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    SECOND DIVISION

    HUMBERTO C. LIM,JR., A.C. No. 5303

    in behalf of PENTA RESORTSCORPORATION/Attorney-in-Fact of LUMOT A.JALANDONI,

    Complainant,

    Present:

    PUNO, J.,Chairperson,

    SANDOVAL-GUTIERREZ,

    - v e r s u s -

    CORONA,

    AZCUNA and

    GARCIA, JJ.

    ATTY. NICANOR V.VILLAROSA,

    Respondent.

    Promulgated:

    June15

    ,20

    06

    x - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - x

    R E S O L U T I O N

    CORONA, J.

    Humberto C. Lim

    Jr.[1]filed a verified complaint

    for disbarment against

    respondent Atty. Nicanor V.

    Villarosa on July 7,

    2000.[2] On February 19,

    2002, respondent moved for

    the consolidation of the said

    complaint with the following

    substantially interrelated cases

    earlier filed with the First

    Division of this Court:

    1. Administrative

    Case No. 5463:

    Sandra F.

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    Vaflor v. Atty.

    Adoniram P.

    Pamplona and

    Atty. Nicanor

    V. Villarosa;

    2. Administrative

    Case No. 5502:

    Daniel A.

    Jalandoni v.

    Atty. Nicanor

    V. Villarosa.

    In a resolution dated

    February 24, 2003, this Court

    considered Administrative Case

    No. 5463 closed and

    terminated.[3] On February 4,

    2004, considering the

    pleadings filed in

    Administrative Case No. 5502,

    the Court resolved:

    (a) to NOTE the notice

    of the resolutiondated September27, 2003 of theIntegrated Bar ofthe Philippinesdismissing the caseagainst respondent

    for lack of merit;and

    (b) to DENY, for lackof merit, the petition

    filed by complainantpraying that theresolution of theIntegrated Bar ofthe Philippinesdismissing theinstant case bereviewed and thatproper sanctions beimposed uponrespondent.

    [4]

    No motion for

    reconsideration of the aforesaid

    denial in Administrative Case

    No. 5502 appears in the

    records. The Court is now

    called upon to determine the

    merits of this remaining case

    (A.C. No. 5303) against

    respondent.

    The complaint read:

    AS FIRST CAUSE OFACTION

    xxx xxxxxx

    - II -

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    That respondent isa practicing lawyer and amember of the IntegratedBar of the Philippines,Bacolod City, Negros

    Occidental Chapter.That sometime onSeptember 19, 1997,Lumot A. Jalandoni,Chairman/President ofPRC was sued beforeRTC, Branch 52 in CivilCase No. 97-9865, RE:Cabiles et al. vs. LumotJalandoni, et al. The latterengaged the legal services

    of herein respondent whoformally entered hisappearance on October 2,1997 as counsel for thedefendants Lumot A.Jalandoni/Totti AnlapGargoles. Respondentas a consequence of said

    Attorney-Clientrelationship representedLumot A. Jalandoni et al inthe entire proceedings ofsaid case. Utmost trustand confidence wasreposed on said counsel,hence delicate andconfidential mattersinvolving all the personalcircumstances of his clientwere entrusted to therespondent. The latterwas provided with all thenecessary informationrelative to the property inquestion and likewise onlegal matters affecting thecorporation (PRC)particularly [involving]problems [which affect]Hotel Alhambra. Said

    counsel was privy to alltransactions and affairs ofthe corporation/hotel.

    - III -

    That it wasrespondent whoexclusively handled theentire proceedings ofafore-cited Civil Case No.97-9865 [and] presentedLumot A. Jalandoni as hiswitness prior to formally

    resting his case. However,on April 27,1999 respondent, withoutdue notice prior to ascheduled hearing,surprisingly filed a Motionto withdraw as counsel,one day before itsscheduled hearing on April28, 1999. A careful

    perusal of said Motion toWithdraw as Counsel willconclusively show that nocopy thereof was furnishedto Lumot A. Jalandoni,neither does it bear herconformity. No doubt,such notorious act ofrespondent resulted to(sic) irreparable damageand injury to Lumot A.Jalandoni, et al since thedecision of the court RTC,Branch 52 proved adverseto Lumot A. Jalandoni, etal. The far reachingeffects of the untimely andunauthorized withdrawalby respondent causedirreparable damage and

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    injury to Lumot A.Jalandoni, et al; a highlymeritorious case in favorof his client suddenly[suffered] unexpected

    defeat.

