Case Digest (A.C. No. 10571)
Facts:
On September 6, 2011, Atty. Virgilio A. Sevandal filed a disbarment complaint against Atty. Melita B. Adame with the Integrated Bar of the Philippines–Commission on Bar Discipline (IBP-CBD), alleging violations of Rule 8.02, Canon 8 (encroachment) and Rule 10.01, Canon 10 (falsehood) of the Code of Professional Responsibility (CPR). The dispute arose from Sevandal’s engagement by Merlina Borja-Sevandal on February 2, 2011, to recover her conjugal partnership share and legitime in the Regional Trial Court (RTC), for which she executed a Retainer Contract on March 9, 2011 providing for a 10% success fee, appearance fees, expenses, and cash advances. On April 25, 2011, Sevandal purportedly entered into an Addendum expanding his services to death and monetary benefits from various maritime agencies for a 20% fee. On May 3, 2011, however, Adame filed a complaint for death benefits before the National Labor Relations Commission (NLRC) as Merlina’s counsel. Sevandal then sought to withCase Digest (A.C. No. 10571)
Facts:
- Pre-litigation Agreements
- February 2, 2011 – Verbal engagement of Atty. Virgilio A. Sevandal by Merlina Borja-Sevandal to handle claims arising from the death of her husband, Master Camilo Verano Sevandal, with a 10% contingent fee.
- March 9, 2011 – Written Retainer Contract:
- Scope – Recovery of (a) conjugal partnership property and (b) legitime as surviving spouse and heir, exclusively at the RTC level.
- Fees – 10% success fee on market value, appearance fees, expenses, and cash advances (₱100,000 upon insurance proceeds; ₱150,000 upon filing).
- Addendum and Parallel Claims
- April 25, 2011 – Alleged Addendum to Retainer Contract expanding scope to death and monetary benefits from multiple agencies (e.g., Bandila Maritime, DRPI, SSS, ECC, OWWA) for a 20% success fee; evidence submitted included photocopies with inconsistent versions.
- April 26, 2011 – Sevandal filed claim for death benefits with DRPI.
- NLRC Proceedings and Fee Award
- May 3, 2011 – Atty. Melita B. Adame filed NLRC complaint for death benefits, damages, and attorney’s fees on behalf of Merlina.
- May 9, 2011 – Sevandal filed (a) a Manifestation Re: Withdrawal of Complaint and (b) Formal Entry of Appearance as counsel for Merlina in the NLRC, attaching the Addendum.
- May–June 2011 – He persisted in entering appearances, objected to Adame’s representation, and on June 17, 2011 filed an Ex Parte Motion for Attorney’s Lien (20% fee).
- August 1, 2011 – Labor Arbiter approved compromise awarding Sevandal ₱300,000 as attorney’s fees; Sevandal signed a general release and quitclaim.
- IBP Disciplinary Proceedings
- September 6, 2011 – Sevandal filed disbarment complaint against Adame with the IBP-CBD.
- October 4, 2011 – Adame answered, denying CPR violations, asserting the RTC-only scope of the original contract, revocation of the retainer, and lack of authentic Addendum.
- February 2, 2013 – Investigating Commissioner recommended dismissal of complainant’s charges and investigation of Sevandal for encroachment and improper fee.
- March 21, 2013 & March 22, 2014 – IBP Board adopted dismissal of Adame complaint, ordered Sevandal to show cause; subsequently found Sevandal guilty of encroachment, recommending 2-year suspension and return of ₱300,000.
- Supreme Court Transmission
- November 11, 2020 – Supreme Court received IBP Board’s resolution for review under Rule 139-B, Rules of Court.
Issues:
- Did Atty. Sevandal commit professional misconduct by encroaching upon Atty. Adame’s employment (CPR Rule 8.02, Canon 8) and/or doing falsehood (CPR Rule 10.01, Canon 10)?
- Is the recommended sanction (two-year suspension and return of ₱300,000) appropriate?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)