A.M. No.

35 September 30, 1949

In re Attorney FELIX P. DAVID, petitioner.
Felix P. David in his own behalf.
Office of the Solicitor General Felix Angelo Bautista and Solicitor Estrella Abad Santos for the Government.
REES, J.:
The respondent, Felix P. David, a member of a Philippine Bar, is charged with the malpractice for misappropriating funds
entrusted to him by his client, the complainant Briccio S. enson. !espondent having answered denying the charge, the
complaint was referred to the Solicitor "eneral for investigation. #fter the investigation the Solicitor "eneral rendered his
report finding the respondent guilty of professional misconduct and recommending disciplinary action. The Solicitor
"eneral reports the following facts to have been conclusively established$
. . . that on February %&, %'(), respondent obtained P*(+ from his client Briccio enson to be applied to the
payment of inheritance and real estate taxes due from the estate of ,steban enson for %'(&, %'(- and %'() .p.
/, t. s. n.0, for which he signed a receipt .#nnex 1#12 p. /, t. s. n.0. 3n several occasions, complainant as4ed the
respondent to show him the official tax receipt evidencing the payment of said taxes, to which the latter answered
that he had already paid them, but the receipts were left with his friend in San Fernando. !espondent promised to
give the receipt later. 5omplainant waited patiently for it but it was never delivered. #fter the respondent had failed
to deliver the receipt, complainant became suspicious and in6uired from the provincial treasurer of Pampanga
about the matter. Said official gave the information that the taxes were never paid. 5onse6uently, complainant
re6uested the respondent to refund the money given him for the payment of said taxes .p. ), t. s. n., 3S"0, but he
failed to do so. !espondent made several promises to return the money which he never complied. 7either had he
done anything to transfer the titles of the land in the name of the heirs of ,steban enson up to the present .p. ',
t. s. n.0. 8n view of this failure of the respondent, the complainant was ultimately forced to pay the taxes out of his
own poc4et .p. *, t.s.n.0.
!e6uired to answer the complaint formulated by the Solicitor "eneral on the basis of his report, respondent failed to do
so. #nd despite due notice he li4ewise failed to appear at the hearing before this 5ourt. 8ndeed, we note from the Solicitor
"eneral1s report that respondent, instead of welcoming every opportunity for hearing, seems to have wanted to avoid it.
3n this point the report says$
#t the hearing held on 9ay :-, %'(*, both parties appeared and the complainant had testified, the hearing was
set for continuance the following day. Both parties agreed in the presence of the investigator to postpone said
hearing for ;une &, %'(*. 3n ;une &, %'(*, complainant appeared, but respondent did not show up, so to give the
respondent a chance, the investigator postponed the continuation of the hearing to ;une %). Both parties were
duly subpoenaed .attached to the records0. 3n ;une %&th, respondent sent a letter .attached to the records0 to
#ssistant Solicitor "eneral !uperto <apunan, as4ing that the hearing be postponed to ;une :&, %'(*. #ccording
to the re6uest, both parties were again duly subpoenaed for ;une :&, %'(* .attached to the record0. 8n the
subpoena sent to respondent, his attention was invited to !ule %:), section :*, of the !ules of 5ourt, which
provides that if he fails to appear and answer the charge, the Solicitor in charge will proceed to hear the case ex
arte. 8n spite of this, on the morning of ;une :&, he again sent another letter .attached to the records0 to
#ssistant Solicitor "eneral <apunan, as4ing that the hearing be transferred to ;uly ), or *, %'(*. 8n order that the
respondent be given all the chances to defend himself, his re6uest was granted. 8n the subpoena sent him setting
the hearing for ;uly *, %'(*, as re6uested, the following remar4 was stated$
Failure on your part to appear will cause the investigator to proceed with the investigation and to file the
corresponding recommendation to the Supreme 5ourt. 7o further postponement will be entertained.
8t is worthwhile mentioning that every time the case was set for hearing the complainant made his appearance.
3n the morning of ;uly *, %'(*, both parties appeared2 respondent made a formal re6uest in person to the
investigator as4ing that the hearing be postponed to : o1cloc4 p.m. of the same day. 3ut of consideration to him,
even to the discomfiture of complainant, respondent1s re6uest was again granted. But contrary to his assurance,
the respondent again failed to appear.
There is no 6uestion that respondent received from complainant the sum of P*(+ for the specific purpose of
applying the same to the payment of taxes due from the estate which he was engaged to settle. The receipt which
he issued for said amount as well as for the sum of P%%+ and a sac4 of rice paid to him for his expenses and fee
reads as follows$ . . .
Februar! "#$ "%&'.
!eceived from 9r. Briccio S. enson the sum of eight hundred and forty .P*(+0 pesos to be paid as
follows$
P:%+ =8nheritance tax of the heirs of the late Don ,steban
enson.
P-/+ =>and taxes for %'(&=%'().
Failure on my part to deliver to him the official receipts corresponding to the above mentioned amount, 8
promise to return to him the whole amount of P*(+ not later than #pril %-, %'() without any obligation on
his part.
# separate amount of one hundred and ten .P%%+0 pesos and a sac4 of rice was paid to me for my
expenses and fee.
.Sgd.0 #tty. F,>8? D#@8D.
!espondent did not care to testify. But through his unverified answer, he would ma4e it appear that he was entitled to and
had been promised a legal fee for his services and that, as this promise was not complied with, he Asaw it fit to withhold
said amount .the P*(+ for taxes0 until he is paid.A This explanation is obviously an afterthought and clearly unfounded. For
the established fact is that respondent at first made complainant believe that the sum in 6uestion had already been
applied by him to the payment of taxes, and, as testified to by complainant, for the little that respondent was able to do in
connection with the case entrusted to him, he has already received his fee as shown by the above=copied receipt. The
conclusion is therefore irresistible that respondent misappropriated the money of his client. This ma4es him guilty of
unprofessional conduct.
8n view of the gravity of the misconduct committed, the respondent Felix P. David is hereby ordered suspended from the
practice of law for a period of five years from the date this decision become final, without preBudice to a more severe
action if the sum misappropriated is not refunded within one month from the same date.
(oran$ ). *.$ O+aeta$ Feria$ Beng+on$ Padilla$ ,uason$ (ontema!or$ and ,orres$ **.$ concur.
G. R. No. L-12426
[ G. R. No. L-12426, February 16, 1959 ]
PHILIPPINE LAWYER'S ASSOCIATION, PETITIONER, VS. CELEDONIO AGRAVA, IN HIS CAPACITY AS DIRECTOR
OF THE PHILIPPINES PATENT OFFICE, RESPONDENT.
D E C I S I O N
MONTEMAYOR, J.:
This is a petition fled by the Philippine Lawyer's Association for prohibition and injunction against Celedonio Agrava, in his capacity as Director
of the Philippines Patent Ofce.
On May 27, 1957, respondent Director issued a circular announcing that he had scheduled for June 27, 1957 an examination for the purpose
of determining who are qualifed to practice as patent attorneys before the Philippines Patent Ofce, the said examination to cover patent law
and jurisprudence and the rules of practice before said ofce. According to the circular, members of the Philippine Bar, engineers and other
persons with sufcient scientifc and technical training are qualifed to take the said examination. It would appear that heretofore, respondent
Director has been holding similar examinations.
It is the contention of the petitioner Philippine Lawyer's Association that one who has passed the bar examinations and is licensed by the
Supreme Court to practice law in the Philippines and who is in good standing, is duly qualifed to practice before the Philippines Patent Ofce,
and that consequently, the act of the respondent Director requiring members of the Philippine Bar in good standing to take and pass an
examination given by the Patent Ofce as a condition precedent to their being allowed to practice before said ofce, such as representing
applicants in the preparation and prosecution of applications for patent, is in excess of his jurisdiction and is in violation of the law.
In his answer, respondent Director, through the Solicitor General, maintains that the prosecution of patent cases "does not involve entirely or
purely the practice of law but includes the application of scientifc and technical knowledge and training, so much so that, as a matter of actual
practice, the prosecution of patent cases may be handled not only by lawyers, but also by engineers and other persons with sufcient scientifc
and technical training who pass the prescribed examinations as given by the Patent Ofce; * * * that the Rules of Court do not prohibit the
Patent Ofce, or any other quasi-judicial body from requiring further condition or qualifcation from those who would wish to handle cases
before such bodies, as in the prosecution of patent cases before the Patent Ofce which, as stated in the preceding paragraph, requires more
of an application of scientifc and technical knowledge than the mere application of provisions of law; * * * that the action taken by the
respondent is in accordance with Republic Act No. 165, otherwise known as the Patent Law of the Philippines, which is similar to the United
States Patent Law, in accordance with which the United States Patent Ofce has also prescribed a similar examination aa that prescribed by
respondent. * * *."
Respondent further contends that just as the Patent Law of the United States of America authorizes the Commissioner of Patents to prescribe
examinations to determine as to who may practice before the United States Patent Ofce, the respondent, is similarly authorized to do so by
our Patent Law, Republic Act No. 165.
Although as already stated, the Director of Patents, in the past, would appear to have been holding tests or examinations the passing of which
was imposed as a required qualifcation to practice before the Patent Ofce, to our knowledge, this is the frst time that the right of the Director
of Patents to do so, specially as regards members of the bar, has been questioned formally, or otherwise put in issue. And we have given it
careful thought and consideration.
The Supreme Court has the exclusive and constitutional power with respect to admission to the practice of law in the Philippines
[1]
and any
member of the Philippine Bar in good standing may practice law anywhere and before any entity, whether judicial or quasi-judicial or
administrative, in the Philippines. Naturally, the question arises as to whether or not appearance before the Patent Ofce and the preparation
and prosecution of patent applications. etc., constitutes or is included in the practice of law.
"The practice of law is not limited to the conduct of cases or litigation m court; it embraces the preparation of pleadings and other papers
incident to actions and special proceedings, the management of such actions and proceedings on behalf of clients before judges and courts,
and in addition, conveying. In general, all advice to clients, and all action taken for them in matters connected with the law incorporation
sendees, assessment and condemnation services contemplating an appearance before a judicial body, the foreclosure of a mortgage,
enforcement of a creditor's claim in bankruptcy and insolvency proceedings, and conducting proceedings in attachment, and in matters of
estate and guardianship have been held to constitute law practice, as do the preparation and drafting of legal instruments, where the work
done involves the determination by the trained legal mind of the legal efect of facts and conditions." (5 Am. Jur. p. 262, 263). (Italics suplied)
"Practice of law under modern conditions consists in no small part of work performed outside of any court and having no immediate relation to
proceedings in court. It embraces conveyancing, the giving of legal advice on a large variety of subjects, and the preparation and execution of
legal instruments covering an extensive feld of business and trust relations and other afairs. Although these transactions may have no
direct connection with court proceedings, they are always subject to become involved in litigation. They require in many aspects a high degree
of legal skill, a wide experience with men and afairs, and great capacity for adaptation to difcult and complex situations. These customary
functions of an attorney or counselor at law bear an intimate relation to the administration of justice by the courts. No valid distinction, so far
as concerns the question set forth in the order, can be drawn between that part of the work of the lawyer which involves appearance in court
and that part which involves advice and drafting of instruments in his ofce. It is of importance to the welfare of the public that these
manifold customary functions be performed by persons possessed of adequate learning and skill, of sound moral character, and acting at all
times under the heavy trust obligations to clients which rests upon all attorneys." (Moran, Comments on the Rules of Court, Vol. 3 (1953
ed.), p. 66S--666, citing In re Opinion of the Justices (Mass.), 194 N. E. 313, quoted in Rhode Is. Bar Assotf. vs. Automobile Service Assoc.
(R. I.) 179 A. 139, 144). (Italics ours)
In our opinion, the practice of law includes such appear ance before the Patent Ofce, the representation of applicants, oppositors, and other
persons, and the prosecution of their applications for patent, their oppositions thereto, or the enforcement of their rights in patent cases. In
the frst place, although the transaction of business in the Patent Ofce involves the use and application of technical and scientifc knowledge
and training, still, all such business has to be conducted and all orders and decisions of the Director of Patents have to be rendered in
accordance with the Patent Law, as well as other laws, including the Rules and Regulations promulgated by the Patent Ofce in accordance
with law. Not only this, but practice before', the Patent Ofce involves the interpretation and application of other laws and legal principles, as
well as the existence of facts to be established in accordance with the law of evidence and procedure. For instance: Section 8 of our Patent
Law provides that an invention shall not be patentable if it is contrary to public order or morals, or to public health or welfare. Section 9 says
that an invention shall not be considered new or patentable if it was known or used by others in the Philippines before the invention thereof by
the inventor named in the application for patent, or if it was patented or described in any printed publica tion in the Philippines or any foreign
country more than one year before the application for a patent therefor, or if it had been in public use or on sale in the Philippines for more than
one year before the application for the patent therefor. Section 10 provides that the right to the patent belongs to the true and actual inventor,
his heirs, legal representatives or assigns, and Section 12 says that an application for a patent may be fled only by the inventor, his heirs,
legal representatives or assigns. Sections 25 and 26 refer to correction of any mistake in a patent. Section 28 enumerates the grounds for
cancellation of a patent; that although any person may apply for such cancellation, under Section 29, the Solicitor General is authorized to
petition for the cancellation of a patent. Section 30 mentions the requirements of a petition for cancellation. Sections 31 and 32 provide for a
notice of hearing of the petition for cancellation of the patent by the Director of Patents in case the said cancellation is warranted. Under
Section 34, at any time after the expiration of three years from the day the patent was granted, any person may apply for the grant of a license
under a particular patent on several grounds, such as, if the patented invention is not being worked in the Philippines on a commercial scale,
or if the demand for the patented article in the Philippines is not being met to an adequate extent and reasonable terms, or if by reason of the
patentee's refusal to grant a license on reasonable terms or by reason of the conditions attached by him to the license, purchase, lease or use
of the patented article or working of the patented process or machine of production, the establishment of a new trade or industry in the
Philippines is prevented; or if the patent or invention relates to food or medicine or is necessary to public health or public safety. All these
things involve the application of laws, legal principles, practice and procedure. They call for legal knowledge, training and experience for which
a member of the bar has been prepared.
In support of the proposition that much of the business and many of the acts, orders and decisions of the Patent Director involve questions of
law or a reasonable and correct evaluation of facts, the very Patent Law, Republic Act No. 165, Section 61, provides that:
"* * * the applicant for a patent or for the registration of a design, any party to a proceeding to cancel a patent or to obtain a compulsory
license, and any party to any other proceeding in the Ofce may appeal to the Supreme Court from any fnal order or decision of the Director."
In other words, the appeal is taken tp this Tribunal. If the transaction of business in the Patent Ofce and the acts, orders and decisions of the
Patent Director involved exclusively or mostly technical and scientifc knowledge and training, then logically, the appeal should be taken not to a
court or judicial body, but rather to a board of scientists, engineers or technical men, which is not the case.
