Com2anant a1erred t/at t/ere s no dstn)ton 5eteenres2ondents a and audtn! .rms as res2ondent s t/e senor and )ontron! 2artner o. 5ot/ .rms /)/ are /oused n t/e same 5udn!+

Be reured res2ondent to anser t/e )/ar!es a!anst /m+ In /sANSBER,;=res2ondent nta# asserted t/at t/e resouton o. t/e .rst and se)ond )/ar!es a!anst /m de2ended on t/e resuto. t/e 2endn! a)ton n t/e C9I .or re)on1e#an)e /)/ n1o1ed t/e ssue o. oners/2 o. t/e 6oran 2ro2ert#+

On t/e mert o. t/e .rst )/ar!e, res2ondent reterated /s de.ense n t/e re)on1e#an)e )ase t/at /e dd not /od t/e 6oran 2ro2ert# n trust .or t/e Na@2s as /e s ts a5soute oner+ Res2ondente(2aned t/at t/e Na@2s ne1er 5ou!/t 5a)@ t/e 6oran 2ro2ert# .rom /m, /en)e, t/e 2ro2ert# remaned to 5e /s and as r!/t# e()uded .rom t/e n1entor# o. Na@2s estate+

As to t/e se)ond )/ar!e, res2ondent dened 2re2arn! t/e st o. )ams a!anst t/e estate /)/ n)uded /s oans o. PM?,&&&+&& and P'?,&&&+&& .or t/e 2ur)/ase and reno1aton o. t/e 6oran2ro2ert#+ In )/ar!n! /s oans a!anst t/e estate, /e stressed t/at t/e st dran u2 5# /s a))ountn! .rm mere# stated t/at t/e oans n res2ondents name ere a22ed 2ro5a5# .or t/e 2ur)/ase o.t/e /ouse and ot n 6oran Street, 0a!uo Ct#+J Res2ondent nssted t/at t/s as not an admsson t/at t/e Na@2s oned t/e 2ro2ert# as t/e 2/rase 2ro5a5# .or t/e 2ur)/aseJ dd not m2# a)onsummated transa)ton 5ut a 2ro8e)ted a)uston+

Res2ondent aso ds)amed @noed!e or 2r1t# n t/e 2re2araton o. a etter 3E(/5t 7J4 o. /s a))ountn! .rm to t/e 0a!uo Ct# treasurer remttn! t/e rea estate ta(es .or t/e 6oran2ro2ert# on 5e/a. o. t/e Na@2s+ 7e )ontended t/at t/e etter )oud 5e a mere error or o1ers!/t+

Res2ondent a1erred t/at t as )om2anant /o a)@noed!ed t/at t/e# dd not on t/e 6oran 2ro2ert# .or: 3


61/130

2 , 2 2 # ! ! 2 , # ! 22re8ud)e to t/e estate+ 9ourt/, t/e or@ o. Caros "+ Vades and Co+ as )ommon audtor redounded to t/e 5ene.t o. t/e estate .or t/e .rm 2re2ared a true and a))urate amount o. t/e )am+ 9.t/,res2ondent res!ned .rom /s a and a))ountn! .rms as ear# as Au!ust


62/130

#, 2 # ! 2 2t/e 2ro2ert# o. /s )ent+

As a rue, a a#er s not 5arred .rom dean! t/ /s )ent 5ut t/e 5usness transa)ton must 5e )/ara)tered t/ utmost /onest# and !ood .at/+ ;


63/130

2 ! ! ! # # 2t/e 2ur)/ase and reno1aton o. t/e 2ro2ert# /)/ /e )amed .or /mse.+ Res2ondent see@s to e()u2ate /mse. .rom t/s )/ar!e 5# ds)amn! @noed!e or 2r1t# n t/e 2re2araton o. t/e st o.t/e estates a5tes+ 7e t/eores t/at t/e n)uson o. t/e oans must /a1e 5een a mere error or o1ers!/t o. /s a))ountn! .rm+ It s )ear t/at t/e n.ormaton as to /o t/ese to oans s/oud 5etreated )oud /a1e on# )ome .rom res2ondent /mse. as t/e sad oans ere n /s name+ 7en)e, t/e su22osed error o. t/e a))ountn! .rm n )/ar!n! res2ondents oans a!anst t/e estate )oud not/a1e 5een )ommtted t/out res2ondents 2art)2aton+ Res2ondent anted to /a1e /s )a@e and eat t tooJ and su5ordnated t/e nterest o. /s )ent to /s on 2e)unar# !an+ Res2ondent 1oatedCanon


64/130

2ra)t)e o. a+

Pu5) )on.den)e n a and a#ers ma# 5e eroded 5# t/e rres2ons5e and m2ro2er )ondu)t o. a mem5er o. t/e 5ar+ T/us, a a#er s/oud determne /s )ondu)t 5# a)tn! n a manner t/atoud 2romote 2u5) )on.den)e n t/e nte!rt# o. t/e e!a 2ro.esson+ 6em5ers o. t/e 5ar are e(2e)ted to aa#s 1e u2 to t/e standards em5oded n t/e Code o. Pro.essona Res2ons5t# as t/ereatons/2 5eteen an attorne# and /s )ent s /!/# .du)ar# n nature and demands utmost .det# and !ood .at/+ ;%=In t/e )ase at 5ar, res2ondent e(/5ted ess t/an .u .det# to /s dut# too5ser1e )andor, .arness and o#at# n /s dean!s and transa)tons t/ /s )ents+;%>=

I" *I+ +HRO!, t/e Court .nds res2ondent ATTF+ CARLOS "+ VALDES !ut# o. ms)ondu)t+ 7e s sus2ended .rom t/e 2ra)t)e o. a .or a 2erod o. one 3


