03 in The Matter of The Petition For Authority To Continue Use of Firm Name "Sycip

10/6/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME092
1
PETITION FOR AUTHORITY TO CONTINUE USE OF
THE FIRM NAME SYCIP, SALAZAR, FELICIANO,
HERNANDEZ & CASTILLO. LUCIANO E. SALAZAR,
FLORENTINO
P.
FELICIANO,
BENILDO
G.
HERNANDEZ. GREGORIO R. CASTILLO. ALBERTO P.
SAN JUAN, JUAN C. REYES, JR., ANDRES G.
GATMAITAN, JUSTINO H. CACANINDIN, NOEL A.
LAMAN, ETHELWOLDO E. FERNANDEZ, ANGELITO C.
IMPERIO, EDUARDO R. CENIZA, TRISTAN A.
CATINDIG, ANCHETA K. TAN, and ALICE V. PESIGAN,
petitioners.
IN THE MATTER OF THE PETITION FOR AUTHORITY
TO CONTINUE USE OF THE FIRM NAME OZAETA,
ROMULO, DE LEON, MABANTA & REYES. RICARDO
J. ROMULO, BENJAMIN M. DE LEON, ROMAN
MABANTA, JR., JOSE MA. REYES, JESUS S. J. SAYOC,
EDUARDO DE LOS ANGELES, and JOSE F.
BUENAVENTURA, petitioners.
Civil Law Partnership Firm Name Use in the partnership
name of the names of deceased partners contrary to Art. 1815 of
the Civil Code Names in a firm name of a partnership must be
living partners Reasons.Inasmuch as Sycip, Salazar, Feliciano,
Hernandez and Castillo and Ozaeta, Romulo, De Leon, Mabanta
and Reyes are partnerships, the use in their partnership names
of the names of deceased partners will run counter to Article 1815
of the Civil Code. x x x It is clearly tacit in the above provision
that names in a firm name of a partnership must either be those
of living partners and, in the case of nonpartners, should be
living persons who can be subjected to liability. In fact, Article
1825 of the Civil Code prohibits a third person from including his
name in the firm name under pain of assuming the liability of a
partner. The heirs of a deceased partner in
________________
http://www.central.com.ph/sfsreader/session/0000015798b07eb5427f7bcc003600fb002c009e/t/?o=False
1/18
10/6/2016
*
EN BANC
SUPREME COURT REPORTS ANNOTATED

In the Matter of the Petition for Authority
To Continue use of the Firm name Ozaeta, Romulo, etc.
a law firm cannot be held liable as the old members to the

creditors of a firm particularly where they are nonlawyers. Thus,
Canon 34 of the Canons of Professional Ethics prohibits an
agreement for the payment to the widow and heirs of a deceased
lawyer of a percentage, either gross or net, of the fees received
from the future business of the deceased lawyers clients, both
because the recipients of such division are not lawyers and
because such payments will not represent service or responsibility
on the part of the recipient. Accordingly, neither the widow nor
the heirs can be held liable for transactions entered into after the
death of their lawyerpredecessor. There being no benefits
accruing, there can be no corresponding liability.
Same Same Same Commercial Partnership Art. 1840 refers
to commercial partnership with goodwill, not professional
partnerships Goodwill cannot arise in a professional partnership.
Secondly, Article 1840 treats more of a commercial partnership
with a good will to protect rather than of a professional
partnership, with no saleable good, will but whose reputation
depends on the personal qualifications of its individual members.
Thus, it has been held that a saleable goodwill can exist only in a
commercial partnership and cannot arise in a professional
partnership consisting of lawyers.
Same Same Same Practice of Law Partnership for the
practice of law, nature of.A partnership for the practice of law
cannot be likened to partnerships formed by other professionals or
for business. For one thing, the law on accountancy specifically
allows the use of a trade name in connection with the practice of
accountancy. A partnership for the practice of law is not a legal
entity. It is a mere relationship or association for a particular
purpose. x x x It is not a partnership formed for the purpose of
carrying on a trade or business or of holding property. Thus, it
has been stated that the use of a nom de plume, assumed or
trade name in law practice is improper.
Same Same Same Same Right to practice law, nature of.
The right to practice law is not a natural or constitutional right
but is in the nature of a privilege or franchise. It is limited, to
2/18
10/6/2016
persons of good moral character with special qualifications duly

ascertained and certified. The right does not only presuppose in
its possessor integrity, legal standing and attainment, but also
the exercise of a special privilege, highly personal and partaking
of the nature of a public trust.
3
VOL. 92, JULY 30, 1979

