1. G.R. No. 100113 September 3, 1991 kinds, and the giving of all legal advice to clients.

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
RENATO CAYETANO, petitioner, an office where he is held out to be-an attorney, using a letterhead describing himself as an attorney,
vs. counseling clients in legal matters, negotiating with opposing counsel about pending litigation, and
CHRISTIAN MONSOD, HON. JOVITO R. SALONGA, COMMISSION ON APPOINTMENT, and HON. GUILLERMO fixing and collecting fees for services rendered by his associate. (Black's Law Dictionary, 3rd ed.)
CARAGUE, in his capacity as Secretary of Budget and Management, respondents.
The practice of law is not limited to the conduct of cases in court. (Land Title Abstract and Trust Co. v.
Renato L. Cayetano for and in his own behalf. Dworken, 129 Ohio St. 23, 193 N.E. 650) A person is also considered to be in the practice of law when he:

Sabina E. Acut, Jr. and Mylene Garcia-Albano co-counsel for petitioner. ... for valuable consideration engages in the business of advising person, 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 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
PARAS, J.: 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
We are faced here with a controversy of far-reaching proportions. While ostensibly only legal issues are involved, acts either in court or outside of court for that purpose, is engaged in the practice of law. (State ex. rel.
the Court's decision in this case would indubitably have a profound effect on the political aspect of our national Mckittrick v..C.S. Dudley and Co., 102 S.W. 2d 895, 340 Mo. 852)
existence.
This Court in the case of Philippine Lawyers Association v.Agrava, (105 Phil. 173,176-177) stated:
The 1987 Constitution provides in Section 1 (1), Article IX-C:
The practice of law is not limited to the conduct of cases or litigation in court; it embraces the
There shall be a Commission on Elections composed of a Chairman and six Commissioners who shall be preparation of pleadings and other papers incident to actions and special proceedings, the
natural-born citizens of the Philippines and, at the time of their appointment, at least thirty-five years management of such actions and proceedings on behalf of clients before judges and courts, and in
of age, holders of a college degree, and must not have been candidates for any elective position in the addition, conveying. In general, all advice to clients, and all action taken for them in matters connected
immediately preceding -elections. However, a majority thereof, including the Chairman, shall be with the law incorporation services, assessment and condemnation services contemplating an
members of the Philippine Bar who have been engaged in the practice of law for at least ten years. appearance before a judicial body, the foreclosure of a mortgage, enforcement of a creditor's claim in
(Emphasis supplied) 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
The aforequoted provision is patterned after Section l(l), Article XII-C of the 1973 Constitution which similarly of legal instruments, where the work done involves the determination by the trained legal mind of the
provides: legal effect of facts and conditions. (5 Am. Jr. p. 262, 263). (Emphasis supplied)

There shall be an independent Commission on Elections composed of a Chairman and eight Commissioners who Practice of law under modem conditions consists in no small part of work performed outside of any
shall be natural-born citizens of the Philippines and, at the time of their appointment, at least thirty-five years of court and having no immediate relation to proceedings in court. It embraces conveyancing, the giving
age and holders of a college degree. However, a majority thereof, including the Chairman, shall be members of of legal advice on a large variety of subjects, and the preparation and execution of legal instruments
the Philippine Bar who have been engaged in the practice of law for at least ten years.' (Emphasis supplied) covering an extensive field of business and trust relations and other affairs. 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
Regrettably, however, there seems to be no jurisprudence as to what constitutes practice of law as a legal men and affairs, and great capacity for adaptation to difficult and complex situations. These customary
qualification to an appointive office. 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
Black defines "practice of law" as: 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 office. It is of importance to the welfare of the public
The rendition of services requiring the knowledge and the application of legal principles and technique that these manifold customary functions be performed by persons possessed of adequate learning and
to serve the interest of another with his consent. It is not limited to appearing in court, or advising and skill, of sound moral character, and acting at all times under the heavy trust obligations to clients which
assisting in the conduct of litigation, but embraces the preparation of pleadings, and other papers rests upon all attorneys. (Moran, Comments on the Rules of Court, Vol. 3 [1953 ed.] , p. 665-666,
incident to actions and special proceedings, conveyancing, the preparation of legal instruments of all 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). (Emphasis ours)
LEGAL COUNSELING : 1ST Assigned Cases Page 1 of 24
The University of the Philippines Law Center in conducting orientation briefing for new lawyers (1974-1975) MR. OPLE. Is he, in effect, saying that service in the COA by a lawyer is equivalent to the requirement of
listed the dimensions of the practice of law in even broader terms as advocacy, counselling and public service. a law practice that is set forth in the Article on the Commission on Audit?

One may be a practicing attorney in following any line of employment in the profession. If what he MR. FOZ. We must consider the fact that the work of COA, although it is auditing, will necessarily
does exacts knowledge of the law and is of a kind usual for attorneys engaging in the active practice of involve legal work; it will involve legal work. And, therefore, lawyers who are employed in COA now
their profession, and he follows some one or more lines of employment such as this he is a practicing would have the necessary qualifications in accordance with the Provision on qualifications under our
attorney at law within the meaning of the statute. (Barr v. Cardell, 155 NW 312) provisions on the Commission on Audit. And, therefore, the answer is yes.

Practice of law means any activity, in or out of court, which requires the application of law, legal procedure, MR. OPLE. Yes. So that the construction given to this is that this is equivalent to the practice of law.
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 MR. FOZ. Yes, Mr. Presiding Officer.
device or service requires the use in any degree of legal knowledge or skill." (111 ALR 23)
MR. OPLE. Thank you.
The following records of the 1986 Constitutional Commission show that it has adopted a liberal interpretation of
the term "practice of law."
... ( Emphasis supplied)

MR. FOZ. Before we suspend the session, may I make a manifestation which I forgot to do during our
Section 1(1), Article IX-D of the 1987 Constitution, provides, among others, that the Chairman and two
review of the provisions on the Commission on Audit. May I be allowed to make a very brief
Commissioners of the Commission on Audit (COA) should either be certified public accountants with not less
statement?
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. (emphasis supplied)
THE PRESIDING OFFICER (Mr. Jamir).
Corollary to this is the term "private practitioner" and which is in many ways synonymous with the word
The Commissioner will please proceed. "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],
MR. FOZ. This has to do with the qualifications of the members of the Commission on Audit. Among [1986], p. 15).
others, the qualifications provided for by Section I 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 At this point, it might be helpful to define private practice. The term, as commonly understood, means "an
years". 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 "firms." The firm is usually a partnership
To avoid any misunderstanding which would result in excluding members of the Bar who are now employed in and members of the firm are the partners. Some firms may be organized as professional corporations and the
the COA or Commission on Audit, we would like to make the clarification that this provision on qualifications members called shareholders. In either case, the members of the firm are the experienced attorneys. In most
regarding members of the Bar does not necessarily refer or involve actual practice of law outside the COA We firms, there are younger or more inexperienced salaried attorneyscalled "associates." (Ibid.).
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 qualified to be considered for The test that defines law practice by looking to traditional areas of law practice is essentially tautologous,
appointment as members or commissioners, even chairman, of the Commission on Audit. unhelpful defining 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 defined as the performance of any acts . . . in or
This has been discussed by the Committee on Constitutional Commissions and Agencies and we deem it out of court, commonly understood to be the practice of law. (State Bar Ass'n v. Connecticut Bank & Trust Co.,
important to take it up on the floor so that this interpretation may be made available whenever this provision on 145 Conn. 222, 140 A.2d 863, 870 [1958] [quoting Grievance Comm. v. Payne, 128 Conn. 325, 22 A.2d 623, 626
the qualifications as regards members of the Philippine Bar engaging in the practice of law for at least ten years [1941]). Because lawyers perform almost every function known in the commercial and governmental realm, such
is taken up. a definition would obviously be too global to be workable.(Wolfram, op. cit.).

MR. OPLE. Will Commissioner Foz yield to just one question. 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
MR. FOZ. Yes, Mr. Presiding Officer. 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.).

LEGAL COUNSELING : 1ST Assigned Cases Page 2 of 24

In this regard thus, the dominance of litigation in the public mind reflects history, not reality. (Ibid.). Why is this consequences of given courses of action, and the need for fast decision and response in situations of
so? Recall that the late Alexander SyCip, a corporate lawyer, once articulated on the importance of a lawyer as a acute danger have prompted the use of sophisticated concepts of information flow theory, operational
business counselor in this wise: "Even today, there are still uninformed laymen whose concept of an attorney is analysis, automatic data processing, and electronic computing equipment. Understandably, an
one who principally tries cases before the courts. The members of the bench and bar and the informed laymen improved decisional structure must stress the predictive component of the policy-making process,
such as businessmen, know that in most developed societies today, substantially more legal work is transacted in wherein a "model", of the decisional context or a segment thereof is developed to test projected
law offices than in the courtrooms. General practitioners of law who do both litigation and non-litigation work alternative courses of action in terms of futuristic effects flowing therefrom.
also know that in most cases they find themselves spending more time doing what [is] loosely desccribe[d] as
business counseling than in trying cases. The business lawyer has been described as the planner, the Although members of the legal profession are regularly engaged in predicting and projecting the trends
diagnostician and the trial lawyer, the surgeon. I[t] need not [be] stress[ed] that in law, as in medicine, surgery of the law, the subject of corporate finance law has received relatively little organized and formalized
should be avoided where internal medicine can be effective." (Business Star, "Corporate Finance Law," Jan. 11, attention in the philosophy of advancing corporate legal education. Nonetheless, a cross-disciplinary
1989, p. 4). approach to legal research has become a vital necessity.

In the course of a working day the average general practitioner wig engage in a number of legal tasks, each Certainly, the general orientation for productive contributions by those trained primarily in the law can
involving different legal doctrines, legal skills, legal processes, legal institutions, clients, and other interested be improved through an early introduction to multi-variable decisional context and the various
parties. Even the increasing numbers of lawyers in specialized practice wig usually perform at least some legal approaches for handling such problems. Lawyers, particularly with either a master's or doctorate
services outside their specialty. And even within a narrow specialty such as tax practice, a lawyer will shift from degree in business administration or management, functioning at the legal policy level of decision-
one legal task or role such as advice-giving to an importantly different one such as representing a client before making now have some appreciation for the concepts and analytical techniques of other professions
an administrative agency. (Wolfram, supra, p. 687). which are currently engaged in similar types of complex decision-making.

By no means will most of this work involve litigation, unless the lawyer is one of the relatively rare types a Truth to tell, many situations involving corporate finance problems would require the services of an
litigator who specializes in this work to the exclusion of much else. Instead, the work will require the lawyer to astute attorney because of the complex legal implications that arise from each and every necessary
have mastered the full range of traditional lawyer skills of client counselling, advice-giving, document drafting, step in securing and maintaining the business issue raised. (Business Star, "Corporate Finance Law,"
and negotiation. And increasingly lawyers find that the new skills of evaluation and mediation are both effective Jan. 11, 1989, p. 4).
for many clients and a source of employment. (Ibid.).
In our litigation-prone country, a corporate lawyer is assiduously referred to as the "abogado de
Most lawyers will engage in non-litigation legal work or in litigation work that is constrained in very important campanilla." He is the "big-time" lawyer, earning big money and with a clientele composed of the
ways, at least theoretically, so as to remove from it some of the salient features of adversarial litigation. Of these tycoons and magnates of business and industry.
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
Despite the growing number of corporate lawyers, many people could not explain what it is that a
work. The most common of these roles are those of corporate practice and government legal service. (Ibid.).
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
In several issues of the Business Star, a business daily, herein below quoted are emerging trends in corporate law legal problems to private law firms. Many others have in-house counsel only for certain matters. Other
practice, a departure from the traditional concept of practice of law. corporation have a staff large enough to handle most legal problems in-house.

