Complainant vs. vs. Respondent: en Banc

EN BANC
[A.C. No. 9226. June 14, 2016.]

(Formerly CBD 06-1749)
MA. CECILIA CLARISSA C. ADVINCULA , complainant, vs. ATTY.

LEONARDO C. ADVINCULA , respondent.
DECISION
BERSAMIN , J : p
This administrative case stemmed from the complaint for disbarment dated
June 16, 2006 brought to the Integrated Bar of the Philippines (IBP) against Atty.
Leonardo C. Advincula (Atty. Advincula) by no less than his wife, Dr. Ma. Cecilia Clarissa
C. Advincula (Dr. Advincula).
In her complaint, 1 Dr. Advincula has averred that Atty. Advincula committed
unlawful and immoral acts; 2 that while Atty. Advincula was still married to her, he had
extra-marital sexual relations with Ma. Judith Ortiz Gonzaga (Ms. Gonzaga); 3 that the
extra-marital relations bore a child in the name of Ma. Alexandria Gonzaga Advincula
(Alexandria); n 4 that Atty. Advincula failed to give nancial support to their own
children, namely: Ma. Samantha Paulina, Ma. Andrea Lana, and Jose Leandro, despite
his having suf cient nancial resources; 5 that he admitted in the af davit of late
registration of birth of Alexandria that he had contracted another marriage with Ms.
Gonzaga; 6 that even should Atty. Advincula prove that his declaration in the af davit of
late registration of birth was motivated by some reason other than the fact that he truly
entered into a subsequent marriage with Ms. Gonzaga, then making such a declaration
was in itself still unlawful; 7 that siring a child with a woman other than his lawful wife
was conduct way below the standards of morality required of every lawyer; 8 that
contracting a subsequent marriage while the rst marriage had not been dissolved was
also an unlawful conduct; 9 that making a false declaration before a notary public was
an unlawful conduct punishable under the Revised Penal Code; 10 and that the failure of
Atty. Advincula to provide proper support to his children showed his moral character to
be below the standards set by law for every lawyer. 11 Dr. Advincula prayed that Atty.
Advincula be disbarred. 12
In his answer, 13 Atty. Advincula denied the accusations. He asserted that during
the subsistence of his marriage with Dr. Advincula but prior to the birth of their
youngest Jose Leandro, their marital relationship had deteriorated; that they could not
agree on various matters concerning their family, religion, friends, and respective
careers; that Dr. Advincula abandoned the rented family home with the two children to
live with her parents; that despite their separation, he regularly gave nancial support to
Dr. Advincula and their children; that during their separation, he got into a brief
relationship with Ms. Gonzaga; and that he did not contract a second marriage with Ms.
Gonzaga. 14
Atty. Advincula further acknowledged that as a result of the relationship with Ms.
Gonzaga, a child was born and named Alexandra; 15 that in consideration of his moral
obligation as a father, he gave support to Alexandra; 16 that he only learned that the
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birth of Alexandra had been subsequently registered after the child was already
enrolled in school; 17 that it was Ms. Gonzaga who informed him that she had the birth
certi cate of Alexandria altered by a xer in order to enroll the child; 18 that he strived
to reunite his legitimate family, resulting in a reconciliation that begot their third child,
Jose Leandro; that Dr. Advincula once again decided to live with her parents, bringing all
of their children along; that nevertheless, he continued to provide nancial support to
his family and visited the children regularly; that Dr. Advincula intimated to him that she
had planned to take up nursing in order to work as a nurse abroad because her medical
practice here was not lucrative; that he supported his wife's nursing school expenses;
19 that Dr. Advincula left for the United States of America (USA) to work as a nurse; 20
that the custody of their children was not entrusted to him but he agreed to such
arrangement to avoid further division of the family; 21 that during the same period he
was also busy with his law studies; 22 that Dr. Advincula proposed that he and their
children migrate to the USA but he opposed the proposal because he would not be able
to practice his profession there; 23 that Dr. Advincula stated that if he did not want to
join her, then she would just get the children to live with her; 24 that when Dr. Advincula
came home for a vacation he was not able to accompany her due to his extremely busy
schedule as Chief Legal Staff of the General Prosecution Division of the National Bureau
of Investigation; 25 and that when they nally met arguments ared out, during which
she threatened to le a disbarment suit against him in order to force him to allow her to
bring their children to the USA. 26 Atty. Advincula prayed that the disbarment case be
dismissed for utter lack of merit. 27 CAIHTE
Findings and Recommendations of the IBP-CBD

After exhaustive hearings, Commissioner Angelito C. Inocencio of the IBP
Commission on Bar Discipline (CBD) rendered the following ndings and observations,
and recommended the following sanctions, to wit:
FINDINGS AND CONCLUSIONS
Based on Rule 1.01, Canon 1, Code of Professional Responsibility for
Lawyers comes this provisions (sic) : "A lawyer shall not engage in unlawful,
dishonest, immoral or deceitful conduct."
This means that members of the bar ought to possess good moral
character. Remember we must (sic) that the practice of law is a mere privilege.
The moment that a lawyer no longer has the required quali cations foremost of
which is the presence of that character earlier mentioned, the Honorable
Supreme Court may revoke the said practice.
No doubt, Respondent Leanardo (sic) C. Advincula, probably due to the
weakness of the esh, had a romance outside of marriage (sic) with Ma. Judith
Ortiz Gonzaga. This he admitted.
From such affair came a child named Ma. Alexandria. He supported her
as a moral obligation.
How, then, must we categorize his acts? It cannot be denied that he had
committed an adulterous and immoral act.
Was his conduct grossly immoral?
Before answering that, let us recall what the highest Court of the Land
de ned as immoral conduct: "that conduct which is willful, agrant or
shameless and which shows a moral indifference to the opinion of the good
and respectable members of the community." 28

xxx xxx xxx
It is the Commissioner's view that what he did pales when compared to
Respondent Leo Palma's case earlier cited.
In that case, the Honorable Supreme Court stressed that Atty. Palma had
made a mockery of marriage, a sacred institution demanding respect and
dignity.
The highest Court of the Land intoned in the same case: "But what
respondent forgot is that he has also duties to his wife. As a husband, he is
obliged to live with her; observe mutual love, respect and fidelity; and render help
and support."
Deemed favorable to Respondent's cause were the various exhibits he
presented evidencing the fact that he supported their children nancially. Such
conduct could not illustrate him as having championed a grossly immoral
conduct.
Another factor to consider is this: Complainant should share part of the
blame why their marriage soured. Their constant quarrels while together would
indicate that harmony between them was out of the question.
The possibility appears great that she might have displayed a temper
that ignited the flame of discord between them.
Just the same, however, while this Commissioner would not recommend
the supreme penalty of disbarment for to deprive him of such honored station in
life would result in irreparable injury and must require proof of the highest
degree pursuant to the Honorable Supreme Court's ruling in Angeles vs.
Figueroa, 470 SCRA 186 (2005), he must be sanctioned.
And the proof adduced is not of the highest degree.
VI. RECOMMENDATION
In the light of the foregoing disquisition, having, in effect, Respondent's
own admission of having committed an extra-marital affair and fathering a
child, it is respectfully recommended that he be suspended from the practice of
law for at least one month with the additional admonition that should he repeat
the same, a more severe penalty would be imposed.
It would be unjust to impose upon him the extreme penalty of
disbarment. What he did was not grossly immoral. 29
The IBP Board of Governors unanimously adopted the ndings and
recommendations of the Investigating Commissioner with slight modi cation of the
penalty, thus:
RESOLVED to ADOPT and APPROVE, as it is hereby unanimously
ADOPTED and APPROVED, with modi cation , the Report and
Recommendation of the Investigating Commissioner in the above-entitled case,
herein made part of this Resolution as Annex "A" and nding the
recommendation fully supported by the evidence on record and the applicable
laws and rules, and considering respondent's admission of engaging in a simple
immorality and also taking into account the condonation of his extra-marital
affair by his wife, Atty. Leonardo C. Advincula is hereby SUSPENDED from the
practice of law for two (2) months. 30
Atty. Advincula accepted the Resolution of the IBP Board of Governors as nal
and executory, and manifested in his compliance dated February 26, 2013, as follows:
DETACa

1. That on 28 November 2011 this Honorable Court issued a resolution
suspending the undersigned Attorney from the practice of law for two (2)
months under "A.C. No. 9226 (formerly CBD Case No. 06-1749) (Ma. Cecilia
Clarissa C. Advincula vs. Atty. Leonardo C. Advincula) . . .
2. That on 30 October 2012 in faithful compliance with the above order, the
undersigned attorney applied for Leave for two (2) months starting
November up to December thereby refraining himself from the practice of
law as Legal Officer on the National Bureau of Investigation (NBI) . . .
3. That the undersigned Attorney would like to notify this Honorable Court of
his compliance with the above resolution/order so that he may be able to
practice his law profession again. 31
Ruling of the Court
The good moral conduct or character must be possessed by lawyers at the time
of their application for admission to the Bar, and must be maintained until retirement
from the practice of law. In this regard, the Code of Professional Responsibility states:
Rule 1.01 — A lawyer shall not engage in unlawful, dishonest, immoral or
deceitful conduct.
xxx xxx xxx
CANON 7 — A lawyer shall at all times uphold the integrity and dignity of the
legal profession, and support the activities of the Integrated Bar.
xxx xxx xxx
Rule 7.03 — A lawyer shall not engage in conduct that adversely re ects on his
tness to practice law, nor should he, whether in public or private life, behave in
a scandalous manner to the discredit of the legal profession.
Accordingly, it is expected that every lawyer, being an of cer of the Court, must
not only be in fact of good moral character, but must also be seen to be of good moral
character and leading lives in accordance with the highest moral standards of the
community. More speci cally, a member of the Bar and of cer of the Court is required
not only to refrain from adulterous relationships or keeping mistresses but also to
conduct himself as to avoid scandalizing the public by creating the belief that he is
outing those moral standards. If the practice of law is to remain an honorable
profession and attain its basic ideals, whoever is enrolled in its ranks should not only
master its tenets and principles but should also, in their lives, accord continuing delity
to them. The requirement of good moral character is of much greater import, as far as
the general public is concerned, than the possession of legal learning. 32
Immoral conduct has been described as conduct that is so willful, agrant, or
shameless as to show indifference to the opinion of good and respectable members of
the community. To be the basis of disciplinary action, such conduct must not only be
immoral, but grossly immoral, that is, it must be so corrupt as to virtually constitute a
criminal act or so unprincipled as to be reprehensible to a high degree or committed
under such scandalous or revolting circumstances as to shock the common sense of
decency. 33
On different occasions, we have disbarred or suspended lawyers for immorality
based on the surrounding circumstances of each case. In Bustamante-Alejandro v.
Alejandro, 34 the extreme penalty of disbarment was imposed on the respondent who
had abandoned his wife and maintained an illicit affair with another woman. Likewise,
disbarment was the penalty for a lawyer who carried on an extra-marital affair with a
married woman prior to the judicial declaration that her marriage was null and void,
while he himself was also married. 35 In another case we have suspended for two years,
a married attorney who had sired a child with a former client. 36 In Samaniego v. Ferrer ,
37 suspension of six months from the practice of law was meted on the philandering
lawyer.
Yet, we cannot sanction Atty. Advincula with the same gravity. Although his siring
the child with a woman other than his legitimate wife constituted immorality, he
committed the immoral conduct when he was not yet a lawyer. The degree of his
immoral conduct was not as grave than if he had committed the immorality when
already a member of the Philippine Bar. Even so, he cannot escape administrative
liability. Taking all the circumstances of this case into proper context, the Court
considers suspension from the practice of law for three months to be condign and
appropriate.
As a last note, Atty. Advincula manifested in his compliance dated February 26,
2013 that he had immediately accepted the resolution of the IBP Board of Governors
suspending him from the practice of law for two months as nal and executory; that he
had then gone on leave from work in the NBI for two months starting in November and
lasting until the end of December, 2012; and that such leave from work involved
refraining from performing his duties as a Legal Officer of the NBI.
The manifestation of compliance is unacceptable. A lawyer like him ought to
know that it is only the Court that wields the power to discipline lawyers. The IBP Board
of Governors did not possess such power, rendering its recommendation against him
incapable of nality. It is the Court's nal determination of his liability as a lawyer that is
the reckoning point for the service of sanctions and penalties. As such, his supposed
compliance with the recommended two-month suspension could not be satis ed by
his going on leave from his work at the NBI. Moreover, his being a government
employee necessitates that his suspension from the practice of law should include his
suspension from of ce. A leave of absence will not suf ce. This is so considering that
his position mandated him to be a member of the Philippine Bar in good standing . The
suspension from the practice of law will not be a penalty if it does not negate his
continuance in of ce for the period of the suspension. If the rule is different, this
exercise of reprobation of an erring lawyer by the Court is rendered inutile and becomes
a mockery because he can continue to receive his salaries and other bene ts by simply
going on leave for the duration of his suspension from the practice of law. aDSIHc
WHEREFORE , the Court FINDS AND DECLARES ATTY. LEONARDO C.

ADVINCULA GUILTY of immorality; and SUSPENDS him from the practice of law for
a period of THREE MONTHS EFFECTIVE UPON NOTICE HEREOF , with a STERN
WARNING that a more severe penalty shall be imposed should he commit the same
offense or a similar offense; DIRECTS ATTY. ADVINCULA to report the date of his
receipt of the Decision to this Court; and ORDERS the Chief of the Personnel Division of
the National Bureau of Investigation to implement the suspension from of ce of ATTY.
ADVINCULA and to report on his compliance in order to determine the date of
commencement of his suspension from the practice of law.
Let a copy of this Decision be made part of the records of the respondent in the
Of ce of the Bar Con dant; and furnished to the Integrated Bar of the Philippines and
the Civil Service Commission for their information and guidance.
SO ORDERED .
Sereno, C.J., Carpio, Velasco, Jr., Leonardo-de Castro, Perez, Mendoza, Reyes,
Perlas-Bernabe and Caguioa, JJ., concur.
Brion, * Peralta ** and Jardeleza, **** JJ., are on official leave.
Del Castillo, *** J., is on wellness leave.
Leonen, J., see separate concurring opinion.
Separate Opinions
LEONEN , J., concurring :
Before his admission to the bar, respondent Atty. Leonardo C. Advincula — who
was married to complainant Dr. Ma. Cecilia Clarissa C. Advincula — entered into a brief
extra-marital relationship with Ma. Judith Gonzaga, with whom he had a child. 1
The standard of morality and the rules of conduct under the Code of Professional
Responsibility are applicable only to lawyers. These are not enforced against persons
who have not taken the lawyer's oath.
A lawyer's commitment to the lawyer's oath or any standard of morality and
conduct under the Code of Professional Responsibility starts only upon taking that
oath.
Oaths are not senseless utterances. Lawyers who take their oath consent to this
Court's administrative jurisdiction over their actions. The oath is essentially a promise
to act consistently with the value-expectations of this Court.
The signi cance of the oath rests on many assumptions. Taking the oath implies
notice to the person of the standards he or she is expected to abide by. It not only
implies consent to, but also assumes consciousness of those standards. The person
allowed to take the oath is assumed to have the capacity to consider and control his or
her actions accordingly.
For these reasons, violation of the oath or of the Code of Professional
Responsibility is deemed to merit this Court's imposition of a penalty.
When a lawyer takes the oath, any action inconsistent with the oath or with the
Code of Professional Responsibility may be interpreted as a willful disregard of the
standards embodied in the oath or the Code of Professional Responsibility. As
expressed in our Rules of Evidence, a person is presumed to know and intend "the
ordinary consequences of his [or her] voluntary act." 2 The oath places "penalty" under
the great scope of "ordinary consequence" of a lawyer's actions.
On the other hand, without the taking the oath, we cannot presume a person's
conscious and careful consideration of his or her acts in conforming with this Court's
moral and behavioral standards. Without the taking the oath, administrative penalties
do not rise to the level of ordinary consequence of a person's actions.
This Court, as guardian of constitutional rights, should lead other institutions by
exemplifying through its processes the import of the principle of due process. 3 A
person cannot adjust his or her past actions now to conform to the standards imposed
by an oath he or she takes after. It is unreasonable to expect a person to abide by
standards that he or she cannot be presumed to know and apply to actions he or she
can no longer control.
Respondent cannot be expected to abide by the standards imposed by the
lawyer's oath or by the Code of Professional Responsibility. At that time, this Court had
no administrative jurisdiction over his actions. He was not yet a lawyer when he entered
into a relationship with Ma. Judith Gonzaga during his marriage with complainant.
Imposing a penalty for respondent's actions before he took the lawyer's oath
reduces the oath to nothing but a frivolous ceremony. We undermine the signi cance of
the oath if, on that basis, we penalize a person for his or her actions, whether or not he
or she subscribed to that oath.
While possession of good morals is required before and during one's
membership to the bar, 4 the bases and effects of the nding that one meets or does
not meet the standard of morality are different in these instances.
For admission to the bar, good morals are solely based on a person's actions
before his or her admission. A person found to be lacking of the required good morals
is disqualified from membership in the bar. A person's actions, on which the finding that
a person has met the required good morals is based, are looked into for purposes of
admission — not penalty.
On the other hand, for retaining membership in the bar, the lawyer's actions while
he or she is a member are looked into. These acts may be the bases of administrative
penalty. ETHIDa
However, this is not to say that a lawyer's actions before his or her admission
cannot be the bases of his or her removal from the bar. After all, a person who has not
met the moral standards before admission should not even be admitted to the bar.
Thus, if for some reason, grossly immoral acts not considered by this Court during
application are later made known and proved to this Court, this Court may choose to
remove him or her without disregarding evidence of any possible moral transformation
that could have taken place later. 5
However, this Court should not be too quick to judge a person's actions as
grossly immoral so as to constitute unfitness to become a member of the bar.
In Reyes v. Wong , 6 this Court has ruled that for an act to be administratively
punishable for gross immorality, "it must be so corrupt and false as to constitute a
criminal act or so unprincipled as to be reprehensible to a high degree." 7 Further:
[T]he same must be established by clear and convincing proof, disclosing a
case that is free from doubt as to compel the exercise by the Court of its
disciplinary power. . . . Likewise, the dubious character of the act done as well
as the motivation thereof must be clearly demonstrated. 8
There are different aspects of morality. Morality may be religious or secular. In
Perfecto v. Esidera: 9
Morality refers to what is good or right conduct at a given circumstance.
In Estrada v. Escritor, this court described morality as "'how we ought to live' and
why."
Morality may be religious, in which case what is good depends on the
moral prescriptions of a high moral authority or the beliefs of a particular
religion. Religion, as this court de ned in Aglipay v. Ruiz , is "a profession of
faith to an active power that binds and elevates man to his Creator." A conduct
is religiously moral if it is consistent with and is carried out in light of the divine
set of beliefs and obligations imposed by the active power.
Morality may also be secular, in which case it is independent of any
divine moral prescriptions. What is good or right at a given circumstance does
not derive its basis from any religious doctrine but from the independent moral
sense shared as humans. 10 (Citations omitted)
In the same case, this Court stated that the rule against immorality should have a
secular basis. Our jurisdiction to determine what is moral or immoral should only be
limited to conduct that affects public interest. Immoral conduct, if made the basis for
imposing administrative penalty, should refer to conduct as of cers of the court. It
must be of such depravity as to reduce the public's con dence in our laws and in our
judicial system, 11 thus:
The non-establishment clause bars the State from establishing, through
laws and rules, moral standards according to a speci c religion. Prohibitions
against immorality should be based on a purpose that is independent of
religious beliefs. When it forms part of our laws, rules, and policies, morality
must be secular. Laws and rules of conduct must be based on a secular
purpose.
In the same way, this court, in resolving cases that touch on issues of
morality, is bound to remain neutral and to limit the bases of its judgment on
secular moral standards. When laws or rules refer to morals or immorality,
courts should be careful not to overlook the distinction between secular and
religious morality if it is to keep its part in upholding constitutionally guaranteed
rights.
There is the danger of "compelled religion" and, therefore, of negating the
very idea of freedom of belief and non-establishment of religion when religious
morality is incorporated in government regulations and policies. As explained in
Estrada v. Escritor:
Otherwise, if government relies upon religious beliefs in
formulating public policies and morals, the resulting policies and
morals would require conformity to what some might regard as
religious programs or agenda. The non-believers would therefore
be compelled to conform to a standard of conduct buttressed by a
religious belief, i.e., to a "compelled religion" anathema to religious
freedom. Likewise, if government based its actions upon religious
beliefs, it would tacitly approve or endorse that belief and thereby
also tacitly disapprove contrary religious or non-religious views
that would not support the policy. As a result, government will not
provide full religious freedom for all its citizens, or even make it
appear that those whose beliefs are disapproved are second-class
citizens. Expansive religious freedom therefore requires that
government be neutral in matters of religion; governmental
reliance upon religious justi cation is inconsistent with this policy
of neutrality.
xxx xxx xxx
. . . We have jurisdiction over matters of morality only insofar as it
involves conduct that affects the public or its interest. cSEDTC
Thus, for purposes of determining administrative liability of lawyers and

judges, "immoral conduct" should relate to their conduct as of cers of the court.
To be guilty of "immorality" under the Code of Professional Responsibility, a
lawyer's conduct must be so depraved as to reduce the public's con dence in
the Rule of Law. Religious morality is not binding whenever this court decides
the administrative liability of lawyers and persons under this court's supervision.
At best, religious morality weighs only persuasively on us. 12 (Citations omitted)

Respondent had a relationship with another woman during his marriage with
complainant. Out of that extra-marital relationship, a child was born. All these had
happened before he became a lawyer.
Indeed, some may nd respondent's actions before becoming a lawyer immoral.
However, these do not constitute grossly immoral conduct that is so corrupt and
reprehensible for this Court to consider him unfit to be a member of the bar.
The dubious character of respondent's actions and his ill-motive were not clearly
demonstrated. Respondent's extra-marital relationship happened during his and
complainant's temporary separation. At the time of respondent's application for bar
admission, his relationship with his alleged mistress, whom he claimed he did not
marry, had already ended. He was already reunited with complainant, his wife. As a
result of their reconciliation, they even had their third child, Jose Leandro.
In light of respondent's reconciliation with complainant prior to becoming a
lawyer, his actions cannot be described as so depraved as to possibly reduce the
public's confidence in our laws and judicial system.
ACCORDINGLY , I concur in the result.
Footnotes
* On official leave.
** On official leave.
*** On wellness leave.
**** On official leave.
1. Rollo, pp. 1-5.
2. Id. at 1.
3. Id. at 2.
4. Id.
5. Id. at 3.
6. Id.
7. Id.
8. Id.
9. Id. at 4.
10. Id.
11. Id.
12. Id. at 5.
13. Id. at 14-22.
14. Id.
15. Id.

16. Id.
17. Id.
18. Id.
19. Id.
20. Id.
21. Id.
22. Id.
23. Id.
24. Id.
25. Id. at 19.
26. Id.
27. Id. at 22.
28. Id. at 252.
29. Id. at 253-254.
30. Id. at 244.
31. Rollo, unpaginated.
32. Dantes v. Dantes, A.C. No. 6486, September 22, 2004, 438 SCRA 582, 588-589.
33. Narag v. Narag, A.C. No. 3405, June 29, 1998, 291 SCRA 451, 464.
34. A.C. No. 4256, February 13, 2004, 422 SCRA 527, 533.
35. Guevarra v. Eala, A.C. No. 7136, August 1, 2007, 529 SCRA 1, 4.
36. Ferancullo v. Ferancullo, A.C. No. 7214, November 30, 2006, 509 SCRA 1, 17.
37. A.C. No. 7022, June 18, 2008, 555 SCRA 1, 7.
LEONEN, J., concurring:
1. Ponencia, p. 2.
2. RULES OF COURT, Rule 131, sec. 3 (c).
3. CONST., art. III, sec. 1 provides:
SECTION 1. No person shall be deprived of life, liberty, or property without due process of
law, nor shall any person be denied the equal protection of the laws.
4. See Cordova v. Cordova , 259 Phil. 278, 281 (1989) [Per Curiam, En Banc]. See also
Montagne v. Dominguez, 3 Phil. 577, 589 (1904) [Per J. McDonough, En Banc].
5. See Vitug v. Atty. Rongcal, 532 Phil. 615, 633 (2006) [Per J. Tinga, Third Division].
6. 159 Phil. 171 (1975) [Per J. Makasiar, First Division].
7. Id. at 177, citing RULES OF COURT (1964), Rule 138, sec. 27; Soberano v. Villanueva , 116
Phil. 1208, 1212 (1962) [Per J. Concepcion, En Banc]; Mortel v. Aspiras , 100 Phil. 587,
591-593 (1956) [Per J. Bengzon, En Banc]; Royong v. Oblena , 117 Phil. 865, 874
(1963) [Per J. Barrera, En Banc]; Bolivar v. Simbol, 123 Phil. 450, 457-458 (1966) [Per
J. Sanchez, En Banc]; and Quingwa v. Puno , 125 Phil. 831, 838 (1967) [Per J. Regala,
En Banc].
8. Id. at 178, citing Go v. Candoy , 128 Phil. 461, 465 (1967) [Per J. Castro, En Banc].
9. A.M. No. RTJ-15-2417, July 22, 2015 <http://sc.judiciary.gov.ph/pdf/web/viewer.html?

le=/jurisprudence/2015/july2015/RTJ-15-2417.pdf> [Per J. Leonen, Second
Division].
10. Id. at 7-8.
11. Id. at 9.
12. Id. at 8-9.
n Note from the Publisher: Copied verbatim from the of cial copy. Also spelled as "Alexandra"
in some portions of the decision.

EN BANC
[A.C. No. 6622. July 10, 2012.]
MANUEL G. VILLATUYA , complainant, vs . ATTY. BEDE S.

TABALINGCOS , respondent.
DECISION
PER CURIAM : p
In this Complaint for disbarment led on 06 December 2004 with the O ce of the
Bar Con dant, complainant Manuel G. Villatuya (complainant) charges Atty. Bede S.
Tabalingcos (respondent) with unlawful solicitation of cases, violation of the Code of
Professional Responsibility for nonpayment of fees to complainant, and gross immorality
for marrying two other women while respondent's first marriage was subsisting. 1
In a Resolution 2 dated 26 January 2005, the Second Division of this Court required
respondent to le a Comment, which he did on 21 March 2005. 3 The Complaint was
referred to the Integrated Bar of the Philippines (IBP) for investigation, report and
recommendation within sixty (60) days from receipt of the record. 4
On 23 June 2005, the Commission on Bar Discipline of the IBP (Commission) issued
a Notice 5 setting the mandatory conference of the administrative case on 05 July 2005.
During the conference, complainant appeared, accompanied by his counsel and
respondent. They submitted for resolution three issues to be resolved by the Commission
as follows:
1. Whether respondent violated the Code of Professional Responsibility
by nonpayment of fees to complainant,
2. Whether respondent violated the rule against unlawful solicitation, and
3. Whether respondent is guilty of gross immoral conduct for having
married thrice. 6
IcaEDC
The Commission ordered the parties to submit their respective veri ed Position
Papers. Respondent led his veri ed Position Paper, 7 on 15 July 2005 while complainant
submitted his on 01 August 2005. 8
Complainant's Accusations
Complainant averred that on February 2002, he was employed by respondent as a
nancial consultant to assist the latter on technical and nancial matters in the latter's
numerous petitions for corporate rehabilitation led with different courts. Complainant
claimed that they had a verbal agreement whereby he would be entitled to P50,000 for
every Stay Order issued by the court in the cases they would handle, in addition to ten
percent (10%) of the fees paid by their clients. He alleged that, from February to December
2002, respondent was able to rake in millions of pesos from the corporate rehabilitation
cases they were working on together. Complainant also claimed that he was entitled to the
amount of P900,000 for the 18 Stay Orders issued by the courts as a result of his work
CD Technologies Asia, Inc. 2018 cdasiaonline.com
with respondent, and a total of P4,539,000 from the fees paid by their clients. 9
Complainant appended to his Complaint several annexes supporting the computation of
the fees he believes are due him.
Complainant alleged that respondent engaged in unlawful solicitation of cases in
violation of Section 27 of the Code of Professional Responsibility. Allegedly respondent
set up two nancial consultancy rms, Jesi and Jane Management, Inc. and Christmel
Business Link, Inc., and used them as fronts to advertise his legal services and solicit
cases. Complainant supported his allegations by attaching to his Position Paper the
Articles of Incorporation of Jesi and Jane, 1 0 letter-proposals to clients signed by
respondent on various dates 1 1 and proofs of payment made to the latter by their clients.
12
On the third charge of gross immorality, complainant accused respondent of

committing two counts of bigamy for having married two other women while his rst
marriage was subsisting. He submitted a Certi cation dated 13 July 2005 issued by the
O ce of the Civil Registrar General-National Statistics O ce (NSO) certifying that Bede S.
Tabalingcos, herein respondent, contracted marriage thrice: rst, on 15 July 1980 with
Pilar M. Lozano, which took place in Dasmariñas, Cavite; the second time on 28 September
1987 with Ma. Rowena Garcia Piñon in the City of Manila; and the third on 07 September
1989 with Mary Jane Elgincolin Paraiso in Ermita, Manila. 1 3
cHDEaC
Respondent's Defense
In his defense, respondent denied the charges against him. He asserted that
complainant was not an employee of his law rm — Tabalingcos and Associates Law
O c e 1 4 — but of Jesi and Jane Management, Inc., where the former is a major
stockholder. 1 5 Respondent alleged that complainant was unprofessional and
incompetent in performing his job as a nancial consultant, resulting in the latter's
dismissal of many rehabilitation plans they presented in their court cases. 1 6 Respondent
also alleged that there was no verbal agreement between them regarding the payment of
fees and the sharing of professional fees paid by his clients. He proffered documents
showing that the salary of complainant had been paid. 1 7
As to the charge of unlawful solicitation, respondent denied committing any. He
contended that his law rm had an agreement with Jesi and Jane Management, Inc.,
whereby the rm would handle the legal aspect of the corporate rehabilitation case; and
that the latter would attend to the nancial aspect of the case' such as the preparation of
the rehabilitation plans to be presented in court. To support this contention, respondent
attached to his Position Paper a Joint Venture Agreement dated 10 December 2005
entered into by Tabalingcos and Associates Law O ces and Jesi and Jane Management,
Inc.; 1 8 and an A davit executed by Leoncio Balena, Vice-President for Operations of the
said company. 1 9
On the charge of gross immorality, respondent assailed the A davit submitted by
William Genesis, a dismissed messenger of Jesi and Jane Management, Inc., as having no
probative value, since it had been retracted by the a ant himself. 2 0 Respondent did not
speci cally address the allegations regarding his alleged bigamous marriages with two
other women.
On 09 January 2006, complainant led a Motion to Admit Copies of 3 Marriage
Contracts. 2 1 To the said Motion, he attached the certi ed true copies of the Marriage
Contracts referred to in the Certi cation issued by the NSO. 2 2 The appended Marriage
Contracts matched the dates, places and names of the contracting parties indicated in the
earlier submitted NSO Certi cation of the three marriages entered into by respondent. The
rst marriage contract submitted was a marriage that took place between respondent and
Pilar M. Lozano in Dasmariñas, Cavite, on 15 July 1980. 2 3 The second marriage contract
was between respondent and Ma. Rowena G. Piñon, and it took place at the Metropolitan
Trial Court Compound of Manila on 28 September 1987. 2 4 The third Marriage Contract
referred to a marriage between respondent and Mary Jane E. Paraiso, and it took place on
7 September 1989 in Ermita, Manila. In the second and third Marriage Contracts,
respondent was described as single under the entry for civil status. TcHEaI
On 16 January 2006, respondent submitted his Opposition to the Motion to Admit

led by complainant, claiming that the document was not marked during the mandatory
conference or submitted during the hearing of the case. 2 5 Thus, respondent was
supposedly deprived of the opportunity to controvert those documents. 2 6 He disclosed
that criminal cases for bigamy were led against him by the complainant before the O ce
of the City Prosecutor of Manila. Respondent further informed the Commission that he had
led a Petition to Declare Null and Void the Marriage Contract with Rowena Piñon at the
Regional Trial Court (RTC) of Biñan, Laguna, where it was docketed as Civil Case No. B-
3270. 2 7 He also led another Petition for Declaration of Nullity of Marriage Contract with
Pilar Lozano at the RTC-Calamba, where it was docketed as Civil Case No. B-3271. 2 8 In
both petitions, he claimed that he had recently discovered that there were Marriage
Contracts in the records of the NSO bearing his name and allegedly executed with Rowena
Piñon and Pilar Lozano on different occasions. He prayed for their annulment, because
they were purportedly null and void.
On 17 September 2007, in view of its reorganization, the Commission scheduled a
clari catory hearing on 20 November 2007. 2 9 While complainant manifested to the
Commission that he would not attend the hearing, 3 0 respondent manifested his
willingness to attend and moved for the suspension of the resolution of the administrative
case against the latter. Respondent cited two Petitions he had led with the RTC, Laguna,
seeking the nulli cation of the Marriage Contracts he discovered to be bearing his name.
31
On 10 November 2007, complainant submitted to the Commission duplicate

original copies of two (2) Informations led with the RTC of Manila against respondent,
entitled "People of the Philippines vs. Atty. Bede S. Tabalingcos." 3 2 The rst criminal case,
docketed as Criminal Case No. 07-257125, was for bigamy for the marriage contracted by
respondent with Ma. Rowena Garcia Piñon while his marriage with Pilar Lozano was still
valid. 3 3 The other one, docketed as Criminal Case No. 07-257126, charged respondent
with having committed bigamy for contracting marriage with Mary Jane Elgincolin Paraiso
while his marriage with Pilar Lozano was still subsisting. 3 4 Each of the Informations
recommended bail in the amount of P24,000 for his provisional liberty as accused in the
criminal cases. 3 5 cCaEDA
On 20 November 2007, only respondent attended the clari catory hearing. In the
same proceeding, the Commission denied his Motion to suspend the proceedings pending
the outcome of the petitions for nulli cation he had led with the RTC-Laguna. Thus, the
Commission resolved that the administrative case against him be submitted for
resolution. 3 6
IBP's Report and Recommendation
On 27 February 2008, the Commission promulgated its Report and
Recommendation addressing the speci c charges against respondent. 3 7 The rst charge,
for dishonesty for the nonpayment of certain shares in the fees, was dismissed for lack of
merit. The Commission ruled that the charge should have been led with the proper courts
since it was only empowered to determine respondent's administrative liability. On this
matter, complainant failed to prove dishonesty on the part of respondent. 3 8 On the
second charge, the Commission found respondent to have violated the rule on the
solicitation of client for having advertised his legal services and unlawfully solicited cases.
It recommended that he be reprimanded for the violation. It failed, though, to point out
exactly the specific provision he violated. 3 9
As for the third charge, the Commission found respondent to be guilty of gross
immorality for violating Rules 1.01 and 7.03 of the Code of Professional Responsibility and
Section 27 of Rule 138 of the Rules of Court. It found that complainant was able to prove
through documentary evidence that respondent committed bigamy twice by marrying two
other women while the latter's rst marriage was subsisting. 4 0 Due to the gravity of the
acts of respondent, the Commission recommended that he be disbarred, and that his
name be stricken off the roll of attorneys. 4 1
On 15 April 2008, the IBP Board of Governors, through its Resolution No. XVIII-
2008-154, adopted and approved the Report and Recommendation of the Investigating
Commissioner. 4 2 On 01 August 2008, respondent led a Motion for Reconsideration,
arguing that the recommendation to disbar him was premature. He contends that the
Commission should have suspended the disbarment proceedings pending the resolution
of the separate cases he had led for the annulment of the marriage contracts bearing his
name as having entered into those contracts with other women. He further contends that
the evidence proffered by complainant to establish that the latter committed bigamy was
not substantial to merit the punishment of disbarment. Thus, respondent moved for the
reconsideration of the resolution to disbar him and likewise moved to archive the
administrative proceedings pending the outcome of the Petitions he separately led with
the RTC of Laguna for the annulment of Marriage Contracts. 4 3 SEAHcT
On 26 June 2011, the IBP Board of Governors denied the Motions for
Reconsideration and a rmed their Resolution dated 15 April 2008 recommending
respondent's disbarment. 4 4
The Court's Ruling
The Court affirms the recommendations of the IBP.
First Charge:
Dishonesty for nonpayment of share in the fees
While we a rm the IBP's dismissal of the rst charge against respondent, we do
not concur with the rationale behind it.
The rst charge of complainant against respondent for the nonpayment of the
former's share in the fees, if proven to be true is based on an agreement that is violative of
Rule 9.02 4 5 of the Code of Professional Responsibility. A lawyer is proscribed by the Code
to divide or agree to divide the fees for legal services rendered with a person not licensed
to practice law. Based on the allegations, respondent had agreed to share with
complainant the legal fees paid by clients that complainant solicited for the respondent.
Complainant, however, failed to proffer convincing evidence to prove the existence of that
agreement.
We ruled in Tan Tek Beng v. David 4 6 that an agreement between a lawyer and a
layperson to share the fees collected from clients secured by the layperson is null and
void, and that the lawyer involved may be disciplined for unethical conduct. Considering
that complainant's allegations in this case had not been proven, the IBP correctly
dismissed the charge against respondent on this matter.
Second Charge:
Unlawful solicitation of clients
Complainant charged respondent with unlawfully soliciting clients and advertising
legal services through various business entities. Complainant submitted documentary
evidence to prove that Jesi & Jane Management, Inc. and Christmel Business Link, Inc.
were owned and used as fronts by respondent to advertise the latter's legal services and
to solicit clients. In its Report, the IBP established the truth of these allegations and ruled
that respondent had violated the rule on the solicitation of clients, but it failed to point out
the specific provision that was breached. aADSIc
A review of the records reveals that respondent indeed used the business entities
mentioned in the report to solicit clients and to advertise his legal services, purporting to
be specialized in corporate rehabilitation cases. Based on the facts of the case, he violated
Rule 2.03 4 7 of the Code, which prohibits lawyers from soliciting cases for the purpose of
profit.
A lawyer is not prohibited from engaging in business or other lawful occupation.
Impropriety arises, though, when the business is of such a nature or is conducted in such a
manner as to be inconsistent with the lawyer's duties as a member of the bar. This
inconsistency arises when the business is one that can readily lend itself to the
procurement of professional employment for the lawyer; or that can be used as a cloak for
indirect solicitation on the lawyer's behalf; or is of a nature that, if handled by a lawyer,
would be regarded as the practice of law. 4 8
It is clear from the documentary evidence submitted by complainant that Jesi &
Jane Management, Inc., which purports to be a nancial and legal consultant, was indeed a
vehicle used by respondent as a means to procure professional employment; speci cally
for corporate rehabilitation cases. Annex "C" 4 9 of the Complaint is a letterhead of Jesi &
Jane Management, Inc., which proposed an agreement for the engagement of legal
services. The letter clearly states that, should the prospective client agree to the proposed
fees, respondent would render legal services related to the former's loan obligation with a
bank. This circumvention is considered objectionable and violates the Code, because the
letter is signed by respondent as President of Jesi & Jane Management, Inc., and not as
partner or associate of a law firm.
Rule 15.08 5 0 of the Code mandates that the lawyer is mandated to inform the client
whether the former is acting as a lawyer or in another capacity. This duty is a must in those
occupations related to the practice of law. The reason is that certain ethical
considerations governing the attorney-client relationship may be operative in one and not
in the other. 5 1 In this case, it is confusing for the client if it is not clear whether respondent
is offering consultancy or legal services.
Considering, however, that complainant has not proven the degree of prevalence of
this practice by respondent, we a rm the recommendation to reprimand the latter for
violating Rules 2.03 and 15.08 of the Code.

Third Charge:
Bigamy
The third charge that respondent committed bigamy twice is a serious accusation.
To substantiate this allegation, complainant submitted NSO-certi ed copies of the
Marriage Contracts entered into by respondent with three (3) different women. The latter
objected to the introduction of these documents, claiming that they were submitted after
the administrative case had been submitted for resolution, thus giving him no opportunity
to controvert them. 5 2 We are not persuaded by his argument. TEcCHD
We have consistently held that a disbarment case is sui generis. Its focus is on the
quali cation and tness of a lawyer to continue membership in the bar and not the
procedural technicalities in filing the case. Thus, we explained in Garrido v. Garrido: 5 3
Laws dealing with double jeopardy or with procedure — such as the
veri cation of pleadings and prejudicial questions, or in this case, prescription of
offenses or the ling of a davits of desistance by the complainant — do not
apply in the determination of a lawyer's quali cations and tness for
membership in the Bar. We have so ruled in the past and we see no reason to
depart from this ruling. First, admission to the practice of law is a component of
the administration of justice and is a matter of public interest because it involves
service to the public. The admission quali cations are also quali cations for the
continued enjoyment of the privilege to practice law. Second, lack of
qualifications or the violation of the standards for the practice of law, like criminal
cases, is a matter of public concern that the State may inquire into through this
Court.
In disbarment proceedings, the burden of proof rests upon the complainant. For the
court to exercise its disciplinary powers, the case against the respondent must be
established by convincing and satisfactory proof. 5 4 In this case, complainant submitted
NSO-certi ed true copies to prove that respondent entered into two marriages while the
latter's rst marriage was still subsisting. While respondent denied entering into the
second and the third marriages, he resorted to vague assertions tantamount to a negative
pregnant. He did not dispute the authenticity of the NSO documents, but denied that he
contracted those two other marriages. He submitted copies of the two Petitions he had
led separately with the RTC of Laguna — one in Biñan and the other in Calamba — to
declare the second and the third Marriage Contracts null and void. 5 5
We find him guilty of gross immorality under the Code.
We cannot give credence to the defense proffered by respondent. He has not
disputed the authenticity or impugned the genuineness of the NSO-certi ed copies of the
Marriage Contracts presented by complainant to prove the former's marriages to two
other women aside from his wife. For purposes of this disbarment proceeding, these
Marriage Contracts bearing the name of respondent are competent and convincing
evidence proving that he committed bigamy, which renders him un t to continue as a
member of the bar. The documents were certi ed by the NSO, which is the o cial
repository of civil registry records pertaining to the birth, marriage and death of a person.
Having been issued by a government agency, the NSO certi cation is accorded much
evidentiary weight and carries with it a presumption of regularity. In this case, respondent
has not presented any competent evidence to rebut those documents. cTCaEA
According to the respondent, after the discovery of the second and the third
marriages, he led civil actions to annul the Marriage Contracts. We perused the attached
Petitions for Annulment and found that his allegations therein treated the second and the
third marriage contracts as ordinary agreements, rather than as special contracts
contemplated under the then Civil Code provisions on marriage. He did not invoke any
grounds in the Civil Code provisions on marriage, prior to its amendment by the Family
Code. Respondent's regard for marriage contracts as ordinary agreements indicates either
his wanton disregard of the sanctity of marriage or his gross ignorance of the law on what
course of action to take to annul a marriage under the old Civil Code provisions.
What has been clearly established here is the fact that respondent entered into
marriage twice while his rst marriage was still subsisting. In Bustamante-Alejandro v.
Alejandro, 5 6 we held thus:
[W]e have in a number of cases disciplined members of the Bar whom we
found guilty of misconduct which demonstrated a lack of that good moral
character required of them not only as a condition precedent for their admission
to the Bar but, likewise, for their continued membership therein. No distinction has
been made as to whether the misconduct was committed in the lawyer's
professional capacity or in his private life. This is because a lawyer may not
divide his personality so as to be an attorney at one time and a mere citizen at
another. He is expected to be competent, honorable and reliable at all times since
he who cannot apply and abide by the laws in his private affairs, can hardly be
expected to do so in his professional dealings nor lead others in doing so.
Professional honesty and honor are not to be expected as the accompaniment of
dishonesty and dishonor in other relations. The administration of justice, in which
the lawyer plays an important role being an o cer of the court, demands a high
degree of intellectual and moral competency on his part so that the courts and
clients may rightly repose confidence in him.
Respondent exhibited a deplorable lack of that degree of morality required of him as

a member of the bar. He made a mockery of marriage, a sacred institution demanding
respect and dignity. 5 7 His acts of committing bigamy twice constituted grossly immoral
conduct and are grounds for disbarment under Section 27, Rule 138 of the Revised Rules
of Court. 5 8
Thus, we adopt the recommendation of the IBP to disbar respondent and order that
his name be stricken from the Roll of Attorneys.
WHEREFORE , this Court resolves the following charges against Atty. Bede S.
Tabalingcos as follows:
1. The charge of dishonesty is DISMISSED for lack of merit.
2. Respondent is REPRIMANDED for acts of illegal advertisement and
solicitation.
3. Atty. Bede S. Tabalingcos is DISBARRED for engaging in bigamy, a
grossly immoral conduct.
Let a copy of this Decision be attached to the personal records of Atty. Bede S.
Tabalingcos in the O ce of the Bar Con dant, and another copy furnished to the
Integrated Bar of the Philippines. aHTEIA
The Clerk of Court is directed to strike out the name of Bede S. Tabalingcos from
the Roll of Attorneys.

SO ORDERED.
Carpio, Leonardo-de Castro, Brion, Peralta, Del Castillo, Villarama, Jr., Perez,
Mendoza, Sereno, Reyes and Perlas-Bernabe, JJ., concur.
Velasco, Jr., J., took no part — relationship to a party.
Bersamin and Abad, JJ., are on leave.
Footnotes
1.Rollo, p. 1.
2.Id. at 22.
3.Id. at 22-35.
4.Id. at 36.
5.Commission on Bar Discipline Records, Vol. II, p. 1.
6.Id. at 3.
7.Id. at 60.
8.Id. at 186.
9.Id. at 1.
10.Id. at 10-20.
11.Id. at 5 & 6.
12.Commission on Bar Discipline Records, Vol. II, pp. 202-212.
13.Id. at 195, 201.
14.Id. at 61.
15.Id. at 66.
16.Id. at 67.
17.Id. at 78-82.
18.Id. at 74.
19.Id. at 75.
20.Id. at 10.
21.Id. at 215.
22.Id. at 217-219.
23.Id. at 217.
24.Id. at 218.
25.Id. at 220.

26.Id. at 221.
27.Id. at 226.
28.Id. at 231.
29.Id. at 237.
30.Id. at 238.
31.Id. at 244.
32.Id. at 239.
33.Id. at 240.
34.Id. at 256.
35.Id. at 241 & 243.
36.Id. at 256.
37.Commission on Bar Discipline Records Vol. III, pp. 2-13. The Commission's Report and
Recommendation dated 27 February 2008 was penned by Commissioner Wilfredo E.J.E.
Reyes.
38.Id. at 8.
39.Id.
40.Id. at 9-10.
41.Id. at 13.
42.Id. at 1.
43.Id. at 14-27.
44.On the 36th page succeeding Commission on Bar Discipline Records, Vol. III (no pagination
on the rollo).
45.CODE OF PROFESSIONAL RESPONSIBILITY, Rule 9.02 — A lawyer shall not divide or

stipulate to divide a fee for legal services with persons not licensed to practice law,
except:
(a) Where there is a pre-existing agreement with a partner or associate that, upon the
latter's death, money shall be paid over a reasonable period of time to his estate or to
persons specified in the agreement; or
(b) Where a lawyer undertakes to complete unfinished legal business of a deceased

lawyer; or
(c) Where a lawyer or law firm includes non-lawyer employees in a retirement plan even
if the plan is based in whole or in part, on a profit sharing agreement.
46.211 Phil. 547 (1983).
47.CODE OF PROFESSIONAL RESPONSIBILITY, Rule 2.03 — A lawyer shall not do or permit to

be done any act designed primarily to solicit legal business.
48.RUBEN A. AGPALO, LEGAL AND JUDICIAL ETHICS, 124 (2009), citing A.B.A. Op. 57 (19
March 1932); Re, 97 A2d 627, 39 ALR2d 1032 (1953).
49.Rollo, p. 6.
50.CODE OF PROFESSIONAL RESPONSIBILITY, Rule 15.08. — A lawyer who is engaged in

another profession or occupation concurrently with the practice of law shall make clear
to his client whether he is acting as a lawyer or in another capacity.
51.AGPALO, supra note 48.
52.Commission on Bar Discipline Records, Vol. II, p. 221.
53.A.C. No. 6593, 04 February 2010, 611 SCRA 508.
54.Aba v. De Guzman, A.C. No. 7649, 14 December 2011.
55.Commission on Bar Discipline Records Volume II, pp. 226-234.
56.A.C. No. 4256, 467 Phil. 139 (2004).
57.Cojuangco, Jr. v. Palma, A.C. No. 2474, 501 Phil. 1 (2005).
58.Rule 138, Section 27. Disbarment or suspension of attorneys by Supreme Court; grounds
therefor. — A member of the bar may be disbarred or suspended from his office as
attorney by the Supreme Court for any deceit, malpractice, or other gross misconduct in
such office, grossly immoral conduct, or by reason of his conviction of a crime involving
moral turpitude, or for any violation of the oath which he is required to take before the
admission to practice, or for a wilfull disobedience of any lawful order of a superior
court, or for corruptly or willfully appearing as an attorney for a party to a case without
authority so to do. The practice of soliciting cases at law for the purpose of gain, either
personally or through paid agents or brokers, constitutes malpractice.

