1. Bautista vs Gonzales

Bautista vs Gonzales [A.M. No. 1625. February 12, 1990] ase !i"est 16 #$% [&er $uria'] FA$%() *n a veri+e! o'laint +le! by An"el -. Bautista, reson!ent a'on A. Gonzales /as ar"e! /it 'alratie, !eeit, "ross 'ison!ut an! violation o la/yers oat. e3uire! by tis $ourt to ans/er te ar"es a"ainst i', reson!ent +le! a 'otion or a bill o artiulars as4in" tis $ourt to or!er o'lainant to a'en! is o'laint by 'a4in" is ar"es 'ore !e+nite. *n a resolution te $ourt "rante! reson!ents 'otion an! re3uire! o'lainant to +le an a'en!e! o'laint. $o'lainant sub'itte! an a'en!e! o'laint or !isbar'ent, alle"in" tat reson!ent o''itte! te ollo/in" ats) 1. Aetin" a ase /erein e a"ree! /it is lients, na'ely, Alaro Fortuna!o, Nestor Fortuna!o an! !ita Fortuna!o [ereinater [ereinater reerre! to as te Fortuna!os] to ay all eenses, inlu!in" ourt ees, or a ontin"ent ee o +ty erent 7508 o te value o te roerty in liti"ation.  :. *n!uin" o'lainant, /o /as is or'er lient, to enter into a ontrat /it i' on Au"ust ;0, 19<1 or te !evelo'ent into a resi!ential sub!ivision o te lan! involve! in $ivil $ase No. =>151:;, overe! by %$% No. %>1929, %>1929, lai'in" tat e a3uire! +ty erent 7508 interest tereo as attorneys ees ro' te Fortuna!os, /ile 4no/in" ully /ell tat te sai! roerty /as alrea!y sol! at a ubli aution on ?une ;0, 19<1, by te &rovinial (eri@ o -anao !el Norte an! re"istere! /it te e"ister o ee!s o *li"an $ity  &ertinent to No. : above, te ontrat, in No. 1 above, rea!s) Ce te [Fortuna!os] [Fortuna!os] a"ree on te 508 ontin"ent ee, rovi!e!, you [reson!ent a'on Gonzales] !eray all eenses, or te suit, inlu!in" ourt ees. *((D) Ceter or not reson!ent o''itte! serious 'ison!ut involvin" a a'ertous ontrat. E-)  (. eson!ent /as susen!e! ro' ratie ratie o la/ or si 76 'onts. A%*#)  %e $ourt +n!s tat te a"ree'ent bet/een te reson!ent reson!ent an! te Fortuna!os ontrary to $anon :2 o te $anons o &roessional tis /i rovi!es tat a la/yer 'ay not roerly a"ree /it a lient to ay or bear te eenses o liti"ation. [(ee also ule 16.0:, $o!e o &roessional &roessional esonsibility]. Altou" a la/yer 'ay in "oo! ait, a!vane te eenses o liti"ation, te sa'e soul! be subet to rei'burse'ent. %e a"ree'ent bet/een reson!ent an! te Fortuna!os, o/ever, !oes not rovi!e or rei'burse'ent to reson!ent o liti"ation eenses ai! by i'. An a"ree'ent /ereby an attorney a"rees to ay eenses o roee!in"s to enore te lients ri"ts is a'ertous [itation o'itte!]. (u

a"ree'ents are a"ainst ubli oliy eseially /ere, as in tis ase, te attorney as a"ree! to arry on te ation at is o/n eense in onsi!eration o so'e bar"ain to ave art o te tin" in !isute [itation o'itte!]. %e eeution o tese ontrats violates te +!uiary relationsi bet/een te la/yer an! is lient, or /i te or'er 'ust inur a!'inistrative santions.

