Title
IN RE: Ruste
Case
Adm. Case No. 632
Decision Date
Jun 27, 1940
Attorney Ruste suspended for malpractice after improperly acquiring clients' property during a cadastral case, failing to account for funds, and breaching fiduciary duties.

Case Summary (Adm. Case No. 632)

Complaint Allegations

The administrative complaint against Melchor E. Ruste by Mateo San Juan outlined several serious allegations. The complainant and his spouse, Severa Ventura, claimed that Ruste, while serving as their attorney in a cadastral case, demanded extra fees beyond what had initially been agreed upon. They stated that they were coerced into executing a contract of lease and a deed of sale concerning their property in favor of Ruste without receiving the stated considerations.

Evidence of Malpractice

The complaint detailed that Ruste, after representing San Juan and Ventura, demanded payment that the complainants could not afford. He suggested that they lease and sell their property—specifically, an undivided eleven-twentieth share of a lot—to him to cover the additional fees owed. The contracts executed did not reflect any payment made to the complainants, and Ruste subsequently sold the property to a third party, Ong Chua, while failing to remit any of the received payment to San Juan and Ventura.

Court Proceedings

The case was initially referred by the Supreme Court to the Solicitor-General, who filed a formal complaint. Following several proceedings and hearings, the case was submitted for resolution by the Supreme Court. The allegations against Ruste included that he improperly commandeered property while still acting as legal counsel for the complainants and that he did not account for the amounts received from the transaction.

Legal Findings

The Supreme Court found that Ruste's actions constituted malpractice, particularly due to his dual role as both attorney and property buyer in a case where he was representing the opposing side. The principle of attorney-client confidentiality and loyalty was violated, as the attorney leveraged his position to acquire the property under duress and without proper risk disclosure to his clients.

Disciplinary Actions

In light of the findings, the Supreme Court suspended Melchor E. Ruste from the practice of law for a period of one year. The court acknowledged the potential for the complainants to pursue further actions to recover a

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