EN BANC
[A.C. No. 7332. June 18, 2013.]
EDUARDO A. ABELLA , complainant, vs . RICARDO G. BARRIOS, JR. ,

respondent.
DECISION
PERLAS-BERNABE , J : p
For the Court's resolution is an administrative complaint 1 for disbarment led by

Eduardo A. Abella (complainant) against Ricardo G. Barrios, Jr. (respondent) based on the
latter's violation of Rules 1.01 and 1.03, Canon 1, and Rule 6.02, Canon 6 of the Code of
Professional Responsibility (Code).
The Facts
On January 21, 1999, complainant led an illegal dismissal case against Philippine
Telegraph and Telephone Corporation (PT&T) before the Cebu City Regional Arbitration
Branch (RAB) of the National Labor Relations Commission (NLRC), docketed as RAB-VII-
01-0128-99. Finding merit in the complaint, Labor Arbiter (LA) Ernesto F. Carreon, through
a Decision dated May 13, 1999, 2 ordered PT&T to pay complainant P113,100.00 as
separation pay and P73,608.00 as backwages. Dissatis ed, PT&T appealed the LA's
Decision to the NLRC.
In a Decision dated September 12, 2001, 3 the NLRC set aside LA Carreon's ruling
and instead ordered PT&T to reinstate complainant to his former position and pay him
backwages, as well as 13th month pay and service incentive leave pay, including moral
damages and attorney's fees. On reconsideration, it modi ed the amounts of the aforesaid
monetary awards but still maintained that complainant was illegally dismissed. 4
Consequently, PT&T filed a petition for certiorari before the Court of Appeals (CA).
In a Decision dated September 18, 2003 (CA Decision), 5 the CA a rmed the NLRC's
ruling with modi cation, ordering PT&T to pay complainant separation pay in lieu of
reinstatement. Complainant moved for partial reconsideration, claiming that all his years of
service were not taken into account in the computation of his separation pay and
backwages. The CA granted the motion and thus, remanded the case to the LA for the
same purpose. 6 On July 19, 2004, the CA Decision became final and executory. 7
Complainant alleged that he led a Motion for Issuance of a Writ of Execution
before the Cebu City RAB on October 25, 2004. At this point, the case had already been
assigned to the new LA, herein respondent. After the lapse of ve (5) months,
complainant's motion remained unacted, prompting him to le a Second Motion for
Execution on March 3, 2005. Eight (8) months thereafter, still, there was no action on
complainant's motion. Thus, on November 4, 2005, complainant proceeded to
respondent's o ce to personally follow-up the matter. In the process, complainant and
respondent exchanged notes on how much the former's monetary awards should be;
however, their computations differed. To complainant's surprise, respondent told him that
the matter could be "easily xed" and thereafter, asked "how much is mine?" Despite his
shock, complainant offered the amount of P20,000.00, but respondent replied: "make it
P30,000.00." By force of circumstance, complainant acceded on the condition that
respondent would have to wait until he had already collected from PT&T. Before
complainant could leave, respondent asked him for some cash, compelling him to give the
latter P1,500.00. 8
On November 7, 2005, respondent issued a writ of execution, 9 directing the sheriff
to proceed to the premises of PT&T and collect the amount of P1,470,082.60, inclusive of
execution and deposit fees. PT&T moved to quash 1 0 the said writ which was, however,
denied through an Order dated November 22, 2005. 1 1 Unfazed, PT&T led a Supplemental
Motion to Quash dated December 2, 2005, 1 2 the contents of which were virtually identical
to the one respondent earlier denied. During the hearing of the said supplemental motion
on December 9, 2005, respondent rendered an Order 1 3 in open court, recalling the rst
writ of execution he issued on November 7, 2005. He con rmed the December 9, 2005
Order through a Certi cation dated December 14, 2005 1 4 and eventually, issued a new
writ of execution 1 5 wherein complainant's monetary awards were reduced from
P1,470,082.60 to P114,585.00, inclusive of execution and deposit fees.
Aggrieved, complainant led on December 16, 2005 a Petition for Injunction before
the NLRC. In a Resolution dated March 14, 2006, 1 6 the NLRC annulled respondent's
December 9, 2005 Order, stating that respondent had no authority to modify the CA
Decision which was already final and executory. 1 7
Aside from instituting a criminal case before the O ce of the Ombudsman, 1 8
complainant led the instant disbarment complaint 1 9 before the Integrated Bar of the
Philippines (IBP), averring that respondent violated the Code of Professional
Responsibility for (a) soliciting money from complainant in exchange for a favorable
resolution; and (b) issuing a wrong decision to give benefit and advantage to PT&T.
In his Comment, 2 0 respondent denied the abovementioned accusations,
maintaining that he merely implemented the CA Decision which did not provide for the
payment of backwages. He also claimed that he never demanded a single centavo from
complainant as it was in fact the latter who offered him the amount of P50,000.00.
The Recommendation and Action of the IBP
In the Report and Recommendation dated May 30, 2008, 2 1 IBP Investigating
Commissioner Rico A. Limpingco (Commissioner Limpingco) found that respondent tried
to twist the meaning of the CA Decision out of all logical, reasonable and grammatical
context in order to favor PT&T. 2 2 He further observed that the con uence of events in this
case shows that respondent deliberately left complainant's efforts to execute the CA
Decision unacted upon until the latter agreed to give him a portion of the monetary award
thereof. Notwithstanding their agreement, immoral and illegal as it was, respondent later
went as far as turning the proceedings into some bidding war which eventually resulted
into a resolution in favor of PT&T. In this regard, respondent was found to be guilty of
gross immorality and therefore, Commissioner Limpingco recommended that he be
disbarred. 2 3
On July 17, 2008, the IBP Board of Governors passed Resolution No. XVIII-2008-345
(IBP Resolution), 2 4 adopting and approving Commissioner Limpingco's recommendation,
to wit:
RESOLVED to ADOPT and APPROVE, as it is hereby ADOPTED and APPROVED
the Report and Recommendation of the Investigating Commissioner of the
above-entitled case, herein made part of this Resolution as Annex "A"; and
nding the recommendation fully supported by the evidence on record and the
applicable laws and rules, and for Respondent's violation of the provisions of
the Code of Professional Responsibility, the Anti-Graft and Corrupt Practices Act
and the Code of Ethical Standards for Public O cials and Employees, Atty.
Ricardo G. Barrios, Jr. is hereby DISBARRED . 2 5
Issue
The sole issue in this case is whether respondent is guilty of gross immorality for
his violation of Rules 1.01 and 1.03, Canon 1, and Rule 6.02, Canon 6 of the Code.
The Court's Ruling
The Court concurs with the ndings and recommendation of Commissioner
Limpingco as adopted by the IBP Board of Governors.
The pertinent provisions of the Code provide:
CANON 1 — A LAWYER SHALL UPHOLD THE CONSTITUTION, OBEY THE LAWS
OF THE LAND AND PROMOTE RESPECT FOR LAW AND LEGAL PROCESSES.
Rule 1.01 — A lawyer shall not engage in unlawful, dishonest, immoral or

deceitful conduct.
xxx xxx xxx

Rule 1.03 — A lawyer shall not, for any corrupt motive or interest, encourage any
suit or proceeding or delay any man's cause.
CANON 6 — THESE CANONS SHALL APPLY TO LAWYERS IN GOVERNMENT

SERVICE IN THE DISCHARGE OF THEIR OFFICIAL TASKS.
xxx xxx xxx
Rule 6.02 — A lawyer in the government service shall not use his public position
to promote or advance his private interests, nor allow the latter to interfere with
his public duties.
The above-cited rules, which are contained under Chapter 1 of the Code, delineate
the lawyer's responsibility to society: Rule 1.01 engraves the overriding prohibition against
lawyers from engaging in any unlawful, dishonest, immoral and deceitful conduct; Rule
1.03 proscribes lawyers from encouraging any suit or proceeding or delaying any man's
cause for any corrupt motive or interest; meanwhile, Rule 6.02 is particularly directed to
lawyers in government service, enjoining them from using one's public position to: (1)
promote private interests; (2) advance private interests; or (3) allow private interests to
interfere with public duties. 2 6 It is well to note that a lawyer who holds a government
o ce may be disciplined as a member of the Bar only when his misconduct also
constitutes a violation of his oath as a lawyer. 2 7
In this light, a lawyer's compliance with and observance of the above-mentioned
rules should be taken into consideration in determining his moral tness to continue in the
practice of law.
To note, "the possession of good moral character is both a condition precedent and
a continuing requirement to warrant admission to the Bar and to retain membership in the
legal profession." 2 8 This proceeds from the lawyer's duty to observe the highest degree of
morality in order to safeguard the Bar's integrity. 2 9 Consequently, any errant behavior on
the part of a lawyer, be it in the lawyer's public or private activities, which tends to show
de ciency in moral character, honesty, probity or good demeanor, is su cient to warrant
suspension or disbarment. 3 0
In this case, records show that respondent was merely tasked to re-compute the
monetary awards due to the complainant who sought to execute the CA Decision which
had already been nal and executory. When complainant moved for execution — twice at
that — respondent slept on the same for more than a year. It was only when complainant
paid respondent a personal visit on November 4, 2005 that the latter speedily issued a writ
of execution three (3) days after, or on November 7, 2005. Based on these incidents, the
Court observes that the sudden dispatch in respondent's action soon after the aforesaid
visit casts serious doubt on the legitimacy of his denial, i.e., that he did not extort money
from the complainant.
The incredulity of respondent's claims is further bolstered by his complete
turnaround on the quashal of the November 7, 2005 writ of execution.
To elucidate, records disclose that respondent denied PT&T's initial motion to
quash through an Order dated November 22, 2005 but later reversed such order in open
court on the basis of PT&T's supplemental motion to quash which was a mere rehash of
the rst motion that was earlier denied. As a result, respondent recalled his earlier orders
and issued a new writ of execution, reducing complainant's monetary awards from
P1,470,082.60 to P114,585.00, inclusive of execution and deposit fees.
To justify the same, respondent contends that he was merely implementing the CA
Decision which did not provide for the payment of backwages. A plain and cursory reading,
however, of the said decision belies the truthfulness of the foregoing assertion. On point,
the dispositive portion of the CA Decision reads:
WHEREFORE , the petition is PARTIALLY GRANTED . The decision of
public respondent National Labor Relations Commission dated September 12,
2001 and October 8, 2002 are AFFIRMED with the MODIFICATION , ordering
petitioner PT&T to pay private respondent Eduardo A. Abella separation pay (as
computed by the Labor Arbiter) in lieu of reinstatement. 3 1
Noticeably, the CA a rmed with modi cation the NLRC's rulings dated September
12, 2001 and October 8, 2002 which both explicitly awarded backwages and other
unpaid monetary benefits to complainant. 3 2 The only modi cation was with respect to
the order of reinstatement as pronounced in both NLRC's rulings which was changed by
the CA to separation pay in view of the strained relations between the parties as well as
the supervening removal of complainant's previous position. 3 3 In other words, the portion
of the NLRC's rulings which awarded backwages and other monetary bene ts subsisted
and the modi cation pertained only to the CA's award of separation pay in lieu of the
NLRC's previous order of reinstatement. This conclusion, palpable as it is, can be easily
deduced from the records.
Lamentably, respondent tried to distort the ndings of the CA by quoting portions of
its decision, propounding that the CA's award of separation pay denied complainant's
entitlement to any backwages and other consequential bene ts altogether. In his Veri ed
Motion for Reconsideration of the IBP Resolution, 3 4 respondent stated:
From the above quoted nal conclusions, the Court is very clear and
categorical in directing PT&T to pay complainant his separation pay ONLY in lieu
of reinstatement. Clearly, the Court did not direct the PT&T to pay him his
backwages, and other consequential bene ts that were directed by the NLRC
because he could no longer be reinstated to his previous position on the ground
of strained relationship and his previous position had already gone, and no
equivalent position that the PT&T could offer. . . . .
Fundamental in the realm of labor law is the rule that backwages are separate and
distinct from separation pay in lieu of reinstatement and are awarded conjunctively to an
employee who has been illegally dismissed. 3 5 There is nothing in the records that could
confound the nding that complainant was illegally dismissed as LA Carreon, the NLRC,
and the CA were all unanimous in decreeing the same. Being a labor arbiter, it is hardly
believable that respondent could overlook the fact that complainant was entitled to
backwages in view of the standing pronouncement of illegal dismissal. In this regard,
respondent's defense deserves scant consideration.
Therefore, absent any cogent basis to rule otherwise, the Court gives credence and
upholds Commissioner Limpingco's and the IBP Board of Governor's pronouncement of
respondent's gross immorality. Likewise, the Court observes that his infractions constitute
gross misconduct.
Jurisprudence illumines that immoral conduct involves acts that are willful, agrant,
or shameless, and that show a moral indifference to the opinion of the upright and
respectable members of the community. 3 6 It treads the line of grossness when it is so
corrupt as to constitute a criminal act, or so unprincipled as to be reprehensible to a high
degree, or when committed under such scandalous or revolting circumstances as to shock
the community's sense of decency. 3 7 On the other hand, gross misconduct constitutes
"improper or wrong conduct, the transgression of some established and de nite rule of
action, a forbidden act, a dereliction of duty, willful in character, and implies a wrongful
intent and not mere error of judgment." 3 8
In this relation, Section 27, Rule 138 of the Rules of Court states that when a lawyer
is found guilty of gross immoral conduct or gross misconduct, he may be suspended or
disbarred:
SEC. 27.Attorneys removed or suspended by Supreme Court on what grounds. —
A member of the bar may be removed or suspended from his o ce as
attorney by the Supreme Court for any deceit, malpractice, or other gross
misconduct in such o ce, grossly immoral conduct , or by reason of his
conviction of a crime involving moral turpitude, or for any violation of the oath
which he is required to take before the admission to practice, or for a willfull
disobedience of any lawful order of a superior court, or for corruptly or willful
appearing as an attorney for a party to a case without authority so to do. The
practice of soliciting cases at law for the purpose of gain, either personally or
through paid agents or brokers, constitutes malpractice. (Emphasis and
underscoring supplied)
Thus, as respondent's violations clearly constitute gross immoral conduct and

gross misconduct, his disbarment should come as a matter of course. However, the Court
takes judicial notice of the fact that he had already been disbarred in a previous
administrative case, entitled Sps. Rafols, Jr. v. Ricardo G. Barrios, Jr. , 3 9 which therefore
precludes the Court from duplicitously decreeing the same. In view of the foregoing, the
Court deems it proper to, instead, impose a ne in the amount of P40,000.00 4 0 in order to
penalize respondent's transgressions as discussed herein and to equally deter the
commission of the same or similar acts in the future.
As a nal word, the Court staunchly reiterates the principle that the practice of law is
a privilege 4 1 accorded only to those who continue to meet its exacting quali cations.
Verily, for all the prestige and opportunity which the profession brings lies the greater
responsibility to uphold its integrity and honor. Towards this purpose, it is quintessential
that its members continuously and unwaveringly exhibit, preserve and protect moral
uprightness in their activities, both in their legal practice as well as in their personal lives.
Truth be told, the Bar holds no place for the deceitful, immoral and corrupt.
WHEREFORE , respondent Ricardo G. Barrios, Jr. is hereby found GUILTY of gross
immoral conduct and gross misconduct in violation of Rules 1.01 and 1.03, Canon 1, and
Rule 6.02, Canon 6 of the Code of Professional Responsibility. Accordingly, he is ordered
to pay a FINE of P40,000.00.
Let a copy of this Decision be furnished the O ce of the Bar Con dant, the
Integrated Bar of the Philippines, and the O ce of the Court Administrator for circulation
to all the courts.
SO ORDERED .
Sereno, C.J., Carpio, Velasco, Jr., Leonardo-de Castro, Brion, Peralta, Bersamin, Del
Castillo, Abad, Villarama, Jr., Perez, Mendoza, Reyes and Leonen, JJ., concur.
Footnotes
1.Rollo, pp. 1-11.
2.Id. at 12-17.
3.Id. at 19-25. Penned by Presiding Commissioner Irenea E. Ceniza, with Commissioner Edgardo
M. Enerlan, concurring.
4.Id. at 27-30. See Resolution dated October 8, 2002, penned by Presiding Commissioner Irenea
E. Ceniza, with Commissioners Edgardo M. Enerlan and Oscar S. Uy, concurring.
5.Id. at 33-45. Penned by Associate Justice Eugenio S. Labitoria, with Associate Justices
Mercedes Gozo-Dadole and Rosmari D. Carandang, concurring.
6.Id. at 52-53. See Resolution dated June 22, 2004.
7.Id. at 54.
8.Id. at 304-305, 352.
9.Id. at 55-59.
10.Id. at 64-66.
11.Id. at 67-68.
12.Id. at 69-71.
13.Id. at 72-76.
14.Id. at 77-78.
15.Id. at 79-81.
16.Id. at 83-93.
17.Id. at 91-92, 353.
18.Id. at 353. Complainant filed a criminal complaint against respondent before the Office of
the Ombudsman, which issued an order of preventive suspension and thereafter indicted
him for violation of Section 3 (c) of Republic Act No. 3019, otherwise known as the "Anti-
Graft and Corrupt Practices Act."
19.Id. at 1-11.
20.Id. at 101-115.
21.Id. at 420-429.
22.Id. at 428.
23.Id. at 428-429.
24.Id. at 419.
25.Id.
26.Olazo v. Tinga, A.M. No. 10-5-7-SC, December 7, 2010, 637 SCRA 1, 10.
27.Id. at 8, citing Vitriolo v. Dasig, A.C. No. 4984, 448 Phil. 199, 2007 (2003).
28.Ventura v. Samson, A.C. No. 9608, November 27, 2012, 686 SCRA 430, 440, citing Zaguirre v.
Castillo, 446 Phil. 861, 870 (2003).
29.Advincula v. Macabata, A.C. No. 7204, March 7, 2007, 517 SCRA 600, 609.
30.Id., citing Rural Bank of Silay, Inc. v. Pilla, 403 Phil. 1, 9 (2001).
31.Rollo, p. 45.
32.Id. at 24 and 29.
33.Id. at 44-45.
34.Id. at 368.
35."[A]n illegally or constructively dismissed employee is entitled to: (1) either reinstatement, if
viable, or separation pay, if reinstatement is no longer viable; and (2) backwages. These
two reliefs are separate and distinct from each other and are awarded
conjunctively ." Robinsons Galleria/Robinsons Supermarket Corporation v. Ranchez,
G.R. No. 177937, January 19, 2011, 640 SCRA 135, 144, citing Siemens v. Domingo, G.R.
No. 150488, July 28, 2008, 560 SCRA 86, 100. (Emphasis supplied)
36.Cojuangco, Jr. v. Palma, 481 Phil. 646, 656 (2004).
37.Garrido v. Garrido, A.C. No. 6593, February 4, 2010, 611 SCRA 508, 518, citing St. Louis
University Laboratory High School (SLU-LHS) and Faculty and Staff v. Dela Cruz, 531
Phil. 213, 224 (2006).
38.Sps. Whitson v. Atienza, 457 Phil. 11, 18 (2003).
39.A.C. No. 4973, March 15, 2010, 615 SCRA 206.
40.In Lahm III v. Labor Arbiter Mayor, Jr. (A.C. No. 7430, February 15, 2012, 666 SCRA 1, 17-18),
the Court applied Rule 140 of the Rules of Court to a disciplinary case involving a labor
arbiter. Under Section 8 in relation to Section 11 of the same rule, a fine of P40,000.00
may be imposed for the serious charges of bribery and immorality:
SEC. 8. Serious charges. — Serious charges include:
1. Bribery, direct or indirect;
xxx xxx xxx
8. Immorality;
xxx xxx xxx
SEC. 11. Sanctions. — A. If the respondent is guilty of a serious charge, any of the following
sanctions may be imposed:
xxx xxx xxx
3. A fine of more than P20,000.00 but not exceeding P40,000.00 . (Emphasis and
41.National Bureau of Investigation v. Reyes, 382 Phil. 872, 886 (2000).

EN BANC
[A.C. No. 4018. March 8, 2005.]
OMAR P. ALI , complainant, vs . ATTY. MOSIB A. BUBONG , respondent.
DECISION
PER CURIAM : p
This is a veri ed petition for disbarment 1 led against Atty. Mosib Ali Bubong for
having been found guilty of grave misconduct while holding the position of Register of
Deeds of Marawi City.
It appears that this disbarment proceeding is an off-shoot of the administrative
case earlier led by complainant against respondent. In said case, which was initially
investigated by the Land Registration Authority (LRA), complainant charged respondent
with illegal exaction; indiscriminate issuance of Transfer Certi cate of Title (TCT) No. T-
2821 in the names of Lawan Bauduli Datu, Mona Abdullah, 2 Ambobae Bauduli Datu,
Matabae Bauduli Datu, Mooamadali Bauduli Datu, and Amenola Bauduli Datu; and
manipulating the criminal complaint led against Hadji Serad Bauduli Datu and others for
violation of the Anti-Squatting Law. It appears from the records that the Baudali Datus are
relatives of respondent. 3
The initial inquiry by the LRA was resolved in favor of respondent. The investigating
officer, Enrique Basa, absolved respondent of all the charges brought against him, thus: HaEcAC
It is crystal clear from the foregoing that complainant not only failed to
prove his case but that he has no case at all against respondent Mosib Ali
Bubong. Wherefore, premises considered, it is respectfully recommended that the
complaint against respondent be dismissed for lack of merit and evidence. 4
The case was then forwarded to the Department of Justice for review and in a report
dated 08 September 1992, then Secretary of Justice Franklin Drilon exonerated
respondent of the charges of illegal exaction and in delity in the custody of documents.
He, however, found respondent guilty of grave misconduct for his imprudent issuance of
TCT No. T-2821 and manipulating the criminal case for violation of the Anti-Squatting Law
instituted against Hadji Serad Bauduli Datu and the latter's co-accused. As a result of this
finding, Secretary Drilon recommended respondent's dismissal from service.
On 26 February 1993, former President Fidel V. Ramos issued Administrative Order
No. 41 adopting in toto the conclusion reached by Secretary Drilon and ordering
respondent's dismissal from government service. Respondent subsequently questioned
said administrative order before this Court through a petition for certiorari, mandamus,
and prohibition 5 claiming that the O ce of the President did not have the authority and
jurisdiction to remove him from o ce. He also insisted that respondents 6 in that petition
violated the laws on security of tenure and that respondent Reynaldo V. Maulit, then the
administrator of the LRA committed a breach of Civil Service Rules when he abdicated his
authority to resolve the administrative complaint against him (herein respondent).

In a Resolution dated 15 September 1994, we dismissed the petition "for failure on
the part of petitioner to su ciently show that public respondent committed grave abuse
of discretion in issuing the questioned order." 7 Respondent thereafter led a motion for
reconsideration which was denied with finality in our Resolution of 15 November 1994. AcCTaD
On the basis of the outcome of the administrative case, complainant is now before
us, seeking the disbarment of respondent. Complainant claims that it has become obvious
that respondent had "proven himself un t to be further entrusted with the duties of an
attorney" 8 and that he poses a "serious threat to the integrity of the legal profession." 9
In his Comment, respondent maintains that there was nothing irregular with his
issuance of TCT No. T-2821 in the name of the Bauduli Datus. According to him, both law
1 0 and jurisprudence support his stance that it was his ministerial duty, as the Register of
Deeds of Marawi City, to act on applications for land registration on the basis only of the
documents presented by the applicants. In the case of the Bauduli Datus, nothing in the
documents they presented to his o ce warranted suspicion, hence, he was duty-bound to
issue TCT No. T-2821 in their favor.
Respondent also insists that he had nothing to do with the dismissal of criminal
complaint for violation of the Anti-Squatting Law allegedly committed by Hadji Serad
Abdullah and the latter's co-defendants. Respondent explains that his participation in said
case was a result of the two subpoenas duces tecum issued by the investigating
prosecutor who required him to produce the various land titles involved in said dispute. He
further claims that the dismissal of said criminal case by the Secretary of Justice was
based solely on the evidence presented by the parties. Complainant's allegation, therefore,
that he influenced the outcome of the case is totally unjustified.
Through a resolution dated 26 June 1995, 1 1 this Court referred this matter to the
Integrated Bar of the Philippines (IBP) for investigation, report, and recommendation.
Acting on this resolution, the IBP commenced the investigation of this disbarment suit. On
23 February 1996, Commissioner Victor C. Fernandez issued the following order relative to
the transfer of venue of this case. The pertinent portion of this order provides: HScAEC
ORDER
When this case was called for hearing, both complainant and respondent
appeared.
The undersigned Commissioner asked them if they are willing to have the
reception of evidence vis-à-vis this case be done in Marawi City, Lanao del Sur
before the president of the local IBP Chapter. Both parties agreed. Accordingly,
transmit the records of this case to the Director for Bar Discipline for appropriate
action. 1 2
On 30 March 1996, the IBP Board of Governors passed a resolution approving

Commissioner Fernandez's recommendation for the transfer of venue of this
administrative case and directed the Western Mindanao Region governor to designate the
local IBP chapter concerned to conduct the investigation, report, and recommendation. 1 3
The IBP Resolution states:
Resolution No. XII-96-153
Adm. Case No. 4018
Omar P. Ali vs. Atty. Mosib A. Bubong

RESOLVED TO APPROVE the recommendation of Commissioner Victor C.
Fernandez for the Transfer of Venue of the above-entitled case and direct the
Western Mindanao Region Governor George C. Jabido to designate the local IBP
Chapter concerned to conduct the investigation, report and recommendation.
Pursuant to this resolution, Atty. Benjamin B. Bernardino, Director for Bar Discipline,
wrote a letter dated 23 October 1996 addressed to Governor George C. Jabido, President
of IBP Cotabato Chapter requesting the latter to receive the evidence in this case and to
submit his recommendation and recommendation as directed by the IBP Board of
Governors. 1 4
In an undated Report and Recommendation, the IBP Cotabato Chapter 1 5 informed
the IBP Commission on Bar Discipline (CBD) that the investigating panel 1 6 had sent
notices to both complainant and respondent for a series of hearings but respondent
consistently ignored said notices. The IBP Cotabato Chapter concluded its report by
recommending that respondent be suspended from the practice of law for five years. DTSIEc
On 01 July 1998, respondent led a motion dated 30 June 1998 praying for the
transmittal of the records of this case to the Marawi City-Lanao del Sur Chapter of the IBP
pursuant to Resolution No. XII-96-153 as well as Commissioner Fernandez's Order dated
23 February 1996.
Commissioner Fernandez thereafter ordered the investigating panel of IBP Cotabato
Chapter to comment on respondent's motion. 1 7 Complying with this directive, the panel
expressed no opposition to respondent's motion for the transmittal of the records of this
case to IBP Marawi City. 1 8 On 25 September 1998, Commissioner Fernandez ordered the
referral of this case to IBP Marawi City for the reception of respondent's evidence. 1 9 This
order of referral, however, was set aside by the IBP Board of Governors in its Resolution
No. XIII-98-268 issued on 4 December 1998. Said resolution provides:
RESOLVED to DENY the ORDER of Commissioner Victor C. Fernandez for
the transmittal of the case records of the above-entitled case to Marawi City,
rather he is directed to re-evaluate the recommendation submitted by Cotabato
Chapter and report the same to the Board of Governors. 2 0
Prior to the issuance of Resolution No. XIII-98-268, respondent led on 08 October

1998 a motion praying that the recommendation of the IBP Cotabato Chapter be stricken
from the records. 2 1 Respondent insists that the investigating panel constituted by said
IBP chapter did not have the authority to conduct the investigation of this case since IBP
Resolution XII-96-153 and Commissioner Fernandez's Order of 23 February 1996 clearly
vested IBP Marawi City with the power to investigate this case. Moreover, he claims that
he was never noti ed of any hearing by the investigating panel of IBP Cotabato Chapter
thereby depriving him of his right to due process.
Complainant opposed 2 2 this motion arguing that respondent is guilty of laches.
According to complainant, the report and recommendation submitted by IBP Cotabato
Chapter expressly states that respondent was duly noti ed of the hearings conducted by
the investigating panel yet despite these, respondent did nothing to defend himself. He
also claims that respondent did not even bother to submit his position paper when he was
directed to do so. Further, as respondent is a member of IBP Marawi City Chapter,
complainant maintains that the presence of bias in favor of respondent is possible. Finally,
complainant contends that to refer the matter to IBP Marawi City would only entail a
duplication of the process which had already been completed by IBP Cotabato Chapter. iatdcjur

In an Order dated 15 October 1999, 2 3 Commissioner Fernandez directed IBP
Cotabato Chapter to submit proofs that notices for the hearings conducted by the
investigating panel as well as for the submission of the position paper were duly received
by respondent. On 21 February 2000, Atty. Jabido, a member of the IBP Cotabato Chapter
investigating panel, furnished Commissioner Fernandez with a copy of the panel's order
dated 4 August 1997. 2 4 Attached to said order was Registry Receipt No. 3663 issued by
the local post o ce. On the lower portion of the registry receipt was a handwritten
notation reading "Atty. Mosib A. Bubong." SHIcDT
On 20 April 2001, Commissioner Fernandez ordered Atty. Pedro S. Castillo,

Chairman of the Commission on Bar Discipline for Mindanao, to reevaluate the report and
recommendation submitted by IBP Cotabato Chapter. This directive had the approval of
the IBP Board of Governors through its Resolution No. XIV-2001-271 issued on 30 June
2001, to wit:
RESOLVED to APPROVE the recommendation of Director Victor C.
Fernandez for the Transfer of Venue of the above-entitled case and direct the CBD
Mindanao to conduct an investigation, re-evaluation, report and recommendation
within sixty (60) days from receipt of notice. 2 5
Meanwhile, Bainar A. Ali, informed the CBD Mindanao of the death of her father,
Omar P. Ali, complainant in this case. According to her, her father passed away on 12 June
2002 and that in interest of peace and Islamic brotherhood, she was requesting the
withdrawal of this case. 2 6
Subsequently, respondent led another motion, this time, asking the IBP CBD to
direct the chairman of the Commission on Bar Discipline for Mindanao to designate and
authorize the IBP Marawi City-Lanao del Sur Chapter to conduct an investigation of this
case. 2 7 This motion was effectively denied by Atty. Pedro S. Castillo in an Order dated 19
July 2002. 2 8 According to Atty. Castillo —
After going over the voluminous records of the case, with special attention
made on the report of the IBP Cotabato City Chapter, the Complaint and the
Counter-A davit of respondent, the undersigned sees no need for any further
investigation, to be able to make a re-evaluation and recommendation on the
Report of the IBP Chapter of Cotabato City.
WHEREFORE, the Motion to authorize the IBP-Chapter of Marawi City,

Zamboanga del Norte is hereby denied. The undersigned will submit his Report to
the Commission on Bar Discipline, IBP National O ce within ten (10) days from
date hereof.
In his Report and Recommendation, Atty. Castillo adopted in toto the ndings and
conclusion of IBP Cotabato Chapter ratiocinating as follows:
The Complaint for Disbarment is primarily based on the Decision by the
O ce of the President in Administrative Case No. 41 dated February 26, 1993,
wherein herein respondent was found guilty of Grave Misconduct in:
a) The imprudent issuance of T.C.T. No. T-2821; and,
b) Manipulating the criminal complaint for violation of the anti-

squatting law. EaHIDC
And penalized with dismissal from the service, as Register of Deeds of

Marawi City. In the Comment led by respondent in the instant Administrative
Case, his defense is good faith in the issuance of T.C.T. No. T-2821 and a denial
of the charge of manipulating the criminal complaint for violation of the anti-
squatting law, which by the way, was led against respondent's relatives. Going
over the Decision of the O ce of the President in Administrative Case No. 41, the
undersigned nds substantial evidence were taken into account and fully
explained, before the Decision therein was rendered. In other words, the nding of
Grave Misconduct on the part of respondent by the O ce of the President was
fully supported by evidence and as such carries a very strong weight in
considering the professional misconduct of respondent in the present case.
In the light of the foregoing, the undersigned sees no reason for amending
or disturbing the Report and Recommendation of the IBP Chapter of South
Cotabato. 2 9
In a resolution passed on 19 October 2002, the IBP Board of Governors adopted

and approved, with modi cation, the afore-quoted Report and Recommendation of Atty.
Castillo. The modification pertained solely to the period of suspension from the practice of
law which should be imposed on respondent — whereas Atty. Castillo concurred in the
earlier recommendation of IBP Cotabato Chapter for a ve-year suspension, the IBP Board
of Governors found a two-year suspension to be proper.
On 17 January 2003, respondent led a Motion for Reconsideration with the IBP
which the latter denied as by that time, the matter had already been endorsed to this Court.
30
The issue thus posed for this Court's resolution is whether respondent may be
disbarred for grave misconduct committed while he was in the employ of the government.
We resolve this question in the affirmative.
The Code of Professional Responsibility does not cease to apply to a lawyer simply
because he has joined the government service. In fact, by the express provision of Canon 6
thereof, the rules governing the conduct of lawyers "shall apply to lawyers in government
service in the discharge of their o cial tasks." Thus, where a lawyer's misconduct as a
government o cial is of such nature as to affect his quali cation as a lawyer or to show
moral delinquency, then he may be disciplined as a member of the bar on such grounds. 3 1
Although the general rule is that a lawyer who holds a government o ce may not be
disciplined as a member of the bar for infractions he committed as a government o cial,
he may, however, be disciplined as a lawyer if his misconduct constitutes a violation of his
oath as a member of the legal profession. 3 2
Indeed, in the case of Collantes v. Atty. Vicente C. Renomeron , 3 3 we ordered the
disbarment of respondent on the ground of his dismissal from government service
because of grave misconduct. Quoting the late Chief Justice Fred Ruiz Castro, we declared
—
[A] person takes an oath when he is admitted to the bar which is designed
to impress upon him his responsibilities. He thereby becomes an "o cer of the
court" on whose shoulders rests the grave responsibility of assisting the courts in
the proper, fair, speedy and e cient administration of justice. As an o cer of the
court he is subject to a rigid discipline that demands that in his every exertion the
only criterion be that truth and justice triumph. This discipline is what has given
the law profession its nobility, its prestige, its exalted place. From a lawyer, to
paraphrase Justice Felix Frankfurter, are expected those qualities of truth-
speaking, a high sense of honor, full candor, intellectual honesty, and the strictest
observance of duciary responsibility — all of which, throughout the centuries,
have been compendiously described as moral character. 3 4
Similarly, in Atty. Julito D. Vitriolo, et al. v. Atty. Felina Dasig , 3 5 this Court found
su cient basis to disbar respondent therein for gross misconduct perpetrated while she
was the Officer-in-Charge of Legal Services of the Commission on Higher Education. As we
had explained in that case —
. . . [A] lawyer in public o ce is expected not only to refrain from any act or
omission which might tend to lessen the trust and con dence of the citizenry in
government, she must also uphold the dignity of the legal profession at all times
and observe a high standard of honesty and fair dealing. Otherwise said, a lawyer
in government service is a keeper of the public faith and is burdened with high
degree of social responsibility, perhaps higher than her brethren in private
practice. 3 6 (Emphasis supplied) DAHCaI
In the case at bar, respondent's grave misconduct, as established by the O ce of

the President and subsequently a rmed by this Court, deals with his quali cation as a
lawyer. By taking advantage of his o ce as the Register of Deeds of Marawi City and
employing his knowledge of the rules governing land registration for the bene t of his
relatives, respondent had clearly demonstrated his un tness not only to perform the
functions of a civil servant but also to retain his membership in the bar. Rule 6.02 of the
Code of Professional Responsibility is explicit on this matter. It reads:
Rule 6.02 — A lawyer in the government service shall not use his public
position to promote or advance his private interests, nor allow the latter to
interfere with his public duties.
Respondent's conduct manifestly undermined the people's con dence in the public
o ce he used to occupy and cast doubt on the integrity of the legal profession. The ill-
conceived use of his knowledge of the intricacies of the law calls for nothing less than
the withdrawal of his privilege to practice law.
As for the letter sent by Bainar Ali, the deceased complainant's daughter, requesting
for the withdrawal of this case, we cannot possibly favorably act on the same as
proceedings of this nature cannot be "interrupted or terminated by reason of desistance,
settlement, compromise, restitution, withdrawal of the charges or failure of the
complainant to prosecute the same." 3 7 As we have previously explained in the case of
Irene Rayos-Ombac v. Atty. Orlando A. Rayos: 3 8
. . . A case of suspension or disbarment may proceed regardless of interest
or lack of interest of the complainant. What matters is whether, on the basis of
the facts borne out by the record, the charge of deceit and grossly immoral
conduct has been duly proven. This rule is premised on the nature of disciplinary
proceedings. A proceeding for suspension or disbarment is not in any sense a
civil action where the complainant is a plaintiff and the respondent lawyer is a
defendant. Disciplinary proceedings involve no private interest and afford no
redress for private grievance. They are undertaken and prosecuted solely for the
public welfare. They are undertaken for the purpose of preserving courts of justice
from the o cial ministration of persons un t to practice in them. The attorney is
called to answer to the court for his conduct as an o cer of the court. The
complainant or the person who called the attention of the court to the attorney's
alleged misconduct is in no sense a party, and has generally no interest in the
outcome except as all good citizens may have in the proper administrative of
justice. 3 9
WHEREFORE, respondent Atty. Mosib A. Bubong is hereby DISBARRED and his name
is ORDERED STRICKEN from the Roll of Attorneys. Let a copy of this Decision be entered in
the respondent's record as a member of the Bar, and notice of the same be served on the
Integrated Bar of the Philippines, and on the O ce of the Court Administrator for
circulation to all courts in the country. TcSAaH
SO ORDERED.
Davide, Jr., C.J., Puno, Panganiban, Quisumbing, Ynares-Santiago, Sandoval-Gutierrez,
Austria-Martinez, Corona, Callejo, Sr., Azcuna, Tinga, Chico-Nazario and Garcia, JJ., concur.
Carpio, J., took no part.
Carpio Morales, J., is on leave.
Footnotes
1. Filed by Police Supt. Omar P. Ali; Rollo, Vol. I, pp. 4-5.
2. Also known as Mona Abdullah Bauduli Datu.
3. Respondent's Answer-Affidavit, Annex "4" of Respondent's Comment dated 16 February

1995; Rollo, Vol. I, p. 64.
4. Annex "14" of Respondent's Comment dated 16 February 1995; Rollo, Vol. I, p. 117.
5. G.R. No. 112839.
6. Named as respondents in the petition were former President Fidel V. Ramos; Hon.
Antonio T. Carpio and Hon. Leonardo A. Quisumbing (formerly of the Office of the
President; now members of this Court; Hon. Franklin Drilon (then the Secretary of
Justice); and Hon Reynaldo V. Maulit (then the Administrator of the Land Registration
Authority); and Major Omar P. Ali (complainant in the present disbarment case).
7. Supra, note 2; Rollo, p. 173.

8. Rollo, p. 5.
9. Ibid.
10. Presidential Decree No. 1529, Sections 50, 51, and 58.
11. Rollo, Vol. I, p. 156.

12. Rollo, Vol. III, p. 40.
13. Resolution No. XII-96-153; Rollo, Vol. II, p. 3.

15. Sometimes referred to as Cotabato City Chapter or South Cotabato Chapter.
16. Composed of Attys. Edgardo A. Camello, Carlos Valdez, Jr. (Chairman), Mando Sinsuat,
Jr., Renato Eugenio, and George C. Jabido.
17. Order dated 14 August 1998; Rollo, Vol. III, p. 49.

21. Rollo, Vol. III. pp. 57-58.
22. Rollo, Vol. III, pp. 60-66.
24. Rollo, Vol. III, pp. 86-87.
26. Rollo, Vol. V, p. 12.
27. Dated 27 July 2001; Rollo, Vol. III, pp. 185-187.
28. Rollo, Vol. V, pp. 17-18.

29. Rollo, Vol. V, p. 127.
30. Resolution No. XV-2003-56.
31. Reyes v. Atty. Salvador M. Gaa, A.C. No. 1048, 14 July 1995, 246 SCRA 64; citing
Gonzales-Austria v. Abaya, A.M. No. R-705-RTJ, 23 August 1989, 176 SCRA 634.
32. Atty. Julito D. Vitriolo, et al. v. Atty. Felina Dasig, A.C. No. 4984, 1 April 2003, 400 SCRA
172.
33. A.C. No. 3056, 16 August 1991, 200 SCRA 584.
34. Id. at 589-590.

35. Supra, note 32.
36. Id. at 180.
37. Rule 139-B, §139-B, Revised Rules of Court.
38. A.C. No. 2884, 28 January 1998, 285 SCRA 93.
39. Id. at 100-101.

EN BANC
[G.R. Nos. 151809-12. April 12, 2005.]
PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT (PCGG) ,

petitioner, vs . SANDIGANBAYAN (Fifth Division), LUCIO C. TAN,
CARMEN KHAO TAN, FLORENCIO T. SANTOS, NATIVIDAD P.
SANTOS, DOMINGO CHUA, TAN HUI NEE, MARIANO TAN ENG LIAN,
ESTATE OF BENITO TAN KEE HIONG (represented by TARCIANA C.
TAN), FLORENCIO N. SANTOS, JR., HARRY C. TAN, TAN ENG CHAN,
CHUNG POE KEE, MARIANO KHOO, MANUEL KHOO, MIGUEL KHOO,
JAIME KHOO, ELIZABETH KHOO, CELSO RANOLA, WILLIAM T.
WONG, ERNESTO B. LIM, BENJAMIN T. ALBACITA, WILLY CO,
ALLIED BANKING CORP., ALLIED LEASING AND FINANCE
CORPORATION, ASIA BREWERY, INC., BASIC HOLDINGS CORP.,
FOREMOST FARMS, INC., FORTUNE TOBACCO CORP., GRANSPAN
DEVELOPMENT CORP., HIMMEL INDUSTRIES, IRIS HOLDINGS AND
DEVELOPMENT CORP., JEWEL HOLDINGS, INC., MANUFACTURING
SERVICES AND TRADE CORP., MARANAW HOTELS & RESORT CORP.,
NORTHERN TOBACCO REDRYING PLANT, PROGRESSIVE FARMS,
INC., SHAREHOLDINGS, INC., SIPALAY TRADING CORP., VIRGO
HOLDINGS & DEVELOPMENT CORP., and ATTY. ESTELITO P.
MENDOZA , respondents.
DECISION
PUNO , J : p
This case is prima impressiones and it is weighted with signi cance for it concerns
on one hand, the efforts of the Bar to upgrade the ethics of lawyers in government service
and on the other, its effect on the right of government to recruit competent counsel to
defend its interests.
I n 1976 , General Bank and Trust Company (GENBANK) encountered nancial
di culties. GENBANK had extended considerable nancial support to Filcapital
Development Corporation causing it to incur daily overdrawings on its current account with
the Central Bank. 1 It was later found by the Central Bank that GENBANK had approved
various loans to directors, o cers, stockholders and related interests totaling P172.3
million, of which 59% was classi ed as doubtful and P0.505 million as uncollectible. 2 As a
bailout, the Central Bank extended emergency loans to GENBANK which reached a total of
P310 million. 3 Despite the mega loans, GENBANK failed to recover from its nancial
woes. On March 25, 1977, the Central Bank issued a resolution declaring GENBANK
insolvent and unable to resume business with safety to its depositors, creditors and the
general public, and ordering its liquidation. 4 A public bidding of GENBANK's assets was
held from March 26 to 28, 1977, wherein the Lucio Tan group submitted the winning bid. 5
Subsequently, former Solicitor General Estelito P. Mendoza led a petition with the then
Court of First Instance praying for the assistance and supervision of the court in
GENBANK's liquidation as mandated by Section 29 of Republic Act No. 265.
In February 1986, the EDSA I revolution toppled the Marcos government. One of the
rst acts of President Corazon C. Aquino was to establish the Presidential Commission on
Good Government (PCGG) to recover the alleged ill-gotten wealth of former President
Ferdinand Marcos, his family and his cronies. Pursuant to this mandate, the PCGG, on July
17, 1987, led with the Sandiganbayan a complaint for "reversion, reconveyance,
restitution, accounting and damages" against respondents Lucio Tan, Carmen Khao Tan,
Florencio T. Santos, Natividad P. Santos, Domingo Chua, Tan Hui Nee, Mariano Tan Eng
Lian, Estate of Benito Tan Kee Hiong, Florencio N. Santos, Jr., Harry C. Tan, Tan Eng Chan,
Chung Poe Kee, Mariano Khoo, Manuel Khoo, Miguel Khoo, Jaime Khoo, Elizabeth Khoo,
Celso Ranola, William T. Wong, Ernesto B. Lim, Benjamin T. Albacita, Willy Co, Allied
Banking Corporation (Allied Bank), Allied Leasing and Finance Corporation, Asia Brewery,
Inc., Basic Holdings Corp., Foremost Farms, Inc., Fortune Tobacco Corporation, Grandspan
Development Corp., Himmel Industries, Iris Holdings and Development Corp., Jewel
Holdings, Inc., Manufacturing Services and Trade Corp., Maranaw Hotels and Resort Corp.,
Northern Tobacco Redrying Plant, Progressive Farms, Inc., Shareholdings, Inc., Sipalay
Trading Corp., Virgo Holdings & Development Corp., (collectively referred to herein as
respondents Tan, et al.), then President Ferdinand E. Marcos, Imelda R. Marcos, Pan lo O.
Domingo, Cesar Zalamea, Don Ferry and Gregorio Licaros. The case was docketed as Civil
Case No. 0005 of the Second Division of the Sandiganbayan. 6 In connection therewith, the
PCGG issued several writs of sequestration on properties allegedly acquired by the above-
named persons by taking advantage of their close relationship and in uence with former
President Marcos. HaIESC
Respondents Tan, et al. repaired to this Court and led petitions for certiorari,
prohibition and injunction to nullify, among others, the writs of sequestration issued by the
PCGG. 7 After the ling of the parties' comments, this Court referred the cases to the
Sandiganbayan for proper disposition. These cases were docketed as Civil Case Nos.
0096-0099. In all these cases, respondents Tan, et al. were represented by their counsel,
former Solicitor General Estelito P. Mendoza, who has then resumed his private practice of
law.
On February 5, 1991, the PCGG led motions to disqualify respondent Mendoza as
counsel for respondents Tan, et al. with the Second Division of the Sandiganbayan in Civil
Case Nos. 0005 8 and 0096-0099. 9 The motions alleged that respondent Mendoza, as
then Solicitor General 1 0 and counsel to Central Bank, "actively intervened" in the liquidation
of GENBANK, which was subsequently acquired by respondents Tan, et al. and became
Allied Banking Corporation. Respondent Mendoza allegedly "intervened" in the acquisition
of GENBANK by respondents Tan, et al. when, in his capacity as then Solicitor General, he
advised the Central Bank's o cials on the procedure to bring about GENBANK's
liquidation and appeared as counsel for the Central Bank in connection with its petition for
assistance in the liquidation of GENBANK which he led with the Court of First Instance
(now Regional Trial Court) of Manila and was docketed as Special Proceeding No. 107812.
The motions to disqualify invoked Rule 6.03 of the Code of Professional Responsibility.
Rule 6.03 prohibits former government lawyers from accepting "engagement or
employment in connection with any matter in which he had intervened while in said
service."
O n April 22, 1991 , the Second Division of the Sandiganbayan issued a resolution
denying PCGG's motion to disqualify respondent Mendoza in Civil Case No. 0005. 1 1 It
found that the PCGG failed to prove the existence of an inconsistency between respondent
Mendoza's former function as Solicitor General and his present employment as counsel of
the Lucio Tan group. It noted that respondent Mendoza did not take a position adverse to
that taken on behalf of the Central Bank during his term as Solicitor General. 1 2 It further
ruled that respondent Mendoza's appearance as counsel for respondents Tan, et al. was
beyond the one-year prohibited period under Section 7(b) of Republic Act No. 6713 since
he ceased to be Solicitor General in the year 1986. The said section prohibits a former
public o cial or employee from practicing his profession in connection with any matter
before the o ce he used to be with within one year from his resignation, retirement or
separation from public o ce. 1 3 The PCGG did not seek any reconsideration of the ruling.
14
It appears that Civil Case Nos. 0096-0099 were transferred from the
Sandiganbayan's Second Division to the Fifth Division. 1 5 In its resolution dated July 11,
2001, the Fifth Division of the Sandiganbayan denied the other PCGG's motion to disqualify
respondent Mendoza. 1 6 It adopted the resolution of its Second Division dated April 22,
1991, and observed that the arguments were the same in substance as the motion to
disqualify led in Civil Case No. 0005. The PCGG sought reconsideration of the ruling but
its motion was denied in its resolution dated December 5, 2001. 1 7
Hence, the recourse to this Court by the PCGG assailing the resolutions dated July
11, 2001 and December 5, 2001 of the Fifth Division of the Sandiganbayan via a petition for
certiorari and prohibition under Rule 65 of the 1997 Rules of Civil Procedure. 1 8 The PCGG
alleged that the Fifth Division acted with grave abuse of discretion amounting to lack or
excess of jurisdiction in issuing the assailed resolutions contending that: 1) Rule 6.03 of
the Code of Professional Responsibility prohibits a former government lawyer from
accepting employment in connection with any matter in which he intervened; 2) the
prohibition in the Rule is not time-bound; 3) that Central Bank could not waive the objection
to respondent Mendoza's appearance on behalf of the PCGG; and 4) the resolution in Civil
Case No. 0005 was interlocutory, thus res judicata does not apply. 1 9
The petition at bar raises procedural and substantive issues of law. In view, however,
of the import and impact of Rule 6.03 of the Code of Professional Responsibility to the
legal profession and the government, we shall cut our way and forthwith resolve the
substantive issue.
I
Substantive Issue
T h e key issue is whether Rule 6.03 of the Code of Professional Responsibility
applies to respondent Mendoza. Again, the prohibition states: "A lawyer shall not, after
leaving government service, accept engagement or employment in connection with any
matter in which he had intervened while in the said service."
I.A.
The history of Rule 6.03
A proper resolution of this case necessitates that we trace the historical lineage of
Rule 6.03 of the Code of Professional Responsibility.
In the seventeenth and eighteenth centuries, ethical standards for lawyers were
pervasive in England and other parts of Europe. The early statements of standards did not
resemble modern codes of conduct. They were not detailed or collected in one source but
surprisingly were comprehensive for their time. The principal thrust of the standards was
directed towards the litigation conduct of lawyers. It underscored the central duty of truth
and fairness in litigation as superior to any obligation to the client. The formulations of the
litigation duties were at times intricate, including specific pleading standards, an obligation
to inform the court of falsehoods and a duty to explore settlement alternatives. Most of
the lawyer's other basic duties — competency, diligence, loyalty, con dentiality, reasonable
fees and service to the poor — originated in the litigation context, but ultimately had
broader application to all aspects of a lawyer's practice.
The forms of lawyer regulation in colonial and early post-revolutionary America did
not differ markedly from those in England. The colonies and early states used oaths,
statutes, judicial oversight, and procedural rules to govern attorney behavior. The
difference from England was in the pervasiveness and continuity of such regulation. The
standards set in England varied over time, but the variation in early America was far
greater. The American regulation fluctuated within a single colony and differed from colony
to colony. Many regulations had the effect of setting some standards of conduct, but the
regulation was sporadic, leaving gaps in the substantive standards. Only three of the
traditional core duties can be fairly characterized as pervasive in the formal, positive law of
the colonial and post-revolutionary period: the duties of litigation fairness, competency
and reasonable fees. 2 0
The nineteenth century has been termed the "dark ages" of legal ethics in the United
States. By mid-century, American legal reformers were lling the void in two ways. First,
David Dudley Field, the drafter of the highly in uential New York "Field Code," introduced a
new set of uniform standards of conduct for lawyers. This concise statement of eight
statutory duties became law in several states in the second half of the nineteenth century.
At the same time, legal educators, such as David Hoffman and George Sharswood, and
many other lawyers were working to esh out the broad outline of a lawyer's duties. These
reformers wrote about legal ethics in unprecedented detail and thus brought a new level of
understanding to a lawyer's duties. A number of mid-nineteenth century laws and statutes,
other than the Field Code, governed lawyer behavior. A few forms of colonial regulations —
e.g., the "do no falsehood" oath and the deceit prohibitions — persisted in some states.
Procedural law continued to directly, or indirectly, limit an attorney's litigation behavior. The
developing law of agency recognized basic duties of competence, loyalty and
safeguarding of client property. Evidence law started to recognize with less equivocation
the attorney-client privilege and its underlying theory of con dentiality. Thus, all of the core
duties, with the likely exception of service to the poor, had some basis in formal law. Yet,
as in the colonial and early post-revolutionary periods, these standards were isolated and
did not provide a comprehensive statement of a lawyer's duties. The reformers, by
contrast, were more comprehensive in their discussion of a lawyer's duties, and they
actually ushered a new era in American legal ethics. 2 1
Toward the end of the nineteenth century, a new form of ethical standards began to
guide lawyers in their practice — the bar association code of legal ethics. The bar codes
were detailed ethical standards formulated by lawyers for lawyers. They combined the two
primary sources of ethical guidance from the nineteenth century. Like the academic
discourses, the bar association codes gave detail to the statutory statements of duty and
the oaths of o ce. Unlike the academic lectures, however, the bar association codes
retained some of the o cial imprimatur of the statutes and oaths. Over time, the bar
association codes became extremely popular that states adopted them as binding rules of
law. Critical to the development of the new codes was the re-emergence of bar
associations themselves. Local bar associations formed sporadically during the colonial
period, but they disbanded by the early nineteenth century. In the late nineteenth century,
bar associations began to form again, picking up where their colonial predecessors had
left off. Many of the new bar associations, most notably the Alabama State Bar
Association and the American Bar Association, assumed on the task of drafting
substantive standards of conduct for their members. 2 2
In 1887, Alabama became the rst state with a comprehensive bar association code
of ethics. The 1887 Alabama Code of Ethics was the model for several states' codes, and
it was the foundation for the American Bar Association's (ABA) 1908 Canons of Ethics. 2 3
In 1917, the Philippine Bar found that the oath and duties of a lawyer were
insu cient to attain the full measure of public respect to which the legal profession was
entitled. In that year, the Philippine Bar Association adopted as its own, Canons 1 to 32 of
the ABA Canons of Professional Ethics. 2 4
As early as 1924, some ABA members have questioned the form and function of the
canons. Among their concerns was the "revolving door" or "the process by which lawyers
and others temporarily enter government service from private life and then leave it for
large fees in private practice, where they can exploit information, contacts, and in uence
garnered in government service." 2 5 These concerns were classi ed as " adverse-interest
conflicts" and "congruent-interest con icts." " Adverse-interest con icts" exist where the
matter in which the former government lawyer represents a client in private practice is
substantially related to a matter that the lawyer dealt with while employed by the
government and the interests of the current and former are adverse. 2 6 On the other hand,
"congruent-interest representation con icts" are unique to government lawyers and apply
primarily to former government lawyers. 2 7 For several years, the ABA attempted to
correct and update the canons through new canons, individual amendments and
interpretative opinions. In 1928, the ABA amended one canon and added thirteen new
canons. 2 8 To deal with problems peculiar to former government lawyers, Canon 36 was
minted which disquali ed them both for "adverse-interest con icts" and "congruent-
interest representation con icts." 2 9 The rationale for disquali cation is rooted in a
concern that the government lawyer's largely discretionary actions would be in uenced by
the temptation to take action on behalf of the government client that later could be to the
advantage of parties who might later become private practice clients. 3 0 Canon 36
provides, viz.:
36. Retirement from judicial position or public employment
A lawyer should not accept employment as an advocate in any matter

