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SUPREME COURT OF THE PHll.'PPiNES
~upreme <!Court PUBLIC INFORMATION OFFICE

;fllanila

FIRST DIVISION

NOTICE

Sirs/Mesdames:

Please take notice that the Court, First Division, issued a

Resolution dated August 14, 2019 which reads as follows:

"A.C. No. 11172 (MALABON CENTRAL MARKET

DEVELOPMENT COOPERATIVE, represented by EDGARDO F.
VIRTUDES, Complainant, v. ATTY. CECILIA S. SIOCO-
FERNANDEZ, Respondent.) -This case stemmed from a complaint 1
dated July 31, 2012 filed by Malabon Central Market Development
Cooperative (MCMDC), through its Chairman of the Board, Edgardo
F. Virtudes, charging Atty. Cecilia S. Sioco-Femandez (Atty. Sioco-
Femandez) with betrayal of trust and violation of the rule against
conflict of interest.

In its complaint, MCMDC alleged that it engaged the services

of Atty. Sioco-Fernandez as its retained lawyer for more than ten (10)
years. Her services included, among others, the giving of legal advice
in matters relating to disciplinary actions against its employees and
execution of contracts. She likewise handled an actual case for nullity
of anomalous bidding process against Malabon City Mayor Canuto
Oreta in 2008, and drafted demand letters against Maribel C. Roman
in 2010 for unlawful occupation ofMCMDC's property. 2

Sometime in 2010, MCMDC, through its former Chairman of

the Board, Francisco Lopez, asked Atty. Sioco-Femandez for legal
advice regarding purported irregularities in the transactions managed
by its then General Manager, Cynthia Donato (Donato). Atty. Sioco-
Femandez allegedly advised MCMDC to place Donato under

1
Rollo, p. 2-4.
2
See id. at 3 and 334.

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 RESOLUTION 2 AC. No. 11172
August 14, 2019

indefinite suspension pending investigation, to which MCMDC

complied. 3

Apparently, Donato filed a case for illegal suspension against

MCMDC. While the case was on appeal, MCMDC learned that Atty.
Sioco-Fernandez represented Donato. MCMDC claimed that in
representing Donato, Atty. Sioco-Fernandez had betrayed MCMDC's
trust and was guilty of violation of the rule on conflict of interest. 4

On her part, Atty. Sioco-Fernandez admitted to being a

consultant for MCMDC from 1995 until the latter terminated her
services in 2005. She also claimed that she represented MCMDC in a
case against Oreta in 2008 and Roman in 2010, but these were
isolated legal services since she had no exclusive contract with
MCMDC; that she did not give the advice to place Donato under
indefinite suspension; that said advice was recommended by the Audit
and Inventory Committee; and that with the termination of her legal
services in 2005, she had no obligation to get any written consent
from MCMDC to represent Donato pursuant to Rule 15.03 of the
Code ofProfessional Responsibility. 5

In his November 18, 2013 report and recommendation,6

Investigating Commissioner Jose Alfonso M. Gomos of the Integrated
Bar of the Philippines-Commission on Bar Discipline (IBP-CBD)
found Atty. Sioco-Fernandez guilty of representing conflicting
interest.

Commissioner Gomos observed that contrary to Atty. Sioco-

Fernandez's claim, the lawyer-client relationship of the parties was
not terminated but was merely changed from a monthly retainer to a
"per work" or "case-to-case" basis. As there had been no written
consent from all the concerned parties when Atty. Sioco-Fernandez
represented Donato in the illegal suspension case, it was improper for
her to represent an interest opposed to or in conflict MCMDC. 7 Thus,
Commissioner Gomos recommended her suspension from the practice
of law for one ( 1) year. 8

Id. at 3 and 334.

4
Id. at 334-335.
5
Id. at 41-47.
Id. at 333-341.
Id. at 340.
Id. at 341.

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 RESOLUTION 3 A.C. No. 11172
August 14, 2019

In Resolution No. XXI-2015-212 9 passed on February 21, 2015,

the IBP Board of Governors adopted and approved the report and
recommendation of the Investigating Commissioner of the IBP-CBD,
with modification that Atty. Sioco-Fernandez be suspended from the
practice of law for six (6) months.

On March 21, 2017, the Office of the Bar Confidant (OBC)

issued its report and ·recommendation 10 sustaining the findings of the
IBP, but recommended that Atty. Sioco-Fernandez be suspended for
one (1) year from the practice of law.

Did Atty. Sioco-Fernandez violate the rule on conflict of

interest when she represented Donato in the illegal suspension case
without securing the written consent ofMCMDC?

We affirm the findings and recommendation of the OBC.

