SECOND DIVISION

[A.C. No. 6504. August 9, 2005.]

GEORGE C. SOLATA, complainant, vs. ATTYS. OSCAR A.

IOCETES and JOSE C. CAMAO, respondents.

DECISIO

TIGA, J : p

The present case focuses on a critical aspect of the lawyer-client relationship

— the duty of loyalty. The fidelity lawyers owe their clients is traditionally
characterized as "undivided." This means that lawyers must represent their clients and
serve their needs without interference or impairment from any conflicting interest.

This administrative case traces its roots from the manner by which Attys. Jose
C. Camano and Oscar A. Inocentes responded to the efforts of complainant, George
C. Solatan, to lease a certain Quezon City apartment belonging to the attorneys'
clients. On the basis of acts branded by the Integrated Bar of the Philippines (IBP) as
"bordering on technical extortion," accepting funds and giving unsolicited advice to
an adverse party, and casting doubts as to the procedure of levy, the IBP resolved 1(1)
to recommend the suspension of Atty. Camano from the practice of law for one (1)
year. It likewise recommended the reprimand of Atty. Inocentes, whom it held liable
for the aforementioned acts of his associate, under the principle of command
responsibility.

Only Atty. Inocentes has elected to contest the resolution of the IBP, as he
questions the propriety of his being held administratively liable for acts done by Atty.
Camano. 2(2) However, the recommendation to suspend Atty. Camano shall also be
passed upon by virtue of Section 12, Rule 139-B of the Rules of Court. 3(3)

Attys. Inocentes and Camano were both engaged in the practice of law under
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 the firm name of Oscar Inocentes and Associates Law Office. Atty. Inocentes held
office in his home located at No. 19 Marunong St., Central District, Quezon City,
while Atty. Camano was stationed at an "extension office" of the firm located in
3rd/F, 956 Aurora Blvd., Quirino Dist., Quezon City.

The Oscar Inocentes and Associates Law Office was retained by spouses
Andres and Ludivina Genito (spouses Genito), owners of an apartment complex (the
Genito Apartments) located at 259 Tandang Sora cor. Visayas Avenue, Quezon City,
when the Genito Apartments were placed under sequestration by the Presidential
Commission on Good Government (PCGG) on 9 July 1986. 4(4) The law office
represented the spouses Genito before the PCGG and the Sandiganbayan, and
subsequently, with authority from the PCGG. 5(5) in ejectment cases against
non-paying tenants occupying the Genito Apartments. 6(6)

Complainant's sister, Gliceria Solatan, was a tenant in Door 10, Phase B of the
Genito Apartments. It appears from the records that Gliceria Solatan left for the
United States in 1986, and since then, the apartment was either intermittently used by
members of her family or placed under the charge of caretakers. 7(7) In August 1987,
a complaint for ejectment for non-payment of rentals was filed against Gliceria
Solatan. 8(8) On 3 March 1988, in a judgment by default, a Decision 9(9) was
rendered ordering Gliceria Solatan to vacate the premises of the apartment, pay the
spouses Genito the amount of Thirty Thousand Six Hundred Pesos (P30,600.00) as
unpaid rentals from February 1986 to July 1987 with interest at 24% per annum from
20 August 1987 until the premises are vacated, Ten Thousand Pesos (P10,000.00) as
attorney's fees, and costs of the suit. 10(10)

Complainant was occupying the subject apartment when he learned of the

judgment rendered against his sister. On 10 May 1988, prior to the implementation of
a writ to execute the judgment, complainant and his mother, Elvira Solatan,
approached Atty. Inocentes at his home office. Complainant informed Atty. Inocentes
of his desire to arrange the execution of a lease contract by virtue of which
complainant would be the new lessee of the apartment and thus make possible his
continued stay therein. Atty. Inocentes referred complainant and his mother to his
associate, Atty. Camano, the attorney in charge of the ejectment cases against tenants
of the Genito apartments. After the exchange, complainant went to Atty. Camano at
the satellite office of Atty. Inocentes's firm. From here on out, events quickly turned
sour. Different versions of subsequent events were presented. The facts reproduced
hereunder are by and large culled from the findings of the IBP Investigating
Commissioner, Siegfred B. Mison. cEASTa