65/130


66/130

A.C. "o. 202. Mar75 00, 0333E

!R"A"DO C. CRU= A"D AMLIA CRU=, complainants, vs. ATTY. R"STO C. JACI"TO, respondents.Juris

R S O L U T I O "

MLO,J.(

In t/er sorn )om2ant, s2ouses 9ernando C+ Cru and Amea 6anm5o Cru see@ t/e ds5arment o. Att#+ Ernesto C+ "a)nto+ T/e Inte!rated 0ar o. t/e P/22nes, t/rou!/ Commssoner "esutoA+ 6anao o. t/e Commssoner on 0ar ds)2ne, )ondu)ted an n1est!aton+ T/erea.ter, /e su5mtted /s 9ndn!s and Re)ommendaton, t/us#:

T/s s a ds5arment )ase .ed 5# t/e s2ouses 9ernando and Amea Cru a!anst Att#+ Ernesto C+ "a)nto+ T/s )ase as .ed t/ t/e Commsson on 0ar Ds)2ne ast $&"anuar# >


67/130

ueon Ct# u2on t/e nstru)ton o. Att#+ "a)nto+ T/s as done to ma@e t a22ear t/at t/e rea estate mort!a!e as re!stered and t/e annotaton to a22ear at t/e 5a)@ o. t/e TCTas an en)um5ran)e+

On ', a )ase .or Esta.a t/ru 9as.)aton o. Pu5) do)uments under Art+ $


68/130

t/e a..da1ts o. 1ountar# desstan)e and ut)am e(e)uted 5# t/em n t/e )rmna )ase .ed a!anst /m+ N)mms

T/e asserton must ne)essar# .a+ T/e 2ra)t)e o. a s so ntmate# a..e)ted t/ 2u5) nterest t/at t s 5ot/ a r!/t and a dut# o. t/e State to )ontro and re!uate t n order to 2romote t/e 2u5)e.are+ T/e Consttuton 1ests t/s 2oer o. )ontro and re!uaton n t/s Court+ Sn)e t/e 2ra)t)e o. a s nse2ara5# )onne)ted t/ t/e e(er)se o. ts 8ud)a 2oer n admnstraton o. 8ust)e,t/e Court )annot 5e d1ested o. ts )onsttutona# ordaned 2rero!at1e /)/ n)udes t/e aut/ort# to ds)2ne, sus2end or ds5ar an# un.t and unort/# mem5er o. t/e 0ar 5# a mere e(e)uton o.a..da1ts o. 1ountar# desstan)e and ut)am 32ar+ ;?=, Se)+ ?, ' Consttuton4+

A a#er ma# 5e ds)2ned or sus2ended .or an# ms)ondu)t, /et/er n /s 2ro.essona or 2r1ate )a2a)t#, /)/ s/os /m to 5e antn! n mora )/ara)ter, n /onest#, n 2ro5t# and !ood

demeanor, t/us rendern! unort/# to )ontnue as an o..)er o. t/e )ourt 36a!sa 1s+ Ca5antn!, %'% SCRA & ;>'=4, and t/e )om2anants /o )aed t/e attenton o. t/e Court to t/e attorne#sae!ed ms)ondu)t are n no sense a 2art#, and /a1e !enera# no nterest n t/e out)ome e()e2t as a !ood )tens ma# /a1e n t/e 2ro2er admnstraton o. 8ust)e 3Ra#os-Om5a) 1s+ Ra#os, %?SCRA >$ ;>=4+

Undena5#, res2ondent re2resented )om2anants n t/e oan transa)ton+ 0# /s on admsson, /e as t/e one /o ne!otated t/ t/e 5orroer, /s on!-tme .rend and a .ormer )ent+ 7e a)tednot mere# as an a!ent 5ut as a a#er o. )om2ants, t/us, t/e e(e)uton o. t/e rea estate mort!a!e )ontra)t, as e as ts re!straton and annotaton on t/e tte ere entrusted to /m+ In .a)t,res2ondent e1en re)e1ed /s s/are n t/e nterest earnn!s /)/ )om2anants reaed .rom t/e transa)ton+ 7s re.usa to re)o!ne an# ron!don! or )areessness 5# )amn! t/at /e s @ese a1)tm /en t as s/on t/at t/e tt e to t/e 2ro2ert#, t/e re!straton o. t/e rea estate mort!a!e )ontra)t, and t/e annotaton t/ereon ere a .e!ned, not at a e(onerate /m+ S)n)m

As a rue, a a#er s not 5arred .rom dean! t/ /s )ent 5ut t/e 5usness transa)ton must 5e )/ara)tered t/ utmost /onest# and !ood .at/+ 7oe1er, t/e measure o. !ood .at/ /)/ anattorne# s reured to e(er)se n /s dean!s t/ t/s )ent s a mu)/ /!/er standard t/an s reured n 5usness dean!s /ere t/e 2artes trade at arms en!t/+ 0usness transa)tons 5eteen anattorne# and /s )ent are ds.a1ored and ds)oura!ed 5# t/e 2o)# o. t/e a+ 7en)e, )ourts )are.u# at)/ t/ese transa)tons to 5e sure t/at no ad1anta!e s ta@en 5# a a#er o1er /s )ent+ T/s

rue s .ounded on 2u5) 2o)# .or, 5# 1rtue o. /s o..)e, an attorne# s n an eas# 2oston to ta@e ad1anta!e o. t/e )redut# and !noran)e o. /s )ent+ T/us, no 2resum2ton o. nno)en)e orm2ro5a5t# o. ron!don! s )onsdered n an attorne#s .a1or 3Na@2t 1s+ Vades, %M SCRA '? ;>=4+ 9urt/er, /s .det# to t/e )ause o. /s )ent reures /m to 5e e1ermnd.u o. t/eres2ons5tes t/at s/oud 5e e(2e)ted o. /m+