Another aspect of the question involves the consideration of the nature of the functions and acts of the Head of the Patent Ofce.
"* * * commissioner in issuing or withholding patents, in reissues, interferences, and extensions, exercisesquasi-judicial junctions. Patents
are public records, and it is the duty of the Commissioner to give authenticated copies to any person, on payment of the legal fees." (40
Am. Jur. 537). (Italics supplied).
"* * *. The Commissioner has the only original initiatory" jurisdiction that exists up to the granting and delivering of a patent, and it is his duty
to decide whether the patent is new and whether it is the proper subject of a patent; and his action in awarding or refusing a patent is
a judicial junction. In passing on an application the commissioner should decide not only questions of law, but also questions of fact, as
whether there has been a prior public use or sale of the article invented. * * *." (60 C.J.S. 460). (Italics supplied).
The Director of Patents, exercising as he does judicial or quasi-judicial functions, it is reasonable to hold that a member of the bar, because
of his legal knowledge and training, should be allowed to practice before the Patent Ofce, without further examination or other qualifcation. Of
course, the Director of Patents, if he deems it advisable or necessary, may require that members of the bar practising before him enlist the
assistance of technical men and scientists in the preparation of papers and documents, such as, the drawing or technical description of an
invention or machine sought to be patented, in the same way that a lawyer fling an application for the registration of a parcel of land on behalf
of his client, is required to submit a plan and technical description of said land, prepared by a licensed surveyor.
But respondent Director claims that he is expressly authorized by the law to require persons desiring to practice or to do business before him
to submit to an examination, even if they are already members of the bar. He contends that our Patent Law, Republic Act No. 165, is
patterned after the United States Patent Law; and that the U. S. Patent Ofce in its Rules of Practice of the United States Patent Ofce in
Patent Cases prescribes an examination similar to that which he (respondent) has prescribed and scheduled. He invites our attention to the
following provisions of said Rules of Practice:
"Registration of attorneys and agents. A register of attorneys and a register of agents are kept in the Patent Ofce on which are entered the
names of all persons recognized as entitled to represent applicants before the Patent Ofce in the preparation and prosecution of applications
for patent. Registration in the Patent Ofce under the provisions of these rules shall only entitle the person registered to practice before the
Patent Ofce.
"(a) Attorneys at law. Any attorney at law in good standing admitted to practice before any United States Court or the highest court of any
State or Territory of the United States who fulflls the requirements and complied with the provisions of these rules may be admitted to practice
before the Patent Ofce and have his name entered on the register of attorneys.
*******
"(c) Requirement for registration. No person will be admitted to practice and register unless he shall apply to the Commissioner of Patents in
writing on a prescribed form supplied by the Commissioner and furnish all requested information and material; and shall establish to the
satisfaction of the Commissioner that he is of good moral character and of good repute and possessed of the legal and scientifc and
technical qualifcations necessary to enable him to render applicants for patent valuable service, and is otherwise competent to advise and
assist him in the presentation and prosecution of their application before the Patent Ofce. In order that the Commissioner may determine
whether a person seeking to have his name placed upon either of the registers has the qualifcations specifed, satisfactory proof of good
moral character and repute, and of sufcient basic training in scientifc and technical matters must be submitted and an examination which is
held from time to time must be taken and passed. The taking of an examination may be waived in the case of any person who has served
for three years in the examining corps of the Patent Ofce."
Respondent states that the promulgation of the Rules of Practice of the United States Patent Ofce in Patent Cases is authorized by the
United States Patent Law itself, which reads as follows:
"The Commissioner of Patents, subject to the approval of the Secretary of Commerce may prescribe rules and regulations governing
the recognition of agents, attorneys, or other persona representing applicants or other parties before his ofce, and may require of such
persons, agents, or attorneys, before being recognized as representatives of applicants or other persons, that they shall show they are of
good moral character and in good repute, are possessed of the necessary qualifcations to enable them to render to applicants or other
persons valuable service, and are likewise competent to advise and assist applicants or other persons in the presentation or prosecution of
their applications or other business before the Ofce. The Commissioner of Patents may, after notice and opportunity for a hearing, suspend or
exclude, either generally or in any particular case, from further practice before his ofce any person, agent, or attorney shown to be
incompetent or disreputable, or guilty of gross misconduct, or who refuses to comply with the said rules and regulations, or who shall, with
intent to defraud in any manner, deceive, mislead, or threaten any applicant or prospective applicant, or other person having immediate or
prospective business before the ofce, by word, circular, letter, or by advertising. The reasons for any such suspension or exclusion shall be
duly recorded. The action of the Commissioner may be reviewed upon the petition of the person so refused recognition or so suspended or
excluded by the district court of the United States for the District of Columbia under such conditions and upon such proceedings as the said
court may by its rules determine." (Italics supplied).
Respondent Director concludes that Section 78 of Republic Act No. 165 being: similar to the provisions of law just reproduced, then he is
authorized to prescribe the rules and regulations requiring that persons desiring to practice before him should submit to and pass an
examination. We reproduce said Section 78, Republic Act No. 165, for purposes of comparison:
"Sec. 78. Rules and regulations. The Director subject to the approval of the Secretary of Justice, shall promulgate the necessary rules and
regulations, not inconsistent with law, for the conduct of all business in the Patent Ofce."
The above provisions of Section 78 certainly and by fary are diferent from the provisions of the United States Patent Law as regards authority
to hold examinations to determine the qualifcations of those allowed to practice before the Patent Ofce. While the U. S. Patent Law
authorizes the Commissioner of Patents to require attorneys to show that they possess the necessary qualifcations and competence to render
valuable service to and advise and assist their clients in patent cases, which showing may take the form of a test or examination to be held by
the Commissioner, our Patent Law, Section 78, is silent on this important point. Our attention has not been called to any express provision
of our Patent Law, giving such authority to determine the qualifcations of persons allowed to practice before the Patent Ofce.
Section 551 of the Revised Administrative Code authorizes every chief of bureau to prescribe forms and make regulations or general orders not
inconsistent with law, to secure the harmonious and efcient administration of his branch of the service and to carry into full efect the laws
relating to matters within the jurisdiction of his bureau. Section 608 of Republic Act 1937, known as the Tarif and Customs Code of the
Philippines, provides that the Commissioner of Customs shall, subject to the approval of the Department Head, make all rules and regulations
necessary to enforce the provisions of said code. Section 338 of the National Internal Revenue Code, Commonwealth Act No. 466 as
amended, states that the Secretary of Finance, upon recommendation of the Collector of Internal Revenue, shall promulgate all needful rules
and regulations for the efective enforcement of the provisions of the code. We understand that rules and regulations have been promulgated
not only for the Bureaus of Customs and Internal Revenue, but also for other bureaus of the Government, to govern the transaction of business
in and to enforce the law for said bureaus.
Were we to allow the Patent Ofce, in the absence of an express and clear provision of law giving the necessary sanction, to require lawyers to
submit to and pass on examination prescribed by it before they are allowed to practice before said Patent Ofce, then there would be no
reason why other bureaus specially the Bureaus of Internal Revenue and Customs, where the business in the same area are more or less
complicated, such as the presentation of books of accounts, balance sheets, etc., assessments exemptions, depreciation, these as regards
the Bureau of Internal Revenue, and the classifcation of goods, imposition of customs duties, seizures, confscation, etc., as regards the
Bureau of Customs, may not also require that any lawyer practising before them or otherwise transacting business with them on behalf of
clients, shall frst pass an examination to qualify.
In conclusion, we hold that under the present law, members of the Philippine Bar authorized by this Tribunal to practice law, and in good
standing, may practice their profession before the Patent Ofce, for the reason that much of the business in said ofce involves the
interpretation and determination of the scope and application of the Patent Law and other laws applicable, as well as the presentation of
evidence to establish facts involved; that part of the functions of the Patent Director are judicial or quasijudicial, so much so that appeals from
his orders and decisions are, under the law, taken to the Supreme Court.
Paras, C.J., Bengzon, Padilla, Reyes A., Bautista Angelo, Labrador, Concepcion, Reyes, J.B.L., and Endencia, JJ.,concur.
G. R. No. L-19450
[ G. R. No. L-19450, May 27, 1965 ]
THE PEOPLE OF THE PHILIPPINES, PLAINTIFF AND APPELLEE. VS.
SIMPLICIO VILLANUEVA, DEFENDANT AND APPELLANT.
D E C I S I O N
PAREDES, J.:
On September 4, 1959, the Chief of Police of Alaminos, Laguna, charged Simplicio Villanuea !ith the crime of
"alicious "ischief, before the #ustice of the Peace Court of said municipalit$% Said accused !as represented b$
counsel de oficio, but later on replaced b$ counsel de parte% &he complainant in the same case !as represented
b$ Cit$ Attorne$Ariston 'ule of San Pablo Cit$, haing entered his appearance as priate(prosecutor, after
securing the permission of the Secretar$ of #ustice% &he condition of his appearance as such, !as that eer$
time he !ould appear at the trial of the case, he !ould be considered on official leae of absence, and that he
!ould not receie an$ pa$ment for his serices% &he appearance of Cit$ Attorne$ 'ule as priate prosecutor !as
)uestioned b$ the counsel for the accused, ino*ing the case of A)uino, et al% s% +lanco, et al, ,9 Phil% -4,
!herein it !as ruled that .!hen an attorne$ had been appointed to the position of Assistant Proincial 'iscal or
Cit$ 'iscal and therein )ualified, b$ operation of la!, he ceased to engage in priate la! practice%. Counsel then
argued that the #P Court in entertaining the appearance of Cit$ Attorne$ 'ule in the case is a iolation of the
aboe ruling, On /ecember 1,, 19-0 the #P issued an order sustaining the legalit$ of the appearance of Cit$
Attorne$ 'ule%
1nder date of #anuar$ 4, 19-1, counsel for the accused presented a ."otion to 2nhibit 'iscal 'ule from Acting as
Priate Prosecutor in this Case,. this time ino*ing Section 34, 5ule 14,, no! Sec% 35, 5ule 136, 5eised 5ules,
!hich bars certain attorne$s from practicing% Counsel claims that Cit$ Attorne$ 'ule falls under 7his limitation%
&he #P Court ruled on the motion b$ upholding the right of 'ule to appear and further stating that he 7'ule8 !as
not actuall$ engaged in priate la! practice% &his Order !as appealed to the C'2 of Laguna, presided b$ the
9on% 9ilarion 1% #arencio, !hich rendered :udgment on /ecember 40, 19-1, the pertinent portions of !hich
read;
.&he present case is one for malicious mischief% &here being no reseration b$ the offended part$ of the ciil
liabilit$, the ciil action !as deemed impliedl$ instituted !ith the criminal action% &he offended part$ had,
therefore, the right to interene in the case and lie represented b$ a legal counsel because of her interest in the
ciil liabilit$ of the accused%
.Sec% 31, 5ule 14, of the 5ules of Court proides that in the court of a :ustice of the peace a part$ ma$ conduct
his litigation in person, !ith the aid of an agent or friend appointed b$ him for that purpose, or !ith the aid of
an attorne$% Assistant Cit$ Attorne$ 'ule appeared in the #ustice of the Peace Court as ah agent or friend of the
offended part$% 2t does not appear that he !as being paid for his serices or that his appearance !as in a
professional capacit$% As Assistant Cit$ Attorne$ of Sail Pablo he had no control or interention !hatsoeer in
the prosecution of crimes committed in the municipalit$ of Alaminos, Laguna, because the prosecution of
criminal cases coming from Alaminos are handled b$ the Office of the Proincial 'iscal and not b$ the Cit$
Attorne$ of San Pablo% &here could be no possible conflict in the duties of Assistant Cit$ Attorne$ 'ule us
Assistant Cit$ Attorne$ of San Pablo and as priate prosecutor in this criminal case% On the other hand, us
alread$ pointed out, the offended part$ in this criminal case had a right to be represented b$ an agent or a
friend to protect her rights in the ciil action !hich !as impliedl$ instituted together !ith the criminal action%
.2n ie! of the foregoing, this Court holds that Asst% Cit$ Attorne$ Ariston /% 'ule ma$ appear before the #ustice
of the Peace Court in Alaminos, Lagunu as priate prosecutor in this criminal case as an agent or a friend of the
offended part$%
.<herefore, the appeal from the order of the #ustice of the Peace Court of Alaminos, Laguna, allo!ing the
appearance of Ariston /% 'ule as priate prosecutor is dismissed, !ithout costs%.
&he aboe decision is the sub:ect of the instant proceedings%
&he appeal should be dismissed, for patentl$ being !ithout merits%
Aside from the considerations adanced b$ the learned trial :udge, heretofore reproduced, and !hich <e
consider plausible, the fallac$ of the theor$ of defense counsel lies in his confused interpretation of Section 34
of 5ule 14, 7no! Sec% 35, 5ule 136, 5eised 5ules8, !hich proides that .no :udge or other official or emplo$ee
of the superior courts or of the office of the Solicitor =eneral, shall engage in priate practice as a member of
the bar or gie professional adice to clients%. he claims that Cit$ Attorne$ 'ule, in appearing as priate
prosecutor in the case !as engaging in priate practice% <e beliee that the isolated appearance of Cit$
Attorne$ 'ule did not constitute priate practice, !ithin the meaning and contemplation of the 5ules% Practice is
more than an isolated appearance, for it consists in fre)uent or customar$ action, a succession of acts of the
same *ind% 2n other !ords, it is fre)uent habitual e>ercise 7State s% Cotner, 14,, p% 1, 6, ?an% 6-4, 44 L5A,
@%S% ,-68% Practice of la! to fall !ithin the prohibition of statute has been interpreted as customaril$ or
habituall$ holding oneAs self out to the public, as a la!$er and demanding pa$ment for such serices 7State s%
+r$an, 4 S% B% 544, 96 @% C% -44, -4,8% &he appearance as counsel on one occasion, is not conclusie as
determinatie of engagement in the priate practice of la!% &he follo!ing obseration of the Solicitor =eneral is
note!orth$;
.Bssentiall$, the !ord priate practice of la! implies that one must hae presented himself to be in the actie
and continued Practice of the legal profession and that his professional serices aailable to the public for a
compensation, as a source of lielihood or in consideration of his said serices%.
'or one thing, it has neer been refuted that Cit$ Attorne$ 'ule had been gien permission b$ his immediate
superior, the Secretar$ of #ustice, to represent the complainant in the case at bar, !ho is a relatie%
Conformabl$ !ith all the foregoing, the decision appealed from should be, as it is hereb$ affirmed, in all
respects, !ith costs against appellant%
Bengzon, C. J., Concepcion, Reyes, J, B. L., Barrera, Dizon, Regala, Makalintal, Bengzon, J.
P. and Zaldivar, JJ., concur%
B.M. No. 553
EN BANC
[ B.M. No. 55, !u"e 17, 199 ]
MAURICIO C. ULEP, PETITIONER, VS. THE LEGAL CLINIC, INC.,
RESPONDENT.