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 During the meeting with Atty. Camano, a verbal agreement was made in which
complainant and his mother agreed to pay the entire judgment debt of Gliceria
Solatan, including fifty percent of the awarded attorney's fees and One Thousand Six
Hundred Pesos (P1,600.00) as costs of suit provided that Atty. Camano would allow
complainant's continued stay at Door 10, Phase B of the Genito Apartments. As partial
compliance with the agreement, complainant issued in the name Atty. Camano a
check for Five Thousand Pesos (P5,000.00) representing half of the P10,000.00
attorney's fees adjudged against complainant's sister.

Complainant and his mother failed to make any other payment. Thus, the
sheriff in coordination with Atty. Camano and some policemen, enforced the writ of
execution on 22 June 1988 and levied the properties found in the subject apartment.
An attempt at renegotiation took place at the insistence of complainant, resulting in
Atty. Camano's acquiescence to release the levied properties and allowing
complainant to remain at the apartment, subject to the latter's payment of costs
incurred in enforcing the writ of execution and issuance of postdated checks
representing installment rental payments. Complainant, thus, issued four (4) checks
drawn on Far East Bank and Trust Company dated the fifteenth (15th) of July,
August, September, and October 1988 each in the amount of Three Thousand Four
Hundred Pesos (P3,400.00). 11(11) Half of the amount represented complainant's
monthly rental, while the other half, a monthly installment for the payment of Gliceria
Solatan's judgment debt.

On 28 June 1988, acting on the advice of Atty. Camano, complainant presented

an Affidavit of Ownership to the sheriff who then released the levied items to
complainant. However, a orthern Hill 3-burner gas stove was not returned to
complainant. The stove was in fact kept by Atty. Camano in the unit of the Genito
Apartments wherein he temporarily stayed 12(12) and, thereafter, turned over the
same to a certain Recto Esberto, caretaker of the Genito Apartments. 13(13)

On 1 August 1988, complainant filed the instant administrative case for

disbarment against Atty. Inocentes and Atty. Camano. 14(14) After formal
investigation, and despite conflicting testimonies on the tenor and content of
agreements and conversations, several disturbing facts were revealed to have been
uncontroverted — Atty. Camano's acceptance from complainant of attorney's fees and
the costs of implementing the writ of execution, possession of complainant's levied
orthern Hill oven, and advice to complainant on how to recover the latter's levied
items. Thus, IBP Investigating Commissioner Siegfred B. Mison, made the following

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 recommendations, viz:

Based on the facts revealed in their respective Memoranda, the penalty

of six (6) months suspension is therefore recommended to be imposed on
Respondent Camano for committing the following acts that adversely reflects
(sic) on his moral fitness to continue to practice law[:]

1. He received money (P5,000 then P1,000) from the adverse party

purportedly for attorneys fees and for reimbursement of sheriff's
expenses. Such act of accepting funds from the adverse party in the
process of implementing a writ, borders on technical extortion
particularly in light of the factual circumstances as discussed.

2. He gave unsolicited advice to the adverse party in suggesting the

filing of an Affidavit of Ownership over the levied properties, a
suggestion evidently in conflict with [the interest of] his own client,
supposedly, the Genitos.

3. He failed to turn over the gas stove to either party thereby

casting doubt as to the procedure of the levy.

Based on the facts revealed, the penalty of Reprimand is therefore

recommended to be imposed on Respondent Inocentes for committing the
following acts that adversely reflects (sic) in his fitness to continue to practice
law[:]

1. He allowed Camano to perform all the aforementioned acts,

either by negligence or inadvertence which are inimical to the legal
profession. He cannot claim ignorance or feign innocence in this
particular transaction considering that the Complainants themselves
went to his office on different occasions regarding this transaction.
Ultimately, he exercised command responsibility over the case and
had supervisory control over Respondent Camano inasmuch as he
received periodic reports either by phone or in person from the
latter.

