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    Salalima vs. Guingona

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    Mikkolet
    This case involved a dispute over a property auction conducted by the Province of Albay against the National Power Corporation for unpaid taxes. The Province hired private lawyers including Atty. Cornago and the Cortes & Reyna Law Firm to handle the case, despite having a Provincial Legal Officer. This violated laws requiring an LGU to be represented by its legal officer except in limited circumstances. Additionally, payments to the lawyers were made without required approvals and the fees paid were found to be excessive. While respondents were found to have incurred administrative liability, they could not be disciplined as the acts occurred in a prior term.

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    Salalima vs. Guingona

    Uploaded by

    Mikkolet
    2K views1 page
    This case involved a dispute over a property auction conducted by the Province of Albay against the National Power Corporation for unpaid taxes. The Province hired private lawyers including Atty. Cornago and the Cortes & Reyna Law Firm to handle the case, despite having a Provincial Legal Officer. This violated laws requiring an LGU to be represented by its legal officer except in limited circumstances. Additionally, payments to the lawyers were made without required approvals and the fees paid were found to be excessive. While respondents were found to have incurred administrative liability, they could not be disciplined as the acts occurred in a prior term.

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    This case involved a dispute over a property auction conducted by the Province of Albay against the National Power Corporation for unpaid taxes. The Province hired private lawyers including Atty. Cornago and the Cortes & Reyna Law Firm to handle the case, despite having a Provincial Legal Officer. This violated laws requiring an LGU to be represented by its legal officer except in limited circumstances. Additionally, payments to the lawyers were made without required approvals and the fees paid were found to be excessive. While respondents were found to have incurred administrative liability, they could not be disciplined as the acts occurred in a prior term.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    2K views1 page

    Salalima vs. Guingona

    Uploaded by

    Mikkolet
    This case involved a dispute over a property auction conducted by the Province of Albay against the National Power Corporation for unpaid taxes. The Province hired private lawyers including Atty. Cornago and the Cortes & Reyna Law Firm to handle the case, despite having a Provincial Legal Officer. This violated laws requiring an LGU to be represented by its legal officer except in limited circumstances. Additionally, payments to the lawyers were made without required approvals and the fees paid were found to be excessive. While respondents were found to have incurred administrative liability, they could not be disciplined as the acts occurred in a prior term.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 1

    Private Counsel/Lawyers for Elective Local Officials

    SALALIMA VS. GUINGONA

    Facts:
    - NPC filed a case against the Province of Albay questioning the validity of the auction sale, which the
    Province conducted because of NPC’s failure to pay real property taxes assessed.
    - The Albay Sangguniang Panlalawigan, through a resolution, authorized respondent Governor to engage
    the services of a Manila-based law firm (Cortes & Reyna Law Firm) to handle the case against NPC.
    Later, the Province also engaged the services of Atty. Cornago. This is despite the availability of the
    Provincial Legal Officer, Atty. Ricafort, who already filed the Province’s comment on the NPC petition.
    - A retainer agreement was entered into which provided that Atty. Cornago and the law firm shall receive
    P50,000 as acceptance fee and 18% of the value of the property subject matter of the case which is
    P214 Million.
    - The province had already paid P7,380,410.31 as attorney’s fees when the COA disallowed further
    disbursements for lack of the requisite prior written conformity and acquiescence of the Sol Gen and the
    written concurrence of the COA as required by COA Circular No. 86-255.
    - An administrative complaint was then filed against Gov. Salalima, Vice Gov. Azaña, and other Albay
    Sangguniang Panlalawigan Members relative to the questioned retainer contract and the disbursement
    of public funds in payment thereof.

    Issue: WON respondents have incurred administrative liability in entering into the retainer agreement
    with Atty. Cornago and the Cortes & Reyna Law Firm and in making payments pursuant to said
    agreement

    Held: YES. In hiring private lawyers to represent the Province of Albay, respondents exceeded their
    authority and violated a provision of the LGC and a Supreme Court doctrine. Moreover, the entire
    transaction was attended by irregularities.

    Ratio:
     Sec. 481 LGC: requires the appointment of a legal officer to represent the LGU in all civil
    actions and specal proceedings wherein the LGU or any official thereof, in his official capacity
    is a party
    o EXCEPTION: In actions or proceedings where a component city or municipality is a party
    adverse to the provincial government or to another component city or municipality, a special legal
    officer may be employed to represent the adverse party
     Municipality of Bocaue, et al. v. Manotok: LGUs cannot be represented by private lawyers and
    it is solely the Provincial Fiscal who can rightfully represent them
     Attendant Irregularities:
    o No prior written approval of the Sol Gen and COA before the disbursements were made
    o The resolution passed by the Sanggunian only authorized the Governor to sign a retainer contract
    with the Cortes & Reyna Law Firm and yet he also signed with Atty. Cornago, a different entity
    o The Province paid the Cortes & Reyna Law Firm despite the fact that it didn’t appear as counsel
    for the Province in the SC case
    o Considering the standing of both Atty. Cornago the Cortes & Reyna Law Firm, the P38.5 Million
    attorney’s fees is unconscionable and violative of (a) COA Circular No. 85-55-A prohibiting
    irregular, unnecessary, excessive or extravagant expenditures or uses of funds; and (b) Sec. 3
    (e) and (g) of the Anti-Graft and Corrupt Practices Act.

    *** However, it was held that respondents could no longer be subject to disciplinary action for such
    administrative misconduct as it was committed during a prior term.

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