Title
Pasay Law vs. Paz
Case
Adm Case No. 1008
Decision Date
Jan 22, 1980
Atty. David D.C. Paz, a former PARGO legal officer, was suspended for two months for representing Pablo Cuneta in a case he previously investigated, violating conflict of interest rules. Gross misconduct allegations were unproven.

Case Summary (Adm Case No. 1008)

Factual Background

PLACU charged Atty. David D.C. Paz with malpractice, gross misconduct in office, gross immoral conduct and disloyalty to the Republic arising from his activities while Legal Officer, Chief Prosecutor and head of the “Charlie Division” of the Presidential Agency on Reforms and Government Operations (PARGO) and his later appearances for Mayor Pablo Cuneta. The complaint alleged that while serving in PARGO in 1969 the respondent participated in the investigation of an anti-graft complaint filed by Dr. Irineo P. Sia against Mayor Cuneta, administered oaths to witnesses, assisted in gathering evidence including copies of the expediente of Civil Case No. 72967, and thus acquired confidential knowledge of the PARGO prosecution. PLACU alleged that after respondent’s detail as Executive and Police Adviser to the Mayor of Makati on September 10, 1969, and after his resignation from PARGO in January 1970, respondent nonetheless appeared on November 13 and 23, 1970 as one of Cuneta’s counsel during the preliminary investigation before the Pasay City Fiscal’s Office.

Procedural History

After PLACU filed the complaint on June 5, 1971 and the Court required an answer on June 22, 1971, the respondent filed an answer and PLACU submitted a reply. The administrative matter was referred to the Solicitor General for investigation, report and recommendation. On January 23, 1973 the Solicitor General transmitted his complaint with the investigation record to the Court. The respondent filed a formal answer on February 24, 1973. The Court thereafter resolved the charges on the record and issued its en banc decision on September 29, 1980.

The Solicitor General’s Charges and Allegations

The Solicitor General charged that respondent represented clients with conflicting interests and committed gross misconduct in office. The Solicitor General’s submission recounted PARGO’s investigation of the Sia complaint, respondent’s role as PARGO’s Legal Officer and head of the Charlie Division, respondent’s alleged handling of PLACU’s copies of the expediente in Civil Case No. 72967 for xeroxing, respondent’s subsequent detail to Makati and resignation, and respondent’s later appearances for Cuneta in the preliminary investigation conducted by the Pasay City Fiscal, which PLACU and the Solicitor General asserted violated professional duties and obstructed justice.

Respondent’s Answer and Defenses

In his answer, respondent denied the material allegations concerning representation of clients with conflicting interests and gross misconduct. He asserted that his participation in the Cuneta matter at PARGO was limited to swearing witnesses, that Mission Order No. 362 had placed other officers in charge of the re-investigation, that he was on detail as police adviser in Makati in 1969 and resigned from PARGO in 1970 and was later transferred to Congress, and that he had been granted clearance dated January 2, 1970 absolving him of money accountability. Respondent also denied borrowing or retaining PLACU’s expediente, pointed to the absence of any receipt produced by Atty. Galileo P. Brion, and stressed that the evidence gathered in the PARGO investigation had been turned over to other PARGO lawyers.

Evidence and the Court’s Findings on Conflict of Interest

The Court found that the evidence established that respondent, while Legal Officer, Chief Prosecutor and head of the Charlie Division, took part in the investigation of the anti-graft complaint against Mayor Cuneta by administering oaths to witnesses and gathering evidence, thereby acquiring confidential information about the strengths and weaknesses of PARGO’s case. The Court also found that respondent later appeared at the preliminary investigation as one of Cuneta’s counsel at its initial hearings on November 13 and 23, 1970. The Court held that those facts established a prior attorney-client relationship between respondent and the government agency, which created an incompatibility of interests and violated professional obligations.

Legal Basis and Reasoning

The Court relied on Section 6 of the Canons of Legal Ethics and Section 20(e) of Rule 138, Revised Rules of Court, which require that an attorney maintain confidences and avoid conflicts. The Court invoked prior jurisprudence, notably Nombrado v. Hernandez and Hilado v. David, to underscore the rule that the mere existence of a prior attorney-client relationship and the confidential information acquired in that relation preclude subsequent appearance for an adverse client regardless of whether the information was actually used. The Court explained that the rule protects the appearance of propriety and public confidence in the profession, and that withdrawal of appearances after they had been entered did not cure the breach because th

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