2. The letter disclaimer executed by Mr. Genito filed by Respondent

Inocentes does not mitigate any liability whatsoever since the
wrongdoing done against the profession cannot be undone by a mere
letter from a third party. 15(15) (Emphasis supplied.)

The IBP Board of Governors approved the aforequoted recommendation, with

the modification of an increase in Atty. Camano's period of suspension from six (6)
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 months to one (1) year, in a resolution stating, viz:

RESOLVED to ADOPT and APPROVE, as it is hereby ADOPTED and

APPROVED, the Report and Recommendation of the of the Investigating
Commissioner . . . finding the recommendation fully supported by the evidence
on record and the applicable laws and rules, with modification, and for
accepting funds from adverse party in the process of implementing a writ
borders on technical extortion, for giving unsolicited advice to the adverse party
a suggestion evidently in conflict with [the interest of] his own client and for
casting doubts to the procedure of the levy, Atty. Jose C. Camano is hereby
SUSPENDED from the practice of law for one (1) year, likewise, Atty. Oscar
Inocentes is hereby REPRIMANDED for he exercised command responsibility
over the case inasmuch as he received periodic reports either by phone or in
person. 16(16)

The IBP held that Atty. Camano's act of giving unsolicited advice to
complainant is a culpable act because the advice conflicted with the interest of his
clients, the spouses Genito. The rule on conflicting interests, established in Rule 15.03
of the Code of Professional Responsibility, deals with conflicts in the interests of an
attorney's actual clients among themselves, of existing and prospective clients, and of
the attorney and his clients. It states that a lawyer shall not represent conflicting
interests except by written consent of all concerned given after a full disclosure of the
facts. SEcAIC

The relation of attorney and client begins from the time an attorney is retained.
17(17) An attorney has no power to act as counsel or legal representative for a person
without being retained. 18(18) To establish the professional relation, it is sufficient
that the advice and assistance of an attorney are sought and received in any manner
pertinent to his profession. 19(19) At the time the questioned statement was made,
Atty. Camano had called the police to restrain complainant from surreptitiously
pulling out the levied properties from the apartment complex by virtue of which the
latter was brought to the police station for questioning. The statement was made in
response to complainant's insistence at the police station that the levied properties
were owned by him and not by the judgment debtor. 20(20) No employment relation
was offered or accepted in the instant case.

More fitting, albeit, to the mind of this Court, inapplicable to the case, is Canon
15 of the same Code which encompasses the aforementioned rule. In general terms,
Canon 15 requires lawyers to observe loyalty in all dealings and transactions with
their clients. 21(21) Unquestionably, an attorney giving legal advice to a party with an
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 interest conflicting with that of his client resulting in detriment to the latter may be
held guilty of disloyalty. However, far be it that every utterance of an attorney which
may have afforded an individual some relief adverse to the former's client may be
labeled as a culpable act of disloyalty. As in every case, the acts alleged to be culpable
must be assessed in light of the surrounding circumstances.

While the levy was made on chattel found in the apartment of the judgment
debtor, Gliceria Solatan, the complainant was the true owner of the properties.
Consequently, the latter had a right to recover the same. In fact, considering the
circumstances, the questioned statement is in consonance with complainant's foremost
duty to uphold the law as an officer of the court. The statement of Atty. Camano in
such a context should not be construed by this Court as giving advice in conflict
against the interest of the spouses Genito as in fact the latter have no interest over the
incorrectly levied properties.

We, thus, note that the act of informing complainant that the levied properties
would be returned to him upon showing proof of his ownership thereof may hint at
infidelity to the interest of the spouses Genito, but, in this circumstance, lacks the
essence of double dealing and betrayal of the latter's confidence so as to deserve
outright categorization as infidelity or disloyalty to his clients' cause. Nonetheless,
after having noted the foregoing, we remain convinced with the propriety of meting
the one (1) year suspension from the practice of law on Atty. Camano, as
recommended by the IBP, based on his other culpable acts which tend to degrade the
profession and foment distrust in the integrity of court processes.