upon the merits of which he has previously acted in a judicial capacity. TDcAaH
A lawyer, having once held public o ce or having been in the public

employ should not, after his retirement, accept employment in connection with
any matter he has investigated or passed upon while in such office or employ.
Over the next thirty years, the ABA continued to amend many of the canons and
added Canons 46 and 47 in 1933 and 1937, respectively. 3 1
In 1946, the Philippine Bar Association again adopted as its own Canons 33 to 47 of
the ABA Canons of Professional Ethics. 3 2
By the middle of the twentieth century, there was growing consensus that the ABA
Canons needed more meaningful revision. In 1964, the ABA President-elect Lewis Powell
asked for the creation of a committee to study the "adequacy and effectiveness" of the
ABA Canons. The committee recommended that the canons needed substantial revision, in
part because the ABA Canons failed to distinguish between "the inspirational and the
proscriptive" and were thus unsuccessful in enforcement. The legal profession in the
United States likewise observed that Canon 36 of the ABA Canons of Professional Ethics
resulted in unnecessary disquali cation of lawyers for negligible participation in matters
during their employment with the government.
The unfairness of Canon 36 compelled ABA to replace it in the 1969 ABA Model
Code of Professional Responsibility. 3 3 The basic ethical principles in the Code of
Professional Responsibility were supplemented by Disciplinary Rules that de ned
minimum rules of conduct to which the lawyer must adhere. 3 4 In the case of Canon 9, DR
9-101(b) 3 5 became the applicable supplementary norm. The drafting committee
reformulated the canons into the Model Code of Professional Responsibility, and, in
August of 1969, the ABA House of Delegates approved the Model Code. 3 6
Despite these amendments, legal practitioners remained unsatis ed with the results
and inde nite standards set forth by DR 9-101(b) and the Model Code of Professional
Responsibility as a whole. Thus, in August 1983, the ABA adopted new Model Rules of
Professional Responsibility. The Model Rules used the "restatement format," where the
conduct standards were set-out in rules, with comments following each rule. The new
format was intended to give better guidance and clarity for enforcement "because the only
enforceable standards were the black letter Rules." The Model Rules eliminated the broad
canons altogether and reduced the emphasis on narrative discussion, by placing
comments after the rules and limiting comment discussion to the content of the black
letter rules. The Model Rules made a number of substantive improvements particularly
with regard to con icts of interests. 3 7 In particular, the ABA did away with Canon 9, citing
the hopeless dependence of the concept of impropriety on the subjective views of anxious
clients as well as the norm's indefinite nature. 3 8
In cadence with these changes, the Integrated Bar of the Philippines (IBP) adopted a
proposed Code of Professional Responsibility in 1980 which it submitted to this Court for
approval. The Code was drafted to re ect the local customs, traditions, and practices of
the bar and to conform with new realities. On June 21, 1988, this Court promulgated the
Code of Professional Responsibility. 3 9 Rule 6.03 of the Code of Professional
Responsibility deals particularly with former government lawyers, and provides, viz.:
Rule 6.03 — A lawyer shall not, after leaving government service, accept
engagement or employment in connection with any matter in which he had
intervened while in said service.
Rule 6.03 of the Code of Professional Responsibility retained the general structure
of paragraph 2, Canon 36 of the Canons of Professional Ethics but replaced the expansive
phrase "investigated and passed upon" with the word "intervened." It is, therefore, properly
applicable to both "adverse-interest conflicts" and "congruent-interest conflicts."
The case at bar does not involve the “adverse interest” aspect of Rule 6.03.
Respondent Mendoza, it is conceded, has no adverse interest problem when he acted as
Solicitor General in Sp. Proc. No. 107812 and later as counsel of respondents Tan, et al. in
Civil Case No. 0005 and Civil Case Nos. 0096-0099 before the Sandiganbayan.
Nonetheless, there remains the issue of whether there exists a "congruent-interest con ict"
sufficient to disqualify respondent Mendoza from representing respondents Tan, et al.
I.B.
The "congruent interest" aspect of Rule 6.03
The key to unlock Rule 6.03 lies in comprehending rst, the meaning of " matter"
referred to in the rule and, second, the metes and bounds of the "intervention" made by the
former government lawyer on the "matter." The American Bar Association in its Formal
Opinion 342, de ned "matter" as any discrete, isolatable act as well as identi able
transaction or conduct involving a particular situation and speci c party, and not merely an
act of drafting, enforcing or interpreting government or agency procedures, regulations or
laws, or briefing abstract principles of law.
Firstly, it is critical that we pinpoint the "matter" which was the subject of
intervention by respondent Mendoza while he was the Solicitor General. The PCGG relates
the following acts of respondent Mendoza as constituting the "matter" where he
intervened as a Solicitor General, viz: 4 0
The PCGG's Case for Atty. Mendoza's Disqualification
The PCGG imputes grave abuse of discretion on the part of the

Sandiganbayan (Fifth Division) in issuing the assailed Resolutions dated July 11,
2001 and December 5, 2001 denying the motion to disqualify Atty. Mendoza as
counsel for respondents Tan, et al. The PCGG insists that Atty. Mendoza, as then
Solicitor General, actively intervened in the closure of GENBANK by advising the
Central Bank on how to proceed with the said bank's liquidation and even ling
the petition for its liquidation with the CFI of Manila. TaCDAH
As proof thereof, the PCGG cites the Memorandum dated March 29, 1977
prepared by certain key o cials of the Central Bank, namely, then Senior Deputy
Governor Amado R. Brinas, then Deputy Governor Jaime C. Laya, then Deputy
Governor and General Counsel Gabriel C. Singson, then Special Assistant to the
Governor Carlota P. Valenzuela, then Assistant to the Governor Arnulfo B.
Aurellano and then Director of Department of Commercial and Savings Bank
Antonio T. Castro, Jr., where they averred that on March 28, 1977, they had a
conference with the Solicitor General (Atty. Mendoza), who advised them on how
to proceed with the liquidation of GENBANK. The pertinent portion of the said
memorandum states:
Immediately after said meeting, we had a conference with the

Solicitor General and he advised that the following procedure should be
taken:
1) Management should submit a memorandum to the Monetary Board

reporting that studies and evaluation had been made since the last
examination of the bank as of August 31, 1976 and it is believed
that the bank can not be reorganized or placed in a condition so that
it may be permitted to resume business with safety to its depositors
and creditors and the general public.
2) If the said report is con rmed by the Monetary Board, it shall order the
liquidation of the bank and indicate the manner of its liquidation
and approve a liquidation plan.
3) The Central Bank shall inform the principal stockholders of Genbank of

the foregoing decision to liquidate the bank and the liquidation plan
approved by the Monetary Board.
4) The Solicitor General shall then le a petition in the Court of First

Instance reciting the proceedings which had been taken and praying
the assistance of the Court in the liquidation of Genbank.
The PCGG further cites the Minutes No. 13 dated March 29, 1977 of the
Monetary Board where it was shown that Atty. Mendoza was furnished copies of
pertinent documents relating to GENBANK in order to aid him in ling with the
court the petition for assistance in the bank's liquidation. The pertinent portion of
the said minutes reads:
The Board decided as follows:
xxx xxx xxx
E. To authorize Management to furnish the Solicitor General with a copy of

the subject memorandum of the Director, Department of
Commercial and Savings Bank dated March 29, 1977, together with
copies of:
1. Memorandum of the Deputy Governor, Supervision and

Examination Sector, to the Monetary Board, dated March 25,
1977, containing a report on the current situation of Genbank;
2. Aide Memoire on the Antecedent Facts Re: General Bank and

Trust Co., dated March 23, 1977;
3. Memorandum of the Director, Department of Commercial and

Savings Bank, to the Monetary Board, dated March 24, 1977,
submitting, pursuant to Section 29 of R.A. No. 265, as
amended by P.D. No. 1007, a report on the state of
insolvency of Genbank, together with its attachments; and
4. Such other documents as may be necessary or needed by the

Solicitor General for his use in then CFI-praying the
assistance of the Court in the liquidation of Genbank.
Beyond doubt, therefore, the "matter" or the act of respondent Mendoza as Solicitor
General involved in the case at bar is "advising the Central Bank, on how to proceed with
the said bank's liquidation and even ling the petition for its liquidation with the CFI of
Manila." In ne, the Court should resolve whether his act of advising the Central Bank on
the legal procedure to liquidate GENBANK is included within the concept of "matter" under
Rule 6.03. The procedure of liquidation is given in black and white in Republic Act No. 265,
section 29, viz:
The provision reads in part:
SEC. 29. Proceedings upon insolvency . — Whenever, upon examination by
the head of the appropriate supervising or examining department or his
examiners or agents into the condition of any bank or non-bank nancial
intermediary performing quasi-banking functions, it shall be disclosed that the
condition of the same is one of insolvency, or that its continuance in business
would involve probable loss to its depositors or creditors, it shall be the duty of
the department head concerned forthwith, in writing, to inform the Monetary
Board of the facts, and the Board may, upon nding the statements of the
department head to be true, forbid the institution to do business in the Philippines
and shall designate an o cial of the Central Bank or a person of recognized
competence in banking or nance, as receiver to immediately take charge of its
assets and liabilities, as expeditiously as possible collect and gather all the assets
and administer the same for the bene t of its creditors, exercising all the powers
necessary for these purposes including, but not limited to, bringing suits and
foreclosing mortgages in the name of the bank or non-bank financial intermediary
performing quasi-banking functions.
xxx xxx xxx
If the Monetary Board shall determine and con rm within the said period
that the bank or non-bank nancial intermediary performing quasi-banking
functions is insolvent or cannot resume business with safety to its depositors,
creditors and the general public, it shall, if the public interest requires, order its
liquidation, indicate the manner of its liquidation and approve a liquidation plan.
The Central Bank shall, by the Solicitor General, le a petition in the Court of First
Instance reciting the proceedings which have been taken and praying the
assistance of the court in the liquidation of such institution. The court shall have
jurisdiction in the same proceedings to adjudicate disputed claims against the
bank or non-bank nancial intermediary performing quasi-banking functions and
enforce individual liabilities of the stockholders and do all that is necessary to
preserve the assets of such institution and to implement the liquidation plan
approved by the Monetary Board. The Monetary Board shall designate an o cial
of the Central Bank, or a person of recognized competence in banking or nance,
as liquidator who shall take over the functions of the receiver previously
appointed by the Monetary Board under this Section. The liquidator shall, with all
convenient speed, convert the assets of the banking institution or non-bank
nancial intermediary performing quasi-banking functions to money or sell,
assign or otherwise dispose of the same to creditors and other parties for the
purpose of paying the debts of such institution and he may, in the name of the
bank or non-bank nancial intermediary performing quasi-banking functions,
institute such actions as may be necessary in the appropriate court to collect and
recover accounts and assets of such institution. ICTDEa
The provisions of any law to the contrary notwithstanding, the actions of

the Monetary Board under this Section and the second paragraph of Section 34 of
this Act shall be nal and executory, and can be set aside by the court only if
there is convincing proof that the action is plainly arbitrary and made in bad faith.
No restraining order or injunction shall be issued by the court enjoining the Central
Bank from implementing its actions under this Section and the second paragraph
of Section 34 of this Act, unless there is convincing proof that the action of the
Monetary Board is plainly arbitrary and made in bad faith and the petitioner or
plaintiff les with the clerk or judge of the court in which the action is pending a
bond executed in favor of the Central Bank, in an amount to be xed by the court.
The restraining order or injunction shall be refused or, if granted, shall be
dissolved upon ling by the Central Bank of a bond, which shall be in the form of
cash or Central Bank cashier(s) check, in an amount twice the amount of the
bond of the petitioner or plaintiff conditioned that it will pay the damages which
the petitioner or plaintiff may suffer by the refusal or the dissolution of the
injunction. The provisions of Rule 58 of the New Rules of Court insofar as they
are applicable and not inconsistent with the provisions of this Section shall
govern the issuance and dissolution of the restraining order or injunction
contemplated in this Section.
Insolvency, under this Act, shall be understood to mean the inability of a

bank or non-bank nancial intermediary performing quasi-banking functions to
pay its liabilities as they fall due in the usual and ordinary course of business.
Provided, however, That this shall not include the inability to pay of an otherwise
non-insolvent bank or non-bank nancial intermediary performing quasi-banking
functions caused by extraordinary demands induced by nancial panic
commonly evidenced by a run on the bank or non-bank nancial intermediary
performing quasi-banking functions in the banking or financial community.
The appointment of a conservator under Section 28-A of this Act or the

appointment of a receiver under this Section shall be vested exclusively with the
Monetary Board, the provision of any law, general or special, to the contrary
notwithstanding. (As amended by PD Nos. 72, 1007, 1771 & 1827, Jan. 16, 1981)
We hold that this advice given by respondent Mendoza on the procedure to liquidate
GENBANK is not the "matter" contemplated by Rule 6.03 of the Code of Professional
Responsibility. ABA Formal Opinion No. 342 is clear as daylight in stressing that the
"drafting, enforcing or interpreting government or agency procedures, regulations or laws,
or brie ng abstract principles of law" are acts which do not fall within the scope of the
term "matter" and cannot disqualify.
Secondly, it can even be conceded for the sake of argument that the above act of
respondent Mendoza falls within the de nition of matter per ABA Formal Opinion No. 342.
Be that as it may, the said act of respondent Mendoza which is the " matter" involved in Sp.
Proc. No. 107812 is entirely different from the "matter" involved in Civil Case No. 0096.
Again, the plain facts speak for themselves. It is given that respondent Mendoza had
nothing to do with the decision of the Central Bank to liquidate GENBANK. It is also given
that he did not participate in the sale of GENBANK to Allied Bank. The "matter" where he
got himself involved was in informing Central Bank on the procedure provided by law to
liquidate GENBANK thru the courts and in ling the necessary petition in Sp. Proc. No.
107812 in the then Court of First Instance. The subject "matter" of Sp. Proc. No. 107812,
therefore, is not the same nor is related to but is different from the subject “matter” in Civil
Case No. 0096. Civil Case No. 0096 involves the sequestration of the stocks owned by
respondents Tan, et al., in Allied Bank on the alleged ground that they are ill-gotten. The
case does not involve the liquidation of GENBANK. Nor does it involve the sale of
GENBANK to Allied Bank. Whether the shares of stock of the reorganized Allied Bank are
ill-gotten is far removed from the issue of the dissolution and liquidation of GENBANK.
GENBANK was liquidated by the Central Bank due, among others, to the alleged banking
malpractices of its owners and o cers. In other words, the legality of the liquidation of
GENBANK is not an issue in the sequestration cases. Indeed, the jurisdiction of the PCGG
does not include the dissolution and liquidation of banks. It goes without saying that Code
6.03 of the Code of Professional Responsibility cannot apply to respondent Mendoza
because his alleged intervention while a Solicitor General in Sp. Proc. No. 107812 is an
intervention on a matter different from the matter involved in Civil Case No. 0096.
Thirdly, we now slide to the metes and bounds of the "intervention" contemplated by
Rule 6.03. "Intervene" means, viz.:
1: to enter or appear as an irrelevant or extraneous feature or circumstance
. . . 2: to occur, fall, or come in between points of time or events . . . 3: to come in
or between by way of hindrance or modi cation: INTERPOSE . . . 4: to occur or lie
between two things (Paris, where the same city lay on both sides of an intervening
river . . .) 4 1
On the other hand, "intervention" is defined as:

1: the act or fact of intervening: INTERPOSITION; 2: interference that may
affect the interests of others. 4 2
There are, therefore, two possible interpretations of the word "intervene." Under the
rst interpretation , "intervene" includes participation in a proceeding even if the
intervention is irrelevant or has no effect or little in uence. 4 3 Under the second
interpretation, "intervene" only includes an act of a person who has the power to in uence
the subject proceedings. 4 4 We hold that this second meaning is more appropriate to give
to the word "intervention" under Rule 6.03 of the Code of Professional Responsibility in
light of its history. The evils sought to be remedied by the Rule do not exist where the
government lawyer does an act which can be considered as innocuous such as ". . .
drafting, enforcing or interpreting government or agency procedures, regulations or laws,
or briefing abstract principles of law." HTCAED
In fine, the intervention cannot be insubstantial and insignificant. Originally, Canon 36

provided that a former government lawyer "should not, after his retirement, accept
employment in connection with any matter which he has investigated or passed upon while
in such o ce or employ." As aforediscussed, the broad sweep of the phrase "which he has
investigated or passed upon" resulted in unjust disquali cation of former government
lawyers. The 1969 Code restricted its latitude, hence, in DR 9-101(b), the prohibition
extended only to a matter in which the lawyer, while in the government service, had
"substantial responsibility." The 1983 Model Rules further constricted the reach of the rule.
MR 1.11(a) provides that "a lawyer shall not represent a private client in connection with a
matter in which the lawyer participated personally and substantially as a public o cer or
employee."
It is, however, alleged that the intervention of respondent Mendoza in Sp. Proc. No.
107812 is signi cant and substantial. We disagree. For one, the petition in the special
proceedings is an initiatory pleading , hence, it has to be signed by respondent Mendoza as
the then sitting Solicitor General. For another, the record is arid as to the actual
participation of respondent Mendoza in the subsequent proceedings. Indeed, the case was
in slumberville for a long number of years. None of the parties pushed for its early
termination. Moreover, we note that the petition led merely seeks the assistance of the
court in the liquidation of GENBANK. The principal role of the court in this type of
proceedings is to assist the Central Bank in determining claims of creditors against the
GENBANK. The role of the court is not strictly as a court of justice but as an agent to
assist the Central Bank in determining the claims of creditors. In such a proceeding, the
participation of the O ce of the Solicitor General is not that of the usual court litigator
protecting the interest of government.
II
Balancing Policy Considerations
To be sure, Rule 6.03 of our Code of Professional Responsibility represents a
commendable effort on the part of the IBP to upgrade the ethics of lawyers in the
government service. As aforestressed, it is a take-off from similar efforts especially by the
ABA which have not been without di culties. To date, the legal profession in the United
States is still fine tuning its DR 9-101(b) rule.
In fathoming the depth and breadth of Rule 6.03 of our Code of Professional
Responsibility, the Court took account of various policy considerations to assure that its
interpretation and application to the case at bar will achieve its end without necessarily
prejudicing other values of equal importance. Thus, the rule was not interpreted to cause a
chilling effect on government recruitment of able legal talent. At present, it is already
di cult for government to match compensation offered by the private sector and it is
unlikely that government will be able to reverse that situation. The observation is not
inaccurate that the only card that the government may play to recruit lawyers is have them
defer present income in return for the experience and contacts that can later be exchanged
for higher income in private practice. 4 5 Rightly, Judge Kaufman warned that the sacri ce
of entering government service would be too great for most men to endure should ethical
rules prevent them from engaging in the practice of a technical specialty which they
devoted years in acquiring and cause the rm with which they become associated to be
disqualified. 4 6 Indeed, "to make government service more di cult to exit can only make it
less appealing to enter." 4 7
In interpreting Rule 6.03, the Court also cast a harsh eye on its use as a litigation
tactic to harass opposing counsel as well as deprive his client of competent legal
representation. The danger that the rule will be misused to bludgeon an opposing counsel
is not a mere guesswork. The Court of Appeals for the District of Columbia has noted "the
tactical use of motions to disqualify counsel in order to delay proceedings, deprive the
opposing party of counsel of its choice, and harass and embarrass the opponent," and
observed that the tactic was "so prevalent in large civil cases in recent years as to prompt
frequent judicial and academic commentary." 4 8 Even the United States Supreme Court
found no quarrel with the Court of Appeals' description of disquali cation motions as "a
dangerous game." 4 9 In the case at bar, the new attempt to disqualify respondent Mendoza
is di cult to divine. The disquali cation of respondent Mendoza has long been a dead
issue. It was resuscitated after the lapse of many years and only after PCGG has lost many
legal incidents in the hands of respondent Mendoza. For a fact, the recycled motion for
disquali cation in the case at bar was led more than four years after the ling of the
petitions for certiorari, prohibition and injunction with the Supreme Court which were
subsequently remanded to the Sandiganbayan and docketed as Civil Case Nos. 0096-
0099. 5 0 At the very least, the circumstances under which the motion to disqualify in the
case at bar were refiled put petitioner's motive as highly suspect.
Similarly, the Court in interpreting Rule 6.03 was not unconcerned with the prejudice
to the client which will be caused by its misapplication. It cannot be doubted that granting
a disquali cation motion causes the client to lose not only the law rm of choice, but
probably an individual lawyer in whom the client has con dence. 5 1 The client with a
disquali ed lawyer must start again often without the bene t of the work done by the
latter. 5 2 The effects of this prejudice to the right to choose an effective counsel cannot be
overstated for it can result in denial of due process.SIHCDA
The Court has to consider also the possible adverse effect of a truncated reading of
the rule on the o cial independence of lawyers in the government service . According to
Prof. Morgan: "An individual who has the security of knowing he or she can nd private
employment upon leaving the government is free to work vigorously, challenge o cial
positions when he or she believes them to be in error, and resist illegal demands by
superiors. An employee who lacks this assurance of private employment does not enjoy
such freedom." 5 3 He adds: "Any system that affects the right to take a new job affects the
ability to quit the old job and any limit on the ability to quit inhibits o cial independence."
5 4 The case at bar involves the position of Solicitor General, the o ce once occupied by
respondent Mendoza. It cannot be overly stressed that the position of Solicitor General
should be endowed with a great degree of independence. It is this independence that
allows the Solicitor General to recommend acquittal of the innocent; it is this
independence that gives him the right to refuse to defend o cials who violate the trust of
their o ce. Any undue diminution of the independence of the Solicitor General will have a
corrosive effect on the rule of law.
No less signi cant a consideration is the deprivation of the former government
lawyer of the freedom to exercise his profession. Given the current state of our law, the
disquali cation of a former government lawyer may extend to all members of his law rm.
5 5 Former government lawyers stand in danger of becoming the lepers of the legal
profession.
It is, however, proffered that the mischief sought to be remedied by Rule 6.03 of the
Code of Professional Responsibility is the possible appearance of impropriety and loss of
public con dence in government. But as well observed, the accuracy of gauging public
perceptions is a highly speculative exercise at best 5 6 which can lead to untoward results.
5 7 No less than Judge Kaufman doubts that the lessening of restrictions as to former
government attorneys will have any detrimental effect on that free ow of information
between the government-client and its attorneys which the canons seek to protect. 5 8
Notably, the appearance of impropriety theory has been rejected in the 1983 ABA Model
Rules of Professional Conduct 5 9 and some courts have abandoned per se disquali cation
based on Canons 4 and 9 when an actual con ict of interest exists, and demand an
evaluation of the interests of the defendant, government, the witnesses in the case, and the
public. 6 0
It is also submitted that the Court should apply Rule 6.03 in all its strictness for it
correctly disfavors lawyers who "switch sides." It is claimed that "switching sides" carries
the danger that former government employee may compromise con dential o cial
information in the process. But this concern does not cast a shadow in the case at bar. As
afore-discussed, the act of respondent Mendoza in informing the Central Bank on the
procedure how to liquidate GENBANK is a different matter from the subject matter of Civil
Case No. 0005 which is about the sequestration of the shares of respondents Tan, et al., in
Allied Bank. Consequently, the danger that con dential o cial information might be
divulged is nil, if not inexistent. To be sure, there are no inconsistent "sides" to be bothered
about in the case at bar. For there is no question that in lawyering for respondents Tan, et
al., respondent Mendoza is not working against the interest of Central Bank. On the
contrary, he is indirectly defending the validity of the action of Central Bank in liquidating
GENBANK and selling it later to Allied Bank. Their interests coincide instead of colliding . It
is for this reason that Central Bank offered no objection to the lawyering of respondent
Mendoza in Civil Case No. 0005 in defense of respondents Tan, et al. There is no switching
of sides for no two sides are involved.
It is also urged that the Court should consider that Rule 6.03 is intended to avoid
con ict of loyalties, i.e., that a government employee might be subject to a con ict of
loyalties while still in government service. 6 1 The example given by the proponents of this
argument is that a lawyer who plans to work for the company that he or she is currently
charged with prosecuting might be tempted to prosecute less vigorously. 6 2 In the
cautionary words of the Association of the Bar Committee in 1960: "The greatest public
risks arising from post employment conduct may well occur during the period of
employment through the dampening of aggressive administration of government policies."
6 3 Prof. Morgan, however, considers this concern as "probably excessive." 6 4 He opines ". . .
it is hard to imagine that a private rm would feel secure hiding someone who had just
been disloyal to his or her last client — the government. Interviews with lawyers
consistently con rm that law rms want the 'best' government lawyers — the ones who
were hardest to beat — not the least quali ed or least vigorous advocates." 6 5 But again,
this particular concern is a non factor in the case at bar. There is no charge against
respondent Mendoza that he advised Central Bank on how to liquidate GENBANK with an
eye in later defending respondents Tan, et al. of Allied Bank. Indeed, he continues
defending both the interests of Central Bank and respondents Tan, et al. in the above
cases.
Likewise, the Court is nudged to consider the need to curtail what is perceived as
the "excessive in uence of former o cials" or their "clout." 6 6 Prof. Morgan again warns
against extending this concern too far. He explains the rationale for his warning, viz: "Much
of what appears to be an employee's in uence may actually be the power or authority of
his or her position, power that evaporates quickly upon departure from government . . ." 6 7
More, he contends that the concern can be demeaning to those sitting in government. To
quote him further: ". . . The idea that, present o cials make signi cant decisions based on
friendship rather than on the merit says more about the present o cials than about their
former co-worker friends. It implies a lack of will or talent, or both, in federal o cials that
does not seem justi ed or intended, and it ignores the possibility that the o cials will tend
to disfavor their friends in order to avoid even the appearance of favoritism." 6 8
III
The question of fairness
Mr. Justices Panganiban and Carpio are of the view, among others, that the
congruent interest prong of Rule 6.03 of the Code of Professional Responsibility should be
subject to a prescriptive period. Mr. Justice Tinga opines that the rule cannot apply
retroactively to respondent Mendoza. Obviously, and rightly so, they are disquieted by the
fact that (1) when respondent Mendoza was the Solicitor General, Rule 6.03 has not yet
adopted by the IBP and approved by this Court, and (2) the bid to disqualify respondent
Mendoza was made after the lapse of time whose length cannot, by any standard, qualify
as reasonable. At bottom, the point they make relates to the unfairness of the rule if
applied without any prescriptive period and retroactively, at that. Their concern is
legitimate and deserves to be initially addressed by the IBP and our Committee on
Revision of the Rules of Court. TaEIAS
IN VIEW WHEREOF, the petition assailing the resolutions dated July 11, 2001 and
December 5, 2001 of the Fifth Division of the Sandiganbayan in Civil Case Nos. 0096-0099
is denied.
No cost.
SO ORDERED.
Davide, Jr., C.J., Quisumbing, Ynares-Santiago, Sandoval-Gutierrez, Carpio, Austria-
Martinez, Corona and Garcia, JJ., concur.
Panganiban, J., please see separate opinion.
Carpio Morales, J., please see dissenting opinion.
Callejo, Sr., J., please see my dissenting opinion.
Azcuna, J., took no part. I was former PCGG chairman.
Tinga, J., please see separate opinion.
Chico-Nazario, J., took no part.
Separate Opinions
Separate Opinions
PANGANIBAN , J.:
The Petition in this case should be DISMISSED on two grounds: (1) res judicata,
specifically, conclusiveness of judgment; and (2) prescription.
In his Dissent, the esteemed Justice Romeo J. Callejo Sr. argues that Atty. Estelito P.
Mendoza violated Rule 6.03 of the Code of Professional Responsibility, 1 because after
leaving his post as solicitor general, he appeared as counsel in a "matter in which he had
intervened while he was in said service" (as solicitor general). He postulates that the Code
of Professional Responsibility should be a beacon to assist good lawyers "in navigating an
ethical course through the sometimes murky waters of professional conduct," in order "to
avoid any appearance of impropriety." He adds that the Code should be strictly construed
and stringently enforced.
On the other hand, the distinguished Justice Reynato S. Puno contends in his
ponencia that Rule 6.03 of the Code has been incorrectly applied by Justice Callejo,
because the "procedural advice" given by Atty. Mendoza is not the "matter" contemplated
by the said Rule. The ponencia explains that an "ultra restrictive reading of the Rule" would
have "ill-effects in our jurisdiction."
With due respect to both Justices Puno and Callejo, I respectfully submit that there
is no need to delve into the question of whether Rule 6.03 has been transgressed; there is
no need to discuss the merits of the questioned Sandiganbayan Resolutions allowing Atty.
Mendoza to represent private respondents in Civil Case Nos. 0096-0099. After all, a
Resolution issued by the same court resolving the very same issue on the "disquali cation"
of Atty. Mendoza in a case involving the same parties and the same subject matter has
already become final and immutable. It can no longer be altered or changed.
I believe that the material issue in the present controversy is whether Atty. Mendoza
may still be barred from representing these respondents despite (1) a nal Order in
another case resolving the very same ground for disquali cation involving the same
parties and the same subject matter as the present case; and (2) the passage of a
su cient period of time from the date he ceased to be solicitor general to the date when
the supposed disqualification (for violation of the Code) was raised. caAICE
Conclusiveness
of Judgment
The doctrine of res judicata is set forth in Section 47 of Rule 39 of the Rules of
Court, the relevant part of which I quote as follows:
"Sec. 47. Effect of judgments or nal orders . — The effect of a judgment or
nal order rendered by a court of the Philippines, having jurisdiction to pronounce
the judgment or final order, may be as follows:
xxx xxx xxx
|"(b) In other cases, the judgment or nal order is, with respect to the matter
directly adjudged or as to any other matter that could have been raised in relation
thereto, conclusive between the parties and their successors in interest by title
subsequent to the commencement of the action or special proceeding, litigating
for the same thing and under the same title and in the same capacity; and
"(c) In any other litigation between the same parties or their successors in
interest, that only is deemed to have been adjudged in a former judgment or nal
order which appears upon its face to have been so adjudged, or which was
actually and necessarily included therein or necessary thereto."
The above provision comprehends two distinct concepts of res judicata: (1) bar by
former judgment and (2) conclusiveness of judgment. Under the rst concept, res judicata
serves as an absolute proscription of a subsequent action when the following requisites
concur: (1) the former judgment or order was nal; (2) it adjudged the pertinent issue or
issues on their merits; (3) it was rendered by a court that had jurisdiction over the subject
matter and the parties; and (4) between the rst and the second actions, there was identity
of parties, of subject matter, and of causes of action. 2
In regard to the fourth requirement, if there is no identity of causes of action but only
a n identity of issues, res judicataexists under the second concept; that is, under
conclusiveness of judgment. In the latter concept, the rule bars the re-litigation of
particular facts or issues involving the same parties but on different claims or causes of
action. 3 Such rule, however, does not have the same effect as a bar by former judgment,
which prohibits the prosecution of a second action upon the same claim, demand or cause
of action.
In other words, conclusiveness of judgment nds application when a fact or
question has been squarely put in issue, judicially passed upon, and adjudged in a former
suit by a court of competent jurisdiction; it has thus been conclusively settled by a
judgment or nal order issued therein. Insofar as the parties to that action (and persons in
privity with them) are concerned, and while the judgment or order remains unreversed or
un-vacated by a proper authority upon a timely motion or petition, such conclusively
settled fact or question cannot again be litigated in any future or other action between the
same parties or their privies, in the same or in any other court of concurrent jurisdiction,
either for the same or for a different cause of action. Thus, the only identities required for
the operation of the principle of conclusiveness of judgment is that between parties and
issues. 4
While it does not have the same effect as a bar by former judgment, which
proscribes subsequent actions, conclusiveness of judgment nonetheless operates as an
estoppel to issues or points controverted, on which the determination of the earlier nding
or judgment has been anchored. 5 The dictum laid down in such a nding or judgment
becomes conclusive and continues to be binding between the same parties, as long as the
facts on which that judgment was predicated continue to be the facts of the case or
incident before the court. The binding effect and enforceability of that dictum can no
longer be re-litigated, since the said issue or matter has already been resolved and nally
laid to rest in the earlier case. 6
Relevant Antecedents
Showing the Application of the
Conclusiveness Doctrine
Let me now discuss some relevant antecedents to show the application to this case
of res judicata, specifically the principle of conclusiveness of judgment. AIaHES
Pursuant to Executive Order No. 1 of then President Corazon C. Aquino, the

Presidential Commission on Good Government (PCGG) issued sometime in June to
August 1986 several Writs of Sequestration over certain properties of Respondents Lucio
Tan et al., properties they had supposedly acquired by taking advantage of their close
relationship with former President Ferdinand E. Marcos.
On August 17, 1987, the PCGG instituted before the Sandiganbayan a Complaint
against the same respondents for "reversion, reconveyance, restitution, accounting and
damages" vis-à-vis their sequestered properties. The Complaint was docketed as Civil
Case No. 0005 and raffled to the Second Division of the Sandiganbayan (SBN).
Meanwhile, in separate Petitions before this Court, the validity of the sequestration
Writs was questioned by herein respondents, but said Petitions were referred by the Court
to the Sandiganbayan for proper disposition. These cases were ra ed to the SBN Fifth
Division and docketed as Civil Case Nos. 0096, 0097, 0098 and 0099. Civil Case No. 0096,
in particular, involved the validity of the Writ of Sequestration issued by the PCGG over
herein private respondents' shares of stock in Allied Banking Corporation (formerly
General Bank and Trust Company or "GenBank").
In all the above-mentioned cases, Atty. Estelito P. Mendoza was the counsel of Tan
et al.
On February 5, 1991, the PCGG led in Civil Case No. 0005 a Motion 7 to disqualify
Atty. Mendoza as counsel for therein Respondents Tan et al. In a Resolution 8 dated April
22, 1991, the Sandiganbayan (Second Division) denied that Motion. The anti-graft court
likewise denied the Motion for Reconsideration led by the PCGG. 9 Because the latter did
not appeal the denial, the Resolution became final and executory.
Similarly, in Civil Case Nos. 0096-0099, PCGG led a Motion 1 0 to disqualify Atty.
Mendoza as counsel for Respondents Lucio Tan et al. According to respondent court, "the
motion is exactly the same in substance as that motion filed in Civil Case No. 0005"; in fact,
both incidents were taken up jointly by the Second and the Fifth Divisions of the
Sandiganbayan. 1 1 Indeed, a perusal of both Motions reveals that, except as to their
respective captions, the contents of the Motions are identically worded. Both Motions
were anchored essentially on the same ground: that by virtue of Rule 6.03 of the Code of
Professional Responsibility, Atty. Mendoza was prohibited from acting as counsel of Tan
et al. in the pending cases. During his tenure as solicitor general, Atty. Mendoza had
allegedly "intervened" in the dissolution of GenBank, Allied Bank's predecessor.
Thus, in its herein assailed July 11, 2001 Resolution, respondent court resolved to
reiterate and adopt "the Resolution dated April 22, 1991 in Civil Case No. 0005 of the
Second Division . . . denying the motion."
Resolution in Civil Case
No. 0005 a Final Order
As distinguished from an interlocutory order, a nal judgment or order decisively
puts an end to (or disposes of) a case or a disputed issue; in respect thereto, nothing else
— except its execution — is left for the court to do. Once that judgment or order is
rendered, the adjudicative task of the court on the particular matter involved is likewise
ended. 1 2 Such an order may refer to the entire controversy or to some de ned and
separate branch thereof. 1 3 On the other hand, an order is interlocutory if its effects are
merely provisional in character and still leave substantial proceedings to be further
conducted by the issuing court in order to put the issue or controversy to rest. 1 4
I have no quarrel with the general test — expounded, with acknowledged authorities,
in the Dissenting Opinions of Justices Conchita Carpio Morales and Callejo — for
determining whether an order is interlocutory. Such test, however, applies to orders that
dispose of incidents or issues that are intimately related to the very cause of action or
merits of the case. The exception lies when the order refers to a "de nite and separate
branch" of the main controversy, as held by the Court in Republic v. Tacloban City Ice Plant.
15
Under the present factual milieu, the matter of disquali cation of Atty. Mendoza as
counsel for respondents is a "de ned and separate branch" of the main case for "reversion,
reconveyance, and restitution" of the sequestered properties. This matter has no direct
bearing on the adjudication of the substantive issues in the principal controversy. The nal
judgment resolving the main case does not depend on the determination of the particular
question raised in the Motion. The April 22, 1991 Resolution of the Sandiganbayan (Second
Division) in Civil Case No. 0005 had nally and de nitively determined the issue of Atty.
Mendoza's disquali cation to act as counsel for Tan et al. Since that Resolution was not
appealed, it became nal and executory. It became a conclusive judgment insofar as that
particular question was concerned. CEASaT
Applying the Doctrine of

Conclusiveness of Judgment
There is no question as regards the identity of the parties involved in Civil Case Nos.
0005 and 0096. Neither has the jurisdiction of the Second and the Fifth Divisions of the
Sandiganbayan been placed at issue. Clearly, the matter raised in the two Motions to
Disqualify, though separately led at different times in those two cases, are likewise the
same or identical. Also undisputed is the fact that no appeal or certiorari petition was
taken from the April 22, 1991 Resolution of the Second Division in Civil Case No. 0005,
which had denied PCGG's Motion.
To counter the application of res judicata, Justices Morales and Callejo opine that
the said April 22, 1991 Resolution was merely interlocutory. It "merely settled an incidental
or collateral matter . . .; it cannot operate to bar the ling of another motion to disqualify
Atty. Mendoza in the other cases . . .," Justice Callejo explains. I beg to disagree.
True, there is, as yet, no nal adjudication of the merits of the main issues of
"reversion, reconveyance and restitution." However, I submit that the question with respect
to the disquali cation of Atty. Mendoza had nonetheless been conclusively settled. Indeed,
the April 22, 1991 SBN Resolution had de nitively disposed of the Motion to Disqualify on
its merits. Since no appeal was taken therefrom, it became nal and executory after the
lapse of the reglementary period. 1 6
While it merely disposed of a question that was collateral to the main controversy,
the Resolution should be differentiated from an ordinary interlocutory order that resolves
an incident arising from the very subject matter or cause of action, or one that is related to
the disposition of the main substantive issues of the case itself. Such an order is not
appealable, but may still be modified or rescinded upon sufficient grounds adduced before
final judgment. Verily, res judicata would not apply therein. 1 7
But, as illustrated earlier, the issue of the disquali cation of Atty. Mendoza is
separate from and independent of the substantive issues in the main case for "reversion,
reconveyance and restitution." This particular question, in relation to Rule 6.03 of the Code
of Professional Responsibility, was nally settled in the Resolution of April 22, 1991,
issued by the SBN Second Division. In fact, I submit that this question had to be squarely
resolved before trial proceeded, so as not to prejudice the movant in case its arguments
were found to be meritorious. Otherwise, the Motion would be rendered naught.
In 2001, ten years after its ling, the identical Motion to Disqualify Atty. Mendoza in
Civil Case Nos. 0096-0099 nally came up for deliberation before the Fifth Division of the
Sandiganbayan. The Fifth Division correctly noted that the pending Motion was "exactly the
same in substance as that Motion led in Civil Case No. 0005." Thus, it resolved to
reiterate and adopt the Second Division's April 22, 1991 Resolution denying the Motion.
Interestingly and understandably, the Fifth Division of the anti-graft court no longer
separately reviewed the merits of the Motion before it, because the Second Division's
Resolution disposing of exactly the same Motion and involving the same parties and
subject matter had long attained nality. That Resolution became a conclusive judgment
between the parties with respect to the subject matter involved therein.
Exception to Application of
Conclusiveness of Judgment
Justice Morales further cites Kilosbayan v. Morato, 1 8 in which the Court 1 9 said that
"the rule on conclusiveness of judgment or preclusion of issues or collateral estoppel does
not apply to issues of law, at least when substantially unrelated claims are involved."
Explaining further, the Court cited therein the "authoritative formulation" of the exception in
Restatement of the Law 2d, on Judgments, thus:
"§28. Although an issue is actually litigated and determined by a valid and
nal judgment, and the determination is essential to the judgment, relitigation of
the issue in a subsequent action between the parties is not precluded in the
following circumstances:
xxx xxx xxx

(2) The issue is one of law and (a) the two actions involve claims that are
substantially unrelated, or (b) a new determination is warranted in order to take
account or an intervening change in the applicable legal context or otherwise to
avoid inequitable administration of the laws; . . . [Emphasis and omissions in the
original.]"
In accordance with the above exception to the rule, Justice Morales believes that the
doctrine of conclusiveness of judgment does not apply to this case, because the issue at
bar — disquali cation of counsel — "is undoubtedly a legal question" and "Civil Case No.
005 and Civil Case No. 0096 involve two different substantially unrelated claims."
I respectfully disagree with respect to her second point, which actually quali es the
exception. I believe that the two cases involve substantially related claims. Civil Case No.
0005 seeks to recover alleged ill-gotten shares of stock of respondents Tan et al. in Allied
Bank. Civil Case No. 0096 questions the validity of the Sequestration Writ over the same
shares of stock involved in Civil Case No. 0005. In the ultimate analysis, both cases refer to
the determination of who has a valid ownership claim over said stockholdings.
In any event and as earlier discussed, in our jurisdiction, the only identities required
for the principle of conclusiveness of judgment to operate as an estoppel are those of
parties and issues. 2 0
Similar Motions in
Other PCGG Cases
Parenthetically, it is worth mentioning that in their Memorandum, 2 1 Respondents
Tan et al. aver that similar Motions to Disqualify Atty. Mendoza were likewise led in
Sandiganbayan Civil Case Nos. 0095 and 0100. The former case, Sipalay Trading v. PCGG,
involved shares of stock of Lucio Tan in Maranaw Hotels and Resort Corporation; the latter
case, Allied Banking Corporation v. PCGG, sought the invalidation of an Order for the
search and seizure of certain documents of Allied Bank.
In both cases, the Sandiganbayan denied the separate Motions to Disqualify, as well
as the Motions for Reconsideration. No further actions were taken by the PCGG on such
denials, which thus became executory. Consequently, Atty. Mendoza was allowed to
represent Lucio Tan in those cases.
On the merits of the said cases, which were consolidated, the Sandiganbayan
granted both Petitions on August 23, 1993, by nullifying the Writ of Sequestration
questioned in Civil Case No. 0095, as well as the Search and Seizure Order assailed in Civil
Case No. 0100. On March 29, 1996, the Supreme Court a rmed the SBN's Decision in the
aforementioned consolidated cases. 2 2 Consequently, now deemed res judicata are all
issues raised in Civil Case Nos. 0095 and 0100 — principal, incidental and corollary issues,
including the matter of the alleged disqualification of Atty. Mendoza.
Presence of Identities of
Parties and Issues
As earlier discussed, the only identities required for the principle of conclusiveness
of judgment to operate as an estoppel are those of parties and issues. In the case before
us, both identities are clearly present. Hence, the principle of conclusiveness of judgment
applies and bars the present Petition.
From the foregoing, I submit that this Petition should be dismissed on the ground of
conclusiveness of judgment. Parenthetically, the proper recourse to assail the July 11,
2001 and the December 5, 2001 Resolutions of the Sandiganbayan (Fifth Division) should
have been a Petition for Review under Rule 45 of the Rules of Court. The certiorari
proceeding before this Court is apparently a substitute for a lost appeal, deserving only of
outright dismissal. 2 3 In any event, contrary to the allegations of petitioner, respondent
court did not commit grave abuse of discretion amounting to lack or excess of jurisdiction
when it issued the assailed Resolutions. HECTaA
Proscription
Time-Barred
True, Rule 6.03 of the Code of Professional Responsibility does not expressly
specify the period of its applicability or enforceability. However, I submit that one cannot
infer that, ergo, the prohibition is absolute, perpetual and permanent.
All civil actions have a prescriptive period. 2 4 Unless a law makes an action
imprescriptible or lays down no other period, the action is subject to a bar by prescription
ve (5) years after the right of action accrued. 2 5 Criminal offenses — even the most
heinous ones — as well as the penalties therefor, likewise prescribe. 2 6 Relatedly, even so-
called perpetual penalties and multiple sentences have maximum periods. 2 7
Relevantly, it is worth pointing out that Republic Act No. 6713 prohibits public
o cers and employees from practicing their profession for only one year after their
resignation, retirement or separation from public o ce, in connection with any matter
before their former office. 2 8
Prescription is intended to suppress stale and fraudulent claims arising from
transactions or facts that have been obscured by defective memory or the lapse of time.
2 9 It was designed to promote justice by preventing surprises through the revival of claims
that have been allowed to slumber until relevant proofs are lost, memories faded, and
witnesses no longer available. 3 0 Consistent with law and jurisprudence and the purpose of
statutes of limitations, the prohibition on former government attorneys from involvement
in matters in which they took part long ago, pursuant to their o cial functions while in
public service, should likewise have an expiry or duration.
In the present case, the liquidation of GenBank, in which Atty. Mendoza purportedly
participated as then solicitor general, took place in 1977 or more than a quarter of a
century ago. Since early 1986, he has ceased to be solicitor general and has since engaged
in the private practice of law. In 1987, he became counsel for Respondents Tan et al. in
Civil Case No. 0005 and, since 1990, in Civil Case Nos. 0095 to 0100. 3 1 At the time, at
least ten (10) years had passed since his alleged involvement in the GenBank liquidation.
Moreover, in 1991 when the separate Motions to Disqualify were led by PCGG in these
aforementioned cases, he had been outside government service for about ve (5) years,
and fifteen years had gone by since the said liquidation.
Now it is already 2005. If we go by the rationale behind prescription, the extent of
the individual participation of government o cials in the GenBank liquidation may indeed
"have become so obscure from the lapse of time," if not from "defective memory."
It is undeniable that government lawyers usually handle a multitude of cases

simultaneously or within overlapping periods of time. This is in fact a common
remonstration, especially among prosecutors, public attorneys, solicitors, government
corporate counsels, labor arbiters, even trial and appellate judges. Yet, as dutiful public
servants, they cannot reject or shrink from assignments even if they are already
overloaded with work. Similarly, lawyers in private practice, whether by themselves or
employed in law firms, are in a comparative plight.
It would not be strange or uncommon that, in a period of ve years, an attorney in
government service would have handled or interfered in hundreds of legal matters
involving varied parties. 3 2 Thousands of attorneys who have chosen to dedicate their
service to the government for some years are in such a situation. Hence, to perpetually and
absolutely ban them from taking part in all cases involving some matter in which they have
taken part in some distant past, pursuant to their o cial functions then, would be unduly
harsh, unreasonable and unfair. It would be tantamount to an unwarranted deprivation of
the exercise of their profession. Be it remembered that a profession, trade or calling
partakes of the nature of a property right within the meaning of our constitutional
guarantees. 3 3
Moreover, to attribute to a former government lawyer a violation of some ethical rule
because of participation in a matter that has been forgotten in good faith due to the lapse
of a long period of time and does not involve interest adverse to the government would
likewise be harsh, unreasonable and unfair.
Similarly, there are many competent private practitioners who, at some point in their
long careers, would wish to serve the government. Would their ne and wide-ranging
practice and experience, which would otherwise be bene cial to the government, likewise
forever bar them from getting involved in matters that concern a party with whom they
have had dealings several years ago and whose interests are not adversely affected? In the
case of acknowledged experts in speci c elds of law, of what use would their needed
expertise be to the government if they have to inhibit themselves from every case involving
a party they have served in the distant past, considering the limited number of parties that
may actually be involved in a speci c eld (for instance, intellectual property or bioethics
law)?
I submit that the restraint on the exercise of one's profession, or right of
employment including that of attorneys formerly in government service, must survive the
test of fairness and reasonableness. The restriction should not be as pervasive and longer
than is necessary to afford a fair and reasonable protection to the interests of the
government. After all, the disquali cation of government attorneys is a drastic measure,
and courts should hesitate to impose it except when necessary. 3 4
Thus, I submit that the restriction on government lawyers — speci cally with respect
to subsequent engagement or employment in connection with matters falling under the
"congruent-interest representation con ict" — should be allowed to expire after a
reasonable period when no further prejudice to the public may be contemplated. The
duration of this prohibition should be no more than ve (5) years from retirement or
separation from government service. Five years is the prescriptive period for suits for
which no period is prescribed by law. 3 5
It would be reasonable to assume that ve years after separation from the service,
one would most likely have lost the loyalty of one's former personal contacts, if not the
loyal associates themselves, who may be able to facilitate the acquisition of important
information from the former o ce. In all probability, the lapse of the said period would
also naturally obscure to a reasonable extent a lawyer's memory of details of a speci c
case despite active participation in the proceedings therein. This principle holds if, in the
interval, one has handled countless other legal matters as is so common among lawyers in
government offices.
Consequently, after the said period, former government attorneys should be allowed
to take up cases involving matters that were brought before them during their incumbency
in public o ce, so long as such matters do not come within the "adverse-interest con ict"
doctrine and the conflict-of-interest rule 3 6 applicable to all lawyers in general.
For the same reasons, the disquali cation of members of the judiciary under Section
5(b) and (d) 3 7 of Canon 3 of the New Code of Judicial Conduct 3 8 should also prescribe in
ve (5) years from the time they assumed their judicial position; or from the time they
retire from or otherwise end their government service.
I realize that the application of Rule 6.03 of the Code of Professional Responsibility
and Section 5 of Canon 3 of the New Code of Judicial Conduct is quite important to many
members of the bar who have served, or who aspire to serve, the government.
On the one hand, our rules of discipline should protect the interest of the public by
discouraging attorneys in government from so shaping their practice as to give unfair
advantage to their future private clients, or from jeopardizing con dential information
learned while in government service. On the other hand, government service should not be
discouraged by overly strict ethical rules that perpetually prohibit government lawyers
from later making reasonable and appropriate use in private practice of the expertise or
experience they have gained. 3 9
The reality is that the best lawyers will want to join the more lucrative private sector
sooner or later, and the government will hardly be able to attract them if they would later
be unreasonably restricted from putting their government experience to some use. 4 0 After
all, government service should afford lawyers the opportunity to improve their subsequent
private employment. The nature of the job brings such lawyers into inevitable contact with
clients interested in their elds of expertise. Because the practice of law is becoming
increasingly specialized, the likely consequence of a wholesale approach to
disquali cation would be encouragement of a two-track professional structure:
government lawyer, private lawyer. The suspicion, and the reality, of ethical improprieties
unrelated to particular government cases would be eliminated — but at the cost of creating
an insular, static legal bureaucracy. 4 1
Such a pervasive, perpetual ban would deter too many competent attorneys from
entering government service, to the detriment of the public. 4 2 The Court must strike a
balance. I believe that the adoption of the aforementioned period of limitation would
achieve the purpose behind Rule 6.03 of the Code of Professional Responsibility, as well as
Section 5 of Canon 3 of the New Code of Judicial Conduct.
To summarize, the present Petition is barred by the principle of conclusiveness of
judgment, because the April 22, 1991 Resolution of the SBN Second Division in Civil Case
No. 0005 — which resolved on the merits the very same ground for the disquali cation of
Atty. Mendoza, and which involved essentially the same parties and the same subject
matter as the present case — constituted a nal and executory order, no timely appeal
having been taken therefrom.
Furthermore, the disquali cation of former government lawyers from congruent-
interest representation under Rule 6.03 of the Code of Professional Responsibility should
be effective only for a period of ve (5) years from the retirement or the separation from
government service of the official concerned. The purpose of such prescriptive period is to
prevent undue restraint on former government lawyers from the private practice of their
profession, especially in the eld of expertise that they may have gained while in public
o ce. Similarly, the disquali cation of members of the judiciary, under Section 5 (b) and
(d) of Canon 3 of the New Code of Judicial Conduct should end ve (5) years after they
assumed their judicial position.
Implications of the
Dissenting Opinions
Endless re-litigations of the same question, as well as forum shopping, are invited by
the opinion of the dissenters that the April 22, 1991 Resolution of the Sandiganbayan's
Second Division in Civil Case No. 0005 does not bar the ling of another motion to
disqualify Atty. Mendoza from other cases between the same parties. Such a holding
would effectively allow herein petitioner to le exactly the same Motion in each of other
and future cases involving the same parties or their privies and the same subject matters,
even after the rst Motion involving the same question or issue will have already been
finally resolved in one of like cases.