We are experiencing today what truly may be called a revolutionary transformation in corporate law A corporate lawyer, for all intents and purposes, is a lawyer who handles the legal affairs of a
practice. Lawyers and other professional groups, in particular those members participating in various corporation. His areas of concern or jurisdiction may include, inter alia: corporate legal research, tax
legal-policy decisional contexts, are finding that understanding the major emerging trends in laws research, acting out as corporate secretary (in board meetings), appearances in both courts and
corporation law is indispensable to intelligent decision-making. other adjudicatory agencies (including the Securities and Exchange Commission), and in other
capacities which require an ability to deal with the law.
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 At any rate, a corporate lawyer may assume responsibilities other than the legal affairs of the business
rate of information accumulation. The recognition of the need for such improved corporate legal policy of the corporation he is representing. These include such matters as determining policy and becoming
formulation, particularly "model-making" and "contingency planning," has impressed upon us the involved in management. ( Emphasis supplied.)
inadequacy of traditional procedures in many decisional contexts.
In a big company, for example, one may have a feeling of being isolated from the action, or not
In a complex legal problem the mass of information to be processed, the sorting and weighing of understanding how one's work actually fits into the work of the orgarnization. This can be frustrating
significant conditional factors, the appraisal of major trends, the necessity of estimating the
LEGAL COUNSELING : 1ST Assigned Cases Page 3 of 24
 to someone who needs to see the results of his work first hand. In short, a corporate lawyer is competitiveness more generally require approaches from industry that differ from older, more
sometimes offered this fortune to be more closely involved in the running of the business. adversarial relationships and traditional forms of seeking to influence governmental policies. And there
are lessons to be learned from other countries. In Europe, Esprit, Eureka and Race are examples of
Moreover, a corporate lawyer's services may sometimes be engaged by a multinational corporation collaborative efforts between governmental and business Japan's MITI is world famous. (Emphasis
(MNC). Some large MNCs provide one of the few opportunities available to corporate lawyers to enter supplied)
the international law field. After all, international law is practiced in a relatively small number of
companies and law firms. Because working in a foreign country is perceived by many as glamorous, tills Following the concept of boundary spanning, the office of the Corporate Counsel comprises a distinct
is an area coveted by corporate lawyers. In most cases, however, the overseas jobs go to experienced group within the managerial structure of all kinds of organizations. Effectiveness of both long-term and
attorneys while the younger attorneys do their "international practice" in law libraries. (Business Star, temporary groups within organizations has been found to be related to indentifiable factors in the
"Corporate Law Practice," May 25,1990, p. 4). 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,
This brings us to the inevitable, i.e., the role of the lawyer in the realm of finance. To borrow the lines such external activities are better predictors of team performance than internal group processes.
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 difficulties, and the excellent lawyer is one who surmounts In a crisis situation, the legal managerial capabilities of the corporate lawyer vis-a-vis the managerial
them." (Business Star, "Corporate Finance Law," Jan. 11, 1989, p. 4). mettle of corporations are challenged. Current research is seeking ways both to anticipate effective
managerial procedures and to understand relationships of financial liability and insurance
Today, the study of corporate law practice direly needs a "shot in the arm," so to speak. No longer are considerations. (Emphasis supplied)
we talking of the traditional law teaching method of confining the subject study to the Corporation
Code and the Securities Code but an incursion as well into the intertwining modern management Regarding the skills to apply by the corporate counsel, three factors are apropos:
issues.
First System Dynamics. The field of systems dynamics has been found an effective tool for new
Such corporate legal management issues deal primarily with three (3) types of learning: (1) acquisition managerial thinking regarding both planning and pressing immediate problems. An understanding of
of insights into current advances which are of particular significance to the corporate counsel; (2) an the role of feedback loops, inventory levels, and rates of flow, enable users to simulate all sorts of
introduction to usable disciplinary skins applicable to a corporate counsel's management systematic problems physical, economic, managerial, social, and psychological. New programming
responsibilities; and (3) a devotion to the organization and management of the legal function itself. techniques now make the system dynamics principles more accessible to managers including
corporate counsels. (Emphasis supplied)
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 Second Decision Analysis. This enables users to make better decisions involving complexity and
corporate counsel's total learning. 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
Some current advances in behavior and policy sciences affect the counsel's role. For that matter, the of cases. (Emphasis supplied)
corporate lawyer reviews the globalization process, including the resulting strategic repositioning that
the firms he provides counsel for are required to make, and the need to think about a corporation's; Third Modeling for Negotiation Management. Computer-based models can be used directly by parties
strategy at multiple levels. The salience of the nation-state is being reduced as firms deal both with and mediators in all lands of negotiations. All integrated set of such tools provide coherent and
global multinational entities and simultaneously with sub-national governmental units. Firms effective negotiation support, including hands-on on instruction in these techniques. A simulation case
increasingly collaborate not only with public entities but with each other often with those who are of an international joint venture may be used to illustrate the point.
competitors in other arenas.
[Be this as it may,] the organization and management of the legal function, concern three pointed
Also, the nature of the lawyer's participation in decision-making within the corporation is rapidly areas of consideration, thus:
changing. The modem 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 Preventive Lawyering. Planning by lawyers requires special skills that comprise a major part of the
other decision-making roles. Often these new patterns develop alongside existing legal institutions and general counsel's responsibilities. They differ from those of remedial law. Preventive lawyering is
laws are perceived as barriers. These trends are complicated as corporations organize for global concerned with minimizing the risks of legal trouble and maximizing legal rights for such legal entities
operations. ( Emphasis supplied) at that time when transactional or similar facts are being considered and made.

The practising lawyer of today is familiar as well with governmental policies toward the promotion and Managerial Jurisprudence. This is the framework within which are undertaken those activities of the
management of technology. New collaborative arrangements for promoting specific technologies or firm to which legal consequences attach. It needs to be directly supportive of this nation's evolving
LEGAL COUNSELING : 1ST Assigned Cases Page 4 of 24
 economic and organizational fabric as firms change to stay competitive in a global, interdependent returning to the Philippines in 1970, he worked with the Meralco Group, served as chief executive officer of an
environment. The practice and theory of "law" is not adequate today to facilitate the relationships investment bank and subsequently of a business conglomerate, and since 1986, has rendered services to various
needed in trying to make a global economy work. companies as a legal and economic consultant or chief executive officer. As former Secretary-General (1986) and
National Chairman (1987) of NAMFREL. Monsod's work involved being knowledgeable in election law. He
Organization and Functioning of the Corporate Counsel's Office. The general counsel has emerged in appeared for NAMFREL in its accreditation hearings before the Comelec. In the field of advocacy, Monsod, in his
the last decade as one of the most vibrant subsets of the legal profession. The corporate counsel hear personal capacity and as former Co-Chairman of the Bishops Businessmen's Conference for Human Development,
responsibility for key aspects of the firm's strategic issues, including structuring its global operations, has worked with the under privileged sectors, such as the farmer and urban poor groups, in initiating, lobbying
managing improved relationships with an increasingly diversified body of employees, managing for and engaging in affirmative action for the agrarian reform law and lately the urban land reform bill. Monsod
expanded liability exposure, creating new and varied interactions with public decision-makers, coping also made use of his legal knowledge as a member of the Davide Commission, a quast judicial body, which
internally with more complex make or by decisions. conducted numerous hearings (1990) and as a member of the Constitutional Commission (1986-1987), and
Chairman of its Committee on Accountability of Public Officers, for which he was cited by the President of the
Commission, Justice Cecilia Muoz-Palma for "innumerable amendments to reconcile government functions with
This whole exercise drives home the thesis that knowing corporate law is not enough to make one a
individual freedoms and public accountability and the party-list system for the House of Representative. (pp. 128-
good general corporate counsel nor to give him a full sense of how the legal system shapes corporate
129 Rollo) ( Emphasis supplied)
activities. And even if the corporate lawyer's aim is not the understand all of the law's effects 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 makeup of the modem Just a word about the work of a negotiating team of which Atty. Monsod used to be a member.
corporation. "Business Star", "The Corporate Counsel," April 10, 1991, p. 4).
In a loan agreement, for instance, a negotiating panel acts as a team, and which is adequately
The challenge for lawyers (both of the bar and the bench) is to have more than a passing knowledge of constituted to meet the various contingencies that arise during a negotiation. Besides top officials of
financial law affecting each aspect of their work. Yet, many would admit to ignorance of vast tracts of the Borrower concerned, there are the legal officer (such as the legal counsel), the finance manager,
the financial law territory. What transpires next is a dilemma of professional security: Will the lawyer and an operations officer (such as an official involved in negotiating the contracts) who comprise the
admit ignorance and risk opprobrium?; or will he feign understanding and risk exposure? (Business members of the team. (Guillermo V. Soliven, "Loan Negotiating Strategies for Developing Country
Star, "Corporate Finance law," Jan. 11, 1989, p. 4). Borrowers," Staff Paper No. 2, Central Bank of the Philippines, Manila, 1982, p. 11). (Emphasis
supplied)
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. After a fashion, the loan agreement is like a country's Constitution; it lays down the law as far as the
Petitioner opposed the nomination because allegedly Monsod does not possess the required qualification of loan transaction is concerned. Thus, the meat of any Loan Agreement can be compartmentalized into
having been engaged in the practice of law for at least ten years. five (5) fundamental parts: (1) business terms; (2) borrower's representation; (3) conditions of closing;
(4) covenants; and (5) events of default. (Ibid., p. 13).
On June 5, 1991, the Commission on Appointments confirmed the nomination of Monsod as Chairman of the
COMELEC. On June 18, 1991, he took his oath of office. On the same day, he assumed office as Chairman of the In the same vein, lawyers play an important role in any debt restructuring program. For aside from
COMELEC. 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
Challenging the validity of the confirmation by the Commission on Appointments of Monsod's nomination,
adviser of the United States Agency for International Development, during the Session on Law for the
petitioner as a citizen and taxpayer, filed the instant petition for certiorari and Prohibition praying that said
Development of Nations at the Abidjan World Conference in Ivory Coast, sponsored by the World
confirmation and the consequent appointment of Monsod as Chairman of the Commission on Elections be
Peace Through Law Center on August 26-31, 1973). ( Emphasis supplied)
declared null and void.

Loan concessions and compromises, perhaps even more so than purely renegotiation policies, demand
Atty. Christian Monsod is a member of the Philippine Bar, having passed the bar examinations of 1960 with a
expertise in the law of contracts, in legislation and agreement drafting and in renegotiation.
grade of 86-55%. He has been a dues paying member of the Integrated Bar of the Philippines since its inception
Necessarily, a sovereign lawyer may work with an international business specialist or an economist in
in 1972-73. He has also been paying his professional license fees as lawyer for more than ten years. (p. 124,
the formulation of a model loan agreement. Debt restructuring contract agreements contain such a
Rollo)
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
After graduating from the College of Law (U.P.) and having hurdled the bar, Atty. Monsod worked in the law International Law Aspects of the Philippine External Debts, an unpublished dissertation, U.S.T.
office of his father. During his stint in the World Bank Group (1963-1970), Monsod worked as an operations Graduate School of Law, 1987, p. 321). ( Emphasis supplied)
officer 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
LEGAL COUNSELING : 1ST Assigned Cases Page 5 of 24
 A critical aspect of sovereign debt restructuring/contract construction is the set of terms and The power of the Commission on Appointments to give its consent to the nomination of Monsod as Chairman of
conditions which determines the contractual remedies for a failure to perform one or more elements the Commission on Elections is mandated by Section 1(2) Sub-Article C, Article IX of the Constitution which
of the contract. A good agreement must not only define the responsibilities of both parties, but must provides:
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 The Chairman and the Commisioners shall be appointed by the President with the consent of the
is sine qua non for foreign loan agreements-an adherence to the rule of law in domestic and Commission on Appointments for a term of seven years without reappointment. Of those first
international affairs of whose kind U.S. Supreme Court Justice Oliver Wendell Holmes, Jr. once said: appointed, three Members shall hold office for seven years, two Members for five years, and the last
"They carry no banners, they beat no drums; but where they are, men learn that bustle and bush are Members for three years, without reappointment. Appointment to any vacancy shall be only for the
not the equal of quiet genius and serene mastery." (See Ricardo J. Romulo, "The Role of Lawyers in unexpired term of the predecessor. In no case shall any Member be appointed or designated in a
Foreign Investments," Integrated Bar of the Philippine Journal, Vol. 15, Nos. 3 and 4, Third and Fourth temporary or acting capacity.
Quarters, 1977, p. 265).
Anent Justice Teodoro Padilla's separate opinion, suffice it to say that his definition of the practice of
Interpreted in the light of the various definitions of the term Practice of law". particularly the modern concept of law is the traditional or stereotyped notion of law practice, as distinguished from the modern concept
law practice, and taking into consideration the liberal construction intended by the framers of the Constitution, of the practice of law, which modern connotation is exactly what was intended by the eminent framers
Atty. Monsod's past work experiences as a lawyer-economist, a lawyer-manager, a lawyer-entrepreneur of of the 1987 Constitution. Moreover, Justice Padilla's definition would require generally a habitual law
industry, a lawyer-negotiator of contracts, and a lawyer-legislator of both the rich and the poor verily more practice, perhaps practised two or three times a week and would outlaw say, law practice once or
than satisfy the constitutional requirement that he has been engaged in the practice of law for at least ten twice a year for ten consecutive years. Clearly, this is far from the constitutional intent.
years.
Upon the other hand, the separate opinion of Justice Isagani Cruz states that in my written opinion, I made use
Besides in the leading case of Luego v. Civil Service Commission, 143 SCRA 327, the Court said: of a definition of law practice which really means nothing because the definition says that law practice " . . . is
what people ordinarily mean by the practice of law." True I cited the definition but only by way of sarcasm as
Appointment is an essentially discretionary power and must be performed by the officer in which it is evident from my statement that the definition of law practice by "traditional areas of law practice is
vested according to his best lights, the only condition being that the appointee should possess the essentially tautologous" or defining a phrase by means of the phrase itself that is being defined.
qualifications required by law. If he does, then the appointment cannot be faulted on the ground that
there are others better qualified who should have been preferred. This is a political question involving Justice Cruz goes on to say in substance that since the law covers almost all situations, most individuals, in
considerations of wisdom which only the appointing authority can decide. (emphasis supplied) 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,
No less emphatic was the Court in the case of (Central Bank v. Civil Service Commission, 171 SCRA 744) where it who has been practising law for over ten years. This is different from the acts of persons practising law, without
stated: first becoming lawyers.

