THIRD DIVISION

[A.C. No. 9537. June 10, 2013.]

[Formerly CBD Case No. 09-2489]

DR. TERESITA LEE , complainant, vs . ATTY. AMADOR L. SIMANDO ,

respondent.

DECISION

PERALTA , J : p

Before us is a Petition for Disbarment 1 dated July 21, 2009 led by Dr. Teresita Lee
(Dr. Lee) against respondent Atty. Amador L. Simando (Atty. Simando) before the
Integrated Bar of the Philippines-Commission on Bar Discipline (IBP-CBD), docketed as
CBD Case No. 09-2489, now A.C. No. 9537, for violation of the Code of Judicial Ethics of
Lawyers.
The facts of the case, as culled from the records, are as follows:
Atty. Simando was the retained counsel of complainant Dr. Lee from November
2004 until January 8, 2008, with a monthly retainer fee of Three Thousand Pesos
(Php3,000.00). 2
Sometime during the above-mentioned period, Atty. Simando went to see Dr. Lee
and asked if the latter could help a certain Felicito M. Mejorado (Mejorado) for his needed
funds. He claimed that Mejorado was then awaiting the release of his claim for informer's
reward from the Bureau of Customs. Because Dr. Lee did not know Mejorado personally
and she claimed to be not in the business of lending money, the former initially refused to
lend money. But Atty. Simando allegedly persisted and assured her that Mejorado will pay
his obligation and will issue postdated checks and sign promissory notes. He allegedly
even offered to be the co-maker of Mejorado and assured her that Mejorado's obligation
will be paid when due. Atty. Simando was quoted saying: "Ipapahamak ba kita, kliyente
kita"; "Sigurado ito, kung gusto mo, gagarantiyahan ko pa ito, at pipirma din ako"; "Isang
buwan lang, at hindi hihigit sa dalawang buwan ito, bayad ka na." 3 AIHDcC

Due to Atty. Simando's persistence, his daily calls and frequent visits to convince Dr.
Lee, the latter gave in to her lawyer's demands, and nally agreed to give Mejorado
sizeable amounts of money. Respondent acted as co-maker with Mejorado in various cash
loans, to wit: 4
Date: Amount
November 11, 2006 Php400,000.00
November 24, 2006 200,000.00
November 27, 2006 400,000.00
December 7, 2006 200,000.00
December 13, 2006 200,000.00
——————————————
Total: Php1,400,000.00
=============
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 When the said obligation became due, despite Dr. Lee's repeated demands,
Mejorado failed and refused to comply with his obligation. Since Atty. Simando was still
her lawyer then, Dr. Lee instructed him to initiate legal action against Mejorado. Atty.
Simando said he would get in touch with Mejorado and ask him to pay his obligation
without having to resort to legal action. However, even after several months, Mejorado still
failed to pay Dr. Lee, so she again asked Atty. Simando why no payment has been made
yet. Dr. Lee then reminded Atty. Simando that he was supposed to be the co-maker of the
obligation of Mejorado, to which he replied: "Di kasuhan din ninyo ako!" 5
Despite complainant's repeated requests, respondent ignored her and failed to bring
legal actions against Mejorado. Thus, in January 2008, complainant was forced to
terminate her contract with Atty. Simando.
Subsequently, complainant's new lawyer, Atty. Gilbert Morandarte, sent a demand
letter dated June 13, 2008 to Atty. Simando in his capacity as the co-maker of some of the
loans of Mejorado.
In his Letter dated June 30, 2008, respondent denied his liability as a co-maker and
claimed that novation had occurred because complainant had allegedly given additional
loans to Mejorado without his knowledge. 6
Dr. Lee then accused Atty. Simando of violating the trust and con dence which she
gave upon him as her lawyer, and even took advantage of their professional relationship in
order to get a loan for his client. Worse, when the said obligation became due, respondent
was unwilling to help her to favor Mejorado. Thus, the instant petition for disbarment
against Atty. Simando. ADECcI