Same Same Same Custom Continued use of a deceased or

former partners name in the firm names of law partnerships not
sanctioned by local custom Reason Possibility of deception upon
the public where the name of a deceased partner continues to be
used.It is true that Canon 33 does not consider as unethical the
continued use of the name of a deceased or former partner in the
firm name of a law partnership when such a practice is
permissible by local custom but the Canon warns that care should
be taken that no imposition or deception is practiced through this
use. It must be conceded that in the Philippines, no local custom
permits or allows the continued use of a deceased or former
partners name in the firm names of law partnerships. Firm
names, under our custom, identify the more active and/or more
senior members or partners of the law firm. A glimpse at the
history of the firms of petitioners and of other law firms in this
country would show how their firm names have evolved and
changed from time to time as the composition of the partnership
changed. The possibility of deception upon the public, real or
consequential, where the name of a deceased partner continues to
be used cannot be ruled out. A person in search of legal counsel
might be guided by the familiar ring of a distinguished name
appearing in a firm title.
Same Same Same Same Same Evidence Concept of
Customs To be admissible custom must be proved as a fact
Distinctions between juridical custom and social custom.Not so
in this jurisdiction where there is no local custom that sanctions
the practice. Custom has been defined as a rule of conduct formed
by repetition of acts, uniformly observed (practiced) as a social
rule, legally binding and obligatory. Courts take no judicial notice
of custom. A custom must be proved as a fact, according to the
rules of evidence. A local custom as a source of right cannot be
considered by a court of justice unless such custom is properly
established by competent evidence like any other fact. We find
such proof of the existence of a local custom, and of the elements
requisite to constitute the same, wanting herein. Merely because
3/18
10/6/2016
something is done as a matter of practice does not mean that

Courts can rely on the same for purposes of adjudication as a
juridical custom. Juridical custom must be differentiated from
social custom. The former can supplement statutory law or be
applied in the absence of such statute. Not so with the latter.
Same Same Same Practice of Law Practice of law not
considered moneymaking trade but peculiarly related to the
administration of justice.The practice of law is intimately and
peculiarly
4
SUPREME COURT REPORTS ANNNOTATED

To Continue use of the Firm name "Ozaeta, Romulo, etc."
related to the administration of justice and should not be

considered like an ordinary "moneymaking trade."
Aquino, J.: dissenting:

Civil Law Partnership Firm Name Use of firm name of
deceased partner of law firm Purpose of continued use of names of
decesed founders of law firms is a legitimate motivation
Retention of the name of the deceased partner in the law firm not
illegal per se.Obviously, the purpose of the two firms in
continuing the use of the names of their deceased founders is to
retain the clients who had customarily sought the legal services of
Attorneys Sycip and Ozaeta and the benefit from the goodwill
attached to the names of those respected and esteemed law
practitioners. That is a legitimate motivation. The retention of
their names is not illegal per se. That practice was followed before
the war by the law firm of James Ross. Notwithstanding the
death of Judge Ross, the founder of the law firm of Ross,
Lawrence, Selph and Carrascoso, his name was retained in the
frim name with an indication of the year when he died. No one
complained that the retention of the name of Judge Ross in the
firm name was illegal or unethical.
RESOLUTION
MELENCIOHERRERA, J.:
4/18
10/6/2016
Two separate Petitions were filed before this Court 1) by

the surviving partners of Atty. Alexander Sycip, who died
on May 5, 1975, and 2) by the surviving partners of Atty.
Herminio Ozaeta, who died on February 14, 1976, praying
that they be allowed to continue using, in the names of the
firms, the names of partners who had passed awy. In the
Court's Resolution of September2, 1976, both Petitions
were ordered consolidated.
Petitioners base their petitions on the following
arguments:
1. Under the law, a partnership is notprohibited from
continuing its business uns=der a firm name which
includes the name explicity sanctions the practice when it
provides in the last paragraph that:
5
VOL. 92, JULY 30, 1979