It is well-settled that when the appointee is qualified, as in this case, and all the other legal Justice Cruz also says that the Supreme Court can even disqualify an elected President of the Philippines, say, on
requirements are satisfied, the Commission has no alternative but to attest to the appointment in the ground that he lacks one or more qualifications. This matter, I greatly doubt. For one thing, how can an
accordance with the Civil Service Law. The Commission has no authority to revoke an appointment on action or petition be brought against the President? And even assuming that he is indeed disqualified, how can
the ground that another person is more qualified for a particular position. It also has no authority to the action be entertained since he is the incumbent President?
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 We now proceed:
power of whomsoever it is vested, subject to the only condition that the appointee should possess the
qualifications required by law. ( Emphasis supplied)
The Commission on the basis of evidence submitted doling the public hearings on Monsod's confirmation,
implicitly determined that he possessed the necessary qualifications as required by law. The judgment rendered
The appointing process in a regular appointment as in the case at bar, consists of four (4) stages: (1) nomination; by the Commission in the exercise of such an acknowledged power is beyond judicial interference except only
(2) confirmation by the Commission on Appointments; (3) issuance of a commission (in the Philippines, upon upon a clear showing of a grave abuse of discretion amounting to lack or excess of jurisdiction. (Art. VIII, Sec. 1
submission by the Commission on Appointments of its certificate of confirmation, the President issues the Constitution). Thus, only where such grave abuse of discretion is clearly shown shall the Court interfere with the
permanent appointment; and (4) acceptance e.g., oath-taking, posting of bond, etc. . . . (Lacson v. Romero, No. L- Commission's judgment. In the instant case, there is no occasion for the exercise of the Court's corrective power,
3081, October 14, 1949; Gonzales, Law on Public Officers, p. 200) 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:

LEGAL COUNSELING : 1ST Assigned Cases Page 6 of 24
 (1) If the Commission on Appointments rejects a nominee by the President, may the Supreme Court Separate Opinions
reverse the Commission, and thus in effect confirm the appointment? Clearly, the answer is in the
negative.

(2) In the same vein, may the Court reject the nominee, whom the Commission has confirmed? The NARVASA, J., concurring:
answer is likewise clear.
I concur with the decision of the majority written by Mr. Justice Paras, albeit only in the result; it does not appear
(3) If the United States Senate (which is the confirming body in the U.S. Congress) decides to confirm a to me that there has been an adequate showing that the challenged determination by the Commission on
Presidential nominee, it would be incredible that the U.S. Supreme Court would still reverse the U.S. Appointments-that the appointment of respondent Monsod as Chairman of the Commission on Elections should,
Senate. on the basis of his stated qualifications and after due assessment thereof, be confirmed-was attended by error
so gross as to amount to grave abuse of discretion and consequently merits nullification by this Court in
Finally, one significant legal maxim is: accordance with the second paragraph of Section 1, Article VIII of the Constitution. I therefore vote to DENY the
petition.
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 PADILLA, J., dissenting:

No blade shall touch his skin; The records of this case will show that when the Court first deliberated on the Petition at bar, I voted not only to
require the respondents to comment on the Petition, but I was the sole vote for the issuance of a temporary
No blood shall flow from his veins. restraining order to enjoin respondent Monsod from assuming the position of COMELEC Chairman, while the
Court deliberated on his constitutional qualification for the office. My purpose in voting for a TRO was to prevent
the inconvenience and even embarrassment to all parties concerned were the Court to finally decide for
When Samson (his long hair cut by Delilah) was captured, the procurator placed an iron rod burning white-hot
respondent Monsod's disqualification. Moreover, a reading of the Petition then in relation to established
two or three inches away from in front of Samson's eyes. This blinded the man. Upon hearing of what had
jurisprudence already showed prima facie that respondent Monsod did not possess the needed qualification,
happened to her beloved, Delilah was beside herself with anger, and fuming with righteous fury, accused the
that is, he had not engaged in the practice of law for at least ten (10) years prior to his appointment as COMELEC
procurator of reneging on his word. The procurator calmly replied: "Did any blade touch his skin? Did any blood
Chairman.
flow from his veins?" The procurator was clearly relying on the letter, not the spirit of the agreement.

After considering carefully respondent Monsod's comment, I am even more convinced that the constitutional
In view of the foregoing, this petition is hereby DISMISSED.
requirement of "practice of law for at least ten (10) years" has not been met.

SO ORDERED.
The procedural barriers interposed by respondents deserve scant consideration because, ultimately, the core
issue to be resolved in this petition is the proper construal of the constitutional provision requiring a majority of
Fernan, C.J., Grio-Aquino and Medialdea, JJ., concur. the membership of COMELEC, including the Chairman thereof to "have been engaged in the practice of law for at
Feliciano, J., I certify that he voted to dismiss the petition. (Fernan, C.J.) least ten (10) years." (Art. IX(C), Section 1(1), 1987 Constitution). Questions involving the construction of
constitutional provisions are best left to judicial resolution. As declared in Angara v. Electoral Commission, (63
Sarmiento, J., is on leave. Phil. 139) "upon the judicial department is thrown the solemn and inescapable obligation of interpreting the
Constitution and defining constitutional boundaries."
Regalado, and Davide, Jr., J., took no part.
The Constitution has imposed clear and specific standards for a COMELEC Chairman. Among these are that he
must have been "engaged in the practice of law for at least ten (10) years." It is the bounden duty of this Court to
ensure that such standard is met and complied with.

What constitutes practice of law? As commonly understood, "practice" refers to the actual performance or
application of knowledge as distinguished from mere possession of knowledge; it connotes

LEGAL COUNSELING : 1ST Assigned Cases Page 7 of 24

an active, habitual, repeated or customary action.1 To "practice" law, or any profession for that matter, means, 4. Attorney-client relationship. Engaging in the practice of law presupposes the existence of lawyer-
to exercise or pursue an employment or profession actively, habitually, repeatedly or customarily. client relationship. Hence, where a lawyer undertakes an activity which requires knowledge of law but
involves no attorney-client relationship, such as teaching law or writing law books or articles, he
Therefore, a doctor of medicine who is employed and is habitually performing the tasks of a nursing aide, cannot cannot be said to be engaged in the practice of his profession or a lawyer (Agpalo, Legal Ethics, 1989
be said to be in the "practice of medicine." A certified public accountant who works as a clerk, cannot be said to ed., p. 30).3
practice his profession as an accountant. In the same way, a lawyer who is employed as a business executive or a
corporate manager, other than as head or attorney of a Legal Department of a corporation or a governmental The above-enumerated factors would, I believe, be useful aids in determining whether or not respondent
agency, cannot be said to be in the practice of law. Monsod meets the constitutional qualification of practice of law for at least ten (10) years at the time of his
appointment as COMELEC Chairman.
As aptly held by this Court in the case of People vs. Villanueva:2
The following relevant questions may be asked:
Practice is more than an isolated appearance for it consists in frequent or customary actions, a
succession of acts of the same kind. In other words, it is frequent habitual exercise (State vs- Cotner, 1. Did respondent Monsod perform any of the tasks which are peculiar to the practice of law?
127, p. 1, 87 Kan. 864, 42 LRA, M.S. 768). Practice of law to fall within the prohibition of statute has
been interpreted as customarily or habitually holding one's self out to the public as a lawyer and 2. Did respondent perform such tasks customarily or habitually?
demanding payment for such services (State vs. Bryan, 4 S.E. 522, 98 N.C. 644,647.) ... (emphasis
supplied).
3. Assuming that he performed any of such tasks habitually, did he do so HABITUALLY FOR AT LEAST TEN (10)
YEARS prior to his appointment as COMELEC Chairman?
It is worth mentioning that the respondent Commission on Appointments in a Memorandum it prepared,
enumerated several factors determinative of whether a particular activity constitutes "practice of law." It states:
Given the employment or job history of respondent Monsod as appears from the records, I am persuaded that if
ever he did perform any of the tasks which constitute the practice of law, he did not do so HABITUALLY for at
1. Habituality. The term "practice of law" implies customarily or habitually holding one's self out to the least ten (10) years prior to his appointment as COMELEC Chairman.
public as a lawyer (People vs. Villanueva, 14 SCRA 109 citing State v. Boyen, 4 S.E. 522, 98 N.C. 644)
such as when one sends a circular announcing the establishment of a law office for the general practice
While it may be granted that he performed tasks and activities which could be latitudinarianly considered
of law (U.S. v. Ney Bosque, 8 Phil. 146), or when one takes the oath of office as a lawyer before a
activities peculiar to the practice of law, like the drafting of legal documents and the rendering of legal opinion or
notary public, and files a manifestation with the Supreme Court informing it of his intention to practice
advice, such were isolated transactions or activities which do not qualify his past endeavors as "practice of law."
law in all courts in the country (People v. De Luna, 102 Phil. 968).
To become engaged in the practice of law, there must be a continuity, or a succession of acts. As observed by the
Solicitor General in People vs. Villanueva:4
Practice is more than an isolated appearance for it consists in frequent or customary action, a
succession of acts of the same kind. In other words, it is a habitual exercise (People v. Villanueva, 14
Essentially, the word private practice of law implies that one must have presented himself to be in
SCRA 109 citing State v. Cotner, 127, p. 1, 87 Kan, 864).
the activeand continued practice of the legal profession and that his professional services are available
to the public for a compensation, as a source of his livelihood or in consideration of his said services.
2. Compensation. Practice of law implies that one must have presented himself to be in the active and
continued practice of the legal profession and that his professional services are available to the public
ACCORDINGLY, my vote is to GRANT the petition and to declare respondent Monsod as not qualified for the
for compensation, as a service of his livelihood or in consideration of his said services. (People v.
position of COMELEC Chairman for not having engaged in the practice of law for at least ten (10) years prior to
Villanueva, supra). Hence, charging for services such as preparation of documents involving the use of
his appointment to such position.
legal knowledge and skill is within the term "practice of law" (Ernani Pao, Bar Reviewer in Legal and
Judicial Ethics, 1988 ed., p. 8 citing People v. People's Stockyards State Bank, 176 N.B. 901) and, one
who renders an opinion as to the proper interpretation of a statute, and receives pay for it, is to that CRUZ, J., dissenting:
extent, practicing law (Martin, supra, p. 806 citing Mendelaun v. Gilbert and Barket Mfg. Co., 290 N.Y.S.
462) If compensation is expected, all advice to clients and all action taken for them in matters I am sincerely impressed by the ponencia of my brother Paras but find I must dissent just the same. There are
connected with the law; are practicing law. (Elwood Fitchette et al., v. Arthur C. Taylor, 94A-L.R. 356- certain points on which I must differ with him while of course respecting hisviewpoint.
359)
To begin with, I do not think we are inhibited from examining the qualifications of the respondent simply
3. Application of law legal principle practice or procedure which calls for legal knowledge, training and because his nomination has been confirmed by the Commission on Appointments. In my view, this is not a
experience is within the term "practice of law". (Martin supra) political question that we are barred from resolving. Determination of the appointee's credentials is made on the