On August 12, 2009, the IBP-CBD ordered respondent to submit his Answer on the
complaint against him. 7
In his Answer 8 dated September 17, 2009, Atty. Simando claimed that complainant,
who is engaged in lending money at a high interest rate, was the one who initiated the
financial transaction between her and Mejorado. He narrated that complainant asked him if
it is true that Mejorado is his client as she found out that Mejorado has a pending claim for
informer's reward with the Bureau of Customs. When he a rmed that Mejorado is his
client, complainant signi ed that she is willing to give money for Mejorado's nancial
needs while awaiting for the release of the informer's reward. Eventually, parties agreed
that Mejorado will pay double the amount and that payment shall be made upon receipt by
Mejorado of the payment of his claim for informer's reward. 9
Meanwhile, Atty. Simando stressed that Dr. Lee gave Mejorado a total of
Php700,000.00 as an investment but he signed as co-maker in all the receipts showing
double the amount or Php1,400,000.00. 1 0
Respondent claimed that complainant is a money-lender exacting high interest rates
from borrowers. 1 1 He narrated several instances and civil cases where complainant was
engaged in money-lending where he divulged that even after defendants had already paid
their loan, complainant still persists in collecting from them. 1 2 Respondent asserted that
he knew of these transactions, because he was among the four lawyers who handled
complainant's case. 1 3
Respondent averred that from the time that Mejorado and Dr. Lee had become close
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 to each other, the latter had given Mejorado additional investments and one (1) Silverado
Pick-up at the price of P500,000.00 and fty (50) sacks of old clothings. He claimed that
the additional investments made by Dr. Lee to Mejorado were given without his
knowledge.
Atty. Simando further alleged that with Dr. Lee's investment of around P2 Million
which included the Silverado Pick-up and the fty (50) sacks of old clothings, the latter
required Mejorado to issue ve (5) checks with a total value of P7,033,500.00, an amount
more than the actual value which Mejorado received. 1 4 DCESaI

Atty. Simando added that while Dr. Lee and Mejorado agreed that the issued checks
shall be presented to the bank only upon payment of his informer's reward, Dr. Lee
presented the checks to the bank despite being aware that Mejorado's account had no
funds for said checks. Atty. Simando further denied that he refused to take legal action
against Mejorado. He claimed that complainant never instructed him to le legal action,
since the latter knew that Mejorado is obligated to pay only upon receipt of his informer's
reward.
Finally, Atty. Simando insisted that he did not violate their lawyer-client relationship,
since Dr. Lee voluntarily made the nancial investment with Mejorado and that he merely
introduced complainant to Mejorado. He further claimed that there is no con ict of
interest because he is Mejorado's lawyer relative to the latter's claim for informer's reward,
and not Mejorado's lawyer against Dr. Lee. He reiterated that there is no con icting
interest as there was no case between Mejorado and Dr. Lee that he is handling for both of
them. 1 5
In her Reply dated October 30, 2009, Dr. Lee denied that what she entered into was a
mere investment. She insisted that she lent the money to Mejorado and respondent, in his
capacity as co-maker and the transaction was actually a loan. 1 6 To prove her claim, Dr.
Lee submitted the written loan agreements/receipts which categorically stated that the
money received was a loan with due dates, signed by Mejorado and respondent as co-
maker. 1 7 She further claimed that she did not know Mejorado and it was respondent who
brought him to her and requested her to assist Mejorado by lending him money as, in fact,
respondent even vouched for Mejorado and agreed to sign as co-maker.
Complainant further emphasized that what she was collecting is the payment only of
the loan amounting to One Million Four Hundred Thousand Pesos (Php1,400,000.00)
which respondent had signed as co-maker. Thus, respondent's claim that his obligation
was already extinguished by novation holds no water, since what was being collected is
merely his obligation pertaining to the loan amounting to Php1,400,000.00 only, and
nothing more.
Finally, complainant lamented that respondent, in his comments, even divulged
con dential informations he had acquired while he was still her lawyer and even used it
against her in the present case, thus, committing another unethical conduct. She, therefore,
maintained that respondent is guilty of violating the lawyer-client confidentiality rule.HaEcAC

Both parties failed to appear during the mandatory conference on January 15, 2010.
Both parties requested for resetting of the mandatory conference, however, both failed to
agree on a certain date. Hence, the IBP, so as not to delay the disposition of the complaint,
terminated the mandatory conference and instead required the parties to submit their
respective position papers. 1 8

