Case Summary (A.C. No. 9152)
Overview of Complaint and Allegations
Petitioners assailed Resolution No. XIX-2011-484 issued by the IBP Board of Governors, which dismissed the disbarment complaint against the respondents, alleging violations of legal ethics. The core issue involved a claimed entitlement to a share of attorney's fees amounting to over P144 million from a case where Aerocom Investors & Managers, Inc. was awarded a significant settlement. Petitioners contended that the respondents refused to turn over their rightful shares from the attorney's fees, claiming the amount was based on an agreement stipulating a 40% fee from the recovery awarded to Aerocom.
Respondents' Position
The respondents denied the allegations, asserting that the petitioners had already received their portions of the fees. They referenced quitclaim agreements executed by the petitioners, suggesting that these agreements absolved the partnership of any financial obligations toward them. Additionally, respondents claimed that Atty. Raval had minimal involvement in the Aerocom case, as he had other commitments outside the firm.
Investigating Commissioner’s Findings
The Investigating Commissioner, Jose I. De la Rama, Jr., issued a report recommending the dismissal of the disbarment case on grounds of lack of merit. The report emphasized the absence of a corroborated retainer agreement outlining the purported 40% attorney's fees. The President and Corporate Secretary of Aerocom denied the existence of such an agreement, corroborating the respondents' position. The investigating report highlighted that the petitioners failed to produce evidence of the alleged fee structure and confirmed that Atty. Suplico had executed a quitclaim releasing any rights to the firm.
IBP Board’s Resolutions
The IBP Board of Governors adopted the Investigating Commissioner’s recommendations and dismissed the complaint in February 2009. Subsequently, they issued Resolution No. XIX-2011-484, which denied the petitioners’ motion for reconsideration, reaffirming the earlier dismissal.
Legal Standards for Disbarment Proceedings
The court reiterated that, in disbarment cases, the burden of proof lies with the complainant, who must establish the case against the respondent with clear, convincing, and satisfactory evidence. Given the serious implications associated with disbarment, the court maintained that substantial preponderant evidence is necessary to substantiate any claims against an attorney.
Court’s Conclusion
In reviewing the evidence, the court found a deficiency in the proof regarding the attorney's fees agr
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Case Background
- The case involves a Petition for Review filed by Atty. Rolex T. Suplico and Atty. Demaree J.B. Raval against Atty. Luis K. Lokin, Jr. and Atty. Salvador C. Hizon.
- The petitioners are challenging Resolution No. XIX-2011-484, issued by the Board of Governors of the Integrated Bar of the Philippines (IBP), which dismissed their complaint for disbarment against the respondents.
- The complaint was filed due to alleged violations of Rule 7.03, Canon 7 of the Code of Professional Responsibility, and the Lawyer's Oath, concerning the non-payment of attorney's fees amounting to P144,831,371.49.
Nature of the Dispute
- The attorney's fees in question were based on a 40% contingency fee arrangement between Aerocom Investors & Managers, Inc. and the law firm of Raval Suplico and Lokin, Lawyers.
- Petitioners claimed that the respondents refused to turn over their respective shares of the attorney's fees related to a recovery case against the Presidential Commission on Good Government (PCGG).
- The amount involved was based on the total recovery of P362,078,428.74 achieved by Aerocom from the PCGG in Civil Case No. 0044.
Allegations by Petitioners
- The petitioners alleged that they had a consensual agreement regarding the distribution of partnership profits, where Atty. Hizon would receive 30%, while the remaining 70% would be equally divided among Atty. Raval, Atty. Suplico, and Atty. Lokin.
- They furth