SECOND DIVISION.docx
Transcript of SECOND DIVISION.docx
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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
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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
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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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