LEGAL COUNSELING : 1ST Assigned Cases Page 8 of 24

basis of the established facts, not the discretion of that body. Even if it were, the exercise of that discretion business and finance, in which areas he has distinguished himself, but as an executive and economist and not as
would still be subject to our review. a practicing lawyer. The plain fact is that he has occupied the various positions listed in his resume by virtue of
his experience and prestige as a businessman and not as an attorney-at-law whose principal attention is focused
In Luego, which is cited in the ponencia, what was involved was the discretion of the appointing authority on the law. Even if it be argued that he was acting as a lawyer when he lobbied in Congress for agrarian and
to choosebetween two claimants to the same office who both possessed the required qualifications. It was that urban reform, served in the NAMFREL and the Constitutional Commission (together with non-lawyers like
kind of discretion that we said could not be reviewed. farmers and priests) and was a member of the Davide Commission, he has not proved that his activities in these
capacities extended over the prescribed 10-year period of actual practice of the law. He is doubtless eminently
qualified for many other positions worthy of his abundant talents but not as Chairman of the Commission on
If a person elected by no less than the sovereign people may be ousted by this Court for lack of the required
Elections.
qualifications, I see no reason why we cannot disqualified an appointee simply because he has passed the
Commission on Appointments.
I have much admiration for respondent Monsod, no less than for Mr. Justice Paras, but I must regretfully vote to
grant the petition.
Even the President of the Philippines may be declared ineligible by this Court in an appropriate proceeding
notwithstanding that he has been found acceptable by no less than the enfranchised citizenry. The reason is that
what we would be examining is not the wisdom of his election but whether or not he was qualified to be elected GUTIERREZ, JR., J., dissenting:
in the first place.
When this petition was filed, there was hope that engaging in the practice of law as a qualification for public
Coming now to the qualifications of the private respondent, I fear that the ponencia may have been too office would be settled one way or another in fairly definitive terms. Unfortunately, this was not the result.
sweeping in its definition of the phrase "practice of law" as to render the qualification practically toothless. From
the numerous activities accepted as embraced in the term, I have the uncomfortable feeling that one does not Of the fourteen (14) member Court, 5 are of the view that Mr. Christian Monsod engaged in the practice of law
even have to be a lawyer to be engaged in the practice of law as long as his activities involve the application of (with one of these 5 leaving his vote behind while on official leave but not expressing his clear stand on the
some law, however peripherally. The stock broker and the insurance adjuster and the realtor could come under matter); 4 categorically stating that he did not practice law; 2 voting in the result because there was no error so
the definition as they deal with or give advice on matters that are likely "to become involved in litigation." gross as to amount to grave abuse of discretion; one of official leave with no instructions left behind on how he
viewed the issue; and 2 not taking part in the deliberations and the decision.
The lawyer is considered engaged in the practice of law even if his main occupation is another business and he
interprets and applies some law only as an incident of such business. That covers every company organized There are two key factors that make our task difficult. First is our reviewing the work of a constitutional
under the Corporation Code and regulated by the SEC under P.D. 902-A. Considering the ramifications of the Commission on Appointments whose duty is precisely to look into the qualifications of persons appointed to high
modern society, there is hardly any activity that is not affected by some law or government regulation the office. Even if the Commission errs, we have no power to set aside error. We can look only into grave abuse of
businessman must know about and observe. In fact, again going by the definition, a lawyer does not even have discretion or whimsically and arbitrariness. Second is our belief that Mr. Monsod possesses superior
to be part of a business concern to be considered a practitioner. He can be so deemed when, on his own, he qualifications in terms of executive ability, proficiency in management, educational background, experience in
rents a house or buys a car or consults a doctor as these acts involve his knowledge and application of the laws international banking and finance, and instant recognition by the public. His integrity and competence are not
regulating such transactions. If he operates a public utility vehicle as his main source of livelihood, he would still questioned by the petitioner. What is before us is compliance with a specific requirement written into the
be deemed engaged in the practice of law because he must obey the Public Service Act and the rules and Constitution.
regulations of the Energy Regulatory Board.
Inspite of my high regard for Mr. Monsod, I cannot shirk my constitutional duty. He has never engaged in the
The ponencia quotes an American decision defining the practice of law as the "performance of any acts ... in or practice of law for even one year. He is a member of the bar but to say that he has practiced law is stretching the
out of court, commonly understood to be the practice of law," which tells us absolutely nothing. The decision term beyond rational limits.
goes on to say that "because lawyers perform almost every function known in the commercial and governmental
realm, such a definition would obviously be too global to be workable." A person may have passed the bar examinations. But if he has not dedicated his life to the law, if he has not
engaged in an activity where membership in the bar is a requirement I fail to see how he can claim to have been
The effect of the definition given in the ponencia is to consider virtually every lawyer to be engaged in the engaged in the practice of law.
practice of law even if he does not earn his living, or at least part of it, as a lawyer. It is enough that his activities
are incidentally (even if only remotely) connected with some law, ordinance, or regulation. The possible Engaging in the practice of law is a qualification not only for COMELEC chairman but also for appointment to the
exception is the lawyer whose income is derived from teaching ballroom dancing or escorting wrinkled ladies Supreme Court and all lower courts. What kind of Judges or Justices will we have if there main occupation is
with pubescent pretensions. selling real estate, managing a business corporation, serving in fact-finding committee, working in media, or
operating a farm with no active involvement in the law, whether in Government or private practice, except that
The respondent's credentials are impressive, to be sure, but they do not persuade me that he has been engaged in one joyful moment in the distant past, they happened to pass the bar examinations?
in the practice of law for ten years as required by the Constitution. It is conceded that he has been engaged in
LEGAL COUNSELING : 1ST Assigned Cases Page 9 of 24
The Constitution uses the phrase "engaged in the practice of law for at least ten years." The deliberate choice of d. Semirara Coal Corporation
words shows that the practice envisioned is active and regular, not isolated, occasional, accidental, intermittent,
incidental, seasonal, or extemporaneous. To be "engaged" in an activity for ten years requires committed e. CBL Timber Corporation
participation in something which is the result of one's decisive choice. It means that one is occupied and involved
in the enterprise; one is obliged or pledged to carry it out with intent and attention during the ten-year period.
Member of the Board of the Following:

I agree with the petitioner that based on the bio-data submitted by respondent Monsod to the Commission on
a. Engineering Construction Corporation of the Philippines
Appointments, the latter has not been engaged in the practice of law for at least ten years. In fact, if appears
that Mr. Monsod has never practiced law except for an alleged one year period after passing the bar
examinations when he worked in his father's law firm. Even then his law practice must have been extremely b. First Philippine Energy Corporation
limited because he was also working for M.A. and Ph. D. degrees in Economics at the University of Pennsylvania
during that period. How could he practice law in the United States while not a member of the Bar there? c. First Philippine Holdings Corporation

The professional life of the respondent follows: d. First Philippine Industrial Corporation

1.15.1. Respondent Monsod's activities since his passing the Bar examinations in 1961 consist of the e. Graphic Atelier
following:
f. Manila Electric Company
1. 1961-1963: M.A. in Economics (Ph. D. candidate), University of Pennsylvania
g. Philippine Commercial Capital, Inc.
2. 1963-1970: World Bank Group Economist, Industry Department; Operations, Latin American
Department; Division Chief, South Asia and Middle East, International Finance Corporation h. Philippine Electric Corporation

3. 1970-1973: Meralco Group Executive of various companies, i.e., Meralco Securities Corporation, i. Tarlac Reforestation and Environment Enterprises
Philippine Petroleum Corporation, Philippine Electric Corporation

j. Tolong Aquaculture Corporation

4. 1973-1976: Yujuico Group President, Fil-Capital Development Corporation and affiliated
companies
k. Visayan Aquaculture Corporation
5. 1976-1978: Finaciera Manila Chief Executive Officer
l. Guimaras Aquaculture Corporation (Rollo, pp. 21-22)
6. 1978-1986: Guevent Group of Companies Chief Executive Officer
There is nothing in the above bio-data which even remotely indicates that respondent Monsod has given the
lawenough attention or a certain degree of commitment and participation as would support in all sincerity and
7. 1986-1987: Philippine Constitutional Commission Member candor the claim of having engaged in its practice for at least ten years. Instead of working as a lawyer, he has
lawyers working for him. Instead of giving receiving that legal advice of legal services, he was the oneadvice and
8. 1989-1991: The Fact-Finding Commission on the December 1989 Coup Attempt Member those services as an executive but not as a lawyer.

9. Presently: Chairman of the Board and Chief Executive Officer of the following companies: The deliberations before the Commission on Appointments show an effort to equate "engaged in the practice of
law" with the use of legal knowledge in various fields of endeavor such as commerce, industry, civic work, blue
a. ACE Container Philippines, Inc. ribbon investigations, agrarian reform, etc. where such knowledge would be helpful.

b. Dataprep, Philippines I regret that I cannot join in playing fast and loose with a term, which even an ordinary layman accepts as having
a familiar and customary well-defined meaning. Every resident of this country who has reached the age of
discernment has to know, follow, or apply the law at various times in his life. Legal knowledge is useful if not
c. Philippine SUNsystems Products, Inc.
necessary for the business executive, legislator, mayor, barangay captain, teacher, policeman, farmer, fisherman,

LEGAL COUNSELING : 1ST Assigned Cases Page 10 of 24

market vendor, and student to name only a few. And yet, can these people honestly assert that as such, they are xxx xxx xxx
engaged in the practice of law?
... An attorney, in the most general sense, is a person designated or employed by another to act in his
The Constitution requires having been "engaged in the practice of law for at least ten years." It is not satisfied stead; an agent; more especially, one of a class of persons authorized to appear and act for suitors or
with having been "a member of the Philippine bar for at least ten years." defendants in legal proceedings. Strictly, these professional persons are attorneys at law, and non-
professional agents are properly styled "attorney's in fact;" but the single word is much used as
Some American courts have defined the practice of law, as follows: meaning an attorney at law. A person may be an attorney in facto for another, without being an
attorney at law. Abb. Law Dict. "Attorney." A public attorney, or attorney at law, says Webster, is an
officer of a court of law, legally qualified to prosecute and defend actions in such court on
The practice of law involves not only appearance in court in connection with litigation but also services
the retainer of clients. "The principal duties of an attorney are (1) to be true to the court and to his
rendered out of court, and it includes the giving of advice or the rendering of any services requiring the
client; (2) to manage the business of his client with care, skill, and integrity; (3) to keep his client
use of legal skill or knowledge, such as preparing a will, contract or other instrument, the legal effect of
informed as to the state of his business; (4) to keep his secrets confided to him as such. ... His rights are
which, under the facts and conditions involved, must be carefully determined. People ex rel. Chicago
to be justly compensated for his services." Bouv. Law Dict. tit. "Attorney." The transitive verb
Bar Ass'n v. Tinkoff, 399 Ill. 282, 77 N.E.2d 693; People ex rel. Illinois State Bar Ass'n v. People's Stock
"practice," as defined by Webster, means 'to do or perform frequently, customarily, or habitually; to
Yards State Bank, 344 Ill. 462,176 N.E. 901, and cases cited.
perform by a succession of acts, as, to practice gaming, ... to carry on in practice, or repeated action; to
apply, as a theory, to real life; to exercise, as a profession, trade, art. etc.; as, to practice law or
It would be difficult, if not impossible to lay down a formula or definition of what constitutes the medicine,' etc...." (State v. Bryan, S.E. 522, 523; Emphasis supplied)
practice of law. "Practicing law" has been defined as "Practicing as an attorney or counselor at law
according to the laws and customs of our courts, is the giving of advice or rendition of any sort of
In this jurisdiction, we have ruled that the practice of law denotes frequency or a succession of acts. Thus, we
service by any person, firm or corporation when the giving of such advice or rendition of such service
stated in the case of People v. Villanueva (14 SCRA 109 [1965]):
requires the use of any degree of legal knowledge or skill." Without adopting that definition, we
referred to it as being substantially correct in People ex rel. Illinois State Bar Ass'n v. People's Stock
Yards State Bank, 344 Ill. 462,176 N.E. 901. (People v. Schafer, 87 N.E. 2d 773, 776) xxx xxx xxx

For one's actions to come within the purview of practice of law they should not only be activities peculiar to the ... Practice is more than an isolated appearance, for it consists in frequent or customary actions, a succession of
work of a lawyer, they should also be performed, habitually, frequently or customarily, to wit: acts of the same kind. In other words, it is frequent habitual exercise (State v. Cotner, 127, p. 1, 87 Kan. 864, 42
LRA, M.S. 768). Practice of law to fall within the prohibition of statute has been interpreted as customarily or
habitually holding one's self out to the public, as a lawyer and demanding payment for such services. ... . (at p.
xxx xxx xxx
112)

Respondent's answers to questions propounded to him were rather evasive. He was asked whether or
It is to be noted that the Commission on Appointment itself recognizes habituality as a required component of
not he ever prepared contracts for the parties in real-estate transactions where he was not the
the meaning of practice of law in a Memorandum prepared and issued by it, to wit:
procuring agent. He answered: "Very seldom." In answer to the question as to how many times he had
prepared contracts for the parties during the twenty-one years of his business, he said: "I have no
Idea." When asked if it would be more than half a dozen times his answer was I suppose. Asked if he l. Habituality. The term 'practice of law' implies customarilyor habitually holding one's self out to the
did not recall making the statement to several parties that he had prepared contracts in a large public as a lawyer (People v. Villanueva, 14 SCRA 109 citing State v. Bryan, 4 S.E. 522, 98 N.C. 644) such
number of instances, he answered: "I don't recall exactly what was said." When asked if he did not as when one sends a circular announcing the establishment of a law office for the general practice of
remember saying that he had made a practice of preparing deeds, mortgages and contracts and law (U.S. v. Noy Bosque, 8 Phil. 146), or when one takes the oath of office as a lawyer before a notary
charging a fee to the parties therefor in instances where he was not the broker in the deal, he public, and files a manifestation with the Supreme Court informing it of his intention to practice law in
answered: "Well, I don't believe so, that is not a practice." Pressed further for an answer as to his all courts in the country (People v. De Luna, 102 Phil. 968).
practice in preparing contracts and deeds for parties where he was not the broker, he finally answered:
"I have done about everything that is on the books as far as real estate is concerned." Practice is more than an isolated appearance, for it consists in frequent or customary action, a
succession of acts of the same kind. In other words, it is a habitual exercise (People v. Villanueva, 14
xxx xxx xxx SCRA 1 09 citing State v. Cotner, 1 27, p. 1, 87 Kan, 864)." (Rollo, p. 115)

Respondent takes the position that because he is a real-estate broker he has a lawful right to do any xxx xxx xxx
legal work in connection with real-estate transactions, especially in drawing of real-estate contracts,
deeds, mortgages, notes and the like. There is no doubt but that he has engaged in these practices While the career as a businessman of respondent Monsod may have profited from his legal knowledge, the use
over the years and has charged for his services in that connection. ... (People v. Schafer, 87 N.E. 2d 773) of such legal knowledge is incidental and consists of isolated activities which do not fall under the denomination
LEGAL COUNSELING : 1ST Assigned Cases Page 11 of 24
of practice of law. Admission to the practice of law was not required for membership in the Constitutional jurisprudence already showed prima facie that respondent Monsod did not possess the needed qualification,
Commission or in the Fact-Finding Commission on the 1989 Coup Attempt. Any specific legal activities which may that is, he had not engaged in the practice of law for at least ten (10) years prior to his appointment as COMELEC
have been assigned to Mr. Monsod while a member may be likened to isolated transactions of foreign Chairman.
corporations in the Philippines which do not categorize the foreign corporations as doing business in the
Philippines. As in the practice of law, doing business also should be active and continuous. Isolated business After considering carefully respondent Monsod's comment, I am even more convinced that the constitutional
transactions or occasional, incidental and casual transactions are not within the context of doing business. This requirement of "practice of law for at least ten (10) years" has not been met.
was our ruling in the case of Antam Consolidated, Inc. v. Court of appeals, 143 SCRA 288 [1986]).
The procedural barriers interposed by respondents deserve scant consideration because, ultimately, the core
Respondent Monsod, corporate executive, civic leader, and member of the Constitutional Commission may issue to be resolved in this petition is the proper construal of the constitutional provision requiring a majority of
possess the background, competence, integrity, and dedication, to qualify for such high offices as President, the membership of COMELEC, including the Chairman thereof to "have been engaged in the practice of law for at
Vice-President, Senator, Congressman or Governor but the Constitution in prescribing the specific qualification least ten (10) years." (Art. IX(C), Section 1(1), 1987 Constitution). Questions involving the construction of
of having engaged in the practice of law for at least ten (10) years for the position of COMELEC Chairman has constitutional provisions are best left to judicial resolution. As declared in Angara v. Electoral Commission, (63
ordered that he may not be confirmed for that office. The Constitution charges the public respondents no less Phil. 139) "upon the judicial department is thrown the solemn and inescapable obligation of interpreting the
than this Court to obey its mandate. Constitution and defining constitutional boundaries."

