Legal Profession 2nd semester, A.Y. 2014-2015
Nakpil v. Valdez Ponente: Puno Date: March 4, 1998 Petitioner: Imeda !a"#i $es#ondent: Att%. &aros 'ades
FACTS: (ose !a"#i and &aros 'ades )ere *riends since the 1950s. Due to their *riendshi#, res#ondent +&PA-a)%er ecame the usiness consutant, a)%er and accountant o* the !a"#is. In 195, (ose !a"#i ecame interested in #urchasin/ a summer residence in Moran Moran t. , a/uio &it%. or ac" o* *unds, *unds, he re3uested res#ondent to #urchase the Moran #ro#ert% *or him. he% a/reed that res#ondent )oud "ee# the #ro#ert% in thrust *or the !a"#is unti the atter coud u% it ac". Pursuant to the a/reement, res#ondent otained 2 oans *rom a an", in the amounts o* P5, 000 and P5, 000, )hich he used to #urchase and reno6ate the #ro#ert%. ite )as then issued in res#ondent7s name. !a"#is occu#ied the summer house. hen (ose !a"#i died in 19, res#ondent acted the e/a counse and accountant o* (ose7s )ido). $es#ondent7s $es#ondent7s a) *orm, *orm, &aros (. 'ades Assoc. handed the #roceedin/ *or the settement o* (ose7s estate. estate. ;)nershi# ;)nershi# o* the Moran #ro#ert% ecame an issue in the intestate intestate #roceedin/ #roceedin/s. s. $es#onde $es#ondent nt e incuded incuded the Moran #ro#ert% #ro#ert% in the caims a/ainst the estate the amounts P5" and P5" )hich res#ondent re#resented as com#ainant7s husand7s oans a##ied ?#roa% *or the #urchase o* a house and ot in Moran@ &on*ict &on*ict o* interestinterest- $es#ondent7 $es#ondent7ss a) *irm *ied the #etition #etition *or the settement settement o* her husand7s husand7s estate estate in court, court, )hie res#ondent7s auditin/ *irm acted as accountant o* oth the estate and t)o o* its creditors. • •
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&I dismissed the action *or recon6e%ance &A re6ersed the tria court. $es#ondent )as the asoute o)ner o* the Moran #ro#ert%. ; sumitted re#ort on disarment com#aint: !; trust a/reement et)een !a"#i and res#ondent $es#ondent )as the asoute o)ner o* the #ro#ert% !o con*ict o* interest $ecommendation: dismissa o* administrati6e case • • • •
IB>1: WON respondent violated the Code of Professional esponsi!ilit" #CANON $%&. ' ()S.
*)L+,AT-O$: +1 In 6ioation o* the the trust a/reement, a/reement, res#ondent caimed asoute o)nershi# o)nershi# o6er the #ro#ert% and re*used re*used to se the #ro#ert% to com#ainant a*ter the death o* (ose !a"#i. $es#ondent initia% ac"no)ed/ed and res#ected the trust nature o* the Moran #ro#ert%. #ro#ert%. $es#ondent e
atac, >nda%a, Cin/at, antos, aturnino, 'ia*uerte, Yee
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Legal Profession 2nd semester, A.Y. 2014-2015
o ma"e thin/s )orse, res#ondent throu/h his accountin/ *irm, char/ed t)o oans a/ainst the estate as iaiit% *or the #urchase and reno6ation o* the #ro#ert% he caimed *or himse*.
-SS/): WON respondent is g0ilt" of representing 1onfli1ting interests. ' ()S. *)L+,AT-O: 2eneral 0le: An attorne% cannot re#resent ad6erse interests. )31eption: $e#resentation o* con*ictin/ interests ma% e ao)ed )here the #arties consent to the re#resentation, a*ter *u discosure o* the *acts. Discosure aone is not enou/h *or the c ients must /i6e their in*ormed consent to such re#resentation. he a)%er must e<#ain to his cients the nature and e
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$es#ondent denied that he re#resented com#ainant in the intestate #roceedin/s. =e #oints out that it )as one Att% Perci6a &endana, )ho *ied the case in court. =o)e6er, that is eside the #oint. $es#ondent acted as counse and accountant o* com#ainant a*ter the death o* (ose !a"#i. hen he trans*erred the Moran #ro#ert% to his cor#oration, the intestate #roceedin/s )as s ti #endin/ in court. =is de*ense that com#ainant "ne) that his a) *irm )as e/a counse o* the estate and that his accountin/ *orm )as the auditor o* oth the estate and the t)o caimants a/ainst it )as not ta"en % the &ourt. here is nothin/ in the records to sho) that res#ondent or his a) *irm e<#ained the e/a situation and its conse3uences to com#ainant.
$es#ondent is a &PA-a)%er acti6e% #artici#atin/ in oth #ro*essions. =e is the senior #artner in his a) and accountin/ *irms. &om#ainant is not char/in/ res#ondent )ith reach o* ethics *or ein/ the common accountant o* the estate and the t)o creditors. =e is char/ed *or ao)in/ his accountin/ *irm to re#resent t)o creditors o* the estate, and at the same time ao)in/ his a) *irm to re#resent the estate in the #roceedin/s )here these caims )ere #resented. DIP;: us#ended *rom the #ractice o* a) *or ;!> Y>A$.
atac, >nda%a, Cin/at, antos, aturnino, 'ia*uerte, Yee
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