Republic of the Philippines SUPREME COURT Manila EN BANC

A.M. No. 1625

February 12, 1990

ANG- -. BAD%*(%A, o'lainant, vs. A%%. AM#N A. G#NHA-(, reson!ent. (#-D%*#N

& $D*AM) *n a veri+e! o'laint +le! by An"el -. Bautista on May 19, 19<6, reson!ent a'on A. Gonzales /as ar"e! /it 'alratie, !eeit, "ross 'ison!ut an! violation o la/yerIs oat. e3uire! by tis $ourt to ans/er te ar"es a"ainst i', reson!ent +le! on ?une 19, 19<6 a 'otion or a bill o artiulars as4in" tis $ourt to or!er o'lainant to a'en! is o'laint by 'a4in" is ar"es 'ore !e+nite. *n a resolution !ate! ?une 2J, 19<6, te $ourt "rante! reson!entIs 'otion an! re3uire! o'lainant to +le an a'en!e! o'laint. #n ?uly 15, 19<6, o'lainant sub'itte! an a'en!e! o'laint or !isbar'ent, alle"in" tat reson!ent o''itte! te ollo/in" ats) 1. Aetin" a ase /erein e a"ree! /it is lients, na'ely, Alaro Fortuna!o, Nestor Fortuna!o an! !ita Fortuna!o [ereinater reerre! to as te Fortuna!os] to ay all eenses, inlu!in" ourt ees, or a ontin"ent ee o +ty erent 7508 o te value o te roerty in liti"ation. 2. Atin" as ounsel or te Fortuna!os in $ivil $ase No. =>151:;, /erein usebio -oez, ?r. is one o te !een!ants an!, /itout sai! ase bein" ter'inate!, atin" as ounsel or usebio -oez, ?r. in $ivil $ase No. =>15:90 ;. %ranserrin" to i'sel one>al o te roerties o te Fortuna!os, /i roerties are te subet o te liti"ation in $ivil $ase No. =>151:;, /ile te ase /as still en!in"

:. *n!uin" o'lainant, /o /as is or'er lient, to enter into a ontrat /it i' on Au"ust ;0, 19<1 or te !evelo'ent into a resi!ential sub!ivision o te lan! involve! in $ivil $ase No. =>151:;, overe! by %$% No. %>1929, lai'in" tat e a3uire! +ty erent 7508 interest tereo as attorneyIs ees ro' te Fortuna!os, /ile 4no/in" ully /ell tat te sai! roerty /as alrea!y sol! at a ubli aution on ?une ;0, 19<1, by te &rovinial (eri@ o -anao !el Norte an! re"istere! /it te e"ister o ee!s o *li"an $ity 5. (ub'ittin" to te $ourt o First *nstane o =uezon $ity alsi+e! !ou'ents urortin" to be true oies o KA!!en!u' to te -an! evelo'ent A"ree'ent !ate! Au"ust ;0, 19<1K an! sub'ittin" te sa'e !ou'ent to te FisalIs #Le o =uezon $ity, in onnetion /it te o'laint or estaa +le! by reson!ent a"ainst o'lainant !esi"nate! as *.(. No. <5129;6 6. $o''ittin" ats o treaery an! !isloyalty to o'lainant /o /as is lient <. Earassin" te o'lainant by +lin" several o'laints /itout le"al basis beore te $ourt o First *nstane an! te FisalIs #Le o =uezon $ity J. eliberately 'islea!in" te $ourt o First *nstane an! te FisalIs #Le by 'a4in" alse assertion o ats in is lea!in"s 9. Filin" etitions Kleverly reare! 7so tat /ile e !oes not intentionally tell a e, e !oes not tell te trut eiter.K eson!ent +le! an ans/er on (ete'ber 29, 19<6 an! an a'en!e! ans/er on Nove'ber 1J, 19<6, !enyin" te ausations a"ainst i'. $o'lainant +le! a rely to reson!entIs ans/er on ee'ber 29, 19<6 an! on Mar 2:, 19<< reson!ent +le! a reoin!er. *n a resolution !ate! Mar 16, 19J;, te $ourt reerre! te ase to te #Le o te (oliitor General or investi"ation, reort an! reo''en!ation. *n te investi"ation on!ute! by te (oliitor General, o'lainant resente! i'sel as a /itness an! sub'itte! ibits KAK to K&&K, /ile reson!ent aeare! bot as /itness an! ounsel an! sub'itte! ibits K1K to K11K. %e arties /ere re3uire! to sub'it teir resetive 'e'oran!a. #n May 16, 19JJ reson!ent +le! a 'otion to !is'iss te o'laint a"ainst i', lai'in" tat te lon" !elay in te resolution o te o'laint a"ainst i' onstitutes a violation o is onstitutional ri"t to !ue roess an! see!y !isosition o ases. Don or!er o te $ourt, te (oliitor General +le! a o''ent to te 'otion to !is'iss on Au"ust J, 19JJ, elainin" tat te !elay in te investi"ation o te ase /as !ue to te nu'erous re3uests or ostone'ent o se!ule! earin"s +le! by bot arties an! te 'otions or etension o ti'e to +le teir resetive 'e'oran!a.K [$o''ent o te (oliitor General, . 2 eor!, . ;65]. eson!ent +le! a rely to te (oliitor GeneralIs o''ent on #tober 26, 19JJ. *n a resolution !ate! ?anuary 16, 19J9 te $ourt re3uire! te (oliitor General to sub'it is reort an! reo''en!ation /itin tirty 7;0 !ays ro' notie.

