Professional Documents
Culture Documents
@tanhueco v. de Dumo, A.M. No. 1437 (1989)
@tanhueco v. de Dumo, A.M. No. 1437 (1989)
HILARIA TANHUECO, complainant,
vs.
JUSTINIANO G. DE DUMO, respondent.
HILARIA TANHUECO, complainant,
vs.
JUSTINIANO G. DE DUMO, respondent.
R E S O L U T I ON
PER CURIAM:
On 24 February 1975, complainant Hilaria Tanhueco filed before the Court a Petition for Disbarment
(docketed as Administrative Case No. 1437) against respondent Justiniano G. de Dumo for having
violated the Canons of Professional Ethics by his (a) refusal to remit to her money collected by him
from debtors of the complainant; and (b) refusal to return documents entrusted to him as counsel of
complainant in certain collection cases.
In his Answer and Counter-Petition 1 filed on 3 April 1975, respondent denied the charges. Complainant filed a Rejoinder
[should be Reply] to Answer with Counter-Petition, on 18 April 1975. By a Resolution 2 dated 16 June 1975, the Court referred this case to
the Solicitor General for investigation, report and recommendation.
A year later, on 25 June 1976, one Jose Florencio N. Tanhueco claiming to be the nephew and
representative of the complainant, addressed a sworn letter complaint to Mrs. Imelda R. Marcos
against the respondent for (a) refusal to remit the money collected by respondent from debtors of
complainant's aunt, Mrs. Hilaria Tanhueco Vda. de David; (b) refusal to return documents entrusted
to him in his capacity as counsel in certain cases; and (c) abandonment of cases in respect of which
his professional services had been engaged. On 24 August 1976, the letter complaint was forwarded
by the then Public Information Assistance Staff, Department of Public Information, to this Court for
appropriate action (and docketed as Administrative Case No. 1683). After respondent had filed his
Answer, the Court, by a Resolution 3 dated 9 December 1976, referred this case to then Acting Judicial Consultant Ricardo C.
Puno for study, report and recommendation.
Since Administrative Case No. 1683 and Administrative Case No. 1437 involved the same parties
and the same subject matter, Hon. Ricardo C. Puno referred the former case to the Office of the
Solicitor General for consolidation with the latter one.
The Office of the Solicitor General held two (2) hearings, one on 3 December 1975 and another on
18 April 1988. In the first hearing, respondent de Dumo was absent although he had been notified
thereof. At the end of the first hearing, continuation of the hearing of the case was set for 14 January
1976. The records show that the second hearing took place on 18 April 1988 but do not indicate the
reason for the 12-year interregnum. By then, complainant Tanhueco had died. There was no
appearance at the second hearing by complainant Jose Florencio Tanhueco but respondent de
Dumo was then present.
The report of the Solicitor General, dated June 15, 1988 in Administrative Case No. 1437
summarized the evidence for the complainant in the following manner:
Complainant also declared that respondent borrowed from her P2,000.00, Pl,300.00,
and P3,000.00 on three separate occasions, but she could not remember when she
gave those amounts. Respondent did not pay those loans (pp. 8-9, tsn, Id.).
She confirmed that respondent filed cases against her debtors and that one of them,
Constancia Mañosca paid P12,500.00 to respondent. Informed of such payment by
Mañosca herself, complainant confronted respondent but the latter denied having
received payment from any of her debtors. Complainant then brought the matter to
the attention of Malacañang which referred her to Camp Crame. Notwithstanding
subsequent demands of complainant for the money, respondent had refused to give
her the amount (pp. 11 -15, tsn, Id.).
The Solicitor General then summed up the evidence for the respondent in the following terms:
Respondent also declared that complainant, who was then already old and sickly,
was influenced by her debtors, who were also her friends into distrusting him.
Ultimately, because complainant filed a complaint against him with Malacañang
which referred the matter to Camp Crame, he terminated his relationship with
complainant and demanded his attorney's fees equivalent to 50% of what he had
collected. Complainant refused to pay him, hence, he did not also turn over to her the
P12,000.00 initial payment of Mañosca which he considered, or applied, as part
payment of his attorney's fee (pp. 9-19, tsn., Id.). Respondent estimated his
attorney's fee due from complainant in the amount of P17,000.00 (p. 20, tsn, Id.)
FINDINGS
As regards the charges that respondent received documents evidencing the debts to
complainant and had refused to return them to the latter, and that respondent also
borrowed some amounts from her, there [is] no competent, conclusive evidence to
support them. Perforce, such allegations have no factual basis. (Emphasis supplied)
For failure to turn over the amount of P12,000.00 to the complainant, and applying it
as his attorney's fees, respondent Atty. Justiniano G. de Dumo be severely
reprimanded and admonished that repetition of the same or similar offense will be
dealt with more severely.
We find the findings of fact of the Solicitor General supported by the evidence of record. We are,
however, unable to accept his recommendation.
Moneys collected by an attorney on a judgment rendered in favor of his client, constitute trust funds
and must, be immediately paid over to the client. 4 Canon 11 of the Canons of Professional Ethics 5 then in force,
provides as follows:
The lawyer should refrain from any action whereby for his personal benefit or gain he
abuses or takes advantage of the confidence reposed in him by his client.