Further, it would also allow petitioner to let a contrary resolution of the incident in
one case become nal through petitioner's withholding recourse to a higher court in order
to await a possible favorable ruling in one of the other cases. As it is, absurdity already
surrounds the handling of Civil Case No. 0005 and No. 0096, both of which involve the
same parties and the same subject matter.
In Civil Case No. 0005, which seeks to recover allegedly unlawfully acquired
properties consisting of shares of stock of Respondent Tan et al. in Allied Bank, Atty.
Mendoza is allowed to serve as their counsel. However, in Civil Case No. 0096, which
merely questions the validity of the Writ of Sequestration issued against the shares of
stock in Allied Bank of the same respondents, he is prohibited, per the dissenters, from
acting as their counsel. This is preposterous.
Moreover, treating the rst Resolution as not yet nal and executory, even if no
appeal or certiorari has timely been taken therefrom, would allow the questioned counsel
to act as such throughout the trial period until nal judgment by the court a quo.
Thereafter, on appeal, his alleged "disquali cation" may still be raised by the other party as
an issue. If the appeals court or this Tribunal ultimately nds that the said counsel is
indeed disquali ed on the ground of con ict of interest or "congruent-interest
representation con ict" and thus reverses the trial court's ruling, the case would
necessarily be remanded for new trial. As a result, the entire proceedings would become
naught and thereby unnecessarily waste the precious time, effort and resources of the
courts as well as the parties. Worse, the evidence (or defense) adduced by the
"disquali ed" counsel through his prior connections with the government (or the adverse
party) could have already created bias in the court or in the public mind.
These are precisely the procedural absurdities abhorred by the doctrine of res
judicata, the fundamental principle of due process and of the rule proscribing forum
shopping.
Having already shown that Atty. Mendoza can no longer be disquali ed at this point
for his alleged violation of Rule 6.03 of the Code of Professional Responsibility, due to res
judicata and prescription, I submit that there is no more need to discuss on the merits
whether indeed there was in fact such violation. Such discussion would be merely
academic and moot.
May I close this Opinion with this oft-quoted ruling of former Chief Justice Pedro L.
Yap, who was himself a former PCGG commissioner, on the soundness of upholding nal
judgments even "at the risk of occasional errors":
"It is a general rule common to all civilized system of jurisprudence, that
the solemn and deliberate sentence of the law, pronounced by its appointed
organs, upon a disputed fact or a state of facts, should be regarded as a nal and
conclusive determination of the question litigated, and should forever set the
controversy at rest. Indeed, it has been well said that this maxim is more than a
mere rule of law, more than an important principle of public policy: and that it is
not too much to say that it is a fundamental concept in the organization of the
jural system. Public policy and sound practice demand that, at the risk of
occasional errors, judgments of courts should become nal at some de nite date
xed by law. The very object for which courts were constituted was to put an end
to controversies." 4 3

WHEREFORE, I vote to DISMISS the Petition.
SANDOVAL-GUTIERREZ , J., concurring:
I join Mr. Justice Reynato S. Puno in his ponencia. Motions to disqualify counsel
from representing their clients must be viewed with jaundiced eyes, for oftentimes they
pose the very threat to the integrity of the judicial process. 1 Such motions are led to
harass a particular counsel, to delay the litigation, to intimidate adversary, or for other
strategic purposes. It therefore behooves the courts to always look for the parties' inner
motivations in filing such motions.
This case illustrates the sad reality that the ling of motions for disquali cation may
be motivated, not by a ne sense of ethics or sincere desire to remove from litigation an
unethical practitioner, but to achieve a tactical advantage.
The facts are undisputed.
Subsequent to the downfall of President Ferdinand E. Marcos in 1986, came the first
edict 2 of President Corazon C. Aquino creating the Presidential Commission on Good
Government (PCGG) to recover the ill-gotten wealth of the Marcoses, their subordinates,
and associates. acCTIS
PCGG's initial target was Lucio Tan and the above-named private respondents (Tan
et al., for brevity). It issued several writs of sequestration on their properties and business
enterprises. To nullify such writs, Tan et al. led with this Court petitions for certiorari,
prohibition and injunction. On February 15, 1990, after comments thereon were submitted,
this Court referred the cases to the Sandiganbayan for proper disposition. These cases
were raffled to it Fifth Division, docketed as follows:
(a) Civil Case No. 0095 — S ipalay Trading Corp. vs. PCGG , which seeks to
nullify the PCGG's Order dated July 24, 1986 sequestering Lucio Tan's shares of
stocks in Maranaw Hotels and Resort Corporation (Century Park Sheraton Hotel);
(b) Civil Case No. 0096 — Lucio Tan, Mariano Tanenglian, Allied Banking
Corp., Iris Holding and Development Corp., Virgo Holdings Development Corp. and
Jewel Holdings, Inc. v. PCGG , which seeks to nullify the PCGG's Order dated June
19, 1986 sequestering the shares of stocks in Allied Banking Corporation held by
and/or in the name of respondents Lucio Tan, Mariano Tanenglian, Iris Holding
and Development Corp., Virgo Holdings Development Corp. and Jewel Holdings,
Inc.;
(c) Civil Case No. 0097 — Lucio Tan, Carmen Khao Tan, Florencio T.
Santos, Natividad Santos, Florencio N. Santos, Jr. and Foremost Farms, Inc. v.
PCGG, which seeks to nullify the PCGG's Order dated August 12, 1986
sequestering the shares of stocks in Foremost Farms, Inc. held by and/or in the
name of Lucio Tan, Carmen Khao Tan, Florencio T. Santos, Natividad Santos and
Florencio N. Santos, Jr.;
(d) Civil Case No. 0098 — Lucio Tan, Carmen Khao Tan, Mariano
Tanenglian, Florencio T. Santos, Natividad Santos, Florencio N. Santos, Jr.,
Shareholdings, Inc. and Fortune Tabacco Corp. v. PCGG , which seeks to nullify
the PCGG's Order dated July 24, 1986 sequestering the shares of stocks in
Fortune Tobacco Corp. held by and/or in the name of Lucio Tan, Carmen Khao
Tan, Mariano Tanenglian, Florencio T. Santos, Natividad Santos, Florencio N.
Santos, Jr., Shareholdings, Inc.; and
(e) Civil Case No. 0099 — Lucio Tan, Carmen Khao Tan, Mariano
Tanenglian, Florencio T. Santos, Natividad Santos and Shareholdings, Inc. v.
PCGG, which seeks to nullify the PCGG's Order dated July 24, 1986 sequestering
the shares of stocks in Shareholdings, Inc. held by and/or in the name of Lucio
Tan, Carmen Khao Tan, Mariano Tanenglian, Florencio T. Santos and Natividad
Santos.
(f) Civil Case No. 0100 — Allied Banking Corp. vs. PCGG, which seeks to
nullify the PCGG's Search and Seizure Order dated August 13, 1986, issued on
bank documents of Allied Banking Corp. 3
Civil Cases Nos. 0096 and 0100 involve Tan, et al.'s shares of stocks in the Allied
Banking Corporation (Allied Bank).
Meanwhile, on July 17, 1987, the PCGG and the O ce of the Solicitor General (OSG)
led with the Sandiganbayan a complaint for " reversion, reconveyance, restitution,
accounting and damages" against Tan et al. This time, the case was ra ed to the Second
Division, docketed therein as Civil Case No. 0005. Among the properties sought to be
reconveyed were Tan et al.'s shares of stocks in the Allied Bank.
Since 1987, Atty. Estelito P. Mendoza has been the counsel for Tan et al. in all the
above cases. But it was not until February 5, 1991, or after four years, that the PCGG led
three (3) identical motions to disqualify Atty. Mendoza . In Civil Cases Nos. 0096-0099,
PCGG led a motion to disqualify him. It led another similar motion in Civil Case No.
0100. The last motion was led in Civil Case No. 0005. His disquali cation was sought
under Rule 6.03 of the Code of Professional Responsibility which reads:
Rule 6.03. — A lawyer shall not, after leaving government service, accept
In each motion, PCGG alleged that Atty. Mendoza, then Solicitor General of the
Marcos Administration, "actively intervened" in the liquidation of General Bank and Trust
Company (GENBANK), subsequently acquired by Tan et al. and became Allied Bank.
PCGG's allegations are similar in every aspect, thus:
"(1) He was the former Solicitor General of the Republic of the Philippines
for almost 14 years appearing on behalf of the Republic in multitudes of cases.
(2) The records show that, as then Solicitor General, Atty. Estelito P.
Mendoza appeared as counsel for the Central Bank of the Philippines in Special
Proceedings No. 107812, pending before the Regional Trial Court of Manila, in
connection with the Central Bank's Petition for assistance in the Liquidation of
General bank and Trust Company (herein called "Genbank", for brevity). The
records also show that Defendant Lucio Tan and his group were the same
persons who acquired Genbank's assets, liabilities and interest.
(3) Consequently, Atty. Mendoza's appearance as counsel for the
Defendant herein runs counter to the long-cherished ethical canon of the legal
profession which prohibits a counsel to appear in litigation adverse to the
interests of his former client. Interpreting this sanction, jurisprudence has held,
that:
'The lawyer's obligation to represent the client with undivided fidelity
and to keep his con dences, also forbid the lawyer from accepting
retainers or employment from others in matters adversely affecting any
interest of the client with respect to which con dence has been reposed in
him. (Canon of Professional Ethics, 6). The prohibition stands even if the
adverse interest is very slight; neither is it material that the intention and
motive of the attorney may have been honest. (5 Am. Jur. 296).'
(4) The reason for the prohibition is obvious. Apart from the obligation to
keep inviolate the prior relationship between counsel and his former client, such
counsel obtains material information in con dence. Consequently, he should not
be allowed to represent a party with adverse interest to his former client, arising
out of the very transaction subject of the former relationship.
(5) In the case at bar, it should be stressed that Defendant Lucio Tan and
his group acquired the assets and liabilities of Genbank. This manner of
acquisition has been alleged to have been fraudulent, arbitrary and a product of
collusion between them and the Central Bank o cials. (Refer to Criminal Case
No. 005 pending before this Honorable Court.) Atty. Mendoza's appearance as
counsel for Defendants, clearly violates the Code of Professional Responsibility,
which provides that:
'A lawyer shall not after leaving the government service accept
intervened while in said service. (Code of Professional Responsibility,
Canon 6, Rule 6.03)'
(6) In the liquidation of Genbank and its eventual acquisition by Lucio Tan
and his group, Atty. Mendoza, as Solicitor-General, personally advised the Central
Bank o cials on the procedure to bring about Genbank's liquidation. In the
Memorandum for the Governor of the Central Bank dated March 29, 1977 (signed
by the following subordinates of then CB Governor Gregorio Licaros, namely:
Senior Deputy Governor Amado R. Brinas (deceased), Deputy Governor Jaime C.
Laya, Deputy Governor & General Counsel Gabriel C. Singson, Special Asst. to the
Governor Carlota P. Valenzuela, Asst. to the Governor Arnulfo B. Aurellano and
Director Antonio T. Castro, Jr.), the following portion disclosed Atty. Mendoza's
participation:
'Immediately after said meeting, we had a conference with the

Solicitor General (atty. Mendoza) and he advised that the following
procedure should be taken:
'(1) Management should submit a memorandum to the Monetary
Board reporting that studies and evaluation had been made since the last
examination of the bank as of August 31, 1976 and it is believed that the
bank cannot be reorganized or placed in a condition so that it may be
permitted to resume business with safety to its depositors and creditors
and the general public.
'(2) If the said report is con rmed by the Monetary Board, it shall
order the liquidation of the bank and indicate the manner of its liquidation
and approve a liquidation plan.
(3) The Central Bank shall inform the principal stockholders of

Genbank of the foregoing decision to liquidate the bank and the liquidation
plan approved by the Monetary Board.

(4) The Solicitor General shall then le a petition in the Court of First
Instance reciting the proceedings which had been taken and praying the
assistance of the Court in the liquidation of Genbank."
Plainly stated, it was Atty. Mendoza who was the legal author of the
closure of Genbank and the eventual sale to Mr. Lucio Tan and his Group. Clearly,
Atty. Mendoza should be disqualified in this case."
On April 22, 1991, the Sandiganbayan issued a Resolution 4 in Civil Case No. 0005
denying PCGG's motion to disqualify Atty. Mendoza.
On May 7, 1991, the Sandiganbayan issued a Resolution 5 in Civil Case No. 0100 also
denying PCGG's similar motion.
Motions for reconsideration were led but to no avail. The PCGG took no further
action. These Resolutions, therefore, became final and executory.
Subsequently, in a Decision dated August 23, 1996, the Sandiganbayan jointly
granted Tan et al.'s petitions in Civil Cases Nos. 0095 and 0100 . On March 29, 1996, this
Court, in G.R. Nos. 112708-09 6 a rmed the said Decision . The PCGG neither assigned as
error nor mentioned the Sandiganbayan's denial of its motion to disqualify Atty. Mendoza
in Civil Case No. 0100.
In the interim, the PCGG’s motion to disqualify Atty. Mendoza in Civil Cases Nos.
0096-0099 remained pending with the Sandiganbayan. It was only on July 11, 2001, or
after ten (10) years, that it denied the PCGG's motion by merely adopting its Resolution
dated April 22, 1991 in Civil Case No. 0005 denying a similar motion, thus:
"Acting on the PCGG's "MOTION TO DISQUALIFY ATTY. ESTELITO P.
MENDOZA AS COUNSEL FOR PETITIONER" dated February 5, 1991 which
appears not to have been resolved by then Second Division of this Court, and it
appearing that (1) the motion is exactly the same in substance as that motion
led in Civil Case No. 0005 as in fact, Atty. Mendoza in his 'OPPOSITION' dated
March 5, 1991 manifested that he was just adopting his opposition to the same
motion led by PCGG in Civil Case No. 0005 and (2) in the Court's Order dated
March 7, 1991, the herein incident was taken-up jointly with the said same
incident in Civil Case No. 0005 (pp. 134-135, Vol. I, Record of Civil Case No. 0096),
this Division hereby reiterates and adopts the Resolution dated April 22, 1991 in
Civil Case No. 0005 of the Second Division (pp. 1418-1424, Vol. III, Record of Civil
Case No. 0005) denying the said motion as its Resolution in the case at bar." 7
The PCGG moved for the reconsideration of the foregoing Resolution, but was
denied. In the Resolution dated December 5, 2001, the Sandiganbayan ruled:
"Acting on respondent PCGG's 'MOTION FOR RECONSIDERATION' dated
August 1, 2001 praying for the reconsideration of the Court's Resolution dated
July 12, 2001 denying its motion to disqualify Atty. Estelito P. Mendoza as
counsel for petitioners, to which petitioners have led an 'OPPOSITION TO
MOTION FOR RECONSIDERATION DATED AUGUST 1, 2001' dated August 29,
2001, as well as the respondent's 'REPLY (To Opposition to Motion for
Reconsideration)' dated November 16, 2001, it appearing that the main motion to
disqualify Atty. Mendoza as counsel in these cases was exactly the same in
substance as that motion to disqualify Atty. Mendoza led by the PCGG in Civil
Case No. 0005 (re: Republic vs. Lucio Tan, et al.) and the resolutions of this Court
(Second Division) in Civil Case No. 0005 denying the main motion as well as of
the motion for reconsideration thereof had become nal and executory when
PCGG failed to elevate the said resolutions to the Supreme Court, the instant
motion is hereby DENIED . 8
Hence, the PCGG's present petition for certiorari and prohibition alleging that the
Sandiganbayan committed grave abuse of discretion in denying its motion to disqualify
Atty. Mendoza in Civil Cases Nos. 0096-0099.
Mr. Justice Romeo J. Callejo, Sr., in his Dissent, granted the petition. On the
procedural issues, he ruled that the assailed Resolutions dated July 11 and December 5,
2001 denying PCGG's motion to disqualify Atty. Mendoza are interlocutory orders, hence,
in challenging such Resolutions, certiorari is the proper remedy, not appeal, as invoked by
Tan et al. Based on the same premise, he likewise rejected Tan et al.'s claim that the
Resolution dated April 22, 1991 in Civil Case No. 0005 constitutes a bar to similar motions
to disqualify Atty. Mendoza under the doctrine of res judicata. HEDCAS
On the substantive aspect, Mr. Justice Callejo's Dissent states that Atty. Mendoza
violated Rule 6.03 of the Code of Professional Responsibility. According to him, Atty.
Mendoza's acts of (a) advising the Central Bank on how to proceed with the liquidation of
GENBANK, and (b) ling Special Proceedings No. 107812, a petition by the Central Bank
for assistance in the liquidation of GENBANK, with the then Court of First Instance (CFI) of
Manila, constitute "intervention." And that while it may be true that his posture in Civil
Cases Nos. 0096-0099 is not adverse to the interest of the Central Bank, still, he violated
the proscription under the "congruent-interest representation conflict" doctrine.
Crucial to the resolution of the present controversy are the following queries:
(1) Is certiorari the proper remedy to assail the Sandiganbayan Resolutions
dated July 11 and December 5, 2001 denying the PCGG's motion to disqualify
Atty. Mendoza in Civil Cases Nos. 0096-0099?
(2) May Sandiganbayan Resolution dated April 22, 1991 in Civil Case No.
0005 be considered a bar to similar motions to disqualify Atty. Mendoza under
the doctrine of res judicata?
(3) Does Atty. Mendoza's participation in the liquidation of GENBANK

constitute intervention?
There are some important points I wish to stress at this incipient stage. I believe
they should be considered if we are to arrive at a fair resolution of this case. The
scattershot manner in which the PCGG led the various motions to disqualify Atty.
Mendoza shows its intent to harass him and Tan et al. It may be recalled that the PCGG
led three (3) identical motions, one in Civil Cases Nos. 0096-0099, another in Civil Case
No. 0100 and the last one in Civil Case No. 0005. Of these cases, only Civil Cases Nos.
0096, 0100 and 0005 actually involve Tan et al.'s shares of stocks in the Allied Bank. Civil
Cases Nos. 0097, 0098 and 0099 have entirely different subject matter. Thus, insofar as
these cases are concerned, the motions to disqualify lack substantive merit. Why then
would the PCGG le identical motions to disqualify Atty. Mendoza in these unrelated
cases? Its intention is suspect. To subject Tan et al. to numerous and baseless motions to
disqualify their lawyer is, no doubt, a form of harassment.
As this juncture, it is important to emphasize that in evaluating motions to disqualify
a lawyer, our minds are not bound by stringent rules. There is room for consideration of the
combined effect of a party's right to counsel of his own choice, an attorney's interest in
representing a client, the nancial burden on a client of replacing disquali ed counsel, and
any tactical abuse underlying a disqualification proceeding. 9
I. Whether the PCGG's proper
remedy to assail the Sandiganbayan
Resolutions dated July 11 and
December 5, 2001 is appeal, not
certiorari.
The bottom line of this issue lies on how we categorize an order denying a motion to
disqualify an opposing party's counsel. Is it interlocutory or final?
An order is deemed nal when it nally disposes of the pending action so that
nothing more can be done with it in the lower court. 1 0 On the other hand, an interlocutory
order is one made during the pendency of an action, which does not dispose of the case,
but leaves it for further action by the trial court in order to settle and determine the entire
controversy. 1 1
I n Antonio vs. Samonte, 1 2 this Court de ned a nal judgment, order or decree as
"one that nally disposes of, adjudicates, or determines the rights, or some rights or rights
of the parties, either on the entire controversy or on some de nite and separate branch,
thereof and which concludes them until it is reversed or set aside . . ." In De la Cruz v. Paras,
1 3 it was held that a court order is nal in character if " it puts an end to the particular
matter resolved or settles de nitely the matter therein disposed of, " such that no further
questions can come before the court except the execution of the order. In Day v. Regional
Trial Court of Zamboanga City, 1 4 this Court ruled that an order which decides an issue or
issues in a complaint is nal and appealable, although the other issue or issues have not
been resolved, if the latter issues are distinct and separate from others.
With the foregoing disquisition as basis, it is my view that an order denying a motion
to disqualify counsel is nal and, therefore, appealable. The issue of whether or not Atty.
Mendoza should be disquali ed from representing Tan et al. is separable from,
independent of and collateral to the main issues in Civil Cases Nos. 0096-0099. In short, it
is separable from the merits. Clearly, the present petition for certiorari, to my mind, is
dismissible. ECTAHc
II. Whether the Resolution dated April

22, 1991 in Civil Case No. 0005
constitutes a bar to similar motions to
disqualify Atty. Mendoza under the
doctrine of res judicata.
I am convinced that the factual circumstances of this case justify the application of
res judicata.
The ponente refuses to apply res judicata on the ground that the Sandiganbayan
Resolution dated April 22, 1991 in Civil Case No. 0005 is just an interlocutory order.
Assuming arguendo that an order denying a motion to disqualify Atty. Mendoza is
indeed an interlocutory order, still, I believe that res judicata applies.
It will be recalled that on August 23, 1996, the Sandiganbayan rendered a Decision
granting Tan et al.'s petitions in Civil Cases Nos. 0095 and 0100 . Such Decision reached
this Court in G.R. Nos. 112708-09 . 1 5 On March 29, 1996, we a rmed it. The PCGG could
have assigned or raised as error in G.R. Nos. 112708-09 the Sandiganbayan Resolution
dated May 7, 1991 in Civil Case No. 0100 denying its motion to disqualify Atty. Mendoza
but it did not. The fact that a nal Decision therein has been promulgated by this Court
renders the Resolution dated May 7, 1991 beyond review. The PCGG may not relitigate
such issue of disquali cation as it was actually litigated and nally decided in G.R. Nos.
112707-09. 1 6 To rule otherwise is to encourage the risk of inconsistent judicial rulings on
the basis of the same set of facts. This should not be countenanced. Public policy, judicial
orderliness, economy of judicial time and the interest of litigants, as well as the peace and
order of society, all require that stability should be accorded judicial rulings and that
controversies once decided shall remain in repose, and that there be an end to litigation. 1 7
III. Whether Atty. Mendoza's
participation in the liquidation of
GENBANK constitutes intervention.
As stated earlier, Atty. Mendoza is sought to be disquali ed under Rule 6.03 of the
Code of Professional Responsibility which states:
Rule 6.03. — A lawyer shall not, after leaving government service, accept
In determining whether Atty. Mendoza committed a breach of this Rule, certain
factual predicates should be established, thus: (a) in connection with what "matter" has
Atty. Mendoza accepted an engagement or employment after leaving the government
service?; (b) in connection with what "matter" did he intervene while in government
service?; and (c) what acts did he particularly perform in "intervening" in connection with
such "matter"?
The PCGG insists that Atty. Mendoza, as Solicitor General, "actively intervened" in the
closure and liquidation of GENBANK. As primary evidence of such intervention, it cited his
act of ling Special Proceedings No. 107812 with the then Court of First Instance (CFI) of
Manila; and the Memorandum dated March 29, 1977 of certain key o cials of the Central
Bank stating that he (Atty. Mendoza) advised them of the procedure to be taken in the
liquidation of GENBANK and that he was furnished copies of pertinent documents relating
to such liquidation.
Tan et al. denied Atty. Mendoza's alleged "intervention," claiming that when he led
Special Proceedings No. 107812 with the CFI of Manila, the decision to prohibit GENBANK
from doing business had already been made by the Central Bank Monetary Board. Also,
Atty. Mendoza, in appearing as their counsel in Civil Cases Nos. 0096-0099, does not take
a position adverse to his former client, the Central Bank.
The rst concern in assessing the applicability of the Rule is the de nition of
"matter." The American Bar Association Committee on Ethics and Professional
Responsibility stated in its Formal Opinion 342 that:
"Although a precise de nition of "matter" as used in the Disciplinary Rule is
di cult to formulate, the term seems to contemplate a discrete and isolatable
transaction or set of transactions between identi able parties . Perhaps the scope
of the term "matter" may be indicated by examples. The same lawsuit or litigation
is the same matter. The same issue of fact involving the same parties and the
same situation or conduct is the same matter. By contrast, work as a government
employee in drafting, enforcing or interpreting government or agency procedures,
regulations, or laws, or in brie ng abstract principles of law, does not disqualify
the lawyer under DR 9-101 (B) from subsequent private employment involving the
same regulations, procedures, or points of law; the same "matter" is not involved
because there is lacking the discrete, identi able transaction or conduct involving
a particular situation and specific parties.
In the case at bar, the Court's task is to determine whether Special Proceedings No.
107812 falls within the concept of "matter." This must be analyzed in relation with Civil
Case No. 0096. Anent Civil Cases Nos. 0097, 0098 and 0099, there is no doubt that they
do not involve the shares of stocks of Tan et al. in Allied Bank. Thus, only Special
Proceedings No. 107812 and Civil Case No. 0096 must be considered.
Special Proceedings No. 107812 is a "petition by the Central Bank for Assistance in
the Liquidation of General Bank and Trust Company" led by Atty. Mendoza as Solicitor
General. The parties therein are the Central Bank of the Philippines and Arnulfo B.
Aurellano, on the one hand, and the Worldwide Insurance & Surety Company, Midland
Insurance Corporation, Standard Insurance Co., Inc. and General Bank & Trust Company, on
the other. The issues, among others, are whether or not the Central Bank acted in good
faith in ordering the liquidation of GENBANK; and, whether the bidding for GENBANK is a
sham.
Civil Case No. 0096 is for the annulment of various sequestration orders issued by
the PCGG over Tan et al.'s properties. The parties therein are Lucio Tan, Mariano
Tanenglian, Allied Banking Corporation, Iris Holdings & Development Corp., Virgo Holdings
& Development Corp., and Jewel Holdings, Inc., as petitioners, and the PCGG, as
respondent. The issues here are "whether the Sequestration Order issued by the PCGG on
June 19, 1986 over the shares of stocks in Allied Bank of Lucio C. Tan and his co-
petitioners in Civil Case No. 0096 was issued without notice, hearing and evidence."
A careful perusal of the above distinctions shows that the two cases are different in
all aspects, such as the parties, issues, facts and relief sought. Special Proceedings No.
107812 cannot therefore be considered a "matter" in connection with which Atty. Mendoza
accepted his engagement as counsel in Civil Case No. 0096. The connection between the
two cases, if there be, is very minimal as to give rise to the application of the proscription.
As aptly stated by Justice Puno:
"But more important, the 'matter' involved in Sp. Proc. No. 107812 is
entirely different from the 'matter' involved in Civil Case No. 0096. Again the bald
facts speak for themselves. It is given that Atty. Mendoza had nothing to do with
the decision of the Central Bank to liquidate GENBANK. It is also given that he did
not participate in the sale of GENBANK to Allied Bank. The 'matter' where he got
himself involved was in informing Central Bank on the procedure provided by law
to liquidate GENBANK through the courts and in ling the necessary petition in
Sp. Proc. No. 107812 in the then Court of First Instance. The subject 'matter' Sp.
Proc. No. 107812, however, is not the same nor related to but different from the
subject 'matter' in Civil Case No. 0096. Civil Case No. 0096 involves the
sequestration of the stocks owned by Tan, et al., in Allied Bank on the alleged
ground that they are ill-gotten. The case does not involve the liquidation of
GENBANK. Nor does it involve the sale of GENBANK to Allied Bank. Whether the
shares of stocks of the reorganized Allied Bank are ill-gotten is far removed from
the issue of the dissolution and liquidation of GENBANK. GENBANK was
liquidated by the Central Bank due, among others, to the banking malpractices of
its owners and o cers. In other words, the legality of the liquidation of GENBANK
is not an issue in the sequestration cases. Indeed, the jurisdiction of the PCGG
does not include the dissolution and liquidation of banks. It goes without saying
that Code 6.03 of the Code of Professional Responsibility cannot apply to Atty.
Mendoza because his alleged intervention while a Solicitor General in Sp. Proc.
No. 107812 is an intervention on a matter different from the matter involved in
Civil Case No. 0096."
As Solicitor General, Atty. Mendoza represented the Republic of the Philippines in
every case where it was involved. As a matter of practice and procedure, he signed every
pleading prepared by his Associates. Taking this into consideration, will it be just to
disqualify him in all the cases containing pleadings bearing his signature? The answer
must be in the negative. His disquali cation might be too harsh a penalty for one who had
served the government during the best years of his life and with all his legal expertise.
Webster Dictionary 1 8 de nes "intervene" as "to come or happen between two points
of time or events;" "to come or be in between as something unnecessary or irrelevant;" or
"to come between as an in uencing force. The ponencia de nes "to intervene" as " to enter
or appear as an irrelevant or extraneous feature or circumstance." "Intervention" is
interference that may affect the interest of others. Corollarily, the counterpart of Rule 6.03
is the Disciplinary Rule (DR) 9-101 (B) of the American Bar Association (ABA), thus:
A lawyer shall not accept private employment in a manner in which he had
"substantial responsibility" while he was a public employee.
Substantial responsibility envisages a lawyer having such a heavy responsibility for

the matter in question that it is likely he becomes personally and substantially involve in
the investigative or deliberative processes regarding the matter. 1 9 Since the word
"intervene" has two connotations, one affecting interest of others and one done merely in
in uencing others, Rule 6.03 should be read in the context of the former. To interpret it
otherwise is to enlarge the coverage of Rule 6.03. Surely, this could not have been the
intention of the drafters of our Code of Professional Responsibility.
Further, that Atty. Mendoza was furnished copies of pertinent papers relative to the
liquidation of GENBANK is not su cient to disqualify him in Civil Case No. 0096. In Laker
Airway Limited v. Pan American World Airways, 2 0 it was held that:
"Like the case law, policy considerations do not support the
disquali cation of a government attorney merely because during his government
service he had access to information about a corporation which subsequently
turned out to become an opponent in a private lawsuit. If the law were otherwise,
the limiting language of the Disciplinary Rule could be bypassed altogether by the
simple claim that an attorney may have viewed con dential information while
employed by the government, and government lawyers would face perpetual
disqualification in their subsequent practices."
In ne, I fully concur in Justice Puno's Dissent that Rule 6.03 of the Code of
Professional Responsibility cannot apply to Atty. Mendoza because his alleged
intervention while a Solicitor General in Special Proceedings No. 107812 is an intervention
in a matter different from the matter involved in Civil Case No. 0096."
WHEREFORE, I vote to dismiss the instant petition for certiorari.
CARPIO MORALES , J., dissenting :

While I concur in the scholarly and ably-written dissent of Justice Romeo J. Callejo,
Sr., I feel compelled to write a separate dissenting opinion to re ect the additional reasons
behind my position.
Justices Artemio V. Panganiban and Angelina Sandoval-Gutierrez are of the opinion
that the petition can be dismissed on procedural grounds, they contending that the
Presidential Commission on Government (PCGG) is precluded from ling a motion to
disqualify Atty. Estelito P. Mendoza as counsel in Civil Case Nos. 0096 since the
Sandiganbayan (Second Division) had already denied PCGG's motion to disqualify Atty.
Mendoza as counsel in Civil Case No. 0005. In short, they are invoking the doctrines of
conclusiveness of judgment and law of the case.
I believe Kilosbayan, Incorporated v. Morato 1 penned by the distinguished Justice
Vicente V. Mendoza is instructive.
To recall, Kilosbayan, Incorporated (Kilosbayan, Inc.), et al. led on January 28, 1994
a petition with this Court challenging the validity of the Contract of Lease between the
Philippine Charity Sweepstakes O ce (PCSO) and the Philippine Gaming Management
Corporation (PGMC) on the ground that the same was made in violation of the charter of
the PCSO. This Court in Kilosbayan, Incorporated v. Guingona, Jr. 2 invalidated the contract.
One of the issues raised before this Court in Kilosbayan, Incorporated v. Guingona,
Jr. was the standing of petitioners to maintain the suit. On that score, this Court held
through Associate Justice (now Chief Justice) Hilario G. Davide, Jr. that petitioners had
standing to sue.
As a result of the decision in Kilosbayan, Incorporated v. Guingona, Jr ., PCSO and
PGMC entered into negotiations for a new agreement which would conform to the Court's
decision.
On January 25, 1995, PCSO and PGMC signed an Equipment Lease Agreement
(ELA).
On February 21, 1995, Kilosbayan, Inc, et al. led a petition against then PCSO Chair
Manuel Morato seeking to declare the ELA invalid on the ground that it was substantially
the same as the Contract of Lease nullified in Kilosbayan, Incorporated v. Guingona, Jr.
Its ruling in Kilosbayan, Incorporated v. Guingona, Jr . notwithstanding, this Court in
Kilosbayan, Incorporated v. Morato ruled that the therein petitioners did not have standing
to sue.
It explained that the doctrines of law of the case and conclusiveness of judgment do
not pose a barrier to the determination of petitioners' right to maintain the suit:
Petitioners argue that inquiry into their right to bring this suit is barred by
the doctrine of "law of the case." We do not think this doctrine is applicable
considering the fact that while this case is a sequel to G.R. No. 113375, it is not its
continuation: The doctrine applies only when a case is before a court a second
time after a ruling by an appellate court. Thus in People v. Pinuila , 103 Phil. 992
999 (1958), it was stated:
"'Law of the case' has been de ned as the opinion delivered on a former
appeal. More speci cally, it means that whatever is once irrevocably
established as the controlling legal rule of decision between the same
parties in the same case continues to be the law of these case , whether
correct on general principles or not, so long as the facts on which such decision
was predicated continue to be facts of the case before the court." (21 C.J.S. 330)
"It may be stated as a rule of general application that, where the evidence
on a second or succeeding appeal is substantially the same as that on the rst or
preceding appeal, all matters, questions, points, or issues adjudicated on the prior
appeal are the law of the case on all subsequent appeals and will not be
considered or re-adjudicated therein. (5 C.J.S. 1267)
"In accordance with the general rule stated in Section 1821, where after a
de nite determination, the court has remanded the cause for further action below ,
it will refuse to examine question other than those arising subsequently to such
determination and remand, or other than the propriety of the compliance with its
mandate; and if the court below has proceeded in substantial conformity to the
directions of the appellate court, its action will not be questioned on a second
appeal. . . .
"As a general rule a decision on a prior appeal of the same is held to be the
law of the case whether that decision is right or wrong, the remedy of the party
deeming himself aggrieved to seek a rehearing. (5 C.J.S. 1276-77)
"Questions necessarily involved in the decision on a former appeal will be

regarded as the law of the case on a subsequent appeal, although the questions
are not expressly treated in the opinion of the court, as the presumption is that all
the facts in the case bearing on the point decided have received due consideration
whether all or none of them are mentioned in the opinion. (5 C.J.S. 1286-87)"
As this Court explained in another case. "The law of the case, as applied to
a former decision of an appellate court, merely expresses the practice of the
courts in refusing to reopen what has been decided. It differs from res judicata in
that the conclusive of the rst judgment is not dependent upon its nality. The
rst judgment is generally, if not universally, not nal, It relates entirely to
questions of law, and is con ned in its questions of law, and is con ned in its
operation to subsequent proceedings in the same case . . . ." ( Municipality of Daet
v. Court of Appeals, 93 SCRA 503, 521 (1979))
It follows that since the present case is not the same one litigated by he
parties before in G.R. No. 113375, the ruling there cannot in any sense be
regarded as "the law of this case." The parties are the same but the cases are not.
HIEASa
Nor is inquiry into petitioners; right to maintain this suit foreclosed by the
related doctrine of "conclusiveness of judgment." 3 According to the doctrine, an
issue actually and directly passed upon and determined in a former suit cannot
again be drawn in question in any future action between the same parties
involving a different of action. (Peñalosa v. Tuason , 22 Phil. 303, 313 (1912);
Heirs of Roxas v. Galido, 108. 582 [1960])
It has been held that the rule on conclusiveness of judgment or
preclusion of issues or collateral estoppel does not apply to issues of
law , at least when substantially unrelated claims are involved . (Montana
v. United States , 440 U.S. 147, 162, 59 L. Ed. 2d 210, 222 (1979); BATOR,
MELTZER, MISHKIN AND SHAPIRO, THE FEDERAL COURTS AND THE FEDERAL
SYSTEM 1058, n. 2 (3rd Ed., 1988)) Following this ruling it was held in
Commissioner v. Sunnen , 333 U.S. 591, 92 L. Ed. 898 (1947) that where a
taxpayer assigned to his wife interest in a patent in 1928 and in a suit it was
determined that the money paid to his wife for the years 1929-1931 under the
1928 assignment was not part of his taxable income, this determination is not
preclusive in a second action for collection of taxes on amounts to his wife under
another deed of assignment for other years (1937 to 1941). For income tax
purposes what is decided with respect to one contract is not conclusive as to any
other contract which was not then in issue, however similar or identical it may be.
The rule on collateral estoppel it was held, "must be con ned to situations where
the matter raised in the second suit is identical in all respects with that decided in
the rst preceding and where the controlling facts and applicable legal rules
remain unchanged." (333 U.S. at 599-600, 92 L. Ed. at 907) Consequently, "if the
relevant facts in the two cases are separate even though they may be similar or
identical, collateral estoppel does not govern the legal issues which occur in the
second case. Thus the second proceeding may involve an instrument or
transaction identical with but in a form separable form, the one dealt with in the
rst proceeding. In that situation a court is free in the second proceeding to make
an independent examination of the legal matters at issue. . . ." (333 U.S. at 601, 92
L. Ed. at 908)
This exception to the General Rule of the Issue Preclusion is authoritatively
formulated in Restatement of the Law 2d, on Judgments, as follows:
§28. Although an issue is actually litigated and determined by a valid and

nal judgment, and the determination is essential to the judgment, relitigation of
the issue in a subsequent action between the parties is not precluded in the
following circumstances:
xxx xxx xxx
(2) The issue is one of law and (a) the two actions involve claims that are
substantially unrelated, or (b) a new determination is warranted in order to take
account of an intervening change in the applicable legal context or otherwise to
avoid inequitable administration of the laws; . . .
Illustration:
xxx xxx xxx
2. A brings an action against the municipality of B for tortious

i n j u r y . The court sustain B's defense of sovereign immunity and
dismisses the action . Several years later A brings the second action
against B for an unrelated tortious injury occurring after the dismissal.
The judgment in the rst action is not conclusive on the question
whether the defense immunity is available to B . Note: The doctrine of stare
decisis may lead the court to refuse to reconsider the question of sovereign
immunity. See §29, Comment i.
The question whether the petitioners have standing to question the
Equipment or ELA is a legal question. As will presently be shown, the ELA, which
the petitioners seek to declare invalid in this proceeding, is essentially different
from the 1993 Contract of lease entered into by the PCSO with the PGMC. Hence
the determination in the prior case (G.R. No. 113375) that the petitioner had
standing to challenge the validity of the 1993 Contract of Lease of the parties
does not preclude determination of their standing in the present suit. (Emphasis
and underscoring supplied; italics in the original)
The doctrine of law of the case does not, I believe, apply to the present case for this
is the rst time that the issue to disqualify Atty. Mendoza has been elevated before this
Court. It is the decision in this case which will be the law of the case. A reading of Republic
v. Sandiganbayan 4 cited by Justice Sandoval-Gutierrez shows that the issue currently
before this Court was not passed upon. Thus, this Court in Republic v. Sandiganbayan
stated:
The key issues, in query form, are:
(1) Was the SANDIGANBAYAN's denial of the PCGG's motion to dismiss

proper?
(2) Should the SANDIGANBAYAN have disposed rst such motion to

dismiss rather than resolving it as part of the judgment?
(3) Was the nullification of the sequestration order issued against SIPALAY
and of the search and seizure order issued against ALLIED correct? SITCEA
(4) Were the sequestration and search and seizure orders deemed
automatically lifted for failure to bring an action in court against SIPALAY and
ALLIED within the constitutionally prescribed period? 5
I also believe that the doctrine of conclusiveness of judgment does not apply since
in the case at bar, the question of whether the motion to disqualify Atty. Mendoza should
be granted is undoubtedly a legal question. Moreover, Civil Case No. 005 and Civil Case No.
0096 involve two different substantially unrelated claims.
Justices Panganiban and Sandoval-Gutierrez further opine that the order of the
Sandiganbayan in Civil Case No. 0005 denying PCGG's motion to disqualify Atty. Mendoza
is not an interlocutory order but a nal order, and that as a result, the principle of res
judicata applies.
With all due respect, I believe that we cannot characterize the denial of PCGG's
motion to disqualify Atty. Mendoza as a nal order. Black's Law Dictionary de nes
interlocutory in the following manner:
Provisional; interim; temporary; not nal. Something intervening between
the commencement and the end of a suit which decides some point or matter, but
is not a nal decision of the whole controversy. An interlocutory order or
decree is one which does not nally determine a cause of action but
only decides some intervening matter pertaining to the cause , and
which requires further steps to be taken in order to enable the court to
adjudicate the cause on the merits. 6 (Emphasis and underscoring supplied)
Justice Oscar M. Herrera, an authority in remedial law, distinguishes between a nal

judgment and interlocutory order in this wise:
The concept of nal judgment, as distinguished from one which has
become nal or executory as of right ( nal and executory), is de nite and settled.
A nal judgment or order is one that nally disposes of a case , leaving
nothing more to be done by the Court in respect thereto, e.g., an
adjudication on the merits which, on the basis of the evidence
presented at the trial, declares categorically what the rights and
obligations of the parties are and which party is in the right; or a
judgment or order that dismisses an action on the ground, for instance,
of res judicata or prescription. Once rendered, the task of the Court is
ended, as far as deciding the controversy or determining the rights and
liabilities of the litigants is concerned . Nothing more remains to be done by
the Court except to await the parties' next move (which among others, may
consist of the ling of a motion for new trial or reconsideration, or the taking of
an appeal) and ultimately, of course, to cause the execution of the judgment once
it becomes nal, or to use the established and more distinctive term, nal and
executory. ( Investment, Inc. v. Court of Appeals cited in Denso [Phils.], Inc. v.
Intermediate Appellate Court, 148 SCRA 280; see also Bank of America NT & SA,
G.R. No. 78017, June 8, 1990 186 SCRA 417)
An interlocutory order refers to something between the
commencement and end of the suit which decides some point or matter
but it is not the nal decision of the whole controversy . 7 (Bitong v. Court
of Appeals, G.R. No. 123553, July 13, 1998, 96 SCAD 205) (Emphasis and
Justice Florenz D. Regalado is of the same view:

An order is considered interlocutory if it does not dispose of the
case but leaves something else to be done by the trial court on the
merits of the case . An order is nal, for purposes of appeal, if it disposes
of the entire case .
Where the order is interlocutory, the movant has to wait for the
judgment and then appeal from the judgment , in the course of which
appeal he can assign as error the said interlocutory order . The
interlocutory order cannot be appealed from separately from the judgment. The
general rule is that where the interlocutory order was rendered without
or in excess of jurisdiction or with grave abuse of discretion, the
remedy is certiorari, prohibition or mandamus depending on the facts of
the case .
Where the order appealed from is interlocutory, the appellate court can
dismiss the appeal even if no objection thereto was led by the appellee in either
the trial or appellate court. 8 (Emphasis and underscoring supplied)
Another respected scholar of remedial law, Justice Jose Y. Feria, has formulated
this guideline in determining whether an order is final or interlocutory:
The test to ascertain whether or not an order or a judgment is interlocutory
or final: Does it leave something to be done in the trial court with respect
to the merits of the case ? If it does, it is interlocutory; if it does not, it is nal.
The key test to what is interlocutory is when there is something more to
be done on the merits of the case . 9 (Emphasis and underscoring)
In fact, this same test was used in Tambaoan v. Court of Appeals, 1 0 cited by Justice
Panganiban to determine whether the trial court's order was interlocutory or final:
In this particular instance, the test to determine whether the order of 06
January 1995 is interlocutory or nal would be: Does it leave something else
to be done by the trial court on the case? If it does, it is interlocutory, if
it does not, it is nal. Evidently, the trial court would still have to hear
the parties on the merits of the case . . . SDTIaE
xxx xxx xxx

Indeed, the word "interlocutory" refers to "something intervening between
the commencement and the end of a suit which decides some point or matter, but
is not a nal decision of the whole controversy." An interlocutory order does not
terminate nor does it finally dispose of the is (sic) case; it does not end the task of
the court in adjudicating the parties' contentions and determining their rights and
liabilities as against each other but leaves something yet to be done by the court
before the case is nally decided on its merits. (Emphasis and underscoring
supplied)
Applying the foregoing test, it is clear that the order denying PCGG's motion to
disqualify Atty. Mendoza is interlocutory because it does not finally dispose of the case.
Interestingly enough, the U.S. Supreme Court is in agreement with Justice Callejo's
conclusion that the Sandiganbayan's denial of PCGG's motion to disqualify Atty. Mendoza
is an interlocutory order. In Firestone Tire & Rubber Company v. Risjord , 1 1 the American
Court ruled that an order denying motions to disqualify the opposing party's counsel in a
civil case are not appealable prior to nal judgment in underlying litigation since such an
order does not fall within the collateral order exception of Cohen v. Bene cial Industrial
Loan Corporation, 1 2 which is cited by Justice Sandoval-Gutierrez.
Under § 1291, the courts of appeals are vested with "jurisdiction of appeals
from all nal decisions of the district courts . . . except where a direct review may
be had in the Supreme Court." We have consistently interpreted this language as
indicating that a party may not take an appeal under this section until there has
been "a decision by the District Court that 'ends the litigation on the merits and
leaves nothing for the court to do but execute the judgment.'" Coopers s &
Lybrand v. Livesay, 437 U.S. 463, 467, 98 S.Ct. 2454, 2457, 57 L.Ed.2d 351 (1978),
quoting Catlin v. United States, 324 U.S. 229, 233, 65 S.Ct. 631, 633, 89 L.Ed. 911
(1945). This rule, that a party must ordinarily raise all claims of error in a single
appeal following nal judgment on the merits, serves a number of important
purposes. It emphasizes the deference that appellate courts owe to the trial judge
as the individual initially called upon to decide the many questions of law and
fact that occur in the course of a trial. Permitting piecemeal appeals would
undermine the independence of the district judge, as well as the special role that
individual plays in our judicial system. In addition, the rule is in accordance with
the sensible policy of "avoid[ing] the obstruction to just claims that would come
from permitting the harassment and cost of a succession of separate appeals
from the various rulings to which a litigation may give rise, from its initiation to
entry of judgment." Cobbledick v. United States, 309 U.S. 323, 325, 60 S.Ct. 540,
541, 84 L.Ed. 783 (1940). See DiBella v. United States, 369 U.S. 121, 124, 82 S.Ct.
654, 656, 7 L.Ed.2d 614 (1962). The rule also serves the important purpose of
promoting e cient judicial administration. Eisen v. Carlisle & Jacquelin, 417 U.S.
156, 170, 94 S.Ct. 2140, 2149, 40 L.Ed.2d 732 (1974).
Our decisions have recognized, however, a narrow exception to the

requirement that all appeals under § 1291 await nal judgment on the merits. In
Cohen v. Bene cial Industrial Loan Corp., supra , we held that a "small class" of
orders that did not end the main litigation were nevertheless nal and appealable
pursuant to § 1291. Cohen was a shareholder's derivative action in which the
Federal District Court refused to apply a state statute requiring a plaintiff in such
a suit to post security for costs. The defendant appealed the ruling without
awaiting nal judgment on the merits, and the Court of Appeals ordered the trial
court to require that costs be posted. We held that the Court of Appeals properly
assumed jurisdiction of the appeal pursuant to § 1291 because the District
Court's order constituted a nal determination of a claim "separable from, and
collateral to," the merits of the main proceeding, because it was "too important to
be denied review," and because it was "too independent of the cause itself to
require that appellate consideration be deferred until the whole case is
adjudicated." Id., at 546, 69 S.Ct. at 1225. Cohen did not establish new law; rather,
it continued a tradition of giving § 1291 a "practical rather than a technical
construction." Ibid. See, e.g., United States v. River Rouge Improvement Co ., 269
U.S. 411, 413-414, 46 S.Ct. 144, 70 L.Ed. 339 (1926); Bronson v. LaCrosse &
Milwaukee R. Co., 67 U.S. 524-531, 2 Black 524, 530-531, 17 L.Ed. 347 (1863);
Forgay v. Conrad , 47 U.S. 201, 203, 6 How. 201, 203, 12 L.Ed.2d 404 (1848);
Whiting v. Bank of the United States , 38 U.S. 6, 15, 13 Pet. 6, 15, 10 L.Ed. 33
(1839). We have recently de ned this limited class of nal "collateral orders" in
these terms: "[T]he order must conclusively determine the disputed question,
resolve an important issue completely separate from the merits of the action, and
be effectively unreviewable on appeal from a nal judgment." Coopers & Lybrand
v. Livesay, supra , 437 U.S. at 468, 98 S.Ct. at 2457 (footnote omitted). See Abney
v. United States , 431 U.S. 651, 658, 97 S.Ct. 2034, 2039, 52 L.Ed.2d 651 (1977).
HCTEDa
[1] Because the litigation from which the instant petition arises
had not reached nal judgment at the time the notice of appeal was
led, [FN11] the order denying petitioner's motion to disqualify
respondent is appealable under § 1291 only if it falls within the Cohen
doctrine . The Court of Appeals held that it does not, and 5 of the other 10
Circuits have also reached the conclusion that denials of disquali cation motions
are not immediately appealable "collateral orders." [FN12] We agree with these
courts that under Cohen such an order is not subject to appeal prior to
resolution of the merits .
FN11. Counsel for respondent represented at oral argument in this Court

that the case was, at that time, in the discovery stage. Tr. of Oral Arg. 35-36.
FN12. See n. 10, supra.