#n Aril 11, 19J9, te (oliitor General sub'itte! is reort /it te reo''en!ation tat Atty. a'on A. Gonzales be susen!e! or si 76 'onts. %e (oliitor General oun! tat reson!ent o''itte! te ollo/in" ats o 'ison!ut) a. transerrin" to i'sel one>al o te roerties o is lients !urin" te en!eny o te ase /ere te roerties /ere involve! b. onealin" ro' o'lainant te at tat te roerty subet o teir lan! !evelo'ent a"ree'ent a! alrea!y been sol! at a ubli aution rior to te eeution o sai! a"ree'ent an! . 'islea!in" te ourt by sub'ittin" alle"e! true oies o a !ou'ent /ere t/o si"natories /o a! not si"ne! te ori"inal 7or even te ero oy /ere 'a!e to aear as avin" +e! teir si"natures [eort an! eo''en!ation o te (oliitor General, . 1<>1J ollo, . :0;>:0:]. eson!ent ten +le! on Aril 1:, 19J9 a 'otion to reer te ase to te *nte"rate! Bar o te &iliines 7*B& or investi"ation an! !isosition ursuant to ule 1;9>B o te evise! ules o $ourt. eson!ent 'anieste! tat e inten!s to sub'it 'ore evi!ene beore te *B&. Finally, on Nove'ber 2<, 19J9, reson!ent +le! a sule'ental 'otion to reer tis ase to te *B&, ontainin" a!!itional ar"u'ents to bolster is ontentions in is revious lea!in"s. *. &reli'inarily, te $ourt /ill !isose o te roe!ural issue raise! by reson!ent. *t is reson!entIs ontention tat te reli'inary investi"ation on!ute! by te (oliitor General /as li'ite! to te !eter'ination o /eter or not tere is suLient "roun! to roee! /it te ase an! tat un!er ule 1;9 te (oliitor General still as to +le an a!'inistrative o'laint a"ainst i'. eson!ent lai's tat te ase soul! be reerre! to te *B& sine (etion 20 o ule 1;9>B rovi!es tat)  %is ule sall ta4e e@et on ?une 1, 19JJ an! sall suerse!e te resent ule 1;9 entitle! *(BAMN% # (D(&N(*#N #F A%%#N(. All ases en!in" investi"ation by te #Le o te (oliitor General sall be transerre! to te *nte"rate! Bar o te &iliines Boar! o Governors or investi"ation an! !isosition as rovi!e! in tis ule eet tose ases /ere te investi"ation as been substantially o'lete!.  %e above ontention o reson!ent is untenable. *n te +rst lae, ontrary to reson!entIs lai', reerene to te *B& o o'laints a"ainst la/yers is not 'an!atory uon te $ourt [Hal!ivar v. (an!i"anbayan, G.. Nos. <9690><0< Hal!ivar v. Gonzales, G.. No. J05B o te evise! ules o $ourt [*bi!]. Dn!er (etions 1; an! 1: o ule 1;9>B, te (ure'e $ourt 'ay on!ut !isilinary roee!in"s /itout te intervention o te *B& by reerrin" ases or investi"ation to te (oliitor General or to any oLer o te (ure'e $ourt or u!"e o a lo/er ourt. *n su a ase, te reort an! reo''en!ation o te investi"atin" oLial sall be revie/e! !iretly by te