Canon 15 of the Code of Professional Responsibility mandates

lawyers to observe candor, fairness and loyalty in all their dealings
and transactions with their clients. Rule 15.03 of the same Code
commands that: "[a] lawyer shall not represent conflicting interests
except by written consent of all concerned given after a full disclosure
of the facts."

In Hornilla vs. Salunat, 11 the Court explained the concept of

conflict of interest in this manner:

There is conflict of interest when a lawyer represents

inconsistent interests of two or more opposing parties. The test is
"whether or not in behalf of one client, it is the lawyer's duty to
fight for an issue or claim, but it is his duty to oppose it for the
other client. In brief, if he argues for one client, this argument will
be opposed by him when he argues for the other client." This rule
covers not only cases in which confidential communications have
been confided, but also those in which no confidence has been
bestowed or will be used. Also, there is conflict of interests if the
acceptance of the new retainer will require the attorney to perform
an act which will injuriously affect his first client in any matter in
which he represents him and also whether he will be called upon in
his new relation to use against his first client any knowledge

9
Id. at 331-332.
10
Id. at 345-351.
11
A.C. No. 5804, July I, 2003, 405 SCRA 220.

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 RESOLUTION 4 A.C. No. 11172
August 14, 2019

acquired through their connection. Another test of the

inconsistency of interests is whether the acceptance of a new
relation will prevent an attorney from the full discharge of his duty
of undivided fidelity and loyalty to his client or invite suspicion of
unfaithfulness or double dealing in the performance thereof. 12

No written agreement is necessary to generate a lawyer-client

relationship; it commences from the moment the client seeks the
lawyer's advice upon a legal concern, which may be for consultation
on transactions or other legal matters, or for representation in court.
The lawyer is thereafter bound to respect the relationship and to
maintain the trust and confidence of his client. 13

Based on the foregoing, Atty. Sioco-Femandez violated the rule

against representing conflicting interests. It would be immaterial that
the lawyer-client relationship between the complainant and the
respondent had not been reduced into writing. The fact that Atty.
Sioco-Femandez rendered legal services for the complainant for ten
(10) years and represented the latter in the cases it filed before the
courts sufficiently established lawyer-client relationship. As such, she
was bound to give her undivided fidelity to the cause of MCMDC
even after the termination of their lawyer-client relationship. It is a
settled rule that the lawyer's duty to his client does not cease upon the
termination of the litigation or the retainer agreement or a change of
the relation between the parties. 14

By representing a party in a labor case whose interest was

opposed to that of MCMDC without consulting the latter on her
representation, Atty. Sioco-Femandez indubitably breached Rule
15.03 of the Code.

As for the penalty, We also agree with the OBC that Atty.
Sioco-Femandez should be suspended from the practice of law for one
( 1) year as it conforms with prevailing jurisprudence. 15

WHEREFORE, the Court FINDS Atty. Cecilia S. Sioco-

Femandez GIDLTY of representing conflicting interests in violation
of Rule 15.03, Canon 15 of the Code of Professional Responsibility;
and suspends her from the practice of law for ONE (1) YEAR,
12
Id. at 223.
13
Diongzon v. Mirano, A.C. No. 2404, August 17, 2016, 800 SCRA 500, 505.
14
Samson v. Era, A.C. No. 6664, July 16, 2013, 701 SCRA 241,253.
15
Supra note 8.

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 RESOLUTION 5 A.C. No. 11172
August 14, 2019

effective immediately upon receipt of this resolution; and DIRECTS

her to file a Manifestation to the Court that she has already started
with her suspension and to furnish with a copy of said Manifestation
all courts and quasi-judicial bodies where she has entered her
appearance as counsel.

Let copies of this resolution be entered in the personal records

of Atty. Sioco-Femandez in the Office of the Bar Confidant and the
Integrated Bar of the Philippines; and a copy of this resolution be
furnished to the Office of the Court Administrator for dissemination to
all courts in the country.

SO ORDERED."

Very truly yours,

. .....UENA
Clerk of Cou~111/4
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Edgardo F. V irtudes Atty. Cecilia S. Socio-Fernandez

Complainant's Representative Respondent
Malabon Central Market No. 1111 M. Naval Street
Development Cooperative San Jose, 1485 Navotas City
No. 5 General Luna Street
San Agustin, 1470 Malabon City The Bar Confidant (x)
Supreme Court
Public Information Office (x)
Library Services (x) Integrated Bar of the Philippines
Supreme Court Dofia Julia Vargas Avenue
(For uploading pursuant to A.M. No. 12- Ortigas Center, 1605 Pasig City
7-1-SC)
Office of the Court Administration (x)
Supreme Court

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