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 On March 18, 2010, the IBP-CBD found Atty. Simando guilty of violating the Code of
Professional Responsibility. It recommended that respondent be suspended from the
practice of law for six (6) months.
On December 29, 2010, the IBP Board of Governors adopted and approved the
Report and Recommendation of the IBP-CBD to suspend Atty. Simando from the practice
of law for a period of six (6) months.
Respondent moved for reconsideration.
On March 10, 2012, the IBP Board of Governors granted respondent's motion for
reconsideration for lack of su cient evidence to warrant the penalty of suspension. The
Resolution dated December 29, 2010 was reversed and the case against respondent was
dismissed.
RULING
We reverse the ruling of the IBP Board of Governors.
Jurisprudence has provided three tests in determining whether a lawyer is guilty of
representing conflicting interest:
One test is whether a lawyer is duty-bound to ght for an issue or claim in
behalf of one client and, at the same time, to oppose that claim for the other
client. Thus, if a lawyer's argument for one client has to be opposed by that
same lawyer in arguing for the other client, there is a violation of the rule.
EACTSH

Another test of inconsistency of interests is whether the acceptance of a

new relation would prevent the full discharge of the lawyer's duty of
undivided delity and loyalty to the client or invite suspicion of
unfaithfulness or double-dealing in the performance of that duty . Still
another test is whether the lawyer would be called upon in the new relation to
use against a former client any con dential information acquired through their
connection or previous employment. 1 9

In the instant case, we nd substantial evidence to support respondent's violation of

the above parameters, as established by the following circumstances on record:
First, it is undisputed that there was a lawyer-client relationship between
complainant and Atty. Simando as evidenced by the retainer fees received by respondent
and the latter's representation in certain legal matters pertaining to complainant's
business;
Second, Atty. Simando admitted that Mejorado is another client of him albeit in a
case claiming rewards against the Bureau of Customs;
Third, Atty. Simando admitted that he was the one who introduced complainant and
Mejorado to each other for the purpose of entering into a nancial transaction while having
knowledge that complainant's interests could possibly run in con ict with Mejorado's
interests which ironically such client's interests, he is duty-bound to protect; SHTcDE

Fourth, despite the knowledge of the con icting interests between his two clients,
respondent consented in the parties' agreement and even signed as co-maker to the loan
agreement;
Fifth, respondent's knowledge of the con icting interests between his two clients
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 was demonstrated further by his own actions, when he:
(a) failed to act on Mejorado's failure to pay his obligation to
complainant despite the latter's instruction to do so;
(b) denied liability despite signing as co-maker in the
receipts/promissory notes arising from the loan agreement between
his two clients;
(c) rebutted complainant's allegations against Mejorado and him, and
even divulged informations he acquired while he was still
complainant's lawyer.
Clearly, it is improper for respondent to appear as counsel for one party
(complainant as creditor) against the adverse party (Mejorado as debtor) who is also his
client, since a lawyer is prohibited from representing con icting interests. He may not,
without being guilty of professional misconduct, act as counsel for a person whose
interest conflict with that of his present or former client.
Respondent's assertion that there is no conflict of interest because complainant and
respondent are his clients in unrelated cases fails to convince. His representation of
opposing clients in both cases, though unrelated, obviously constitutes con ict of interest
or, at the least, invites suspicion of double-dealing. 2 0 Moreover, with the subject loan
agreement entered into by the complainant and Mejorado, who are both his clients, readily
shows an apparent conflict of interest, moreso when he signed as co-maker. IEDHAT

