Title
Villamor vs. Jumao-as
Case
A.C. No. 8111
Decision Date
Dec 9, 2020
Atty. Jumao-as represented conflicting interests, breaching fiduciary duty by aiding Villamor in forming a company while later demanding payment for Yu, leading to a two-year suspension.
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Case Summary (A.C. No. 8111)

Allegations Against Atty. Jumao-as

Adelita S. Villamor filed a complaint against Atty. Ely Galland A. Jumao-as, alleging a violation of the Code of Professional Responsibility (CPR) due to representing conflicting interests. Villamor claimed that Atty. Jumao-as, along with Felipe Retubado, persuaded her to establish a lending company, with Retubado managing operations and Atty. Jumao-as handling legal matters. Villamor complied with their requests, leading to the registration of the company and the drafting of legal documents. Atty. Jumao-as facilitated a loan of P500,000.00 from Debbie Yu, which was documented through a promissory note signed by all three parties. However, Villamor was not provided a copy of the note and had no direct interaction with Yu.

  • Villamor accused Atty. Jumao-as of coaxing her into forming a lending company.
  • Atty. Jumao-as handled the legal aspects, including registration and documentation.
  • A loan of P500,000.00 was facilitated by Atty. Jumao-as from Yu, with a promissory note signed by all parties.
  • Villamor did not receive a copy of the promissory note and had no contact with Yu.

Discovery of Conflicting Interests

In March 2007, Atty. Jumao-as requested Villamor to sign blank SEC pre-printed Articles of Incorporation (AOI) forms. Later, Villamor discovered that Atty. Jumao-as and Retubado owned 48% of the company despite minimal financial contributions. In April 2008, Atty. Jumao-as instructed Villamor to issue a post-dated check for P650,000.00 to Yu as security for the loan, assuring her that the check would not be cashed. By May 2008, Atty. Jumao-as and Retubado left Villamor's company to join Yu's new lending business, 3E's Debt Equity Grant Co., and attempted to persuade Villamor's collectors to switch allegiance to their new company.

  • Villamor was surprised to find Atty. Jumao-as and Retubado owned significant shares in the company.
  • Atty. Jumao-as requested a post-dated check from Villamor as security for the loan.
  • Atty. Jumao-as and Retubado left Villamor's company to join a competitor.
  • They attempted to convince Villamor's collectors to remit collections to their new company.

Demand Letter and Complaint

On October 8, 2008, Atty. Jumao-as sent a demand letter to Villamor on behalf of Yu, demanding payment of P650,000.00. This prompted Villamor to file a complaint, asserting that Atty. Jumao-as represented conflicting interests by acting on behalf of Yu while having previously assisted her in establishing her lending company. Villamor contended that Atty. Jumao-as breached her trust by forming a competing business and manipulating her collectors.

  • Atty. Jumao-as sent a demand letter to Villamor for payment on behalf of Yu.
  • Villamor's complaint was based on the claim of conflicting interests.
  • Atty. Jumao-as was accused of breaching trust and forming a competing business.

Respondent's Defense

Atty. Jumao-as denied any lawyer-client relationship with Villamor, asserting that Retubado was the one who engaged his services solely for the incorporation of the lending company. He claimed his role was limited to facilitating the incorporation and delivering the loan from Yu. Atty. Jumao-as maintained that he did not represent Villamor as her lawyer and emphasized that 3E's Debt Equity Grant Co. was owned solely by Yu.

  • Atty. Jumao-as denied a lawyer-client relationship with Villamor.
  • He claimed his involvement was limited to incorporation and loan facilitation.
  • He asserted that 3E's Debt Equity Grant Co. was owned by Yu.

Investigating Commissioner’s Findings

The Investigating Commissioner found Atty. Jumao-as guilty of representing conflicting interests and recommended a one-year suspension from the practice of law. The Board of Governors later modified this recommendation, increasing the suspension to two years. Atty. Jumao-as sought reconsideration, citing Villamor's Affidavit of Desistance filed in 2009, but the IBP denied his motion.

  • The Investigating Commissioner recommended a one-year suspension.
  • The Board of Governors increased the suspension to two years.
  • Atty. Jumao-as's motion for reconsideration was denied.

Court's Ruling on Conflict of Interest

The Court upheld the IBP's findings, confirming that Atty. Jumao-as represented conflicting interests. The Court reiterated the rules on conflict of interest as outline...continue reading


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