(ure'e $ourt. %e $ourt sall base its +nal ation on te ase on te reort an! reo''en!ation sub'itte! by te investi"atin" oLial an! te evi!ene resente! by te arties !urin" te investi"ation. (eon!ly, tere is no nee! to reer te ase to te *B& sine at te ti'e o te e@etivity o ule 1;9>B [?une 1, 19JJ] te investi"ation on!ute! by te #Le o te (oliitor General a! been substantially o'lete!. (etion 20 o ule 1;9>B rovi!es tat only en!in" ases, te investi"ation o /i as not been substantially o'lete! by te #Le o te (oliitor General, sall be transerre! to te *B&. *n tis ase te investi"ation by te (oliitor General /as ter'inate! even beore te e@etivity o ule 1;9>B. eson!ent i'sel a!'itte! in is 'otion to !is'iss tat te (oliitor General ter'inate! te investi"ation on Nove'ber 26, 19J6, te !ate /en reson!ent sub'itte! is rely 'e'oran!u' [Motion to is'iss, . 1 eor!, . ;5;].  %ir!ly, tere is no nee! or urter investi"ation sine te #Le o te (oliitor General alrea!y 'a!e a torou" an! o'reensive investi"ation o te ase. %o reer te ase to te *B&, as raye! or by te reson!ent, /ill result not only in !uliation o te roee!in"s on!ute! by te (oliitor General but also to urter !elay in te !isosition o te resent ase /i as laste! or 'ore tan tirteen 71; years. eson!entIs assertion tat e still as so'e evi!ene to resent !oes not /arrant te reerral o te ase to te *B&. $onsi!erin" tat in te investi"ation on!ute! by te (oliitor General reson!ent /as "iven a'le oortunity to resent evi!ene, is ailure to a!!ue a!!itional evi!ene is entirely is o/n ault. %ere /as tereore no !enial o roe!ural !ue roess. %e reor! so/s tat reson!ent aeare! as /itness or i'sel an! resente! no less tan eleven 711 !ou'ents to suort is ontentions. Ee /as also allo/e! to ross>ea'ine te o'lainant /o aeare! as a /itness a"ainst i'. **.  %e $ourt /ill no/ a!!ress te substantive issue o /eter or not reson!ent o''itte! te ats o 'ison!ut alle"e! by o'lainant Bautista. Ater a areul revie/ o te reor! o te ase an! te reort an! reo''en!ation o te (oliitor General, te $ourt +n!s tat reson!ent o''itte! ats o 'ison!ut /i /arrant te eerise by tis $ourt o its !isilinary o/er.  %e reor! so/s tat reson!ent reare! a !ou'ent entitle! K%ranser o i"tsK /i /as si"ne! by te Fortuna!os on Au"ust ;1, 19<1. %e !ou'ent assi"ne! to reson!ent one>al 712 o te roerties o te Fortuna!os overe! by %$% No. %> 1929, /it an area o 2;9.650 s3. ''., an! %$% No. %>;0:1, /it an area o <2.90< s3. '., or an! in onsi!eration o is le"al servies to te latter. At te ti'e te !ou'ent /as eeute!, reson!ent 4ne/ tat te above'entione! roerties /ere te subet o a ivil ase [$ivil $ase No. =>151:;] en!in" beore te $ourt o  First *nstane o =uezon $ity sine e /as atin" as ounsel or te Fortuna!os in sai! ase [(ee Anne KBK o #ri"inal $o'laint, . 12 ollo, . 16]. *n eeutin" te !ou'ent transerrin" one>al 712 o te subet roerties to i'sel,

reson!ent violate! te la/ eressly roibitin" a la/yer ro' a3uirin"  is lientIs roerty or interest involve! in any liti"ation in /i e 'ay ta4e art by virtue o is roession [Artile 1:91, Ne/ $ivil $o!e]. %is $ourt as el! tat te urase by a la/yer o is lientIs roerty or interest in liti"ation is a brea o roessional etis an! onstitutes 'alratie [Eernan!ez v. illanueva, :0 &il. <<: 71920 Go Beltran v. Fernan!ez, <0 &il. 2:J 719:0]. Eo/ever, reson!ent notes tat $anon 10 o te ol! $anons o &roessional tis, /i states tat K[t]e la/yer soul! not urase any interests in te subet 'atter o te liti"ation /i e is on!utin",K !oes not aear any'ore in te ne/ $o!e o &roessional esonsibility. Ee tereore onlu!es tat /ile a urase by a la/yer o roerty in liti"ation is voi! un!er Art. 1:91 o te $ivil $o!e, su urase is no lon"er a "roun! or !isilinary ation un!er te ne/ $o!e o &roessional esonsibility.  %is ontention is /itout 'erit. %e very +rst $anon o te ne/ $o!e states tat Ka la/yer sall uol! te $onstitution, obey te la/s o te lan! an! ro'ote reset or la/ an! le"al roessK 7'asis sulie!, Moreover, ule 1;J, (e. ; o te evise! ules o $ourt re3uires every la/yer to ta4e an oat to :: obey te la/s [o  te eubli o te &iliines] as /ell as te le"al or!ers o te !uly onstitute! autorities terein.K An! or any violation o tis oat, a la/yer 'ay be susen!e! or !isbarre! by te (ure'e $ourt [ule 1;J, (e. 2<, evise! ules o $ourt]. All o  tese un!ersore te role o te la/yer as te van"uar! o our le"al syste'. %e trans"ression o any rovision o la/ by a la/yer is a reulsive an! rereensible at /i te $ourt /ill not ountenane. *n te instant ase, reson!ent, avin" violate! Art. 1:91 o te $ivil $o!e, 'ust be el! aountable bot to is lient an! to soiety. &arentetially, it soul! be note! tat te ersons 'entione! in Art. 1:91 o te $ivil $o!e are roibite! ro' urasin" te roerty 'entione! terein beause o teir eistin" trust relationsi /it te latter. A la/yer is !is3uali+e! ro' a3uirin" by urase te roerty an! ri"ts in liti"ation beause o is +!uiary relationsi /it su roerty an! ri"ts, as /ell as /it te lient. An! it annot be lai'e! tat te ne/ $o!e o &roessional esonsibility as aile! to e'asize te nature an! onse3uenes o su relationsi. $anon 1< states tat Ka la/yer o/es +!elity to te ause o is lient an! e sall be 'in!ul o te trust an! on+!ene reose! in i'.K #n te oter an!, $anon 16 rovi!es tat Ka la/yer sall ol! in trust all 'oneys an! roerties o is lient tat 'ay o'e into is ossession.K Eene, not/itstan!in" te absene o a sei+ rovision on te 'atter in te ne/ $o!e, te $ourt, onsi!erin" te above3uote! rovisions o te ne/ $o!e in relation to Art. 1:91 o te $ivil $o!e, as /ell as te revailin"  urisru!ene, ol!s tat te urase by a la/yer o is lientIs roerty in liti"ation onstitutes a brea o roessional etis or /i a !isilinary ation 'ay be brou"t a"ainst i'. eson!entIs net ontention tat te transer o te roerties /as not really i'le'ente!, beause te lan! !evelo'ent a"ree'ent on /i te transer !een!e! /as later resin!e!, is untenable. No/ere is it rovi!e! in te %ranser o i"ts tat te assi"n'ent o te roerties o te Fortuna!os to reson!ent /as