An order denying a disquali cation motion meets the rst part of the
"collateral order" test. It "conclusively determine[s] the disputed question," because
the only issue is whether challenged counsel will be permitted to continue his
representation. In addition, we will assume, although we do not decide, that the
disquali cation question "resolve [s] an important issue completely separate from
the merits of the action," the second part of the test. Nevertheless, petitioner is
unable to demonstrate that an order denying disquali cation is
"effectively unreviewable on appeal from a nal judgment" within the
meaning of our cases .
In attempting to show why the challenged order will be effectively

unreviewable on nal appeal, petitioner alleges that denying immediate review
will cause it irreparable harm. It is true that the nality requirement should "be
construed so as not to cause crucial collateral claims to be lost and potentially
irreparable injuries to be suffered," Mathews v. Eldridge , 424 U.S. 319, 331, n. 11,
96 S.Ct. 893, 901, n. 11, 47 L.Ed.2d 18 (1976). In support of its assertion that it
will be irreparably harmed, petitioner hints at "the possibility that the course of the
proceedings may be indelibly stamped or shaped with the fruits of a breach of
con dence or by acts or omissions prompted by a divided loyalty," Brief for
Petitioner 15, and at "the effect of such a tainted proceeding in frustrating public
policy," id., at 16. But petitioner fails to supply a single concrete example of the
indelible stamp or taint of which it warns. The only ground that petitioner urged in
the District Court was that respondent might shape the products-liability plaintiffs'
claims for relief in such a way as to increase the burden on petitioner. Our cases,
however, require much more before a ruling may be considered "effectively
unreviewable" absent immediate appeal
[2] To be appealable as a nal collateral order, the challenged

order must constitute "a complete, formal and, in the trial court, nal
rejection ," Abney v. United States, supra , 431 U.S. at 659, 97 S.Ct. at 2040, of a
claimed right "where denial of immediate review would render
impossible any review whatsoever," United States v. Ryan , 402 U.S. 530, 533,
91 S.Ct. 1580, 1582, 29 L.Ed.2d 85 (1971). Thus we have permitted appeals prior
to criminal trials when a defendant has claimed that he is about to be subjected
to forbidden double jeopardy, Abney v. United States, supra , or a violation of his
constitutional right to bail, Stack v. Boyle , 342 U.S. 1, 72 S.Ct. 1, 96 L.Ed. 3 (1951)
because those situations, like the posting of security for costs involved in Cohen,
"each involved an asserted right the legal and practical value of which would be
destroyed if it were not vindicated before trial." United States v. MacDonald , 435
U.S. 850, 860, 98 S.Ct. 1547, 1552, 56 L.Ed.2d 18 (1978). By way of contrast, we
have generally denied review of pretrial discovery orders, see, e. g., United States
v. Ryan, supra; Cobbledick v. United States, supra . Our rationale has been that in
the rare case when appeal after nal judgment will not cure an erroneous
discovery order, a party may defy the order, permit a contempt citation to be
entered against him, and challenge the order on direct appeal of the contempt
ruling. See Cobbledick v. United States, supra , at 327, 60 S.Ct. at 542. We have
also rejected immediate appealability under § 1291 of claims that "may fairly be
assessed" only after trial, United States v. MacDonald, supra , at 860, and those
involving "considerations that are `enmeshed in the factual and legal issues
comprising the plaintiff's cause of action.'" Coopers & Lybrand v. Livesay , 437
U.S., at 469, 98 S.Ct., at 2458, quoting Mercantile National Bank v. Langdeau , 371
U.S. 555, 558, 83 S.Ct. 520, 522, 9 L.Ed.2d 523 (1963).
An order refusing to disqualify counsel plainly falls within the

large class of orders that are indeed reviewable on appeal after nal
judgment, and not within the much smaller class of those that are not .
The propriety of the district court's denial of a disquali cation motion will often
be di cult to assess until its impact on the underlying litigation may be
evaluated, which is normally only after nal judgment. The decision whether to
disqualify an attorney ordinarily turns on the peculiar factual situation of the case
then at hand, and the order embodying such a decision will rarely, if ever,
represent a nal rejection of a claim of fundamental right that cannot effectively
be reviewed following judgment on the merits. In the case before us, petitioner
has made no showing that its opportunity for meaningful review will perish
unless immediate appeal is permitted. On the contrary, should the Court of
Appeals conclude after the trial has ended that permitting continuing
representation was prejudicial error, it would retain its usual authority to vacate
the judgment appealed from and order a new trial. That remedy seems plainly
adequate should petitioner's concerns of possible injury ultimately prove well
founded. As the Second Circuit has recently observed, the potential harm that
might be caused by requiring that a party await nal judgment before it may
appeal even when the denial of its disquali cation motion was erroneous does
not "diffe[r] in any signi cant way from the harm resulting from other
interlocutory orders that may be erroneous, such as orders requiring discovery
over a work-product objection or orders denying motions for recusal of the trial
judge." Armstrong v. McAlpin, 625 F.2d 433, 438 (1980), cert. pending, No. 80-431.
But interlocutory orders are not appealable "on the mere ground that
they may be erroneous ." Will v. United States , 389 U.S. 90, 98, n. 6, 88 S.Ct.
269, 275, n. 6, 19 L.Ed.2d 305 (1967). Permitting wholesale appeals on that
ground not only would constitute an unjusti ed waste of scarce judicial
resources, but also would transform the limited exception carved out in Cohen
into a license for broad disregard of the nality rule imposed by Congress in §
1291. This we decline to do. [FN13]
FN13. Although there may be situations in which a party will be irreparably

damaged if forced to wait until nal resolution of the underlying litigation before
securing review of an order denying its motion to disqualify opposing counsel, it
is not necessary, in order to resolve those situations, to create a general rule
permitting the appeal of all such orders. In the proper circumstances, the moving
party may seek sanctions short of disquali cation, such as a protective order
limiting counsel's ability to disclose or to act on purportedly con dential
information. If additional facts in support of the motion develop in the course of
the litigation, the moving party might ask the trial court to reconsider its decision.
Ultimately, if dissatis ed with the result in the District Court and absolutely
determined that it will be harmed irreparably, a party may seek to have the
question certi ed for interlocutory appellate review pursuant to 28 U.S.C. §
1292(b), see n. 7, supra, and, in the exceptional circumstances for which it was
designed, a writ of mandamus from the court of appeals might be available. See
In re Continental Investment Corp., supra, 637 F.2d, at 7; Community Broadcasting
of Boston, Inc. v. FCC , 178 U.S.App.D.C., at 262, 546 F.2d, at 1028. See generally
Comment, The Appealability of Orders Denying Motions for Disquali cation of
Counsel in the Federal Courts, 45 U.Chi.L.Rev. 450, 468-480 (1978). We need not
be concerned with the availability of such extraordinary procedures in the case
before us, because petitioner has made no colorable claim that the harm it might
suffer if forced to await the nal outcome of the litigation before appealing the
denial of its disquali cation motion is any greater than the harm suffered by any
litigant forced to wait until the termination of the trial before challenging
interlocutory orders it considers erroneous. EICSTa
III
[3][4][5] We hold that a district court's order denying a motion to

disqualify counsel is not appealable under § 1291 prior to nal
judgment in the underlying litigation . [FN14]
FN14. The United States in its brief amicus curiae, has challenged
petitioner's standing to attack the order permitting respondent to continue his
representation of the plaintiffs. In light of our conclusion that the Eighth Circuit
was without jurisdiction to hear petitioner's appeal, we have no occasion to
address the standing issue. 1 3 (Emphasis and underscoring supplied; italics in the
original)
The ruling in Firestone was subsequently reiterated in Flanagan v. United States 14

and Richardson-Merrell, Inc. v. Koller. 1 5
Justice Panganiban further suggests that the prohibition in Rule 6.03 of the Code of
Professional Responsibility is not perpetual but merely lasts for ve years primarily relying
on the Civil Code provisions on prescription and the doctrine that the right to practice law
is a property right protected by the Constitution.
I do not agree with this framework of analysis. Carried to its logical conclusion,
Justice Panganiban's proposal would mean that after ve years from the termination of
the attorney-client relationship, all lawyers would be able to represent an interest in conflict
with that of the former client and that they would no longer be bound by the rule on
privileged communication.
It bears emphasis that the law is not trade nor a craft but a profession, a noble
profession at that.
The practice of law is a profession, a form of public trust, the performance
of which is entrusted only to those who are quali ed and who possess good
moral character. If the respect of the people in the honor and integrity of the legal
profession is to be retained, both lawyers and laymen must recognize and realize
that the legal profession is a profession and not a trade, and that the basic ideal
of that profession is to render public service and secure justice for those who seek
its aid. It is not a business, using bargain counter methods to reap large profits for
those who conduct it. From the professional standpoint, it is expressive of three
ideals — organization, learning and public service. The gaining of a livelihood is
not a professional but a secondary consideration. The professional spirit — the
spirit of public service — constantly curbs the urge of that instinct.
The law as a profession proceeds from the basic premise that membership
in the bar is a privilege burdened with conditions and carries with it the
responsibility to live up to its exacting standards and honored traditions. A person
enrolled in its ranks is called upon to aid in the performance of one of the basic
purposes of the state — the administration of justice. That the practice of law is a
profession explains why lawyers repute and of eminence welcome their
designation as counsel de oficio, as an opportunity to manifest delity to the
concept that law is a profession.
The law must be thought of as ignoring commercial standards of success.

The lawyer's conduct is to be measured not by the standards of trade and
counting house but by those of his profession. The Code of Professional
Responsibility, particularly the ethical rule against advertising or solicitation of
professional employment, rests on the fundamental postulate that the practice of
law is a profession.
In the matter of xing his fees, an attorney should never forget that "the
profession is a branch of the administration of justice and not a mere money-
making trade" and that his standing as a member of the bar "is not enhanced by
quibbling relative to just fees, equivalent to the bargaining between a prospective
purchaser and a merchant in the market before a sale is made." Law advocacy is
not capital that yields pro ts. The returns are simple rewards for a job done or
service rendered. It is a calling that, unlike mercantile pursuits which enjoy a
greater deal of freedom from government interference, is impressed with public
interest, for which it is subject to State regulation. However, while the practice of
law is a profession and an attorney is primarily an o cer of the court, he is as
much entitled to protection from the against any attempt by his client to escape
payment of his just fees, as the client against exaction by his counsel of
excessive fees.
To summarize, the primary characteristics which distinguish the legal

profession from business are: (a) "a duty of public service, of which emolument is
a by-product, and in which one may attain the highest eminence without making
much money;" (b) "a relation as o cer of the court to the administration of justice
involving thorough sincerity, integrity, and reliability;" (c) "a relation to client in the
highest degree duciary;" and (d) "a relation to colleagues at the bar characterized
by candor, fairness, and unwillingness to resort to current business methods of
advertising and encroachment on their practice, or dealing directly with their
clients. aDcHIS
These characteristics make the law a noble profession, and the privilege to
practice it is bestowed only upon individuals who are competent intellectually,
academically and morally. Its basic ideal is to render service and to secure justice
for those who seek its aid. If it has to remain a noble and honorable profession
and attain its ideal, those enrolled in its ranks should not only master its tenets
and principles but should also, by their lives, accord continuing delity to them.
And because they are the vanguards of the law and the legal systems, lawyers
must at all times conduct themselves in their professional and private dealings
with honesty and integrity in a manner beyond reproach. 1 6
Moreover, the relation of attorney and client is, however, one of trust and con dence
of the highest order. It is highly duciary in nature and demands utmost delity and good
faith.
. . . A lawyer becomes familiar with all the facts connected with his client's
case. He learns from his client the weak points of the action as well as
the strong ones . Such knowledge must be considered sacred and guarded with
care. No opportunity must be given him to take advantage of the client's
secrets .
The rule is a rigid one designed not alone to prevent the dishonest
practitioner from fraudulent conduct but as well to preclude the honest
practitioner from putting himself in a position where he may be required to
choose between con icting duties, and to protect him from unfounded
suspicion of professional misconduct . The question is not necessarily one
of right of the parties but of adhere to proper professional standards. An
attorney should not only keep inviolate his client's con dence but
should likewise avoid the appearance of treachery and double-dealing .
1 7 (Emphasis and underscoring supplied; citations omitted)
Thus, in Nakpil v. Valdes , 1 8 this Court through Justice Reynato S. Puno held that the
test to determine whether there is a con ict of interest in the representation is
probability, not certainty of conflict. 1 9
Justice Panganiban justi es his theory on the ground that in 5 years time, the lawyer
will develop a mild case of amnesia such that in all probability, the lapse of the said period
would also naturally obscure to a reasonable extent a lawyer's memory of details of a
specific case despite active participation in the proceedings therein." He thus cites his own
personal experience as a member of this Court:
Modesty aside, in my nearly ten (10) years in this Court, I have disposed of
about a thousand cases in full-length ponencias and countless cases by way of
unsigned minute or extended Resolutions. This does not include the thousands of
other cases, assigned to other members of the Court, in which I actively took part
during their deliberations. In all honesty, I must admit that I cannot with certainty
recall the details of the facts and issues in each of these cases, especially in their
earlier ones.
While it is true that over time memory does fade, the ravages of time have been
mitigated with the invention of the paper and pen and its modern offspring — the
computer. It is not uncommon for lawyers to resort to note taking in the course of
handling legal matters.
The proposition that "a profession, trade or calling is a property right within the
meaning of our constitutional guarantees" is not unquali ed. In JMM Promotion and
Management, Inc. v. Court of Appeals 2 0 which Justice Panganiban relies on, this Court
held:
A profession, trade or calling is a property within the meaning of our constitutional
guarantees. One cannot be deprived of the right to work and the right to make a living
because these rights are property rights, the arbitrary and unwarranted deprivation of
which normally constitutes an actionable wrong.
Nevertheless, no right is absolute , and the proper regulation of a
profession, calling, business or trade has always been upheld as a
legitimate subject of a valid exercise of the police power by the state
particularly when their conduct affects either the execution of
legitimate governmental functions, the preservation of the State, the
public health and welfare and public morals . According to the maxim, sic
utere tuo ut alienum non laedas, it must of course be within the legitimate range
of legislative action to de ne the mode and manner in which every one may so
use his own property so as not to pose injury to himself or others.
In any case, where the liberty curtailed affects at most the rights
of property, the permissible scope of regulatory measures is certainly
much wider . (Emphasis and underscoring supplied; italics in the original;
citations omitted)
Under the foregoing, the perpetual application of Rule 6.03 is clearly a valid and proper
regulation.
In his ponencia, Justice Reynato S. Puno labels as insigni cant the role of then
Solicitor General in the liquidation of General Bank and Trust Company (GENBANK), saying
that "it is indubitable from the facts that Atty. Mendoza had no iota of participation in the
decision of the Central Bank to liquidate GENBANK" and that his only involvement was
"advising the Central Bank on how to proceed with the said bank's liquidation and even
ling the petition for its liquidation with the CFI of Manila." Justice Puno observes that "the
procedure of liquidation is simple and is given in black and white in Republic Act No. 265,
section 29."
Atty. Mendoza's lack of participation in the decision of the Central Bank to liquidate
GENBANK is to me not material. What is material is his role in facilitating the liquidation of
GENBANK through his legal expertise. In advising the Central Bank, Atty. Mendoza did not
just mechanically point to section 29 of Republic 265. As then Solicitor General, and as a
lawyer known for his keen legal acumen, Atty. Mendoza synthesized facts, which by reason
of his position he was privy to, and law with a view to successfully liquidate the bank. DEHaAS
Ultimately, Justice Puno advocates for a liberal interpretation of Rule 6.03 since a
strict interpretation would cause "a chilling effect on government recruitment of able legal
talent."
With all due respect, I cannot subscribe to this position which is grounded on the
premise that this is "the only card that the government may play to recruit lawyers."
Effectively, this is likely to result in the compromising of ethical standards which this Court
must never allow. While it is desirable to recruit competent lawyers into government
service, this does not justify the disturbance of our mores.
The canons and rules of the Code of Professional Responsibility must be strictly
construed. Admittedly the salary for serving in government often pales in comparison to
that of the private sector. I submit, however, that while nancial considerations are
important, they are not the sole factor affecting recruitment of lawyers to the government
sector. I would like to think that serving in government is its own reward. One needs only to
look at all of us members of this Court to know that money is not everything. All of us have,
at one point in our legal careers, been tempted by the promise of nancial success that
private practice usually brings. But in the end, we decided to take the road less traveled
and serve in government. And I would like to believe that each and everyone of us has
made a difference. There is more to this mortal coil than the pursuit of material wealth. As
Winston Churchill puts it: "What is the use of living if it be not to strive for noble causes and
make this muddled world a better place for those who will live in it after we are gone?"
ACCORDINGLY, concurring in the dissenting opinion of Justice Romeo J. Callejo, Sr.,
I vote to grant the petition insofar as Civil Case No. 0096 is concerned, thus granting the
motion to disqualify Atty. Estelito P. Mendoza in the said case.
CALLEJO, SR. , J., dissenting :
The Code of Professional Responsibility is not designed for Holmes'

proverbial "bad man" who wants to know just how many corners he may cut, how
close to the line he may play, without running into trouble with the law. Rather, it
is drawn for the "good man" as a beacon to assist him in navigating an ethical
course through the sometimes murky waters of professional conduct. 1
With due respect, I dissent from the majority opinion. I believe that the present case
behooves the Court to strictly apply the Code of Professional Responsibility and provide
an ethical compass to lawyers who, in the pursuit of the profession, often nd themselves
in the unchartered sea of con icting ideas and interests. There is certainly, without
exception, no profession in which so many temptations beset the path to swerve from the
line of strict integrity; in which so many delicate and di cult questions of duty are
continually arising. 2 The Code of Professional Responsibility establishes the norms of
conduct and ethical standards in the legal profession and the Court must not shirk from its
duty to ensure that all lawyers live up to its provisions. Moreover, the Court must not
tolerate any departure from the "straight and narrow" path demanded by the ethics of the
legal profession and enjoin all lawyers to be like Caesar's wife — to be pure and appear to
be so. 3
Factual and Procedural Antecedents
On July 17, 1987, pursuant to its mandate under Executive Order No. 1 4 of then
President Corazon C. Aquino, the PCGG, on behalf of the Republic of the Philippines, led
with the Sandiganbayan a complaint for "reversion, reconveyance, restitution, accounting
and damages" against respondents Lucio Tan, Carmen Khao Tan, Florencio T. Santos,
Natividad P. Santos, Domingo Chua, Tan Hui Nee, Mariano Tanenglian, 5 Estate of Benito
Tan Kee Hiong (represented by Tarciana C. Tan), Florencio N. Santos, Jr., Harry C. Tan, Tan
Eng Chan, Chung Poe Kee, Mariano Khoo, Manuel Khoo, Miguel Khoo, Jaime Khoo,
Elizabeth Khoo, Celso Ranola, William T. Wong, Ernesto B. Lim, Benjamin T. Albacita, Willy
Co, Allied Banking Corporation, Allied Leasing and Finance Corporation, Asia Brewery, Inc.,
Basic Holdings Corp., Foremost Farms, Inc., Fortune Tobacco Corporation, Grandspan
Development Corp., Himmel Industries, Iris Holdings and Development Corp., Jewel
Holdings, Inc., Manufacturing Services and Trade Corp., Maranaw Hotels and Resort Corp.,
Northern Tobacco Redrying Plant, Progressive Farms, Inc., Shareholdings, Inc., Sipalay
Trading Corp., Virgo Holdings and Development Corp. (collectively referred to herein as
respondents Tan, et al., for brevity), then President Ferdinand E. Marcos and Imelda R.
Marcos, Panfilo O. Domingo, Cesar Zalamea, Don Ferry and Gregorio Licaros. The case was
docketed as Civil Case No. 0005 of the Sandiganbayan (Second Division). In connection
therewith, the PCGG issued several writs of sequestration on properties allegedly acquired
by the above-named persons by means of taking advantage of their close relationship and
influence with former President Marcos.
Shortly thereafter, respondents Tan, et al. led with this Court petitions for certiorari,
prohibition and injunction seeking to, among others, nullify the writs of sequestration
issued by the PCGG. After the filing of the comments thereon, this Court referred the cases
to the Sandiganbayan (Fifth Division) for proper disposition, docketed therein as follows:
a. Civil Case No. 0096 — Lucio Tan, Mariano Tanenglian, Allied Banking Corp., Iris
Holding and Development Corp., Virgo Holdings Development Corp. and
Jewel Holdings, Inc. v. PCGG , which seeks to nullify the PCGG's Order
dated June 19, 1986 sequestering the shares of stock in Allied Banking
Corporation held by and/or in the name of respondents Lucio Tan, Mariano
Tanenglian, Iris Holding and Development Corp., Virgo Holdings
Development Corp. and Jewel Holdings, Inc.;
b. Civil Case No. 0097 — Lucio Tan, Carmen Khao Tan, Florencio T. Santos,
Natividad Santos, Florencio N. Santos, Jr., and Foremost Farms, Inc. v.
PCGG, which seeks to nullify the PCGG's Order dated August 12, 1986
sequestering the shares of stock in Foremost Farms, Inc. held by and/or in
the name of Lucio Tan, Carmen Khao Tan, Florencio T. Santos, Natividad
Santos and Florencio N. Santos, Jr.;
c. Civil Case No. 0098 — Lucio Tan, Carmen Khao Tan, Mariano Tanenglian,
Florencio T. Santos, Natividad Santos, Florencio N. Santos, Jr.,
Shareholdings, Inc. and Fortune Tobacco Corp. v. PCGG , which seeks to
nullify the PCGG's Order dated July 24, 1986 sequestering the shares of
stock in Fortune Tobacco Corp. held by and/or in the name of Lucio Tan,
Carmen Khao Tan, Mariano Tanenglian, Florencio T. Santos, Natividad
Santos, Florencio N. Santos, Jr., Shareholdings, Inc.; and
d. Civil Case No. 0099 — Lucio Tan, Carmen Khao Tan, Mariano Tanenglian,
Florencio T. Santos, Natividad Santos and Shareholdings, Inc. v. PCGG ,
which seeks to nullify the PCGG's Order dated July 24, 1986 sequestering
the shares of stock in Shareholdings, Inc. held by and/or in the name of
Lucio Tan, Carmen Khao Tan, Mariano Tanenglian, Florencio T. Santos
and Natividad Santos.
In all these cases, respondents Tan, et al. are represented by their counsel Atty.
Estelito P. Mendoza, who served as the Solicitor General from 1972 to 1986 during the
administration of former President Marcos.
The PCGG led with the Sandiganbayan (Fifth Division) a motion to disqualify Atty.
Mendoza as counsel for respondents Tan, et al. The PCGG alleged that Atty. Mendoza, as
then Solicitor General and counsel to the Central Bank, "actively intervened" in the
liquidation of General Bank and Trust Company (GENBANK), which was subsequently
acquired by respondents Tan, et al. and became Allied Banking Corporation. As shown
above, among the litigated properties are the sequestered shares of stocks in Allied
Banking Corp. (Civil Case No. 0096). HEcSDa
The acquisition of GENBANK by respondents Tan, et al. is outlined by the PCGG as

follows:
1. In 1976, General Bank and Trust Company (GENBANK) got into nancial
di culties. The Central Bank then extended an emergency loan to GENBANK
reaching a total of P310 million. In extending this loan, the Central Bank, however,
took control of GENBANK with the execution of an irrevocable proxy by 2/3 of
GENBANK's outstanding shares in favor of the Central Bank and the election of
seven (7) Central Bank nominees to the 11-member Board of Directors of
GENBANK. Subsequently, on March 25, 1977, the Monetary Board of the Central
Bank issued a Resolution declaring GENBANK insolvent, forbidding it to do
business and placing it under receivership.
2. In the meantime, a public bidding for the sale of GENBANK assets and
liabilities was scheduled at 7:00 P.M. on March 28, 1977. Among the conditions
for the bidding were: (a) submission by the bidder of a letter of credit issued by a
bank acceptable to Central Bank to guaranty payment or as collateral of the
Central Bank emergency loan; and (b) a 2-year period to repay the said Central
Bank emergency loan. On March 29, 1977, the Central Bank, through a Monetary
Board Resolution, approved the bid of the group of respondents Lucio Tan and
Willy Co. This bid, among other things, offered to pay only P500,000.00 for
GENBANK assets estimated at P688,201,301.45; Capital Accounts of
P103,984,477.55; Cash of P25,698,473.00; and the takeover of the GENBANK
Head O ce and branch o ces. The required letter of credit was also not
attached to the bid. What was attached to the bid was a letter of Pan lo O.
Domingo, as PNB President, promising to open an irrevocable letter of credit to
secure the advances of the Central Bank in the amount of P310 million. Without
this letter of commitment, the Lucio Tan bid would not have been approved. But
such letter of commitment was a fraud because it was not meant to be ful lled.
Ferdinand E. Marcos, Gregorio Licaros and Pan lo O. Domingo conspired
together in giving the Lucio Tan group undue favors such as the doing away with
the required irrevocable letter of credit, the extension of the term of payment from
two years to ve years, the approval of second mortgage as collateral for the
Central Bank advances which was de cient by more than P90 Million, and many
other concessions to the great prejudice of the government and of the GENBANK
stockholders.
3. GENBANK eventually became the Allied Banking Corporation in April

1977. Respondents Lucio Tan, Willy S. Co and Florencio T. Santos are not only
incorporators and directors but they are also the major shareholders of this new
bank. 6
Atty. Mendoza allegedly "intervened" in the acquisition of GENBANK by respondents

Tan, et al. since Atty. Mendoza, in his capacity as the Solicitor General, advised the Central
Bank's o cials on the procedure to bring about GENBANK's liquidation. Further, he
appeared as counsel for the Central Bank in connection with its petition for assistance in
the liquidation of GENBANK. He led the said petition with the Court of First Instance (now
Regional Trial Court) of Manila and docketed therein as Special Proceeding No. 107812. 7
The PCGG opined that Atty. Mendoza's present appearance as counsel for
respondents Tan, et al. in the case involving the sequestered shares of stock in Allied
Banking Corp. runs afoul of Rule 6.03 of the Code of Professional Responsibility
proscribing former government lawyers from accepting "engagement or employment in
connection with any matter in which he had intervened while in said service."
Acting on the said motion, the Sandiganbayan (Fifth Division) issued the assailed
Resolution dated July 11, 2001 stating:
Acting on the PCGG's "MOTION TO DISQUALIFY ATTY. ESTELITO P.
MENDOZA AS COUNSEL FOR PETITIONER" dated February 5, 1991 which
appears not to have been resolved by then Second Division of this Court, and it
appearing that (1) the motion is exactly the same in substance as that motion
led in Civil Case No. 0005 as in fact, Atty. Mendoza in his "OPPOSITION" dated
March 5, 1991 manifested that he was just adopting his opposition to the same
motion led by PCGG in Civil Case No. 0005 and (2) in the Court's Order dated
March 7, 1991, the herein incident was taken-up jointly with the said same
incident in Civil Case No. 0005 (pp. 134-135, Vol. I, Record of Civil Case No. 0096),
this Division hereby reiterates and adopts the Resolution dated April 22, 1991 in
Civil Case No. 0005 of the Second Division (pp. 1418-1424, Vol. III, Record of Civil
Case No. 0005) denying the said motion as its Resolution in the case at bar. 8
The PCGG sought the reconsideration thereof but its motion was denied in the
assailed Resolution dated December 5, 2001, which reads:
Acting on respondent PCGG's "MOTION FOR RECONSIDERATION" dated
August 1, 2001 praying for the reconsideration of the Court's Resolution dated
July 12, 2001 denying its motion to disqualify Atty. Estelito P. Mendoza as
counsel for petitioners, to which petitioners have led an "OPPOSITION TO
MOTION FOR RECONSIDERATION DATED AUGUST 1, 2001" dated August 29,
2001, as well as the respondent's "REPLY (To Opposition to Motion for
Reconsideration) dated November 16, 2001, it appearing that the main motion to
disqualify Atty. Mendoza as counsel in these cases was exactly the same in
substance as that motion to disqualify Atty. Mendoza led by the PCGG in Civil
Case No. 0005 (re: Republic vs. Lucio Tan, et al .) and the resolutions of this Court
(Second Division) in Civil Case No. 0005 denying the main motion as well as of
the motion for reconsideration thereof had become nal and executory when
PCGG failed to elevate the said resolutions to the Supreme Court, the instant
motion is hereby DENIED. 9
The Resolution 1 0 dated April 22, 1991 of the Sandiganbayan (Second Division) in
Civil Case No. 0005, which was adopted by the Fifth Division in Civil Cases Nos. 0096-
0099, denied the similar motion to disqualify Atty. Mendoza as counsel for respondents
Tan, et al. holding, in essence, that the PCGG "has failed to prove that there exists an
inconsistency between Atty. Mendoza's former function as Solicitor General and his
present employment as counsel of the Lucio Tan group." 1 1 The Sandiganbayan (Second
Division) explained, thus:
. . . It has been said that the test of inconsistency in cases of the character
under consideration is not whether the attorney has ever appeared for the party
against whom he proposes to appear, but whether his accepting the new retainer
will require him, in forwarding the interests of his new client, to do anything which
will injuriously affect his former client in any matter in which he formerly
represented against him, and whether he will be called upon, in his new relation, to
use against his former client any knowledge or information acquired through their
former connection. Nor does the rule imposing disability on the attorney mean
that he, having once been employed by a client, shall never thereafter appear in
any matter against him but merely forbids the attorney's appearance or acting
against the client where the attorney can use, to the detriment of such client, the
information and con dences acquired during the existence of their relation as
attorney and client (7 C.J.S., Pp. 828-829, cited in Primavera Farms, Inc., et al. vs.
PCGG, supra). Signi cantly, PCGG's "Reply" does not controvert Atty. Mendoza's
claim that in appearing in the instant case, he does not take a position adverse to
that he had taken in behalf of the Central Bank of the Philippines in SP No.
107812. Neither did it challenge Atty. Mendoza's claim that the position he took
as Solicitor General in behalf of the Central Bank in 1977 when he led the said
case (SP No. 107812) has been maintained by his successors in o ce. In fact,
even incumbent Central Bank Governor Jose Cuisia had interposed no objection
to Atty. Mendoza's appearance as counsel for the Lucio Tan group for as long as
he maintains the same position he has taken on behalf of the Central Bank of the
Philippines as Solicitor General, which position refers to the various resolutions of
the Monetary Board and actions of the Central Bank in regard General Bank and
Trust Co. as being regular and in accordance with law (Annex "A", Rejoinder,
Records, Pp. 1404-1405). 1 2
The Sandiganbayan (Second Division) further observed that Atty. Mendoza's

appearance as counsel for respondents Tan, et al. was well beyond the one-year prohibited
period under Section 7(b) of Republic Act No. 6713 since he ceased to be the Solicitor
General in the year 1986. The said provision prohibits a former public o cial or employee
from practicing his profession in connection with any matter before the o ce he used to
be with within one year from his resignation, retirement or separation from public office.
As earlier stated, the April 22, 1991 Resolution of the Sandiganbayan (Second
Division) was adopted by the Fifth Division in the resolutions now being assailed by the
PCGG. Hence, the recourse to this Court by the PCGG.
Procedural Issues
The following procedural issues are raised by respondents Tan, et al.: (1) whether
the assailed Sandiganbayan (Fifth Division) Resolutions dated July 11, 2001 and December
5, 2001 are nal and executory; hence, the PCGG should have led a petition for review on
certiorari under Rule 45 of the Rules of Court and not the instant petition for certiorari
under Rule 65 thereof; and (2) whether the instant petition is already barred by the
Sandiganbayan (Second Division) Resolution dated April 22, 1991 under the doctrine of res
judicata.
In contending that the PCGG availed itself of the wrong remedy in ling the instant
petition for certiorari, respondents Tan, et al. rely on Section 1, Rule 45 of the Rules of
Court which reads:
Section 1. Filing of petition with Supreme Court. — A party desiring to
appeal by certiorari from a judgment or nal order or resolution of the Court of
Appeals, the Sandiganbayan, the Regional Trial Court or other courts whenever
authorized by law, may le with the Supreme Court a veri ed petition for review
o n certiorari. The petition shall raise only questions of law which must be
distinctly set forth.
Section 7 of Presidential Decree No. 1606, as amended by Section 3 of Rep. Act No.
7975, likewise, states:
Sec. 7. Form, Finality and Enforcement of Decisions. —
xxx xxx xxx
Decisions and nal orders of the Sandiganbayan shall be appealable to

the Supreme Court.
I am not persuaded by the arguments proffered by respondents Tan, et al. The

above-mentioned rules do not preclude the resort to this Court by way of a petition for
certiorari under Rule 65 of the Rules of Court of orders or resolutions of the
Sandiganbayan. The special civil action of certiorari may be availed of where there is no
appeal or any plain, speedy and adequate remedy in the ordinary course of law. 1 3
In this case, the remedy of appeal is not available to the PCGG because the denial of
its motion to disqualify Atty. Mendoza as counsel for respondents Tan, et al. is an
interlocutory order; hence, not appealable. The word "interlocutory" refers to "something
intervening between the commencement and the end of a suit which decides some point
or matter, but is not a nal decision of the whole controversy." 1 4 An interlocutory order
does not terminate nor does it nally dispose of the case; it does not end the task of the
court in adjudicating the parties' contentions and determining their rights and liabilities as
against each other but leaves something yet to be done by the court before the case is
finally decided on the merits. 1 5
Accordingly, this Court, in not a few cases, had taken cognizance of petitions for
certiorari of resolutions of the Sandiganbayan which were in the nature of interlocutory
orders. For example, in Serapio v. Sandiganbayan , 1 6 we took cognizance of, albeit
dismissed, the petition for certiorari which assailed the resolutions of the Sandiganbayan
denying the petition for bail, motion for a reinvestigation and motion to quash led by
accused Edward Serapio. Also, in San Miguel Corporation v. Sandiganbayan , 1 7 we took
cognizance of, albeit dismissed, the petitions for certiorari of several resolutions of the
Sandiganbayan involving the sequestered shares of stock in the San Miguel Corp.
To my mind, the PCGG properly led the instant petition for certiorari under Rule 65
to assail the resolutions of the Sandiganbayan (Fifth Division) denying its motion to
disqualify Atty. Mendoza as counsel for respondents Tan, et al. in Civil Cases Nos. 0096-
0099. DHESca
With respect to the second procedural issue raised by respondents Tan, et al., i.e.,
the instant petition is already barred by the Sandiganbayan (Second Division) Resolution
dated April 22, 1991 in Civil Case No. 0005 under the doctrine of res judicata, I submit that
the doctrine of res judicata finds no application in this case.
Section 47, Rule 39 of the Revised Rules of Court reads in part:
Sec. 47. Effect of judgments or nal orders . — The effect of a judgment or
nal order rendered by a court of the Philippines, having jurisdiction to pronounce
the judgment or final order, may be as follows:
xxx xxx xxx
(b) In other cases, the judgment or nal order is, with respect to the matter
directly adjudged or as to any other matter that could have been raised in relation
thereto, conclusive between the parties and their successors-in-interest by title
subsequent to the commencement of the action or special proceeding, litigating
for the same thing and under the same title and in the same capacity; and
(c) In any other litigation between the same parties or their successors-in-
interest, that only is deemed to have been adjudged in a former judgment or nal
order which appears upon its face to have been so adjudged, or which was
actually and necessarily included therein or necessary thereto.
The doctrine of res judicata comprehends two distinct concepts — (1) bar by former
judgment and (2) conclusiveness of judgment. 1 8 Paragraph (b) embodies the doctrine of
res judicata or res adjudicata or bar by prior judgment, while paragraph (c) estoppel by
judgment or conclusiveness of judgment. 1 9 In Macahilig v. Heirs of Grace M. Magalit , 2 0
Justice Artemio Panganiban explained that the term " nal" in the phrase judgments or nal
orders in the above section has two accepted interpretations. In the rst sense, it is an
order that one can no longer appeal because the period to do so has expired, or because
the order has been a rmed by the highest possible tribunal involved. 2 1 The second sense
connotes that it is an order that leaves nothing else to be done, as distinguished from one
that is interlocutory. 2 2 The phrase refers to a nal determination as opposed to a
judgment or an order that settles only some incidental, subsidiary or collateral matter
arising in an action; for example, an order postponing a trial, denying a motion to dismiss
or allowing intervention. Orders that give rise to res judicata or conclusiveness of
judgment apply only to those falling under the second category. 2 3
For res judicata to serve as an absolute bar to a subsequent action, the following
elements must concur: (1) there is a nal judgment or order; (2) the court rendering it has
jurisdiction over the subject matter and the parties; (3) the judgment is one on the merits;
and (4) there is, between the two cases, identity of parties, subject matter and cause of
action. 2 4 When there is no identity of causes of action, but only an identity of issues, there
exists res judicata in the concept of conclusiveness of judgment. 2 5
In any case, whether as a bar by prior judgment or in the concept of conclusiveness
of judgment, the doctrine of res judicata applies only when there is a judgment or nal
order which, as earlier discussed, leaves nothing else to be done. As explained by Justice
Panganiban, a judgment or an order on the merits is one rendered after a determination of
which party is upheld, as distinguished from an order rendered upon some preliminary or
formal or merely technical point. 2 6 To reiterate, the said judgment or order is not
interlocutory and does not settle only some incidental, subsidiary or collateral matter
arising in an action.
The Resolution dated April 22, 1991 of the Sandiganbayan (Second Division) in Civil
Case No. 0005 denying the PCGG's similar motion to disqualify Atty. Mendoza as counsel
for respondents Tan, et al. therein was evidently an interlocutory order as it did not
terminate or nally dispose of the said case. It merely settled an incidental or collateral
matter arising therein. As such, it cannot operate to bar the ling of another motion to
disqualify Atty. Mendoza in the other cases because, strictly speaking, the doctrine of res
judicata, whether to serve as a bar by prior judgment or in the concept of conclusiveness
of judgment, does not apply to decisions or orders adjudicating interlocutory motions. 2 7
Substantive Issue
The substantive issue in this case is whether the present engagement of Atty.
Mendoza as counsel for respondents Tan, et al. in Civil Cases Nos. 0096-0099 violates the
interdiction embodied in Rule 6.03 of the Code of Professional Responsibility.
Canon 6 of our Code of Professional Responsibility reads:
CANON 6 — THESE CANONS SHALL APPLY TO LAWYERS IN
GOVERNMENT SERVICE IN THE DISCHARGE OF THEIR OFFICIAL DUTIES.
Rule 6.01 — The primary duty of a lawyer in public prosecution is not to

convict but to see that justice is done. The suppression of facts or the
concealment of witnesses capable of establishing the innocence of the accused
is highly reprehensible and is cause for disciplinary action.
Rule 6.02 — A lawyer in government service shall not use his public
position to promote or advance his private interests, nor allow the latter to
interfere with his public duties.
Rule 6.03 — A lawyer shall not, after leaving government service, accept
A good number of the Canons in our present Code of Professional Responsibility
were adopted from the Canons of Professional Ethics of the American Bar Association
(ABA). 2 8 Rule 6.03, in particular, is a restatement of Canon 36 of the Canons of
Professional Ethics which provided:
36. RETIREMENT FROM JUDICIAL POSITION OR PUBLIC EMPLOYMENT.

upon the merits of which he has previously acted in a judicial capacity.
employ, should not after his retirement accept employment in connection with
any matter which he has investigated or passed upon while in such o ce or
employ.
Indeed, the restriction against a public o cial from using his public position as a
vehicle to promote or advance his private interests extends beyond his tenure on certain
matters in which he intervened as a public o cial. 2 9 Rule 6.03 makes this restriction
speci cally applicable to lawyers who once held public o ce. A plain reading of the rule
shows that the interdiction (1) applies to a lawyer who once served in the government, and
(2) relates to his accepting "engagement or employment in connection with any matter in
which he had intervened while in said service."
In the United States, an area of concern involving ethical considerations applicable
to former government lawyers is called the "revolving door" — the process by which
lawyers temporarily enter government service from private life then leave it for large fees
in private practice, where they can exploit information, contacts, and in uence garnered in
government service. 3 0 To address this, the disquali cation of a former government lawyer
who has entered private practice may be sought based either on "adverse-interest con ict"
or "congruent-interest representation conflict."
In the "adverse-interest con ict," a former government lawyer is enjoined from
representing a client in private practice if the matter is substantially related to a matter
that the lawyer dealt with while employed by the government and if the interests of the
current and former clients are adverse. 3 1 It must be observed that the "adverse-interest
con ict" applies to all lawyers in that they are generally disquali ed from accepting
employment in a subsequent representation if the interests of the former client and the
present client are adverse and the matters involved are the same or substantially related.
3 2 On the other hand, in "congruent-interest representation con ict," the disquali cation
does not really involve a con ict at all, because it prohibits the lawyer from representing a
private practice client even if the interests of the former government client and the new
client are entirely parallel. 3 3 The "congruent-interest representation con ict," unlike the
"adverse-interest conflict," is unique to former government lawyers. TAEcSC
I believe that Atty. Mendoza's present engagement as counsel for respondents Tan,
et al. in Civil Case No. 0096, which involves the sequestered shares of stocks in Allied
Banking Corp., violates the ethical precept embodied in Rule 6.03 of our Code of
Professional Responsibility, which is akin to the doctrine of "congruent-interest
representation conflict."
Contrary to the majority opinion, the subject
matter in Civil Case No. 0096 is connected with
or related to a "matter," i.e. the liquidation
of GENBANK, in which Atty. Mendoza had
intervened as the Solicitor General
The qualifying words or phrases that de ne the prohibition in Rule 6.03 are (1) "any
matter" and (2) "he had intervened" thereon while he was in the government service. 3 4
The United States' ABA Formal Opinion No. 324 recognized that it is di cult to
formulate a precise de nition of "matter" as used in their Disciplinary Rule (DR),
nonetheless, it suggested that the term "contemplates a discrete and isolatable
transaction or set of transaction between identifiable parties." 3 5
There is no dispute that Atty. Mendoza, as the Solicitor General, advised the Central
Bank on the procedure to bring about the liquidation of GENBANK. It is, likewise, admitted
by respondents Tan, et al. that Atty. Mendoza led with the then CFI of Manila, the petition
for assistance in the liquidation of GENBANK (Special Proceeding No. 107812). 3 6
GENBANK was subsequently acquired by respondents Tan, et al. and became Allied
Banking Corp., whose shares of stocks have been sequestered by the PCGG and presently
subject of Civil Case No. 0096.
The majority opinion downplays the role of Atty. Mendoza by stating that he "merely
advised the Central Bank on the legal procedure to liquidate GENBANK" which procedure is
"given in black and white in R.A. No. 265, section 29." This procedural advice, according to
the majority opinion, "is not the matter contemplated by Rule 6.03 of the Code of
Professional Responsibility."
On the contrary, the acts of Atty. Mendoza may be rightfully considered as falling
within the contemplation of the term "matter" within the meaning of Rule 6.03. Speci cally,
Atty. Mendoza's giving counsel to the Central Bank on the procedure to go about
GENBANK's liquidation and the ling of the petition therefor in Special Proceedings No.
107812 did not merely involve the drafting, enforcing or interpreting government or agency
procedures, regulations or laws, or brie ng abstract principles of law. 3 7 These acts were
discrete, isolatable as well as identi able transactions or conduct involving a particular
situation and speci c party , i.e., the procedure for the liquidation of GENBANK.
Consequently, the same can be properly considered "matter" within the contemplation of
Rule 6.03.
Moreover, contrary to the contention of respondents Tan, et al., the interdiction in
Rule 6.03 does not only apply if precisely the same legal issues are involved in each
representation. 3 8 The Comments of the Integrated Bar of the Philippines (IBP) that
drafted our Code of Professional Responsibility explained that the restriction covers
"engagement or employment, which means that he cannot accept any work or employment
from anyone that will involve or relate to the matter in which he intervened as a public
o cial." 3 9 The sequestration of the shares of stock in Allied Banking Corp. in the names
of respondents Tan, et al., which is subject of Civil Case No. 0096, necessarily involves or
relates to their acquisition of GENBANK upon its liquidation, in which Atty. Mendoza had
intervened as the Solicitor General.
It should be emphasized that Atty. Mendoza's participation in GENBANK's
liquidation is su cient to place his present engagement as counsel for respondents Tan,
et al. in Civil Case No. 0096 within the ambit of Rule 6.03. His role was signi cant and
substantial. The Memorandum dated March 29, 1977 prepared by certain key o cials 4 0
of the Central Bank, is revealing:
Immediately after said meeting, we had a conference with the Solicitor
General and he advised that the following procedure should be taken:
1) Management should submit a memorandum to the Monetary Board reporting
that studies and evaluation had been made since the last examination of
the bank as of August 31, 1976 and it is believed that the bank can not be
reorganized or placed in a condition so that it may be permitted to resume
business with safety to its depositors and creditors and the general public.
2) If the said report is con rmed by the Monetary Board, it shall order the
liquidation of the bank and indicate the manner of its liquidation and
approve a liquidation plan.
3) The Central Bank shall inform the principal stockholders of Genbank of the
foregoing decision to liquidate the bank and the liquidation plan approved
by the Monetary Board.
4) The Solicitor General shall then le a petition in the Court of First Instance
reciting the proceedings which had been taken and praying the assistance
of the Court in the liquidation of Genbank. 4 1
The Minutes No. 13 dated March 29, 1977 of the Monetary Board likewise shows
that Atty. Mendoza was furnished copies of pertinent documents relating to GENBANK in
order to aid him in ling with the court the petition for assistance in the bank's liquidation.
The pertinent portion of the said minutes reads:
The Board decided as follows:
xxx xxx xxx

E. To authorize Management to furnish the Solicitor General with a copy of the
subject memorandum of the Director, Department of Commercial and
Savings Bank dated March 29, 1977, together with copies of:
1. Memorandum of the Deputy Governor, Supervision and Examination
Sector, to the Monetary Board, dated March 25, 1977, containing a
report on the current situation of Genbank;
2. Aide Memoire on the Antecedent Facts Re: General Bank and Trust Co.,
dated March 23, 1977;
3. Memorandum of the Director, Department of Commercial and Savings

Bank, to the Monetary Board, dated March 24, 1977, submitting,
pursuant to Section 29 of R.A. No. 265, as amended by P.D. No.
1007, a report on the state of insolvency of Genbank, together with
its attachments; and
4. Such other documents as may be necessary or needed by the Solicitor