I, therefore, believe that the Commission on Appointments committed grave abuse of discretion in confirming The Constitution has imposed clear and specific standards for a COMELEC Chairman. Among these are that he
the nomination of respondent Monsod as Chairman of the COMELEC. must have been "engaged in the practice of law for at least ten (10) years." It is the bounden duty of this Court to
ensure that such standard is met and complied with.
I vote to GRANT the petition.
What constitutes practice of law? As commonly understood, "practice" refers to the actual performance or
Bidin, J., dissent application of knowledge as distinguished from mere possession of knowledge; it connotes
an active, habitual, repeated or customary action.1 To "practice" law, or any profession for that matter, means,
to exercise or pursue an employment or profession actively, habitually, repeatedly or customarily.

Separate Opinions Therefore, a doctor of medicine who is employed and is habitually performing the tasks of a nursing aide, cannot
be said to be in the "practice of medicine." A certified public accountant who works as a clerk, cannot be said to
practice his profession as an accountant. In the same way, a lawyer who is employed as a business executive or a
NARVASA, J., concurring:
corporate manager, other than as head or attorney of a Legal Department of a corporation or a governmental
agency, cannot be said to be in the practice of law.
I concur with the decision of the majority written by Mr. Justice Paras, albeit only in the result; it does not appear
to me that there has been an adequate showing that the challenged determination by the Commission on
As aptly held by this Court in the case of People vs. Villanueva:2
Appointments-that the appointment of respondent Monsod as Chairman of the Commission on Elections should,
on the basis of his stated qualifications and after due assessment thereof, be confirmed-was attended by error
so gross as to amount to grave abuse of discretion and consequently merits nullification by this Court in Practice is more than an isolated appearance for it consists in frequent or customary actions, a
accordance with the second paragraph of Section 1, Article VIII of the Constitution. I therefore vote to DENY the succession of acts of the same kind. In other words, it is frequent habitual exercise (State vs- Cotner,
petition. 127, p. 1, 87 Kan. 864, 42 LRA, M.S. 768). Practice of law to fall within the prohibition of statute has
been interpreted as customarily or habitually holding one's self out to the public as a lawyer and
demanding payment for such services (State vs. Bryan, 4 S.E. 522, 98 N.C. 644,647.) ... (emphasis
Melencio-Herrera, J., concur.
supplied).

PADILLA, J., dissenting:

It is worth mentioning that the respondent Commission on Appointments in a Memorandum it prepared,
enumerated several factors determinative of whether a particular activity constitutes "practice of law." It states:
The records of this case will show that when the Court first deliberated on the Petition at bar, I voted not only to
require the respondents to comment on the Petition, but I was the sole vote for the issuance of a temporary
1. Habituality. The term "practice of law" implies customarily or habitually holding one's self out to the
restraining order to enjoin respondent Monsod from assuming the position of COMELEC Chairman, while the
public as a lawyer (People vs. Villanueva, 14 SCRA 109 citing State v. Boyen, 4 S.E. 522, 98 N.C. 644)
Court deliberated on his constitutional qualification for the office. My purpose in voting for a TRO was to prevent
such as when one sends a circular announcing the establishment of a law office for the general practice
the inconvenience and even embarrassment to all parties concerned were the Court to finally decide for
of law (U.S. v. Ney Bosque, 8 Phil. 146), or when one takes the oath of office as a lawyer before a
respondent Monsod's disqualification. Moreover, a reading of the Petition then in relation to established
LEGAL COUNSELING : 1ST Assigned Cases Page 12 of 24
 notary public, and files a manifestation with the Supreme Court informing it of his intention to practice While it may be granted that he performed tasks and activities which could be latitudinarianly considered
law in all courts in the country (People v. De Luna, 102 Phil. 968). activities peculiar to the practice of law, like the drafting of legal documents and the rendering of legal opinion or
advice, such were isolated transactions or activities which do not qualify his past endeavors as "practice of law."
Practice is more than an isolated appearance for it consists in frequent or customary action, a To become engaged in the practice of law, there must be a continuity, or a succession of acts. As observed by the
succession of acts of the same kind. In other words, it is a habitual exercise (People v. Villanueva, 14 Solicitor General in People vs. Villanueva:4
SCRA 109 citing State v. Cotner, 127, p. 1, 87 Kan, 864).
Essentially, the word private practice of law implies that one must have presented himself to be in
2. Compensation. Practice of law implies that one must have presented himself to be in the active and the activeand continued practice of the legal profession and that his professional services are available
continued practice of the legal profession and that his professional services are available to the public to the public for a compensation, as a source of his livelihood or in consideration of his said services.
for compensation, as a service of his livelihood or in consideration of his said services. (People v.
Villanueva, supra). Hence, charging for services such as preparation of documents involving the use of ACCORDINGLY, my vote is to GRANT the petition and to declare respondent Monsod as not qualified for the
legal knowledge and skill is within the term "practice of law" (Ernani Pao, Bar Reviewer in Legal and position of COMELEC Chairman for not having engaged in the practice of law for at least ten (10) years prior to
Judicial Ethics, 1988 ed., p. 8 citing People v. People's Stockyards State Bank, 176 N.B. 901) and, one his appointment to such position.
who renders an opinion as to the proper interpretation of a statute, and receives pay for it, is to that
extent, practicing law (Martin, supra, p. 806 citing Mendelaun v. Gilbert and Barket Mfg. Co., 290 N.Y.S. CRUZ, J., dissenting:
462) If compensation is expected, all advice to clients and all action taken for them in matters
connected with the law; are practicing law. (Elwood Fitchette et al., v. Arthur C. Taylor, 94A-L.R. 356-
I am sincerely impressed by the ponencia of my brother Paras but find I must dissent just the same. There are
359)
certain points on which I must differ with him while of course respecting hisviewpoint.

3. Application of law legal principle practice or procedure which calls for legal knowledge, training and
To begin with, I do not think we are inhibited from examining the qualifications of the respondent simply
experience is within the term "practice of law". (Martin supra)
because his nomination has been confirmed by the Commission on Appointments. In my view, this is not a
political question that we are barred from resolving. Determination of the appointee's credentials is made on the
4. Attorney-client relationship. Engaging in the practice of law presupposes the existence of lawyer- basis of the established facts, not the discretion of that body. Even if it were, the exercise of that discretion
client relationship. Hence, where a lawyer undertakes an activity which requires knowledge of law but would still be subject to our review.
involves no attorney-client relationship, such as teaching law or writing law books or articles, he
cannot be said to be engaged in the practice of his profession or a lawyer (Agpalo, Legal Ethics, 1989
In Luego, which is cited in the ponencia, what was involved was the discretion of the appointing authority
ed., p. 30).3
to choosebetween two claimants to the same office who both possessed the required qualifications. It was that
kind of discretion that we said could not be reviewed.
The above-enumerated factors would, I believe, be useful aids in determining whether or not respondent
Monsod meets the constitutional qualification of practice of law for at least ten (10) years at the time of his
If a person elected by no less than the sovereign people may be ousted by this Court for lack of the required
appointment as COMELEC Chairman.
qualifications, I see no reason why we cannot disqualified an appointee simply because he has passed the
Commission on Appointments.
The following relevant questions may be asked:
Even the President of the Philippines may be declared ineligible by this Court in an appropriate proceeding
1. Did respondent Monsod perform any of the tasks which are peculiar to the practice of law? notwithstanding that he has been found acceptable by no less than the enfranchised citizenry. The reason is that
what we would be examining is not the wisdom of his election but whether or not he was qualified to be elected
2. Did respondent perform such tasks customarily or habitually? in the first place.

3. Assuming that he performed any of such tasks habitually, did he do so HABITUALLY FOR AT LEAST TEN (10) Coming now to the qualifications of the private respondent, I fear that the ponencia may have been too
YEARS prior to his appointment as COMELEC Chairman? sweeping in its definition of the phrase "practice of law" as to render the qualification practically toothless. From
the numerous activities accepted as embraced in the term, I have the uncomfortable feeling that one does not
Given the employment or job history of respondent Monsod as appears from the records, I am persuaded that if even have to be a lawyer to be engaged in the practice of law as long as his activities involve the application of
ever he did perform any of the tasks which constitute the practice of law, he did not do so HABITUALLY for at some law, however peripherally. The stock broker and the insurance adjuster and the realtor could come under
least ten (10) years prior to his appointment as COMELEC Chairman. the definition as they deal with or give advice on matters that are likely "to become involved in litigation."

LEGAL COUNSELING : 1ST Assigned Cases Page 13 of 24

The lawyer is considered engaged in the practice of law even if his main occupation is another business and he There are two key factors that make our task difficult. First is our reviewing the work of a constitutional
interprets and applies some law only as an incident of such business. That covers every company organized Commission on Appointments whose duty is precisely to look into the qualifications of persons appointed to high
under the Corporation Code and regulated by the SEC under P.D. 902-A. Considering the ramifications of the office. Even if the Commission errs, we have no power to set aside error. We can look only into grave abuse of
modern society, there is hardly any activity that is not affected by some law or government regulation the discretion or whimsically and arbitrariness. Second is our belief that Mr. Monsod possesses superior
businessman must know about and observe. In fact, again going by the definition, a lawyer does not even have qualifications in terms of executive ability, proficiency in management, educational background, experience in
to be part of a business concern to be considered a practitioner. He can be so deemed when, on his own, he international banking and finance, and instant recognition by the public. His integrity and competence are not
rents a house or buys a car or consults a doctor as these acts involve his knowledge and application of the laws questioned by the petitioner. What is before us is compliance with a specific requirement written into the
regulating such transactions. If he operates a public utility vehicle as his main source of livelihood, he would still Constitution.
be deemed engaged in the practice of law because he must obey the Public Service Act and the rules and
regulations of the Energy Regulatory Board. Inspite of my high regard for Mr. Monsod, I cannot shirk my constitutional duty. He has never engaged in the
practice of law for even one year. He is a member of the bar but to say that he has practiced law is stretching the
The ponencia quotes an American decision defining the practice of law as the "performance of any acts . . . in or term beyond rational limits.
out of court, commonly understood to be the practice of law," which tells us absolutely nothing. The decision
goes on to say that "because lawyers perform almost every function known in the commercial and governmental A person may have passed the bar examinations. But if he has not dedicated his life to the law, if he has not
realm, such a definition would obviously be too global to be workable." engaged in an activity where membership in the bar is a requirement I fail to see how he can claim to have been
engaged in the practice of law.
The effect of the definition given in the ponencia is to consider virtually every lawyer to be engaged in the
practice of law even if he does not earn his living, or at least part of it, as a lawyer. It is enough that his activities Engaging in the practice of law is a qualification not only for COMELEC chairman but also for appointment to the
are incidentally (even if only remotely) connected with some law, ordinance, or regulation. The possible Supreme Court and all lower courts. What kind of Judges or Justices will we have if there main occupation is
exception is the lawyer whose income is derived from teaching ballroom dancing or escorting wrinkled ladies selling real estate, managing a business corporation, serving in fact-finding committee, working in media, or
with pubescent pretensions. operating a farm with no active involvement in the law, whether in Government or private practice, except that
in one joyful moment in the distant past, they happened to pass the bar examinations?
The respondent's credentials are impressive, to be sure, but they do not persuade me that he has been engaged
in the practice of law for ten years as required by the Constitution. It is conceded that he has been engaged in The Constitution uses the phrase "engaged in the practice of law for at least ten years." The deliberate choice of
business and finance, in which areas he has distinguished himself, but as an executive and economist and not as words shows that the practice envisioned is active and regular, not isolated, occasional, accidental, intermittent,
a practicing lawyer. The plain fact is that he has occupied the various positions listed in his resume by virtue of incidental, seasonal, or extemporaneous. To be "engaged" in an activity for ten years requires committed
his experience and prestige as a businessman and not as an attorney-at-law whose principal attention is focused participation in something which is the result of one's decisive choice. It means that one is occupied and involved
on the law. Even if it be argued that he was acting as a lawyer when he lobbied in Congress for agrarian and in the enterprise; one is obliged or pledged to carry it out with intent and attention during the ten-year period.
urban reform, served in the NAMFREL and the Constitutional Commission (together with non-lawyers like
farmers and priests) and was a member of the Davide Commission, he has not proved that his activities in these
I agree with the petitioner that based on the bio-data submitted by respondent Monsod to the Commission on
capacities extended over the prescribed 10-year period of actual practice of the law. He is doubtless eminently
Appointments, the latter has not been engaged in the practice of law for at least ten years. In fact, if appears
qualified for many other positions worthy of his abundant talents but not as Chairman of the Commission on
that Mr. Monsod has never practiced law except for an alleged one year period after passing the bar
Elections.
examinations when he worked in his father's law firm. Even then his law practice must have been extremely
limited because he was also working for M.A. and Ph. D. degrees in Economics at the University of Pennsylvania
I have much admiration for respondent Monsod, no less than for Mr. Justice Paras, but I must regretfully vote to during that period. How could he practice law in the United States while not a member of the Bar there?
grant the petition.
The professional life of the respondent follows:
GUTIERREZ, JR., J., dissenting:
1.15.1. Respondent Monsod's activities since his passing the Bar examinations in 1961 consist of the
When this petition was filed, there was hope that engaging in the practice of law as a qualification for public following:
office would be settled one way or another in fairly definitive terms. Unfortunately, this was not the result.
1. 1961-1963: M.A. in Economics (Ph. D. candidate), University of Pennsylvania
Of the fourteen (14) member Court, 5 are of the view that Mr. Christian Monsod engaged in the practice of law
(with one of these 5 leaving his vote behind while on official leave but not expressing his clear stand on the
2. 1963-1970: World Bank Group Economist, Industry Department; Operations, Latin American
matter); 4 categorically stating that he did not practice law; 2 voting in the result because there was no error so
Department; Division Chief, South Asia and Middle East, International Finance Corporation
gross as to amount to grave abuse of discretion; one of official leave with no instructions left behind on how he
viewed the issue; and 2 not taking part in the deliberations and the decision.
LEGAL COUNSELING : 1ST Assigned Cases Page 14 of 24
 3. 1970-1973: Meralco Group Executive of various companies, i.e., Meralco Securities Corporation, i. Tarlac Reforestation and Environment Enterprises
Philippine Petroleum Corporation, Philippine Electric Corporation
j. Tolong Aquaculture Corporation
4. 1973-1976: Yujuico Group President, Fil-Capital Development Corporation and affiliated
companies k. Visayan Aquaculture Corporation