The use by the person or partnership continuing the business of
the partnership name, or the name of a deceased partner as part
thereof, shall not of itself make the individual property of the
deceased partner
liable for any debts contracted by such person or
1
partnership.
2. In regulating other professions, such as accountancy and

engineering, the legislature has authorized the adoption of
firm names without any restriction as to the use, in such
firm name, of the name of a deceased partner2 the
legislative authorization given to those engaged in the
practice of accountancya profession requiring the same
degree of trust and confidence in respect of clients as that
implicit in the relationship of attorney and clientto
acquire and use a trade name, strongly indicates that there
is no fundamental policy that is offended by the continued
use by a firm of professionals of a firm name which
includes the name of a deceased partner, at least where
such firm
name has acquired the characteristics of a trade
3
name.
3. The Canons of Professional Ethics are not
transgressed by the continued use of the name of a
deceased partner in the firm name of a law partnership
because Canon 33 of the Canons of Professional Ethics
adopted by the American Bar Association declares that:
5/18
10/6/2016
x x x The continued use of the name of a deceased or former

partner when permissible by local custom, is not unethical, but
care should be taken that
no imposition or deception is practiced
4
through this use. x x x
4. There is no possibility of imposition or deception because

the deaths of their respective deceased partners were
________________
1
See Memorandum of Salazar, et al., p. 5 see also Petition of Romulo,
et al., p. 3.
2
Citing Sec. 16A, Public Act No. 3105, as amended by Commonwealth
Act No. 342 Sec. 39, Commonwealth Act No. 294 Sec. 23, Republic Act
No. 318 Sec. 39, Republic Act No. 184.
3
Memorandum of Salazar, et al., pp. 78.
Memorandum of Salazar, et al., pp. 810 Petition of Romulo, et al.,
pp. 34.
6

wellpublicized in all newspapers of general circulation for

several days the stationeries now being used by them
carry new letterheads indicating the years when their
respective deceased partners were connected with the firm
petitioners will notify all leading national and
international law directories
of the fact of their respective
5
deceased partners deaths.
5. No local custom prohibits the continued use of a6
deceased partners name in a professional firms name
there is no custom or usage in the Philippines, or at least in
the Greater Manila Area, which recognizes that the name
of a law firm
necessarily identifies the individual members
7
of the firm.
6. The continued use of a deceased partners name in the
firm name of law partnerships has been consistently
allowed by U.S. Courts and is an accepted practice
in the
8
legal profession of most countries in the world.
The question involved in these Petitions first came
under consideration by this Court in 1953 when a law firm
in Cebu (the Deen case) continued its practice of including
in its firm name that of a deceased partner, C.D. Johnston.
The matter was resolved with this Court advising the firm
6/18
10/6/2016
to desist from including in their firm designation the name

of C. D. Johnston, who has long been dead.
The same issue was raised before this Court in 1958 as
an incident in G. R. No. L11964, entitled Register of Deeds
of Manila vs. China Banking Corporation. The law firm of
Perkins & Ponce Enrile moved to intervene as amicus
curiae. Before acting thereon, the Court, in a Resolution of
April 15, 1957, stated that it would like to be informed
why the name of Perkins is still being used although Atty.
E. A. Perkins is already dead. In a Manifestation dated
May 21, 1957, the law firm of Perkins and Ponce Enrile,
raising substantially the
________________
5
Memorandum of Salazar, et al., p. 13 Petition of Romulo, et al., p. 4.
Petition of Romulo, et al., p. 4.
Memorandum of Salazar, et al., p. 11.
Memorandum of Salazar, et al., pp. 67 and pp. 1618 Petition of
Romulo, et al., p. 5.
7
VOL. 92, JULY 30, 1979

same arguments as those now being raised by petitioners,

prayed that the continued use of the firm name Perkins &
Ponce Enrile be held proper.
On June 16, 1958, this Court resolved:
After carefully considering the reasons given by Attorneys
Alfonso Ponce Enrile and Associates for their continued use of the
name of the deceased E. G. Perkins, the Court found no reason to
depart from the policy it adopted in June 1953 when it required
Attorneys Alfred P. Deen and Eddy A. Deen of Cebu City to desist
from including in their firm designation, the name of C. D.
Johnston, deceased. The Court believes that, in view of the
personal and confidential nature of the relations between attorney
and client, and the high standards demanded in the canons of
professional ethics, no practice should be allowed which even in a
remote degree could give rise to the possibility of deception. Said
attorneys are accordingly advised to drop the name PERKINS
from their firm name.
Petitioners herein now seek a reexamination of the policy