Likewise, respondent's argument that the money received was an investment and
not a loan is di cult to accept, considering that he signed as co-maker. Respondent is a
lawyer and it is objectionable that he would sign as co-maker if he knew all along that the
intention of the parties was to engage in a mere investment. Also, as a lawyer, signing as a
co-maker, it can be presupposed that he is aware of the nature of suretyship and the
consequences of signing as co-maker. Therefore, he cannot escape liability without
exposing himself from administrative liability, if not civil liability. Moreover, we noted that
while complainant was able to show proof of receipts of various amounts of money
loaned and received by Mejorado, and signed by the respondent as co-maker, the latter,
however, other than his bare denials, failed to show proof that the money given was an
investment and not a loan.
It must be stressed that the proscription against representation of con icting
interests nds application where the con icting interests arise with respect to the same
general matter however slight the adverse interest may be. It applies even if the con ict
pertains to the lawyer's private activity or in the performance of a function in a non-
professional capacity. In the process of determining whether there is a con ict of interest,
an important criterion is probability, not certainty, of conflict. 2 1
We likewise note that respondent offered several excuses in order to avoid payment
of his liability. First, in his Answer to complainant's demand letter, he claimed there was
novation which extinguished his liability; Secondly, he claimed that the amount received by
Mejorado for which he signed as co-maker was merely an investment and not a loan.
Finally, he alleged that it was agreed that the investment with pro ts will be paid only after
Mejorado receives the payment for his claim for reward which complainant violated when
she presented the checks for payment prematurely. These actuations of Atty. Simando do
not speak well of his reputation as a lawyer. 2 2
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 Finally, we likewise nd respondent guilty of violating Rule 21.01 of the Code of
Professional Responsibility. 2 3 In his last-ditch effort to impeach the credibility of
complainant, he divulged informations 2 4 which he acquired in con dence during the
existence of their lawyer-client relationship. HaECDI

We held in Nombrado v. Hernandez 2 5 that the termination of the relation of attorney

and client provides no justi cation for a lawyer to represent an interest adverse to or in
con ict with that of the former client. The reason for the rule is that the client's con dence
once reposed cannot be divested by the expiration of the professional employment.
Consequently, a lawyer should not, even after the severance of the relation with his client,
do anything which will injuriously affect his former client in any matter in which he
previously represented him nor should he disclose or use any of the client's con dences
acquired in the previous relation.
Accordingly, we reiterate that lawyers are enjoined to look at any representation
situation from "the point of view that there are possible con icts," and further, "to think in
terms of impaired loyalty" that is to evaluate if his representation in any way will impair
loyalty to a client. 2 6
WHEREFORE , premises considered, this Court resolves to ADOPT the ndings and
recommendation of the IBP in Resolution No. XIX-2010-733 suspending respondent Atty.
Amador L. Simando for six (6) months from the practice of law, with a WARNING that a
repetition of the same or similar offense will warrant a more severe penalty.
Let copies of this Decision be furnished all courts, the O ce of the Bar Con dant
and the Integrated Bar of the Philippines for their information and guidance. The O ce of
the Bar Con dant is DIRECTED to append a copy of this Decision to respondent's record
as member of the Bar.
Atty. Simando is DIRECTED to inform the Court of the date of his receipt of this
Decision so that we can determine the reckoning point when his suspension shall take
effect.
This Decision shall be immediately executory.
SO ORDERED .
Velasco, Jr., Abad, Mendoza and Leonen, JJ., concur.

Footnotes
1.Rollo, pp. 1-13.
2.Id. at 2.
3.Id. at 2.

4.Id. at 3.
5.Id.
6.Id.
7.Id. at 14.

8.Id. at 26-40.
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 9.Id. at 28.

10.Id.
11.Id. at 30.
12.Id.
13.Id.
14.Id. at 29.

15.Id. at 33.
16.Id. at 123.
17.Id. at 135-137.
18.Id. at 184.

19.Josefina M. Aninon v. Atty. Clemencio Sabitsana, Jr., A.C. No. 5098, April 11, 2012.
(Emphasis supplied.)
20.Id.

21.Quiambao v. Atty. Bamba, A.C. No. 6708, August 25, 2005, 465 SCRA 1, 13.
22.Rollo, pp. 135-137.
23.Rule 21.01. — A lawyer shall not, to the disadvantage of his client, use information acquired
in the course of employment, nor shall he use the same to his own advantage or that of
a third person, unless the client with full knowledge of the circumstances consents
thereto.
24.Respondent's Answer dated September 17, 2009, rollo, pp. 30-31.

25.135 Phil. 5, 9 (1968).

26.Heirs of Falame v. Atty. Baguio, A.C. No. 6876, March 7, 2008, 548 SCRA 1, 15.

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