5. 1976-1978: Finaciera Manila Chief Executive Officer l. Guimaras Aquaculture Corporation (Rollo, pp. 21-22)

6. 1978-1986: Guevent Group of Companies Chief Executive Officer There is nothing in the above bio-data which even remotely indicates that respondent Monsod has given the
lawenough attention or a certain degree of commitment and participation as would support in all sincerity and
7. 1986-1987: Philippine Constitutional Commission Member candor the claim of having engaged in its practice for at least ten years. Instead of working as a lawyer, he has
lawyers working for him. Instead of giving receiving that legal advice of legal services, he was the oneadvice and
8. 1989-1991: The Fact-Finding Commission on the December 1989 Coup Attempt Member those services as an executive but not as a lawyer.

9. Presently: Chairman of the Board and Chief Executive Officer of the following companies: The deliberations before the Commission on Appointments show an effort to equate "engaged in the practice of
law" with the use of legal knowledge in various fields of endeavor such as commerce, industry, civic work, blue
ribbon investigations, agrarian reform, etc. where such knowledge would be helpful.
a. ACE Container Philippines, Inc.

I regret that I cannot join in playing fast and loose with a term, which even an ordinary layman accepts as having
b. Dataprep, Philippines
a familiar and customary well-defined meaning. Every resident of this country who has reached the age of
discernment has to know, follow, or apply the law at various times in his life. Legal knowledge is useful if not
c. Philippine SUNsystems Products, Inc. necessary for the business executive, legislator, mayor, barangay captain, teacher, policeman, farmer, fisherman,
market vendor, and student to name only a few. And yet, can these people honestly assert that as such, they are
d. Semirara Coal Corporation engaged in the practice of law?

e. CBL Timber Corporation The Constitution requires having been "engaged in the practice of law for at least ten years." It is not satisfied
with having been "a member of the Philippine bar for at least ten years."
Member of the Board of the Following:
Some American courts have defined the practice of law, as follows:
a. Engineering Construction Corporation of the Philippines
The practice of law involves not only appearance in court in connection with litigation but also services
b. First Philippine Energy Corporation rendered out of court, and it includes the giving of advice or the rendering of any services requiring the
use of legal skill or knowledge, such as preparing a will, contract or other instrument, the legal effect of
which, under the facts and conditions involved, must be carefully determined. People ex rel. Chicago
c. First Philippine Holdings Corporation Bar Ass'n v. Tinkoff, 399 Ill. 282, 77 N.E.2d 693; People ex rel. Illinois State Bar Ass'n v. People's Stock
Yards State Bank, 344 Ill. 462,176 N.E. 901, and cases cited.
d. First Philippine Industrial Corporation
It would be difficult, if not impossible to lay down a formula or definition of what constitutes the
e. Graphic Atelier practice of law. "Practicing law" has been defined as "Practicing as an attorney or counselor at law
according to the laws and customs of our courts, is the giving of advice or rendition of any sort of
f. Manila Electric Company service by any person, firm or corporation when the giving of such advice or rendition of such service
requires the use of any degree of legal knowledge or skill." Without adopting that definition, we
referred to it as being substantially correct in People ex rel. Illinois State Bar Ass'n v. People's Stock
g. Philippine Commercial Capital, Inc.
Yards State Bank, 344 Ill. 462,176 N.E. 901. (People v. Schafer, 87 N.E. 2d 773, 776)

h. Philippine Electric Corporation

LEGAL COUNSELING : 1ST Assigned Cases Page 15 of 24

For one's actions to come within the purview of practice of law they should not only be activities peculiar to the ... Practice is more than an isolated appearance, for it consists in frequent or customary actions, a succession of
work of a lawyer, they should also be performed, habitually, frequently or customarily, to wit: acts of the same kind. In other words, it is frequent habitual exercise (State v. Cotner, 127, p. 1, 87 Kan. 864, 42
LRA, M.S. 768). Practice of law to fall within the prohibition of statute has been interpreted as customarily or
xxx xxx xxx habitually holding one's self out to the public, as a lawyer and demanding payment for such services. ... . (at p.
112)
Respondent's answers to questions propounded to him were rather evasive. He was asked whether or
not he ever prepared contracts for the parties in real-estate transactions where he was not the It is to be noted that the Commission on Appointment itself recognizes habituality as a required component of
procuring agent. He answered: "Very seldom." In answer to the question as to how many times he had the meaning of practice of law in a Memorandum prepared and issued by it, to wit:
prepared contracts for the parties during the twenty-one years of his business, he said: "I have no
Idea." When asked if it would be more than half a dozen times his answer was I suppose. Asked if he l. Habituality. The term 'practice of law' implies customarilyor habitually holding one's self out to the
did not recall making the statement to several parties that he had prepared contracts in a large public as a lawyer (People v. Villanueva, 14 SCRA 109 citing State v. Bryan, 4 S.E. 522, 98 N.C. 644) such
number of instances, he answered: "I don't recall exactly what was said." When asked if he did not as when one sends a circular announcing the establishment of a law office for the general practice of
remember saying that he had made a practice of preparing deeds, mortgages and contracts and law (U.S. v. Noy Bosque, 8 Phil. 146), or when one takes the oath of office as a lawyer before a notary
charging a fee to the parties therefor in instances where he was not the broker in the deal, he public, and files a manifestation with the Supreme Court informing it of his intention to practice law in
answered: "Well, I don't believe so, that is not a practice." Pressed further for an answer as to his all courts in the country (People v. De Luna, 102 Phil. 968).
practice in preparing contracts and deeds for parties where he was not the broker, he finally answered:
"I have done about everything that is on the books as far as real estate is concerned." Practice is more than an isolated appearance, for it consists in frequent or customary action, a
succession of acts of the same kind. In other words, it is a habitual exercise (People v. Villanueva, 14
xxx xxx xxx SCRA 1 09 citing State v. Cotner, 1 27, p. 1, 87 Kan, 864)." (Rollo, p. 115)

Respondent takes the position that because he is a real-estate broker he has a lawful right to do any xxx xxx xxx
legal work in connection with real-estate transactions, especially in drawing of real-estate contracts,
deeds, mortgages, notes and the like. There is no doubt but that he has engaged in these practices While the career as a businessman of respondent Monsod may have profited from his legal knowledge, the use
over the years and has charged for his services in that connection. ... (People v. Schafer, 87 N.E. 2d 773) of such legal knowledge is incidental and consists of isolated activities which do not fall under the denomination
of practice of law. Admission to the practice of law was not required for membership in the Constitutional
xxx xxx xxx Commission or in the Fact-Finding Commission on the 1989 Coup Attempt. Any specific legal activities which may
have been assigned to Mr. Monsod while a member may be likened to isolated transactions of foreign
... An attorney, in the most general sense, is a person designated or employed by another to act in his corporations in the Philippines which do not categorize the foreign corporations as doing business in the
stead; an agent; more especially, one of a class of persons authorized to appear and act for suitors or Philippines. As in the practice of law, doing business also should be active and continuous. Isolated business
defendants in legal proceedings. Strictly, these professional persons are attorneys at law, and non- transactions or occasional, incidental and casual transactions are not within the context of doing business. This
professional agents are properly styled "attorney's in fact;" but the single word is much used as was our ruling in the case of Antam Consolidated, Inc. v. Court of appeals, 143 SCRA 288 [1986]).
meaning an attorney at law. A person may be an attorney in facto for another, without being an
attorney at law. Abb. Law Dict. "Attorney." A public attorney, or attorney at law, says Webster, is an Respondent Monsod, corporate executive, civic leader, and member of the Constitutional Commission may
officer of a court of law, legally qualified to prosecute and defend actions in such court on possess the background, competence, integrity, and dedication, to qualify for such high offices as President,
the retainer of clients. "The principal duties of an attorney are (1) to be true to the court and to his Vice-President, Senator, Congressman or Governor but the Constitution in prescribing the specific qualification
client; (2) to manage the business of his client with care, skill, and integrity; (3) to keep his client of having engaged in the practice of law for at least ten (10) years for the position of COMELEC Chairman has
informed as to the state of his business; (4) to keep his secrets confided to him as such. ... His rights are ordered that he may not be confirmed for that office. The Constitution charges the public respondents no less
to be justly compensated for his services." Bouv. Law Dict. tit. "Attorney." The transitive verb than this Court to obey its mandate.
"practice," as defined by Webster, means 'to do or perform frequently, customarily, or habitually; to
perform by a succession of acts, as, to practice gaming, ... to carry on in practice, or repeated action; to I, therefore, believe that the Commission on Appointments committed grave abuse of discretion in confirming
apply, as a theory, to real life; to exercise, as a profession, trade, art. etc.; as, to practice law or the nomination of respondent Monsod as Chairman of the COMELEC.
medicine,' etc...." (State v. Bryan, S.E. 522, 523; Emphasis supplied)
I vote to GRANT the petition.
In this jurisdiction, we have ruled that the practice of law denotes frequency or a succession of acts. Thus, we
stated in the case of People v. Villanueva (14 SCRA 109 [1965]):
Bidin, J., dissent

xxx xxx xxx

LEGAL COUNSELING : 1ST Assigned Cases Page 16 of 24
2. [G.R. No. 105938. September 20, 1996] On August 20, 1991, respondent Presidential Commission on Good Government (hereinafter referred to as
respondent PCGG) filed a "Motion to Admit Third Amended Complaint" and "Third Amended Complaint" which
TEODORO R. REGALA, EDGARDO J. ANGARA, AVELINO V. CRUZ, JOSE C. CONCEPCION, ROGELIO A. VINLUAN, excluded private respondent Raul S. Roco from the complaint in PCGG Case No. 33 as party-
VICTOR P. LAZATIN, and EDUARDO U. ESCUETA, petitioners, vs. THE HONORABLE SANDIGANBAYAN, First defendant.[3] Respondent PCGG based its exclusion of private respondent Roco as party-defendant on his
Division, REPUBLIC OF THE PHILIPPINES, ACTING THROUGH THE PRESIDENTIAL COMMISSION ON GOOD undertaking that he will reveal the identity of the principal/s for whom he acted as nominee/stockholder in the
GOVERNMENT, and RAUL S. ROCO, respondents. companies involved in PCGG Case No. 33.[4]

[G.R. No. 108113. September 20, 1996] Petitioners were included in the Third Amended Complaint on the strength of the following allegations:

PARAJA G. HAYUDINI, petitioner, vs. THE SANDIGANBAYAN and THE REPUBLIC OF THE 14. Defendants Eduardo Cojuangco, Jr., Edgardo J. Angara, Jose C. Concepcion, Teodoro Regala, Avelino V. Cruz,
PHILIPPINES, respondents. Rogelio A. Vinluan, Eduardo U. Escueta, Paraja G. Hayudini and Raul Roco of the Angara Concepcion Cruz Regala
and Abello law offices (ACCRA) plotted, devised, schemed. conspired and confederated with each other in setting
up, through the use of the coconut levy funds, the financial and corporate framework and structures that led to
DECISION
the establishment of UCPB, UNICOM, COCOLIFE, COCOMARK, CIC, and more than twenty other coconut levy
funded corporations, including the acquisition of San Miguel Corporation shares and its institutionalization
KAPUNAN, J.: through presidential directives of the coconut monopoly. Through insidious means and machinations, ACCRA,
being the wholly-owned investment arm, ACCRA Investments Corporation, became the holder of approximately
These cases touch the very cornerstone of every State's judicial system, upon which the workings of the fifteen million shares representing roughly 3.3% of the total outstanding capital stock of UCPB as of 31 March
contentious and adversarial system in the Philippine legal process are based - the sanctity of fiduciary duty in the 1987. This ranks ACCRA Investments Corporation number 44 among the top 100 biggest stockholders of UCPB
client-lawyer relationship. The fiduciary duty of a counsel and advocate is also what makes the law profession a which has approximately 1,400,000 shareholders. On the other hand, corporate books show the name Edgardo J.
unique position of trust and confidence, which distinguishes it from any other calling. In this instance, we have Angara as holding approximately 3,744 shares as of February, 1984.[5]
no recourse but to uphold and strengthen the mantle of protection accorded to the confidentiality that proceeds
from the performance of the lawyer's duty to his client. In their answer to the Expanded Amended Complaint, petitioners ACCRA lawyers alleged that:

The facts of the case are undisputed. 4.4. Defendants-ACCRA lawyers participation in the acts with which their co-defendants are charged, was in
furtherance of legitimate lawyering.
The matters raised herein are an offshoot of the institution of the Complaint on July 31, 1987 before the
Sandiganbayan by the Republic of the Philippines, through the Presidential Commission on Good Government 4.4.1. In the course of rendering professional and legal services to clients, defendants-ACCRA lawyers, Jose C.
against Eduardo M. Cojuangco, Jr., as one of the principal defendants, for the recovery of alleged ill-gotten Concepcion, Teodoro D. Regala, Rogelio A. Vinluan and Eduardo U. Escueta, became holders of shares of stock in
wealth, which includes shares of stocks in the named corporations in PCGG Case No. 33 (Civil Case No. 0033), the corporations listed under their respective names in Annex A of the expanded Amended Complaint as
entitled "Republic of the Philippines versus Eduardo Cojuangco, et al."[1] incorporating or acquiring stockholders only and, as such, they do not claim any proprietary interest in the said
shares of stock.
Among the defendants named in the case are herein petitioners Teodoro Regala, Edgardo J. Angara, Avelino V.
Cruz, Jose C. Concepcion, Rogelio A. Vinluan, Victor P. Lazatin, Eduardo U. Escueta and Paraja G. Hayudini, and 4.5. Defendant ACCRA-lawyer Avelino V. Cruz was one of the incorporators in 1976 of Mermaid Marketing
herein private respondent Raul S. Roco, who all were then partners of the law firm Angara, Abello, Concepcion, Corporation, which was organized for legitimate business purposes not related to the allegations of the
Regala and Cruz Law Offices (hereinafter referred to as the ACCRA Law Firm). ACCRA Law Firm performed legal expanded Amended Complaint. However, he has long ago transferred any material interest therein and
services for its clients, which included, among others, the organization and acquisition of business associations therefore denies that the shares appearing in his name in Annex A of the expanded Amended Complaint are his
and/or organizations, with the correlative and incidental services where its members acted as incorporators, or assets.[6]
simply, as stockholders. More specifically, in the performance of these services, the members of the law firm
delivered to its client documents which substantiate the client's equity holdings, i.e., stock certificates endorsed
Petitioner Paraja Hayudini, who had separated from ACCRA law firm, filed a separate answer denying the
in blank representing the shares registered in the client's name, and a blank deed of trust or assignment covering
allegations in the complaint implicating him in the alleged ill-gotten wealth.[7]
said shares. In the course of their dealings with their clients, the members of the law firm acquire information
relative to the assets of clients as well as their personal and business circumstances. As members of the ACCRA
Law Firm, petitioners and private respondent Raul Roco admit that they assisted in the organization and Petitioners ACCRA lawyers subsequently filed their "COMMENT AND/OR OPPOSITION" dated October 8, 1991
acquisition of the companies included in Civil Case No. 0033, and in keeping with the office with Counter-Motion that respondent PCGG similarly grant the same treatment to them (exclusion as parties-
practice, ACCRA lawyers acted as nominees-stockholders of the said corporations involved in sequestration defendants) as accorded private respondent Roco.[8] The Counter-Motion for dropping petitioners from the
proceedings.[2] complaint was duly set for hearing on October 18, 1991 in accordance with the requirements of Rule 15 of the
Rules of Court.
LEGAL COUNSELING : 1ST Assigned Cases Page 17 of 24
In its "Comment," respondent PCGG set the following conditions precedent for the exclusion of petitioners, WHEREFORE, the Counter Motion dated October 8, 1991 filed by the ACCRA lawyers and joined in by Atty. Paraja
namely: (a) the disclosure of the identity of its clients; (b) submission of documents substantiating the lawyer- G. Hayudini for the same treatment by the PCGG as accorded to Raul S. Roco is DENIED for lack of merit.[12]
client relationship; and (c) the submission of the deeds of assignments petitioners executed in favor of its clients
covering their respective shareholdings.[9] ACCRA lawyers moved for a reconsideration of the above resolution but the same was denied by the respondent
Sandiganbayan. Hence, the ACCRA lawyers filed the petition for certiorari, docketed as G.R. No. 105938, invoking
Consequently, respondent PCGG presented supposed proof to substantiate compliance by private respondent the following grounds:
Roco of the conditions precedent to warrant the latter's exclusion as party-defendant in PCGG Case No. 33, to
wit: (a) Letter to respondent PCGG of the counsel of respondent Roco dated May 24, 1989 reiterating a previous I
request for reinvestigation by the PCGG in PCGG Case No. 33; (b) Affidavit dated March 8, 1989 executed by
private respondent Roco as Attachment to the letter aforestated in (a); and (c) Letter of the Roco, Bunag, and
The Honorable Sandiganbayan gravely abused its discretion in subjecting petitioners ACCRA lawyers who
Kapunan Law Offices dated September 21, 1988 to the respondent PCGG in behalf of private respondent Roco
undisputably acted as lawyers in serving as nominee-stockholders, to the strict application of the law of agency.
originally requesting the reinvestigation and/or re-examination of the evidence of the PCGG against Roco in
its Complaint in PCGG Case No. 33.[10]
II
It is noteworthy that during said proceedings, private respondent Roco did not refute petitioners' contention
that he did actually not reveal the identity of the client involved in PCGG Case No. 33, nor had he undertaken to The Honorable Sandiganbayan committed grave abuse of discretion in not considering petitioners ACCRA
reveal the identity of the client for whom he acted as nominee-stockholder.[11] lawyers and Mr. Roco as similarly situated and, therefore, deserving of equal treatment.

On March 18, 1992, respondent Sandiganbayan promulgated the Resolution, herein questioned, denying the 1. There is absolutely no evidence that Mr. Roco had revealed, or had undertaken to reveal, the identities of the
exclusion of petitioners in PCGG Case No. 33, for their refusal to comply with the conditions required by client(s) for whom he acted as nominee-stockholder.
respondent PCGG. It held:
2. Even assuming that Mr. Roco had revealed, or had undertaken to reveal, the identities of the client(s), the
x x x. disclosure does not constitute a substantial distinction as would make the classification reasonable under the
equal protection clause.
ACCRA lawyers may take the heroic stance of not revealing the identity of the client for whom they have acted,
i.e. their principal, and that will be their choice. But until they do identify their clients, considerations of whether 3. Respondent Sandiganbayan sanctioned favoritism and undue preference in favor of Mr. Roco in violation of
or not the privilege claimed by the ACCRA lawyers exists cannot even begin to be debated. The ACCRA lawyers the equal protection clause.
cannot excuse themselves from the consequences of their acts until they have begun to establish the basis for
recognizing the privilege; the existence and identity of the client. III

This is what appears to be the cause for which they have been impleaded by the PCGG as defendants herein. The Honorable Sandiganbayan committed grave abuse of discretion in not holding that, under the facts of this
case, the attorney-client privilege prohibits petitioners ACCRA lawyers from revealing the identity of their
5. The PCGG is satisfied that defendant Roco has demonstrated his agency and that Roco has apparently client(s) and the other information requested by the PCGG.
identified his principal, which revelation could show the lack of cause against him. This in turn has allowed the
PCGG to exercise its power both under the rules of Agency and under Section 5 of E.O. No. 14-A in relation to the 1. Under the peculiar facts of this case, the attorney-client privilege includes the identity of the client(s).
Supreme Court's ruling in Republic v. Sandiganbayan (173 SCRA 72).
2. The factual disclosures required by the PCGG are not limited to the identity of petitioners ACCRA lawyers'
The PCGG has apparently offered to the ACCRA lawyers the same conditions availed of by Roco; full disclosure in alleged client(s) but extend to other privileged matters.
exchange for exclusion from these proceedings (par. 7, PCGG's COMMENT dated November 4, 1991). The ACCRA
lawyers have preferred not to make the disclosures required by the PCGG. IV

The ACCRA lawyers cannot, therefore, begrudge the PCGG for keeping them as party defendants. In the same The Honorable Sandiganbayan committed grave abuse of discretion in not requiring that the dropping of party-
vein, they cannot compel the PCGG to be accorded the same treatment accorded to Roco. defendants by the PCGG must be based on reasonable and just grounds and with due consideration to the
constitutional right of petitioners ACCRA lawyers to the equal protection of the law.
Neither can this Court.

LEGAL COUNSELING : 1ST Assigned Cases Page 18 of 24

Petitioner Paraja G. Hayudini, likewise, filed his own motion for reconsideration of the March 18, 1991 resolution We quote Atty. Ongkiko:
which was denied by respondent Sandiganbayan. Thus, he filed a separate petition for certiorari, docketed as
G.R. No. 108113, assailing respondent Sandiganbayan's resolution on essentially the same grounds averred by ATTY. ONGKIKO:
petitioners in G.R. No. 105938.
With the permission of this Hon. Court. I propose to establish through these ACCRA lawyers that, one, their so-
Petitioners contend that the exclusion of respondent Roco as party-defendant in PCGG Case No. 33 grants him a called client is Mr. Eduardo Cojuangco. Second, it was Mr. Eduardo Cojuangco who furnished all the monies to
favorable treatment, on the pretext of his alleged undertaking to divulge the identity of his client, giving him an these subscription payments of these corporations who are now the petitioners in this case. Third, that these
advantage over them who are in the same footing as partners in the ACCRA law firm. Petitioners further argue lawyers executed deeds of trust, some in the name of a particular person, some in blank. Now, these blank deeds
that even granting that such an undertaking has been assumed by private respondent Roco, they are prohibited are important to our claim that some of the shares are actually being held by the nominees for the late President
from revealing the identity of their principal under their sworn mandate and fiduciary duty as lawyers to uphold Marcos. Fourth, they also executed deeds of assignment and some of these assignments have also blank
at all times the confidentiality of information obtained during such lawyer-client relationship. assignees. Again, this is important to our claim that some of the shares are for Mr. Cojuangco and some are for
Mr. Marcos. Fifth, that most of these corporations are really just paper corporations. Why do we say
Respondent PCGG, through its counsel, refutes petitioners' contention, alleging that the revelation of the that? One: There are no really fixed sets of officers, no fixed sets of directors at the time of incorporation and
identity of the client is not within the ambit of the lawyer-client confidentiality privilege, nor are the documents even up to 1986, which is the crucial year. And not only that, they have no permits from the municipal
it required (deeds of assignment) protected, because they are evidence of nominee status. [13] authorities in Makati. Next, actually all their addresses now are care of Villareal Law Office. They really have no
address on records. These are some of the principal things that we would ask of these nominees stockholders, as
In his comment, respondent Roco asseverates that respondent PCGG acted correctly in excluding him as party- they called themselves.[16]
defendant because he "(Roco) has not filed an Answer. PCGG had therefore the right to dismiss Civil Case No.
0033 as to Roco `without an order of court by filing a notice of dismissal,'"[14] and he has undertaken to identify It would seem that petitioners are merely standing in for their clients as defendants in the complaint. Petitioners
his principal.[15] are being prosecuted solely on the basis of activities and services performed in the course of their duties as
lawyers. Quite obviously, petitioners inclusion as co-defendants in the complaint is merely being used as
Petitioners' contentions are impressed with merit. leverage to compel them to name their clients and consequently to enable the PCGG to nail these clients. Such
being the case, respondent PCGG has no valid cause of action as against petitioners and should exclude them
from the Third Amended Complaint.
I

II
It is quite apparent that petitioners were impleaded by the PCGG as co-defendants to force them to disclose the
identity of their clients. Clearly, respondent PCGG is not after petitioners but the bigger fish as they say in street
parlance. This ploy is quite clear from the PCGGs willingness to cut a deal with petitioners -- the names of their The nature of lawyer-client relationship is premised on the Roman Law concepts of locatio conductio
clients in exchange for exclusion from the complaint. The statement of the Sandiganbayan in its questioned operarum (contract of lease of services) where one person lets his services and another hires them without
resolution dated March 18, 1992 is explicit: reference to the object of which the services are to be performed, wherein lawyers' services may be
compensated by honorarium or for hire,[17] and mandato(contract of agency) wherein a friend on whom reliance
could be placed makes a contract in his name, but gives up all that he gained by the contract to the person who
ACCRA lawyers may take the heroic stance of not revealing the identity of the client for whom they have acted,
requested him.[18]But the lawyer-client relationship is more than that of the principal-agent and lessor-lessee.
i.e., their principal, and that will be their choice. But until they do identify their clients, considerations of whether
or not the privilege claimed by the ACCRA lawyers exists cannot even begin to be debated. The ACCRA lawyers
cannot excuse themselves from the consequences of their acts until they have begun to establish the basis for In modern day perception of the lawyer-client relationship, an attorney is more than a mere agent or servant,
recognizing the privilege; the existence and identity of the client. because he possesses special powers of trust and confidence reposed on him by his client. [19] A lawyer is also as
independent as the judge of the court, thus his powers are entirely different from and superior to those of an
ordinary agent.[20] Moreover, an attorney also occupies what may be considered as a "quasi-judicial office" since
This is what appears to be the cause for which they have been impleaded by the PCGG as defendants
he is in fact an officer of the Court[21] and exercises his judgment in the choice of courses of action to be taken
herein. (Underscoring ours)
favorable to his client.

