ZALAMEA vs. De Guzman, A.C. No.

7387 November 7, 2016

Facts: Complinant seeks the legal advised of the property of their ill mother. And
sometimes respondent help them to pay their loan in the bank, however,
complinant failed to pay the bank, so the wife of the lawyer paid for it. And they
became the owner. Comes now, complinant filed an disbarment case against
respondent lawyer, for the reason that he cannot aquire said property because of
prohibition of lawyers- client relationship, and a violation under Article 1491 of the
Civil Code, lawyers are prohibited to acquire by purchase, even at a public or judicial
auction, either in person or through the mediation of another, their client's property
and rights in litigation, hence:

ART. 1491. The following persons cannot acquire by purchase, even at a public or
judicial auction, either in person or through the mediation of another:

5. Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and
other officers and employees connected with the administration of justice, the
property and rights in litigation or levied upon an execution before the court within
whose jurisdiction or territory they exercise their respective functions; this
prohibition includes the act of acquiring by assignment and shall apply to lawyers,
with respect to the property and rights which may be the object of any litigation in
which they may take part by virtue of their profession.

6. Any others specially disqualified by law.

Issue: Whether or not respondent lawyer violates such prohibition?

Held : The prohibition which rests on considerations of public policy and interests
is intended to curtail any undue influence of the lawyer upon his client on account
of his fiduciary and confidential relationship with him. De Guzman could not have
possibly exerted such undue influence, as a lawyer, upon the Zalameas, as his
clients. In fact, it was Manuel Enrique who approached the Spouses De Guzman and
asked them if they would be willing to become business partners in a lechon
business. It was also Manuel Enrique who turned to De Guzman for help in order to
reacquire the already foreclosed Speaker Perez property. They had agreed that De
Guzman would simply pay the required downpayment to BDO and EMZEE would pay
the remaining balance in installment. And when EMZEE continued suffering losses,
Angel took care of the monthly amortizations so as not to lose the property.

Clearly, the re!ationship between the Spouses De Guzman and the Zalamea
brothers is actually one of business partners rather than that of a lawyer and client.
Atty. De Guzman's acquisition of the Speaker Perez property was a valid
consequence of a business deal, not by reason of a lawyer-client relationship, for
which he could not be penalized by the Court. De Guzman and his wife are very well
allowed by law to enter into such a transaction and their conduct in this regard was
not borne out to have been attended by any undue influence, deceit, or
misrepresentation.

Doctrine

An attorney may be disbarred or suspended for any violation of his oath or of his
duties as an attorney and counselor, which include statutory grounds enumerated in
Section 27,3 Rule 138 of the Rules of Court.

Indeed, the purchase by a lawyer of his client's property or interest in litigation is a

breach of professional ethics and constitutes malpractice. The persons mentioned in
Article 1491 are prohibited from purchasing said property because of an existing
trust relationship. A lawyer is disqualified from acquiring by purchase the property
and rights in litigation because of his fiduciary relationship with such property and
rights, as well as with the client. The very first Canon of the Code of Professional
Responsibility5 provides that "a lawyer shall uphold the Constitution, obey the laws
of the land and promote respect for law and legal process." Canon 17 states that "a
lawyer owes fidelity to the cause of his client and he shall be mindful of the trust
and confidence reposed in him, while Canon 16 provides that "a lawyer shall hold in
trust all moneys and properties of his client that may come into his possession."
Further, Section 3, Rule 13 8 of the Revised Rules of Court requires every lawyer to
take an oath to obey the laws as well as the legal orders of the duly constituted
authorities. And for any violation of this oath, a lawyer may be suspended or
disbarred by the Court. All of these underscore the role of the lawyer as the
vanguard of our legal system. The transgression of any provision of law by a lawyer
is a repulsive and reprehensible act which the Court will never countenance.