Ver#, a a#er ma# not, t/out 5en! !ut# o. 2ro.essona ms)ondu)t, a)t as )ounse .or a 2erson /ose nterest )on.)ts t/ t/at o. /s .ormer )ent+ T/e reason .or t/e 2ro/5ton s .ound nt/e reaton o. attorne# and )ent, /)/ s one o. trust and )on.den)e at t/e /!/est de!ree 36aturan 1s+ Gonaes, %' SCRA >$ ;>=4+ Sdaamso

Res2ondent utter# .aed to 2er.orm /s dutes and res2ons5tes .at/.u# and e as to 2rote)t t/e r!/ts and nterests o. /s )ents and 5# /s de)et.u a)tuatons )onsttutn! 1oatons o. t/eCode o. Pro.essona Res2ons5tes must 5e su58e)ted to ds)2nar# measures .or /s on !ood, as e as .or t/e !ood o. t/e entre mem5ers/2 o. t/e 0ar as a /oe+

+HR!OR, t/e Court /ere5# ado2ts t/e resouton o. t/e 0oard o. Go1ernors o. t/e Inte!rated 0ar o. t/e P/22nes and orders res2ondent Att#+ Ernesto C+ "a)nto sus2ended .rom t/e 2ra)t)eo. a .or s( 3M4 mont/s t/ t/e arnn! t/at a re2etton o. t/e same or smar o..ense 5e deat t/ more se1ere#+ Sdaad

SO ORDRD.


69/130


70/130

ROSAURA ). CORDO", complainant, vs. JSUS >ALICA"TA, respondent.

R S O L U T I O "

ER C!R#A1(

On Au!ust %


71/130

t/ a 5eaut.u 2ent/ouse .or )om2anant+ Re#n! on t/ese a22arent# sn)ere 2ro2osas, )om2anant and /er dau!/ter ass!ned 2ar)es o. and to Rosaura Enter2rses, In)or2orated, a ne#-.ormed and du# re!stered )or2oraton n /)/ t/e# assumed ma8ort# oners/2+ T/e su58e)t 2ar)es o. and ere t/en re!stered n t/e name o. t/e )or2oraton+

T/erea.ter, res2ondent sn!e-/anded# ran t/e a..ars o. t/e )or2oraton n /s )a2a)t# as C/arman o. t/e 0oard, Presdent, Genera 6ana!er and Treasurer+ T/e res2ondent aso made)om2anant s!n a do)ument /)/ turned out to 5e a 1otn! trust a!reement+ Res2ondent @ese su))eeded n ma@n! )om2anant s!n a s2e)a 2oer o. attorne# to se and mort!a!e some o.t/e 2ar)es o. and s/e n/erted .rom /er de)eased /us5and+ S/e ater ds)o1ered t/at res2ondent trans.erred t/e ttes o. t/e 2ro2ertes to a )ertan Ton Su# On! /o 5e)ame t/e ne re!steredoner t/ereo.+ Res2ondent ne1er a))ounted .or t/e 2ro)eeds o. sad trans.ers+

In o. t/e rea 2ro2ertes t/at t/e )om2anant and /er dau!/ter )ontr5uted to t/e )or2oraton+ T/e res2ondent ostens5# ntended to use t/e mone# to )onstru)t t/e0aasan Commer)a Center 30CC, .or 5re1t#4+ Com2anant ater on .ound out t/at t/e stru)ture as made o. 2oor materas su)/ as sa*a%i, )o)o um5er and 5am5oo /)/ )oud not /a1e )ostt/e )or2oraton an#t/n! )ose to t/e amount o. t/e oan se)ured+

9or .our #ears .rom t/e tme t/e de5t as )ontra)ted, res2ondent .aed to 2a# e1en a sn!e nstament+ As a resut, t/e L0P, n a etter dated 6a# %%, ?, n.ormed res2ondent t/at t/e 2astdue amortatons and nterest /ad aread# a))umuated to Se1en 7undred Tent#-nne T/ousand 91e 7undred T/ree Pesos and Tent#-.1e Centa1os 3P'%>,?&$+%?4+ T/e L0P made a demand onres2ondent .or 2a#ment .or t/e tent/ tme+ 6ean/e, /en t/e 0CC )ommen)ed ts o2eratons, res2ondent started to earn re1enues .rom t/e rentas o. 0CCs tenants+ On O)to5er %, ', t/e L0P.ore)osed on t/e > mort!a!ed 2ro2ertes due to non-2a#ment o. t/e oan+

Res2ondent dd not e(ert an# e..ort to redeem t/e .ore)osed 2ro2ertes+ Borse, /e sod t/e )or2oratons r!/t to redeem t/e mort!a!ed 2ro2ertes to a )ertan 7ad8 6a/mud "amman! t/rou!/a .a@e 5oard resouton dated "anuar# /)/ )ot/ed /mse. t/ t/e aut/ort# to do so+ Com2anant and /er dau!/ter, t/e ma8ort# sto)@/oders, ere ne1er n.ormed o. t/e ae!ed

meetn! /ed on t/at date+ A!an, res2ondent ne1er a))ounted .or t/e 2ro)eeds o. t/e sae o. t/e r!/t to redeem+ Res2ondent aso sod to "amman! a 2ar)e o. and 5eon!n! to )om2anant and /erdau!/ter /)/ as )ont!uous to t/e .ore)osed 2ro2ertes and e1den)ed 5# Trans.er Cert.)ate o. Tte No+ M%&'+ 7e ne1er a))ounted .or t/e 2ro)eeds o. t/e sae+