    - IV -

    That the groundsalleged by respondent forhis withdrawal as counselof Lumot A. Jalandoni, etal. was that he is [a]retained counsel of Dennis

    G. Jalbuena and theFernando F. Gonzaga, Inc.It was Dennis G. Jalbuenawho recommended him tobe the counsel of Lumot A.Jalandoni, et al. It isworthy to note that fromthe outset, respondentalready knew that DennisG. Jalbuena is the son-in-law of Lumot A. Jalandonibeing married to her eldestdaughter, Carmen J.Jalbuena. The otherdirectors/officers of PRCwere comprised of theeldest sibling of theremaining children ofLumot A. Jalandoni madein accordance with herwishes, with the exceptionof Carmen J. Jalbuena,the only daughterregistered as one of theincorporators of PRC,obviously, being the authorof the registration itself[sic]. Respondent furtherstated that he cannotrefuse to represent Dennis

    G. Jalbuena in the casefiled against the latterbefore the CityProsecutors Office byPRC/Lumot A. Jalandoni

    due to an allegedretainership agreementwith said Dennis G.Jalbuena. [He] likewiserepresented Carmen J.Jalbuena and one VicenteDelfin when PRC filed thecriminal complaint againstthem. On April 06, 1999,twenty-one (21) days priorto respondents filing of his

    Motion to Withdraw asCounsel of Lumot A.Jalandoni, et al.,respondent entered hisappearance with BacolodCity Prosecutor OIC-Vicente C. Acupan,through a letter expresslystat ingthat effective saiddate he was appearing ascounsel for both Dennis G.Jalbuena and Carmen J.Jalbuena and VicenteDelfin in the Estafa casefiled by the corporation(PRC) against them.Simply stated, as early as

    April 6, 1999 respondentalready appeared for andin behalf of the Sps.Carmen and DennisJalbuena/Vicente Delfinwhile concurrentlyrepresenting Lumot A.Jalandoni, et al. in CivilCase No. 97-9865.However, despite beingfully aware that the interestof his client Lumot A.Jalandoni [holding an

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    equivalent of Eighty-two(82%) percent of PRCsshares of stocks] and theinterest of PRC are oneand the same,

    notwithstanding the factthat Lumot A. Jalandoniwas still his client in CivilCase No. 97-9862,respondent opted torepresent opposing clientsat the same time.Thecorporations complaint forestafa (P3,183,5525.00)was filed against the Sps.Dennis and Carmen J.

    Jalbuena together withUCPB bank managerVicenteDelfin. Succeeding eventswill show that respondentinstead of desisting fromfurther violation of his[lawyers] oath regardingfidelity to his client, withextreme arrogance,blatantly ignored our lawson Legal Ethics, bypalpably and despicablydefending the Sps. Dennisand Carmen J. Jalbuena inall the cases filed againstthem by PRC through itsduly authorizedrepresentatives, before thePublic Prosecutors Office,Bacolod City (PP vs. Sps.Dennis and Carmen J.Jalbuena for FalseTestimony/Perjury, viol. of

    Art. 183 RPC under BCI.S. No. 2000-2304; viol. of

    Art. 363, 364, 181 and 183RPC under BC I.S. 2000-2343, PP vs. Carmen J.Jalbuena for viol. of Art.

    315 under BC I.S.2000-2125 and variousother related criminalcases against the Sps.Dennis and Carmen

    Jalbuena).AS SECOND CAUSE OFACTION

    xxx xxxxxx

    - I -

    xxx xxx

    xxx

    There is no disputethat respondent was ableto acquire vast resourcesof confidential and delicateinformation on the factsand circumstances of [CivilCase No. 97-9865] whenLumot A. Jalandoni washis client whichknowledge and informationwas acquired by virtue oflawyer-client relationshipbetween respondent andhis clients. Using the saidclassified informationwhich should have beenclosely guarded respondent did then andthere, willfully, unlawfully,feloniously conspired andconfabulated with the Sps.Dennis and Carmen J.Jalbuena in concocting thedespicable and fabricatedcharges against his formerclients denominated as PPvs. Lumot A. Jalandoni,

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    Pamela J. Yulo, Cristina J.Lim and Leica J. Lim forviol. of Art. 172 of RevisedPenal Code due to a boardresolution executed by the

    corporation which the Sps.Jalbuena, with theassistance of hereinrespondent, claimed tohave been made withoutan actual board meetingdue to an alleged lack ofquorum, [among otherthings]. Were it not for saidfiduciary relation betweenclient and lawyer,

    respondent will not be in aposition to furnish hisconspirator spouses withconfidential information onLumot A. Jalandoni/PRC,operator of AlhambraHotel.

    - II -

    Adding insult toinjury, respondent opted todeliberately withhold theentire case file includingthe marked exhibits of theCabiles case for more thanthree (3) months after hisuntimely unilateralwithdrawal therefrom,despite repeated demandsfrom [his] client. On July26, 1999, capitalizing onhis knowledge of theindispensability of saiddocuments particularly themarked exhibits, whichdeadline to file the formaloffer of exhibits was

    continually impressedupon the new counsel bythe court, respondentsuddenly interposed anamount of five thousand

    (P5,000.00) pesos asconsideration prior to orsimultaneous to theturnover of saiddocuments. [On] July29, 1999, left with no otheralternative owing to theurgency of the situation,PRC issued Check No.2077686 for P5,000.00 inpayment thereof. This was

    duly received byrespondents office on thesame date. Suchdilatory tactics employedby respondent immenselyweakened the case ofLumot A. Jalandonieventually resulting to (sic)an adverse decisionagainst [her].

