G.R. No. ADM. CASE No. 5105, August 12, 1999
Fernando Salonga, complainant, vs. Atty. Isidro T. Hildawa, respondent.

FACTS

Complainant Fernando Salonga, President of Sikap at Tiyaga Alabang Vendors Association, Inc. (STAVA), charged respondent Atty. Isidro T. Hildawa with gross misconduct and/or deceit. Atty. Hildawa was STAVA’s retained counsel and represented it in three ejectment cases. The defendants deposited accrued rentals with the Municipal Trial Court. On November 14, 1994, respondent filed a “Joint Motion to Withdraw Deposit” and subsequently received the withdrawn amount of P104,543.80 on December 9, 1994. Complainant alleged STAVA was neither informed nor authorized this withdrawal, and despite demands, respondent refused to turn over the sum. Furthermore, respondent later appeared as counsel for Kilusang Bayan ng mga Magtitinda sa Pamilihang Bayan ng Muntinlupa (KBMBPM), an opponent of STAVA in a separate injunction case, leading a trial court to order his withdrawal for unethical conduct. In his defense, respondent asserted complainant was aware of the withdrawal and that he turned over the money to STAVA’s treasurer, Dolores Javinar, on December 10, 1994, as complainant was on leave. He also presented a STAVA Board of Trustees resolution dated October 30, 1994, signed by complainant, which granted the attorney authority to take legal steps to collect money for the association. He clarified his services for STAVA terminated in February 1995, before he appeared for KBMBPM in December 1995. The Integrated Bar of the Philippines (IBP) Commission on Bar Discipline found respondent guilty of violating Canons 16 and 21 of the Code of Professional Responsibility and recommended a one-year suspension, which the IBP Board approved.

ISSUE

1. Whether respondent Atty. Isidro T. Hildawa violated Canon 16 (holding client funds in trust) by withdrawing and handling the deposited rentals.
2. Whether respondent violated Canon 21 (preserving client confidences and secrets) by subsequently representing an opposing party in a related case.

RULING

1. On the charge of violating Canon 16: The Court ABSOLVED Atty. Hildawa. The evidence, specifically the STAVA Board resolution dated October 30, 1994, granted him authority to take legal steps to collect money for the association. Complainant himself signed this resolution. Furthermore, respondent turned over the withdrawn amount to the STAVA treasurer the day after receiving it, and the treasurer issued a receipt. His obligation regarding the funds ended upon this delivery to the client’s authorized representative.
2. On the charge of violating Canon 21: The Court found respondent GUILTY. Canon 21 requires a lawyer to preserve the confidences and secrets of a client even after the attorney-client relationship ends. By agreeing to represent KBMBPM, a party STAVA had previously contended with in a similarly involved case, respondent placed this duty of confidentiality at risk. The Court REPRIMANDED him for this conduct, with a warning that a repetition would be dealt with more severely. The IBP’s recommended one-year suspension was modified accordingly.