thus far enunciated by the Court.
7/18
10/6/2016
The Court finds no sufficient reason to depart from the

rulings thus laid down.
A. Inasmuch as Sycip, Salazar, Feliciano, Hernandez
and Castillo and Ozaeta, Romulo, De Leon, Mabanta and
Reyes are partnerships, the use in their partnership
names of the names of deceased partners will run counter
to Article 1815 of the Civil Code which provides:
Art. 1815. Every partnership shall operate under a firm name,
which may or may not include the name of one or more of the
partners.
Those who, not being members of the partnership, include
their names in the firm name, shall be subject to the liability of a
partner.
It is clearly tacit in the above provision that names in a

firm name of a partnership must either be those of living
partners and, in the case of nonpartners, should be living
persons who can be subjected to liability. In fact, Article
1825 of the Civil Code prohibits a third person from
including his name in the
8

firm name under pain of assuming the liability of a

partner. The heirs of a deceased partner in a law firm
cannot he held liable as the old members to the creditors of
a firm particularly where they are nonlawyers. Thus,
Canon 34 of the Canons of Professional Ethics prohibits an
agreement for the payment to the widow and heirs of a
deceased lawyer of a percentage, either gross or net, of the
fees received from the future business of the deceased
lawyers clients, both because the recipients of such
division are not lawyers and because such payments will
not represent service or responsibility on the part of the
recipient. Accordingly, neither the widow nor the heirs can
be held liable for transactions entered into after the death
of their lawyerpredecessor. There being no benefits
accruing, there can be no corresponding liability.
Prescinding the law, there could be practical objections
to allowing the use by law firms of the names of deceased
partners. The public relations value of the use of an old
firm name can tend to create undue advantages and
disadvantages in the practice of the profession. An able
8/18
10/6/2016
lawyer without connections will have to make a name for

himself starting from scratch. Another able lawyer, who
can join an old firm, can initially ride on that old firms
reputation established by deceased partners.
B. In regards to the last paragraph of Article 1840 of the
Civil Code cited by petitioners, supra, the first factor to
consider is that it is within Chapter 3 of Title IX of the
Code entitled Dissolution and Winding Up. The Article
primarily deals with the exemption from liability in cases
of a dissolved partnership, of the individual property of the
deceased partner for debts contracted by the person or
partnership which continues the business using the
partnership name or the name of the deceased partner as
part thereof. What the law contemplates therein is a hold
over situation preparatory: to formal reorganization.
Secondly Article 1840 treats more of a commercial
partnership with a good will to protect rather than of a
professional partnership, with no saleable good will but
whose reputation depends on the personal qualifications of
its individual members. Thus, it has been held that a
seleable goodwill can
9
VOL. 92, JULY 30, 1979

exist only in a commercial partnership and cannot

arise in
9
a professional partnership consisting of lawyers.
As a general rule, upon the dissolution of a commercial
partnership the succeeding partners or parties have the right to
carry on the business under the old name, in the absence of a
stipulation forbidding it, (s)ince the name of a commercial
partnership is a partnership asset inseparable from the good will
of the firm x x x x. (60 Am Jur 2d, s 204, p. 115) (Italics supplied)
On the other hand,

x x x a professional partnership the reputation of which depends
on the individual skill of the members, such as partnerships of
attorneys or physicians, has no good will to be distributed as a
firm asset on its dissolution, however intrinsically valuable such
skill and reputation may be, especially where there is no provision
in the partnership agreement relating to good will as an asset. x x
x (ibid, s 203, p. 115) (Italics supplied)
9/18
10/6/2016
C. A partnership for the practice of law cannot be likened

to partnerships formed by other professionals or for
business. For one thing, the law on accountancy specifically
allows the use of a trade
name in connection with the
10
practice of accountancy.
A partnership for the practice of law is not a legal
entity. It is a mere relationship or association for a
particular purpose. x x x It is not a partnership formed for
the purpose
of carrying on trade or business or of holding
11
property. Thus, it has been stated that the use of a nom
de plume,12 assumed or trade name in law practice is
improper.
The usual reason given for different standards of conduct being
applicable to the practice of law from those pertaining to business
is that the law is a profession. x x x
________________
9
Seddal vs. Keating, 8 App. Div. 2d 44, 185 NYS 2d 630, affd 7 NY 2d
846, 196 NYS 2d 986, 164 NE 2d 860.