    Furtherdemonstrating before thisHonorable Court thenotoriety of respondent inrepresenting conflictinginterest which extendedeven beyond the familycontroversy was hisimproper appearance incourt in Civil Case No. 99-10660, RE: Amy AlbertQue vs. Penta ResortsCorp., this time favoringthe party opponent ofdefendant who is evenoutside the familycircle. During the pre-trialhearing conducted on May5, 1999, while still [holding]

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    exclusive possession ofthe entire case file of hisclient in Civil Case No. 97-9865, respondent brazenlypositioned himself beside

    Atty. Adoniram P.Pamplona, counsel ofplaintiff [in] a suit againsthis client Lumot A.Jalandoni/PRC, coachingsaid counsel on matters[he was privy to] ascounsel of saidclient. Facts mentioned bysaid counsel of the plaintiffstarting from the last par.

    of page 25 until andincluding the entire firstpar. of page 26 were theexact words dictated byrespondent. The entireincident was personallywitnessed by hereincomplainant [who was]only an arms length awayfrom them during thehearing. However, theparticular portion showingthe said irregular acts ofrespondent wasdeliberately excluded bythe court stenographerfrom the transcript, despiteher detailed recollectionand affirmation thereof toherein complainant. Thisprompted the new counselof Lumot A.Jalandoni/PRC tocomplain to the court why

    Atty. Nicanor Villarosa wascoaching Atty. Pamplonain such proceedings.Said corrections were onlyeffected after repeateddemands to reflect the

    actual events which[transpired] on said pre-trial.

    [5](emphasis ours)

    In an addendum to the

    July 4, 2000 complaint, Lim

    also pointed to certain acts of

    respondent which allegedly

    violated the Rules of Court

    perpetration of falsehood and

    abuse of his influence asformer public prosecutor.

    These supposedly affected the

    status of the cases that Lim

    filed against the clients of

    respondent.[6]

    In a motion to dismiss

    dated October 30, 2000,

    respondent claimed that the

    complainant violated Circular

    No. 48-2000 because, in his

    verification, Lim stated:

    3. That [he] prepared thisinstant complaint fordisbarment against Atty.Nicanor V. Villarosa, readits contents, the same areall true and correct to[his] own personal

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    knowledge andbelief.

    [7](emphasis ours)

    Section 4, Rule 7 of the

    Rules of Court explicitly

    provides that:

    SEC.4. Verification. Exceptwhen otherwisespecifically required by lawor rule, pleadings need notbe under oath, verified or

    accompanied by affidavit.(5a)

    A pleading isverified by an affidavit thatthe affiant has read thepleading and that theallegations therein are trueand correct of his personalknowledge or based onauthentic records.

    A pleadingrequired to be verifiedwhich containsverification based oninformation and beliefor upon knowledge,information and belief,or lacks a properverification, shall betreated as an unsignedpleading. (As amended,

    A.M. 00-2-10, May 1,2000.) (emphasis ours)

    While the Rules provide

    that an unsigned pleading

    produces no legal effect,[8]the

    court may, in its discretion,

    allow such deficiency to be

    remedied if it appears that the

    same was due to mere

    inadvertence and not intended

    for delay.[9] We find that Lim

    was not shown to have

    deliberately filed the pleading

    in violation of the Rules.

    In his comment dated

    December 1, 2000, respondent,

    reiterating his ground for the

    dismissal of the complaint,

    added:

    [that] complainantHumberto C. Lim, Jr. hasnot only violated the Ruleon Civil Procedure but hewas/is NOT dulyauthorize[d] by the Penta

    Resorts Corp. (PRC) nor[by] Lumot A. Jalandoni tofile this complaint against[him]. Neither [was Lim] aproper party to file thiscomplaint. This fact is anadditional ground to havehis case dismissed

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    because Humberto C. LimJr. exceeded whateverauthority was granted tohim as embodied in aresolution and the Special

    Power of Attorneyallegedly granted to him bythe complainants.[10]

    To bolster his assertion

    that the complaint against him

    was unfounded, respondent

    presented the following versionin his defense:

    FACTS OF THE CASE

    xxx xxxxxx

    That Mrs.

    Jalandoni has two sons-in-law, namely Dennis G.Jalbuena married to herdaughter, Carmen J.Jalbuena, and HumbertoC. Lim Jr., the hereincomplainant married to herdaughter, Cristina J. Lim.

    That Mrs. LumotJalandoni organized a

    corporation namely thePenta Resorts Corporation(PRC) where she ownedalmost ninety sevenpercent (97%). In otherwords, in reality, PentaResorts Corporation is asingle proprietorship

    belonging to Mrs.Jalandoni. That the onlyproperty of the corporationis as above-stated, the

    Alhambra Hotel,

    constructed solely throughthe effort of the spousesJalbuena on that parcel ofland now claimed by theCabiles family.

    That sometime onthe year 1997 the caseabove-cited (Civil CaseNo. 97-9865) was filedbefore the court against

    the sisters.That [he],being RETAINEDcounselof the spouses Dennis andCarmen J. Jalbuenawas RECOMMENDEDbythe spouses to the sistersto answer the complaintfiled against them.

    II.

    That as counsel tothe sisters, [he] filed aMotion for Extension OfTime To File Answer and ultimately, [he] filed an

    Answer With Counter-Claim And Prayer ForIssuance Of Writ OfPreliminary Injunction.

