Case Summary (A.C. No. 10571)
Petitioner and Respondent
Petitioner/Complainant: Atty. Virgilio A. Sevandal
Respondent: Atty. Melita B. Adame
Client: Merlina Borja-Sevandal, surviving spouse of a seafarer
Key Dates and Agreements
• February 2, 2011 – Verbal agreement between Sevandal and Merlina for a 10% contingent fee.
• March 9, 2011 – Written retainer contract covering conjugal partnership and legitime claims before the RTC.
• April 25, 2011 – Alleged addendum expanding Sevandal’s engagement to death and monetary benefits before various agencies, with a 20% fee.
• May 3, 2011 – Adame filed an NLRC complaint on behalf of Merlina for death benefits and related claims.
• May 24, 2011 – Merlina executed a revocation of the retainer contract with Sevandal.
NLRC Proceedings and Dispute over Representation
After Adame lodged the NLRC complaint, Sevandal filed a manifestation withdrawing the complaint and a formal entry of appearance, attaching a photocopy of the addendum. He attended mandatory conferences, objected to Adame’s representation under Rule 8.02, and later filed an Ex Parte Motion for Attorney’s Lien seeking 20% of any award. The NLRC approved a compromise for ₱300,000 attorney’s fees to Sevandal, conditioned on his signing a general release.
IBP-CBD Investigation and Recommendation
On September 6, 2011, Sevandal lodged a disbarment complaint with the IBP Commission on Bar Discipline (IBP-CBD), invoking Rules 8.02 (encroachment) and 10.01 (falsehood) of the Code of Professional Responsibility. The Investigating Commissioner found no violation by Adame, dismissed the complaint, and recommended that Sevandal be held administratively liable for encroachment and improperly receiving ₱300,000 without authority.
IBP Board of Governors’ Resolutions
• March 21, 2013 – IBP Board adopted the IBP-CBD report dismissing the complaint against Adame.
• March 22, 2014 – Motion for reconsideration by Sevandal denied; he was ordered to show cause for encroachment and unauthorized acceptance of fees.
• November 28, 2017 – IBP-CBD recommended suspension of Sevandal for two years and restitution of ₱300,000. The IBP Board adopted this recommendation and transmitted the case to the Supreme Court under Rule 139-B, Rules of Court.
Issue Presented
Whether Sevandal violated Rule 8.02, Canon 8 (encroachment) and Rule 10.01, Canon 10 (falsehood) of the Code of Professional Responsibility, warranting suspension and restitution.
Supreme Court’s Analysis and Ruling
Under the 1987 Constitution, the Court found that Sevandal had no authority to appear in the NLRC proceedings, which were filed and prosecuted exclusively by Adame. His retainer covered only RTC civil matters; the April addendum was dubious in scope and
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Facts of the Case
- On January 27, 2011, Master Camilo Verano Sevandal died while employed by Fuyoh Shipping Co. and Bandila Maritime Services, Inc.
- On February 2, 2011, Merlina Borja-Sevandal engaged Atty. Virgilio A. Sevandal by verbal agreement for legal advice, assistance, and filing of necessary court cases to recover her spousal and heir’s claims.
- On March 9, 2011, Atty. Sevandal and Merlina executed a Retainer Contract for RTC-level actions covering conjugal partnership property and legitime, with a 10% contingent fee plus expenses and cash advances.
- On April 25, 2011, they purportedly executed an Addendum to the Retainer Contract expanding representation to death and monetary benefits claims before multiple agencies, with a 20% contingent fee.
- Merlina’s Retainer and Addendum were supported by affidavits of Josefina Verano Sevandal and Analyn B. Dingal, though the Addendum existed only as photocopies and in two inconsistent versions.
NLRC Proceedings and Counsel Appearances
- On May 3, 2011, Atty. Melita B. Adame filed an NLRC complaint for death benefits, sickness allowance, damages, and attorney’s fees on behalf of Merlina.
- DRPI, the indemnity agent, discontinued settlement upon learning of the NLRC complaint but hinted at resumption if it was withdrawn.
- On May 9, 2011, Atty. Sevandal filed a Manifestation of Withdrawal of Complaint and a Formal Entry of Appearance (with a photocopy of the Addendum) before the NLRC.
- On May 23 and 30, 2011, Atty. Sevandal entered his appearance and objected to Atty. Adame’s representation; Atty. Adame later filed her own entry of appearance.
- On June 17, 2011, Atty. Sevandal moved ex parte for an attorne