R E S O L U T I O N
REGALADO, J.:
Petitioner prays this 5ourt Ato order the respondent to cease and desist from 8ssuing
advertisements similar to or of the same tenor as that of #nnexes 1#1 and 1B1 .of said
petition0 and to perpetually prohibit persons or entities from ma4ing advertisements
pertaining to the exercise of the law profession other than those allowed by law.A
The advertisements complained of by herein petitioner are as follows$
#nnex #
S,5!,T 9#!!8#",C
P&-+.++ for a valid marriage.
8nfo on D8@3!5,. #BS,75,.
#77D>9,7T. @8S#.
T, Please call$ &:%=+)-)
>,"#> &:%):/:, &:::+(%
5>8785, 875. 8:30 am - 6:00 pm
)=Flr. @ictoria Bldg.
D7 #ve., Mla.
#nnex B
"D#9 DIVORCE
D37 P#!<87S37
an #ttorney in Guam, is giving FREE BOOKS on Guam Divorce through The Legal Clinic
beginning Monday to Friday during ofce hours.
"uam divorce. Annulment of Marriage. Immigration Problems, Visa Ext. Quota/Non-
quota Res. & Special Retiree's Visa. Declaration of Absence. Remarriage to
Filipina Fiancees. Adoption. Investment in the Phil.US/Foreign Visa for Filipina
Spouse/Children. Call Marivic.
T, )F Victoria Bldg. 429 UN Ave.
>,"#> ,rmita, 9anila nr. DS ,mbassy
5>8785, 875.
E%F
Tel. 521-7232
&:%=):&%
&::=:+(%
&:%=+)-)
8t is the submission of petitioner that the advertisements above reproduced arechampertous,
unethical, demeaning of the law profession, and destructive of the confidence of the community in the
integrity of the members of the bar and that, as a member of the legal profession, he is ashamed and
offended by the said advertisements, hence the reliefs sought in his petition as hereinbefore 6uoted.
8n its answer to the petition, respondent admits the fact of publication of said advertisements at its
instance, but claims that it is not engaged in the practice of law but in the rendering of Alegal support
servicesA through paralegals with the use of modern computers and electronic machines. !espondent
further argues that assuming that the services advertised are legal services, the act of advertising
these services should be allowed supposedly in the light of the case of ;ohn !. Bates and
@an 31Steen vs. State Bar of #riGona.
E:F
reportedly decided by the United States Supreme
Court on June 7, 1977.
5onsidering the critical implications on the legal profession of the issues raised herein, we re6uired
the ..%0 8ntegrated Bar of the Philippines .8BP0, .:0 Philippine Bar #ssociation .PB#0, ./0 Philippine
>awyers1 #ssociation .P>#0, .(0 D.P. Homen >awyers1 5ircle .H8>3580, .&0 Homen >awyers
#ssociation of the, Philippines .H>#P0, and .-0Federacion 8nternational de #bogadas .F8D#0 to
submit their respective position papers on the controversy and, thereafter, their memoranda.
E/F
The
said bar associations readily responded and extended their valuable services and
cooperation of which this Court takes note with appreciation and gratitude.
The main issues posed for resolution before the 5ourt are whether or not the services offered by
respondent, The >egal 5linic, 8nc., as advertised by it constitutes practice of law and, in either case,
whether the same can properly be the subBect of the advertisements herein complained of.
Before proceeding with an in=depth analysis of the merits of this case, we deem it proper and
enlightening to present hereunder, excerpts from the respective position papers adopted by the
aforementioned bar associations and the memoranda submitted by them on the issues involved in
this bar matter.
%. 8ntegrated Bar of the Philippines:
? ? ?
7otwithstanding the subtle manner by which respondent endeavored to distinguish the two terms, i.e., Alegal
support servicesA vis=a=vis Alegal servicesA, common sense would readily dictate that the same are essentially
without substantial distinction. For who could deny that document search, evidence gathering, assistance to
layman in need of basic institutional services from government or non=government agencies li4e birth,
marriage, property, or business registration, obtaining documents li4e clearance, passports, local or foreign
visas, constitute practice of lawC
x x x
The 8ntegrated Bar of the Philippines .8BP0 does not wish to ma4e issue with respondent1s foreign citations.
Suffice it to state that the 8BP has made its position manifest, to wit, that it strongly opposes the view espoused
by respondent .to the effect that today it is alright to advertise one1s legal services0.
The 8BP accordingly declares in no uncertain terms its opposition to respondent1s act of establishing a Alegal
clinicA and of concomitantly advertising the same through newspaper publications.
The 8BP would therefore invo4e the administrative supervision of this onorable 5ourt to perpetually restrain
respondent from underta4ing highly unethical activities in the field of law practice as aforedescribed.
E(F
? ? ?
#. The use of the name AThe >egal 5linic, 8nc.A gives the impression that respondent corporation is being
operated by lawyers and that it renders legal services.
Hhile the respondent repeatedly denies that it offers legal services to the public, the advertisements in
6uestion give the impression that respondent is offering legal services. The Petition in fact simply assumes this
to be so, as earlier mentioned, apparently because this .is0 the effect that the advertisements have on the
reading public.
The impression created by the advertisements in 6uestion can be traced, first of all, to the very name being
used by respondent = AThe >egal 5linic, 8nc.A Such a name, it is respectfully submitted connotes the rendering
of legal services for legal problems, Bust li4e a medical clinic connotes medical services for medical problems.
9ore importantly, the term A>egal 5linicA connotes lawyers, as the term medical clinic connotes doctors.
Furthermore, the respondent1s name, as published in the advertisements subBect of the present case, appears
with .the0 scale.s0 of Bustice, which all the more reinforces the impression that it is being operated by members
of the bar and that it offers legal services. 8n addition, the advertisements in 6uestion appear with a picture and
name of a person being represented as a lawyer from Guam, and this practically removes
whatever doubt may still remain as to the nature of the service or services being
ofered.
8t thus becomes irrelevant whether respondent is merely offering Alegal support servicesA as claimed by it, or
whether it offers legal services as any lawyer actively engaged in law practice does. #nd it becomes
unnecessary to ma4e a distinction between Alegal servicesA and Alegal support services,A as the respondent
would have it. The advertisements in 6uestion leave no room for doubt in the minds of the reading public that
legal services are being offered by lawyers, whether true or not.
B. The advertisements in 6uestion are meant to induce the performance of acts contrary to law, morals, public
order and public policy.
8t may be conceded that, as the respondent claims, the advertisements in 6uestion are only meant to inform
the general public of the services being offered by it. Said advertisements, however, emphasiGe
a Guam divorce, and any law student ought to know that under the Family Code, there
is only one instance when a foreign divorce is recognized, and that is:
#rticle :-. x x x.
Hhere a marriage between a Filipino citiGen and a foreigner is validly celebrated and a divorce is thereafter
validly obtained abroad by the alien spouse capacitating him or her to remarry, the Filipino spouse shall have
capacity to remarry under Philippine >aw.
8t must not be forgotten, too, that the Family 5ode .defines0 a marriage as follows$
#rticle %. 9arriage is a special contract of permanent union between a man and a woman entered into in
accordance with law for the establishment of conBugal and family life. 8t is thefoundation of the family and an
inviolable social institution whose nature, conse6uences, and incidents are governed by law and not subBect .to
stipulation, except that marriage settlements may fix the property relation during the marriage within the limits
provided by this 5ode.
By simply reading the 6uestioned advertisements, it is obvious that the message being conveyed is
that Filipinos can avoid the legal conse6uences of a marriage celebrated in accordance with our law,
by simply going to Guam for a divorce. This is not only misleading, but encourages, or
serves to induce, violation of Philippine law. At the very least, this can be considered
"the dark side" of legal practice, where certain defects in Philippine laws are exploited
for the sake of proft. At worst, this is outright malpractice.
!ule %.+:. = # lawyer, shall not counsel or abet activities aimed at defiance of the law or at lessening
confidence in the legal system.
8n addition, it may also be relevant to point out that advertisements such as that shown in #nnex A#A
of the Petition, which contains a cartoon of a motor vehicle with the words A;ust 9arriedA on its
bumper and seems to address those planning a Asecret marriage,A if not suggesting a Asecret
marriage,A ma4es light of the Aspecial contract of permanent union,A the inviolable social institution,A
which is how the Family 5ode describes marriage, obviously to emphasiGe its sanctity and
inviolability. Horse, this particular advertisement appears to encourage marriages celebrated in
secrecy, which is suggestive of immoral publication of applications for a marriage license.
8f the article A!x for >egal ProblemsA is to be reviewed, it can readily be concluded that the above
impressions one may gather from the advertisements in 6uestion are accurate. The Sharon 5uneta=
"abby 5oncepcion example alone confirms what the advertisements suggest. ere it can be seen
that criminal acts are being encouraged or committed .a bigamous marriage in ong <ong or >as
@egas0 with impunity simply because the Burisdiction of Philippine courts does not extend to the place
where the, crime is committed.
,ven if it be assumed, arguendo, .that0 the Alegal support servicesA respondent offers do not
constitute legal services as commonly understood, the advertisements in 6uestion give the
impression that respondent corporation is being operated by 1lawyers and that it offers legal services,
as earlier discussed. Thus, the only logical conse6uence is that, in the eyes of an ordinary newspaper
reader, members of the bar themselves are encouraging or inducing the performance of acts which
are contrary to law, morals, good customs and the public good, thereby destroying and demeaning
the integrity of the Bar.
x x x
8t is respectfully submitted that respondent should be enBoined from causing the publication of the
advertisements in 6uestion, or any other advertisements similar thereto. 8t is also submitted that
respondent should be prohibited from further performing or offering some of the services it presently
offers, or, at the very least, from offering such services to the public in general.
The 8BP is aware of the fact that providing computeriGed legal research, electronic data gathering,
storage and retrieval, standardiGed legal forms, investigators for gathering of evidence, and li4e
services will greatly benefit the legal profession and should not be stifled but instead encouraged.
owever, when the conduct of such business by non=members of the Bar encroaches upon the
practice of law, there can be no choice but to prohibit such business.
#dmittedly, many of the services involved in the case at bar can be better performed by=specialists in
other fields, such as computer experts, who by reason of their having devoted time and effort
exclusively to such field cannot fulfill the exacting re6uirements for admission to the Bar. To prohibit
them from AencroachingA upon the legal profession will deny the profession of the great benefits and
advantages of modern technology. 8ndeed, a lawyer using a computer will be doing better than a
lawyer using a typewriter, even if both are .e6ual0 in s4ill.
Both the Bench and the Bar, however, should be careful not to allow or tolerate the illegal practice of
law in any form, not only for the protection of members of the Bar but also, and more importantly, for
the protection of the public. Technological development in the profession may be encouraged without
tolerating, but instead ensuring prevention of, illegal practice.
There might be nothing obBectionable if respondent is allowed to perform all of its services, but only if
such services are made available exclusively to members of the Bench and Bar. !espondent would
then be offering technical assistance, not legal services. #lternatively, the more difficult tas4 of
carefully distinguishing between which service may be offered to the public in general and which
should be made available exclusively to members of the Bar may be underta4en. This, however, may
re6uire further proceedings because of the factual considerations involved.
8t must be emphasiGed, however, that some of respondent1s services ought to be prohibited outright,
such as acts which tend to suggest or induce celebration abroad of marriages which are bigamous or
otherwise illegal and void under Philippine law. Hhile respondent may not be prohibited from simply
disseminating information regarding such matters, it must be re6uired to include, in the information
given, a disclaimer that it is not authoriGed to practice law, that certain course of action may be illegal
under Philippine law, that it is not authoriGed or capable of rendering a legal opinion, that a lawyer
should be consulted before deciding on which course of action to ta4e, and that it cannot recommend
any particular lawyer without subBecting itself to possible sanctions for illegal practice of law.
8f respondent is allowed to advertise, advertising should be directed exclusively at members of the
Bar, with a clear and unmista4able disclaimer that it is not authoriGed to practice law or perform legal
services.
The benefits of being assisted by paralegals cannot be ignored. But nobody should be allowed to
represent himself as a AparalegalA for profit, without such term being clearly defined by rule or
regulation, and without any ade6uate and effective means of regulating his activities. #lso, law
practice in a corporate form may prove to be advantageous to the legal profession, but before
allowance of such practice may be considered, the corporation1s #rticles of 8ncorporation and By=laws
must conform to each and every provision of the 5ode of Professional !esponsibility and the !ules of
5ourt.
E&F
:. Philippine Bar #ssociation$
???
!espondent asserts that it Ais not engaged in the practice of law but engaged in giving legal support
services to lawyers and laymen, through experienced paralegals, with the use of modern computers
and electronic machinesA .pars. : and /, 5omment0. This is absurd. Dn6uestionably, respondent1s
acts of holding out itself to the public under the trade name AThe >egal 5linic, 8nc.,A and soliciting
employment for its enumerated services fall within the realm of a practice which thus yields itself to
the regulatory powers of the Supreme 5ourt. For respondent to say that it is merely engaged in
paralegal wor4 is to 1 stretch credulity. !espondent1s own commercial advertisement which
announces a. certain#tty. Don Par4inson to be handling the fields of law belies its pretense. From all
indications, respondent AThe >egal 5linic, 8nc.A is offering and rendering legal servicesthrough its
reserve of lawyers. 8t has been held that the practice of law is not limited to the conduct of cases in
court, but includes drawing of deeds, incorporation, rendering opinions, and advising clients as to
their legal rights and then ta4e them to an attorney and as4 the latter to loo4 after their case in
court .See 9artin, >egal and ;udicial ,thics, %'*( ed., P. /'0.
8t is apt to recall that only natural persons can engage in the practice of law, and such limitation
cannot be evaded by a corporation employing competent lawyers to practice for it. 3bviously, this is
the scheme or device by which respondent AThe >egal 5linic, 8nc.A holds out itself to the public and
solicits employment of its legal services. 8t is an odious vehicle for deception, especially so when the
public cannot ventilate any grievance formalpractice against the business conduit. Precisely, the
limitation of practice of law to persons who have been duly admitted as members of the Bar .Sec. %,
!ule %/*, !evised !ules of 5ourt0 is to subBect the members to the discipline of the Supreme 5ourt.
#lthough respondent uses its business name, the persons and the lawyers who act for it are subBect
to court discipline. The practice of law is not a profession open to all who wish to engage in it nor can
it be assigned to another .See & #m. ;ur. :)+0. 8t is a personal right limited to persons who have
6ualified themselves under the law. 8t follows that not only respondent but also all the persons who
are acting for respondent are the persons engaged in unethical law practice.