    That reading theAnswer it is clear thatthe defense of the sisterstotally reston publicdocuments (thevarious titles issued to the

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    land in question becauseof the series [of changes]in ownership) and thesisters and their parentsactual occupation and

    possession thereof. xxxxxx xxx

    Mr. Lim[s]accusation against [him] inthe light of the above-factsis the best evidence ofHumberto C. Lim, Jr.spenchant for exaggerationand distortion of thetruth. Since the defense of

    the sisters to retainownership of the land inquestion is basedon PUBLIC documents, what delicate andconfidential mattersinvolving personalcircumstances of thesisters allegedly entrustedto [him], is Mr. HumbertoC. Lim, Jr. talking about in

    paragraphs I and II of hisComplaint? What [privity]to all transactions andaffairs of thecorporation/hotel is hereferring to? Whatevertransactions thecorporation may havebeen involved in or [maybe getting involved into], istotally immaterial andirrelevant to the defense ofthe sisters.

    There was nothingpersonal [about the]circumstances of thesisters nor transactions ofthe corporation [which

    were] discussed. Thedocuments being offeredas evidence, [he]reiterate[s] for emphasis,are public; the

    presumption is that thewhole world knows aboutthem.

    That [he] [also]vehemently den[ies]another distortedallegation of Mr. Lim that[he] represented Mrs.Jalandoni [in]the entireproceedings of

    [the] case. [Lim] himselfattested that [he] [filed][his] Motion to Withdraw

    As Counsel, dated April26, 1999 , before thetrial court, sometime on

    April 27, 1999. How thencould [he] haverepresented Mrs.Jalandoni for[the] entire proceedings ofthe case?

    Further, Mr.Lim intentionallyhid fromthis Honorable Court theimportant fact that [his]Motion to Withdrawwas APPROVEDby thetrial court because ofthe possibilityof a conflictof interest. xxx xxx xxx.

    [11]

    Respondent discredited

    Lims claim that he deliberately

    withheld the records of the

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    cited civil case. He insisted

    that it took him just a few

    days, not three months, to

    turn over the records of the

    case to Lim.[12] While he

    admitted an oversight in

    addressing the notice of the

    motion to withdraw as counsel

    to Mrs. Totti Anlap Gargoles

    instead of Mrs. Jalandoni at

    Hotel Alhambra, he maintained

    that it was the height of

    hypocrisy to allege that Mrs.

    Jalandoni was not aware of his

    motion to withdraw[13]since

    Mrs. Gargoles is Mrs.

    Jalandonis sister and Hotel

    Alhambra is owned by PRC

    which, in turn, actually

    belongs to Mrs. Jalandoni.

    Respondent also argued that

    no prejudice was suffered by

    Mrs. Jalandoni because she

    was already represented by

    Atty. Lorenzo S. Alminaza from

    the first hearing date.[14] In

    fact, respondent contended, it

    was he who was not notified of

    the substitution of

    counsels.[15]

    As to the bill of P 5,000,

    respondent stated:

    That Mr. Limbegrudge[s] [him] forbilling Mrs. Jalandoni FiveThousand (Php5,000.00)Pesos. Mr. Humberto C.Lim Jr.conveniently forgets thatthe net worth of theproperty together with itsimprovements, underlitigation in that Cabiles, etal. vs. Gargoles et al.case, is a minimumof THIRTY MILLION(Php30,000,000.00)PESOSthen, and more sonow. [He] cannot find anylaw which prohibits acounsel from billing aclient for services inproportion to the serviceshe rendered.[16]

    In view of these

    developments, respondent was

    adamant that:

    the only real question tobe answered in thiscomplaint is why Mr. Limso consistently[determined] to immerse

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    the Jalandoni family [in] aseries of criminal and civilsuits and to block allattempts to reconcile thefamily by prolonging

    litigations, complaints andfiling of new ones in spiteof the RESOLUTION ofthe corporation and theUNDERTAKING of themembers.[17]

    On June 18, 2001, the

    Court resolved to refer the

    complaint to the Integrated Bar

    of the Philippines (IBP) for

    investigation. Commissioner

    Lydia A. Navarro made the

    following report and

    recommendation:

    xxx xxxxxx

    After going overthe [pieces of evidence]submitted by the parties[,]the undersigned noted thatfrom the onset, PRC had acase wherein respondent

    was its counsel. Later on,complainant had a caseagainst spouses Jalbuenawhere the parties wererelated to each other andthe latter spouses wererepresented by therespondent as their

    retained counsel; afterrespondent had allegedlywithdrawn as counsel forthe complainant in CivilCase No. 97-9865.

    Being the husbandof one of the complainantswhich respondent himselfaverred in his answer, it isincumbent upon HumbertoLim Jr. to represent hiswife as one of therepresentatives of PRCand Alhambra Hotel in the

    administrative complaint toprotect not only herinterest but that of the[familys].

    From the factsobtaining, it is evident thatcomplainant had a lawyer-client relationship with therespondent before thelatter [was] retained ascounsel by the SpousesJalbuena when the latterwere sued bycomplainantsrepresentative.

    We cannotdisregard the fact that onthis situation for somereason or another thereexisted someconfidentiality and trustbetween complainants andrespondent to ensure thesuccessful defense of theircases.

    Respondent forhaving appeared as

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    counsel for the SpousesJalbuena when charged byrespondents former clientJalandoni of PRC and

    Alhambra Hotel,

    represented conflictinginterests in violation ofthe Canon of ProfessionalResponsibility.