General.
for his use in ling a petition in the Court of First Instance praying the assistance
of the Court in the liquidation of Genbank." 4 2
By advising the Central Bank on the procedure to bring about the liquidation of
GENBANK and, more signi cantly, by ling the petition for assistance in its liquidation,
Atty. Mendoza had clearly intervened in the liquidation of GENBANK and its subsequent
acquisition by respondents Tan, et al. ACDTcE
I disagree with the ponencia's holding that Atty. Mendoza could not be considered
as having intervened as it describes the participation of Atty. Mendoza by stating that he
"had no iota of participation in the decision of the Central Bank to liquidate GENBANK."
That the decision to declare GENBANK insolvent was made wholly by the Central
Bank, without the participation of Atty. Mendoza, is not in question. Rather, it was his
participation in the proceedings taken subsequent to such declaration, i.e., his giving
advise to the Central Bank on how to proceed with GENBANK's liquidation and his ling of
the petition in Special Proceeding No. 107812 pursuant to Section 29 43 of Rep. Act No.
265, that constitutes "intervention" as to place him within the contemplation of Rule 6.03.
To intervene means —
1: to enter or appear as an irrelevant or extraneous feature or circumstance;
2 : to occur, fall or come between points of time or events ; 3: to come in or
between by way of hindrance or modi cation: INTERPOSE ; 4: to occur or lie
between two things . . . 4 4
Further, "intervention" is defined as —
1: the act or fact of intervening: INTERPOSITION; 2: interference that may
affect the interests of others . . . 4 5
With the foregoing de nitions, it is not di cult to see that by giving counsel to the
Central Bank on how to proceed with GENBANK's liquidation and ling the necessary
petition therefor with the court, Atty. Mendoza "had intervened," "had come in," or "had
interfered," in the liquidation of GENBANK and the subsequent acquisition by respondents
Tan, et al. of the said banking institution. Moreover, his acts clearly affected the interests
of GENBANK as well as its stockholders.
Contrary to the majority opinion, Rule 6.03 applies
even if Atty. Mendoza did not "switch sides" or did not
take inconsistent sides. Rule 6.03 applies even if
no conflict of interest exists between Atty. Mendoza's
former government client (Central Bank) and
his present private practice clients (respondents Tan, et al.)
As earlier intimated, Rule 6.03 is a restatement of Canon 36 of the ABA's Canons of
Professional Ethics, now superseded by the ABA's Code of Professional Responsibility. In
lieu of the old Canon 36, Canon 9 of the ABA's Code of Professional Responsibility
mandates that:
A lawyer should avoid even the appearance of professional impropriety.
Providing speci city to this general caveat, Disciplinary Rule (DR) 9–101(B)
commands, thus:
A lawyer shall not accept private employment in a matter in which he had
substantial responsibility while he was a public employee.
The purpose of the interdiction, as stated in the ABA Committee on Professional

Ethics, Opinion No. 37, is —
"[to avoid] the manifest possibility that . . . [a former Government lawyer's]
action as a public legal o cial might be in uenced (or open to the charge that it
had been in uenced) by the hope of later being employed privately to uphold or
upset what he had done. 4 6
The old Canon 36, as well as the present Canon 9 and DR9-101(B), rest on the policy
consideration that an attorney must seek to avoid even the appearance of evil. 4 7
Being undoubtedly of American origin, the interpretation adopted by the American
courts and the ABA has persuasive effect on the interpretation of Rule 6.03. 4 8
Accordingly, I nd the case of General Motors Corporation v. City of New York , 4 9 where
the pertinent ethical precepts were applied by the United States Court of Appeals (2nd
Circuit), particularly instructive. The said US court disquali ed the privately retained
counsel of the City of New York in the antitrust case it led against the General Motors
Corp. because the said counsel, a former lawyer of the US Department of Justice, had not
only participated in the latter's case against General Motors Corp. but signed the
complaint in that action.
George D. Reycraft, the counsel whose disquali cation was sought in that case,
served as a trial attorney assigned at the General Litigation Services of the Antitrust
Division of the US Department of Justice from 1952 to 1962. Sometime in 1954, he
participated in the investigation of the alleged monopolization by General Motors Corp. of
the city and intercity bus business. The investigation culminated with the ling of the
antitrust complaint against General Motors Corp. in 1956. Reycraft signed the said
complaint but alleged that after 1958 through the time that he left the Department of
Justice in 1962, he no longer had any participation in that case.
In disqualifying Reycraft, the US Court gave short shrift to the argument that
Reycraft "has not changed sides" — i.e. "there is nothing antithetical in the postures of the
two governments in question,” stating that, per Opinion No. 37 of the ABA Commission on
Professional Ethics, the ethical precepts of Canon 9 and DR9-101(B) apply irrespective of
the side chosen in private practice. The said court believed that it "is as it should be for
there lurks great potential for lucrative returns in following into private practice the course
already charted with the aid of governmental resources." 5 0

The US Court stressed that Reycraft not only participated in the investigation, but he
signed the complaint in that action and admittedly had "substantial responsibility" in its
investigatory and preparatory stages. It thus concluded that "where the overlap of issues
is so plain and the involvement while in Government employ is so direct, the appearance of
impropriety must be avoided through disqualification." 5 1
The General Motors case is illustrative of the "congruent-interest representation
con ict" doctrine. It bears stressing that this doctrine applies uniquely to former
government lawyers and has been distinguished from the normal rule applicable for non-
government lawyers in this wise —
To illustrate the normal rule for non-government lawyers, imagine that the
lawyer has represented passenger A and has recovered substantial damages in a
suit against a driver. No con ict of interest principle or rule restricts the lawyer
from later representing passenger B against the driver with respect to exactly the
same accident. B may obtain the bene ts of the lawyer's help regardless of the
fact that the lawyer might be able to employ to B's advantage information and
strategies developed in the representation of A. The critical element is that the
interest of A and B do not conflict.
The analysis does not change if we move from an area that is entirely
private into one that is arguably more connected with the public interest. Suppose
a lawyer in private practice represents Small Soap Company in its suit for
damages under the federal antitrust laws against Giant Soap Company. The
lawyer would not be disquali ed from representing Medium Soap Company
against Giant Soap in a succeeding suit for damages based on precisely the
same conspiracy. The congruence of interests between Small Soap and Medium
Soap would almost certainly mean that the lawyer could represent both clients. In
the absence of a con ict — an opposing interest between the two clients — the
existence of a substantial relationship between the matters involved in both cases
is irrelevant.
Now, suppose the lawyer has led suit in behalf of the government against
Giant Soap Company to force divestiture of an acquired company on a theory
that, because of the acquisition, Giant Soap has monopolized an industry in
con ict with antitrust laws. May the lawyer, after leaving government service and
while in private practice, represent Medium Soap Company against Giant Soap in
a suit for damages based on the same antitrust conspiracy? Does the absence of
opposing interests between Medium Soap and the lawyer's former government
client similarly mean that there should be no disqualification?
At this point, the rules for the former government lawyer diverge sharply
from the normal former-client con ict rules: the lawyer is disquali ed from
representing the successive client in private practice, despite the fact that the
interests of the client and the lawyer's former government client are apparently
aligned. All that is required for disquali cation is the relationship between the
former and the succeeding representations. 5 2
The rationale for the "congruent-interest representation con ict" doctrine has been
explained, thus:
The rationale for disquali cation is rooted in a concern with the impact
that any other rule would have upon the decisions and actions taken by the
government lawyer during the course of the earlier representation of the
government. Both courts and commentators have expressed the fear that
permitting a lawyer to take action in behalf of a government client that later could
be to the advantage of private practice client would present grave dangers that a
government lawyer's largely discretionary actions would be wrongly in uenced by
the temptation to secure private practice employment or to favor parties who
might later become private practice clients . . .
The fear that government lawyers will misuse government power in that
way is not idle. Lawyers who represent the government often exercise enormous
discretion unchecked by an actual client who oversees the lawyer's work. For that
reason a special rule is needed to remove the incentive for government lawyers to
take discretionary decisions with an eye cast toward advantages in future,
nongovernmental employment. The broad disquali cation accomplishes that
and, particularly under rubrics that do not invariably require disquali cation of the
entire rm with which the former government lawyer practices, does it without
unnecessarily discouraging lawyers from entering temporary public service. 5 3
The foregoing disquisition applies to the case of Atty. Mendoza. Indeed, a textual
reading of Rule 6.03 of our Code of Professional Responsibility reveals that no con ict of
interests or adverse interests is required for the interdiction to apply. If it were so, or if
conflict of interests were an element, then the general conflict of interests rule (Rule 15.03)
5 4 would apply. Rather, the interdiction in Rule 6.03 broadly covers "engagement or
employment in connection with any matter in which he had intervened while in the said
service." To reiterate, the drafters of our Code of Professional Responsibility had
construed this to mean that a lawyer "cannot accept any work or employment from anyone
that will involve or relate to the matter in which he intervened as a public o cial, except on
behalf of the body or authority which he served during his public employment." 5 5
In Civil Case No. 0096, Atty. Mendoza is certainly not representing the Central Bank
but respondents Tan, et al. Granting arguendo that the interests of his present private
practice clients (respondents Tan, et al.) and former government client (Central Bank) are
apparently aligned, the interdiction in Rule 6.03 applies. CaDEAT
Rule 6.03 purposely does not contain an explicit

temporal limitation because cases have to be
resolved based on their peculiar circumstances
Unless the Code itself provides, the Court cannot set a prescriptive period for any of
the provisions therein. That Rule 6.03, in particular, contains no explicit temporal limitation
is deliberate. It recognizes that while passage of time is a factor to consider in
determining its applicability, the peculiarities of each case have to be considered. For
example, in Control Data Corp. v. International Business Mach. Corp . , 5 6 the US District
Court of Minnesota held that the lawyer who, 15 years earlier, while an employee of the
Department of Justice had been in charge of negotiations in antitrust case against a
corporation, was not disquali ed from acting as counsel for the plaintiffs suing such
corporation. On the other hand, the lawyer whose conduct was the subject of the ABA
Opinion No. 37, earlier cited, was himself 10 years removed from the matter over which he
had substantial responsibility while in public employ at the time he accepted the private
engagement relating to the same matter. 5 7 Clearly, it is the degree of involvement or
participation in the matter while in government service, not the passage of time, which is
the crucial element in Rule 6.03.
The Code of Professional Responsibility is a codi cation of legal ethics, that "body
of principles by which the conduct of members of the legal profession is controlled. More
speci cally and practically considered, legal ethics may be de ned as that branch of moral
science which treats of the duties which the attorney-at-law owes to his clients, to the
courts, to the bar, and to the public." 5 8 In this connection, the Court has consistently
characterized disciplinary proceedings, including disquali cation cases, against lawyers as
sui generis, neither purely civil nor purely criminal, thus:
[D]isciplinary proceedings against lawyers are sui generis. Neither purely
civil nor pure criminal, they do not involve a trial of an action or a suit, but are
rather investigations by the Court into the conduct of one of its o cers . Not being
intended to in ict punishment, [they are] in no sense a criminal prosecution.
Accordingly, there is neither a plaintiff nor a prosecutor therein. [They] may be
initiated by the Court motu propio. Public interest is [their] primary objective, and
the real question for determination is whether or not the attorney is still a t
person be allowed the privileges as such. Hence, in the exercise of its disciplinary
powers, the Court merely calls upon a member of the Bar to account for his
actuations as an o cer of the Court with the end view of preserving the purity of
the legal profession and the proper and honest administration of justice. . . 5 9
For this reason, the civil law concept of prescription of actions nds no application
in disqualification cases against lawyers.
In this case, while the liquidation of GENBANK took place in 1977, the period that
had lapsed is not su cient to consider it far removed from the present engagement of
Atty. Mendoza as counsel for respondents Tan, et al. in Civil Case No. 0096. In fact, the
validity of the said liquidation is still pending with the Court. 6 0 The validity of the
sequestration of the shares in Allied Banking Corp., which is the subject matter of Civil
Case No. 0096, is necessarily intertwined with Special Proceeding No. 107812 involving
the liquidation of GENBANK and the acquisition thereof by respondents Tan, et al. The
issues presented in the two proceedings are so overlapping and the involvement of Atty.
Mendoza while in government employ is so plain, direct and substantial, his
disquali cation as counsel for respondents Tan, et al. in Civil Case No. 0095 is warranted
under Rule 6.03.
Contrary to the majority opinion, the peculiar
circumstances of this case justify the strict application
of Rule 6.03
The ponencia cautions against the strict application of Rule 6.03 because it would
have a "chilling effect on the right of government to recruit competent counsel to defend
its interests." This concern is similar to that raised by the City of New York in the General
Motors case where it argued that if Reycraft was disquali ed, the US court would "chill the
ardor for Government service by rendering worthless the experience gained in Government
employ." 6 1 It appeared that the City of New York relied on the pronouncement in the
earlier case of United States v. Standard Oil Co, 6 2 known as the Esso Export Case, thus:
If the government service will tend to sterilize an attorney in too large an

area of law for too long a time, or will prevent him from engaging in the practice
of a technical specialty which he has devoted years in acquiring, and if that
sterilization will spread to the rm which he becomes associated, the sacri ce of
entering government service will be too great for most men to make. 6 3
Addressing this argument in General Motors, the same US court, through Justice
Irving F. Kaufman, also the ponente of the Esso Export Case, distinguished the two cases.
It noted that the said court denied the motion to disqualify the former government lawyer
i n Esso Export Case because the lawyer therein "never investigated or passed upon the
subject matter of the pending case . . . never rendered or had any speci c duty to render
any legal advice in relation to the regulations involved in the litigation." 6 4 Hence, the
accommodation between maintaining high ethical standards for former Government
employees, on the one hand, and encouraging entry into Government service, on the other,
was struck under far different circumstances of the Esso Export Case.
I n General Motors, the admonition voiced by Justice Kaufman in his article The
Former Government Attorney and the Canons of Professional Ethics 6 5 was considered
more to the point:
If there was a likelihood that information pertaining to the pending matter
reached the attorney, although he did not "investigate" or "pass upon" it, . . ., there
would undoubtedly be an appearance of evil if he were not disqualified. 6 6
Thus, it was concluded that the Esso Export Case unquestionably presented a case
for the cautious application of the "appearance-of-evil doctrine" because the former
Government lawyer's connection with the matter at issue was the tenuous one of mere
employment in the same Government agency.
In contrast, in General Motors, Reycraft, not only participated in the investigatory and
preparatory stages, but also signedthe complaint in the action. Thus, according to the US
court, where the overlap of issues is so plain, and the involvement while in Government
employ so direct, the resulting appearance of impropriety must be avoided through
disqualification.
From the foregoing disquisition, it can be gleaned that disquali cation cases
involving former government lawyers will have to be resolved on the basis of peculiar
circumstances attending each case. A balance between the two seemingly con icting
policy considerations of maintaining high ethical standards for former Government
employees, on the one hand, and encouraging entry into Government service, on the other,
must be struck based on, inter alia, the relationship between the former and the
succeeding representations of the former government lawyer. Likewise, as already
discussed, the degree of his involvement in the matter while in Government employ is a
crucial element in determining if his present representation is within the purview of Rule
6.03.
In this case, not unlike in General Motors, the involvement of Atty. Mendoza in the
liquidation of GENBANK while he was the Solicitor General is so direct that the appearance
of impropriety must be avoided through disqualification.
Conclusion
Let me just clarify that the record is free from any intimation that Atty. Mendoza was
improperly in uenced while in government service or that he is guilty of any impropriety in
agreeing to represent respondents Tan, et al. However, I am constrained to vote for his
disquali cation in Civil Case No. 0096 in order to avoid any appearance of impropriety lest
it taint both the public and private segments of the legal profession.
ACCORDINGLY, I vote to PARTIALLY GRANT the petition. The Motion to Disqualify
Atty. Estelito P. Mendoza is GRANTED insofar as Civil Case No. 0096 is concerned. ISTDAH

TINGA , J.:
My vote to grant the petition hinges on the reasons stated hereunder. They pertain
to a significant and material dimension to this case which deserves greater illumination.
To sustain the view that Atty. Estelito Mendoza (Atty. Mendoza) should be
disquali ed as counsel in Civil Case No. 0096, as the dissenters are wont to hold, there
should be a clear legal basis that would mandate such disquali cation. The dissenters
would hold Atty. Mendoza liable for violating Section 6.03 of the Code of Professional
Responsibility, while the ponencia disputes the assertion that the provision was indeed
transgressed. I maintain that Section 6.03 cannot be made applicable in the present case
to Atty. Mendoza, as to do so would be violative of his right to due process.
I have qualms in holding any member of the Bar liable for violating Section 6.03 of
the Code of Professional Responsibility, in connection with acts that they may have
engaged in as government o cials before the enactment of the said Code. In this case, at
the time Atty. Mendoza entered the government service he had no idea of the kind of
inhibition proposed to be foisted on him currently. Indeed, he is being faulted for
representing the respondents in Civil Case No. 0096 notwithstanding the fact that as
Solicitor General and in the discharge of his o cial functions, he had advised the Central
Bank on the procedure to bring about the liquidation of General Bank and Trust Company,
which was subsequently acquired by the respondents. However, whether it be at the time
then Solicitor General Mendoza participated in the process of the dissolution of General
Bank in 1977, or at sometime in 1987 when he agreed to represent the respondents, the
Code of Professional Responsibility had not yet been promulgated. aDcEIH
The Code of Professional Responsibility was promulgated by the Supreme Court on

21 June 1988. 1 Prior to its o cial adoption, there was no similar o cial body of rules or
guidelines enacted by the Supreme Court other than the provisions on Legal Ethics in the
Rules of Court.
I fear it would set a dangerous precedent to hinge Atty. Mendoza's culpability on the
Code of Professional Responsibility, as it would effectively imply that the Code of
Professional Responsibility has application even as to acts performed prior to its
enactment. Our laws frown upon the prospectivity of statutes. Article 4 of the Civil Code
declares that "Laws shall have no retroactive effect, unless the contrary is provided." There
is no declaration in the Code of Professional Responsibility that gives retroactive effect to
its canons and rules. It is settled that the presumption is that all laws operate
prospectively absent clear contrary language in the text, 2 and that in every case of doubt,
the doubt will be resolved against the retroactive operation of laws. 3
The Court in Co v. Court of Appeals provided an exhaustive disquisition on the scope
of the rule on the prospective application of statutes:
The principle of prospectivity of statutes, original or amendatory, has been
applied in many cases. These include: Buyco v. PNB , 961) 2 SCRA 682 (June 30,
1961), holding that Republic Act No. 1576 which divested the Philippine National
Bank of authority to accept back pay certi cates in payment of loans, does not
apply to an offer of payment made before effectivity of the act; Largado v.
Masaganda, et al., 5 SCRA 522 (June 30, 1962), ruling that RA 2613, as amended
by RA 3090 on June, 1961, granting to inferior courts jurisdiction over
guardianship cases, could not be given retroactive effect, in the absence of a
saving clause; Larga v. Ranada, Jr ., 64 SCRA 18, to the effect that Sections 9 and
10 of Executive Order No. 90, amending Section 4 of PD 1752, could have no
retroactive application; People v. Que Po Lay , 94 Phil. 640, holding that a person
cannot be convicted of violating Circular No. 20 of the Central Bank, when the
alleged violation occurred before publication of the Circular in the Official Gazette;
Baltazar v. C.A. , 104 SCRA 619, denying retroactive application to P.D. No. 27
decreeing the emancipation of tenants from the bondage of the soil, and P.D. No.
316 prohibiting ejectment of tenants from rice and corn farmholdings, pending
the promulgation of rules and regulations implementing P.D. No. 27; Nilo v. Court
of Appeals, 128 SCRA 519, adjudging that RA 6389 which removed "personal
cultivation" as a ground for the ejectment of a tenant cannot be given retroactive
effect in the absence of a statutory statement for retroactivity; Tac-An v. CA , 129
SCRA 319, ruling that the repeal of the old Administrative Code by RA 4252 could
not be accorded retroactive effect; Ballardo v. Borromeo , 161 SCRA 500, holding
that RA 6389 should have only prospective application; (See also Bonifacio v.
Dizon, 177 SCRA 294 and Balatbat v. CA, 205 SCRA 419). ScAIaT
The prospectivity principle has also been made to apply to administrative

rulings and circulars, to wit: ABS-CBN Broadcasting Corporation v. CTA , Oct. 12,
1981, 108 SCRA 142, holding that a circular or ruling of the Commissioner of
Internal Revenue may not be given retroactive effect adversely to a taxpayer;
Sanchez v. COMELEC , 193 SCRA 317, ruling that Resolution No. 90-0590 of the
Commission on Elections, which directed the holding of recall proceedings, had
no retroactive application; Romualdez v. CSC , 197 SCRA 168, where it was ruled
that CSC Memorandum Circular No. 29, s. 1989 cannot be given retrospective
effect so as to entitle to permanent appointment an employee whose temporary
appointment had expired before the Circular was issued.
The principle of prospectivity has also been applied to judicial decisions

which, "although in themselves not laws, are nevertheless evidence of what the
laws mean, . . . (this being) the reason why under Article 8 of the New Civil Code,
'Judicial decisions applying or interpreting the laws or the Constitution shall form
a part of the legal system . . .'" 4
I believe that there is a greater demand to ward off the retroactive application of the
Code of Professional Responsibility for the Code is the source of penal liabilities against
its infringers. It is well entrenched that generally, penal laws or those laws which de ne
offenses and prescribe penalties for their violation operate prospectively. 5 The
Constitution itself bars the enactment of ex-post facto laws. 6 I do not think it necessary to
irt with the constitutional issue whether the Code of Professional Responsibility operates
as a penal statute within the de nition of an ex-post facto law, but I am satis ed with the
general rules, a rmed by jurisprudence, that abhor the retroactivity of statutes and
regulations such as the Code of Professional Responsibility.
Hence, to impute culpability on the part of Atty. Mendoza, it would be necessary to

ascertain whether his accession to represent the respondents violated any binding law or
regulation at the time of the engagement. It is but proper to frame the question in such
manner, for only then could it be ascertained whether Atty. Mendoza knew or should have
known that his professional representation of the respondents was illegal. It would also be
unfair to ascribe liability to any lawyer whom, at the time he/she was in government
service, was not guided by any de nitive rule prescribing the possible subsequent
restrictions on the lawyer's professional activity as a consequence of the exercise of
public office.
Ostensibly, Atty. Mendoza's actions violated Canon 36 of the Canons of
Professional Ethics, which some authorities deemed as a source of legal ethics prior to
the Code of Professional Responsibility. 7 Canon 36 states:
36. Retirement from judicial position or public employment

upon the merits of which he has previously acted in a judicial capacity.
DcHSEa

employ should not, after his retirement, accept employment in connection with
any matter he has investigated or passed upon while in such office or employ.
Canon 36 would apparently cover the allegations imputed to Atty. Mendoza.

However, a thorough review should rst be examined on whether Canon 36 of the Canons
of Professional Ethics may be used as legal basis in resolving this case.
The Canons of Professional Ethics originated from the American Bar Association. 8
They were adopted by the Philippine Bar Association as its own in 1917 and in 1946. 9
There is no denying the high regard enjoyed by the Philippine Bar Association in the legal
community in its nearly one hundred years of existence. However, there is also no denying
that the Philippine Bar Association, a civic non-pro t association, 1 0 is a private entity of
limited membership within the Philippine bar. The rules or canons it has adopted are per se
binding only on its members, and the penalties for violation of the same could affect only
the status or rights of the infringers as members of the association.
At the same time, reference has been had by this Court to the Canons of
Professional Ethics in deciding administrative cases against lawyers, especially prior to
the adoption of the Code of Professional Ethics. Hence, the belief by some commentators
that the said Canons may serve as a source of legal ethics in this country. However, I think
it would be grave error to declare that the Canons of Professional Ethics, on their own,
serves as an indisputable source of obligations and basis of penalties imposable upon
members of the Philippine legal profession. This would violate the long-established
constitutional principle that it is the Supreme Court which is tasked with the promulgation
of rules governing the admission to the practice of law, as well as the pleading, practice
and procedure in all courts. 1 1 The task of formulating ethical rules governing the practice
of law in the Philippines could not have been delegated to the Philippine Bar Association
by the Supreme Court. Neither could such rules as adopted by the private body be binding
on the Supreme Court or the members of the bar.
If provisions of the Canons of Professional Ethics of the Philippine Bar Association
have jurisprudentially been enforced, or acknowledged as basis for legal liability by the
Supreme Court, they may be recognized as a binding standard imposable upon members
of the bar, but not because said Canons or the Philippine Bar Association itself said so, but
because the Supreme Court said so. This is keeping in line with the entrenched rule, as
evinced by Article 8 of the Civil Code, which states that "judicial decisions applying or
interpreting the laws or the Constitution shall form a part of the legal system." HcTIDC
Thus, I would be willing to consider Canon 36 as binding on Atty. Mendoza when he

deigned to represent the respondents if at such time, this Court had expressly
acknowledged Canon 36 as a rule or standard which deserves obeisance by members of
the bar. After all, it would only be through such process of judicial recognition that these
guidelines adopted by a private entity could be considered as a normative rule compulsory
on all practitioners. Unfortunately, no such case exists in Philippine jurisprudence.
It might be possible to concede that this principle embodied under Canon 36 or
even as stated in American case law, subsisted within that penumbra of ethical standards
from which the Court could have derived a jurisprudential rule had one been called for by a
particular case. However, it remains that none such was pronounced by this Court in
jurisprudence, and indeed the prohibition under Canon 36 was not prescribed by this Court
or by statute as a norm until the enactment of the Code of Professional Responsibility in
21 June 1988. Accordingly, when Atty. Mendoza agreed to represent the respondents,
there was no de nitive binding rule proscribing him from such engagement or penalizing
him for such representation.
I am mindful that what the Court is called upon to decide is whether the
Sandiganbayan committed grave abuse of discretion, and not just mere error in fact or law,
in denying the motion to disqualify Atty. Mendoza. The absence of a de nitive
disquali catory rule that would have guided Atty. Mendoza when he undertook the
questioned acts sufficiently justifies the Sandiganbayan's denial of the motion.
We should not render insensate the concerns raised by the minority, arising as they
do from an understandable concern that the line dividing the professional activities and the
government services rendered by lawyers should remain distinct. Yet the majority likewise
demonstrates that there is no unanimity on prevalent legal thought on the matter, and a
healthy debate on the issue will result in no harm. Still, the due process dimension, as
highlighted by the absence of a de nitive rule for which Atty. Mendoza could have been
held accountable, proves determinative to my mind. The Court is the enforcer of the
constitutional guarantees of due process to all persons, and my vote is but a consequence
of this primordial duty. ISEHTa
Footnotes
1. Rollo, p. 240; Filcapital Development Corporation was a related interest of the Yujuico Family
Group and the directors and officers of GENBANK.
2. Rollo, pp. 240, 242.
3. Rollo, p. 7.
4. Rollo, pp. 7, 108, 248.
5. Rollo, pp. 110-114, 248.
6. Rollo, pp. 217-218.

7. Rollo, p. 143.
8. Rollo, pp. 216-220.
9. Rollo, pp. 44, 221-225.
10. Atty. Mendoza served as Solicitor General from 1972 to 1986.
11. Rollo, p. 63.
12. Rollo, p. 61.
13. Rollo, pp. 57-63.
14. Rollo, p. 178.

15. Rollo, pp. 42, 44; The "Motion to disqualify Atty. Estelito P. Mendoza as counsel for
petitioners" in Civil Case Nos. 0096-0099 was led with the Sandiganbayan's Second
Division. However, the motion was ultimately resolved by the Sandiganbayan's Fifth
Division in its proceedings held on July 11, 2001.
16. Rollo, p. 42.
17. Rollo, p. 43.
18. Rollo, pp. 2-40.
19. Rollo, pp. 12-14.
20. Andrews, Standards of Conduct for Lawyers: An 800-Year Revolution, 57 SMU L. Rev. 1385
(2004).
21. Ibid.
22. Ibid.
23. Ibid.
24. Agpalo, Legal and Judicial Ethics, pp. 24-25 (2002); In re Tagorda, 53 Phil. 37 (1927).
25. Wolfram, Modern Legal Ethics, p. 456 (1986).
26. Id. at 457.
27. Ibid.; The use of the word "con ict" is a misnomer; "congruent-interest representation
con icts" arguably do not involve con icts at all, as it prohibits lawyers from
representing a private practice client even if the interests of the former government client
and the new client are entirely parallel.
28. Supra, note 20.
29. ABA Canons of Professional Ethics, Canon 36 (1908); ABA Model Code of Professional
Responsibility (1963), DR 9-101(b); ABA Model Rules of Professional Responsibility, MR
1.11(a) and (b) (1983).
30. Supra, note 25 at 458.
31. Supra, note 20.
32. Agpalo, Legal and Judicial Ethics, p. 25 (2002).

33. Canon 9 was adopted to replace Canon 36 because Canon 36 "proved to be too broadly
encompassing." ABA Opinion No. 342 (1975); Canon 9 states: "A lawyer should avoid
even the appearance of professional impropriety."
34. Model Code of Professional Responsibility, Preliminary Statement (1983); "The Disciplinary
Rules . . . are mandatory in character. The Disciplinary Rules state the minimum level of
conduct below which no lawyer can fall without being subject to disciplinary action."
35. DR 9-101(b): A lawyer shall not accept private employment in a matter in which he had
substantial responsibility while he was a public employee.
36. Supra, note 20.
37. Ibid.
38. Model Rules of Professional Conduct, Rule 1.09 comment (1984): "The other rubric formerly
used for dealing with disquali cation is the appearance of impropriety proscribed in
Canon 9 of the ABA Model Code of Professional Responsibility. This rubric has a two-
fold problem. First, the appearance of impropriety can be taken to include any new client-
lawyer relationship that might make a former client feel anxious. If that meaning were
adopted, disquali cation would become little more than a question of subjective
judgment by the former client. Second, since 'impropriety' is unde ned, the term
appearance of impropriety is question-begging. It therefore has to be recognized that the
problem of disquali cation cannot be properly resolved . . . by the very general concept
of appearance of impropriety."
39. Supra, note 32.
40. See Dissent of J. Callejo, Sr., pp. 19-20.
41. Webster's Third New International Dictionary of the English Language Unabridged, p. 1183
(1993).
42. Id.
43. Id.; This may be inferred from the second de nition of "intervene" which is "to occur, fall, or
come in between points of time or events."
44. Id.; This may be inferred from the third de nition of "intervene" which is "to come in or
between by way of hindrance or modi cation," and the second de nition of
"intervention" which is "interference that may affect the interests of others."
46. Kaufman, The Former Government Attorney and Canons of Professional Ethics, 70 Harv. L.
Rev. 657 (1957).
47. Remarks of Federal Trade Commission Chairman Calvin Collier before Council on Younger
Lawyers, 1976 Annual Convention of the Federal Bar Association (September 16, 1976).
48. Koller v. Richardson-Merrell, Inc ., 737 F.2d 1038, 1051 (D.C. Cir. 1984); Board of Education
of New York City v. Nyquist , 590 F.2d 1241, 1246 (2d Cir. 1979); Williamsburg Wax
Museum v. Historic Figures, Inc., 501 F.Supp. 326, 331 (D.D.C. 1980).
49. Richardson-Merrell, Inc. v. Koller, 472 U.S. 424, 436 (1985).
50. Rollo, p. 143; The petitions for certiorari, prohibition and injunction were led sometime in
August 1986. The motion for disquali cation in Civil Case No. 0096-0099 was led on
February 5, 1991.
51. United States v. Brothers, 856 F. Supp. 370, 375 (M.D. Tenn. 1992).
52. First Wis. Mortgage Trust v. First Wis. Corp., 584 F.2d 201 (7th Cir. 1978); EZ Painter Corp. v.
Padco, Inc., 746 F.2d 1459, 1463 (Fed. Cir. 1984); Realco Serv. v. Holt , 479 F. Supp. 867,
880 (E.D. Pa. 1979).
53. Morgan, Appropriate Limits on Participation by a former Agency O cial in Matters Before
an Agency, Duke L.J., Vol. 1980, February, No. 1, p. 54.
54. Ibid.
55. Agpalo, Legal and Judicial Ethics, pp. 292-293; Hilado v. David, 84 Phil. 569 (1949).

57. Id. at p. 321.
58. Kaufman, The Former Government Attorney and Canons of Professional Ethics, 70 Harv. L.
Rev. 657 (1957).
59. Supra, note 38.
60. United States v. O'Malley , 786 F.2d 786, 789 (7th Cir. 1985); United States v. James , 708
F.2d 40, 44 (2d Cir. 1983).
61. Supra, note 53 at 44.
62. Ibid.
63. Ibid., see footnote 207 of article.
64. Ibid.
65. Id. at 45.
66. Id. at 42.
67. Id. at 42-43.
68. Id. at 43.
PANGANIBAN, J.:
1. "Rule 6.03 — A lawyer shall not, after leaving government service, accept engagement or
employment in connection with any matter in which he had intervened while in said
service."
2. Sta. Lucia Realty and Development v. Cabrigas, 358 SCRA 715, June 19, 2001.
3. Ibid.
4. Nabus v. Court of Appeals, 193 SCRA 732, February 7, 1991 (reiterated in Calalang v. Register
of Deeds, 231 SCRA 88, March 11, 1994; and in Intestate Estate of San Pedro v. Court of
Appeals, 265 SCRA 733, December 18, 1996).
5. Camara v. Court of Appeals, 310 SCRA 608, July 20, 1999.
6. Miranda v. Court of Appeals, 141 SCRA 302, February 11, 1986; Vda. De Sta. Romana v.
Philippine Commercial and Industrial Bank, 118 SCRA 330, November 15, 1982.
7. Rollo, pp. 216-220.
8. Penned by Justice Romeo M. Escareal (chairman) and concurred in by Justices Jose S.

Balajadia and Nathanael M. Grospe (members); rollo, pp. 57-63.
9. Resolution dated July 24, 1991; rollo, pp. 233-237.
10. Rollo, pp. 221-225.
11. Resolution dated July 11, 2001 of the Sandiganbayan (Fifth Division), referring to the
Record of Civil Case No. 0096, Vol. I, pp. 134-135; rollo, p. 42. This unsigned Resolution
was unanimously approved by Justices Minita V. Chico-Nazario (Division chairperson,
now a member of this Court), Rodolfo G. Palattao and Ma. Cristina Cortez-Estrada
(members).
12. Santo Tomas University Hospital v. Surla, 355 Phil. 804, August 17, 1998 (citing
Investments, Inc. v. Court of Appeals, 147 SCRA 334, January 27, 1987; and Denso
[Phils.], Inc. v. Intermediate Appellate Court, 148 SCRA 280, February 27, 1987). In this
case, the Court held:
"The order of the trial court dismissing petitioner's counterclaim was a nal order since the
dismissal, although based on a technicality, would require nothing else to be done by the
court with respect to that speci c subject except only to await the possible ling during
the reglementary period of a motion for reconsideration or the taking of an appeal
therefrom."
The Court further said that errors of judgment, as well as procedure, that do not relate to the
jurisdiction of the court or involve grave abuse of discretion are reviewable by timely
appeal, not by a special civil action for certiorari, unless for valid and compelling
reasons.
13. Tambaoan v. Court of Appeals, 417 Phil. 683, September 17, 2001 (citing Republic v.
Tacloban City Ice Plant, 258 SCRA 145, July 5, 1996; and Dela Cruz v. Paras, 69 SCRA
556, February 27, 1976).
14. Santo Tomas University Hospital v. Surla, supra (citing Bairan v. Tan Siu Lay, 18 SCRA
1235, December 28, 1966).
15. Supra, p. 155.

16. Pascual v. Court of Appeals, 300 SCRA 214, December 16, 1998; Navarro v. NLRC, 327
SCRA 22, March 1, 2000; Testate Estate of Manuel v. Biascarr, 347 SCRA 621, December
11, 2000; People v. Alay-ay, 363 SCRA 603, August 23, 2001; Vda. de Sta. Romana v.
Philippine Commercial & Industrial Bank, supra.
17. Manila Electric Co. v. Arciaga, 50 Phil. 144, March 18, 1927 (citing Reilly v. Perkins, 56 Pac
734).
18. 246 SCRA 540, 561, July 17, 1995, per Mendoza, J.
19. Voting here was close (5 justices fully concurred in the ponencia, 2 wrote separate
concurring opinions, while 5 dissented.)
20. Nabus v. Court of Appeals, supra.
21. Rollo, pp. 391-471.
22. GR Nos. 112708-09, 255 SCRA 438, March 29, 1996.
23. Spouses Morales v. Court of Appeals, 285 SCRA 337, January 28, 1998; Cabellan v. Court of
Appeals, 304 SCRA 119, March 3, 1999; Republic v. Court of Appeals, 322 SCRA 81,
January 18, 2000.
24. See Arts. 1140-1149, Civil Code.
25. Tolentino v. Court of Appeals, 162 SCRA 66, June 10, 1988.
26. Arts. 90 & 92 of the Revised Penal Code provide as follows:
"Art. 90. Prescription of crime. — Crimes punishable by death, reclusion perpetua o r reclusion
temporal shall prescribe in twenty years.
Crimes punishable by other afflictive penalties shall prescribe in fifteen years.

Those punishable by a correctional penalty shall prescribe in ten years; with the exception of
those punishable by arresto mayor, which shall prescribe in five years.
The crime of libel or other similar offenses shall prescribe in one year.
The crime of oral defamation and slander by deed shall prescribe in six months.
Light offenses prescribe in two months."
"Art. 92. When and how penalties prescribe. — The penalties imposed by nal sentence
prescribe as follows:
1. Death and reclusion perpetua, in twenty years;
2. Other afflictive penalties, in fifteen years;
3. Correctional penalties, in ten years; with the exception of the penalty of arresto mayor, which
prescribes in five years;
4. Light penalties, in one year."
See also Act No. 3326, as amended.

27. "Art. 70 [Revised Penal Code]. . . .
"Notwithstanding the provisions of the rule next preceding, the maximum duration of the
convict's sentence shall not be more than three-fold the length of time corresponding to
the most severe of the penalties imposed upon him. No other penalty to which he may
be liable shall be in icted after the sum total of those imposed equals the same
maximum period.
"Such maximum period shall in no case exceed forty years.
"In applying the provisions of this rule the duration of perpetual penalties (pena perpetua)
shall be computed at thirty years."
28. "Sec. 7. Prohibited Acts and Transactions. . . .
"These prohibitions shall continue to apply for a period of one (1) year after resignation,
retirement, or separation from public o ce, except in the case of subparagraph (b); (2)
above, but the professional concerned cannot practice his profession in connection with
any matter before the o ce he used to be with, in which case the one-year prohibition
shall likewise apply."
29. Ochagabia v. Court of Appeals, 364 Phil. 233, March 11, 1999; Peñales v. IAC, 229 Phil. 245,
October 27, 1986.
30. Order of R. Telegraphers v. Railway Express Agency, Inc., 321 US 342 (1944); Alcorn v. City
of Baton Rouge, 2004 WL 3016015, December 30, 2004.
31. Memorandum for Respondents, pp. 9-10; rollo, pp. 399-400.
32. Modesty aside, in my nearly ten (10) years in this Court, I have disposed of about a
thousand cases in full-length ponencias and countless cases by way of unsigned minute
or extended Resolutions. This does not include the thousands of other cases, assigned
to other members of the Court, in which I actively took part during their deliberations. In
all honesty, I must admit that I cannot with certainty recall the details of the facts and
issues in each of these cases, especially in the earlier ones.
33. JMM Promotion and Management, Inc. v. Court of Appeals, 329 Phil. 87, August 5, 1996.
34. Bullock v. Carver, 910 F. Supp 551, 1995.
35. Art. 1149, Civil Code.
36. Rule 15.03, Code of Professional Responsibility:
"A lawyer shall not represent con icting interests except by written consent of all concerned
given after a full disclosure of the facts."
37. "Sec. 5. Judges shall disqualify themselves from participating in any proceedings in which
they are unable to decide the matter impartially or in which it may appear to a
reasonable observer that they are unable to decide the matter impartially. Such
proceedings include, but are not limited to, instances where
xxx xxx xxx
(b) The judge previously served as lawyer or was a material witness in the matter in
controversy;
xxx xxx xxx
(d) The judge served as executor, administrator, guardian, trustee or lawyer in the case or
matter in controversy, or a former associate of the judge served as counsel during their
association, or the judge or lawyer was a material witness therein;
xxx xxx xxx"
[Rule 3.12 of Canon 3 of the old Code of Judicial Conduct.]
38. AM No. 03-05-01-SC, promulgated on April 27, 2004 and effective June 1, 2004.
39. In re Sofaer, 728 A2d 625, April 22, 1999.
40. Brown v. District of Columbia Board of Zoning Adjustment, 486 A2d 37, December 21, 1984.
41. Ibid. (citing Developments in the Law: Con icts of Interest, 94 Harv.L.Rev. 1244, 1428-30
[1981]).
42. Ibid.
43. Legarda v. Savellano, 158 SCRA 194, February 26, 1988, per Yap, J. (later CJ).
SANDOVAL-GUTIERREZ, J.:
1. Gregori v. Bank of America, 207 Cal. App. 3d 291 (1989); McPhearson v. Michaels Co., No.
CO34390, March 4, 2002.
2. Executive order No. 1, issued on February 28, 1986.
3. Resolution, at 3-4. See also Memorandum for Respondents, rollo, at 397-398.
4. Attachment "F" of the Petition, rollo, at 57-63. Civil Case No. 0005 involved the PCGG's and
the OSG's complaint for " reversion, reconveyance, restitution, accounting and damages"
against Tan et al.'s shares of stock in Allied Bank.
5. Comment on the Petition, rollo, at 148. Civil Case No. 0100 involved Allied Bank's petition
seeking to nullify PCGG's Search and Seizure Order against Tan, et al.'s shares of stock.
6. Entitled Republic of the Philippines, represented by Presidential Commission on Good

Government, petitioner, vs. Sandiganbayan, Sipalay Trading Corporation and Allied
Banking Corporation, respondents. 255 SCRA 438, March 29, 1996.
7. Attachment "A" of the Petition, rollo, at 42.
8. Attachment "A-1" of the Petition, rollo, at 43.
9. 7 Am Jur 2d §197 citing Higdon v. Superior Court (5th Dist) 227 Cal App 3d 1667, 278 Cal
Rptr 588, 91 CDOS 1622, 91 Daily Journal DAR 2595.
10. Mejia v. Alimorong, 4 Phil. 573, 1905, Insular Government v. Bishop of Nueva Segovia, 17
Phil. 487, (1910); People v. Makaraig, 54 Phil. 904, 1930.
11. Tambaoan v. Court of Appeals, 365 SCRA 359 (2001); Halili v. Court of Industrial Relations,
22 SCRA 785 (1968).
12. 111 Phil. 699 (1961).

13. 69 SCRA 556, G.R. No. L-41053. February 27, 1976.
14. 191 SCRA 610, G.R. No. 79119. November 22, 1990.
15. Entitled Republic of the Philippines, represented by Presidential Commission on Good

Government, vs. Sandiganbayan, Sipalay Trading Corporation and Allied Banking
Corporation, 255 SCRA 438, March 29, 1996.
16. 46 Am Jur 2d § 516.
17. 46 Am Jur 2d § 515.
18. Second Edition, New Twentieth Century Dictionary, Unabridged, 183.

19. ABA Formal Opinion 342 November 24, 1975.
20. 103 F.R.D. 22; 1984 U.S. Dist. LEXIS 15513, June 26, 1984.
CARPIO MORALES, J. :
1. 246 SCRA 540 (1995).
2. 232 SCRA 110 (1994).
3. The doctrine of "conclusiveness of judgment" is also called "collateral estoppel" or

"preclusion of issues," as distinguished from "preclusion of claims" or res judicata. In the
Rules of Court, the rst (conclusiveness of judgment, collateral estoppel or preclusion of
issues) is governed by Rule 39, §49 (c) while the second (res judicata or preclusion of
claims) is found in Rule 39, §49 (b).
4. 255 SCRA 438 (1996).
5. Id. at 448-449.
6. BLACK'S LAW DICTIONARY 815 [1991], 6th ed.
7. II O. HERRERA, REMEDIAL LAW 528 (2000).
8. I F. REGALADO, REMEDIAL LAW COMPENDIUM 492 (1997), 6th ed.
9. 2 J. FERIA & M. NOCHE, CIVIL PROCEDURE ANNOTATED 152 (2000).
10. 365 SCRA 359 (2001).

11. 449 U.S. 368 (1981).
12. 337 U.S. 541 (1949).
13. 449 U.S. 368, 373-380 (1981).
14. 465 U.S. 259 (1984).
15. 472 U.S. 424 (1985).
16. R. AGPALO, COMMENTS ON THE CODE OF PROFESSIONAL RESPONSIBILITY AND THE

CODE OF JUDICIAL CONDUCT 3-5 (2004).
17. Id. at 165.
18. 286 SCRA 758 (1998).
19. Id. at 773.
20. 260 SCRA 319 (1996)
CALLEJO, SR., J.:
1. General Motors Corp. v. City of New York, 501 F.2d 639 (1974).
2. Foreword of Chief Justice Manuel V. Moran in Malcolm, Legal and Judicial Ethics.
3. Abragan v. Rodriguez, 380 SCRA 93 (2001).
4. EO No. 1, promulgated on February 29, 1986, created the PCGG which was primarily tasked
to recover all ill-gotten wealth of former President Ferdinand E. Marcos, his immediate
family, relatives, subordinates and close associates.
5. Mariano Tan Eng Lian in some pleadings.
6. Memorandum of the PCGG, pp. 7-9.
7. The case is now pending with this Court docketed as G.R. No. 152551.
8. Rollo, p. 42.
9. Id. at 43.
10. Penned by Associate Justice Romeo M. Escareal (retired), with Associate Justices Jose S.
Balajadia and Nathanael M. Grospe, concurring; Id. at 57.
11. Rollo, p. 61.

12. Id. at 61-62.
13. People v. Sandiganbayan, 408 SCRA 672 (2003).
14. Tambaoan v. Court of Appeals , 365 SCRA 359 (2001); Halili v. Court of Industrial Relations ,
22 SCRA 785 (1968) citing BOUVIER'S LAW DICTIONARY, 3rd Revision, Vol. I, p. 1651.
15. Ibid.
16. 396 SCRA 443 (2003).
17. 340 SCRA 289 (2000).
18. Sta. Lucia Realty and Development, Inc. v. Cabrigas, 358 SCRA 715 (2000).
19. FERIA, II CIVIL PROCEDURE ANNOTATED, 2001 ed., p. 123.
20. 344 SCRA 838 (2000).
21. Ibid.
22. Id.
23. Id.
24. Id.
25. Sta. Lucia Realty and Development, Inc. v. Cabrigas, supra.
26. Macahilig v. Heirs of Grace M. Magalit, supra.

27. Id.
28. The ABA rst adopted the Canons of Professional Ethics on August 27, 1908. Canons 1 to
32 thereof were adopted by the Philippine Bar Association (PBA) in 1917. In 1946, the
PBA again adopted as its own Canons 33 to 47 of the ABA's Canons of Professional
Ethics. The ABA's Canons of Professional Ethics were superseded by the Code of
Professional Responsibility on January 1, 1970. In 1980, the Integrated Bar of the
Philippines (IBP) adopted a proposed Code of Professional Responsibility, which it later
submitted to the Supreme Court for approval. On June 21, 1988, the Supreme Court
promulgated the present Code of Professional Responsibility. (AGPALO, infra.)
29. AGPALO, COMMENTS ON THE CODE OF PROFESSIONAL RESPONSIBILITY AND JUDICIAL

CONDUCT, 2001 ed., p. 52.
30. WOLFRAM, MODERN LEGAL ETHICS (1986), p. 456.
31. Ibid.
32. This prohibition is restated in Rule 15.03 of our Code of Professional Responsibility, thus:
A lawyer shall not represent con icting interests except by written consent of all concerned
given after a full disclosure of the facts.
33. WOLFRAM, supra.
34. AGPALO, supra.
35. WOLFRAM, supra.
36. MEMORANDUM for Respondents Tan, et al., p. 56; Rollo, p. 446.
37. According to the ABA Formal Opinion No. 342, these acts do not fall within the scope of the
term "matter" and do not disqualify a lawyer under DR 9-101(B) from subsequent private
employment involving the same regulations, procedures or points of law. WOLFRAM,
supra.
38. I n United States v. Tra cante (328 F.2d 117 [1964]), the United States Court of Appeals
(Fifth Circuit) held that, under Canon 36, the attorney who was formerly employed in the
o ce of the Regional Counsel of the Internal Revenue Service and who handled the tax
claims against Tra cante which resulted in stipulated settlement in the tax court was
disquali ed from representing the latter in subsequent suits for foreclosure of liens for
balance due on those income taxes and for other federal taxes. The court therein
rejected the lawyer's claim that disquali cation should be ordered only if precisely the
same issues were involved in each representation.
39. AGPALO, supra.
40. Then Senior Deputy Governor Amado R. Brinas, then Deputy Governor Jaime C. Laya, then
Deputy Governor and General Counsel Gabriel C. Singson, then Special Assistant to the
Governor Carlota P. Valenzuela, then Assistant to the Governor Arnulfo B. Aurellano and
then Director of the Department of Commercial and Savings Bank Antonio T. Castro, Jr.
41. Rollo, p. 109.
42. Id. at 113. (Emphasis supplied.)
43 The provision reads in part:
SEC. 29. Proceedings upon insolvency . — Whenever, upon examination by the head of the
appropriate supervising or examining department or his examiners or agents into the
condition of any bank or non-bank nancial intermediary performing quasi-banking
functions, it shall be disclosed that the condition of the same is one of insolvency, or
that its continuance in business would involve probable loss to its depositors or
creditors, it shall be the duty of the department head concerned forthwith, in writing, to
inform the Monetary Board of the facts, and the Board may, upon nding the statements
of the department head to be true, forbid the institution to do business in the Philippines
and shall designate an o cial of the Central Bank or a person of recognized
competence in banking or nance, as receiver to immediately take charge of its assets
and liabilities, as expeditiously as possible collect and gather all the assets and
administer the same for the bene t of its creditors, exercising all the powers necessary
for these purposes including, but not limited to, bringing suits and foreclosing mortgages
in the name of the bank or non-bank nancial intermediary performing quasi-banking
functions.
xxx xxx xxx
If the Monetary Board shall determine and con rm within the said period that the bank or non-
bank nancial intermediary performing quasi-banking functions is insolvent or cannot
resume business with safety to its depositors, creditors and the general public, it shall, if
the public interest requires, orders its liquidation, indicate the manner of its liquidation
and approve a liquidation plan. The Central Bank shall, by the Solicitor General, le a
petition in the Court of First Instance reciting the proceedings which have been taken and
praying the assistance of the court in the liquidation of such institution. The court shall
have jurisdiction in the same proceedings to adjudicate disputed claims against the
bank or non-bank nancial intermediary performing quasi-banking functions and
enforce individual liabilities of the stockholders and do all that is necessary to preserve
the assets of such institution and to implement the liquidation plan approved by the
Monetary Board. The Monetary Board shall designate an o cial of the Central Bank, or
a person of recognized competence in banking or nance, as liquidator who shall take
over the functions of the receiver previously appointed by the Monetary Board under this
Section. The liquidator shall, with all convenient speed, convert the assets of the banking
institution or non-bank nancial intermediary performing quasi-banking functions to
money or sell, assign or otherwise dispose of the same to creditors and other parties for
the purpose of paying the debts of such institution and he may, in the name of the bank
or non-bank nancial intermediary performing quasi-banking functions, institute such
actions as may be necessary in the appropriate court to collect and recover accounts
and assets of such institution.
The provisions of any law to the contrary notwithstanding, the actions of the Monetary Board
under this Section and the second paragraph of Section 34 of this Act shall be nal and
executory, and can be set aside by the court only if there is convincing proof that the
action is plainly arbitrary and made in bad faith. No restraining order or injunction shall
be issued by the court enjoining the Central Bank from implementing its actions under
this Section and the second paragraph of Section 34 of this Act, unless there is
convincing proof that the action of the Monetary Board is plainly arbitrary and made in
bad faith and the petitioner or plaintiff les with the clerk or judge of the court in which
the action is pending a bond executed in favor of the Central Bank, in an amount to be
xed by the court. The restraining order or injunction shall be refused or, if granted, shall
be dissolved upon ling by the Central Bank of a bond, which shall be in the form of
cash or Central Bank cashier(s) check, in an amount twice the amount of the bond of the
petitioner or plaintiff conditioned that it will pay the damages which the petitioner or
plaintiff may suffer by the refusal or the dissolution of the injunction. The provisions of
Rule 58 of the New Rules of Court insofar as they are applicable and not inconsistent
with the provisions of this Section shall govern the issuance and dissolution of the
restraining order or injunction contemplated in this Section.
Insolvency, under this Act, shall be understood to mean the inability of a bank or non-bank
nancial intermediary performing quasi-banking functions to pay its liabilities as they
fall due in the usual and ordinary course of business: Provided, however, That this shall
not include the inability to pay of an otherwise non-insolvent bank or non-bank nancial
intermediary performing quasi-banking functions caused by extraordinary demands
induced by nancial panic commonly evidenced by a run on the bank or non-bank
nancial intermediary performing quasi-banking functions in the banking or nancial
community.
The appointment of a conservator under Section 28-A of this Act or the appointment of a
receiver under this Section shall be vested exclusively with the Monetary Board, the
provision of any law, general or special, to the contrary notwithstanding. (As amended by
PD Nos. 72, 1007, 1771 & PD No. 1827, Jan. 16, 1981)
44. WEBSTER'S THIRD NEW INTERNATIONAL DICTIONARY (1993), p. 1183.
45. Ibid.
46. General Motors Corp. v. City of New York, supra.
47. Kaufman, The Former Government Attorney and the Canons of Professional Ethics, 70
Harv.L.Rev. 657 (1957).
48. See Bañas, Jr. v. Court of Appeals, 325 SCRA 259 (2000).
49. Supra.
50. Id. at 650.
51. Id. at 652.
52. WOLFRAM, supra.
53. Ibid.
54. See note 32.
55. See note 39.