E-F
/. Philippine >awyersA #ssociation$
The Philippine >awyers1 #ssociation1s position, in answer to the issues stated herein, are, to wit$
%. The >egal 5linic is engaged in the practice of law2
:. Such practice is unauthoriGed2
/. The advertisements complained of are not only unethical, but also misleading and patently immoral2 and
(. The onorable Supreme 5ourt has the power to suppress and punish the >egal 5linic and its corporate
officers for its unauthoriGed practice of law and for its unethical, misleading and immoral advertising.
? ? ?
!espondent posits that it is not engaged in the practice of law. 8t claims that it merely renders Alegal
support servicesA to lawyers, litigants and the general public as enunciated in the Primary Purpose
5lause of its #rticle.s0 of 8ncorporation. .See pages : to & of !espondent1s 5omment0. But its
advertised services, as enumerated above, clearly and convincingly show that it is indeed engaged in
law practice, albeit outside of court.
#s advertised, it offers the general public its advisory services on Persons and Family !elations >aw,
particularly regarding foreign divorces, annulment of marriages, secret marriages, absence and
adoption2 8mmigration >aws, particularly on visa related problems, immigration problems2 the
8nvestment >aw of the Philippines and such other related laws.
8ts advertised services unmista4ably re6uire the application of the aforesaid laws, the legal principles
and procedures related thereto, the legal advices based thereon and which activities call for legal
training, 4nowledge and experience.
#pplying the test laid down by the 5ourt in the aforecited #grava 5ase, the activities of respondent
fall s6uarely and are embraced in what lawyers and laymen e6ually term as Athe practice of law.A
E)F
(. D.P. Homen >awyers1 5ircle$
8n resolving the issues before this onorable 5ourt, paramount consideration should be given to the
protection of the general public from the danger of being, exploited by un6ualified persons or entities
who may be engaged in the practice of law.
#t present, becoming a lawyer re6uires one to ta4e a rigorous four=year course of study on top of a
four=year bachelor of arts or sciences course and then to ta4e and pass the bar examinations. 3nly
then, is a lawyer 6ualified to practice law.
Hhile the use of a paralegal is sanctioned in many Burisdictions as an aid to the administration of
Bustice, there are in those Burisdictions, courses of study andIor standards which would 6ualify these
paralegals to deal with the general public as such. Hhile it may now be the opportune time to
establish these courses of study andIor standards, the fact remains that at present, these do not exist
in the Philippines. In the meantime, this Honorable Court may decide to take measures
to protect the general public from being exploited by those who may be dealing with the
general public in the guise of being "paralegals" without being qualifed to do so.
8n the same manner, the general public should also be protected from the dangers which may be
brought about by advertising of legal services. Hhile it appears that lawyers are prohibited under the
present 5ode of Professional !esponsibility from advertising, it appears in the instant case that legal
services are being advertised not by lawyers but, by an entity staffed by Aparalegals.A 5learly,
measures should be ta4en to protect the general public from falling prey to those who advertise legal
services without being 6ualified to offer such services.A
E*F
# perusal of the 6uestioned advertisements of !espondent, however, seems to give the impression
that information regarding validity of marriages, divorce, annulment of marriage, immigration, visa
extensions, declaration of absence, adoption and foreign investment, which are in essence, legal
matters, will be given to them if they avail of its services. The !espondent1s name = The >egal 5linic,
8nc. = does not help matters. 8t gives the impression again that !espondent will or can cure the legal
problems brought to them. #ssuming that !espondent is, as claimed, staffed purely by paralegals, it
also gives the misleading impression that there are lawyers involved in The >egal 5linic, 8nc., as there
are doctors in any medical clinic, when only AparalegalsA are involved in The >egal 5linic, 8nc.
!espondent1s allegations are further belied by the very admissions of its President and maBority
stoc4holder, #tty. 7ogales, who gave an insight on the structure and main purpose of !espondent
corporation in the aforementioned AStarwee4A article.A
E'F
&. Homen >awyer1s #ssociation of the Philippines:
#nnexes A#A and ABA of the petition are clearly advertisements to solicit, cases for the purpose of gain
which, as provided for under the above cited law, .are0 illegal and against the 5ode of Professional
!esponsibility of lawyers in this country.
#nnex A#A of the petition is not only illegal in that it is an advertisement to solicit cases, but it is illegal
in that in bold letters it announces that the >egal 5linic, 8nc., could wor4 outIcause the celebration of a
secret marriage=which is not only illegal but immoral in this country. Hhile it is advertised that one has
to go to said agency and pay P&-+ for a valid marriage it is certainly fooling the public for valid
marriages in the Philippines are solemnized only by ofcers authorized to do so under the
law. And to employ an agency for said purpose of contracting marriage is not
necessary.
7o amount of reasoning that in the. DS#, 5anada and other countries the trend is towards allowing
lawyers to advertise their special s4ills to enable people to obtain from 6ualified practitioners legal
services for their particular needs can Bustify the use of advertisements such as are the subBect matter
of this petition, for one .cannot0 Bustify an illegal act even by whatever merit the illegal act may serve.
The law has yet to be amended so that such as act could become Bustifiable.
He submit further that these advertisements that seem to proBect that secret marriages and divorce
are possible in this country for a fee, when in fact it is not so, are highly reprehensible.
8t would encourage people to consult this clinic about how they could go about having a secret
marriage here, when it cannot nor should ever be attempted, and see4 advice on divorce, where in
this country there is none, except under the 5ode of 9uslim Personal >aws in the Philippines. It is
also against good morals and is deceitful because it falsely represents to the public to
be able to do that which by our laws cannot be done (and) by our Code of Morals
should not be done.
8n the case .of0 8n re Taguda, &/ Phil. /), the Supreme 5ourt held that solicitation for clients by an
attorney by circulars of advertisements, is unprofessional, and offenses of this character Bustify
permanent elimination from the Bar.
E%+F
-. Federacion 8nternacional de #bogadas$
???
%.) That entities admittedly not engaged in the practice of law, such as management consultancy
firms or travel agencies, whether run by lawyers or not, perform the services rendered by !espondent
does not necessarily lead to the conclusion that !espondent is not unlawfully practicing law. 8n the
same vein, however, the fact that the business of respondent .assuming it can be engaged in
independently of the practice of law0 involves 4nowledge of the law does not necessarily ma4e
respondent guilty of unlawful practice of law.
Ax x x 3f necessity, no one x x x acting as a consultant can render effective service unless he is familiar with
such statutes and regulations. e must be careful not to suggest a course of conduct which the law forbids. 8t
seems x x x clear that .the consultant1s0 4nowledge of the law, and his use of that 4nowledge as a factor in
determining what measures he shall recommend, do not constitute the practice of law x x x. 8t is not only
presumed that all men 4now the law, but it is a fact that most men have considerable ac6uaintance with the
broad features of the law x xx. 3ur 4nowledge of the law = accurate or inaccurate = moulds our conduct not only
when we are acting for ourselves, but when we are serving others. Ban4ers, li6uor dealers and laymen
generally possess rather precise 4nowledge of the laws touching their particular business or profession. # good
example is the architect, who must be familiar with Goning, building and fire prevention codes, factory and
tenement house statutes, and who draws plans and specifications in harmony with the law. This is not
practicing law.
ABut suppose the architect, as4ed by his client to omit a fire tower, replies that it is re6uired by the statute. 3r
the industrial relations expert cites, in support of some measure that he recommends, a decision of the
7ational >abor !elations Board. #re they practicing lawC 8n my opinion, they are not, provided no separate fee
is charged for the legal advice or information, and the legal 6uestion is subordinate and incidental to a maBor
non=legal problem.
A8t is largely a matter of degree and of custom.
A8f it were usual for one intending to erect a building on his land to engage a lawyer to advise him and the
architect in respect to the building code and the li4e, then an architect who performed this function would
probably be considered to be trespassing on territory reserved for licensed attorneys. >i4ewise, if the industrial
relations field had been pre=empted by lawyers, or custom placed a lawyer always at the elbow of the lay
personnel man. But this is not the case. The most important body of industrial relations experts are the officers
and business agents of the labor unions and few of them are lawyers. #mong the larger corporate employers, it
has been the practice for some years to delegate special responsibility in employee matters to a management
group chosen for their practical 4nowledge and s4ill in such matters, and without regard to legal training or lac4
of it. 9ore recently, consultants li4e the defendant have tendered to the smaller employers the same service
that the larger employers get from their own specialiGed staff.
AThe handling of industrial relations is growing into a recogniGed profession for which appropriate courses are
offered by our leading universities. The court should be very cautious about declaring EthatF a widespread, well=
established method of conducting business is unlawful, or that the considerable class of men who customarily
perform a certain function have no right to do so, or that the technical education given by our schools cannot
be used by the graduates in their business.
J8n determining whether a man is practicing law we should consider his wor4 for any particular client or
customer, as a whole. I can imagine defendant being engaged primarily to advise as to the
law defning his client's obligations to his employees, to guide his client along the path
charted by law. This, of course, would be the practice of the law. But such is not the
fact in the case before me. Defendant's primary eforts are along economic and
psychological lines. The law only provides the frame within which he must work, just as
the zoning code limits the kind of building the architect may plan. The incidental legal
advice or information defendant may give, does not transform his activities into the
practice of law. Let me add that if, even as a minor feature of his work, he performed
services which are customarily reserved to members of the bar, he would be practicing
law. For instance, if as part of a welfare program, he drew employees wills.
A#nother branch of defendant1s wor4 is the representation of the employer in the adBustment of grievances and
in collective bargaining, with or without a mediator. This is not per se the practice of law. #nyone may use an
agent for negotiations and may select an agent particularly s4illed in the subBect under discussion, and the
person appointed is free to accept the employment whether or not he is a member of the bar. ere, however,
there may be an exception where the business turns on a 6uestion of law. 9ost real estate sales are
negotiated by bro4ers who are not lawyers. But if the value of the land depends on a disputed right=of=way and
the principal role of the negotiator is to assess the probable outcome of the dispute and persuade the opposite
party to the same opinion, then it may be that only a lawyer can accept the assignment. 3r if a controversy
between an employer and his men grows from differing interpretations of a contract, or of a statute, it is 6uite
li4ely that defendant should not handle it. But 8 need not reach a definite conclusion here, since the situation is
not presented by the proofs.
ADefendant also appears to represent the employer before administrative agencies of the federal government,
especially before trial examiners of the 7ational >abor !elations Board. #n agency of the federal government,
acting by virtue of an authority granted by the 5ongress, may regulate the representation of parties before
such agency. The State of New Jersey is without power to interfere with such determination
or to forbid representation before the agency by one whom the agency admits. The
rules of the National Labor Relations Board give to a party the right to appear 'in
person, or by counsel, or by other representative. Rules and Regulations, September
11th, 1946, S. 203.31. Counsel here means a licensed attorney, and 'other
representative' one not a lawyer. In this phase of his work, defendant may lawfully do
whatever the Labor Board allows, even arguing questions purely legal." (Auerbacher v.
Wood, 53 A. 2d 800, cited in Statsky, Introduction to Paralegalism [1974], at pp. 154-
156.)
%.* From the foregoing, it can be said that a person engaged in a lawful calling .which may involve
4nowledge of the law0 is not engaged in the practice of law provided that$
.a0 The legal 6uestion is subordinate and incidental to a maBor non=legal problem2
.b0 The services performed are not customarily reserved to members of the bar2
.c0 7o separate fee is charged for the legal advice or information.
#ll these must be considered in relation to the wor4 for any particular client as a whole.
%.'. 8f the person involved is both lawyer and non=lawyer, the 5ode of Professional !esponsibility
succinctly states the rule of conduct$
A!ule %&.+* = # lawyer who is engaged in another profession or occupation concurrently with the practice of
law shall ma4e clear to his client whether he is acting as a lawyer or in another capacity.A
%.%+. 8n the present case, the >egal 5linic appears to render wedding services .See #nnex A#A,
Petition0. Services on routine, straightforward marriages, li4e securing a marriage license, and ma4ing
arrangements with a priest or a Budge, may not constitute practice of law. owever, if the problem is
as complicated as that described in A!x for >egal ProblemsA on the Sharon 5uneta=
"abby 5oncepcion=!ichard "omeG case, then what may be involved is actually the practice of law. 8f
a non=lawyer, such as the >egal 5linic, renders such services, then it is engaged in the unauthoriGed
practice of law.
%.%%. The >egal 5linic also appears to give information on divorce, absence, annulment of marriage
and visas .See #nnexes A#A and ABA, Petition0. Purely giving informational materials may not
constitute practice of law. The business is similar to that of a boo4store where the customer buys
materials on the subBect and determines by himself what courses of action to ta4e.
8t is not entirely improbable, however, that aside from purely giving information, the >egal 5linic1s
paralegals may apply the law to the particular problem of the client, and give legal advice. Such would
constitute unauthoriGed practice of law.
A8t cannot be claimed that the publication of a legal text which purports to say what the law is amounts to legal
practice. #nd the mere fact that the principles or rules stated in the text may be accepted by a particular reader
as a solution to his problem does not affect this. x x x #pparently it is urged that the conBoining of these two,
that is, the text and the forms, with advice as to how the forms should be filled out, constitutes the unlawful
practice of law. But that is the situation with many approved and accepted texts. Dacey1s boo4 is sold to the
public at large. There is no personal contact or relationship with a particular individual. 7or does there exist
that relation of confidence and trust so necessary to the status of attorney and client. T8S 8S T,
,SS,7T8#> 3F >,"#> P!#5T85, = T, !,P!,S,7T#T837 #7D #D@8S87" 3F # P#!T85D>#! P,!S37
87 # P#!T85D>#! S8TD#T837. #t most the boo4 assumes to offer general advice on common problems, and
does not purport to give personal advice on a specific problem peculiar to a designated or readily identified
person. Similarly the defendant1s publication does not purport to give personal advice on a specific problem
peculiar, to a designated or readily identified person in a particular situation = in the publication and sale of the
4its, such publication and sale did not constitute the unlawful practice of law x x x. There being no legal
impediment under the statute to the sale of the 4it, there was no proper basis for the inBunction against
defendant maintaining an office for the purpose of selling to persons see4ing a divorce, separation, annulment
or separation agreement any printed material or writings relating to matrimonial law or the prohibition in the
memorandum of modification of the Budgment against defendant having an interest in any publishing house
publishing his manuscript on divorce and against his having any personal contact with any prospective
purchaser. The record does fully support, however, the finding that for the charge of K)& or K%++ for the 4it, the
defendant gave legal advice in the course of personal contacts concerning particular problems which might
arise in the preparation and presentation of the purchaser1s asserted matrimonial cause of action or pursuit of
other legal remedies and assistance in the preparation of necessary documents .The inBunction therefore
sought to0 enBoin conduct constituting the practice of law, particularly with reference to the giving of advice and
counsel by the defendant, relating to specific problems of particular individuals in connection with a divorce,
separation, annulment of separation agreement sought and should be affirmed.A .State v. Hinder, /(*, 7LS :d
:)+ E%')/F, cited in Stats4y, supra at p. %+%.0
%.%:. !espondent, of course, states that its services are Astrictly non=diagnostic, non=advisory.A 8t is
not controverted, however, that if the services Jinvolve giving legal advice orcounselling,A such would
constitute practice of law .5omment, par. -.:0. 8t is in this light that F8D# submits that a factual in6uiry
may be necessary for the Budicious disposition of this case.
x x x
:.%+. #nnex A#A may be ethically obBectionable in that it can give the impression .or perpetuate the
wrong notion0 that there is a secret marriage. Hith all the solemnities, formalities and other re6uisites
of marriages .See #rticles :, et se6., Family 5ode0, no Philippine marriage can be secret.