On the other hand, Atty. Inocentes seeks to distance himself from the events
that transpired and the reprimand resulting therefrom by asserting that he was
incorrectly punished for Atty. Camano's acts when his mere participation in the fiasco
was to refer complainant and his mother to Atty. Camano.

However, it is precisely because of such participation, consisting as it did of

referring the complainant to his associate lawyer, that Atty. Inocentes may be held
administratively liable by virtue of his associate's unethical acts. His failure to
exercise certain responsibilities over matters under the charge of his law firm is a
blameworthy shortcoming. The term "command responsibility," as Atty. Inocentes
suggests, has special meaning within the circle of men in uniform in the military;
however, the principle does not abide solely therein. It controls the very circumstance
in which Atty. Inocentes found himself.

We are not unaware of the custom of practitioners in a law firm of assigning

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 cases and even entire client accounts to associates or other partners with limited
supervision, if at all. This is especially true in the case of Attys. Inocentes and
Camano who, from the records, both appear to be seasoned enough to be left alone in
their work without requiring close supervision over each other's conduct and work
output. However, let it not be said that law firm practitioners are given a free hand to
assign cases to seasoned attorneys and thereafter conveniently forget about the case.
To do so would be a disservice to the profession, the integrity and advancement of
which this Court must jealously protect. HScCEa

That the firm name under which the two attorneys labored was that of Oscar
Inocentes and Associates Law Office does not automatically make Atty. Inocentes the
default lawyer acting in a supervisory capacity over Atty. Camano. It did, however,
behoove Atty. Inocentes to exert ordinary diligence to find out what was going on in
his law firm. It placed in Atty. Inocentes the active responsibility to inquire further
into the circumstances affecting the levy of complainant's properties, irrespective of
whether the same were in fact events which could possibly lead to administrative
liability. Moreover, as name practitioner of the law office, Atty. Inocentes is tasked
with the responsibility to make reasonable efforts to ensure that all lawyers in the firm
should act in conformity to the Code of Professional Responsibility. 22(22) It is not
without reason or consequence that Atty. Inocentes's name is that which was used as
the official designation of their law office.

With regard to the actual existence of Atty. Inocentes's supervisory capacity

over Atty. Camano's activities, the IBP Investigating Commissioner based the same on
his finding that Atty. Inocentes received periodic reports from Atty. Camano on the
latter's dealings with complainant. This finding is the linchpin of Atty. Inocentes's
supervisory capacity over Atty. Camano and liability by virtue thereof.

Law practitioners are acutely aware of the responsibilities that are naturally
taken on by partners and supervisory lawyers over the lawyers and non-lawyers of the
law office. We have held that lawyers are administratively liable for the conduct of
their employees in failing to timely file pleadings. 23(23) In Rheem of the Philippines,
Inc., et al. v. Zoilo R. Ferrer, et al., 24(24) partners in a law office were admonished
for the contemptuous language in a pleading submitted to court despite, and even due
to, the fact that the pleading was not passed upon by any of the partners of the office.
We held therein that partners are duty bound to provide for efficacious control of
court pleadings and other court papers that carry their names or the name of the law
firm. 25(25)

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 We now hold further that partners and practitioners who hold supervisory
capacities are legally responsible to exert ordinary diligence in apprising themselves
of the comings and goings of the cases handled by the persons over which they are
exercising supervisory authority and in exerting necessary efforts to foreclose the
occurrence of violations of the Code of Professional Responsibility by persons under
their charge. Nonetheless, the liability of the supervising lawyer in this regard is by no
means equivalent to that of the recalcitrant lawyer. The actual degree of control and
supervision exercised by said supervising lawyer varies, inter alia, according to office
practice, or the length of experience and competence of the lawyer supervised. Such
factors can be taken into account in ascertaining the proper penalty. Certainly, a
lawyer charged with the supervision of a fledgling attorney prone to rookie mistakes
should bear greater responsibility for the culpable acts of the underling than one
satisfied enough with the work and professional ethic of the associate so as to leave
the latter mostly to his/her own devises.