Sometme n $, )om2anants dau!/ter, Rosemare, ds)o1ered t/at t/er an)estra /ome /ad 5een demos/ed and t/at /er mot/er, /eren )om2anant, as 5en! detaned n a sma n2as/a)@ n a 2a)e )aed Cuanan+ T/rou!/ t/e /e2 o. Att#+ Lnda Lm, Rosemare as a5e to o)ate /er mot/er+ Rosemare ater earned t/at res2ondent too@ )om2anant aa# .rom /er /ouse ont/e 2rete(t t/at sad an)estra /ome as !on! to 5e remodeed and 2anted+ 0ut res2ondent demos/ed t/e an)estra /ome and sod t/e ot to Ton Su# On!, usn! anot/er s2urous 5oard resoutondes!nated as 0oard Resouton No+ %+ T/e resouton )ontaned t/e mnutes o. an ae!ed or!anatona meetn! o. t/e dre)tors o. t/e )or2oraton and as s!ned 5# Ae(ander Bee,An!e 9ernando, Ern 9ernando and Ga5re So1ar+ Com2anant and /er dau!/ter dd not @no /o t/ese 2ersons 5e)ame sto)@/oders and dre)tors o. t/e )or2oraton+ Res2ondent a!an dd nota))ount .or t/e 2ro)eeds o. t/e sae+

Com2anant and /er dau!/ter made se1era demands on res2ondent .or t/e de1er# o. t/e rea 2ro2ertes t/e# ae!ed# ass!ned to t/e )or2oraton, .or an a))ountn! o. t/e 2ro)eeds o. t/eL0P oan and as e as t/e 2ro2ertes sod, and .or t/e rentas earned 5# 0CC+ 0ut t/e demands remaned un/eeded+ 7en)e, )om2anant and /er dau!/ter, n a etter dated "une , ?, termnated

t/e ser1)es o. res2ondent as t/er a#er and re2eated t/er demands .or a))ountn! and turn-o1er o. t/e )or2orate .unds, and t/e return o. t/e ttes t/at res2ondent trans.erred to t/e)or2oraton+ T/e# aso t/reatened /m t/ e!a a)ton n a etter dated Au!ust $, ?+

Soon a.ter, )om2anant .ound out .rom t/e Se)urtes and E()/an!e Commsson 3SEC, .or 5re1t#4 t/at Rosaura Enter2rses, In)+, due to res2ondents re.usa and ne!e)t, .aed to su5mt t/e)or2oratons annua .nan)a statements .or


72/130

)or2oratonK t/at t/e# .ree# and 1ountar# e(e)uted t/e deeds o. ass!nment and t/e 1otn! trust a!reement t/at t/e# s!nedK t/at /e dd not sn!e-/anded# mana!e t/e )or2oraton as e1den)ed 5#)ert.)atons o. t/e o..)ers and dre)tors o. t/e )or2oratonK t/at /e dd not use s2urous 5oard resoutons aut/orn! /m to )ontra)t a oan or se t/e 2ro2ertes ass!ned 5# t/e )om2anant and /erdau!/terK t/at )om2anant and /er dau!/ter s/oud 5e t/e ones /o s/oud render an a))ountn! o. t/e re)ords and re1enues nasmu)/ as, sn)e u2 to t/e 2resent, t/e 2art-tme )or2orate 5oo@-@ee2er, t/ t/e )onn1an)e o. t/e )om2anant and /er dau!/ter, /ad )ustod# o. t/e )or2orate re)ordsK t/at )om2anant and /er dau!/ter sa5ota!ed t/e o2eraton o. 0CC /en t/e# e!a# too@)ontro o. t n MK t/at /e ne1er 2o)@eted an# o. t/e 2ro)eeds o. t/e 2ro2ertes )ontr5uted 5# t/e )om2anant and /er dau!/terK t/at t/e demoton o. t/e an)estra /ome .ooed e!a 2ro)eduresKt/at )om2anant as ne1er detaned n Cuanan 5ut s/e .ree# and 1ountar# 1ed t/ t/e .am# o. P&$ "oe Constantno as e1den)ed 5# )om2anants on etter den#n! s/e as @dna22edK andt/at t/e nstant ds5arment )ase s/oud 5e dsmssed .or 5en! 2remature, )onsdern! t/e 2enden)# o. )ases 5e.ore t/e SEC and t/e Re!ona Tra Court o. Zam5oan!a n1o1n! /m and)om2anant+

0ased on t/e 2eadn!s and 2oston 2a2ers su5mtted 5# t/e 2artes, Commssoner Renato Cunanan, n /s re2ort ;


73/130

a)tn! as Treasurer o. to )or2oratons 5ear trut/ and )reden)e as res2ondent s!ned and a))e2ted t/e ttes to 2ar)es o. and )eded 5# t/e )om2anant and /er dau!/ter, as Treasurer on A2r ?,< a.ter /e as aread# 2ur2orted# ee)ted as C/arman, Presdent and Dre)tor+

7+ Res2ondent mseads t/e Commsson nto 5ee1n! t/at a t/e dre)tors s!ned t/e mnutes mar@ed as E(/5t 7 to 7- 2ar)es o. and ere 2assed and a22ro1ed+

N+ It s aso /!/# rre!uar .or res2ondent /o s a a#er, to ao a stuaton to /a22en /ere, t/ t/e e()uson o. )om2anant as dre)tor t/e resut as t/at t/ere remaned on# mem5ers o.t/e 0oard,+

KO. Respon#entFs o6n plea#in/s su9mitte# to t5e Commission 7ontra#i7t ea75 ot5er.