:.%%. #nnex ABA may li4ewise be ethically obBectionable. The second paragraph thereof .which is not
necessarily related to the first paragraph0 fails to state the limitation that only Aparalegal servicesA or
Alegal support servicesA, and not legal services, are available.A
E%%F
# prefatory discussion on the meaning of the phrase Apractice of lawA becomes exigent for a proper
determination of the issues raised by the petition at bar. 3n this score, we note that the clause
Apractice of lawA has long been the subBect of Budicial construction and interpretation. The courts have
laid down general principles and doctrines explaining the meaning and scope of the term, some of
which we now ta4e into account.
Practice of law means any activity, in or out of court, which re6uires the application of law, legal
procedures, 4nowledge, training and experience. To engage in the practice of law is to perform those
acts which are characteristic of the profession. "enerally, to practice law is to give advice or render
any 4ind of service that involves legal 4nowledge or s4ill.
E%:F
The practice of law is not limited to the conduct of cases in court. 8t includes legal advice and counsel,
and the preparation of legal instruments and contracts by which legal rights are secured, although
such matter may or may not be pending in a court.
E%/F
8n the practice of his profession, a licensed attorney at law generally engages in three principal types
of professional activity$ legal advice and instructions to clients to inform them of their rights and
obligations, preparation for clients of documents re6uiring 4nowledge of legal principles not
possessed by ordinary layman, and appearance for clients before public tribunals which possess
power and authority to determine rights of life, liberty, and property according to law, in order to assist
in proper interpretation and enforcement of law.
E%(F

Hhen a person participates in a trial and advertises himself as a lawyer, he is in the practice of law.
E%&F
One who confers with clients, advises them as to their legal rights and then takes the
business to an attorney and asks the latter to look after the case in court, is also
practicing law.
E%-F
Giving advice for compensation regarding the legal status and rights of
another and the conduct with respect thereto constitutes a practice of law.
E%)F
One who
renders an opinion as to the proper interpretation of a statute, and receives pay for it,
is, to that extent, practicing law.
E%*F
8n the recent case of 5ayetano vs. 9onsod.
E%'F
after citing the doctrines in several cases, we
laid down the test to determine whether certain acts constitute "practice of law," thus:
Blac4 defines Apractice of lawA as$
AThe rendition of services re6uiring the 4nowledge and the application of legal principles and techni6ue to
serve the interest of 1 another with his consent. 8t is not limited to appearing in court, or advising and assisting
in the conduct of litigation, but embraces the preparation of pleadings, and other papers incident to .actions
and special proceedings, conveyancing, the preparation of legal instruments of all 4inds, and the giving of all
legal advice to clients. 8t embraces all advice to clients and all actions ta4en for them in matters connected with
the law.A
The practice of law is not limited to the conduct of cases in court. .>and Title #bstract and Trust 5o.
v. Dwor4en, 129 Ohio St. 23, 193 N.E. 650). A person is also considered to be in the
practice of law when he:
Ax x x for valuable consideration engages in the business of advising persons, firms, associations or
corporations as to their rights under the law, or appears in a representative capacity as an advocate in
proceedings, pending or prospective, before any court, commissioner, referee, board, body, committee, or
commission constituted by law or authoriGed to settle controversies and there, in such representative capacity,
performs any act or acts for the purpose of obtaining or defending the rights of their clients under the law.
3therwise stated, one who, in a representative capacity, engages in the business of advising clients as to their
rights under the law, or while so engaged performs any act or acts either in court or outside of court for that
purpose, is engaged in the practice of law. .State ex. rel.9c4ittric4 v. 5.S. Dudley and 5o., %+: S.H. :d *'&,
/(+ 9o. *&:0.A
This 5ourt, in the case of Philippine >awyers #ssociation v. #grava .%+& Phil. %)/, %)-=%))0, stated$
AThe practice of law is not limited to the conduct of cases or litigation in court2 it embraces the preparation of
pleadings and other papers incident to actions and special proceedings, the management of such actions and
proceedings on behalf of clients before Budges and courts, and in addition, conveying. 8n general, all advice to
clients, and all action ta4en for them in matters connected with the law incorporation services, assessment and
condemnation services contemplating an appearance before a Budicial body, the foreclosure of a mortgage,
enforcement of a creditor1s claim in ban4ruptcy and insolvency proceedings, and conducting proceedings in
attachment, and in matters of estate and guardianship have been held to constitute law practice, as do the
preparation and drafting of legal instruments, where the wor4 done involves the determination by the trained
legal mind of the legal effect of facts and conditions. .5 Am. Jr. p. 262, 263).
APractice of law under modern conditions consists in no small part of wor4 performed outside of any court and
having no immediate relation to proceedings in court. 8t embraces conveyancing, the giving of legal advice on a
large variety of subBects, and the preparation and execution of legal instruments covering an extensive field of
business and trust relations and other affairs. #lthough these transactions may have no direct connection with
court proceedings, they are always subBect to become involved in litigation. They re6uire in many aspects a
high degree of legal s4ill, a wide experience with men and affairs, and great capacity for adaptation to difficult
and complex situations. These customary functions of an attorney or counselor at law bear an intimate relation
to the administration of Bustice by the courts. 7o valid distinction, so far as concerns the 6uestion set forth in
the order, can be drawn between that part of the wor4 of the lawyer which involves appearance in court and
that part which involves advice and drafting of instruments in his office. 8t is of importance to the welfare of the
public that these manifold customary functions be performed by persons possessed of ade6uate learning and
s4ill, of sound moral character, and acting at all times under the heavy trust obligations to clients which rests
upon all attorneys. .9oran, 5omments on the !ules of 5ourt, @ol. / E%')/ ed.F, pp. --&=---, citing 8n !e
3pinion of the ;ustices E9ass.F, %'( 7.,. /%/, 6uoted in !hode 8s. Bar #ssoc. v. #utomobile Service #ssoc.
E!.8.F %)' #. %/', %((0.A
The practice of law, therefore, covers a wide range of activities in and out of court. #pplying the
aforementioned criteria to the case at bar, we agree with the perceptive findings and observations of
the aforestated bar associations that the activities of respondent, as advertised, constitute Apractice of
law.A
The contention of respondent that it merely offers legal support services can neither be seriously
considered nor sustained. Said proposition is belied by respondent1s own description of the services it
has been offering, to wit$
A>egal support services basically consist of giving ready information by trained paralegals to laymen
and lawyers, which are strictly non=diagnostic, non=advisory, through the extensive use of computers
and modern information technology in the gathering, processing, storage, transmission and
reproduction of information and, communication, such as computeriGed, legal research2 encoding and
reproduction of. documents and pleadings prepared by laymen or lawyers2 document search2
evidence gathering2 locating parties or witnesses to a case2 fact finding investigations2 and assistance
to laymen in need of basic institutional services from government or non=government agencies, li4e
birth, marriage, property, or business registrations2 educational or employment records or
certifications, obtaining documentation li4e clearances, passports, local or foreign visas2 giving
information about laws of other countries that they may find useful, li4e foreign divorce, marriage or
adoption laws that they can avail of preparatory to emigration to that foreign country, and other
matters that do not involve representation of clients in court2 designing and installing computer
systems, programs, or software for the efficient management of law offices, corporate legal
departments, courts, and other entities engaged in dispensing or administering legal services.A
E:+F
Hhile some of the services being offered by respondent corporation merely involve mechanical and
technical 4now=how, such as the installation of computer systems and programs for the efficient
management of law offices, or the computeriGation of research aids and materials, these will not
suffice to Bustify an exception to the general rule.
Hhat is palpably clear is that respondent corporation gives out legal information to laymen and
lawyers. 8ts contention that such function is non=advisory and non=diagnostic is more apparent than
real. 8n providing information, for example, about foreign laws on marriage, divorce and adoption, it
strains the credulity of this 5ourt that all that respondent corporation will simply do is loo4 for the law,
furnish a copy thereof to the client, and stop there as if it were merely a boo4store. Hith its attorneys
and so called paralegals, it will necessarily have to explain to the client the intricacies of the law and
advise him or her on the proper course of action to be ta4en as may be provided for by said law. That
is what its advertisements represent and for which services it will conse6uently charge and be paid.
That activity falls s6uarely within the Burisprudential definition of Apractice of law.A Such a conclusion
will not be altered by the fact that respondent corporation does not represent clients in court since law
practice, as the weight of authority holds, is not limited merely to court appearances but extends to
legal research, giving legal advice, contract drafting, and so forth.
The aforesaid conclusion is further strengthened by an article published in the January 13,
1991 issue of the Starweek /The Sunday Magazine of the Philippine Star, entitled "Rx
for Legal Problems," where an insight into the structure, main purpose and operations
of respondent corporation was given by its own "proprietor," Atty. Rogelio P. Nogales:
This is the 4ind of business that is transacted everyday at The >egal 5linic, with offices on the
seventh floor of the Victoria Building along U.N. Avenue in Manila. No matter what the
client's problem, and even if it is as complicated as the Cuneta-Concepcion domestic
situation, Atty. Nogales and his staf of lawyers, who, like doctors, are "specialists" in
various felds, can take care of it. The Legal Clinic, Inc. has specialists in taxation and
criminal law, medico-legal problems, labor, litigation and family law. These specialists
are backed up by a battery of paralegals, counsellors and attorneys.
#tty. 7ogales set up The >egal 5linic in %'*(. 8nspired by the trend in the medical field toward
specialiGation, it caters to clients who cannot afford the services of the big law firms.
The >egal 5linic has regular and wal4=in clients. AHhen they come, we start by analyGing the
problem. That1s what doctors do also. They as4 you how you contracted what1s bothering you, they
ta4e your temperature, they observe you for the symptoms, and so on. That1s how we operate, too.
#nd once the problem has been categoriGed, then it1s referred to one of our specialists.A
There are cases which do not, in medical terms, re6uire surgery or, follow=up treatment. These The
>egal 5linic disposes of in a matter of minutes. AThings li4e preparing a simple deed of sale or an
affidavit of loss can be ta4en care of by our staff or, if this were a hospital, the residents or the interns.
He can ta4e care of these matters on a while you wait basis. #gain, 4ung baga sa ospital, out=
patient, hindi 4ailangang ma=confine. 8t1s Bust li4e a common cold or diarrhea,A explains #tty. 7ogales.
Those cases which re6uire more extensive AtreatmentA are dealt with accordingly. A8f you had a rich
relative who died and named you her sole heir, and you stand to inherit millions of pesos of property,
we would refer you to a specialist in taxation. There would be real estate taxes and arrears which
would need to be put in order, and your relative is even taxed by the state for the right to transfer her
property, and only a specialist in taxation would be properly trained to deal with that problem. 7ow, if
there were other heirs contesting your rich relative1s will, then you would need a litigator, who 4nows
how to arrange the problem for presentation in court, and gather evidence to support the case.A
E:%F
That fact that the corporation employs paralegals to carry Mout its services is not controlling. Hhat is
important is that it is engaged in the practice of law by virtue of the nature of the services it renders
which thereby brings it within the ambit of the statutory prohibitions against the advertisements which
it has caused to be published and are now assailed in this proceeding.
Further, as correctly and appropriately pointed out by the D.P. H8>358, said reported facts, sufficiently
establish that the main purpose of respondent is to serve as a one=stop=shop of sorts for various legal
problems wherein a client may=avail of legal services from simple documentation to complex litigation
and corporate underta4ings. 9ost of these services are undoubtedly beyond the domain of
paralegals, but rather, are exclusive functions of lawyers engaged in the practice of law.
E::F
8t should be noted that in our Burisdiction the services being offered by private respondent which
constitute practice of law cannot be performed by paralegals. 3nly a person duly admitted as a
member of the bar, or hereafter admitted as such in accordance with the provisions of the !ules of
5ourt, and who is in good and regular standing, is entitled to practice law.
E:/F
Public policy re6uires that the practice of law be limited to those individuals found duly 6ualified in
education and character. The permissive right conferred on the lawyers is an individual and limited
privilege subBect to withdrawal if he fails to maintain proper standards of moral and professional
conduct. The purpose is to protect the public, the court, the client and the bar from the 1incompetence
or dishonesty1 of those unlicensed to practice law and not subBect to the disciplinary control of the
court.
E:(F
The same rule is observed in the #merican Burisdiction wherefrom respondent would wish to draw
support for his thesis. The doctrines there also stress that the practice of law is limited to those who
meet the re6uirements for, and have been admitted to, the bar, and various statutes or rules
specifically so provide.
E:&F
The practice of law is not a lawful business except for members of
the bar who have complied with all the conditions required by statute and the rules of
court. Only those persons are allowed to practice law who, by reason of attainments
previously acquired through education and study, have been recognized by the courts
as possessing profound knowledge of legal science entitling them to advise, counsel
with, protect, or defend the rights, claims, or liabilities of their clients, with respect to the
construction, interpretation, operation and efect of law.
E:-F
The justifcation for excluding
from the practice of law those not admitted to the bar is found, not in the protection of
the bar from competition, but in the protection of the public from being advised and
represented in legal matters by incompetent and unreliable persons over whom the
judicial department can exercise little control.
E:)F
He have to necessarily and definitely reBect respondent1s position that the concept in theUnited
States of paralegals as an occupation separate from the law profession be adopted in
this jurisdiction. Whatever may be its merits, respondent cannot but be aware that this
should frst be a matter for judicial rules or legislative action, and not of unilateral
adoption as it has done.
Paralegals in the United States are trained professionals. As admitted by respondent,
there are schools and universities there which ofer studies and degrees in paralegal
education, while there are none in the Philippines.
E:*F
As the concept of the "paralegal" or
"legal assistant" evolved in the United States, standards and guidelines also evolved to
protect the general public. One of the major standards or guidelines was developed by
the American Bar Association which set up Guidelines for the Approval of Legal
Assistant Education Programs (1973). Legislation has even been proposed to certify
legal assistants. There are also associations of paralegals in the United States with
their own code of professional ethics, such as the National Association of Legal
Assistants, Inc. and the American Paralegal Association.
E:'F
8n the Philippines, we still have a restricted concept and limited acceptance of what may
be considered as paralegal service. As pointed out by FIDA, some persons not duly
licensed to practice law are or have been allowed limited representation in behalf of
another or to render .legal services, but such allowable services are limited in scope
and extent by the law, rules or regulations granting permission therefor.