56. 318 F.Supp. 145 (D. Minn. 1970).

58. MALCOLM, LEGAL AND JUDICIAL ETHICS ADAPTED FOR THE REPUBLIC OF THE
PHILIPPINES (1949 ed.), p. 8.
59. Heck v. Santos, 423 SCRA 329 (2004) citing In Re Almacen, 31 SCRA 562 (1970).
60. See note 7.
61. General Motors Corp. v. City of New York, supra at 651.
62. 136 F.Supp. 345 (S.D.N.Y. 1955).
63. Quoted in General Motors Corp. v. City of New York, supra at 651.
64. Id.
65. See note 42.

TINGA, J.:
1. R. Agpalo, The Code of Professional Responsibility for Lawyers (1st ed., 1991), at 369.
2. R. Agpalo, Statutory Construction (5th ed., 2003), at 355; citing Iburan v. Labes , 87 Phil. 234
(1950); People v. Zeta , 98 Phil. 143 (1955); Castro v. Collector of Internal Revenue , G.R.
No. 12174, 28 December 1962, 6 SCRA 886; Commissioner v. Lingayen Gulf Electric
Power Co., Inc., 164 SCRA 27 (1988).
3. Id. , citing Montilla v. Agustina Corp ., 24 Phil. 220 (1913); Cebu Portland Cement Co. v.
Collector of Internal Revenue, G.R. No. 20563, 29 October 1968, 25 SCRA 789 (1968).
4. Co v. Court of Appeals, G.R. No. 100776, October 28, 1993.
5. Agpalo, supra note 2, at 357; citing People v. Moran, 44 Phil. 387 (1923).
6. See Article III, Sec. 22, Constitution.
7. See, e.g., G. Malcolm, Legal and Judicial Ethics (1949), at 9.
8. Agpalo, supra note 1, at 381.
9. Ibid.
10. See Juan F. Nakpil & Sons v. Court of Appeals, 228 Phil. 564, 572 (1986).
11. See Section 5(5), Article VIII, Constitution. See also Section 5(5), Article X, 1973 Constitution
and Section 13, Article VIII, 1935 Constitution.

EN BANC
[A.C. No. 4973. March 15, 2010.]
SPOUSES MANUEL C. RAFOLS, JR. and LOLITA B. RAFOLS ,

complainants, vs . ATTY. RICARDO G. BARRIOS, JR. , respondent.
DECISION
PER CURIAM : p
The primary objective of administrative cases against lawyers is not only

to punish and discipline the erring individual lawyers but also to safeguard the
administration of justice by protecting the courts and the public from the
misconduct of lawyers, and to remove from the legal profession persons whose
utter disregard of their lawyer's oath has proven them un t to continue
discharging the trust reposed in them as members of the bar. A lawyer may be
disbarred or suspended for misconduct, whether in his professional or private
capacity, which shows him to be wanting in moral character, honesty, probity and
good demeanor or unworthy to continue as an officer of the court.
— Rivera v. Corral, A.C. No. 3548, July 4, 2002, 384 SCRA 1.
By its Board Resolution No. 1 dated March 7, 1998, the South Cotabato-
Sarangani-General Santos City (SOCSARGEN) Chapter of the Integrated Bar of the
Philippines (IBP) resolved to refer to the IBP Board of Governors in Manila, for
appropriate action and investigation, the purported anomaly involving Judge Teodoro
Dizon, Jr. and Atty. Ricardo G. Barrios, Jr. 1 Thus, on March 24, 1998, Atty. Joeffrey L.
Montefrio, the SOCSARGEN IBP Chapter President, transmitted the referral to the
Office of the Court Administrator (OCA).
The matter involving Judge Dizon, Jr., which was docketed as Administrative
Matter (AM) No. RTJ-98-1426 entitled Manuel C. Rafols and Lolita C. Rafols v. Judge
Teodoro Dizon, Jr., RTC, General Santos City, Branch 37, 2 was resolved in a per curiam
decision promulgated on January 31, 2006, 3 whereby the Court dismissed Judge
Dizon, Jr. from the service, with forfeiture of all bene ts, except accrued leave credits,
and with prejudice to re-employment in the government or any of its subdivisions,
instrumentalities or agencies, including government-owned and government-controlled
corporations.
In the same per curiam decision, the Court reiterated its resolution of October 21,
1998 for the O ce of the Bar Con dant (OBC) to conduct an investigation of the
actuations of Atty. Barrios, Jr. (respondent), and to render its report and
recommendation. cdphil
Hence, this decision.

Antecedents
The anomaly denounced by the SOCSARGEN IBP Chapter was narrated in the
joint a davit dated March 3, 1998 of Spouses Manuel C. Rafols, Jr. and Lolita B. Rafols
(complainants), 4 whose narrative was corroborated by the a davit dated March 11,
1998 of Larry Sevilla; 5 the a davit dated March 16, 1998 of Allan Rafols; 6 and the
a davit dated March 16, 1998 of Daisy Rafols, 7 all of which were attached to the letter
of the IBP Chapter President. Atty. Erlinda C. Verzosa, then Deputy Clerk of Court and
Bar Con dant, referred for appropriate action a copy of the letter and a davits to then
Court Administrator Alfredo L. Benipayo.
In turn, then Senior Deputy Court Administrator Reynaldo L. Suarez led with the
Court an Administrative Matter for Agenda, recommending in relation to Atty. Barrios,
Jr., as follows:
xxx xxx xxx
5. The O ce of the Bar Con dant be FURNISHED with a copy of the

letter-note and its attachments so that it may conduct its own investigation in the
matter with respect to the actuations of Atty. Ricardo Barrios, Jr. 8
xxx xxx xxx
In the resolution dated October 21, 1998, the Court approved the
recommendations, 9 and directed the O ce of the Bar Con dant to investigate the
actuations of the respondent, and to render its report and recommendation thereon.
Proceedings of the OBC
Only the respondent appeared during the hearing before the OBC. Denying the
charges against him, he sought the dismissal of the complaint and re-a rmed the
contents of his comment. Despite notice, the complainants did not appear before the
OBC. However, the complainants and the respondent had testi ed during the
administrative hearing involving Judge Dizon, Jr. before Court of Appeals Associate
Justice Jose Sabio, Jr. as the Investigating Justice. Also testifying thereat were the
complainants' witnesses, namely: Allan Rafols, Daisy Rafols and Larry Sevilla.
A. Evidence for the Complainants
The complainants were the plaintiffs in Civil Case No. 6209 of the Regional Trial
Court (RTC) in General Santos City, wherein they sought the cancellation of a deed of
sale. Civil Case No. 6209 was assigned to Branch 37 of the RTC, presided by Judge
Dizon, Jr. The complainants were represented by the respondent, paying to him
P15,000.00 as acceptance fee. ADCIca
On December 22, 1997, at 9:30 a.m., the respondent visited the complainants at
their residence and informed complainant Manuel that the judge handling their case
wanted to talk to him. The respondent and Manuel thus went to the East Royal Hotel's
coffee shop where Judge Dizon, Jr. was already waiting. The respondent introduced
Manuel to the judge, who informed Manuel that their case was pending in his sala. The
judge likewise said that he would resolve the case in their favor, assuring their success
up to the Court of Appeals, if they could deliver P150,000.00 to him. As he had no
money at that time, Manuel told the judge that he would try to produce the amount. The
judge then stated that he would wait for the money until noon of that day. Thus, Manuel
left the coffee shop together with the respondent, who instructed Manuel to come up
with the money before noon because the judge badly needed it. The two of them went
to a lending institution, accompanied by Allan Rafols, but Manuel was told there that
only P50,000.00 could be released the next day. From the lending institution, they went
to the complainants' shop to look for Ditas Rafols, Allan's wife, who offered to withdraw
P20,000.00 from her savings account.

On their way to the bank, Manuel, Allan and Ditas dropped off the respondent at
the hotel for the latter to assure Judge Dizon, Jr. that the money was forthcoming.
Afterwards, Ditas and Manuel withdrew P20,000.00 and P30,000.00 from their
respective bank accounts, and went back to the hotel with the cash. There, they saw the
judge and his driver, who beckoned to them to go towards the judge's Nissan pick-up
then parked along the highway in front of the hotel. Manuel alighted from his car and
approached the judge. Manuel personally handed the money to the judge, who told
Manuel after asking about the amount that it was not enough. Thereafter, Manuel
entered the hotel's coffee shop and informed the respondent that he had already
handed the money to the judge.
On December 24, 1997, at about 6:00 a.m., the respondent again visited the
complainants. He was on board the judge's Nissan pick-up driven by the judge's driver.
The respondent relayed to the complainants the message that the judge needed the
balance of P100,000.00 in order to complete the construction of his new house in time
for the reception of his daughter's wedding. However, the complainants managed to
raise only P80,000.00, which they delivered to the respondent on that same day.
On January 20, 1998, Judge Dizon, Jr. called up the complainants' residence and
instructed their son to request his parents to return his call, leaving his cell phone
number. When Manuel returned the call the next day, the judge instructed Manuel to see
him in his o ce. During their meeting in his chambers, the judge demanded the balance
of P30,000.00. Manuel clari ed to the judge that his balance was only P20,000.00 due
to the previous amount given being already P80,000.00. The judge informed him that
the amount that the respondent handed was short. Saying that he badly needed the
money, the judge insisted on P30,000.00, and even suggested that the complainants
should borrow in order to raise that amount.
On January 22, 1998, Judge Dizon, Jr. called the complainants to inquire whether
the P30,000.00 was ready for pick up. After Manuel replied that he was ready with the
amount, the judge asked him to wait for 20 minutes. The judge and his driver later
arrived on board his Nissan pick-up. Upon instructions of the judge's driver, the
complainants followed the Nissan pick-up until somewhere inside the Doña Soledad
Estate, Espina, General Santos City. There, the judge alighted and approached the
complainants and shook their hands. At that point, Manuel handed P30,000.00 to the
judge. The judge then told Manuel that the RTC judge in Iloilo City before whom the
perpetuation of the testimony of Soledad Elevencionado-Provido was made should still
testify as a witness during the trial in his sala in order for the complainants to win. The
judge persuaded the complainants to give money also to that judge; otherwise, they
should not blame him for the outcome of the case. ETCcSa
The complainants were forced to give money to the judge, because they feared
that the judge would be biased against them unless they gave in to his demands. But
when they ultimately sensed that they were being fooled about their case, they
consulted Larry Sevilla, their mediamen friend, and narrated to Sevilla all the facts and
circumstances surrounding the case. They agreed that the details should be released to
the media. The expose was published in the Newsmaker, a local newspaper.
Thereafter, the respondent and Judge Dizon, Jr. made several attempts to
appease the complainants by sending gifts and offering to return a portion of the
money, but the complainants declined the offers.
According to the complainants, the respondent demanded P25,000.00 as his
expenses in securing the testimony of Soledad Elevencionado-Provido in Iloilo City to
be used as evidence in their civil case. In addition, the respondent requested the
complainants to borrow P60,000.00 from the bank because he wanted to redeem his
foreclosed Isuzu Elf, and because he needed to give P11,000.00 to his nephew who
was due to leave for work abroad.
B. Evidence for the Respondent
In his veri ed comment dated March 22, 2006, 1 0 the respondent con rmed that
the complainants engaged him as their counsel in Civil Case No. 6209. His version
follows.
On December 22, 1997, the respondent introduced Manuel to Judge Dizon, Jr.
inside the East Royal Hotel's coffee shop. The respondent stayed at a distance,
because he did not want to hear their conversation. Later, Manuel approached the
respondent and gave him P2,000.00. When the respondent asked what the money was
for, Manuel replied that it was in appreciation of the former's introducing the latter to
the judge. The respondent stated that Manuel did not mention what transpired between
the latter and the judge; and that the judge did not tell him (respondent) what transpired
in that conversation.
Two days later, the respondent again visited the complainants at their house in
General Santos City on board the judge's Nissan pick-up driven by the judge's driver, in
order to receive the P80,000.00 from the complainants. The amount was being
borrowed by the judge for his swimming pool. Later on, the judge told the respondent
to keep P30,000.00 as a token of their friendship. After Manuel handed the P80,000.00,
the respondent and the judge's driver headed towards Davao City, where, according to
the judge's instruction, they redeemed the judge's wristwatch for P15,000.00 from a
pawnshop. The driver brought the remaining amount of P35,000.00 to the judge in his
home.
On January 27, 1998, Judge Dizon, Jr. visited the respondent at the latter's house
to ask him to execute an a davit. Declining the request at rst, the respondent relented
only because the judge became physically weak in his presence and was on the verge
of collapsing. Nonetheless, the respondent refused to notarize the document. IDcHCS
In that a davit dated January 27, 1998, 1 1 the respondent denied that Judge
Dizon, Jr. asked money from the complainants; and stated that he did not see the
complainants handing the money to the judge. He admitted that he was the one who
had requested the judge to personally collect his unpaid attorney's fees from the
complainants with respect to their previous and terminated case; and that the judge did
not ask money from the complainants in exchange for a favorable decision in their
case.
On January 28, 1998, the respondent returned to the complainants' residence,
but was surprised to nd complainant Lolita crying aloud. She informed him that the
judge was again asking an additional P30,000.00 although they had given him
P30,000.00 only the week before. She divulged that the judge had told her that their
case would surely lose because: (a) they had engaged a counsel who was mahinang
klase; (b) the judge hearing Civil Case No. 5645 in Iloilo and the woman who had
testi ed in Civil Case No. 6029 had not been presented; and (c) they would have to
spend at least P10,000.00 for said judge's accommodations in General Santos City. 1 2
On January 31, 1998, Judge Dizon, Jr. went to the house of the respondent, but
the latter was not home. The judge left a note addressed to the complainants, and
instructed the respondent's secretary to deliver the note to the complainants along with
a gift (imported table clock). 1 3 According to the respondent, the complainants
consistently refused to accept the gift several times; it was later stolen from his house
in Cebu City.
On February 1, 1998, the respondent delivered the note and gift to the
complainants, but the latter refused to receive it, telling him that they were no longer
interested to continue with the case. At the same time, the complainants assured him
that they bore no personal grudge against him, because they had a problem only with
Judge Dizon, Jr.
On February 24, 1998, the respondent went to the National Bureau of
Investigation Regional O ce, Region XI, and the Philippine National Police Regional
Office, Region XI, both in Davao City, to request the investigation of the matter. 1 4
On March 2, 1998, the respondent paid Judge Dizon, Jr. a visit upon the latter's
request. In that meeting, the respondent told the judge about the refusal of the
complainants to accept the judge's gift and about their decision not to continue with
the case. 1 5
On the next day, Judge Dizon, Jr. sent a note to the respondent to inform him that
the judge had raised the amount that he had borrowed from the complainants. 1 6 The
judge requested the respondent to tell the complainants that he (Judge Dizon, Jr.) was
going to return whatever he had borrowed from them. However, the complainants
informed the respondent that he should tell the judge that they were no longer
interested in getting back the money.
The respondent made a follow-up at the NBI and PNP Regional O ces in Davao
City of his request for assistance after Manuel mentioned to him that he (Manuel) knew
of many armed men ready at any time to help him in his problem with the judge. ECAaTS
Report and Recommendation of the OBC

In its Report and Recommendation dated May 15, 2008, 1 7 the OBC opined that
the administrative case against the respondent could not be dismissed on the ground
of failure to prosecute due to the complainants' failure to appear in the scheduled
hearing despite due notice.
Based on the facts already established and identi ed, as rendered in the decision
dated January 21, 2006 in Manuel Rafols and Lolita B. Rafols v. Judge Teodoro A. Dizon,
1 8 the OBC rejected the respondent's denial of any knowledge of the transaction
between his clients and the judge.
The OBC recommended:
"WHEREFORE, in the light of the foregoing premises, it is respectfully
recommended that respondent ATTY. RICARDO BARRIOS, Jr. be SUSPENDED
from the practice of law for three (3) years with a stern warning that a repetition
of similar act in the future will be dealt more severely."
Ruling of the Court

We approve and adopt the report and recommendations of the OBC, which we
nd to be fully and competently supported by the evidence adduced by the
complainants and their witnesses, but we impose the supreme penalty of disbarment,
which we believe is the proper penalty.
I

Section 27, Rule 138 of the Rules of Court, which governs the disbarment and
suspension of attorneys, provides:
Section 27. Disbarment and suspension of attorneys by the Supreme
Court; grounds therefor. — A member of the bar may be disbarred or suspended
from his o ce as attorney by the Supreme Court for any deceit, malpractice, or
other gross misconduct in such o ce, grossly immoral conduct, or by reason of
his conviction for a crime involving moral turpitude, or for any violation of the
oath which he is required to take before admission to practice, or for a willful
disobedience of any lawful order of a superior court, or for corruptly or willfully
appearing as an attorney for a party to a case without authority to do so. The
through paid agents or brokers constitute malpractice.
The burden of proof in disbarment and suspension proceedings always rests on

the shoulders of the complainant. The Court exercises its disciplinary power only if the
complainant establishes the complaint by clearly preponderant evidence that warrants
the imposition of the harsh penalty. 1 9 As a rule, an attorney enjoys the legal
presumption that he is innocent of the charges made against him until the contrary is
proved. An attorney is further presumed as an o cer of the Court to have performed
his duties in accordance with his oath. 2 0 cDHAES
Here, the complainants successfully overcame the respondent's presumed

innocence and the presumed regularity in the performance of his duties as an attorney
of the complainants. The evidence against him was substantial, and was not
contradicted.
To begin with, the respondent's denial of knowledge of the transaction between
the complainants and Judge Dizon, Jr. was not only implausible, but also
unsubstantiated. It was the respondent himself who had introduced the complainants
to the judge. His act of introducing the complainants to the judge strongly implied that
the respondent was aware of the illegal purpose of the judge in wanting to talk with the
respondent's clients. Thus, we unquali edly accept the aptness of the following
evaluation made in the OBC's Report and Recommendation, viz.:
. . . Being the O cer of the Court, he must have known that meeting
litigants outside the court is something beyond the bounds of the rule and that it
can never be justi ed by any reason. He must have known the purpose of Judge
Dizon in requesting him to meet the complainants-litigants outside the chamber
of Judge Dizon. By his overt act in arranging the meeting between Judge Dizon
and complainants-litigants in the Coffee Shop of the East Royal Hotel, it is crystal
clear that he must have allowed himself and consented to Judge Dizon's desire to
ask money from the complainants-litigants for a favorable decision of their case
which was pending before the sala of Judge Dizon. 2 1
Secondly, the respondent's insistence that he did not see the complainants' act
of handing the money to the judge is unbelievable. In his comment, the respondent even
admitted having himself received the P80,000.00 from the complainants, and having
kept P30,000.00 of that amount pursuant to the instruction of the judge as a token of
the friendship between him and the judge. 2 2 The admission proved that the respondent
had known all along of the illegal transaction between the judge and the complainants,
and belied his feigned lack of knowledge of the delivery of the money to the judge.
Thirdly, his attempt to explain that the complainants had given the money to the
judge as a loan, far from softening our strong impression of the respondent's liability,
con rmed his awareness of the gross impropriety of the transaction. Being the
complainants' attorney in the civil case being heard before the judge, the respondent
could not but know that for the judge to borrow money from his clients was highly
irregular and outrightly unethical. If he was innocent of wrongdoing, as he claimed, he
should have desisted from having any part in the transaction. Yet, he did not, which
rendered his explanation unbelievable. Compounding the unworthiness of his
explanation was his admission of having retained P30,000.00 of the "borrowed" money
upon the judge's instruction.
And, lastly, the OBC has pointed out that the respondent's act of requesting the
NBI Regional O ce in Davao City to investigate was an afterthought on his part. We
agree with the OBC, for the respondent obviously acted in order to anticipate the
complainants' moves against him and the judge. To be sure, the respondent sensed
that the complainants would not simply forgive and forget the mulcting they had
suffered at the hands of the judge and their own attorney from the time that the
complainants assured him that they were no longer interested to get back their money
despite their being very angry at the judge's greed.HScCEa
Overall, the respondent' denials were worthless and unavailing in the face of the
uncontradicted evidence showing that he had not only personally arranged the meeting
between Manuel and Judge Dizon, Jr., but had also communicated to the complainants
the judge's illegal reason for the meeting. It is axiomatic that any denial, to be accepted
as a viable defense in any proceeding, must be substantiated by clear and convincing
evidence. This need derives from the nature of a denial as evidence of a negative and
self-serving character, weightless in law and insu cient to overcome the testimony of
credible witnesses on affirmative matters. 2 3
II
The practice of law is a privilege heavily burdened with conditions. 2 4 The
attorney is a vanguard of our legal system, and, as such, is expected to maintain not
only legal pro ciency but also a very high standard of morality, honesty, integrity, and
fair dealing in order that the people's faith and con dence in the legal system are
ensured. 2 5 Thus, he must conduct himself, whether in dealing with his clients or with
the public at large, as to be beyond reproach at all times. 2 6 Any violation of the high
moral standards of the legal profession justi es the imposition on the attorney of the
appropriate penalty, including suspension and disbarment. 2 7
Speci cally, the Code of Professional Responsibility enjoins an attorney from
engaging in unlawful, dishonest, or deceitful conduct. 2 8 Corollary to this injunction is
the rule that an attorney shall at all times uphold the integrity and dignity of the Legal
Profession and support the activities of the Integrated Bar. 2 9
The respondent did not measure up to the exacting standards of the Law
Profession, which demanded of him as an attorney the absolute abdication of any
personal advantage that con icted in any way, directly or indirectly, with the interest of
his clients. For monetary gain, he disregarded the vow to "delay no man for money or
malice" and to "conduct myself as a lawyer according to the best of my knowledge and
discretion, with all good delity as well to the courts as to my clients" that he made
when he took the Lawyer's Oath. 3 0 He also disobeyed the explicit command to him as
an attorney "to accept no compensation in connection with his client's business except
from him or with his knowledge and approval." 3 1 He conveniently ignored that the
relation between him and his clients was highly duciary in nature and of a very delicate,
exacting, and confidential character. 3 2
Verily, the respondent was guilty of gross misconduct, which is "improper or
wrong conduct, the transgression of some established and de nite rule of action, a
forbidden act, a dereliction of duty, willful in character, and implies a wrongful intent and
not mere error of judgment." 3 3 Any gross misconduct of an attorney in his professional
or private capacity shows him un t to manage the affairs of others, and is a ground for
the imposition of the penalty of suspension or disbarment, because good moral
character is an essential quali cation for the admission of an attorney and for the
continuance of such privilege. 3 4
The conclusion that the respondent and the disgraced Judge Dizon, Jr. were
conspirators against the former's own clients, whom he was sworn to protect and to
serve with utmost delity and morality, is inevitable for the Court to make in this
administrative case. And, being conspirators, they both deserve the highest penalty.
The disbarment of the respondent is in order, because such sanction is on par with the
dismissal of Judge Dizon, Jr. DISEaC
WHEREFORE , Atty. Ricardo G. Barrios, Jr. is disbarred.

This decision shall be entered in the records of Atty. Barrios, Jr. as a member of
the Philippine Bar.
Copies of the decision shall be furnished to the Bar Con dant and the Integrated
Bar of the Philippines for record purposes; and to the Court Administrator, for
circulation to all courts nationwide.
SO ORDERED .
Puno, C.J., Carpio, Corona, Carpio Morales, Velasco, Jr., Nachura, Leonardo-de
Castro, Brion, Peralta, Bersamin, Del Castillo, Abad, Villarama, Jr., Perez and Mendoza,
JJ., concur.
Footnotes
1.Rollo, pp. 4-5.
2.Formerly OCA IPI No. 98-579-RTJ.
3.A.M. No. RTJ-98-1426, January 31, 2006, 481 SCRA 92.
4.Rollo, pp. 6-9.
5.Id., pp. 10-11.
6.Id., p. 12.
7.Id., p. 13.
8.Id., p. 86.
9.Id., p. 87.
10.Id., pp. 185-195.
11.Id., p. 199.
12.Id., p. 197.
13.Id., p. 202.
14.Id., pp. 204-206.
15.Id., p. 203.
16.Id.
17.Id., pp. 241-249.
18.Supra at note 3.
19.Arma v. Montevilla, A.C. No. 4829, July 21, 2008, 559 SCRA 1.
20.Id.
21.Rollo, pp. 247-248.
22.Id., p. 189.
23.Rafols, Jr. v. Dizon, A.M. RTJ-98-1426, January 31, 2006, 481 SCRA 92; Orfila v. Arellano,
A.M. Nos. P-06-2110 and P-03-1692, February 23, 2006, 482 SCRA 280; Mabini v. Raga,
A.M. No. P-06-2150, June 21, 2006, 491 SCRA 525; Re: (1) Lost Checks Issued to the Late
Roderick Roy P. Melliza, Former Clerk II, MCTC, Zaragga, Iloilo and (2) Dropping from the
Rolls of Ms. Esther T. Andres; A.M. No. 2005-26-SC, November 22, 2006; 507 SCRA 478.
24.Dumadag v. Lumaya, A.C. No. 2614, June 29, 2000, 334 SCRA 513.
25.Cham v. Paita-Moya, A.C. No. 7494, June 27, 2008, 556 SCRA l.
26.Rule 7.03, Code of Professional Responsibility, to wit:
Rule 7.03 — A lawyer shall not engage in conduct that adversely reflects on his fitness to
practice law, nor shall he whether in public or private life, behave in a scandalous
manner to the discredit of the legal profession.
27.Cham v. Paita-Moya, supra at note 25.
28.Rule 1.01, which states:
Rule 1.01 — A lawyer shall not engage in unlawful, dishonest, immoral or deceitful
conduct.
29.Canon 7, Code of Professional Responsibility.
30.In the Lawyer's Oath, the attorney declares that:
. . . I will delay no man for money or malice, and will conduct myself as a lawyer
according to the best of my knowledge and discretion, with all good fidelity as well to the
courts as to my clients; and I impose upon myself this voluntary obligation without any
mental reservation or purpose of evasion. So help me God.
31.Rule 138, Section 20 (e), Rules of Court.
32.Barnachea v. Quiocho, A.C. No. 5925, March 11, 2003, 399 SCRA 1.
33.Whitson v. Atienza, A.C. No. 5535, August 28, 2003, 410 SCRA 10.
34.Id.

SECOND DIVISION
[A.C. No. 9387. June 20, 2012.]

(Formerly CBD Case No. 05-1562)
EMILIA R. HERNANDEZ , complainant, vs . ATTY. VENANCIO B.

PADILLA , respondent.
RESOLUTION
SERENO , J : p
This is a disbarment case led by Emilia Hernandez (complainant) against her

lawyer, Atty. Venancio B. Padilla (respondent) of Padilla Padilla Bautista Law O ces, for
his alleged negligence in the handling of her case.
The records disclose that complainant and her husband were the respondents in an
ejectment case filed against them with the Regional Trial Court of Manila (RTC). HDAECI
In a Decision 1 dated 28 June 2002, penned by Judge Rosmari D. Carandang (Judge

Carandang), the RTC ordered that the Deed of Sale executed in favor of complainant be
cancelled; and that the latter pay the complainant therein, Elisa Duigan (Duigan), attorney's
fees and moral damages.
Complainant and her husband led their Notice of Appeal with the RTC. Thereafter,
the Court of Appeals (CA) ordered them to le their Appellants' Brief. They chose
respondent to represent them in the case. On their behalf, he led a Memorandum on
Appeal instead of an Appellants' Brief. Thus, Duigan led a Motion to Dismiss the Appeal.
The CA granted the Motion in a Resolution 2 dated 16 December 2003.
No Motion for Reconsideration (MR) of the Resolution dismissing the appeal was
led by the couple. Complainant claims that because respondent ignored the Resolution,
he acted with "deceit, unfaithfulness amounting to malpractice of law." 3 Complainant and
her husband failed to le an appeal, because respondent never informed them of the
adverse decision. Complainant further claims that she asked respondent "several times"
about the status of the appeal, but "despite inquiries he deliberately withheld response
[ sic]," to the damage and prejudice of the spouses. 4
The Resolution became nal and executory on 8 January 2004. Complainant was
informed of the Resolution sometime in July 2005, when the Sheriff of the RTC came to her
house and informed her of the Resolution.
On 9 September 2005, complainant led an A davit of Complaint 5 with the
Committee on Bar Discipline of the Integrated Bar of the Philippines (IBP), seeking the
disbarment of respondent on the following grounds: deceit, malpractice, and grave
misconduct. Complainant prays for moral damages in the amount of P350,000.
Through an Order 6 dated 12 September 2005, Director of Bar Discipline Rogelio A.
Vinluan ordered respondent to submit an answer to the Complaint. In his Counter-
Affidavit/Answer, 7 respondent prayed for the outright dismissal of the Complaint.
Respondent explained that he was not the lawyer of complainant. He averred that
prior to the mandatory conference set by the IBP on 13 December 2005, he had never met
complainant, because it was her husband who had personally transacted with him.
According to respondent, the husband "despondently pleaded to me to prepare a
Memorandum on Appeal because according to him the period given by the CA was to
lapse within two or three days." 8 Thus, respondent claims that he led a Memorandum on
Appeal because he honestly believed that "it is this pleading which was required." 9
Before ling the Memorandum, respondent advised complainant's husband to settle
the case. The latter allegedly "gestured approval of the advice." 10
aACEID
After the husband of complainant picked up the Memorandum for ling, respondent
never saw or heard from him again and thus assumed that the husband heeded his advice
and settled the case. When respondent received an Order from the CA requiring him to le
a comment on the Motion to Dismiss led by Duigan, he "instructed his o ce staff to
contact Mr. Hernandez thru available means of communication, but to no avail." 11 Thus,
when complainant's husband went to the o ce of respondent to tell the latter that the
Sheriff of the RTC had informed complainant of the CA's Resolution dismissing the case,
respondent was just as surprised. The lawyer exclaimed, "KALA KO BA NAKIPAG AREGLO
NA KAYO." 12
In his 5 January 2009 Report, 13 IBP Investigating Commissioner Leland R. Villadolid,
Jr. found that respondent violated Canons 5, 17, and 18 of the Code of Professional
Responsibility (the Code). He recommended that respondent be suspended from
practicing law from 3 to 6 months.
The board of governors of the IBP issued Resolution No. XIX-2010-452 on 28
August 2010. Therein, they resolved to adopt and approve the Report and
Recommendation of the Investigating Commissioner. Respondent was suspended from
the practice of law for six months.
Respondent led a Motion for Reconsideration. 14 He prayed for the relaxation of
the application of the Canons of the Code. On 14 January 2012, the IBP board of
governors passed Resolution No. XX-2012-17 15 partly granting his Motion and reducing
the penalty imposed to one-month suspension from the practice of law.
Pursuant to Rule 139-B of the Rules of Court, acting Director for Bar Discipline
Dennis A.B. Funa, through a letter 16 addressed to then Chief Justice Renato C. Corona,
transmitted the documents pertaining to the disbarment Complaint against respondent.
We adopt the factual ndings of the board of governors of the IBP. This Court,
however, disagrees with its Decision to reduce the penalty to one-month suspension. We
thus a rm the six-month suspension the Board originally imposed in its 28 August 2010
Resolution.
Respondent insists that he had never met complainant prior to the mandatory
conference set for the disbarment Complaint she led against him. However, a perusal of
the Memorandum of Appeal led in the appellate court revealed that he had signed as
counsel for the defendant-appellants therein, including complainant and her husband. 17
The pleading starts with the following sentence: "DEFENDANT[S]-APPELLANTS, by
counsel, unto this Honorable Court submit the Memorandum and further allege that: . . . ."
18 Nowhere does the document say that it was led only on behalf of complainant's
husband. ScTaEA

It is further claimed by respondent that the relation created between him and
complainant's husband cannot be treated as a "client-lawyer" relationship, viz.:
It is no more than a client needing a legal document and had it prepared by
a lawyer for a fee. Under the factual milieu and circumstances, it could not be
said that a client entrusted to a lawyer handling and prosecution of his case that
calls for the strict application of the Code; . . . 19
As proof that none of them ever intended to enter into a lawyer-client relationship, he
also alleges that complainant's husband never contacted him after the ling of the
Memorandum of Appeal. According to respondent, this behavior was "very unusual if he
really believed that he engaged" the former's services. 20
Complainant pointed out in her Reply 21 that respondent was her lawyer, because he
accepted her case and an acceptance fee in the amount of P7,000.
According to respondent, however, "[C]ontrary to the complainant's claim that he
charged P7,000 as acceptance fee," "the fee was only for the preparation of the pleading
which is even low for a Memorandum of Appeal: . . . ." 22
Acceptance of money from a client establishes an attorney-client relationship and
gives rise to the duty of delity to the client's cause. 23 Once a lawyer agrees to handle a
case, it is that lawyer's duty to serve the client with competence and diligence. 24
Respondent has failed to fulfill this duty.
According to respondent, he merely drafted the pleading that complainant's
husband asked from him. Respondent also claims that he led a Memorandum of Appeal,
because he "honestly believed" that this was the pleading required, based on what
complainant's husband said.
The IBP Investigating Commissioner's observation on this matter, in the 5 January
2009 Report, is correct. Regardless of the particular pleading his client may have believed
to be necessary, it was respondent's duty to know the proper pleading to be led in
appeals from RTC decisions, viz.:
Having seen the Decision dated 18 June 2002 of the trial court, respondent
should have known that the mode of appeal to the Court of Appeals for said
Decision is by ordinary appeal under Section 2(a) Rule 41 of the 1997 Revised
Rules of Civil Procedure. In all such cases, Rule 44 of the said Rules applies. 25
When the RTC ruled against complainant and her husband, they led a Notice of
Appeal. Consequently, what should apply is the rule on ordinary appealed cases or Rule 44
of the Rules on Civil Procedure. Rule 44 requires that the appellant's brief be led after the
records of the case have been elevated to the CA. Respondent, as a litigator, was expected
to know this procedure. Canon 5 of the Code reads: cdrep
CANON 5 — A lawyer shall keep abreast of legal developments, participate

in continuing legal education programs, support efforts to achieve high standards
in law schools as well as in the practical training of law students and assist in
disseminating information regarding the law and jurisprudence.
The obligations of lawyers as a consequence of their Canon 5 duty have been

expounded in Dulalia, Jr. v. Cruz, 2 6 to wit:
It must be emphasized that the primary duty of lawyers is to obey the laws
of the land and promote respect for the law and legal processes. They are
expected to be in the forefront in the observance and maintenance of the rule of
law. This duty carries with it the obligation to be well-informed of the existing
laws and to keep abreast with legal developments, recent enactments and
jurisprudence. It is imperative that they be conversant with basic legal principles.
Unless they faithfully comply with such duty, they may not be able to discharge
competently and diligently their obligations as members of the bar. Worse, they
may become susceptible to committing mistakes.
In his MR, respondent begged for the consideration of the IBP, claiming that the
reason for his failure to le the proper pleading was that he "did not have enough time to
acquaint himself thoroughly with the factual milieu of the case." The IBP reconsidered and
thereafter significantly reduced the penalty originally imposed.
Respondent's plea for leniency should not have been granted.
The supposed lack of time given to respondent to acquaint himself with the facts of
the case does not excuse his negligence.
Rule 18.02 of the Code provides that a lawyer shall not handle any legal matter
without adequate preparation. While it is true that respondent was not complainant's
lawyer from the trial to the appellate court stage, this fact did not excuse him from his duty
to diligently study a case he had agreed to handle. If he felt he did not have enough time to
study the pertinent matters involved, as he was approached by complainant's husband
only two days before the expiration of the period for ling the Appellant's Brief, respondent
should have led a motion for extension of time to le the proper pleading instead of
whatever pleading he could come up with, just to "beat the deadline set by the Court of
Appeals." 27
Moreover, respondent does not deny that he was given notice of the fact that he
led the wrong pleading. However, instead of explaining his side by ling a comment, as
ordered by the appellate court, he chose to ignore the CA's Order. He claims that he was
under the presumption that complainant and her husband had already settled the case,
because he had not heard from the husband since the ling of the latter's Memorandum of
Appeal. ADaSET
This explanation does not excuse respondent's actions.

First of all, there were several remedies that respondent could have availed himself
of, from the moment he received the Notice from the CA to the moment he received the
disbarment Complaint led against him. But because of his negligence, he chose to sit on
the case and do nothing.
Second, respondent, as counsel, had the duty to inform his clients of the status of
their case. His failure to do so amounted to a violation of Rule 18.04 of the Code, which
reads:
18.04 — A lawyer shall keep the client informed of the status of his case
and shall respond within a reasonable time to the client's request for information.
If it were true that all attempts to contact his client proved futile, the least
respondent could have done was to inform the CA by ling a Notice of Withdrawal of
Appearance as counsel. He could have thus explained why he was no longer the counsel of
complainant and her husband in the case and informed the court that he could no longer
contact them. 2 8 His failure to take this measure proves his negligence.
Lastly, the failure of respondent to le the proper pleading and a comment on
Duigan's Motion to Dismiss is negligence on his part. Under 18.03 of the Code, a lawyer is
liable for negligence in handling the client's case, viz.:
Rule 18.03 — A lawyer shall not neglect a legal matter entrusted to him,
and his negligence in connection therewith shall render him liable.
Lawyers should not neglect legal matters entrusted to them, otherwise their
negligence in fulfilling their duty would render them liable for disciplinary action. 29
Respondent has failed to live up to his duties as a lawyer. When a lawyer violates his
duties to his client, he engages in unethical and unprofessional conduct for which he
should be held accountable. 3 0
WHEREFORE , respondent Atty. Venancio Padilla is found guilty of violating Rules
18.02, 18.03, 18.04, as well as Canon 5 of the Code of Professional Responsibility. Hence,
he is SUSPENDED from the practice of law for SIX (6) MONTHS and STERNLY
WARNED that a repetition of the same or a similar offense will be dealt with more
severely.
Let copies of this Resolution be entered into the personal records of respondent as
a member of the bar and furnished to the Bar Con dant, the Integrated Bar of the
Philippines, and the Court Administrator for circulation to all courts of the country for their
information and guidance. AIDcTE
No costs.
SO ORDERED .
Carpio, Brion, Perez and Reyes, JJ., concur.
Footnotes
1.Rollo, Vol. I, pp. 14-24.
2.Id. at 43-44.
3.Id. at 1.
4.Id.
5.Id. at 1-2.
6.Id. at 45.
7.Id. at 52-56.
8.Id. at 53.
9.Id. at 54.
10.Id.
11.Id.
12.Id.
13.Rollo, Vol. II, pp. 2-15.

14.Id. at 16-20.
15.Rollo, Vol. II (page not indicated).
16.Id. at.
17.See rollo, Vol. I, p. 39.
18.Id. at 25.
19.Rollo, Vol. II, p. 18.

20.Id. at 19.
21.Rollo, Vol. I, pp. 76-77.
23.Fernandez v. Atty. Cabrera, 463 Phil. 352 (2003).
24.CODE OF PROFESSIONAL RESPONSIBILITY, Canon 18.
26.A.C. No. 6854, 27 April 2007, 522 SCRA 244, 255 citing Santiago v. Rafanan, A.C. No. 6252,
483 Phil. 94, 105 (2004).
28."Sec. 26. Change of attorneys. — An attorney may retire at any time from any action or
special proceeding, by the written consent of his client filed in court. He may also retire
at any time from substitution, the name of the attorney newly employed shall be entered
on the docket of the court in place of the former one, and written notice of the change
shall be given to the adverse party." * (Rules of Court, Rule 138, Sec. 26)
29.Perea v. Atty. Almadro, 447 Phil. 434 (2003).
30.Fernandez, supra note 23.

SECOND DIVISION
[A.C. No. 6368. June 13, 2012.]
FIDELA BENGCO AND TERESITA BENGCO , complainants, vs . ATTY.

PABLO S. BERNARDO , respondent.
DECISION
REYES , J : p
This is a complaint 1 for disbarment led by complainants Fidela G. Bengco (Fidela)

and Teresita N. Bengco (Teresita) against respondent Atty. Pablo Bernardo (Atty.
Bernardo) for deceit, malpractice, conduct unbecoming a member of the Bar and violation
of his duties and oath as a lawyer.
The acts of the respondent which gave rise to the instant complaint are as follows:
That sometime on or about the period from April 15, 1997 to July 22, 1997,
Atty. Pablo Bernardo with the help and in connivance and collusion with a certain
Andres Magat [wilfully] and illegally committed fraudulent act with intent to
defraud herein complainants Fidela G. Bengco and Teresita N. Bengco by using
false pretenses, deceitful words to the effect that he would expedite the titling of
the land belonging to the Miranda family of Tagaytay City who are the
acquaintance of complainants herein and they convinced herein complainant[s]
that if they will nance and deliver to him the amount of [P]495,000.00 as
advance money he would expedite the titling of the subject land and further by
means of other similar deceit like misrepresenting himself as lawyer of William
Gatchalian, the prospective buyer of the subject land, who is the owner of Plastic
City at Canomay Street, Valenzuela, Metro Manila and he is the one handling
William Gatchalian's business transaction and that he has contracts at NAMREA,
DENR, CENRO and REGISTER OF DEEDS which representation he well knew were
false, fraudulent and were only made to induce the complainant[s] to give and
deliver the said amount ([P]495,000.00) and once in possession of said amount,
far from complying with his obligation to expedite and cause the titling of the
subject land, [wilfully], unlawfully and illegally misappropriated, misapplied and
converted the said amount to his personal use and bene t and despite demand
upon him to return the said amount, he failed and refused to do so, which acts
constitute deceit, malpractice, conduct unbecoming a member of the Bar and
Violation of Duties and Oath as a lawyer. 2 CIAcSa
In support of their complaint, the complainants attached thereto Resolutions dated

December 7, 1998 3 and June 22, 1999 4 of the Third Municipal Circuit Trial Court (MCTC)
of Sto. Tomas and Minalin, Sto. Tomas, Pampanga and the O ce of the Provincial
Prosecutor of San Fernando, Pampanga, respectively, nding probable cause for the ling
of the criminal information 5 against both Atty. Bernardo and Andres Magat (Magat)
before the Regional Trial Court (RTC) of San Fernando, Pampanga, Branch 48, charging
them with the crime of Estafa punishable under Article 315, par. 2 (a) of the Revised Penal
Code.
The respondent was required to le his Comment. 6 On September 24, 2004, the
respondent led an undated Comment, 7 wherein he denied the allegations against him
and averred the following:
2. He had not deceived both complainants between the period from
April 15, 1997 to July 22, 1997 for purposes of getting from them the amount of
[P]495,000.00. It was Andy Magat whom they contacted and who in turn sought
the legal services of the respondent. It was Andy Magat who received the said
money from them.
3. There was no connivance made and entered into by Andy Magat

and respondent. The arrangement for titling of the land was made by Teresita N.
Bengco and Andy Magat with no participation of respondent.
4. The acceptance of the respondent to render his legal service is legal

and allowed in law practice. 8
The case was referred to the Integrated Bar of the Philippines (IBP) for
investigation, report and recommendation. ACaDTH
On February 16, 2005, the IBP ordered the respondent to submit a veri ed comment
pursuant to Rule 139-B, Section 6 of the Rules of Court as it appeared that the
respondent's undated comment filed with the Court was not verified. 9
On March 15, 2005, respondent through counsel requested for an additional fteen
(15) days from March 17, 2005, or until April 1, 2005, within which to comply due to his
medical confinement. 1 0
Thereafter, on April 4, 2005, the respondent led a second motion 1 1 for extension
praying for another 20 days, or until April 22, 2005, alleging that he was still recovering
from his illness.
On August 3, 2005, the case was set for mandatory conference. 1 2 The respondent
failed to appear; thus, the IBP considered the respondent in default for his failure to appear
and for not ling an answer despite extensions granted. The case was then submitted for
report and recommendation. 1 3
Based on the records of the case, Investigating Commissioner Rebecca Villanueva-
Maala made the following findings:
[O]n or before the period from 15 April 1997 to 22 July 1997, respondent
with the help and in connivance and collusion with a certain Andres Magat
("Magat"), by using false pretenses and deceitful words, [wilfully] and illegally
committed fraudulent acts to the effect that respondent would expedite the titling
of the land belonging to the Miranda family of Tagaytay City, who were the
acquaintance of complainants.
Respondent and Magat convinced complainants that if they nance and

deliver to them the amount of [P]495,000.00 as advance money, they would
expedite the titling of the subject land. Respondent represented himself to be the
lawyer of William Gatchalian, the owner of Plastic City located at Canomay Street,
Valenzuela, Metro Manila, who was allegedly the buyer of the subject land once it
has been titled. Respondent and Magat also represented that they have contacts
at NAMREA, DENR, CENRO and the Register of Deeds which representation they
knew to be false, fraudulent and were only made to induce complainants to give
and deliver to them the amount of [P]495,000.00. Once in possession of the said
amount, far from complying with their obligation to expedite and cause the titling
of the subject land, respondent and Magat [wilfully], unlawfully and illegally
misappropriated, misapplied and converted the said amount to their personal use
and bene t and despite demand upon them to return the said amount, they failed
and refused to do so. TaISEH
In view of the deceit committed by respondent and Magat, complainants

led a complaint for Estafa against the former before the Third Municipal Circuit
Trial Court, of Sto. Tomas and Minalin, Sto. Tomas, Pampanga. In the preliminary
investigation conducted by the said court, it nds su cient grounds to hold
respondent and Magat for trial for the crime of Estafa de ned under par. 2(a) of
Art. 315 of the Revised Penal Code, as amended. The case was transmitted to the
O ce of the Provincial Prosecutor of Pampanga for appropriate action as per
Order dated 7 December 1998.
The Assistant Provincial Prosecutor of the O ce of the Provincial

Prosecutor of Pampanga conducted a re-investigation of the case. During the re-
investigation thereof, Magat was willing to reimburse to complainants the
amount of [P]200,000.00 because according to him the amount of [P]295,000.00
should be reimbursed by respondent considering that the said amount was turned
over to respondent for expenses incurred in the documentation prior to the titling
of the subject land. Both respondent and Magat requested for several extensions
for time to pay back their obligations to the complainants. However, despite
extensions of time granted to them, respondent and Magat failed to ful l their
promise to pay back their obligation. Hence, it was resolved that the offer of
compromise was construed to be an implied admission of guilt. The Asst.
Provincial Prosecutor believes that there was no reason to disturb the ndings of
the investigating judge and an Information for Estafa was led against
respondent and Magat on 8 July 1999 before the Regional Trial Court, San
Fernando, Pampanga.
The failure of the lawyer to answer the complaint for disbarment despite
due notice on several occasions and appear on the scheduled hearings set, shows
his outing resistance to lawful orders of the court and illustrates his despiciency
for his oath of office as a lawyer which deserves disciplinary sanction . . . .
From the facts and evidence presented, it could not be denied that
respondent committed a crime that import deceit and violation of his attorney's
oath and the Code of Professional Responsibility under both of which he was
bound to 'obey the laws of the land.' The commission of unlawful acts, specially
crimes involving moral turpitude, acts of dishonesty in violation of the attorney's
oath, grossly immoral conduct and deceit are grounds for suspension or
disbarment of lawyers (Rule 138, Section 27, RRC). ATHCac
The misconduct complained of took place in 1997 and complainants led

the case only on 16 April 2004. As provided for by the Rules of Procedure of the
Commission of Bar Discipline, as amended, dated 24 March 2004, "A complaint
for disbarment, suspension or discipline of attorneys prescribes in two (2) years
from the date of the professional misconduct" (Section 1, Rule VIII). 1 4
The Investigating Commissioner recommended that:

. . . [R]espondent ATTY. PABLO A. BERNARDO be SUSPENDED for a
period of TWO YEARS from receipt hereof from the practice of his profession as
a lawyer and as a member of the Bar. 1 5
On February 1, 2007, the IBP Board of Governors issued Resolution No. XVII-2007-
065, viz.:
RESOLVED to ADOPT and APPROVE, as it is hereby ADOPTED and
APPROVED with modi cation , the Report and Recommendation of the
Investigating Commissioner of the above-entitled case, herein made part of this
Resolution as Annex "A"; and, nding the recommendation fully supported by the
evidence on record and the applicable laws and rules, Atty. Pablo S. Bernardo is
hereby ordered, the restitution of the amount of [P]200,000.00 within sixty
(60) days from receipt of notice with Warning that if he does not return the
amount with in sixty days from receipt of this Order then he will be meted the
penalty of Suspension from the practice of law for one (1) year. 1 6
On May 16, 2007, the respondent promptly led a Motion for Reconsideration 1 7 of
the aforesaid Resolution of the IBP. The respondent averred that: (1) the IBP resolution is
not in accord with the rules considering that the complaint was led more than two (2)
years from the alleged misconduct and therefore, must have been dismissed outright; (2)
he did not commit any misrepresentation in convincing Fidela to give him money to nance
the titling of the land; (3) he was hired as a lawyer through Magat who transacted with
Teresita as evidenced by a Memorandum of Agreement 1 8 signed by the latter; (4) he was
denied due process when the Investigating Commissioner considered him as in default
after having ignored the representative he sent during the hearing on August 3, 2005; and
(5) he long restituted the amount of P225,000.00 not as an offer of compromise but
based on his moral obligation as a lawyer due to Teresita's declaration that he had to stop
acting as her legal counsel sometime in the third quarter of 1997. The respondent pointed
out the admission made by Fidela in her direct testimony before the RTC that she received
the amount, as evidenced by photocopies of receipts.
In an Order 1 9 dated May 17, 2007 issued by the IBP, the complainant was required
to comment within fifteen (15) days from receipt thereof. HAEIac
In her Comment, 2 0 Fidela explained that it took them quite some time in ling the
administrative case because they took into consideration the possibility of an amicable
settlement instead of a judicial proceeding since it would stain the respondent's reputation
as a lawyer; that the respondent went into hiding which prompted them to seek the
assistance of CIDG agents from Camp Olivas in order to trace the respondent's
whereabouts; that the respondent was duly accorded the opportunity to be heard; and
nally, that no restitution of the P200,000.00 plus corresponding interest has yet been
made by the respondent.
On June 21, 2008, Fidela led a Manifestation 2 1 stating that the RTC rendered a
decision in the criminal case for Estafa nding the accused, Atty. Bernardo and Magat
"guilty of conspiracy in the commission of Estafa under Article 315 par. 2 (a) of the
Revised Penal Code and both are sentenced to suffer six (6) years and one (1) day of
Prision Mayor as minimum to twelve (12) years and one (1) day of Reclusion Temporal as
maximum." 2 2
In a Letter 2 3 dated March 23, 2009, addressed to the IBP, Fidela sought the
resolution of the present action as she was already 86 years of age. Later, an Ex-parte
Motion to Resolve the Case 2 4 dated September 1, 2010 was led by the complainants. In
another Letter dated October 26, 2011, Fidela, being 88 years old, sought for Atty.
Bernardo's restitution of the amount of P200,000.00 so she can use the money to buy her
medicine and other needs.
The Court adopts and agrees with the findings and conclusions of the IBP.
It is rst worth mentioning that the respondent's defense of prescription is
untenable. The Court has held that administrative cases against lawyers do not prescribe.
The lapse of considerable time from the commission of the offending act to the institution
of the administrative complaint will not erase the administrative culpability of a lawyer.
Otherwise, members of the bar would only be emboldened to disregard the very oath they
took as lawyers, prescinding from the fact that as long as no private complainant would
immediately come forward, they stand a chance of being completely exonerated from
whatever administrative liability they ought to answer for. 2 5 CITcSH
Further, consistent with his failure to le his answer after he himself pleaded for
several extensions of time to le the same, the respondent failed to appear during the
mandatory conference, as ordered by the IBP. As a lawyer, the respondent is considered
as an o cer of the court who is called upon to obey and respect court processes. Such
acts of the respondent are a deliberate and contemptuous affront on the court's authority
which can not be countenanced.
It can not be overstressed that lawyers are instruments in the administration of
justice. As vanguards of our legal system, they are expected to maintain not only legal
pro ciency but also a high standard of morality, honesty, integrity and fair dealing. In so
doing, the people's faith and con dence in the judicial system is ensured. Lawyers may be
disciplined — whether in their professional or in their private capacity — for any conduct
that is wanting in morality, honesty, probity and good demeanor. 2 6
Rules 2.03 and 3.01 of the Code of Professional Responsibility read:
Rule 2.03. — A lawyer shall not do or permit to be done any act designed
primarily to solicit legal business.
Rule 3.01. — A lawyer shall not use or permit the use of any false,
fraudulent, misleading, deceptive, undigni ed, self-laudatory or unfair statement
or claim regarding his qualifications or legal services.
There is no question that the respondent committed the acts complained of. He
himself admitted in his answer that his legal services were hired by the complainants
through Magat regarding the purported titling of land supposedly purchased. While he
begs for the Court's indulgence, his contrition is shallow considering the fact that he used
his position as a lawyer in order to deceive the complainants into believing that he can
expedite the titling of the subject properties. He never denied that he did not bene t from
the money given by the complainants in the amount of P495,000.00. IcCDAS
The practice of law is not a business. It is a profession in which duty to public

service, not money, is the primary consideration. Lawyering is not primarily meant to be a
money-making venture, and law advocacy is not a capital that necessarily yields pro ts.
The gaining of a livelihood should be a secondary consideration. The duty to public service
and to the administration of justice should be the primary consideration of lawyers, who
must subordinate their personal interests or what they owe to themselves. 2 7
It is likewise settled that a disbarment proceeding is separate and distinct from a
criminal action led against a lawyer despite having involved the same set of facts.
Jurisprudence has it "that a nding of guilt in the criminal case will not necessarily result in
a nding of liability in the administrative case. Conversely, the respondent's acquittal does
not necessarily exculpate him administratively." 2 8
In Yu v. Palaña, 2 9 the Court held that:
Respondent, being a member of the bar, should note that administrative
cases against lawyers belong to a class of their own. They are distinct from and
they may proceed independently of criminal cases. A criminal prosecution will not
constitute a prejudicial question even if the same facts and circumstances are
attendant in the administrative proceedings. Besides, it is not sound judicial
policy to await the final resolution of a criminal case before a complaint against a
lawyer may be acted upon; otherwise, this Court will be rendered helpless to apply
the rules on admission to, and continuing membership in, the legal profession
during the whole period that the criminal case is pending nal disposition, when
the objectives of the two proceedings are vastly disparate. Disciplinary
proceedings involve no private interest and afford no redress for private
grievance. They are undertaken and prosecuted solely for the public welfare and
for preserving courts of justice from the o cial ministration of persons un t to
practice law. The attorney is called to answer to the court for his conduct as an
officer of the court. 3 0 (Citations omitted) ETDAaC
As the records reveal, the RTC eventually convicted the respondent for the crime of
Estafa for which he was meted the penalty of sentenced * to suffer six (6) years and one
(1) day of Prision Mayor as minimum to twelve (12) years and one (1) day of Reclusion
Temporal as maximum. Such criminal conviction clearly undermines the respondent's
moral fitness to be a member of the Bar. Rule 138, Section 27 provides that:
SEC. 27. Disbarment and suspension of attorneys by Supreme Court,
grounds therefor. — A member of the bar may be disbarred or suspended from his
o ce as attorney by the Supreme Court for any deceit, malpractice or other gross
misconduct in such o ce, grossly immoral conduct or by reason of his
conviction of a crime involving moral turpitude, or for any violation of the oath
which he is required to take before the admission to practice, or for a wilful
disobedience appearing as attorney for a party without authority to do so.
In view of the foregoing, this Court has no option but to accord him the punishment
commensurate to all his acts and to accord the complainants, especially the 88-year-old
Fidela, with the justice they utmost deserve. acAESC
WHEREFORE , in view of the foregoing, respondent Atty. Pablo S. Bernardo is found

guilty of violating the Code of Professional Responsibility. Accordingly, he is SUSPENDED
from the practice of law for ONE (1) YEAR effective upon notice hereof.
Further, the Court ORDERS Atty. Pablo S. Bernardo (1) to RETURN the amount of
P200,000.00 to Fidela Bengco and Teresita Bengco within TEN (10) DAYS from receipt
of this Decision and (2) to SUBMIT his proof of compliance thereof to the Court, through
the O ce of the Bar Con dant within TEN (10) DAYS therefrom; with a STERN
WARNING that failure to do so shall merit him the additional penalty of suspension from
the practice of law for one (1) year.
Let copies of this Decision be entered in his record as attorney and be furnished the
Integrated Bar of the Philippines and all courts in the country for their information and
guidance.
SO ORDERED.
Carpio, Brion, Perez and Sereno, JJ., concur.
Footnotes
1.Rollo, pp. 1-3.
2.Id. at 1-2.
3.Id. at 4-7.
4.Id. at 8-10.
5.Id. at 11.
6.Resolution dated June 2, 2004; id. at 13.
7.Id. at 17-18.
8.Id. at 17.
9.IBP Folder, Vol. II, p. 1.
10.Id. at 2.
11.Id. at 3.
12.Id. at 4.
13.Id. at 6.
14.IBP Folder, Report and Recommendation, pp. 4-7.
15.Id. at 7.
16.Id. at 1.
17.Id. at 8-10.
18.Id. at 16-19.
19.Id. at 23.
20.Id. at 24-25.
21.Id. at 31-33.
22.Id. at 34.
23.Id. at 36.
24.Id. at 38-39.
25.Frias v. Atty. Bautista-Lozada, 523 Phil. 17, 19 (2006), citing Heck v. Santos, 467 Phil. 798
(2004).
26.Tomlin II v. Atty. Moya II, 518 Phil. 325, 330 (2006).
27.Atty. Khan, Jr. v. Atty. Simbillo, 456 Phil. 560, 565-566 (2003).
28.Gatchalian Promotions Talents Pools, Inc. v. Atty. Nadoza, 374 Phil. 1, 10 (1999).
29.A.C. No. 7747, July 14, 2008, 558 SCRA 21.
30.Id. at 28.

SECOND DIVISION
[A.C. No. 9387. June 20, 2012.]

(Formerly CBD Case No. 05-1562)
EMILIA R. HERNANDEZ , complainant, vs . ATTY. VENANCIO B.

PADILLA , respondent.
RESOLUTION
SERENO , J : p
This is a disbarment case led by Emilia Hernandez (complainant) against her

lawyer, Atty. Venancio B. Padilla (respondent) of Padilla Padilla Bautista Law O ces, for
his alleged negligence in the handling of her case.
The records disclose that complainant and her husband were the respondents in an
ejectment case filed against them with the Regional Trial Court of Manila (RTC). HDAECI
In a Decision 1 dated 28 June 2002, penned by Judge Rosmari D. Carandang (Judge

Carandang), the RTC ordered that the Deed of Sale executed in favor of complainant be
cancelled; and that the latter pay the complainant therein, Elisa Duigan (Duigan), attorney's
fees and moral damages.
Complainant and her husband led their Notice of Appeal with the RTC. Thereafter,
the Court of Appeals (CA) ordered them to le their Appellants' Brief. They chose
respondent to represent them in the case. On their behalf, he led a Memorandum on
Appeal instead of an Appellants' Brief. Thus, Duigan led a Motion to Dismiss the Appeal.
The CA granted the Motion in a Resolution 2 dated 16 December 2003.
No Motion for Reconsideration (MR) of the Resolution dismissing the appeal was
led by the couple. Complainant claims that because respondent ignored the Resolution,
he acted with "deceit, unfaithfulness amounting to malpractice of law." 3 Complainant and
her husband failed to le an appeal, because respondent never informed them of the
adverse decision. Complainant further claims that she asked respondent "several times"
about the status of the appeal, but "despite inquiries he deliberately withheld response
[ sic]," to the damage and prejudice of the spouses. 4
The Resolution became nal and executory on 8 January 2004. Complainant was
informed of the Resolution sometime in July 2005, when the Sheriff of the RTC came to her
house and informed her of the Resolution.
On 9 September 2005, complainant led an A davit of Complaint 5 with the
Committee on Bar Discipline of the Integrated Bar of the Philippines (IBP), seeking the
disbarment of respondent on the following grounds: deceit, malpractice, and grave
misconduct. Complainant prays for moral damages in the amount of P350,000.
Through an Order 6 dated 12 September 2005, Director of Bar Discipline Rogelio A.
Vinluan ordered respondent to submit an answer to the Complaint. In his Counter-
Affidavit/Answer, 7 respondent prayed for the outright dismissal of the Complaint.
Respondent explained that he was not the lawyer of complainant. He averred that
prior to the mandatory conference set by the IBP on 13 December 2005, he had never met
complainant, because it was her husband who had personally transacted with him.
According to respondent, the husband "despondently pleaded to me to prepare a
Memorandum on Appeal because according to him the period given by the CA was to
lapse within two or three days." 8 Thus, respondent claims that he led a Memorandum on
Appeal because he honestly believed that "it is this pleading which was required." 9
Before ling the Memorandum, respondent advised complainant's husband to settle
the case. The latter allegedly "gestured approval of the advice." 10
aACEID
After the husband of complainant picked up the Memorandum for ling, respondent
never saw or heard from him again and thus assumed that the husband heeded his advice
and settled the case. When respondent received an Order from the CA requiring him to le
a comment on the Motion to Dismiss led by Duigan, he "instructed his o ce staff to
contact Mr. Hernandez thru available means of communication, but to no avail." 11 Thus,
when complainant's husband went to the o ce of respondent to tell the latter that the
Sheriff of the RTC had informed complainant of the CA's Resolution dismissing the case,
respondent was just as surprised. The lawyer exclaimed, "KALA KO BA NAKIPAG AREGLO
NA KAYO." 12
In his 5 January 2009 Report, 13 IBP Investigating Commissioner Leland R. Villadolid,
Jr. found that respondent violated Canons 5, 17, and 18 of the Code of Professional
Responsibility (the Code). He recommended that respondent be suspended from
practicing law from 3 to 6 months.
The board of governors of the IBP issued Resolution No. XIX-2010-452 on 28
August 2010. Therein, they resolved to adopt and approve the Report and
Recommendation of the Investigating Commissioner. Respondent was suspended from
the practice of law for six months.
Respondent led a Motion for Reconsideration. 14 He prayed for the relaxation of
the application of the Canons of the Code. On 14 January 2012, the IBP board of
governors passed Resolution No. XX-2012-17 15 partly granting his Motion and reducing
the penalty imposed to one-month suspension from the practice of law.
Pursuant to Rule 139-B of the Rules of Court, acting Director for Bar Discipline
Dennis A.B. Funa, through a letter 16 addressed to then Chief Justice Renato C. Corona,
transmitted the documents pertaining to the disbarment Complaint against respondent.
We adopt the factual ndings of the board of governors of the IBP. This Court,
however, disagrees with its Decision to reduce the penalty to one-month suspension. We
thus a rm the six-month suspension the Board originally imposed in its 28 August 2010
Resolution.
Respondent insists that he had never met complainant prior to the mandatory
conference set for the disbarment Complaint she led against him. However, a perusal of
the Memorandum of Appeal led in the appellate court revealed that he had signed as
counsel for the defendant-appellants therein, including complainant and her husband. 17
The pleading starts with the following sentence: "DEFENDANT[S]-APPELLANTS, by
counsel, unto this Honorable Court submit the Memorandum and further allege that: . . . ."
18 Nowhere does the document say that it was led only on behalf of complainant's
husband. ScTaEA

It is further claimed by respondent that the relation created between him and
complainant's husband cannot be treated as a "client-lawyer" relationship, viz.:
It is no more than a client needing a legal document and had it prepared by
a lawyer for a fee. Under the factual milieu and circumstances, it could not be
said that a client entrusted to a lawyer handling and prosecution of his case that
calls for the strict application of the Code; . . . 19
As proof that none of them ever intended to enter into a lawyer-client relationship, he
also alleges that complainant's husband never contacted him after the ling of the
Memorandum of Appeal. According to respondent, this behavior was "very unusual if he
really believed that he engaged" the former's services. 20
Complainant pointed out in her Reply 21 that respondent was her lawyer, because he
accepted her case and an acceptance fee in the amount of P7,000.
According to respondent, however, "[C]ontrary to the complainant's claim that he
charged P7,000 as acceptance fee," "the fee was only for the preparation of the pleading
which is even low for a Memorandum of Appeal: . . . ." 22
Acceptance of money from a client establishes an attorney-client relationship and
gives rise to the duty of delity to the client's cause. 23 Once a lawyer agrees to handle a
case, it is that lawyer's duty to serve the client with competence and diligence. 24
Respondent has failed to fulfill this duty.
According to respondent, he merely drafted the pleading that complainant's
husband asked from him. Respondent also claims that he led a Memorandum of Appeal,
because he "honestly believed" that this was the pleading required, based on what
complainant's husband said.
The IBP Investigating Commissioner's observation on this matter, in the 5 January
2009 Report, is correct. Regardless of the particular pleading his client may have believed
to be necessary, it was respondent's duty to know the proper pleading to be led in
appeals from RTC decisions, viz.:
Having seen the Decision dated 18 June 2002 of the trial court, respondent
should have known that the mode of appeal to the Court of Appeals for said
Decision is by ordinary appeal under Section 2(a) Rule 41 of the 1997 Revised
Rules of Civil Procedure. In all such cases, Rule 44 of the said Rules applies. 25
When the RTC ruled against complainant and her husband, they led a Notice of
Appeal. Consequently, what should apply is the rule on ordinary appealed cases or Rule 44
of the Rules on Civil Procedure. Rule 44 requires that the appellant's brief be led after the
records of the case have been elevated to the CA. Respondent, as a litigator, was expected
to know this procedure. Canon 5 of the Code reads: cdrep
CANON 5 — A lawyer shall keep abreast of legal developments, participate

in continuing legal education programs, support efforts to achieve high standards
in law schools as well as in the practical training of law students and assist in
disseminating information regarding the law and jurisprudence.
The obligations of lawyers as a consequence of their Canon 5 duty have been

expounded in Dulalia, Jr. v. Cruz, 2 6 to wit:
It must be emphasized that the primary duty of lawyers is to obey the laws
of the land and promote respect for the law and legal processes. They are
expected to be in the forefront in the observance and maintenance of the rule of
law. This duty carries with it the obligation to be well-informed of the existing
laws and to keep abreast with legal developments, recent enactments and
jurisprudence. It is imperative that they be conversant with basic legal principles.
Unless they faithfully comply with such duty, they may not be able to discharge
competently and diligently their obligations as members of the bar. Worse, they
may become susceptible to committing mistakes.
In his MR, respondent begged for the consideration of the IBP, claiming that the
reason for his failure to le the proper pleading was that he "did not have enough time to
acquaint himself thoroughly with the factual milieu of the case." The IBP reconsidered and
thereafter significantly reduced the penalty originally imposed.
Respondent's plea for leniency should not have been granted.
The supposed lack of time given to respondent to acquaint himself with the facts of
the case does not excuse his negligence.
Rule 18.02 of the Code provides that a lawyer shall not handle any legal matter
without adequate preparation. While it is true that respondent was not complainant's
lawyer from the trial to the appellate court stage, this fact did not excuse him from his duty
to diligently study a case he had agreed to handle. If he felt he did not have enough time to
study the pertinent matters involved, as he was approached by complainant's husband
only two days before the expiration of the period for ling the Appellant's Brief, respondent
should have led a motion for extension of time to le the proper pleading instead of
whatever pleading he could come up with, just to "beat the deadline set by the Court of
Appeals." 27
Moreover, respondent does not deny that he was given notice of the fact that he
led the wrong pleading. However, instead of explaining his side by ling a comment, as
ordered by the appellate court, he chose to ignore the CA's Order. He claims that he was
under the presumption that complainant and her husband had already settled the case,
because he had not heard from the husband since the ling of the latter's Memorandum of
Appeal. ADaSET
This explanation does not excuse respondent's actions.

First of all, there were several remedies that respondent could have availed himself
of, from the moment he received the Notice from the CA to the moment he received the
disbarment Complaint led against him. But because of his negligence, he chose to sit on
the case and do nothing.
Second, respondent, as counsel, had the duty to inform his clients of the status of
their case. His failure to do so amounted to a violation of Rule 18.04 of the Code, which
reads:
18.04 — A lawyer shall keep the client informed of the status of his case
and shall respond within a reasonable time to the client's request for information.
If it were true that all attempts to contact his client proved futile, the least
respondent could have done was to inform the CA by ling a Notice of Withdrawal of
Appearance as counsel. He could have thus explained why he was no longer the counsel of
complainant and her husband in the case and informed the court that he could no longer
contact them. 2 8 His failure to take this measure proves his negligence.
Lastly, the failure of respondent to le the proper pleading and a comment on
Duigan's Motion to Dismiss is negligence on his part. Under 18.03 of the Code, a lawyer is
liable for negligence in handling the client's case, viz.:
Rule 18.03 — A lawyer shall not neglect a legal matter entrusted to him,
and his negligence in connection therewith shall render him liable.
Lawyers should not neglect legal matters entrusted to them, otherwise their
negligence in fulfilling their duty would render them liable for disciplinary action. 29
Respondent has failed to live up to his duties as a lawyer. When a lawyer violates his
duties to his client, he engages in unethical and unprofessional conduct for which he
should be held accountable. 3 0
WHEREFORE , respondent Atty. Venancio Padilla is found guilty of violating Rules
18.02, 18.03, 18.04, as well as Canon 5 of the Code of Professional Responsibility. Hence,
he is SUSPENDED from the practice of law for SIX (6) MONTHS and STERNLY
WARNED that a repetition of the same or a similar offense will be dealt with more
severely.
Let copies of this Resolution be entered into the personal records of respondent as
a member of the bar and furnished to the Bar Con dant, the Integrated Bar of the
Philippines, and the Court Administrator for circulation to all courts of the country for their
information and guidance. AIDcTE
No costs.
SO ORDERED .
Carpio, Brion, Perez and Reyes, JJ., concur.
Footnotes
1.Rollo, Vol. I, pp. 14-24.
2.Id. at 43-44.
3.Id. at 1.
4.Id.
5.Id. at 1-2.
6.Id. at 45.
7.Id. at 52-56.
8.Id. at 53.
9.Id. at 54.
10.Id.
11.Id.
12.Id.

14.Id. at 16-20.
15.Rollo, Vol. II (page not indicated).
16.Id. at.
17.See rollo, Vol. I, p. 39.
18.Id. at 25.

20.Id. at 19.
21.Rollo, Vol. I, pp. 76-77.
23.Fernandez v. Atty. Cabrera, 463 Phil. 352 (2003).
24.CODE OF PROFESSIONAL RESPONSIBILITY, Canon 18.
26.A.C. No. 6854, 27 April 2007, 522 SCRA 244, 255 citing Santiago v. Rafanan, A.C. No. 6252,
483 Phil. 94, 105 (2004).
28."Sec. 26. Change of attorneys. — An attorney may retire at any time from any action or
special proceeding, by the written consent of his client filed in court. He may also retire
at any time from substitution, the name of the attorney newly employed shall be entered
on the docket of the court in place of the former one, and written notice of the change
shall be given to the adverse party." * (Rules of Court, Rule 138, Sec. 26)
29.Perea v. Atty. Almadro, 447 Phil. 434 (2003).
30.Fernandez, supra note 23.

EN BANC
[A.C. No. 8172. April 12, 2016.]
ALEX NULADA , complainant, vs. ATTY. ORLANDO S. PAULMA ,

respondent.
RESOLUTION
PERLAS-BERNABE , J : p
The instant administrative case arose from a veri ed complaint 1 for disbarment
by reason of dishonesty and conviction of a crime involving moral turpitude led by
complainant Alex Nulada (complainant) against respondent Atty. Orlando S. Paulma
(respondent).
The Facts
Complainant alleged that on September 30, 2005, respondent issued in his favor
a check in the amount of P650,000.00 as payment for the latter's debt. Because of
respondent's standing as a respected member of the community and his being a
member of the Sangguniang Bayan of the Municipality of Miagao, 2 Province of Iloilo,
complainant accepted the check without question. 3
Unfortunately, when he presented the check for payment, it was dishonored due
to insuf cient funds. Respondent failed to make good the amount of the check despite
notice of dishonor and repeated demands, prompting complainant to le a criminal
complaint for violation of Batas Pambansa Bilang (BP) 22 4 against respondent, 5
before the Of ce of the Provincial Prosecutor, Province of Iloilo, docketed as I.S. No.
2006-637, 6 which issued a Resolution 7 dated May 26, 2006 recommending the ling
of the appropriate information against respondent before the Municipal Trial Court of
Miagao, Province of Iloilo (MTC). 8 Subsequently, said information was docketed as
Criminal Case No. 2604. 9
After due proceedings, the MTC rendered a Decision 10 dated October 30, 2008
nding respondent guilty of violation of BP 22 and ordering him to pay the amount of
P150,000.00 as ne, with subsidiary imprisonment in case of failure to pay.
Furthermore, he was ordered to pay: (1) the sum of P650,000.00 representing the
amount of the check with interest pegged at the rate of twelve percent (12%) per
annum computed from the time of the ling of the complaint; (2) ling fees in the
amount of P10,000.00; and (3) attorney's fees in the amount of P20,000.00 plus
appearance fees of P1,500.00 per hearing. 11
Records show that respondent appealed his conviction to the Regional Trial
Court of Guimbal, Iloilo, Branch 67 (RTC), docketed as Criminal Case No. 346. 1 2 In a
Decision 13 dated March 13, 2009, the RTC af rmed in toto the MTC ruling. On April 16,
2009, the RTC Decision became final and executory. 14
Prior to the promulgation of the RTC Decision, or on February 12, 2009,
complainant led this administrative complaint before the Court, through the Of ce of
the Bar Confidant.
In his defense, 15 respondent denied that he committed dishonesty against
complainant, as prior to September 30, 2005, he informed the latter that there were
insuf cient funds to cover the amount of the check. Respondent claimed that he merely
issued the check in order to accommodate a friend in whose favor he obtained the loan,
stressing that he did not personally benefit from the proceeds thereof. 16 Unfortunately,
said friend had died and respondent had no means by which to pay for the amount of
the check. 17 He also claimed that complainant threatened him and used his unfunded
check to the latter's personal advantage. 18
Thereafter, the Court, in its Resolution dated November 14, 2011, 19 referred this
administrative case to the Integrated Bar of the Philippines (IBP) for its investigation,
report, and recommendation.
The IBP's Report and Recommendation
After conducting mandatory conferences, the Commission on Bar Discipline
(CBD) of the IBP issued a Report and Recommendation 20 dated June 26, 2013,
recommending that respondent be suspended from the practice of law for a period of
six (6) months for violation of the lawyer's oath and the Code of Professional
Responsibility (CPR), as well as for having been found guilty of a crime involving moral
turpitude. 21
It found that the offense for which respondent was found guilty of, i.e., violation
of BP 22, involved moral turpitude, and that he violated his lawyer's oath and the CPR
when he committed the said offense. Stressing the importance of the lawyer's oath, the
IBP held that by his conviction of the said crime, respondent has shown that he is "un t
to protect the administration of justice or that he is no longer of good moral character"
22 which justifies either his suspension or disbarment. 23 CAIHTE
Subsequently, or on October 10, 2014, the IBP Board of Governors issued a

Notice of Resolution 24 adopting and approving with modi cation the IBP's Report and
Recommendation dated June 26, 2013, suspending respondent from the practice of
law for a period of two (2) years for having violated the lawyer's oath and the CPR, as
well as for having been found guilty of a crime involving moral turpitude. 25
The Issue Before the Court
The issue advanced for the Court's resolution is whether or not respondent
should be administratively disciplined for having been found guilty of a crime involving
moral turpitude.
The Court's Ruling
The Court sustains the ndings and conclusions of the CBD of the IBP, as
approved, adopted, and modified by the IBP Board of Governors.
Section 27, Rule 138 of the Rules of Court provides:
Section 27. Disbarment or suspension of attorneys by Supreme
Court; grounds therefor. — A member of the bar may be disbarred or suspended
from his of ce as attorney by the Supreme Court for any deceit, malpractice, or
other gross misconduct in such of ce, grossly immoral conduct, or by reason of
his conviction of a crime involving moral turpitude, or for any violation of the
oath which he is required to take before admission to practice, or for a willful
disobedience of any lawful order of a superior court, or for corruptly or willfully
appearing as an attorney for a party to a case without authority to do so. The
through paid agents or brokers, constitutes malpractice.

Canon 1 of the CPR mandates all members of the bar "to obey the laws of the
land and promote respect for law . . . ." Rule 1.01 thereof speci cally provides that "[a]
lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct." By taking
the lawyer's oath, a lawyer becomes a guardian of the law and an indispensable
instrument for the orderly administration of justice. 26 As such, he can be disciplined for
any conduct, in his professional or private capacity, which renders him un t to continue
to be an officer of the court. 27
In Enriquez v. De Vera , 28 the Court discussed the purpose and nature of a
violation of BP 22 in relation to an administrative case against a lawyer, as in this case,
to wit:
[BP] 22 has been enacted in order to safeguard the interest of the
banking system and the legitimate public checking account users. The
gravamen of the offense de ned and punished by [BP] 22 [. . .] is the act of
making and issuing a worthless check, or any check that is dishonored upon its
presentment for payment and putting it in circulation; the law is designed to
prohibit and altogether eliminate the deleterious and pernicious practice of
issuing checks with insuf cient funds, or with no credit, because the practice is
deemed a public nuisance, a crime against public order to be abated.
xxx xxx xxx
Being a lawyer, respondent was well aware of the objectives and
coverage of [BP] 22. If he did not, he was nonetheless presumed to know them,
for the law was penal in character and application. His issuance of the
unfunded check involved herein knowingly violated [BP] 22, and exhibited his
indifference towards the pernicious effect of his illegal act to public interest and
public order. He thereby swept aside his Lawyer's Oath that enjoined him to
support the Constitution and obey the laws. 29
Clearly, the issuance of worthless checks in violation of BP Blg. 22 indicates a
lawyer's un tness for the trust and con dence reposed on him, shows such lack of
personal honesty and good moral character as to render him unworthy of public
confidence, and constitutes a ground for disciplinary action. 30
In this case, respondent's conviction for violation of BP 22, a crime involving
moral turpitude, had been indubitably established. Such conviction has, in fact, already
become nal. Consequently, respondent violated the lawyer's oath, as well as Rule 1.01,
Canon 1 of the CPR, as aptly found by the IBP and, thus, must be subjected to
disciplinary action.
In Heenan v. Espejo , 31 the Court suspended therein respondent from the
practice of law for a period of two (2) years when the latter issued checks which were
dishonored due to insuf ciency of funds. In A-1 Financial Services, Inc. v. Valerio , 32 the
same penalty was imposed by the Court to respondent who issued worthless checks
to pay off her loan. Likewise, in Dizon v. De Taza , 33 the Court meted the penalty of
suspension for a period of two (2) years to respondent for having issued bouncing
checks, among other infractions. Finally, in Wong v. Moya II , 34 respondent was ordered
suspended from the practice of law for a period of two (2) years, because aside from
issuing worthless checks and failure to pay his debts, respondent also breached his
client's trust and con dence to his personal advantage and had shown a wanton
disregard of the IBP's Orders in the course of its proceedings. Accordingly, and in view
of the foregoing instances when the erring lawyer was suspended for a period of two
(2) years for the same violation, the Court nds it appropriate to mete the same penalty
to respondent in this case.
As a nal word, it should be emphasized that membership in the legal profession
is a privilege burdened with conditions. 35 A lawyer is required to observe the law and
be mindful of his or her actions whether acting in a public or private capacity. 36 Any
transgression of this duty on his part would not only diminish his reputation as a lawyer
but would also erode the public's faith in the legal profession as a whole. 37 In this case,
respondent's conduct fell short of the exacting standards expected of him as a
member of the bar, for which he must suffer the necessary consequences. DETACa
WHEREFORE , respondent Atty. Orlando S. Paulma is hereby SUSPENDED from

the practice of law for a period of two (2) years, effective upon his receipt of this
Resolution. He is warned that a repetition of the same or similar act will be dealt with
more severely.
Let a copy of this Resolution be entered in Atty. Paulma's personal record with
the Of ce of the Bar Con dant, and copies be served to the Integrated Bar of the
Philippines and the Of ce of the Court Administrator for circulation to all the courts in
the land.
SO ORDERED .
Sereno, C.J., Carpio, Velasco, Jr., Leonardo-de Castro, Brion, Bersamin, Del
Castillo, Perez, Mendoza, Reyes, Leonen, Jardeleza and Caguioa, JJ., concur.
Peralta, * J., is on official leave.
Footnotes
* On official leave.
1. Dated January 7, 2009. Rollo, pp. 1-5.
2. Spelled as "Miag-ao" in some parts of the rollo.
3. Rollo, p. 2.
4. Entitled "AN ACT PENALIZING THE MAKING OR DRAWING AND ISSUANCE OF A CHECK
WITHOUT SUFFICIENT FUNDS OR CREDIT AND FOR OTHER PURPOSES," approved
on April 3, 1979.
5. Rollo, p. 2.
6. See id. at 78.
7. Id. at 78-80. Issued by 3rd Assistant Provincial Prosecutor Globert J. Justalero and
approved by Provincial Prosecutor Bernabe D. Dusaban.
8. Id. at 79.
9. See id. at 6.
10. Id. at 6-19. Penned by Designated Judge Ernesto A. Templanza, Sr.
11. Id. at 18-19.
12. See id. at 72.
13. Id. at 72-73. Penned by Judge Domingo D. Diamante.
14. See Entry of Final Judgment signed by Clerk of Court VI Atty. Aemos Jonathan A.
Galuego; id. at 30. It appears from the records that respondent elevated the criminal
case before the Court of Appeals (CA) through ling of two (2) separate motions for
extensions to le petition, which were, however denied by the CA, in its Resolution
dated October 1, 2009 for failure to: (a) pay full amount of docket and lawful fees;
a n d (b) le the petition within the extended period (see id. at 74-75). Said CA
Resolution became nal and executory on October 2, 2010 (see Entry of Judgment
signed by Division Clerk of Court May Faith L. Trumata-Rabotiaco; id. at 116).
15. See Counter-Affidavit dated September 2, 2011; id. at 43-46.
16. Id. at 43-44.
17. Id. at 44.
18. Id. at 45.
19. Id. at 48. Signed by Division Clerk of Court Wilfredo V. Lapitan.
20. Id. at 122-125. Issued by IBP Commissioner Roland B. Beltran.
21. See id. at 125.
22. Id. at 124.
23. See id.
24. Id. at 121, including dorsal portion thereof. Issued by National Secretary Nasser A.
Marohomsalic.
25. See Resolution No. XXI-2014-737 in CBD Case No. 12-3357; id.
26. Foronda v. Alvarez, Jr., AC No. 9976, June 25, 2014, 727 SCRA 155, 164, citing Manzano v.
Soriano, 602 Phil. 419, 426-427 (2009).
27. Id., citing de Chavez-Blanco v. Lumasag, Jr., 603 Phil. 59, 65 (2009).
28. See A.C. No. 8330, March 16, 2015, citing Ong v. Delos Santos , A.C. No. 10179, March 4,
2014, 717 SCRA 663, 668-669.
29. See id.
30. Wong v. Moya II , 590 Phil. 279, 289 (2008), citing Cuizon v. Macalino , 477 Phil. 569, 575
(2004).
31. A.C. No. 10050, December 3, 2013, 711 SCRA 290.
32. 636 Phil. 627 (2010).
33. A.C. 7676, June 10, 2014, 726 SCRA 70.
34. Supra note 30.
35. Id. at 290.
36. Enriquez v. De Vera, supra note 28.
37. Ong v. Delos Santos, supra note 28, at 671.

EN BANC
[A.C. No. 11078. July 19, 2016.]
VERLITA V. MERCULLO and RAYMOND VEDANO , complainants, vs.

ATTY. MARIE FRANCES E. RAMON , respondent.
DECISION
BERSAMIN , J : p
This case concerns the complaint for the disbarment of Atty. Marie Frances E.
Ramon for violating Rule 1.01, Canon 1 of the Code of Professional Responsibility and
the Lawyer's Oath for deceiving the complainants in order to obtain the substantial
amount of P350,000.00 on the pretext of having the foreclosed asset of the latter's
mother redeemed.
Antecedents
In the period from 2002 to 2011, the National Home Mortgage Finance
Corporation (NHMFC) sent several demand letters to Carmelita T. Vedaño 1 regarding
her unpaid obligations secured by the mortgage covering her residential property in
Novaliches, Caloocan City. 2 To avoid the foreclosure of the mortgage, Carmelita
authorized her children, Verlita Mercullo and Raymond Vedaño (complainants herein), to
inquire from the NHMFC about the status of the obligations. Verlita and Raymond
learned that their mother's arrears had amounted to P350,000.00, and that the matter
of the mortgage was under the charge of respondent Atty. Ramon, but who was not
around at that time.
On June 20, 2012, Carmelita received a letter from the sheriff of the Regional
Trial Court (RTC) in Caloocan City, stating that her property would be put up for auction
in July 2013. Verlita and Raymond thus went to the NHMFC to see the respondent, who
advised them about their right to redeem the property within one year from the
foreclosure. 3
In August 2013, Verlita and Raymond called up the respondent, and expressed
their intention to redeem the property by paying the redemption price. The latter agreed
and scheduled an appointment with them on August 30, 2013.
On August 30, 2013, the respondent arrived at the designated meeting place at
around 1:30 p.m., carrying the folder that Verlita and Raymond had seen at the NHFMC
when they inquired on the status of their mother's property. After the respondent had
oriented them on the procedure for redemption, the complainants handed P350,000.00
to the respondent, who signed an acknowledgment receipt. 4 The respondent issued
two acknowledgment receipts for the redemption price and for litigation expenses, 5
presenting to the complainants her NHMFC identi cation card. Before leaving them,
she promised to inform them as soon as the documents for redemption were ready for
their mother's signature. 6
On September 4, 2013, the respondent met with Verlita and handed a letter 7 that
she had signed, along with the special power of attorney (SPA) for Carmelita's
signature. 8 The letter reads:
Office of the Clerk of Court and Ex Officio Sheriff
Regional Trial Court
Caloocan City
Re: Redemption of the property covered by EJF No. 7484-2013
Dear Atty. Dabalos,
Please assist Ms. Carmelita Vedano, through her Attorney-in-Fact in redeeming
the property covered by EJF No. 7484-2013. Please provide the necessary
computation as to the full redemption amount in order for Ms. Vedano to
redeem the same.
Thank you.
Truly yours,
(Sgd.)
Atty. Marie Frances E. Ramon
Verlita and Raymond went to the NHMFC on September 9, 2013 to follow up on
the redemption, but discovered that the respondent had already ceased to be
connected with the NHMFC. On September 20, 2013, they met with her at Branch 145
of the Regional Trial Court in Makati City where she was attending a hearing. She
informed them that the redemption was under process, and that the certi cate of
redemption would be issued in two to three weeks time. 9 CAIHTE
After communicating through text messages with the respondent, Verlita and
Raymond nally went to see the Clerk of Court of the Regional Trial Court in Caloocan
City on November 27, 2013 to inquire on the status of the redemption. There, they
discovered that the respondent had not deposited the redemption price and had not
filed the letter of intent for redeeming the property. 10
On December 5, 2013, Verlita and Raymond again went to Branch 145 of the
Regional Trial Court in Makati City where the respondent had a hearing, and handed to
her their demand letter requiring her to return the amount she had received for the
redemption. 11 She acknowledged the letter and promised to return the money on
December 16, 2013 by depositing the amount in Verlita's bank account. However, she
did not ful ll her promise and did not show up for her subsequent scheduled hearings
in Branch 145. 12
With their attempts to reach the respondent being in vain, Verlita and Raymond
brought their disbarment complaint in the Integrated Bar of the Philippines (IBP).
Findings and Recommendation of the IBP
The respondent did not submit her answer when required to do so. She also did
not attend the mandatory conference set by the IBP despite notice. Hence, the
investigation proceeded ex parte. 13
IBP Commissioner Arsenio P. Adriano submitted his Report and
Recommendation, 14 whereby he found the respondent to have violated Rule 1.01 of the
Code of Professional Responsibility for engaging in deceitful conduct, and
recommended her suspension from the practice of law for two years, and her return to
the complainants of P350,000.00. with legal interest from December 2, 2013.
The IBP Board of Governors adopted Commissioner Adriano's recommendation
as stated in its Resolution No. XXI-2014-929, 15 viz.:
RESOLVED to ADOPT and APPROVE, as it is hereby ADOPTED AND APPROVED,
the Report and Recommendation of the Investigating Commissioner in the
above-entitled case, herein made part of this Resolution as Annex "A", and
nding the recommendation to be fully supported by the evidence on record and
applicable laws, and for violation of Rule 1.01 of the Code of Professional
Responsibility, Atty. Marie Frances E. Ramon is hereby SUSPENDED from the
practice of law for two (2) years and Ordered to Return the amount of
Three Hundred Fifty Thousand (P350,000.00) Pesos to Complainant .
Ruling of the Court
The Court declares the respondent guilty of dishonesty and deceit.
The Lawyer's Oath is a source of the obligations and duties of every lawyer. Any
violation of the oath may be punished with either disbarment, or suspension from the
practice of law, or other commensurate disciplinary action. 16 Every lawyer must at no
time be wanting in probity and moral ber which are not only conditions precedent to
his admission to the Bar, but are also essential for his continued membership in the
Law Profession. 17 Any conduct unbecoming of a lawyer constitutes a violation of his
oath.
The respondent certainly transgressed the Lawyer's Oath by receiving money
from the complainants after having made them believe that she could assist them in
ensuring the redemption in their mother's behalf. She was convincing about her ability
to work on the redemption because she had worked in the NHFMC. She did not inform
them soon enough, however, that she had meanwhile ceased to be connected with the
agency. It was her duty to have so informed them. She further misled them about her
ability to realize the redemption by falsely informing them about having started the
redemption process. She concealed from them the real story that she had not even
initiated the redemption proceedings that she had assured them she would do.
Everything she did was dishonest and deceitful in order to have them part with the
substantial sum of P350,000.00. She took advantage of the complainants who had
reposed their full trust and con dence in her ability to perform the task by virtue of her
being a lawyer. Surely, the totality of her actuations inevitably eroded public trust in the
Legal Profession.
As a lawyer, the respondent was proscribed from engaging in unlawful,
dishonest, immoral or deceitful conduct in her dealings with others, especially clients
whom she should serve with competence and diligence. 18 Her duty required her to
maintain fealty to them, binding her not to neglect the legal matter entrusted to her.
Thus, her neglect in connection therewith rendered her liable. 19 Moreover, the
unful lled promise of returning the money and her refusal to communicate with the
complainants on the matter of her engagement aggravated the neglect and dishonesty
attending her dealings with the complainants.
The respondent's conduct patently breached Rule 1.01, Canon 1 of the Code of
Professional Responsibility, which provides:
CANON 1 — A lawyer shall uphold the constitution, obey the laws of the land
and promote respect for law and for legal processes.
Rule 1.01 A lawyer shall not engage in unlawful, dishonest, immoral, or deceitful
conduct. DETACa
Evil intent was not essential in order to bring the unlawful act or omission of the
respondent within the coverage of Rule 1.01 of the Code of Professional Responsibility.
20 The Code exacted from her not only a rm respect for the law and legal processes
but also the utmost degree of delity and good faith in dealing with clients and the
moneys entrusted by them pursuant to their fiduciary relationship. 21
Yet another dereliction of the respondent was her wanton disregard of the
several notices sent to her by the IBP in this case. Such disregard could only be wrong
because it re ected her undisguised contempt of the proceedings of the IBP, a body
that the Court has invested with the authority to investigate the disbarment complaint
against her. She thus exhibited her irresponsibility as well as her utter disrespect for the
Court and the rest of the Judiciary. It cannot be understated that a lawyer in her shoes
should comply with the orders of the Court and of the Court's duly constituted
authorities, like the IBP, the of ce that the Court has particularly tasked to carry out the
specific function of investigating attorney misconduct. 22
The respondent deserves severe chastisement and appropriate sanctions. In this
regard, the IBP Board of Governors recommended her suspension for two years from
the practice of law, and her return of the amount of P350,000.00 to the complainants.
The recommended penalty is not commensurate to the gravity of the misconduct
committed. She merited a heavier sanction of suspension from the practice of law for
ve years. Her professional misconduct warranted a longer suspension from the
practice of law because she had caused material prejudice to the clients' interest. 23
She should somehow be taught to be more ethical and professional in dealing with
trusting clients like the complainants and their mother, who were innocently too willing
to repose their utmost trust in her abilities as a lawyer and in her trustworthiness as a
legal professional. In this connection, we state that the usual mitigation of the
recommended penalty by virtue of the misconduct being her rst offense cannot be
carried out in her favor considering that she had disregarded the several notices sent to
her by the IBP in this case. As to the return of the P350,000.00 to the complainant,
requiring her to restitute with legal interest is only fair and just because she did not
comply in the least with her ethical undertaking to work on the redemption of the
property of the mother of the complainants. In addition, she is sternly warned against a
similar infraction in the future; otherwise, the Court will have her suffer a more severe
penalty.
WHEREFORE , the Court FINDS and HOLDS ATTY. MARIE FRANCES E.
RAMON guilty of violating Canon 1, Rule 1.01 of the Code of Professional
Responsibility and the Lawyer's Oath; SUSPENDS HER FROM THE PRACTICE OF
LAW FOR A PERIOD OF FIVE YEARS EFFECTIVE FROM NOTICE , with the STERN
WARNING that any similar infraction in the future will be dealt with more severely;
ORDERS her to return to the complainants the sum of P350,000.00 within 30 days
from notice, plus legal interest of 6% per annum reckoned from the nality of this
decision until full payment; and DIRECTS her to promptly submit to this Court written
proof of her compliance within the same period of 30 days from notice of this decision.
Let copies of this decision be furnished to the Of ce of the Bar Con dant, to be
appended to Atty. Marie Frances E. Ramon's personal record as an attorney; to the
Integrated Bar of the Philippines; and to the Of ce of the Court Administrator for
dissemination to all courts throughout the country for their information and guidance.
SO ORDERED .
Sereno, C.J., Carpio, Velasco, Jr., Leonardo-de Castro, Peralta, Del Castillo, Perez,
Reyes, Perlas-Bernabe, Leonen, Jardeleza and Caguioa, JJ., concur.
Brion, * J., is on leave.
Mendoza, ** J., is on official leave.
Footnotes
* On leave.
** On official leave.
1. Rollo, pp. 9-11.
2. Id. at 12.
3. Id. at 3.
4. Id. at 14.
5. Id. at 15-16.
6. Id. at 4.
7. Id. at 17.
8. Id. at 18.
9. Id. at 5.
10. Id.
11. Id. at 9.
12. Id. at 6.
13. Id. at 37.
14. Id. at 37-38.
15. Id. at 36.
16. Vitriolo v. Dasig, A.C. No. 4984, April 1, 2003, 400 SCRA 172, 179.
17. Penilla v. Alcid, Jr., A.C. No. 9149, September 4, 2013, 705 SCRA 1, 11.
18. Arroyo-Posidio v. Vitan, A.C. No. 6051, April 2, 2007, 520 SCRA 1, 8.
19. Rule 18.03, Code of Professional Responsibility.
20. Re: Report on the Financial Audit Conducted on the Books of Accounts of Atty. Raquel G.
Kho, Clerk of Court IV, Regional Trial Court, Oras, Eastern Samar , A.M. No. P-06-2177,
April 19, 2007, 521 SCRA 25, 28-29.
21. Anacta v. Resurreccion, A.C. No. 9074, August 14, 2012, 678 SCRA 352, 360.
22. Pesto v. Millo, A.C. No. 9612, March 13, 2013, 693 SCRA 281, 289-290.
23. Agpalo, Legal Ethics, 2009 ed., p. 518.

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EN BANC

[A.C. No. 9226. June 14, 2016.]

MA. CECILIA CLARISSA C. ADVINCULA , complainant, vs. ATTY.

Findings and Recommendations of the IBP-CBD

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WHEREFORE , the Court FINDS AND DECLARES ATTY. LEONARDO C.

Thus, for purposes of determining administrative liability of lawyers and

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*** On wellness leave.

**** On official leave.

1. Rollo, pp. 1-5.

13. Id. at 14-22.

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25. Id. at 19.

27. Id. at 22.

28. Id. at 252.

29. Id. at 253-254.

30. Id. at 244.

31. Rollo, unpaginated.

37. A.C. No. 7022, June 18, 2008, 555 SCRA 1, 7.

LEONEN, J., concurring:

2. RULES OF COURT, Rule 131, sec. 3 (c).

3. CONST., art. III, sec. 1 provides:

6. 159 Phil. 171 (1975) [Per J. Makasiar, First Division].

9. A.M. No. RTJ-15-2417, July 22, 2015 <http://sc.judiciary.gov.ph/pdf/web/viewer.html?

12. Id. at 8-9.

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[A.C. No. 6622. July 10, 2012.]

MANUEL G. VILLATUYA , complainant, vs . ATTY. BEDE S.

On the third charge of gross immorality, complainant accused respondent of

On 16 January 2006, respondent submitted his Opposition to the Motion to Admit

On 10 November 2007, complainant submitted to the Commission duplicate

CD Technologies Asia, Inc. 2018 cdasiaonline.com

Respondent exhibited a deplorable lack of that degree of morality required of him as

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5.Commission on Bar Discipline Records, Vol. II, p. 1.

12.Commission on Bar Discipline Records, Vol. II, pp. 202-212.

13.Id. at 195, 201.

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35.Id. at 241 & 243.

45.CODE OF PROFESSIONAL RESPONSIBILITY, Rule 9.02 — A lawyer shall not divide or

(b) Where a lawyer undertakes to complete unfinished legal business of a deceased

46.211 Phil. 547 (1983).

47.CODE OF PROFESSIONAL RESPONSIBILITY, Rule 2.03 — A lawyer shall not do or permit to

50.CODE OF PROFESSIONAL RESPONSIBILITY, Rule 15.08. — A lawyer who is engaged in

51.AGPALO, supra note 48.

52.Commission on Bar Discipline Records, Vol. II, p. 221.

53.A.C. No. 6593, 04 February 2010, 611 SCRA 508.

54.Aba v. De Guzman, A.C. No. 7649, 14 December 2011.

55.Commission on Bar Discipline Records Volume II, pp. 226-234.

56.A.C. No. 4256, 467 Phil. 139 (2004).

57.Cojuangco, Jr. v. Palma, A.C. No. 2474, 501 Phil. 1 (2005).

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[A.C. No. 7332. June 18, 2013.]

EDUARDO A. ABELLA , complainant, vs . RICARDO G. BARRIOS, JR. ,

For the Court's resolution is an administrative complaint 1 for disbarment led by

Rule 1.01 — A lawyer shall not engage in unlawful, dishonest, immoral or

xxx xxx xxx