subet to te i'le'entation o te lan! !evelo'ent a"ree'ent. %e last ara"ra o te %ranser o i"ts rovi!es tat) ... or an! in onsi!eration o te le"al servies o A%%. AM#N A. G#NHA-(, Filiino, 'arrie! to -ilia usay, an! a resi!ent o 2; (unrise Eill, Ne/ Manila, =uezon $ity, ren!ere! to our entire satisation, /e ereby, by tese resents, !o transer an! onvey to te sai! A%%. AM#N A. G#NHA-(, is eirs, suessor, an! assi"ns, one>al 712 o our ri"ts an! interests in te above!esribe! roerty, to"eter /it all te i'rove'ents oun! terein [Anne  o te $o'laint, eor!, . 2J 'asis sulie!]. *t is lear ro' te ore"oin" tat te arties inten!e! te transer o te roerties to reson!ent to be absolute an! unon!itional, an! irresetive o /eter or not te lan! !evelo'ent a"ree'ent /as i'le'ente!. Anoter 'ison!ut o''itte! by reson!ent /as is ailure to !islose to o'lainant, at te ti'e te lan! !evelo'ent a"ree'ent /as entere! into, tat te lan! overe! by %$% No. %>1929 a! alrea!y been sol! at a ubli aution. %e lan! !evelo'ent a"ree'ent /as eeute! on Au"ust ;1, 19<< /ile te ubli aution /as el! on ?une ;0, 19<1. eson!ent !enies tat o'lainant /as is or'er lient, lai'in" tat is aearane or te o'lainant in an anti>"rat ase +le! by te latter a"ainst a ertain Gilbert %eo!oro /as uon te re3uest o o'lainant an! /as un!erstoo! to be only rovisional. eson!ent lai's tat sine o'lainant /as not is lient, e a! no !uty to /arn o'lainant o te at tat te lan! involve! in teir lan! !evelo'ent a"ree'ent a! been sol! at a ubli aution. Moreover, te sale /as !uly annotate! at te ba4 o %$% No. %>1929 an! tis, reson!ent ar"ues, serves as onstrutive notie to o'lainant so tat tere /as no oneal'ent on is art.  %e above ontentions are un'eritorious. ven assu'in" tat te erti+ate o sale /as annotate! at te ba4 o %$% No. %>1929, te at re'ains tat reson!ent aile! to inor' te o'lainant o te sale o te lan! to (a'auna !urin" te ne"otiations or te lan! !evelo'ent a"ree'ent. *n so !oin", reson!ent aile! to live u to te ri"orous stan!ar!s o etis o te la/ roession /i lae a re'iu' on onesty an! on!e'n !uliitous on!ut. %e at tat o'lainant /as not a or'er lient o reson!ent !oes not ee't reson!ent ro' is !uty to inor' o'lainant o an i'ortant at ertainin" to te lan! /i is subet o teir ne"otiation. (ine e /as a arty to te lan! !evelo'ent a"ree'ent, reson!ent soul! ave /arne! te o'lainant o te sale o te lan! at a ubli aution so tat te latter oul! 'a4e a roer assess'ent o te viability o te roet tey /ere ointly un!erta4in". %is $ourt as el! tat a la/yer soul! observe onesty an! airness even in is rivate !ealin"s an! ailure to !o so is a "roun! or !isilinary ation a"ainst i' [$usto!io v. sto, A!'. $ase No. 111;, February 22, 19
Base! on evi!ene sub'itte! by te arties, te (oliitor General oun! tat in te !ou'ent +le! by reson!ent /it te $ourt o First *nstane o =uezon $ity, te si"natories to te a!!en!u' to te lan! !evelo'ent a"ree'ent na'ely, a'on A. Gonzales, Alaro %. Fortuna!o, !ita %. Fortuna!o, Nestor %. Fortuna!o, an! An"el -. BautistaO/ere 'a!e to aear as avin" si"ne! te ori"inal !ou'ent on ee'ber 9, 19<2, as in!iate! by te letters 7(G. beore ea o teir na'es. Eo/ever, it /as only reson!ent Alaro Fortuna!o an! o'lainant /o si" ne! te ori"inal an! !uliate ori"inal 7. 2 an! te t/o oter arties, !it Fortuna!o an! Nestor Fortuna!o, never !i!. ven reson!ent i'sel a!'itte! tat !it an! Nestor Fortuna!o only si"ne! te ero oy 7. 