E/+F
#ccordingly, we have adopted the #merican Budicial policy that, in the absence of constitutional or
statutory authority, a person who has not been admitted as an attorney cannot practice law for the
proper administration of Bustice cannot be hindered by the unwarranted intrusion of an unauthoriGed
and uns4illed person into the practice of law.
E/%F
That policy should continue to be one of
encouraging persons who are unsure of their legal rights and remedies to seek legal
assistance only from persons licensed to practice law in the state.
E/:F
#nent the issue on the validity of the 6uestioned advertisements, the 5ode of Professional
!esponsibility provides that a lawyer in ma4ing 4nown his legal services shall use only true, honest,
fair, dignified and obBective information or statement of facts.
E//F
He is not supposed to use or
permit the use of any false, fraudulent, misleading, deceptive, undignifed, self-
laudatory or unfair statement or claim regarding his qualifcations or legal services.
E/(F
Nor shall he pay or give something of value to representatives of the mass media in
anticipation of, or in return for, publicity to attract legal business.
E/&F
Prior to the adoption
of the Code of Professional Responsibility, the Canons of Professional Ethics had also
warned that lawyers should not resort to indirect advertisements for professional
employment, such as furnishing or inspiring newspaper comments, or procuring his
photograph to be published in connection with causes in which the lawyer has been or
is engaged or concerning the manner of their conduct, the magnitude of the interest
involved, the importance of the lawyer's position, and all other like self-laudation.
E/-F
The standards of the legal profession condemn the lawyer1s advertisement, of his talents. # lawyer
cannot, without violating the ethics of his profession, advertise his talents or s4ills as in a manner
similar to a merchant advertising his goods.
E/)F
The proscription against advertising of legal
services or solicitation of legal business rests on the fundamental postulate that the
practice of law is a profession. Thus, in the case of The Director of Religious Afairs
vs. Estanislao R. Bayot
E/*F
an advertisement, similar to those of respondent which are
involved in the present proceeding,
E/'F
was held to constitute improper advertising or
solicitation.
The pertinent part of the decision therein reads$
8t is undeniable that the advertisement in 6uestion was a flagrant violation by the respondent of the
ethics of his profession, it being a braGen solicitation of business from the public. Section :& of !ule
%:) expressly provides among other things that Athe practice of soliciting cases at law for the purpose
of gain, either personally or thru paid agents or bro4ers, constitutes malpractice.A 8t is highly unethical
for an attorney to advertise his talents or s4ill as a merchant advertises his wares. >aw is a profession
and not a trade. The lawyer degrades himself and his profession who stoops to and adopts the
practices of mercantilism by advertising his services or offering them to the public. #s a member of
the bar, he defiles the temple of Bustice with mercenary activities as the money=changers of old defiled
the temple of Jehovah. "The most worthy and efective advertisement possible, even for
a young lawyer, * * * is the establishment of a well-merited reputation for professional
capacity and fdelity to trust. This cannot be forced but must be the outcome of
character and conduct." (Canon 27, Code of Ethics.)
He repeat, the canons of the profession tell us that the best advertising possible for a lawyer is a
well=merited reputation for professional capacity and fidelity to trust, which must be earned as the
outcome of character and conduct. "ood and efficient service to a client as well as to the community
has a way of publiciGing itself and catching public attention. That publicity is a normal by=product of
effective service which is right and proper. # good and reputable lawyer needs no artificial stimulus to
generate it and to magnify his success. e easily sees the difference between a normal by=product of
able service and the unwholesome result of propaganda.
E(+F
3f course, not all types of advertising or solicitation are prohibited. The canons of the profession
enumerate exceptions to the rule against advertising or solicitation and define the extent to which
they may be underta4en. The exceptions are of two broad categories, namely, those which are
expressly allowed and those which are necessarily implied from the restrictions.
E(%F
The first of such exceptions is the publication in reputable law lists, in a manner consistent, with the
standards of conduct imposed by the canons, of brief biographical and informative data. ASuch data
must not be misleading and may include only a statement of the lawyer1s name and the names of his
professional associates2 addresses, telephone numbers, cable addresses2 branches of law practiced2
date and place of birth and admission to the bar2 schools attended with dates of graduation, degrees
and other educational distinction2 public or 6uasi=public offices2 posts of honor2 legal authorships2
legal teaching positions2 membership and offices in bar associations and committees thereof, in legal
and scientific societies and legal fraternities2 the fact of listings in other reputable law lists2 the names
and addresses of references2 and, with their written consent, the names of clients regularly
represented.A
E(:F
The law list must be a reputable law list published primarily for that purpose2 it cannot be a mere
supplemental feature of a paper, magaGine, trade Bournal or periodical which is published principally
for other purposes. For that reason, a lawyer may not properly publish his brief biographical and
informative data in a daily paper, magaGine, trade Bournal or society program. 7or may a lawyer
permit his name to be published in a law list the conduct, management or contents of which are
calculated or li4ely to deceive or inBure the public or the bar, or to lower the dignity or standing of the
profession.
E(/F
The use of an ordinary simple professional card is also permitted. The card may contain only a
statement of his name, the name of the law firm which he is connected with, address, telephone
number and special branch of law practiced. The publication of a simple announcement of the
opening of a law firm or of changes in the partnership, associates, firm name or office address, being
for the convenience of the profession, is not obBectionable. e may li4ewise have his name listed in a
telephone directory but not under a designation of special branch of law.
E((F
@erily, ta4ing into consideration the nature and contents of the advertisements for which respondent is
being ta4en to tas4, which even includes a 6uotation of the fees charged by said respondent
corporation for services rendered, we find and so hold that the same definitely do not and
conclusively cannot fall under any of the above=mentioned exceptions.
The ruling in the case of Bates, et al. vs. State Bar of Arizona.
E(&F
which is repeatedly invoked
and constitutes the justifcation relied upon by respondent, is obviously not applicable
to the case at bar. Foremost is the fact that the disciplinary rule involved in said case
explicitly allows a lawyer, as an exception to the prohibition against advertisements by
lawyers, to publish a statement of legal fees for an initial consultation or the availability
upon request of a written schedule of fees or an estimate of the fee to be charged for
the specifc services. No such exception is provided for, expressly or impliedly, whether
in our former Canons of Professional Ethics or the present Code of Professional
Responsibility. Besides, even the disciplinary rule in the Bates case contains a proviso
that the exceptions stated therein are "not applicable in any state unless and until it is
implemented by such authority in that state."
E(-F
This goes to show that an exception to
the general rule, such as that being invoked by herein respondent, can be made only if
and when the canons expressly provide for such an exception. Otherwise, the
prohibition stands, as in the case at bar.
8t bears mention that in a survey conducted by the #merican Bar #ssociation after the decision in
Bates, on the attitude of the public about lawyers after viewing television commercials, it was found
that public opinion dropped significantly
E()F
with respect to these characteristics of lawyers:
Trustworthy from )%N to %(N
Professional from )%N to %(N
onest from -&N to %(N
Dignified from (&N to %(N
Secondly, it is our firm belief that with the present situation of our legal and Budicial systems, to allow
the publication of advertisements of the 4ind used by respondent would only serve to aggravate what
is already a deteriorating public opinion of the legal profession whose integrity has consistently been
under attac4 lately by media and the community in general. #t this point in time, it is of utmost
importance in the face of such negative, even if unfair, criticisms at times, to adopt and maintain that
level of professional conduct which is beyond reproach, and to exert all efforts to regain the high
esteem formerly accorded to the legal profession.
8n sum, it is undoubtedly a misbehavior on the part of the lawyer, subBect to disciplinary action, to
advertise his services except in allowable instances
E(*F
or to aid a layman in the unauthorized
practice of law.
E('F
Considering that Atty. Rogelio P. Nogales, who is the prime
incorporator, major stockholder and proprietor of The Legal Clinic, Inc. is a member of
the Philippine Bar, he is hereby reprimanded, with a warning that a repetition of the
same or similar acts which are involved in this proceeding will be dealt with more
severely.
Hhile we deem it necessary that the 6uestion as to the legality or illegality of the purposeIs for which
the >egal 5linic, 8nc. was created should be passed upon and determined, we are constrained to
refrain from lapsing into an obiter on that aspect since it is clearly not within the adBudicative
parameters of the present proceeding which is merely administrative in nature. 8t is, of course,
imperative that this matter be promptly determined, albeit in a different proceeding and forum, since,
under the present state of our law and Burisprudence, a corporation cannot be organiGed for or
engage in the practice of law in this country. This interdiction, Bust li4e the rule against unethical
advertising, cannot be subverted by employing some so=called paralegals supposedly rendering the
alleged support services.
The remedy for the apparent breach of this prohibition by respondent is the concern and province of
the Solicitor "eneral who can institute the corresponding 6uo warranto action,
E&+F
after due
ascertainment of the factual background and basis for the grant of respondent's
corporate charter, in light of the putative misuse thereof. That spin-of from the instant
bar matter is referred to the Solicitor General for such action as may be necessary
under the circumstances.
A!!"RDIN#L, the Court Resolved to RESTRAIN and ENJOIN herein respondent, The
Legal Clinic, Inc., from issuing or causing the publication or dissemination of any
advertisement in any form which is of the same or similar tenor and purpose as
Annexes "A" and "B" of this petition, and from conducting, directly or indirectly, any
activity, operation or transaction proscribed by law or the Code of Professional Ethics
as indicated herein. Let copies of this resolution be furnished the Integrated Bar of
the Philippines, the Ofce of the Bar Confdant, and the Ofce of the Solicitor General
for appropriate action in accordance herewith.
-arvasa, C.J., Cruz, Feliciano, Padilla, Bidin, Grio-Aquino, Davide, Jr.,
Romero, Nocon, Bellosillo, Melo, andQuiason, JJ., concur.
G.R. No. 100113
EN BANC
[ G.R. No. 10011, #e$%e&ber 0, 1991 ]
RENATO L. CAYETANO, PETITIONER, VS. CHRISTIAN MONSOD,
HON. JOVITO R. SALONGA, COMMISSION ON APPOINTMENTS, AND
HON. GUILLERMO CARAGUE, IN HIS CAPACITY AS SECRETARY OF
BUDGET AND MANAGEMENT, RESPONDENTS.
D E C I S I O N
PARAS, J.:
We are faced here with a controversy of far-reaching proportions. While ostensibly only
legal issues are involved, the Court's decision in this case would indubitably have a
profound efect on the political aspect of our national existence.
The 1987 Constitution provides in Section 1 (1), Article IX-C:
"There shall be a Commission on Elections composed of a Chairman and six
Commissioners who shall be natural-born citizens of the Philippines and, at the time of
their appointment, at least thirty-fve years of age, holders of a college degree, and
must not have been candidates for any elective position in the immediately preceding
elections. However, a majority thereof, including the Chairman, shall be members of
the Philippine Bar who have been engaged in the practice of law for at least ten years."
(Italics supplied)
The aforequoted provision is patterned after Section 1(1), Article XII-C of the 1973
Constitution which similarly provides:
"There shall be an independent Commission on Elections composed of a Chairman
and eight Commissioners who shall be natural-born citizens of the Philippines and, at
the time of their appointment, at least thirty-fve years of age and holders of a college
degree. However, a majority thereof, including the Chairman, shall be members of the
Philippine Bar who have been engaged in the practice of law for at least ten years."
(Italics supplied)
Regrettably, however, there seems to be no jurisprudence as to what constitutes
practice of law as a legal qualifcation to an appointive ofce.
Black defnes "practice of law" as:
"The rendition of services requiring the knowledge and the application of legal
principles and technique to serve the interest of another with his consent. It is not
limited to appearing in court, or advising and assisting in the conduct of litigation, but
embraces the preparation of pleadings, and other papers incident to actions and
special proceedings, conveyancing, the preparation of legal instruments of all kinds,
and the giving of all legal advice to clients. It embraces all advice to clients and all
actions taken for them in matters connected with the law. An attorney engages in the
practice of law by maintaining an ofce where he is held out to be an attorney, using a
letterhead describing himself as an attorney, counseling clients in legal matters,
negotiating with opposing counsel about pending litigation, and fxing and collecting
fees for services rendered by his associate." (Black's Law Dictionary, 3
rd
ed.)
The practice of law is not limited to the conduct of cases in court. (Land Title Abstract
and Trust Co. v. Dworken, 129 Ohio St. 23, 193 N. E. 650) A person is also considered
to be in the practice of law when he:
"x x x for valuable consideration engages in the business of advising person, frms,
associations or corporations as to their rights under the law, or appears in a
representative capacity as an advocate in proceedings pending or prospective, before
any court, commissioner, referee, board, body, committee, or commission constituted
by law or authorized to settle controversies and there, in such representative capacity
performs any act or acts for the purpose of obtaining or defending the rights of their
clients under the law. Otherwise stated, one who, in a representative capacity,
engages in the business of advising clients as to their rights under the law, or while so
engaged performs any act or acts either in court or outside of court for that purpose, is
engaged in the practice of law." (State ex. rel. Mckittrick v. C.S. Dudley and Co., 102
S.W. 2d 895, 340 Mo. 852)
This Court in the case of Philippine Lawyers Association v. Agrava, (105 Phil. 173, 176-
177) stated:
"The practice of law is not limited to the conduct of cases or litigation in court; it
embraces the preparation of pleadings and other papers incident to actions and special
proceedings, the management of such actions and proceedings on behalf of clients
before judges and courts, and in addition, conveying. In general, all advice to clients,
and all action taken for them in matters connected with the law incorporation services,
assessment and condemnation services contemplating an appearance before a judicial
body, the foreclosure of a mortgage, enforcement of a creditor's claim in bankruptcy
and insolvency proceedings, and conducting proceedings in attachment, and in matters
of estate and guardianship have been held to constitute law practice, as do the
preparation and drafting of legal instruments, where the work done involves the
determination by the trained legal mind of the legal efect of facts and conditions." (5
Am. Jr. p. 262, 263). (Italics supplied)
"Practice of law under modern conditions consists in no small part of work performed
outside of any court and having no immediate relation to proceedings in court. It
embraces conveyancing, the giving of legal advice on a large variety of subjects, and
the preparation and execution of legal instruments covering an extensive feld of
business and trust relations and other afairs. Although these transactions may have
no direct connection with court proceedings, they are always subject to become
involved in litigation. They require in many aspects a high degree of legal skill, a wide
experience with men and afairs, and great capacity for adaptation to difcult and
complex situations. These customary functions of an attorney or counselor at law bear
an intimate relation to the administration of justice by the courts. No valid distinction,
so far as concerns the question set forth in the order, can be drawn between that part
of the work of the lawyer which involves appearance in court and that part which
involves advice and drafting of instruments in his ofce. It is of importance to the
welfare of the public that these manifold customary functions be performed by persons
possessed of adequate learning and skill, of sound moral character, and acting at all
times under the heavy trust obligations to clients which rests upon all attorneys."