74/130

Enter2rses and n )edn! to t/e )or2oraton 2ar)es o. and n Zam5oan!a Ct#, 5e)ause t/e# .ree#, nte!ent# and 1ountar# s!ned t/e same, #et, n /s Poston Pa2er, res2ondent too@anot/er stan)e+

In 2ara!ra2/s


75/130

)ontro and su2er1son t/ereo. sometme n M, (((

Fet res2ondents on e(/5ts n /s 2oston 2a2er 2art)uar# E(/5t


76/130

On Se2tem5er $&, >>, /e Commssoner Cunanans re)ommendaton .or res2ondents ds5arment as 2endn! re1e 5e.ore E(e)ut1e V)e-Presdent and Nort/ern Luon Go1ernorTeo.o Pando, res2ondent .ed a moton reuestn! .or a .u-5on n1est!aton and .or n1adaton o. t/e entre 2ro)eedn!s andor remeda a)ton under Se)ton


77/130

, ! 2 ! 2 2 2 2 , 2)o1ered 5# TCT No+ M%&' to "amman!, /en /e mort!a!ed t/e > 2ar)es o. and to L0P /)/ ater .ore)osed on sad mort!a!e, and /en /e sod t/e )om2anants an)estra /ome )o1ered 5#TCT No+ '%&&+

:econd, t/e .a)tua .ndn!s o. t/e n1est!atn! )ommsson, a..rmed 5# t/e I0P 0oard, ds)osed t/at )om2anant and /er dau!/ter on ' o. t/e outstandn! s/ares 5ut res2ondent ne1er 5ot/ered to e(2an /# t/e# ere ne1er as@ed to 2art)2ate n or/# t/e# ere ne1er n.ormed o. m2ortant )or2orate de)sons+

Third, res2ondent, n /s )omment, ae!ed t/at due to t/e o58e)ton o. )om2anant and /er dau!/ter to /s 2ro2osa to /re an a))ountant, t/e )or2oraton /ad no .orma a))ountn! o. tsre1enues and n)ome+ 7oe1er, res2ondents 2oston 2a2er mantaned t/at t/ere as no a))ountn! 5e)ause t/e 2art-tme 5oo@@ee2er o. t/e )or2oraton )onn1ed t/ )om2anant and /er dau!/tern @ee2n! t/e )or2orate re)ords+

Fo!rth, res2ondents )am t/at )om2anant and /er dau!/ter too@ )ontro o. t/e o2eratons o. t/e )or2oraton n M s 5eed 5# t/e .a)t t/at )om2anant and /er dau!/ter ere not e1en2resent n t/e ae!ed meetn! o. t/e 5oard 3/)/ too@ 2a)e a.ter M4 to ds)uss t/e .ore)osure o. t/e mort!a!ed 2ro2ertes+ T/e trut/ s t/at /e ne1er n.ormed t/em o. su)/ meetn! and /e ne1er!a1e )ontro o. t/e )or2oraton to t/em+

Fi)th, Commssoner Cunanan .ound t/at:

?+ on t/e matter o. t/e re)e2ts ssued 5# res2ondent e1den)n! 2a#ment to /m o. rentas 5# essees o. t/e )or2oraton, atta)/ed to t/e )om2ant as Anne(es 7 to 7-


78/130

e!a )areer, n order to mantan ones !ood standn! n t/at e()us1e and /onored .raternt#+;


79/130


80/130

A#m. Case "o. $%2 Januar8 3, 03&


81/130

! A. YLAYA, Com2anant,1s+ATTY. 'L"" CARLOS 'ACOTT, Res2ondent+

D E C I S I O N

>RIO",J.:

9or t/e Courts )onsderaton s t/e ds5arment )om2ant


82/130

On De)em5er ?, %&&M, t/e )om2anant .ed an E( Parte 6oton to Bt/dra t/e Ver.ed Com2ant and To Dsmss t/e Case dated No1em5er


83/130

T/e Issues

9rom t/e ass!ned errors, t/e )om2anant 2oses t/e .oon! ssues:

3


84/130

)onsdered 5# t/e I0P Commssoner /en s/e arr1ed at /er .ndn!s and re)ommendaton, and ere t/e 5ases .or t/e I0P 0oards Resouton+

6oreo1er, an# seemn! de.e)t n t/e o5ser1an)e o. due 2ro)ess s )ured 5# t/e .n! o. a moton .or re)onsderaton+ A dena o. due 2ro)ess )annot 5e su))ess.u# n1o@ed 5# a 2art# /o /as /adt/e o22ortunt# to 5e /eard on /s moton .or re)onsderaton+ Undou5ted# n t/s )ase, t/e reurement o. t/e a as a..orded to t/e res2ondent+$

Be aso note t/at t/e res2ondent, on a 6oton to Reso1e or De)de t/e Case dated Au!ust %, %&&M, su5mtted /s )ase to t/e I0P .or ts resouton t/out an# .urt/er /earn!s+ T/e moton, .edamost one #ear a.ter t/e mandator# )on.eren)e on O)to5er M, %&&?, s!n.)ant# dd not )ontan an# statement re!ardn! a dena o. due 2ro)ess+ In e..e)t, t/e res2ondent /mse. a1ed /s )ross-e(amnaton o. t/e )om2anant /en /e as@ed t/e I0P 0oard o. Go1ernors to reso1e t/e )ase 5ased on t/e 2eadn!s and t/e e1den)e on re)ord+ To uote /s on su5msson:

&% .or E(2ro2raton n1o1n! t/e same 2ro2ert#, and su)/.a)t as de5erate# omtted 5# t/e )om2anant n /er Ver.ed Com2ant as s/on n t/e )ert.)aton o. non-.orum s/o22n!, t/e outr!/t dsmssa o. t/s )ase s arranted, /en)e, t/smotonK and

M+ T/s s meant to e(2edte t/e termnaton o. t/s )ase+3unders)ore oursK ta)s su22ed4

9na#, e note Se)ton


85/130

and res2ons5tes 2ertann! to t/e o..)e o. an attorne#+ In su)/ 2osture, t/ere )an t/us 5e no o))ason to s2ea@ o. a )om2anant or a 2rose)utor+ ;em2/ases deeted=

