Title
Castillo vs. Sandiganbayan
Case
G.R. No. 138231
Decision Date
Feb 21, 2002
The Republic sued Gregorio Castillo for alleged involvement in acquiring Silahis Hotel via undervalued transactions. Castillo, acting as attorney-in-fact, invoked lawyer-client privilege posthumously. The Supreme Court upheld the privilege, excluding Castillo as a defendant, citing *Regala vs. Sandiganbayan*.

Case Summary (G.R. No. 138231)

Allegations Against Petitioner

The complaint asserts that Castillo acted as a nominee and agent for co-defendants including Ferdinand E. Marcos and Imelda R. Marcos. It details Castillo’s involvement in establishing Hotel Properties, Inc. to conceal ownership and beneficial interest in Silahis International Hotel. Furthermore, it emphasizes his role in transactions relating to the acquisition of a controlling interest in Silahis International Hotel, Inc.

Procedural History

Petitioner’s legal journey began with an Answer filed on February 29, 1988, where he asserted as an affirmative defense his lack of knowledge about the alleged wrongful acts attributed to the other defendants. Upon Castillo’s death on October 24, 1992, his counsel moved for dismissal based on the premise that the complaint did not survive his death. However, the Sandiganbayan ruled on February 19, 1993, that the cause of action extended beyond mere monetary recovery and could continue despite Castillo's demise.

Motion to Dismiss and Subsequent Rulings

In 1996, Castillo's heirs filed another Motion to Dismiss, citing the lawyer-client confidentiality privilege following the Supreme Court ruling in Regala v. Sandiganbayan. The Sandiganbayan denied this motion on November 24, 1998, determining that Castillo was a principal defendant involved in a conspiracy with the other defendants. His professional capacity as counsel was deemed premature for dismissal based on the confidentiality argument.

Petitioner’s Arguments and Court’s Analysis

The petitioner contended that the Sandiganbayan abused its discretion by not adhering to the principles established in Regala v. Sandiganbayan regarding the lawyer-client confidentiality privilege. The Republic argued that the case was distinguishable, asserting Castillo was not compelled to disclose his clients' identities but was being sued based on his alleged conspiratorial actions.

Applicability of Regala Precedent

The Court acknowledged the relevance of Regala, recognizing that the professional relationship and confidentiality defense were sufficiently raised, similar to the circumstances in Regala. While the Republic posited that confidentiality could not be invoked as grounds for dismissal at this stage, the Court maintained the position that such a principle applies when a lawyer is accused of complicity in wrongful acts.

Doctrine of Stare Decisis

The Court

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