Facts:

The case involves Felicitas S. Quiambao as the complainant and Atty. Nestor A. Bamba as the respondent. The events leading to this administrative case for disbarment unfolded between June 2000 and January 2001. Felicitas Quiambao was the president and managing director of Allied Investigation Bureau, Inc. (AIB), a family-owned corporation providing security and investigation services. She engaged Atty. Bamba for legal services concerning both her corporate and personal legal matters. Specifically, Atty. Bamba represented her in an ejectment case against Spouses Santiago and Florita Torroba, filed on December 29, 2000, before the Metropolitan Trial Court (MeTC) of Parañaque City, which was registered as Civil Case No. 11928. Quiambao paid attorney's fees for these services.

However, on June 14, 2001, after resigning from AIB, Atty. Bamba filed a replevin and damages complaint against Quiambao on behalf of AIB, seeking the return of a service vehicle assigned to her. This...

Facts:

1. Representation in Ejectment Case:

• Complainant Felicitas S. Quiambao, former president and managing director of Allied Investigation Bureau, Inc. (AIB), engaged respondent Atty. Nestor A. Bamba as her legal counsel in an ejectment case against Spouses Santiago and Florita Torroba, filed on December 29, 2000, before the Metropolitan Trial Court (MeTC) of Parañaque City (Civil Case No. 11928). She paid attorney’s fees for his services.

2. Filing of Replevin Case:

• Six months after Quiambao resigned as AIB president, on June 14, 2001, Atty. Bamba, still her counsel of record in the ejectment case, filed a replevin case on behalf of AIB against her before the MeTC of Quezon City to recover a company-assigned vehicle. This was done without withdrawing as her counsel in the pending ejectment case.

3. Formation of QRMSI and SESSI:

• Atty. Bamba allegedly advised Quiambao to resign from AIB and helped her establish a new security agency, Quiambao Risk Management Specialists, Inc. (QRMSI), in December 2000. He was a "silent partner" in QRMSI, represented by his associate Atty. Gerardo P. Hernandez.
• Simultaneously, Atty. Bamba convinced Quiambao’s brother, Leodegario Quiambao, to organize another security agency, San Esteban Security Services, Inc. (SESSI), where he served as incorporator, director, and president. Funds from AIB were allegedly diverted to fund SESSI.

4. Respondent’s Defense:

• Atty. Bamba denied being Quiambao’s "personal lawyer," claiming he acted as AIB’s counsel and handled her personal cases as part of his duties. He argued that the ejectment and replevin cases were unrelated, and no privileged information was used against her.
• He also denied being a "silent partner" in QRMSI, stating he declined the role and suggested Atty. Hernandez instead. He claimed SESSI was established to complement AIB’s business, which was struggling.

Issue:

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Ruling:

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Ratio:

1. Conflict of Interest:

   • Rule 15.03, Canon 5 of the Code of Professional Responsibility prohibits lawyers from representing conflicting interests without written consent from all parties after full disclosure. Atty. Bamba failed to obtain written consent or fully disclose the facts to both clients.
   • The Court rejected his argument that the ejectment and replevin cases were unrelated, emphasizing that the prohibition applies even if the cases involve different issues or parties. The appearance of double-dealing is sufficient to violate the rule.

2. Duty of Loyalty and Fidelity:

   • Lawyers owe their clients undivided loyalty and fidelity. Atty. Bamba’s involvement in forming QRMSI and SESSI while serving as AIB’s counsel created a conflict of interest. His financial interest in SESSI, a competing security agency, raised doubts about his loyalty to AIB.

3. Violation of Private Security Agency Law:

   • Atty. Bamba’s actions in organizing SESSI violated Republic Act No. 5487, which prohibits individuals from having an interest in more than one security agency. By facilitating the establishment of SESSI, he enabled Leodegario and his wife to circumvent this law.

4. Penalty:

   • The Court imposed a one-year suspension, rejecting the IBP Board of Governors’ recommendation to reduce the penalty to a stern reprimand. The reduction was made without clear justification, and the Court emphasized the need for consistency in disciplinary actions.

Conclusion:

Atty. Nestor A. Bamba was found guilty of representing conflicting interests and violating the Code of Professional Responsibility. His actions demonstrated a lack of loyalty and fidelity to his clients, warranting a one-year suspension from the practice of law.