Case Summary (G.R. No. 131116)
Factual Background
The complaint asserts that Atty. Funk, who served as the corporate secretary, counsel, and trustee for the Hocorma Foundation from 1983 to 1985, violated the Code of Professional Responsibility (CPR) by filing an action for quieting of title and damages against the foundation on behalf of Mabalacat Institute, Inc., utilizing confidential information obtained during his tenure as counsel.
Respondent’s Defense
In his defense, Atty. Funk claimed his professional relationship was primarily with Don Teodoro V. Santos, who organized both Mabalacat Institute and Hocorma Foundation. He argued that Santos hired him as a personal lawyer, not specifically for the foundation, which purportedly limited his obligations to Hocorma Foundation.
Special Power of Attorney
Atty. Funk further contended that he had entered into a retainer agreement with Santos, whereby his legal fees would be paid from properties transferred to the foundation. He argued that a Special Power of Attorney, executed by Santos, permitted him to oversee the property transfer to Mabalacat Institute, emphasizing his role as legal counsel specifically for Mabalacat Institute at the time the property dealings occurred.
Termination of Relationship
Atty. Funk claimed he severed his professional ties with the foundation in 1985 due to non-payment of fees, leading him to file a complaint against Hocorma Foundation in 1989 that received favorable rulings at the trial court, Court of Appeals, and the Supreme Court.
Committee on Bar Discipline Findings
The Committee on Bar Discipline (CBD) determined that Atty. Funk breached Canon 15, Rule 15.03 of the CPR, establishing a pattern of misconduct by representing conflicting interests over multiple court appearances against Hocorma Foundation, resulting in a recommendation for a one-year suspension.
Supreme Court Ruling
The Supreme Court ruled in favor of upholding the CBD's findings, affirming that Atty. Funk had indeed violated his fiduciary duties by representing Mabalacat Institute against Hocorma Foundation without written cons
...continue readingCase Syllabus (G.R. No. 131116)
Background of the Case
- The case involves a complaint for disbarment filed by the Santos Ventura Hocorma Foundation, Inc. (hereafter referred to as "Hocorma Foundation") against Atty. Richard V. Funk.
- Atty. Funk previously held multiple roles within the Hocorma Foundation, including corporate secretary, counsel, chief executive officer, and trustee from 1983 to 1985.
- The foundation alleges that Atty. Funk violated the Code of Professional Responsibility (CPR) by filing a suit against it on behalf of a new client, Mabalacat Institute, Inc. (hereafter referred to as "Mabalacat Institute"), using confidential information acquired during his tenure with the foundation.
Details of Atty. Funk's Involvement
- Atty. Funk was hired by Don Teodoro V. Santos to assist with the legal issues of Mabalacat Institute and Hocorma Foundation starting in 1982.
- In 1983, Mabalacat Institute appointed him as a director and legal counsel.
- Santos sold or donated substantial assets to the Hocorma Foundation, for which Atty. Funk was retained to handle legal matters.
- A retainer agreement was established between Atty. Funk and Santos, allowing him to collect legal fees from properties donated to the Hocorma Foundation. This agreement was approved by the foundation on December 13, 1983.
- A Special