10
Section 16A, Commonwealth Act No. 342.
11
In re Crawfords Estate, 184 NE 2d 779, 783.
12
H.S. Drinker, Legal Ethics (1953), p. 206 see also Canon 33, par. 2,
Canons of Professional Ethics.

10
10

Dean Pound, in his recently published contribution to the Survey
of the Legal Profession, (The Lawyer from Antiquity to Modern
Times, p. 5) defines a profession as a group of men pursuing a
learned art as a common calling in the spirit of public service,no
less a public service because it may incidentally be a means of
livelihood.
x x x x x x x x x
Primary characteristics which distinguish the legal profession
from business are:
1. A duty of public service, of which the emolument is a
byproduct, and in which one may attain the highest
eminence without making much money.
2. A relation as an officer of court to the administration of
justice involving thorough sincerity, integrity, and
10/18
10/6/2016
reliability.
3. A relation to clients in the highest degree fiduciary.
4. A relation to colleagues at the bar characterized by
candor, fairness, and unwillingness to resort to current
business methods of advertising and encroachment
on
13
their practice, or dealing directly with their clients.
The right to practice law is not a natural or constitutional

14
right but is in the nature of a privilege or franchise. It is
limited to persons of good moral character with
special
15
qualifications duly ascertained and certified. The right
does not only presuppose in its possessor integrity, legal
standing and attainment, but also the exercise of a special
privilege, highly
personal and partaking of the nature of a
16
public trust.
D. Petitioners cited Canon 33 of the Canons17 of
Professional Ethics of the American Bar Association in
support of their petitions.
________________
13
H.S. Drinker, Legal Ethics (1953) pp. 45.
14
7 C.J.S. 708.
15
5 Am Jur 270.
16
In re Lavine, 41 P2d 161, all cited in Martin, Legal and Judicial
Ethics, Fifth Ed., p. 8.

17
Canons 1 to 32 which were adopted by the American Bar Association
in 1908 were also adopted by the Philippine Bar Association in 1917. The
American Bar Association adopted Canons 33 to 45 in 1928, Canon 46 in
1933 and Canon 47 in 1937. On April 20, 1946,
11
VOL. 92, JULY 30, 1979
11

It is true that Canon 33 does not consider as unethical the

continued use of the name of a deceased or former partner
in the firm name of a law partnership when such a practice
is permissible by local custom but the Canon warns that
care should be taken that no imposition or deception is
practiced through this use.
It must be conceded that in the Philippines, no local
custom permits or allows the continued use of a deceased or
former partners name in the firm names of law
partnerships. Firm names, under our custom, identify the
more active and/or more senior members or partners of the
11/18
10/6/2016
law firm. A glimpse at the history of the firms of

petitioners and of other law firms in this country would
show how their firm names have evolved and changed from
time to time as the composition of the partnership changed.
The continued use of a firm name after the death of one or more
of the partners designated by it is proper only where sustained by
local custom and not where by custom this purports to identify the
active members. x x x
There would seem to be a question, under the working of the
Canon, as to the propriety of adding the name of a new partner
and at the same time retaining that of a deceased partner who
was never a partner with the new one. (H.S. Drinker, op. cit.,
supra, at pp. 207208) (Italics supplied).
The possibility of deception upon the public, real or

consequential, where the name of a deceased partner
continues to be used cannot be ruled out. A person in
search of legal counsel might be guided by the familiar ring
of a distinguished name appearing in a firm title.
E. Petitioners argue that U.S. Courts have consistently
allowed the continued use of a deceased partners name in
the firm name of law partnerships. But that is so because it
is sanctioned by custom.
________________
when Canons 33 to 47 where already in effect, the Revised Constitution
of the Philippine Bar Association was approved and it provided that the
Association adopts and makes its own the Code of Ethics of the American
Bar Association. (Martin, Legal and Judicial Ethics, Fifth Ed. p. 341).
12
12