(Moran, Comments on the Rules of Court, Vol. 3 [1953 ed.], p. 665-666, citing In re
Opinion of the Justices [Mass.], 194 N. E. 313, quoted in Rhode Is. Bar Assoc. v.
Automobile Service Assoc. [R.I.] 179 A. 139, 144]). (Italics ours)
The University of the Philippines Law Center in conducting orientation briefng for new
lawyers (1974-1975) listed the dimensions of the practice of law in even broader terms
as advocacy, counseling and public service.
"One may be a practicing attorney in following any line of employment in the
profession. If what he does exacts knowledge of the law and is of a kind usual for
attorneys engaging in the active practice of their profession, and he follows some one
or more lines of employment such as this he is a practicing attorney at law within the
meaning of the statute.'" (Barr v. Cardell, 155 NW 312)
Practice of law means any activity, in or out of court, which requires the application of
law, legal procedure, knowledge, training and experience. "To engage in the practice of
law is to perform those acts which are characteristics of the profession. Generally, to
practice law is to give notice or render any kind of service, which device or service
requires the use in any degree of legal knowledge or skill." (111 ALR 23)
The following records of the 1986 Constitutional Commission show that it has adopted
a liberal interpretation of the term "practice of law."
"MR. FOZ. Before we suspend the session, may I make a manifestation which I forgot
to do during our review of the provisions on the Commission on Audit. May I be
allowed to make a very brief statement?
"THE PRESIDING OFFICER (Mr. Jamir). The Commissioner will please proceed.
"MR. FOZ. This has to do with the qualifcations of the members of the Commission on
Audit. Among others, the qualifcations provided for by Section 1 is that 'They must be
Members of the Philippine Bar - I am quoting from the provision 'who have been
engaged in the practice of law for at least ten years."
"To avoid any misunderstanding which would result in excluding members of the Bar
who are now employed in the COA or Commission on Audit, we would like to make the
clarifcation that this provision on qualifcations regarding members of the Bar does not
necessarily refer or involve actual practice of law outside the COA. We have to
interpret this to mean that as long as the lawyers who are employed in the COA are
using their legal knowledge or legal talent in their respective work within COA, then
they are qualifed to be considered for appointment as members or commissioners,
even chairman, of the Commission on Audit.
"This has been discussed by the Committee on Constitutional Commissions and
Agencies and we deem it important to take it up on the foor so that this interpretation
may be made available whenever this provision on the qualifcations as regards
members of the Philippine Bar engaging in the practice of law for at least ten years is
taken up.
"MR. OPLE. Will Commissioner Foz yield to just one question.
"MR. FOZ. Yes, Mr. Presiding Ofcer.
"MR. OPLE. Is he, in efect, saying that service in the COA by a lawyer is equivalent to
the requirement of a law practice that is set forth in the Article on the Commission on
Audit?
"MR. FOZ. We must consider the fact that the work of COA, although it is auditing, will
necessarily involve legal work: it will involve legal work. And, therefore, lawyers who
are employed in COA now would have the necessary qualifcations in accordance with
the provision on qualifcations under our provisions on the Commission on Audit. And,
therefore, the answer is yes.
"MR. OPLE. Yes. So that the construction given to this is that this is equivalent to the
practice of law.
"MR. FOZ. Yes, Mr. Presiding Ofcer.
"Mr. OPLE, Thank you."
x x x (Italics supplied)
Section 1(1), Article IX-D of the 1987 Constitution, provides, among others, that the
Chairman and two Commissioners of the Commission on Audit (COA) should either be
certifed public accountants with not less than ten years of auditing practice, or
members of the Philippine Bar who have been engaged in the practice of law for at
least ten years. (Italics supplied)
Corollary to this is the term "private practitioner" and which is in many ways
synonymous with the word "lawyer." Today, although many lawyers do not engage in
private practice, it is still a fact that the majority of lawyers are private practitioners.
(Gary Munneke, Opportunities in Law Careers [VGM Career Horizons: Illinois), 1986],
p. 15]).
At this point, it might be helpful to defne private practice. The term, as commonly
understood, means "an individual or organization engaged in the business of delivering
legal services." (Ibid.). Lawyers who practice alone are often called "sole
practitioners." Groups of lawyers are called "frms." The frm is usually a partnership
and members of the frm are the partners. Some frms may be organized as
professional corporations and the members called shareholders. In either case, the
members of the frm are the experienced attorneys. In most frms, there are younger or
more inexperienced salaried attorneys called "associates." (Ibid.).
The test that defnes law practice by looking to traditional areas of law practice is
essentially tautologous, unhelpfully defning the practice of law as that which lawyers
do. (Charles W. Wolfram, Modern Legal Ethics [West Publishing Co.: Minnesota,
1986], p. 593). The practice of law is defned as "the performance of any acts . . . in or
out of court, commonly understood to be the practice of law. (State Bar Ass'n v.
Connecticut Bank & Trust Co., 145 Conn. 222, 140 A.2d 863, 870 [1958]
[quoting Grievance Comm. v. Payne, 128 Conn. 325, 22 A.2d 623, 626 [1941]).
Because lawyers perform almost every function known in the commercial and
governmental realm, such a defnition would obviously be too global to be workable.
(Wolfram, op. cit.).
The appearance of a lawyer in litigation in behalf of a client is at once the most publicly
familiar role for lawyers as well as an uncommon role for the average lawyer. Most
lawyers spend little time in courtrooms, and a large percentage spend their entire
practice without litigating a case. (Ibid., p. 593). Nonetheless, many lawyers do
continue to litigate and the litigating lawyer's role colors much of both the public image
and the self-perception of the legal profession. (Ibid.).
In this regard thus, the dominance of litigation in the public mind refects history, not
reality. (Ibid.). Why is this so? Recall that the late Alexander SyCip, a corporate
lawyer, once articulated on the importance of a lawyer as a business counselor in this
wise: "Even today, there are still uninformed laymen whose concept of an attorney is
one who principally tries cases before the courts. The members of the bench and bar
and the informed laymen such as businessmen, know that in most developed societies
today, substantially more legal work is transacted in law ofces than in the courtrooms.
General practitioners of law who do both litigation and non-litigation work also know
that in most cases they fnd themselves spending more time doing what [is] loosely
describe[d] as business counseling than in trying cases. The business lawyer has
been described as the planner, the diagnostician and the trial lawyer, the surgeon. I[t]
need not [be] stress[ed] that in law, as in medicine, surgery should be avoided where
internal medicine can be efective." (Business Star, "Corporate Finance Law," Jan. 11,
1989, p. 4).
In the course of a working day the average general practitioner will engage in a number
of legal tasks, each involving diferent legal doctrines, legal skills, legal processes, legal
institutions, clients, and other interested parties. Even the increasing numbers of
lawyers in specialized practice will usually perform at least some legal services outside
their specialty. And even within a narrow specialty such as tax practice, a lawyer will
shift from one legal task or role such as advice-giving to an importantly diferent one
such as representing a client before an administrative agency. (Wolfram, supra, p.
687).
By no means will most of this work involve litigation, unless the lawyer is one of the
relatively rare types a litigator who specializes in this work to the exclusion of much
else. Instead, the work will require the lawyer to have mastered the full range of
traditional lawyer skills of client counseling, advice-giving, document drafting, and
negotiation. And increasingly lawyers fnd that the new skills of evaluation and
mediation are both efective for many clients and a source of employment. (Ibid.).
Most lawyers will engage in non-litigation legal work or in litigation work that is
constrained in very important ways, at least theoretically, so as to remove from it some
of the salient features of adversarial litigation. Of these special roles, the most
prominent is that of prosecutor. In some lawyers' work the constraints are imposed
both by the nature of the client and by the way in which the lawyer is organized into a
social unit to perform that work. The most common of these roles are those of
corporate practice and government legal service. (Ibid.).
In several issues of the Business Star, a business daily, hereinbelow quoted are
emerging trends in corporate law practice, a departure from the traditional concept of
practice of law.
We are experiencing today what truly may be called a revolutionary transformation in
corporate law practice. Lawyers and other professional groups, in particular those
members participating in various legal-policy decisional contexts, are fnding that
understanding the major emerging trends in corporation law is indispensable to
intelligent decision-making.
Constructive adjustment to major corporate problems of today requires an accurate
understanding of the nature and implications of the corporate law research function
accompanied by an accelerating rate of information accumulation. The recognition of
the need for such improved corporate legal policy formulation, particularly "model-
making" and "contingency planning," has impressed upon us the inadequacy of
traditional procedures in many decisional contexts.
In a complex legal problem the mass of information to be processed, the sorting and
weighing of signifcant conditional factors, the appraisal of major trends, the necessity
of estimating the consequences of given courses of action, and the need for fast
decision and response in situations of acute danger have prompted the use of
sophisticated concepts of information fow theory, operational analysis, automatic data
processing, and electronic computing equipment. Understandably, an improved
decisional structure must stress the predictive component of the policy-making
process, wherein a "model", of the decisional context or a segment thereof is
developed to test projected alternative courses of action in terms of futuristic efects
fowing therefrom.
Although members of the legal profession are regularly engaged in predicting and
projecting the trends of the law, the subject of corporate fnance law has received
relatively little organized and formalized attention in the philosophy of advancing
corporate legal education. Nonetheless, a cross-disciplinary approach to legal
research has become a vital necessity.
Certainly, the general orientation for productive contributions by those trained primarily
in the law can be improved through an early introduction to multi-variable decisional
contexts and the various approaches for handling such problems. Lawyers, particularly
with either a master's or doctorate degree in business administration or management,
functioning at the legal-policy level of decision-making now have some appreciation for
the concepts and analytical techniques of other professions which are currently
engaged in similar types of complex decision-making.
Truth to tell, many situations involving corporate fnance problems would require the
services of an astute attorney because of the complex legal implications that arise from
each and every necessary step in securing and maintaining the business issue raised.
(Business Star, "Corporate Finance Law," Jan. 11, 1989, p. 4).
In our litigation-prone country, a corporate lawyer is assiduously referred to as the
"abogado de campanilla." He is the "big-time" lawyer, earning big money and with a
clientele composed of the tycoons and magnates of business and industry.
Despite the growing number of corporate lawyers, many people could not explain what
it is that a corporate lawyer does. For one, the number of attorneys employed by a
single corporation will vary with the size and type of the corporation. Many smaller and
some large corporations farm out all their legal problems to private law frms. Many
others have in-house counsel only for certain matters. Other corporations have a staf
large enough to handle most legal problems in-house.
A corporate lawyer, for all intents and purposes, is a lawyer who handles the legal
afairs of a corporation. His areas of concern or jurisdiction may include, inter alia:
corporate legal research, tax laws research, acting out as corporate secretary (in board
meetings), appearances in both courts and other adjudicatory agencies (including the
Securities and Exchange Commission), and in other capacities which require an ability
to deal with the law.
At any rate, a corporate lawyer may assume responsibilities other than the legal afairs
of the business of the corporation he is representing. These include such matters as
determining policy and becoming involved in management. (Italics supplied)
In a big company, for example, one may have a feeling of being isolated from the
action, or not understanding how one's work actually fts into the work of the
organization. This can be frustrating to someone who needs to see the results of his
work frst hand. In short, a corporate lawyer is sometimes ofered this fortune to be
more closely involved in the running of the business.
Moreover, a corporate lawyer's services may sometimes be engaged by a multinational
corporation (MNC). Some large MNCs provide one of the few opportunities available
to corporate lawyers to enter the international law feld. After all, international law is
practiced in a relatively small number of companies and law frms. Because working in
a foreign country is perceived by many as glamorous, this is an area coveted by
corporate lawyers. In most cases, however, the overseas jobs go to experienced
attorneys while the younger attorneys do their "international practice" in law libraries.
(Business Star, "Corporate Law Practice," May 25, 1990, p. 4).
This brings us to the inevitable, i.e., the role of the lawyer in the realm of fnance. To
borrow the lines of Harvard-educated lawyer Bruce Wassertein, to wit: "A bad lawyer is
one who fails to spot problems, a good lawyer is one who perceives the difculties, and
the excellent lawyer is one who surmounts them." (Business Star, "Corporate Finance
Law," Jan. 11, 1989, p. 4)
Today, the study of corporate law practice direly needs a "shot in the arm," so to
speak. No longer are we talking of the traditional law teaching method of confning the
subject study to the Corporation Code and the Securities Code but an incursion as well
into the intertwining modern management issues.
Such corporate legal management issues deal primarily with three (3) types of
learning: (1) acquisition of insights into current advances which are of particular
signifcance to the corporate counsel; (2) an introduction to usable disciplinary skills
applicable to a corporate counsel's management responsibilities; and (3) a devotion to
the organization and management of the legal function itself.
These three subject areas may be thought of as intersecting circles, with a shared area
linking them. Otherwise known as "intersecting managerial jurisprudence," it forms a
unifying theme for the corporate counsel's total learning.
Some current advances in behavior and policy sciences afect the counsel's role. For
that matter, the corporate lawyer reviews the globalization process, including the
resulting strategic repositioning that the frms he provides counsel for are required to
make, and the need to think about a corporation's strategy at multiple levels. The
salience of the nation-state is being reduced as frms deal both with global multinational
entities and simultaneously with sub-national governmental units. Firms increasingly
collaborate not only with public entities but with each other often with those who are
competitors in other arenas.
Also, the nature of the lawyer's participation in decision-making within the corporation
is rapidly changing. The modern corporate lawyer has gained a new role as a
stakeholder in some cases participating in the organization and operations of
governance through participation on boards and other decision-making roles. Often
these new patterns develop alongside existing legal institutions and laws are perceived
as barriers. These trends are complicated as corporations organize for global
operations. (Italics supplied)
The practicing lawyer of today is familiar as well with governmental policies toward the
promotion and management of technology. New collaborative arrangements for
promoting specifc technologies or competitiveness more generally require approaches
from industry that difer from older, more adversarial relationships and traditional forms
of seeking to infuence governmental policies. And there are lessons to be learned
from other countries. In Europe, Esprit, Eureka and Race are examples of
collaborative eforts between governmental and business Japan's MITI is world
famous. (Italics supplied)
Following the concept of boundary spanning, the ofce of the Corporate Counsel
comprises a distinct group within the managerial structure of all kinds of organizations.
Efectiveness of both long-term and temporary groups within organizations has been
found to be related to indentifable factors in the group-context interaction such as the
groups actively revising their knowledge of the environment, coordinating work with
outsiders, promoting team achievements within the organization. In general, such
external activities are better predictors of team performance than internal group
processes.