    As such therefore,the Undersigned has noalternative but torespectfully recommendthe suspension of therespondent from the

    practice of law for a periodof six (6) months fromreceipt hereof.

    RESPECTFULLYSUBMITTED.

    Pasig City, June20, 2002.[18]

    The IBP Board of

    Governors (Board), however,

    reversed the recommendation

    of the investigating

    commissioner and resolved to

    dismiss the case on August 3,

    2002.[19]Lumot A. Jalandoni

    filed a motion for

    reconsideration (MR) on

    October 18, 2002 but the

    Board denied the MR since it

    no longer had jurisdiction to

    consider and resolve a matter

    already endorsed

    to this Court.[20]

    Before delving into the

    core issues of this case, we

    need to address some

    preliminary matters.

    Respondent argues that

    the alleged resolution of PRC

    and the special power of

    attorney given by Lumot A.

    Jalandoni to Humberto did not

    contemplate the filing of an

    administrative

    complaint.[21] Citing the Rules

    of Court, respondent said that:

    [s]uch complaints arepersonal in nature andtherefore, the filing of thesame, cannot

    be delegatedby thealleged aggrieved party toany third person unlessexpressly authorized bylaw.

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    We must note, however,

    the following:

    SECTION 1. How

    instituted. Proceedingsfor disbarment,suspension or discipline ofattorneys may be taken bythe Supreme Court motu

    propio, or by theIntegrated Bar of thePhilippines (IBP) upon theverified complaint ofanyperson.The complaintshall state clearly and

    concisely the factscomplained of and shall besupported by affidavits orpersons having personalknowledgeof the factstherein alleged and/or bysuch documents a maysubstantiate said facts.

    The IBP Board ofGovernors may, motu

    propio or upon referral bythe Supreme Court or by aChapter Board of Officers,or at the instance of anyperson, initiate andprosecute proper chargesagainst any erringattorneys.

    [22](emphasis

    ours)

    Complaints against

    members of the Bar are

    pursued to preserve the

    integrity of the legal profession,

    not for private vendetta. Thus,

    whoever has such personal

    knowledge of facts constituting

    a cause of action against erring

    lawyers may file a verified

    complaint with the Court or

    the IBP.[23]Corollary to the

    public interest in these

    proceedings is the following

    rule:

    SEC. 11. Defects. Nodefect in a complaint,notice, answer, or in theproceeding or theInvestigators Reportshall be considered assubstantial unless theBoard of Governors,upon considering the

    whole record, finds thatsuch defect has resultedor may result in amiscarriage of justice, inwhich event the Boardshall take such remedialaction as thecircumstances maywarrant, includinginvalidation of the entireproceedings.[24](emphasis

    ours)

    Respondent failed to

    substantiate his allegation that

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    Lims complaint was defective

    in form and substance, and

    that entertaining it would

    result in a miscarriage of

    justice. For the same reason,

    we will no longer put in issue

    the filing at the onset of a

    motion to dismiss by

    respondent instead of an

    answer or comment.[25]

    The core issues before us

    now are:

    1. whether there

    existed a

    conflict of

    interest in the

    cases

    represented

    and handled by

    respondent,

    and

    2. whether

    respondent

    properly

    withdrew his

    services as

    counsel of

    record in Civil

    Case No. 97-

    9865.

    CONFLICT OF INTEREST

    Petitioners alleged that as

    an offshoot of representing

    conflicting interests, breach of

    attorney-client confidentiality

    and deliberate withholding of

    records were committed by

    respondent. To effectively

    unravel the alleged conflict ofinterest, we must look into the

    cases involved.

    In Civil Case No. 97-9865,

    respondent represented Lumot

    A. Jalandoni and Totti Anlap

    Gargoles. This was a case for

    the recovery of possession of

    property involving Hotel

    Alhambra, a hotel owned by

    PRC.

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    In BC I.S. No. 99-

    2192, Lim v. Vicente Delfin,

    Spouses Dennis and Carmen

    Jalbuena, respondent was

    counsel for Delfin and the

    spouses Jalbuena. In this case,

    plaintiff Cristina Lim sued the

    spouses Jalbuena and Delfin

    on the basis of two checks

    issued by PRC for the

    construction of Hotel

    Alhambra.[26]The corporate

    records allegedly reflected that

    the contractor, AAQ Sales and

    Construction (AAQSC), was

    already paid in full yet Amy

    Albert Que of AAQSC still filed

    a collection case against PRC

    for an unpaid balance.[27]In

    her complaint-affidavit,

    Cristina averred:

    11. That it was respondentCarmen J. Jalbuena, whotook advantage of [her]signatures in blank in DBPCheck Nos. 0865590 and0865591, and who filled upthe spaces of the payee,date and amount without

    the knowledge andconsent of any officer ofthe corporation and[herself], after which shecaused the delivery of the

    same checks to herhusband Dennis Jalbuena,who encashed without[their] knowledge andconsent, and received theproceeds of the samechecks (as evidenced byhis signature in receipt ofpayment on the dorsalside of the said checks)with the indispensable

    participation andcooperation of respondentVicente B. Delfin, the Asst.Vice President and BranchHead of UCPB.[28]

    Notably, in his comment,

    respondent stated:

    There was a possibility ofconflict of interest becauseby this time, or onemonth before [he] filed[his] Motion to Withdraw,Mrs. Jalandoni /PentaResorts Corporation, Mr.Lim, throughhis wife, Cristina J. Lim,by another counsel, Atty.Lorenzo S. Alminaza,

    filed a criminal complaintagainst the spousesDennis and Carmen J.Jalbuena on March 26,1999 under BC-I.S.Case No. 99-2192.[29]

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    Similarly, in BC I.S. Nos.