While Atty. Camano's irregular acts perhaps evince a need for greater
supervision of his legal practice, there is no question that it has been Atty. Inocentes'
practice to allow wide discretion for Atty. Camano to practice on his own. It does
constitute indifference and neglect for Atty. Inocentes to fail to accord even a token
attention to Atty. Camano's conduct which could have brought the then impending
problem to light. But such is not equivalent to the proximate responsibility for Atty.
Camano's acts. Moreover, it appears from the records that Atty. Inocentes is a former
judge and a lawyer who, as of yet, is in good standing and it is the first time in which
Atty. Inocentes has been made to answer vicariously for the misconduct of a person
under his charge. An admonition is appropriate under the circumstances.

WHEREFORE, PREMISES CONSIDERED, the Petition is hereby

GRANTED. The Resolution dated 16 April 2004 is AFFIRMED in respect of the
sanction meted out on Atty. Camano. Atty. Inocentes is hereby ADMONISHED to
monitor more closely the activities of his associates to make sure that the same are in
consonance with the Code of Professional Responsibility with the WARNING that
repetition of the same or similar omission will be dealt with more severely.

No pronouncement as to costs. IDASHa

SO ORDERED.

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 Endnotes

1 (Popup - Popup)
1. In its Resolution No. XVI-2004-231 dated 16 April 2004 for CBD Case No. 019
entitled George C. Solatan v. Atty. Oscar A. Inocentes and Atty. Jose C. Camano,
Rollo, pp. 703-704.

2 (Popup - Popup)
2. Petition dated 28 July 2004, Rollo, p. 712-724.

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3. Sec. 12. Review and decision by the Board of Governors. — . . . (b) If the Board, by
the vote of a majority of its total membership, determines that the respondent should
be suspended from the practice of law or disbarred, it shall issue a resolution setting
forth its findings and recommendations which, together with the whole record of the
case, shall forthwith be transmitted to the Supreme Court for final action.

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4. Rollo, p. 6. See also p. 25.

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5. Id. at 79.

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6. Id. at 25, 70, and 78. See also p. 78.

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7. Id. at 409-414.

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 8. Entitled "Sps. Andres V. Genito & Ludivina L. Genito v. Gliceria Solatan," docketed
as Civil Case No. 51745.

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9. Dated 3 March 1988 rendered by Judge Ricardo A. Buenviaje of MTC Quezon City,
Branch 38.

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10. Rollo, pp. 77-78.

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11. See Rollo, p. 58.

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12. Id. at 581 and 624.

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13. Id. at 581 and 624.

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14. Id. at 136-150.

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15. Id. at 708-709.

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16. Supra note 1 at 703.

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 17 (Popup - Popup)
17. RUBEN E. AGPALO, COMMENTS ON THE CODE OF PROFESSIONAL
RESPONSIBILITY AND THE CODE OF JUDICIAL CONDUCT, 2001 ed., p. 138,
citing Stone v. Bank of Commerce, 174 U.S. 412 (1899).

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18. Id. at 138-39.

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19. Id. at 139.

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20. Rollo, p. 578.

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21. Canon 15 — A lawyer shall observe candor, fairness and loyalty in all his dealings
and transactions with his clients.

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22. Many jurisdictions in the United States have adopted Section 5.1 of the American Bar
Association's Model Rules of Professional Conduct, which relevantly requires, first,
that partners make reasonable efforts to ensure that the firm has measures in effect to
assure that all lawyers in the form conform to the rules of professional conduct, and
second, that a lawyer having direct supervisory authority over another lawyer make
reasonable efforts to ensure that the other lawyer conforms to these rules. This
explicit responsibility was incorporated by some states in the late 1990's but was in
theory already being applied by several jurisdictions. See ZITRIN, RICHARD A.,
AND LANGFORD, CAROL M., LEGAL ETHICS IN THE PRACTICE OF LAW,
2ND Ed., p. 658; see also http:www.mass.gov/obcbbo/supervise.htm.

23 (Popup - Popup)

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 23. Adaza v. Barinaga, 192 Phil. 198 (1981).

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24. G.R. No. L-22979, 26 June 1967, 20 SCRA 441.

25 (Popup - Popup)
25. Id. at 446.

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