2>A ater reson!ent /rote te' on May 2:, 19<;, as4in" te' to si"n te sai! ero oy attae! to te letter an! to sen! it ba4 to i' ater si"nin" [eoin!er to $o'lainantIs ely, . :>6 ollo, . ;2<>;29]. Moreover, reson!ent a4no/le!"e! tat !it an! Nestor Fortuna!o a! 'erely a"ree! by one to si"n, but a! not atually si"ne!, te alle"e! true oy o te a!!en!u' as o May 2;, 19<; [eson!entIs (ule'ental Motion to eer tis $ase to te *nte"rate! Bar o te &iliines, . 16]. %us, /en reson!ent sub'itte! te alle"e! true oy o te a!!en!u' on May 2;, 19<; as Anne KAK o is Maniestation +le! /it te $ourt o First *nstane o =uezon $ity, e 4no/in"ly 'isle! te $ourt into believin" tat te ori"inal a!!en!u' /as si"ne! by !it Fortuna!o an! Nestor Fortuna!o. (u on!ut onstitutes /illul !isre"ar! o is sole'n !uty as a la/yer to at at all ti'es in a 'anner onsistent /it te trut. A la/yer soul! never see4 to 'islea! te ourt by an arti+e or alse state'ent o at or la/ [(etion 20 7!, ule 1;J, evise! ules o $ourt $anon 22, $anons o &roessional tis $anon 10, ule 10.01, $o!e o &roessional esonsibility]. Anent te +rst ar"e o o'lainant, te (oliitor General oun! tat no i'roriety /as o''itte! by reson!ent in enterin" into a ontin"ent ee ontrat /it te Fortuna!os [eort an! eo''en!ation, . J eor!, . ;9:]. %e $ourt, o/ever, +n!s tat te a"ree'ent bet/een te reson!ent an! te Fortuna!os, /i rovi!es in art tat) Ce te [Fortuna!os] a"ree on te 508 ontin"ent ee, rovi!e!, you [reson!ent a'on Gonzales] !eray all eenses, or te suit, inlu!in" ourt ees. Alaro %. Fortuna!o [si"ne!] !ita %. Fortuna!o [si"ne!] Nestor %. Fortuna!o [si"ne!] $#NF#M a'on A. Gonzales [si"ne!] [Anne A to te $o'laint, eor!, . :]. is ontrary to $anon :2 o te $anons o &roessional tis /i rovi!es tat a la/yer 'ay not roerly a"ree /it a lient to ay or bear te eenses o liti"ation. [(ee also ule 16.0:, $o!e o &roessional esonsibility]. Altou" a la/yer 'ay in "oo! ait, a!vane te eenses o liti"ation, te sa'e soul! be subet to rei'burse'ent. %e a"ree'ent bet/een reson!ent an! te Fortuna!os,

o/ever, !oes not rovi!e or rei'burse'ent to reson!ent o liti"ation eenses ai! by i'. An a"ree'ent /ereby an attorney a"rees to ay eenses o roee!in"s to enore te lientIs ri"ts is a'ertous [?B& Eol!in" $or. v. D.(. 166 F. (u. ;2: 7195J]. (u a"ree'ents are a"ainst ubli oliy eseially /ere, as in tis ase, te attorney as a"ree! to arry on te ation at is o/n eense in onsi!eration o so'e bar"ain to ave art o te tin" in !isute [(ee (a'liner v. Motion &itures &atents $o., et al., 255 F. 2:2 7191J]. %e eeution o tese ontrats violates te +!uiary relationsi bet/een te la/yer an! is lient, or /i te or'er 'ust inur a!'inistrative santions.  %e (oliitor General net onlu!es tat reson!ent annot be el! liable or atin" as ounsel or usebio -oez, ?r. in $ivil $ase No. =>15:90 /ile atin" as ounsel or te Fortuna!os a"ainst te sa'e usebio -oez, ?r. in $ivil $ase No. => 151:;. %e $ourt, ater onsi!erin" te reor!, a"rees /it te (oliitor GeneralIs +n!in"s on te 'atter. %e evi!ene resente! by reson!ent so/s tat is aetane o $ivil $ase No. =>15:90 /as /it te 4no/le!"e an! onsent o te Fortuna!os. %e aL!avit eeute! by te Fortuna!os on ?une 2;, 19<6 learly states tat tey "ave teir onsent /en reson!ent aete! te ase o usebio -oez, ?r. [AL!avit o Fortuna!os, !ate! ?une 2;, 19<6 ollo, . 