In the case of Mendelsohn v. Equitable Life Assurance

Society (33 N.Y.S. 2d 733) which petitioners Salazar, et al.
quoted in their memorandum, the New York Supreme
Court sustained the use of the firm name Alexander &
Green even if none of the present ten partners of the firm
bears either name because the practice was sanctioned by
custom and did not offend any statutory provision or
legislative policy and was adopted by agreement of the
parties. The Court stated therein:
12/18
10/6/2016
The practice sought to be proscribed has the sanction of custom

and offends no statutory provision or legislative policy. Canon 33
of the Canons of Professional Ethics of both the American Bar
Association and the New York State Bar Association provides in
part as follows: The continued use of the name of a deceased or
former partner, when permissible by local custom is not unethical,
but care should be taken that no imposition or deception is
practiced through this use. There is no question as to local
custom. Many firms in the city use the names of deceased members
with the approval of other attorneys, bar associations and the
courts. The Appellate Division of the First Department has
considered the matter and reached the conclusion that such
practice should not be prohibited. (Italics supplied)
x x x x x x x x x
Neither the Partnership Law nor the Penal Law prohibits the
practice in question. The use of the firm name herein 18is also
sustainable by reason of agreement between the partners.
Not so in this jurisdiction where there is no local custom

that sanctions the practice. Custom has been defined as a
rule of conduct formed by repetition of acts, uniformly
observed (practiced)
as a social rule, legally binding and
19
obligatory. Courts take no judicial notice of custom. A
custom must
be proved as a fact, according to the rules of
20
evidence. A local custom as a source of right cannot be
considered by a court of
________________
18
33 N.Y.S. 2d 733, 734.
19
JBL Reyes & RC Puno, Outline of Philippine Civil Law, Fourth Ed.,
Vol. 1, p. 7.
20
Article 12, Civil Code.

13
VOL. 92, JULY 30, 1979
13

justice unless such custom is properly

established by
21
competent evidence like any other fact. We find such proof
of the existence of a local custom, and of the elements
requisite to constitute the same, wanting herein. Merely
because something is done as a matter of practice does not
mean that Courts can rely on the same for purposes of
adjudication as a juridical custom Juridical custom must be
13/18
10/6/2016
differentiated from social custom. The former can

supplement statutory law or be applied in the absence of
such statute. Not so with the latter.
Moreover, judicial decisions applying
or interpreting the
22
laws form part of the legal system. When the Supreme
Court in the Deen and Perkins cases issued its Resolutions
directing lawyers to desist from including the names of
deceased partners in their firm designation, it laid down a
legal rule against which no custom or practice to the
contrary, even if proven, can prevail. This is not to speak of
our civil law which clearly ordains that
a partnership is
23
dissolved by the death of any partner. Customs which are
contrary to law,
public order or public policy shall not be
24
countenanced.
The practice of law is intimately and peculiarly related
to the administration of justice and should not be
considered like an ordinary moneymaking trade.
x x x It is of the essence of a profession that it is practiced in a
spirit of public service. A trade x x x aims primarily at personal
gain a profession at the exercise of powers beneficial to mankind.
If, as in the era of wide free opportunity, we think of free
competitive self assertion as the highest good, lawyer and grocer
and farmer may seem to be freely competing with their fellows in
their calling in order each to acquire as much of the worlds good
as he may within the limits allowed him by law. But the member
of a profession does not regard himself as in competition with his
professional brethren. He is not bartering his services as is the
artisan nor exchanging the products of his skill and learning as
the farmer sells wheat or corn. There should be no such thing as a
lawyers or physicians strike. The best
________________
21
Patriarca vs. Orate, 7 Phil. 390, 395 (1907).
22
Art. 8, Civil Code.
23
Art. 1830, Civil Code.
24
Art. 11, Civil Code.
14
14

service of the professional man is often rendered for no equivalent

or for a trifling equivalent and it is his pride to do what he does in
a way worthy of his profession even if done with no expectation of
reward. This spirit of public service in which the profession of law
14/18
10/6/2016
is and ought to be exercised is a prerequisite of sound

administration of justice according to law. The other two elements
of a profession, namely, organization and pursuit of a learned art
have their
justification in that they secure and maintain that
25
spirit.
In fine, petitioners desire to preserve the identity of their

firms in the eyes of the public must bow to legal and ethical
impediments.
ACCORDINGLY, the petitions filed herein are denied
and petitioners advised to drop the names SYCIP and
OZAETA from their respective firm names. Those names
may, however, be included in the listing of individuals who
have been partners in their firms indicating the years
during which they served as such.
SO ORDERED.
Teehankee, Concepcion, Jr., Santos, Fernandez,
Guerrero and De Castro, JJ., concur.
Fernando, C. J., and AbadSantos, J., take no part.
Barredo, J., joins Justices Antonio and Aquino in
their dissent.
Makasiar and Antonio, JJ., concur in the dissenting
opinion of Justice Ramon C. Aquino.
Aquino, J., see attached dissent
CERTIFICATION
FERNANDO C.J.:
The petitions are denied, as there are only four votes for
granting them, seven of the Justices being of the contrary
view, as explained in the plurality opinion of Justice
Ameur
________________
25
Roscoe Pound, The Lawyer From Antiquity To Modern Times, (1953),
pp. 910.
15
VOL. 92, JULY 30, 1979
15