    00-1370, 2000-2304, 2000-

    2343, 00-2125, 00-2230, 00-

    880, respondent positioned

    himself against PRCs

    interests.

    And, in Civil Case No. 99-

    10660, a collection case

    against PRC, Atty. Alminaza of

    PRC was alarmed by the

    appearance of respondent at

    the table in court for AAQSCs

    counsel.[30]

    Canon 15 of the Code of

    Professional Responsibility

    (CPR) highlights the need

    for candor, fairness and loyalty

    in all the dealings of lawyers

    with their clients. Rule 15.03 of

    the CPR aptly provides:

    Rule 15.03 Alawyer shall not representconflicting interests exceptby written consent of allconcerned given after afull disclosure of the facts.

    It is only upon strict

    compliance with the condition

    of full disclosure of facts that a

    lawyer may appear against his

    client; otherwise, his

    representation of conflicting

    interests is

    reprehensible.[31]Conflict of

    interest may be determined in

    this manner:There is representation ofconflicting interests if theacceptance of the newretainer will require theattorney to do anythingwhich will injuriouslyaffect his first client inany matterin which herepresents him and also

    whether he will be calledupon in his new relation, touse against his first clientany knowledge acquiredthrough theirconnection.[32](emphasisours)

    The rule on conflict of

    interests covers not only cases

    in which confidential

    communications have been

    confided but alsothose in

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    which no confidence has been

    bestowed or will be used.[33]

    Another test of the

    inconsistency of interestsis whether the acceptanceof a new relation willprevent an attorney fromthe full discharge of hisduty of undivided fidelityand loyalty to his client orinvite suspicion ofunfaithfulness or double-dealing in the performancethereof, and also whether

    he will be called upon inhis new relation to useagainst his first client anyknowledge acquire in thepreviousemployment. The first partof the rule refers to casesin which the opposingparties are present clientseither in the same actionor in a totally unrelated

    case; the second partpertains to those in whichthe adverse party againstwhom the attorneyappears is his formerclient in a matter which isrelated, directly orindirectly, to the presentcontroversy.

    [34] (emphasis

    ours)

    The rule prohibits a

    lawyer from representing new

    clients whose interests oppose

    those of a former client in any

    manner, whether or not they

    are parties in the same action

    or in totally unrelated

    cases. The cases here directly

    or indirectly involved the

    parties connection to PRC,

    even if neither PRC nor Lumot

    A. Jalandoni was specifically

    named as party-litigant in

    some of the cases mentioned.

    An attorney owes to hisclient undividedallegiance. After beingretained and receiving theconfidences of the client, hecannot, without the free andintelligent consent of his

    client, act both for his clientand for one whose interestis adverse to, or conflictingwith that of his client in thesame generalmatter.The prohibitionstands even if theadverse interest is veryslight; neither is itmaterial that the intentionand motive of the

    attorney may have beenhonest.[35](emphasis ours)

    The representation by a

    lawyer of conflicting interests,

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    in the absence of the written

    consent of all parties

    concerned after a full

    disclosure of the facts,

    constitutes professional

    misconduct which subjects the

    lawyer to disciplinary action.[36]

    Even respondents alleged

    effort to settle the existing

    controversy among the family

    members[37]was improper

    because the written consent of

    all concerned was still

    required.[38] A lawyer who acts

    as such in settling a dispute

    cannot represent any of the

    parties to it.[39]

    WITHDRAWAL AS COUNSEL IN

    CIVIL CASE NO. 97-9865

    The next bone of

    contention was the propriety of

    respondents withdrawal as

    counsel for Lumot A. Jalandoni

    in Civil Case No. 97-9865 to

    fulfill an alleged retainership

    agreement with the spouses

    Jalbuena in a suit by PRC,

    through Cristina Lim, against

    the Jalbuenas and Delfin (BC

    I.S. No. 99-2192). In his

    December 1, 2000 comment,

    respondent stated that it was

    he who was not notified of the

    hiring of Atty. Alminaza as the

    new counsel in that case and

    that he withdrew from the case

    with the knowledge of Lumot

    A. Jalandoni and with leave of

    court.

    The rule on termination of

    attorney-client relations may

    be summarized as follows:

    The relation of attorneyand client may beterminated by the client, bythe lawyer or by the court,or by reason of

    circumstances beyond thecontrol of the client or thelawyer. The termination ofthe attorney-clientrelationship entails certainduties on the part of theclient and his lawyer.

    [40]

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    Accordingly, it has been

    held that the right of an

    attorney to withdraw orterminate the relation other

    than for sufficient cause is

    considerably restricted. Canon

    22 of the CPR reads:

    Canon 22A lawyer shallwithdraw his services only

    for good cause and uponnotice appropriate in thecircumstances.