T/e )om2anant n ds5arment )ases s not a dre)t 2art# to t/e )ase 5ut a tness /o 5rou!/t t/e matter to t/e attenton o. t/e Court+ 9on! .rom ts su !eners )/ara)ter, t s not mandator# to/a1e a .orma /earn! n /)/ t/e )om2anant must addu)e e1den)e+

9rom a t/ese, e .nd t )ear t/at t/e )om2anant s not nds2ensa5e to t/e ds)2nar# 2ro)eedn!s and /er .aure to a22ear .or )ross-e(amnaton or to 2ro1de )orro5orat1e e1den)e o. /erae!atons s o. no mert+ B/at s m2ortant s /et/er, u2on due n1est!aton, t/e I0P

0oard o. Go1ernors .nds su..)ent e1den)e o. t/e res2ondents ms)ondu)t to arrant t/e e(er)se o. ts ds)2nar# 2oers+

5+ 6erts o. t/e Com2ant

In admnstrat1e )ases a!anst a#ers, t/e uantum o. 2roo. reured s 2re2onderan)e o. e1den)e /)/ t/e )om2anant /as t/e 5urden to ds)/ar!e+>Pre2onderan)e o. e1den)e means t/at t/ee1den)e addu)ed 5# one sde s, as a /oe, su2eror to or /as a !reater e!/t t/an t/at o. t/e ot/er+ It means e1den)e /)/ s more )on1n)n! to t/e )ourt as ort/# o. 5ee. )om2ared to t/e2resented )ontrar# e1den)e+

Under Se)ton


86/130

As to t/e se)ond ssue, t/s Commsson 5ee1es t/at t/e res2ondent )ommtted serous error n notarn! t/e Deed o. Sae and t/e 6emorandum o. A!reement 5eteen /s un)e Re#nod So andLaurentno Fa#a 5ased on Rue IV, Se)ton $ 3)4 o. A+6+ No+ &%--

Re#nod, n /s A..da1t dated O)to5er


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are s2urous and t/at t/e res2ondent as res2ons5e .or )reatn! t/ese s2urous do)uments+ Be are .urt/er 2ersuaded, a.ter notn! t/at n dsre!ardn! t/e 6OA, t/e I0P Commssoner .aed tos2e).# /at d..eren)es s/e o5ser1ed n t/e s2ouses Fa#as s!natures n t/e 6OA and /at do)uments ere used n )om2arson+

A2art .rom /er ae!atons, t/e )om2anants 2e)es o. e1den)e )onsst o. TCT Nos+


88/130

2ro)eedn!s n C1 Case No+ %>&%+ Su5seuent#, /e re2resented on# Re#nod n t/e same 2ro)eedn!s, assertn! Re#nod s oners/2 o1er t/e 2ro2ert# a!anst a ot/er )ams, n)udn! t/at o.t/e s2ouses Fa#a+%

Be .nd no re)ord o. an# rtten )onsent .rom an# o. t/e 2artes n1o1ed and e )annot !1e t/e res2ondent t/e 5ene.t o. t/e dou5t n t/s re!ard+ Be .nd t )ear .rom t/e .a)ts o. t/s )ase t/at t/eres2ondent retaned Re#nod as /s )ent and a)t1e# o22osed t/e nterests o. /s .ormer )ent, t/e )om2anant+ 7e t/us 1oated Canon


89/130

notarn! a do)ument t/out reurn! t/e a..ant to 2ersona# a22ear 5e.ore /m+ In t/s )ted )ase, e sad:

Com2anants desstan)e or t/draa o. t/e )om2ant does not e(onerate res2ondent or 2ut an end to t/e admnstrat1e 2ro)eedn!s+ A )ase o. sus2enson or ds5arment ma# 2ro)eed re!ardess o.nterest or a)@ o. nterest o. t/e )om2anant+ B/at matters s /et/er, on t/e 5ass o. t/e .a)ts 5orne out 5# t/e re)ord, t/e )/ar!e o. de)et and !ross# mmora )ondu)t /as 5een 2ro1en+ T/s rue s2remsed on t/e nature o. ds)2nar# 2ro)eedn!s+ A 2ro)eedn! .or sus2enson or ds5arment s not a )1 a)ton /ere t/e )om2anant s a 2ant.. and t/e res2ondent a#er s a de.endant+Ds)2nar# 2ro)eedn!s n1o1e no 2r1ate nterest and a..ord no redress .or 2r1ate !re1an)e+ T/e# are underta@en and 2rose)uted soe# .or t/e 2u5) e.are+ T/e# are underta@en .or t/e 2ur2oseo. 2reser1n! )ourts o. 8ust)e .rom t/e o..)a mnstraton o. 2ersons un.t to 2ra)t)e n t/em+ T/e attorne# s )aed to anser to t/e )ourt .or /s )ondu)t as an o..)er o. t/e )ourt+ T/e )om2anantor t/e 2erson /o )aed t/e attenton o. t/e )ourt to t/e attorne#s ae!ed ms)ondu)t s n no sense a 2art#, and /as !enera# no nterest n t/e out)ome e()e2t as a !ood )tens ma# /a1e n t/e

2ro2er admnstraton o. 8ust)e+>>

In sum, n admnstrat1e 2ro)eedn!s a!anst a#ers, t/e )om2anants desstan)e or t/draa does not termnate t/e 2ro)eedn!s+ T/s s 2art)uar# true n t/e 2resent )ase /ere 2e)unar#)onsderaton /as 5een !1en to t/e )om2anant as a )onsderaton .or /er desstan)e+ Be note n t/s re!ard t/at s/e oud re)e1eP?,&&&,&&&+&&, or /a. o. t/e 8ust )om2ensaton under t/eCom2romse A!reement,