15/18
10/6/2016
fina MelencioHerrera. It is out of delicadeza that the

undersigned did not participate in the disposition of these
petitions, as the law office of Sycip, Salazar, Feliciano,
Hernandez and Castillo started with the partnership of
Quisumbing, Sycip, and Quisumbing, the senior partner,
the late Ramon Quisumbing, being the fatherinlaw of the
undersigned, and the most junior partner then, Norberto J.
Quisumbing, being his brotherinlaw. For the record, the
undersigned wishes to invite the attention of all concerned,
and not only of petitioners, to the last sentence of the
opinion of Justice Ameurfina MelencioHerrera: Those
names [Sycip and Ozaeta] may, however, be included in the
listing of individuals who have been partners in their firms
indicating the years during which they served as such. It
represents a happy compromise.
DISSENTING OPINION
AQUINO, J.:
I dissent. The fourteen members of the law firm, Sycip,
Salazar, Feliciano, Hernandez & Castillo, in their petition
of June 10, 1975, prayed for authority to continue the use
of that firm name, notwithstanding the death of Attorney
Alexander Sycip on May 5, 1075 (May he rest in peace). He
was the founder of the firm which was originally known as
the Sycip Law Office.
On the other hand, the seven surviving partners of the
law firm, Ozaeta, Romulo, De Leon, Mabanta & Reyes, in
their petition of August 13, 1976, prayed that they be
allowed to continue using the said firm name
notwithstanding the death of two partners, former Justice
Roman Ozaeta and his son, Herminio, on May 1, 1972 and
February 14, 1976, respectively.
They alleged that the said law firm was a continuation
of the Ozaeta Law Office which was established in 1957 by
Justice Ozaeta and his son and that, as to the said law
firm, the name Ozaeta has acquired an institutional and
secondary connotation.
16
16

16/18
10/6/2016
Article 1840 of the Civil Code, which speaks of the use by

the partnership of the name of a deceased partner as part
of the partnership name, is cited to justify the petitions.
Also invoked is the canon that the continued use by a law
firm of the name of a deceased partner, when permissible
by local custom, is not unethical as long as no imposition
or deception is practised through this use (Canon 33 of the
Canons of Legal Ethics).
I am of the opinion that the petition may be granted
with the condition that it be indicated in the letterheads of
the two firms (as the case may be) that Alexander Sycip,
former Justice Ozaeta and Herminio Ozaeta are dead or
the period when they served as partners should be stated
therein.
Obviously, the purpose of the two firms in continuing
the use of the names of their deceased founders is to retain
the clients who had customarily sought the legal services of
Attorneys Sycip and Ozaeta and to benefit from the
goodwill attached to the names of those respected and
esteemed law practitioners. That is a legitimate
motivation.
The retention of their names is not illegal per se. That
practice was followed before the war by the law firm of
James Ross. Notwithstanding the death of Judge Ross the
founder of the law firm of Ross, Lawrence, Selph and
Carrascoso, his name was retained in the firm name with
an indication of the year when he died. No one complained
that the retention of the name of Judge Ross in the firm
name was illegal or unethical.
Petition denied.
Notes.To organize a corporation or a partnership that
could claim a juridical personality of its own and transact
business as such, is not a matter of absolute right but a
privilege which may be enjoyed only under such terms as
the State may deem necessary to impose. (Ang Pue & Co.
vs. Secretary of Commerce and Industry, 5 SCRA 645).
Although the heir of a partner ordinarily becomes a
limited partner for his own protection, yet the heir may
disregard it and instead elect to become a collective or
general partner,
17
VOL. 92, JULY 30, 1979
17
Verzosa vs. Magdaluyo
17/18
10/6/2016
with all the rights and obligations of one. (Goquiolay vs.

