A.C. No. 724 (1969)
Topics:
Prohibited sale, legal ethics
Summary:
Disbarment proceeding instituted by Florentino del Rosario against Atty. Millado for acquiring interest in a land involved in a litigation, as such interest is prohibited under the Civil Code and the Canons of Legal Ethics.
Doctrines:
Capacity to buy and sell
Facts:
Florentino B. del Rosario seeks the disbarment of Attorney Eugenio Millado in violation of Article 1491 of the Civil Code of the Philippines and Canon No. 10 of the Canons of Legal Ethics by acquiring an interest in the land involved in a litigation. Del Rosario allergis that Atty. Millado acquired the land by reason of his profession, and that said interest was adverse to that of his client in litigation.
However, Millado avers that he acquired interest of the property before he intervened in said proceedings as counsel for one of the parties, and that his client was aware of his interest.
Issue:
Whether Millado’s acquired interest in the property violates the prohibition under the Civil Code
Ruling:
No. The general rule provided under the Civil Code and of the Canons of Legal Ethics prohibit the purchase by lawyers of any interest in the subject matter of the litigation in which they participated by reason of their profession.
However, in this case, Del Rosario failed to establish a violation of such prohibition. The Court found that Millado’s evidence is uncontradicted. While parts of the subject land were object of 2 ejectment cases (both against Mrs. Pascual, with one filed by Del Rosario), prior to the cases, Conrado Baluyot allowed Millado to construct a house in consideration of his professional services in defense of the claim thereto of the Tiburcios. Baluyot further allowed Millado to buy the property if he succeeded in securing a favorable decision in the litigation.
Thus, the records show that his alleged interest in said lots was acquired before he intervened as counsel for Mrs. Pascual in the ejectment cases against her and that said interest is not necessarily inconsistent with his client’s.