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91/130


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'.R. "o. &%&11 Januar8 &2, 03&

TH CO"JU'AL )ART"RSHI) O! TH S)OUSS *IC"T CADA*DO A"D >"ITA ARCOY-CADA*DO ;9ot5 #e7ease#M de)sono. t/e Re!ona Tra Court 3RTC4, 0ran)/


95/130

In a de)son dated 9e5ruar# as ssued n t/er )/drens names+ On O)to5er


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T/e Run! o. t/e RTC

In t/e Se2tem5er


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T/e 2ettoners ar!ue t/at st2uatons on a a#ers )om2ensaton .or 2ro.essona ser1)es, es2e)a# t/ose )ontaned n t/e 2eadn!s .ed n )ourts, )ontro t/e amount o. t/e attorne#s .ees to/)/ t/e a#er s/a 5e entted and s/oud 2re1a o1er ora a!reements+ In t/s )ase, t/e s2ouses Cada1edo and Att#+ La)a#a a!reed t/at t/e atters )ontn!ent attorne#s .ee as P%,&&&+&& n )as/,not one-/a. o. t/e su58e)t ot+ T/s a!reement as )ear# st2uated n t/e amended )om2ant .ed n C1 Case No+


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C1 Case No+ %


99/130

.a)tor n determnn! )/am2ertous )ontra)ts, name#, t/at t/e a#er must aso, at /s on e(2ense mantan, and ta@e a t/e rs@s o., t/e t!aton+%%

T/e do)trnes o. )/am2ert# and mantenan)e ere )reated n res2onse to mede1a 2ra)t)e o. ass!nn! dou5t.u or .rauduent )ams to 2ersons o. eat/ and n.uen)e n t/e e(2e)taton t/at su)/nd1duas oud en8o# !reater su))ess n 2rose)utn! t/ose )ams n )ourt, n e()/an!e .or /)/ t/e# oud re)e1e an enttement to t/e s2os o. t/e t!aton+ %$In order to sa.e!uard t/eadmnstraton o. 8ust)e, nstan)es o. )/am2ert# and mantenan)e ere made su58e)t to )rmna and tortuous a5t# and a )ommon a rue as de1eo2ed, str@n! don )/am2ertous a!reementsand )ontra)ts o. mantenan)e as 5en! unen.or)ea5e on t/e !rounds o. 2u5) 2o)#+%

In t/s 8ursd)ton, e mantan t/e rues on )/am2ert#, as ado2ted .rom Amer)an de)sons, .or 2u5) 2o)# )onsderatons+ %?As matters )urrent# stand, an# a!reement 5# a a#er to )ondu)t t/et!aton n /s on a))ount, to 2a# t/e e(2enses t/ereo. or to sa1e /s )ent t/ere.rom and to re)e1e as /s .ee a 2orton o. t/e 2ro)eeds o. t/e 8ud!ment s o5no(ous to t/e a+ %MT/e rue o. t/e2ro.esson t/at .or5ds a a#er .rom )ontra)tn! t/ /s )ent .or 2art o. t/e t/n! n t!aton n e()/an!e .or )ondu)tn! t/e )ase at t/e a#ers e(2ense s des!ned to 2re1ent t/e a#er .roma)urn! an nterest 5eteen /m and /s )ent+ To 2ermt t/ese arran!ements s to ena5e t/e a#er to a)ure addtona sta@e n t/e out)ome o. t/e a)ton /)/ m!/t ead /m to )onsder /son re)o1er# rat/er t/an t/at o. /s )ent or to a))e2t a settement /)/ m!/t ta@e )are o. /s nterest n t/e 1erd)t to t/e sa)r.)e o. t/at o. /s )ent n 1oaton o. /s dut# o. und1ded .det# to/s )ents )ause+%'

In 0autsta 1+ Att#+ Gonaes,%t/e Court stru)@ don t/e )ontn!ent .ee a!reement 5eteen t/eren res2ondent Att#+ Ramon A+ Gonaes and /s )ent .or 5en! )ontrar# to 2u5) 2o)#+ T/ere, t/eCourt /ed t/at an rem5ursement o. t!aton e(2enses 2ad 5# t/e .ormer s a!anst 2u5) 2o)#, es2e)a# . t/e a#er /as a!reed to )arr# on t/e a)ton at /s e(2ense n )onsderaton o. some5ar!an to /a1e a 2art o. t/e t/n! n ds2ute+ It 1oates t/e .du)ar# reatons/2 5eteen t/e a#er and /s )ent+%>

In addton to ts )/am2ertous )/ara)ter, t/e )ontn!ent .ee arran!ement n t/s )ase e(2ress# trans!resses t/e Canons o. Pro.essona Et/)s and, m2ed#, t/e Code o. Pro.essonaRes2ons5t#+$&Under Rue % o. t/e Canons o. Pro.essona Et/)s, a a#er ma# not 2ro2er# a!ree t/ a )ent t/at t/e a#er s/a 2a# or 5eat t/e e(2ense o. t!aton+ $