    An attorney may only

    retire from a case either by

    written consent of his client or

    by permission of the court after

    due notice and hearing, in

    which event the attorney

    should see to it that the name

    of the new lawyer is recorded

    in the case.[41]A lawyer who

    desires to retire from an action

    without the written consent of

    his client must file a petition

    for withdrawal in court.[42]He

    must serve a copy of his

    petition upon his client and the

    adverse party at least three

    days before the date set for

    hearing, otherwise the court

    may treat the application as a

    mere scrap of

    paper.[43]Respondent made no

    such move. He admitted that

    he withdrew as counsel on

    April 26, 1999, which

    withdrawal was supposedly

    approved by the court on April

    28, 1999. The conformity of

    Mrs. Jalandoni was only

    presumed by Atty. Villarosa

    because of the appearance of

    Atty. Alminaza in court,

    supposedly in his place.

    [A client] may dischargehis attorney at any timewith or without cause andthereafter employ anotherlawyer who may then enterhis appearance. Thus, it

    has been held that a clientis free to change hiscounsel in a pending caseand thereafter retainanother lawyer torepresent him. Thatmanner of changing alawyer does not need the

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    consent of the lawyer to bedismissed. Nor does itrequire approval of thecourt.[44]

    The appearance of Atty.

    Alminaza in fact was not even

    to substitute for respondent

    but to act as additional

    counsel.[45]Mrs. Jalandonis

    conformity to having an

    additional lawyer did not

    necessarily mean conformity to

    respondents desire to

    withdraw as counsel.

    Respondents speculations on

    the professional relationship of

    Atty. Alminaza and Mrs.

    Jalandoni find no support in

    the records of this case.

    Respondent should not

    have presumed that his motion

    to withdraw as

    counsel[46]would be granted by

    the court. Yet, he stopped

    appearing as Mrs. Jalandonis

    counsel beginning April 28,

    1999, the first hearing

    date. No order from the court

    was shown to have actually

    granted his motion for

    withdrawal. Only an order

    dated June 4, 1999 had a

    semblance of granting his

    motion:

    When this case was calledfor hearing Atty. Lorenzo

    Alminaza appeared for thedefendants consideringthat Atty. NicanorVillarosa has alreadywithdrawn hisappearance in this casewhich the Courtconsidered it to beapproved as it bears theconformity of thedefendants.[47](emphasisours)

    That Mrs. Jalandoni

    continued with Atty.

    Alminazas professional

    engagement on her behalf

    despite respondents

    withdrawal did not absolve the

    latter of the consequences of

    his unprofessional conduct,

    specially in view of the

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    conflicting interests already

    discussed. Respondent himself

    stated that his withdrawal

    from Civil Case No. 97-9865

    was due to the possibility of a

    conflict of interest.[48]

    Be that as it may, the

    records do not support the

    claim that respondent

    improperly collected P5,000

    from petitioner. Undoubtedly,

    respondent provided

    professional services to Lumot

    A. Jalandoni. Furthermore,

    there is no evidence that the

    documents belonging to Mrs.

    Jalandoni were deliberately

    withheld. The right of an

    attorney to retain possession of

    a clients documents, money or

    other property which may have

    lawfully come into hispossession in his professional

    capacity, until his lawful fees

    and disbursements have been

    fully paid, is well-

    established.[49]

    Finally, we express our

    utter dismay with Lims

    apparent use of his wifes

    community tax certificate

    number in his complaint for

    disbarment against

    respondent.[50]This is not,

    however, the forum to discuss

    this lapse.

    WHEREFORE, in view of

    the foregoing, respondent Atty.

    Nicanor V. Villarosa is hereby

    found GUILTY of violating

    Canon 15 and Canon 22 of the

    Code of Professional

    Responsibility and

    isSUSPENDEDfrom the

    practice of law for one (1) year,

    effective upon receipt of this

    decision, with a STERNWARNINGthat a repetition of

    the same or similar acts will be

    dealt with more severely.

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    Let a copy of this

    resolution be entered into the

    records of respondent and

    furnished to the Office of the

    Clerk of Court, the Office of the

    Bar Confidant, the Integrated

    Bar of the Philippines, and all

    courts in the Philippines, for

    their information and

    guidance.

    SO ORDERED.

    RENATO C. CORONAAssociate Justice

    WE CONCUR:

    REYNATO S. PUNOAssociate Justice

    Chairperson

    ANGELINA SANDOVGUTIERREZ ADOLFO S. AZCU

    AssociateJustice Associ

    ate Justice

    CANCIO C. GARCIAAssociate Justice

    [1] Humberto sued on behalf of Penta Resorts

    Corporation (PRC) and as attorney-in-fact of

    Lumor A. Jalandoni; Resolution 99-002,Special Power of Attorney, rollo, Vol. I, pp.

    18-19.[2] In a manifestation dated May 23, 2002,

    Humberto averred that Atty. Villarosa was

    also a respondent to the following

    administrative cases already submitted for

    resolution:1. Administrative Case No.

    5409: Humberto C. Lim Jr.,

    for and in behalf of PRC and

    Lumot A. Jalandoni, v. Atty.

    Adoniram P. Pamplona and

    Atty. Nicanor V. Villarosa;2. Administrative Case No.