In a crisis situation, the legal managerial capabilities of the corporate lawyer vis-a-vis
the managerial mettle of corporations are challenged. Current research is seeking
ways both to anticipate efective managerial procedures and to understand
relationships of fnancial liability and insurance considerations. (Underscoring
supplied)
Regarding the skills to apply by the corporate counsel, three factors are apropos:
First System Dynamics. The feld of systems dynamics has been found an efective
tool for new managerial thinking regarding both planning and pressing immediate
problems. An understanding of the role of feedback loops, inventory levels, and rates
of fow, enable users to simulate all sorts of systematic problems physical,
economic, managerial, social, and psychological. New programming techniques now
make the systems dynamics principles more accessible to managers including
corporate counsels. (Italics supplied)
Second Decision Analysis. This enables users to make better decisions involving
complexity and uncertainty. In the context of a law department, it can be used to
appraise the settlement value of litigation, aid in negotiation settlement, and minimize
the cost and risk involved in managing a portfolio of cases. (Italics supplied)
Third Modeling for Negotiation Management. Computer-based models can be used
directly by parties and mediators in all kinds of negotiations. All integrated set of such
tools provide coherent and efective negotiation support, including hands-on on
instruction in these techniques. A simulation case of an international joint venture may
be used to illustrate the point.
[Be this as it may,] the organization and management of the legal function, concern
three pointed areas of consideration, thus:
Preventive Lawyering. Planning by lawyers requires special skills that comprise a
major part of the general counsel's responsibilities. They difer from those of remedial
law. Preventive lawyering is concerned with minimizing the risks of legal trouble and
maximizing legal rights for such legal entities at that time when transactional or similar
facts are being considered and made.
Managerial Jurisprudence. This is the framework within which are undertaken those
activities of the frm to which legal consequences attach. It needs to be directly
supportive of this nation's evolving economic and organizational fabric as frms change
to stay competitive in a global, interdependent environment. The practice and theory of
"law" is not adequate today to facilitate the relationships needed in trying to make a
global economy work.
Organization and Functioning of the Corporate Counsel's Ofce. The general counsel
has emerged in the last decade as one of the most vibrant subsets of the legal
profession. The corporate counsel bear responsibility for key aspects of the frm's
strategic issues, including structuring its global operations, managing improved
relationships with an increasingly diversifed body of employees, managing expanded
liability exposure, creating new and varied interactions with public decision-makers,
coping internally with more complex make or by decisions.
This whole exercise drives home the thesis that knowing corporate law is not enough to
make one a good general corporate counsel nor to give him a full sense of how the
legal system shapes corporate activities. And even if the corporate lawyer's aim is not
to understand all of the law's efects on corporate activities, he must, at the very least,
also gain a working knowledge of the management issues if only to be able to grasp
not only the basic legal "constitution" or make-up of the modern corporation. (Business
Star, "The Corporate Counsel," April 10, 1991, p. 4)..
The challenge for lawyers (both of the bar and the bench) is to have more than a
passing knowledge of fnancial law afecting each aspect of their work. Yet, many
would admit to ignorance of vast tracts of the fnancial law territory. What transpires
next is a dilemma of professional security: Will the lawyer admit ignorance and risk
opprobrium?; or will he feign understanding and risk exposure? (Business Star,
"Corporate Finance law," Jan. 11, 1989, p. 4).
Respondent Christian Monsod was nominated by President Corazon C. Aquino to the
position of Chairman of the COMELEC in a letter received by the Secretariat of the
Commission on Appointments on April 25, 1991. Petitioner opposed the nomination
because allegedly Monsod does not possess the required qualifcation of having been
engaged in the practice of law for at least ten years.
On June 5, 1991, the Commission on Appointments confrmed the nomination of
Monsod as Chairman of the COMELEC. On June 18, 1991, he took his oath of ofce.
On the same day, he assumed ofce as Chairman of the COMELEC.
Challenging the validity of the confrmation by the Commission on Appointments of
Monsod's nomination, petitioner as a citizen and taxpayer, fled the instant petition
for Certiorari and Prohibition praying that said confrmation and the consequent
appointment of Monsod as Chairman of the Commission on Elections be declared null
and void.
Atty. Christian Monsod is a member of the Philippine Bar, having passed the bar
examinations of 1960 with a grade of 86.55%. He has been a dues paying member of
the Integrated Bar of the Philippines since its inception in 1972-73. He has also been
paying his professional license fees as a lawyer for more than ten years. (p. 124, Rollo)
After graduating from the College of Law (U.P.) and having hurdled the bar, Atty.
Monsod worked in the law ofce of his father. During his stint in the World Bank Group
(1963-1970), Monsod worked as an operations ofcer for about two years in Costa
Rica and Panama, which involved getting acquainted with the laws of member-
countries, negotiating loans and coordinating legal, economic, and project work of the
Bank. Upon returning to the Philippines in 1970, he worked with the Meralco Group,
served as chief executive ofcer of an investment bank and subsequently of a business
conglomerate, and since 1986, has rendered services to various companies as a legal
and economic consultant or chief executive ofcer. As former Secretary-General
(1986) and National Chairman (1987) of NAMFREL, Monsod's, work involved being
knowledgeable in election law. He appeared for NAMFREL in its accredition hearings
before the Comelec. In the feld of advocacy, Monsod, in his personal capacity and as
former Co-Chairman of the Bishops Businessmen's Conference for Human
Development, has worked with the under privileged sectors, such as the farmer and
urban poor groups, in initiating, lobbying for and engaging in afrmative action for the
agrarian reform law and lately the urban land reform bill. Monsod also made use of his
legal knowledge as a member of the Davide Commission, a guasi-judicial body, which
conducted numerous hearings (1990) and as a member of the Constitutional
Commission (1986-1987), and Chairman of its Committee on Accountability of Public
Ofcers, for which he was cited by the President of the Commission, Justice Cecilia-
Munoz-Palma for "innumerable amendments to reconcile government functions with
individual freedoms and public accountability and the party-list system for the House of
Representative." (pp. 128-129 Rollo) (Italics supplied)
Just a word about the work of a negotiating team of which Atty. Monsod used to be a
member.
In a loan agreement, for instance, a negotiating panel acts as a team, and which is
adequately constituted to meet the various contingencies that arise during a
negotiation. Besides top ofcials of the Borrower concerned, there are the legal ofcer
(such as the legal counsel), the fnance manager, and an operations ofcer (such as an
ofcial involved in negotiating the contracts) who comprise the members of the team.
(Guillermo V. Soliven, "Loan Negotiating Strategies for Developing Country Borrowers,"
Staf Paper No. 2, Central Bank of the Philippines, Manila, 1982, p. 11). (Underscoring
supplied)
After a fashion, the loan agreement is like a country's Constitution; it lays down the law
as far as the loan transaction is concerned. Thus, the meat of any Loan Agreement
can be compartmentalized into fve (5) fundamental parts: (1) business terms; (2)
borrower's representation; (3) conditions of closing; (4) covenants; and (5) events of
default. (Ibid., p. 13).
In the same vein, lawyers play an important role in any debt restructuring program. For
aside from performing the tasks of legislative drafting and legal advising, they score
national development policies as key factors in maintaining their countries' sovereignty.
(Condensed from the work paper, entitled "Wanted: Development Lawyers for
Developing Nations," submitted by L. Michael Hager, regional legal adviser of the
United States Agency for International Development, during the Session on Law for the
Development of Nations at the Abidjan World Conference in Ivory Coast, sponsored by
the World Peace Through Law Center on August 26-31, 1973). (Italics supplied)
Loan concessions and compromises, perhaps even more so than purely renegotiation
policies, demand expertise in the law of contracts, in legislation and agreement drafting
and in renegotiation. Necessarily, a sovereign lawyer may work with an international
business specialist or an economist in the formulation of a model loan agreement.
Debt restructuring contract agreements contain such a mixture of technical language
that they should be carefully drafted and signed only with the advise of competent
counsel in conjunction with the guidance of adequate technical support personnel.
(See International Law Aspects of the Philippine External Debts, an unpublished
dissertation, U.S.T. Graduate School of Law, 1987, p. 321). (Italics supplied)
A critical aspect of sovereign debt restructuring/contract construction is the set of terms
and conditions which determines the contractual remedies for a failure to perform one
or more elements of the contract. A good agreement must not only defne the
responsibilities of both parties, but must also state the recourse open to either party
when the other fails to discharge an obligation. For a compleat debt restructuring
represents a devotion to that principle which in the ultimate analysis is sine qua non for
foreign loan agreements an adherence to the rule of law in domestic and
international afairs of whose kind U.S. Supreme Court Justice Oliver Wendell Holmes,
Jr. once said; 'They carry no banners, they beat no drums; but where they are, men
learn that bustle and bush are not the equal of quiet genius and serene mastery. (See
Ricardo J. Romulo, "The Role of Lawyers in Foreign Investments," Integrated Bar of the
Philippine Journal, Vol. 15, Nos. 3 and 4, Third and Fourth Quarters, 1977, p. 265).
Interpreted in the light of the various defnitions of the term "practice of law", particularly
the modern concept of law practice, and taking into consideration the liberal
construction intended by the framers of the Constitution, Atty. Monsod's past work
experiences as a lawyer-economist, a lawyer-manager, a lawyer-entrepreneur of
industry, a lawyer-negotiator of contracts, and a lawyer-legislator of both the rich and
the poor - verily more than satisfy the constitutional requirement - that he has been
engaged in the practice of law for at least ten years.
Besides in the leading case of Luego v. Civil Service Commission, 143 SCRA 327, the
Court said:
"Appointment is an essentially discretionary power and must be performed by the
ofcer in which it is vested according to his best lights, the only condition being that the
appointee should possess the qualifcations required by law. If he does, then the
appointment cannot be faulted on the ground that there are others better qualifed who
should have been preferred. This is a political question involving considerations of
wisdom which only the appointing authority can decide." (italics supplied)
No less emphatic was the Court in the case of Central Bank v. Civil Service
Commission, 171 SCRA 744) where it stated:
"It is well-settled that when the appointee is qualifed, as in this case, and all the other
legal requirements are satisfed, the Commission has no alternative but to attest to the
appointment in accordance with the Civil Service Law. The Commission has no
authority to revoke an appointment on the ground that another person is more qualifed
for a particular position. It also has no authority to direct the appointment of a
substitute of its choice. To do so would be an encroachment on the discretion vested
upon the appointing authority. An appointment is essentially within the discretionary
power of whomsoever it is vested, subject to the only condition that the appointee
should possess the qualifcations required by law." (Italics supplied)
The appointing process in a regular appointment as in the case at bar, consists of four
(4) stages: (1) nomination; (2) confrmation by the Commission on Appointments; (3)
issuance of a commission (in the Philippines, upon submission by the Commission on
Appointments of its certifcate of confrmation, the President issues the permanent
appointment; and (4) acceptance e.g., oath-taking, posting of bond, etc.... (Lacson v.
Romero, No. L-3081, October 14, 1949; Gonzales, Law on Public Ofcers, p. 200)
The power of the Commission on Appointments to give its consent to the nomination of
Monsod as Chairman of the Commission on Elections is mandated by Section 1(2)
Sub-Article C, Article IX of the Constitution which provides:
"The Chairman and the Commissioners shall be appointed by the President with the
consent of the Commission on Appointments for a term of seven years without
reappointment. Of those frst appointed, three Members shall hold ofce for seven
years, two Members for fve years, and the last Members for three years, without
reappointment. Appointment to any vacancy shall be only for the unexpired term of the
predecessor. In no case shall any Member be appointed or designated in a temporary
or acting capacity."
Anent Justice Teodoro Padilla's separate opinion, sufce it to say that his defnition of
the practice of law is the traditional or stereotyped notion of law practice, as
distinguished from the modern concept of the practice of law, which modern
connotation is exactly what was intended by the eminent framers of the 1987
Constitution. Moreover, Justice Padilla's defnition would require generally a habitual
law practice, perhaps practised two or three times a week and would outlaw say, law
practice once or twice a year for ten consecutive years. Clearly, this is far from the
constitutional intent.
Upon the other hand, the separate opinion of Justice Isagani Cruz states that in my
written opinion, I made use of a defnition of law practice which really means nothing
because the defnition says that law practice "... is what people ordinarily mean by the
practice of law." True I cited the defnition but only by way of sarcasm as evident from
my statement that the defnition of law practice by "traditional areas of law practice is
essentially tautologous" or defning a phrase by means of the phrase itself that is being
defned.
Justice Cruz goes on to say in substance that since the law covers almost all situations,
most individuals, in making use of the law, or in advising others on what the law
means, are actually practicing law. In that sense, perhaps, but we should not lose sight
of the fact that Mr. Monsod is a lawyer, a member of the Philippine Bar, who has been
practicing law for over ten years. This is diferent from the acts of persons practicing
law, without frst becoming lawyers.
Justice Cruz also says that the Supreme Court can even disqualify an elected
President of the Philippines, say, on the ground that he lacks one or more
qualifcations. This matter, I greatly doubt. For one thing, how can an action or petition
be brought against the President? And even assuming that he is indeed disqualifed,
how can the action be entertained since he is the incumbent President?
We now proceed:
The Commission on the basis of evidence submitted during the public hearings on
Monsod's confrmation, implicitly determined that he possessed the necessary
qualifcations as required by law. The judgment rendered by the Commission in the
exercise of such an acknowledged power is beyond judicial interference except only
upon a clear showing of a grave abuse of discretion amounting to lack or excess of
jurisdiction. (Art. VIII, Sec. 1 Constitution). Thus, only where such grave abuse of
discretion is clearly shown shall the Court interfere with the Commission's judgment. In
the instant case, there is no occasion for the exercise of the Court's corrective power,
since no abuse, much less a grave abuse of discretion, that would amount to lack or
excess of jurisdiction and would warrant the issuance of the writs prayed, for has been
clearly shown.
Additionally, consider the following:
(1) If the Commission on Appointments rejects a nominee by the President, may the Supreme Court
reverse the Commission, and thus in effect confirm the appointment? Clearly, the answer is in the
neative!

(") In the same vein, may the Court reject the nominee, whom the Commission has confirmed? #he
answer is li$ewise clear!

(%) If the &nited States Senate (which is the confirmin body in the &!S! Conress) decides to confirm a
Presidential nominee, it would be incredible that the &!S! Supreme Court would still reverse the &!S!
Senate!
Finally, one signifcant legal maxim is:
"We must interpret not by the letter that killeth, but by the spirit that giveth life."
Take this hypothetical case of Samson and Delilah. Once, the procurator of Judea
asked Delilah (who was Samson's beloved) for help in capturing Samson. Delilah
agreed on condition that
"No blade shall touch his skin; No blood shall fow from his veins."
When Samson (his long hair cut by Delilah) was captured, the procurator placed an
iron rod burning white-hot two or three inches away from in front of Samson's eyes.
This blinded the man. Upon hearing of what had happened to her beloved, Delilah was
beside herself with anger, and fuming with righteous fury, accused the procurator of
reneging on his word. The procurator calmly replied: "Did any blade touch his skin?
Did any blood fow from his veins?" The procurator was clearly relying on the letter, not
the spirit of the agreement.
IN VIEW OF THE FOREGOING, this petition is hereby DISMISSED.
SO ORDERED.