Case Digest (A.C. No. 5804)
Facts:
Benedicto Hornilla and Federico D. Ricafort filed an administrative complaint on November 21, 1997, with the Integrated Bar of the Philippines Commission on Bar Discipline against Atty. Ernesto S. Salunat. They alleged that Salunat, a partner in ASSA Law and Associates, was retained by the Philippine Public School Teachers Association (PPSTA) to defend both the corporation and its Board of Directors in intra-corporate and Ombudsman proceedings docketed as SEC Case No. 05-97-5657 and OMB Case No. 0-97-0695, respectively. The PPSTA Board, which included Salunat’s brother, Aurelio S. Salunat, had approved the retainer contract, while complainants Hornilla and Ricafort, as PPSTA members, had initiated suits against the Board for unlawful spending and undervalued sale of PPSTA property. Despite being informed of the potential conflict of interest, respondent appeared as counsel for the Board in both actions, and allegedly assured members of a favorable outcome, thereby raising issues...Case Digest (A.C. No. 5804)
Facts:
- Parties and Complaint
- On November 21, 1997, Benedicto Hornilla and Atty. Federico D. Ricafort filed an administrative complaint with the IBP Commission on Bar Discipline against Atty. Ernesto S. Salunat for illegal and unethical practice and conflict of interest.
- They alleged respondent was a member of ASSA Law and Associates, retained counsel for the Philippine Public School Teachers Association (PPSTA), with his brother on the PPSTA Board approving his engagement.
- Underlying Cases
- Complainants instituted SEC Case No. 05-97-5657 (intra-corporate derivative suit) and OMB Case No. 0-97-0695 (Ombudsman complaint) against PPSTA Board members for unlawful spending and undervalued sale of PPSTA assets.
- Respondent appeared as counsel of record for the PPSTA Board members in both cases, despite complainants’ protests of conflict of interest and requests for withdrawal.
- Procedural History
- The complaint was docketed as CBD Case No. 97-531, investigated by Commissioner Lydia A. Navarro, who recommended a six-month suspension.
- The IBP Board of Governors adopted said recommendation (Resolution No. XV-3002-230, June 29, 2002), and respondent filed a motion for reconsideration with the Supreme Court.
Issues:
- Whether Atty. Salunat’s representation of PPSTA and its Board members in a derivative suit and Ombudsman case constituted a conflict of interest under the Code of Professional Responsibility.
- What disciplinary sanction is appropriate, considering the nature of the offense and respondent’s record.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)