    5410: Lumot A. Jalandoni v.

    Judge Anastacio C. Rufon,

    Atty. Dionisio C. Isidto and

    Atty. Nicanor V. Villarosa.[3] Resolution, rollo(A.C. No. 5463), p. 136.[4] Resolution, rollo(A.C. No. 5502), p. 585.[5] Complaint, rollo, Vol. I, pp. 1-15.[6] Addendum to Complaint dated 04 July

    2000, rollo, Vol. I, pp. 110-115.[7] Verification, rollo, Vol. I, p. 16.[8] RULES OF COURT, Rule 7, Sec. 3.[9]

    Id.[10] Comment to Complainants Complaint

    dated July 4, 2000, rollo, Vol. I, p. 166.[11] Comment, rollo, Vol. I, pp. 169-172.[12] Id.,pp. 173-176.[13] Comment, rollo, Vol. I, p. 177.[14] Id.,pp. 178-180.[15] Id.,p. 178.[16] Id.,p. 181.[17] Id.,p. 192.

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    [18] Report and Recommendation, rollo, Vol. I,

    pp. 268-269.[19] Notice of Resolution, rollo, Vol. I, p. 259.[20] Notice of Resolution, rollo. Vol. II, p. 8

    citing RULES OF COURT, Rule 139-B,

    Section 12 (c). In a resolution dated

    February 12, 2003, this Court notedthe

    resolution of the IBP dated August 3, 2002

    which reversed the report and

    recommendation of the investigating

    commissioner and dismissed the case and

    the resolution dated October 19, 2002 which

    denied complainants motion for

    reconsideration of the decision of the IBP

    Board of Governors as the Board has no

    more jurisdiction to consider and resolve a

    matter already endorsed to this Court. (rollo,

    Vol. II, p. 37) (emphasis ours)[21] Comment, rollo, Vol. I, p. 166; Resolution

    99-002, Special Power of Attorney, rollo,

    Vol. I, pp. 18-19.[22] RULES OF COURT, Rule 139-B, Section

    1. As amended, Bar Matter No. 1960, May,

    1, 2000.[23] Id.[24] RULES OF COURT, Rule 139-B, Sec. 11.[25] Motion to Expunge from the Records

    Respondents Comment to Complainants

    Complaint dated 01 December 2000, rollo,

    Vol. I, p. 243 which was based on

    prescription.[26] Affidavit-Complaint, rollo, Vol. I, p. 57.[27] Id.[28]

    Id.,p. 58.[29] Comment, rollo, Vol. I, p. 172.[30] Civil Case No. 99-10660 TSN (May 5,

    1999), rollo, Vol. I, p. 84.[31] Ernesto L. Pineda, LEGAL AND

    JUDICIAL ETHICS (Central Professional

    Books, Inc., Quezon City, Philippines)

    (1995), 183.[32] Pinedasupra note 31, at 179citingPierce

    v. Palmer, 31 R.I. 432.[33] Hilado v. David, 84 Phil. 569

    (1949);Nombrado v. Hernandez, 135 Phil 5

    (1968);Bautista v. Barrios, 119 Phil 6

    (1963).[34] Ruben E. Agpalo, LEGAL AND

    JUDICIAL ETHICS (2002), 282-283. See

    alsoIn re Dela Rosa,27 Phil. 258

    (1914); Tiania v. Ocampo, A.C. No. 2285 12

    August 1991, 200 SCRA 472.[35] Pinedasupra note 31, at 180citing 5 Am.

    Jur. 296.[36] In re De la Rosa,27 Phil. 258 (1914).[37] Comment, rollo, Vol. I, pp. 184-185.

    [38] Pinedasupra note 31, citing Rule 15.04,

    CPR.[39] Id.Citation omitted.[40] Agpalosupranote 34, at 349.[41] Pinedasupra note 31, at 267.[42] Agpalosupra note 34 citingIn re

    Montagne & Dominguez, 3 Phil. 577

    (1904);Alcantara, Jr. v. Veloso, No. L-

    37844, 30 June 1975, 64 SCRA

    720;Intestate Estate of the Deceased Luis C.

    Domingo Sr. v. Aquino, 148 Phil. 486

    (1971). See also RULES OF COURT, Rule

    138, Section 26.[43] Visitacion v. Manit, 137 Phil. 348

    (1969); G.A. Machineries, Inc. v. Januto,

    151-A Phil. 5 (1973).[44] Agpalosupra note 34 citing Canon 7,

    Canons of Professional Ethics;Laput v. Atty.

    Remotigue and Patalinghug, 116 Phil. 371

    (1962);Bernardino Guerrero & Associate v.

    Tan, 121 Phil. 1239 (1965).[45] Entry of Appearance as Additional

    Counsel dated April 27, 1999, rollo, Vol. I, p.

    206.[46] Motion to Withdraw as Counsel, rollo,

    Vol. I, pp. 30-31.[47] Penned by Judge Anastacio C.

    Rufon, rollo, Vol. I, p. 208.[48] Comment, rollo, Vol. I, p. 172.[49] RULES OF COURT, Rule 138, Sec. 37;

    CPR, Canon 22, Rule 22.02.[50] Rollo, Vol. I., pp. 238-241.

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