G.R. No. 3066 December 3, 2001
J.K. Mercado and Sons Agricultural Enterprises, Inc., and Spouses Jesus and Rosario K. Mercado, complainants, vs. Atty. Eduardo C. De Vera and Jose Rongkales Bandalan, respondents.

FACTS

A disbarment complaint was filed against Atty. Eduardo C. de Vera by his former client, Rosario Mercado. The complaint stemmed from a civil case where Atty. de Vera successfully represented Mercado, resulting in a monetary award. From garnished funds totaling P1,270,734.56, Atty. de Vera received the amount. After Mercado terminated his services and tendered P350,000 as attorney’s fees, he refused to account for and turn over the remaining money, claiming a higher fee. The Supreme Court, in a prior resolution, suspended Atty. de Vera for six months and ordered him to return any amount in excess of P350,000 still in his possession.
Following his suspension, which took effect on February 22, 2000, Atty. de Vera was found to have continued practicing law. Evidence presented included numerous pleadings he signed and court appearances he made during the suspension period. Concurrently, an investigation by the Integrated Bar of the Philippines (IBP) was conducted to determine the exact amount he still owed his former client from the garnished funds.

ISSUE

The primary issues are: (1) Whether respondent Atty. de Vera engaged in the unauthorized practice of law during his period of suspension; and (2) What is the exact amount he must return to his former client, Rosario Mercado.

RULING

The Court found respondent guilty of unauthorized practice of law and affirmed the IBP’s computation of his monetary accountability. The practice of law encompasses any activity requiring the application of law, legal procedure, and calls for legal knowledge, whether in or out of court. A suspended lawyer is prohibited from engaging in such activities. The evidence, including signed pleadings and court appearances dated within the suspension period, conclusively established that Atty. de Vera violated this prohibition.
Regarding the monetary accountability, the IBP’s detailed computation was adopted. From the total garnished funds of P1,270,734.56, legitimate disbursements and amounts already accounted for amounted to P424,832.67, leaving a balance of P845,901.89. Deducting the approved attorney’s fee of P350,000 and an amount of P114,042.28 that respondent had voluntarily returned, the Court determined that Atty. de Vera still held P381,859.61 rightfully belonging to his client. Consequently, the Court ordered him to return this amount to Rosario Mercado and ruled that his suspension from the practice of law would only be lifted upon satisfactory proof of such compliance.