Sycip, 9 SCRA 663).
An action for the liquidation of a partnership is a
personal one, which may be brought in the place of
residence of either the plaintiff or the defendant.
(Claridades vs. Mercader, 17 SCRA 1).
A general partner cannot sell partnership property
without authority from other partners. (Goquiolay vs.
Sycip, 9 SCRA 663).
Condonation by creditor of share in partnership debt of
one partner does not increase pro rata of other partners.
(Island Sales, Inc. vs. United Pioneers Construction
Company, 65 SCRA 554.)
A partner has no obligation to account to anyone for
properties acquired after dissolution of partnership in
absence of proof he violated trust of deceased partner
during existence of partnership. (Lim Tanhu vs. Ramolete,
66 SCRA 425.)
The partnership profits distribution to the partners
should be reduced by the amounts of income tax assessed
against the partnership. (Ona vs. Commissioner of Internal
Revenue, 45 SCRA 74.)
o0o
Copyright2016CentralBookSupply,Inc.Allrightsreserved.
18/18

03 in The Matter of The Petition For Authority To Continue Use of Firm Name "Sycip

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

03 in The Matter of The Petition For Authority To Continue Use of Firm Name "Sycip

Uploaded by

Copyright:

Available Formats

10/6/2016

SUPREME COURT REPORTS ANNOTATED

a law firm cannot be held liable as the old members to the

persons of good moral character with special qualifications duly

VOL. 92, JULY 30, 1979

In the Matter of the Petition for Authority

Same Same Same Custom Continued use of a deceased or

something is done as a matter of practice does not mean that

SUPREME COURT REPORTS ANNNOTATED

related to the administration of justice and should not be

Aquino, J.: dissenting:

Two separate Petitions were filed before this Court 1) by

VOL. 92, JULY 30, 1979

In the Matter of the Petition for Authority

2. In regulating other professions, such as accountancy and

x x x The continued use of the name of a deceased or former

4. There is no possibility of imposition or deception because

See Memorandum of Salazar, et al., p. 5 see also Petition of Romulo,

Citing Sec. 16A, Public Act No. 3105, as amended by Commonwealth

Memorandum of Salazar, et al., pp. 78.

Memorandum of Salazar, et al., pp. 810 Petition of Romulo, et al.,

SUPREME COURT REPORTS ANNOTATED

wellpublicized in all newspapers of general circulation for

to desist from including in their firm designation the name

Memorandum of Salazar, et al., p. 13 Petition of Romulo, et al., p. 4.

Petition of Romulo, et al., p. 4.

Memorandum of Salazar, et al., p. 11.

Memorandum of Salazar, et al., pp. 67 and pp. 1618 Petition of

VOL. 92, JULY 30, 1979

In the Matter of the Petition for Authority

same arguments as those now being raised by petitioners,

Petitioners herein now seek a reexamination of the policy

The Court finds no sufficient reason to depart from the

It is clearly tacit in the above provision that names in a

SUPREME COURT REPORTS ANNOTATED

firm name under pain of assuming the liability of a

lawyer without connections will have to make a name for

VOL. 92, JULY 30, 1979

In the Matter of the Petition for Authority

exist only in a commercial partnership and cannot

On the other hand,

C. A partnership for the practice of law cannot be likened

846, 196 NYS 2d 986, 164 NE 2d 860.

Section 16A, Commonwealth Act No. 342.

In re Crawfords Estate, 184 NE 2d 779, 783.

Canons of Professional Ethics.

SUPREME COURT REPORTS ANNOTATED

In the Matter of the Petition for Authority

The right to practice law is not a natural or constitutional

H.S. Drinker, Legal Ethics (1953) pp. 45.

In re Lavine, 41 P2d 161, all cited in Martin, Legal and Judicial

Ethics, Fifth Ed., p. 8.

Canons 1 to 32 which were adopted by the American Bar Association

VOL. 92, JULY 30, 1979

In the Matter of the Petition for Authority

It is true that Canon 33 does not consider as unethical the

law firm. A glimpse at the history of the firms of

The possibility of deception upon the public, real or

SUPREME COURT REPORTS ANNOTATED

In the Matter of the Petition for Authority

In the case of Mendelsohn v. Equitable Life Assurance

The practice sought to be proscribed has the sanction of custom

Not so in this jurisdiction where there is no local custom