100/130

o. a rt o. e(e)uton n C1 Case No+


101/130

due Att#+ La)a#a .or /s ser1)es ere not 5arred 5# t/e )om2romse a!reement+

Att#+ La)a#a s entted to re)e1e attorne#s .ees on a uantum merut 5ass

In 1e o. t/er res2e)t1e assertons and de.enses, t/e 2artes, n e..e)t, m2ed# set asde an# e(2ress st2uaton on t/e attorne#s .ees, and t/e 2ettoners, 5# e(2ress )ontenton, su5mt t/ereasona5eness o. su)/ .ees to t/e )ourts ds)reton+ Be t/us /a1e to .( t/e attorne#s .ees on a uantum merut 5ass+

uantum merutmeann! as mu)/ as /e deser1ess used as 5ass .or determnn! a a#ers 2ro.essona .ees n t/e a5sen)e o. a )ontra)t ( ( ( ta@n! nto a))ount )ertan .a)tors n .(n! t/eamount o. e!a .ees+'Its essenta reuste s t/e a))e2tan)e o. t/e 5ene.ts 5# one sou!/t to 5e )/ar!ed .or t/e ser1)es rendered under )r)umstan)es as reasona5# to not.# /m t/at t/e a#er2er.ormn! t/e tas@ as e(2e)tn! to 5e 2ad )om2ensaton.or t+ T/e do)trne o. uantum merut s a de1)e to 2re1ent undue enr)/ment 5ased on t/e euta5e 2ostuate t/at t s un8ust .or a2erson to retan 5ene.t t/out 2a#n! .or t+>

Under Se)ton %, Rue


102/130


103/130

A.M. "o. 0. !e9ruar8 &%, &.E

MARIO S. MARI*LS, Complainant, v. ATTY. ODILO" C. MALLARI,Respondents.

Ro#ol:o >. Ta-asan :or 7omplainant.

SYLLA>US


104/130

O " u # , >>, o S+ 1e es o 1 o C # ed d s 1e )o 2 ! s s o e )ou se , o e# Od o C+ , ose e! se 1 )es e d e ! !ed > o/ande /s de.ense n Crmna Case No+ MM& o. t/e Re!ona Tra Court o. Da1ao Ct# /ere /e as )/ar!ed t/ 1oaton o. 0+P+ 0!+ %%, ot/erse @non as t/e 0oun)n! C/e)@s La+

A.ter an ad1erse de)son as rendered on De)em5er %M, M, 6ar1ees nstru)ted Attorne# 6aar to a22ea t/e tra )ourts de)son to t/e Court o. A22eas, /)/ t/e res2ondent dd+

7oe1er, n t/e Court o. A22eas, des2te numerous e(tensons o. tme, totan! %? da#s, /)/ /e o5taned .rom t/e Court, Attorne# 6aar .aed to .e t/e a22eants 5re., resutn! n t/edsmssa o. t/e a22ea+

Com2anant ds)o1ered /s a#ers deserton on# /en /e as su52oenaed 5# t/e tra )ourt to a22ear 5e.ore t .or t/e e(e)uton o. t/e de)son /)/ /ad 5e)ome .na+)/anro5es a 5rar#

T/rou!/ ne )ounse, )om2anant .ed a Petton .or Renstatement o. A22ea, Can)eaton o. Entr# o. "ud!ment and Admsson o. A22eants 0re. n CA-G+R+ CR No+ &%, 5ut t as dened5# t/e a22eate )ourt+

7e sou!/t ree. n t/s Court 3G+R+ No+ ?>M, 6aro S+ 6ar1ees 1+ Court o. A22eas, Et+ A+4 /)/, on 6ar)/ , !ranted /s 2etton, ordered t/e Court o. A22eas to )an)e t/e entr# o.8ud!ment n CA-G+R+ CR No+ &%, renstate t/e a22ea, and admt t/e a22eants 5re. .ed 5# /s ne )ounse+ T/e Court sad:8!):)/anro5es+)om+2/

It s true t/at t/e .aure o. )ounse to .e 5re. .or t/e a22eant /)/ ed to t/e dsmssa o. t/e a22ea does not ne)essar# arrant t/e renstatement t/ereo.+ 7oe1er, /ere t/e ne!!en)e o.)ounse s so !reat t/at t/e r!/ts o. t/e a))used are 2re8ud)ed and /e s 2re1ented .rom 2resentn! /s de.ense, es2e)a# /ere t/e a22eant rases ssues /)/ 2a)e n serous dou5t t/e )orre)tnesso. t/e tra )ourts 8ud!ment o. )on1)ton, t/e a.oresad rue must not 5e r!d# a22ed to a1od a ms)arra!e o. 8ust)e+ T/ese tea)/n!s o. 8urs2ruden)e are 2resent n t/e )ase at 5ar+

On t/e .rst as2e)t, t/e .aure o. 2ettoners .ormer )ounse to .e t/e 5re., .or reasons un@non and t/out an# )ause m2uta5e to 2ettoner, amounted to de5erate a5andonment o. /s )ents

nterest and 8ust.es renstatement t/ )onseuent due )onsderaton o. 2ett oners a22ea t/rou!/ a ne )ounse+ 322+


105/130


106/130


107/130


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A.C. "o. 2&31 Ma8 0$, 0332

ROSA !. MRCADO,)om2anant,1s+ATTY. JULITO D. *ITRIOLO,res2ondent+

D E C I S I O N

)U"O,J.(

Rosa 9+ 6er)ado .ed t/e nstant admnstrat1e )om2ant a!anst Att#+ "uto D+ Vtroo, see@n! /s ds5arment .rom t/e 2ra)t)e o. a+ T/e )om2anant ae!ed t/at res2ondent ma)ous#nsttuted a )rmna )ase .or .as.)aton o. 2u5) do)ument a!anst /er, a .ormer )ent, 5ased on )on.denta n.ormaton !aned .rom t/er attorne#-)ent reatons/2+

Let us .rst /ear@en to t/e .a)ts+

Com2anant s a Senor Edu)aton Pro!ram S2e)ast o. t/e Standards De1eo2ment D1son, O..)e o. Pro!rams and Standards /e res2ondent s a De2ut# E(e)ut1e Dre)tor IV o. t/eCommsson on 7!/er Edu)aton 3C7ED4+an o..erand )ounter-o..er .or settement,$&or a do)ument !1en 5# a )ent to /s )ounse not n /s

spethics canon 14-19

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