Money of the client or collected for the client or other trust property coming into the
possession of the lawyer should be reported and accounted for promptly and should
not under any circumstance be comingled with his own or be used by him.
(Emphasis supplied)
When respondent withheld and refused to deliver the money received by him for his client, the
deceased complainant Hilaria Tanhueco, he breached the trust reposed upon him.The claim of the
respondent that complainant had failed to pay his attorney's fees, is not an excuse for respondent's
failure to deliver any amount to the complainants. 6 It is of course true that under Section 37 of Rule 138 of the Revised
Rules of Court, an attorney has-
a lien upon the funds, documents and papers of his client which have lawfully come
into his possession and may retain the same until his lawful fees and disbursements
have been paid, and may apply such funds to the satisfaction thereof. He shall also
have a lien to the same extent upon all judgments for the payment of money and
executions issued in pursuance of such judgments, which he has secured in a
litigation of his client, from and after the time when he shall have caused a statement
of his claim of such lien to be entered upon the records of the court rendering such
judgment, or issuing such execution, and shall have caused written notice thereof to
be delivered to his client and to the adverse party; and he shall have the same right
and power over such judgments and executions as his client would have to enforce
his lien and secure the payment of his just fees and disbursements.
The fact that a lawyer has a lien for fees on moneys in his hands collected for his client, does not
relieve him from his duty promptly to account for the moneys received; his failure to do so constitutes
professional misconduct. 7
In the present case, what respondent could have properly done was to make an account with his
client, the complainant, deduct his attorney's fees due in respect of the amount actually collected by
him, and turn over the remaining balance to the complainant. The Court notes that the services of
respondent de Dumo were engaged by the complainant on a number of cases and that these were
on differing stages of completion. Respondent was not entitled to hold on to the entire amount of
P12,000.00 collected by him until all his fees for the other cases had also been paid and received by
him. There was not enough evidence in the record to show how much money, if any, respondent had
in fact previously (i.e., other than the P12,000.00 from Mañosca) collected for and turned over to
complainant (thereby waiving his lien thereon) without deducting therefrom his claimed contingent
fees in respect of such collections.
The relationship of attorney and client has always been rightly regarded as one of special trust and
confidence. An attorney must exercise the utmost good faith and fairness in all his relationships vis-
a-vis his client. Respondent fell far short of this standard when he failed to render an accounting for
the amount actually received by him and when he refused to turn over any portion of such amount
received by him on behalf of his client upon the pretext that his attorney's fees had not all been paid.
Respondent had in fact placed his private and personal interest above that of his client.
Respondent's act constitutes a breach of his lawyer's oath and a mere reprimand is not an adequate
sanction.
There is another aspect to this case which the Court cannot gloss over. Respondent claimed that he
charged complainant, his client, a contingent fee of fifty percent (50%) of the amount collected by
him, plus interest and whatever attorney's fees may be awarded by the trial court chargeable to the
other party. In this jurisdiction, contingent fees are not per se prohibited by law. 8 But when it is
shown that a contract for a contingent fee are obtained by undue influence exercised by the attorney
upon his client or by any fraud or imposition, or that the compensation is clearly excessive, the Court
must and will protect the aggrieved party. 9
From the Answer of respondent de Dumo it appears that in three (3) collection cases filed by him for
the complainant and which were decided in favor of the complainant, the awards totalled
P31,390.00. Respondent asserted that he was entitled to attorney's fees amounting to Pl8,840. 00
out of the aggregate total of P31,390.00:
7. That the understanding between Hilaria Tanhueco and me was a fifty- fifty on
collected principal and interests. The lawyer has the right to charge attorney's fees to
the other party-defendant and that Hilaria Tanhueco shall not interfere nor be
included in the computation.
TOTAL P ll,390.00.
MAÑOSCA CASE:
TIPACES CASE:
TOTAL AMOUNT
RECEIVABLE……………………………………………
……………………............. P6,420.00
Pll,920. 00
P6,420.00
P500. 00
P18,840. 00 TOTAL 10
TANHUECO v. DE DUMO
FACTS:
Hilaria Tanhueco filed a petition for disbarment against Atty. Justiniano de Dumo for his refusal to remit
her money collected from debtors and refusal to return documents entrusted to him as a counsel in
certain collection cases. Tanhueco allegedly offered De Dumo 15% of what he may be able to collect
from debtors but De Dumo responded that in their agreement he gets 50% of what he may be able to
collect as contingent fee. De Dumo also admitted he did not turn over the P 12,000.00 he collected and
applying it instead as part of his attorney’s fee.
HELD:
De Dumo’s contingent fee is grossly excessive because 50% is more than half of the total amount due
from Tanhueco’s debtors. His action is believed to be fraudulent because he took advantage of his client
who is an old and sickly woman.
The fact that a lawyer has a lien for fees on moneys in his hands collected for his client, does not relieve
him from his duty promptly to account for the moneys received; his failure to do so constitutes
professional misconduct.
respondent is guilty of violation of the attorneys' oath and of serious professional misconduct and
shall be SUSPENDED from the practice law for six (6) months and WARNED that repetition of the
same or similar offense will be more severely dealt with