19J]. #ne o te reo"nize! eetions to te rule a"ainst reresentation o onPitin" interests is /ere te lients 4no/in"ly onsent to te !ual reresentation ater ull !islosure o te ats by ounsel [$anon 6, $anons o &roessional tis $anon 15, ule 15.0;, $o!e o &roessional esonsibility]. $o'lainant also lai's tat reson!ent +le! several o'laints a"ainst i' beore te $ourt o First *nstane an! te FisalIs #Le o =uezon $ity or te sole urose o arassin" i'.  %e reor! so/s tat at te ti'e o te (oliitor GeneralIs investi"ation o tis ase, $ivil $ase No. =>1J060 /as still en!in" beore te $ourt o First *nstane o =uezon $ity, /ile te o'laints or libel 7*.(. No. <6>5912 an! erury 7*.(. No. 591; /ere alrea!y !is'isse! by te $ity Fisal or insuLieny o evi!ene an! la4 o interest, resetively [eort an! eo''en!ation, . 16>1< ollo, . :02>:0;]. %e (oliitor General oun! no basis or ol!in" tat te o'laints or libel an! erury /ere use! by reson!ent to arass o'lainant. As to $ivil $ase No. =>1J060, onsi!erin" tat it /as still en!in" resolution, te (oliitor General 'a!e no +n!in" on o'lainants lai' tat it /as a 'ere loy by reson!ent to arass i'. %e !eter'ination o te vali!ity o te o'laint in $ivil $ase No. => 1J060 /as let to te $ourt o First *nstane o =uezon $ity /ere te ase /as en!in" resolution.  %e $ourt a"rees /it te above +n!in"s o te (oliitor General, an! aor!in"ly ol!s tat tere is no basis or ol!in" tat te reson!entIs sole urose in +lin" te aore'entione! ases /as to arass o'lainant. Groun!s 6, J an! 9 alle"e! in te o'laint nee! not be !isusse! searately sine te above !isussion on te oter "roun!s suLiently over tese re'ainin" "roun!s.

 %e $ourt +n!s learly establise! in tis ase tat on our ounts te reson!ent violate! te la/ an! te rules "overnin" te on!ut o a 'e'ber o te le"al roession. (/orn to assist in te a!'inistration o ustie an! to uol! te rule o la/, e as K'iserably aile! to live u to te stan!ar!s eete! o a 'e'ber o te Bar.K [Artia"a v. illanueva, A!'. Matter No. 1J92, ?uly 29, 19JJ, 16; ($A 6;J, 6:<]. %e $ourt a"rees /it te (oliitor General tat, onsi!erin" te nature o te o@enses o''itte! by reson!ent an! te ats an! iru'stanes o te ase, reson!ent la/yer soul! be susen!e! ro' te ratie o la/ or a erio! o si 76 'onts. CEF#, +n!in" tat reson!ent Attorney a'on A. Gonzales o''itte! serious 'ison!ut, te $ourt esolve! to (D(&N reson!ent ro' te ratie o  la/ or (*Q 76 'onts e@etive ro' te !ate o is reeit o tis esolution. -et oies o tis esolution be irulate! to all ourts o te ountry or teir inor'ation an! "ui!ane, an! srea! in te ersonal reor! o Atty. Gonzales. (# #. Fernan, $.?., Narvasa, Melenio>Eerrera, $ruz, &aras, Feliiano, Ganayo, &a!illa, Bi!in an! $ortes, ??., onur. Gutierrez, ?r., (ar'iento, GriRo>A3uino, Me!ial!ea, e"ala!o, ??., too4 no art.