HOME GUARANTY CORP. V. TAGAYUNA [A.C. No. 13131, February 23, 2022]

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HOME GUARANTY CORP. V. TAGAYUNA

A.C. No. 13131. February 23, 2022

SECOND DIVISION, HERNANDO J.

 

Conflict of Interest, Retaining Lien 

DOCTRINE: Lawyers shall act in the best interests of their clients and to avoid situations where their professional judgment and loyalty may be compromised. Lawyers must act with utmost professionalism and prioritize the interests of their clients above their own.

 

Home Guaranty Corporation (HGC) filed a complaint for disbarment before the Integrated Bar of the Philippines (IBP) against respondents Atty. Tagayuna and Atty. Panopio, partners of the Soliven, Tagayuna, Gangan, Panopio & De Pano Law Firm, alleging that they violated the conflict of interest rule and failed to account for funds and properties. HGC claimed that the respondents, while representing HGC in a collection retainership agreement with E.S.P. Collection Agency, also represented Blue Star Construction and Development Corporation (BSCDC) in an arbitration case against HGC. HGC accused respondents of refusing to return certain documents after the termination of the retainership agreement.

The IBP Commission on Bar Discipline recommended a six-month suspension for the respondents due to the conflict of interest violation.

 

Whether or not the lawyer violated the prohibition against representing conflicting interests.

 

NO. The Court partially adopts the findings and recommendation of the IBP. The complaint alleged a violation of the conflict of interest rule, but the Court found that respondents did not represent conflicting interests. It was established that the Law Firm was no longer retained as counsel at the time of the filing of the arbitration case. Additionally, the complaint alleged unlawful withholding of documents, and the Court found this charge partly meritorious as respondents retained some documents after the termination of their retainership agreement with the client, HGC. The Court reprimanded respondents and warned of a heavier penalty for a repetition of a similar offense.

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