A.C. No. 6708 - Quiambao vs. Bamba

From June 2000 to January 2001, Felicitas S. Quiambao served as president and managing director of Allied Investigation Bureau, Inc. (AIB), a family‐owned security and investigation firm.
Quiambao engaged Atty. Nestor A. Bamba as corporate counsel for AIB and, additionally, for her personal legal matters. He appeared as her counsel in an ejectment case (Civil Case No. 11928) she filed on 29 December 2000 against Spouses Santiago and Florita Torroba before the Metropolitan Trial Court of Parañaque City, for which she paid attorney’s fees.

On 14 June 2001—while still counsel of record for Quiambao in the pending ejectment case—Bamba filed, on behalf of AIB, a replevin and damages complaint against Quiambao before the Metropolitan Trial Court of Quezon City to recover a corporate service vehicle.
Quiambao alleged that Bamba proposed and assisted in organizing a competing security agency, Quiambao Risk Management Specialists, Inc. (QRMSI), as a “silent partner” via his nominee Atty. Gerardo P. Hernandez. Bamba was paid for these services and allegedly planned to divert AIB’s clients.
The respondent was further accused of persuading Quiambao’s brother, Leodegario, to form another rival firm, San Esteban Security Services, Inc. (SESSI), diverting AIB funds to capitalize it, and taking roles of incorporator, stockholder, and president.

Bamba admitted representing the parties in both suits but denied being Quiambao’s personal lawyer—maintaining he believed all matters were part of his corporate counsel function and that the actions were unrelated, hence no misuse of information. He asserted that Quiambao consented to his continued representation in the ejectment case.
He denied any “silent partner” status in QRMSI, claiming he recommended Hernandez; denied diverting AIB funds for SESSI; contended his shareholding in SESSI was minimal and that he served AIB (legal matters) and SESSI (operational management) in distinct capacities.

The IBP investigating commissioner found undisputed that Bamba simultaneously represented opposing clients in unrelated suits (ejectment vs. replevin) without written consent, and that he advised on QRMSI and participated in SESSI formation while AIB counsel.
The commissioner recommended a one‐year suspension. The IBP Board of Governors adopted the findings but reduced the penalty to a stern reprimand without stating its reasons, contrary to procedural requirements.

Whether Atty. Bamba’s simultaneous representation of Quiambao in the ejectment case and of AIB in the replevin case constituted misconduct for representing conflicting interests in violation of Rule 15.03, Canon 5 of the Code of Professional Responsibility.
Whether Bamba’s involvement in organizing and holding interest in SESSI, a competing security agency, violated Rule 1.02, Canon 1 of the Code of Professional Responsibility and Republic Act No. 5487 (the Private Security Agency Law).