In a closely related case, Civil Case No. 0110 of the Sandiganbayan, Third Division, entitled Primavera Farms,
Thus, in the creation of lawyer-client relationship, there are rules, ethical conduct and duties that breathe life
Inc., et al. vs. Presidential Commission on Good Government respondent PCGG, through counsel Mario Ongkiko,
into it, among those, the fiduciary duty to his client which is of a very delicate, exacting and confidential
manifested at the hearing on December 5, 1991 that the PCGG wanted to establish through the ACCRA that their
character, requiring a very high degree of fidelity and good faith,[22] that is required by reason of necessity and
so called client is Mr. Eduardo Cojuangco; that it was Mr. Eduardo Cojuangco who furnished all the monies to
public interest[23] based on the hypothesis that abstinence from seeking legal advice in a good cause is an evil
those subscription payments in corporations included in Annex A of the Third Amended Complaint; that the
which is fatal to the administration of justice.[24]
ACCRA lawyers executed deeds of trust and deeds of assignment, some in the name of particular persons, some
in blank.
LEGAL COUNSELING : 1ST Assigned Cases Page 19 of 24
It is also the strict sense of fidelity of a lawyer to his client that distinguishes him from any other professional in remedy or defense. But it is steadfastly to be borne in mind that the great trust of the lawyer is to be performed
society. This conception is entrenched and embodies centuries of established and stable tradition.[25] In Stockton within and not without the bounds of the law. The office of attorney does not permit, much less does it demand
v. Ford,[26] the U.S. Supreme Court held: of him for any client, violation of law or any manner of fraud or chicanery. He must obey his own conscience and
not that of his client.
There are few of the business relations of life involving a higher trust and confidence than that of attorney and
client, or generally speaking, one more honorably and faithfully discharged; few more anxiously guarded by the Considerations favoring confidentiality in lawyer-client relationships are many and serve several constitutional
law, or governed by the sterner principles of morality and justice; and it is the duty of the court to administer and policy concerns. In the constitutional sphere, the privilege gives flesh to one of the most sacrosanct rights
them in a corresponding spirit, and to be watchful and industrious, to see that confidence thus reposed shall not available to the accused, the right to counsel. If a client were made to choose between legal representation
be used to the detriment or prejudice of the rights of the party bestowing it.[27] without effective communication and disclosure and legal representation with all his secrets revealed then he
might be compelled, in some instances, to either opt to stay away from the judicial system or to lose the right to
In our jurisdiction, this privilege takes off from the old Code of Civil Procedure enacted by the Philippine counsel. If the price of disclosure is too high, or if it amounts to self incrimination, then the flow of information
Commission on August 7, 1901. Section 383 of the Code specifically forbids counsel, without authority of his would be curtailed thereby rendering the right practically nugatory. The threat this represents against another
client to reveal any communication made by the client to him or his advice given thereon in the course of sacrosanct individual right, the right to be presumed innocent is at once self-evident.
professional employment.[28] Passed on into various provisions of the Rules of Court, the attorney-client
privilege, as currently worded provides: Encouraging full disclosure to a lawyer by one seeking legal services opens the door to a whole spectrum of legal
options which would otherwise be circumscribed by limited information engendered by a fear of disclosure. An
Sec. 24. Disqualification by reason of privileged communication. - The following persons cannot testify as to effective lawyer-client relationship is largely dependent upon the degree of confidence which exists between
matters learned in confidence in the following cases: lawyer and client which in turn requires a situation which encourages a dynamic and fruitful exchange and flow
of information. It necessarily follows that in order to attain effective representation, the lawyer must invoke the
privilege not as a matter of option but as a matter of duty and professional responsibility.
xxx

The question now arises whether or not this duty may be asserted in refusing to disclose the name of petitioners'
An attorney cannot, without the consent of his client, be examined as to any communication made by the client
client(s) in the case at bar. Under the facts and circumstances obtaining in the instant case, the answer must be
to him, or his advice given thereon in the course of, or with a view to, professional employment, can an
in the affirmative.
attorneys secretary, stenographer, or clerk be examined, without the consent of the client and his employer,
concerning any fact the knowledge of which has been acquired in such capacity.[29]
As a matter of public policy, a clients identity should not be shrouded in mystery.[30] Under this premise, the
general rule in our jurisdiction as well as in the United States is that a lawyer may not invoke the privilege and
Further, Rule 138 of the Rules of Court states:
refuse to divulge the name or identity of his client.[31]

Sec. 20. It is the duty of an attorney:

The reasons advanced for the general rule are well established.

(e) to maintain inviolate the confidence, and at every peril to himself, to preserve the secrets of his client, and to
First, the court has a right to know that the client whose privileged information is sought to be protected is flesh
accept no compensation in connection with his clients business except from him or with his knowledge and
and blood.
approval.

Second, the privilege begins to exist only after the attorney-client relationship has been established. The
This duty is explicitly mandated in Canon 17 of the Code of Professional Responsibility which provides that:
attorney-client privilege does not attach until there is a client.

Canon 17. A lawyer owes fidelity to the cause of his client and he shall be mindful of the trust and confidence
Third, the privilege generally pertains to the subject matter of the relationship.
reposed in him.

Finally, due process considerations require that the opposing party should, as a general rule, know his
Canon 15 of the Canons of Professional Ethics also demands a lawyer's fidelity to client:
adversary. A party suing or sued is entitled to know who his opponent is. [32] He cannot be obliged to grope in the
dark against unknown forces.[33]
The lawyer owes "entire devotion to the interest of the client, warm zeal in the maintenance and defense of his
rights and the exertion of his utmost learning and ability," to the end that nothing be taken or be withheld from
Notwithstanding these considerations, the general rule is however qualified by some important exceptions.
him, save by the rules of law, legally applied. No fear of judicial disfavor or public popularity should restrain him
from the full discharge of his duty. In the judicial forum the client is entitled to the benefit of any and every
remedy and defense that is authorized by the law of the land, and he may expect his lawyer to assert every such
LEGAL COUNSELING : 1ST Assigned Cases Page 20 of 24
1) Client identity is privileged where a strong probability exists that revealing the clients name would implicate somehow revealed that the lawyer came to know the name of the owner of the second cab when a man, a client
that client in the very activity for which he sought the lawyers advice. of the insurance company, prior to the institution of legal action, came to him and reported that he was involved
in a car accident. It was apparent under the circumstances that the man was the owner of the second cab. The
In Ex-Parte Enzor,[34] a state supreme court reversed a lower court order requiring a lawyer to divulge the name state supreme court held that the reports were clearly made to the lawyer in his professional capacity. The court
of her client on the ground that the subject matter of the relationship was so closely related to the issue of the said:
clients identity that the privilege actually attached to both. In Enzor, the unidentified client, an election official,
informed his attorney in confidence that he had been offered a bribe to violate election laws or that he had That his employment came about through the fact that the insurance company had hired him to defend its
accepted a bribe to that end. In her testimony, the attorney revealed that she had advised her client to count the policyholders seems immaterial. The attorney in such cases is clearly the attorney for the policyholder when the
votes correctly, but averred that she could not remember whether her client had been, in fact, bribed. The policyholder goes to him to report an occurrence contemplating that it would be used in an action or claim
lawyer was cited for contempt for her refusal to reveal his clients identity before a grand jury. Reversing the against him.[38]
lower courts contempt orders, the state supreme court held that under the circumstances of the case, and under
the exceptions described above, even the name of the client was privileged. x x x xxx xxx.

U.S. v. Hodge and Zweig,[35] involved the same exception, i.e. that client identity is privileged in those instances All communications made by a client to his counsel, for the purpose of professional advice or assistance, are
where a strong probability exists that the disclosure of the client's identity would implicate the client in the very privileged, whether they relate to a suit pending or contemplated, or to any other matter proper for such advice
criminal activity for which the lawyers legal advice was obtained. or aid; x x x And whenever the communication made, relates to a matter so connected with the employment as
attorney or counsel as to afford presumption that it was the ground of the address by the client, then it is
The Hodge case involved federal grand jury proceedings inquiring into the activities of the Sandino Gang, a gang privileged from disclosure. xxx.
involved in the illegal importation of drugs in the United States. The respondents, law partners, represented key
witnesses and suspects including the leader of the gang, Joe Sandino. It appears... that the name and address of the owner of the second cab came to the attorney in this case as a
confidential communication. His client is not seeking to use the courts, and his address cannot be disclosed on
In connection with a tax investigation in November of 1973, the IRS issued summons to Hodge and Zweig, that theory, nor is the present action pending against him as service of the summons on him has not been
requiring them to produce documents and information regarding payment received by Sandino on behalf of any effected. The objections on which the court reserved decision are sustained. [39]
other person, and vice versa. The lawyers refused to divulge the names. The Ninth Circuit of the United States
Court of Appeals, upholding non-disclosure under the facts and circumstances of the case, held: In the case of Matter of Shawmut Mining Company,[40] the lawyer involved was required by a lower court to
disclose whether he represented certain clients in a certain transaction. The purpose of the courts request was
A clients identity and the nature of that clients fee arrangements may be privileged where the person invoking to determine whether the unnamed persons as interested parties were connected with the purchase of
the privilege can show that a strong probability exists that disclosure of such information would implicate that properties involved in the action. The lawyer refused and brought the question to the State Supreme
client in the very criminal activity for which legal advice was sought Baird v. Koerner, 279 F.2d at 680. While in Court. Upholding the lawyers refusal to divulge the names of his clients the court held:
Baird Owe enunciated this rule as a matter of California law, the rule also reflects federal law. Appellants
contend that the Baird exception applies to this case. If it can compel the witness to state, as directed by the order appealed from, that he represented certain persons
in the purchase or sale of these mines, it has made progress in establishing by such evidence their version of the
The Baird exception is entirely consonant with the principal policy behind the attorney-client privilege. In order litigation. As already suggested, such testimony by the witness would compel him to disclose not only that he
to promote freedom of consultation of legal advisors by clients, the apprehension of compelled disclosure from was attorney for certain people, but that, as the result of communications made to him in the course of such
the legal advisors must be removed; hence, the law must prohibit such disclosure except on the clients employment as such attorney, he knew that they were interested in certain transactions. We feel sure that
consent. 8 J. Wigmore, supra sec. 2291, at 545. In furtherance of this policy, the clients identity and the nature of under such conditions no case has ever gone to the length of compelling an attorney, at the instance of a hostile
his fee arrangements are, in exceptional cases, protected as confidential communications.[36] litigant, to disclose not only his retainer, but the nature of the transactions to which it related, when such
information could be made the basis of a suit against his client.[41]
2) Where disclosure would open the client to civil liability, his identity is privileged. For instance, the peculiar
facts and circumstances of Neugass v. Terminal Cab Corporation,[37] prompted the New York Supreme Court 3) Where the governments lawyers have no case against an attorneys client unless, by revealing the clients
to allow a lawyers claim to the effect that he could not reveal the name of his client because this would expose name, the said name would furnish the only link that would form the chain of testimony necessary to convict an
the latter to civil litigation. individual of a crime, the clients name is privileged.

In the said case, Neugass, the plaintiff, suffered injury when the taxicab she was riding, owned by respondent In Baird vs Korner,[42] a lawyer was consulted by the accountants and the lawyer of certain undisclosed taxpayers
corporation, collided with a second taxicab, whose owner was unknown. Plaintiff brought action both against regarding steps to be taken to place the undisclosed taxpayers in a favorable position in case criminal charges
defendant corporation and the owner of the second cab, identified in the information only as John Doe. It turned were brought against them by the U.S. Internal Revenue Service (IRS).
out that when the attorney of defendant corporation appeared on preliminary examination, the fact was
LEGAL COUNSELING : 1ST Assigned Cases Page 21 of 24
It appeared that the taxpayers returns of previous years were probably incorrect and the taxes understated. The The link between the alleged criminal offense and the legal advice or legal service sought was duly established in
clients themselves were unsure about whether or not they violated tax laws and sought advice from Baird on the the case at bar, by no less than the PCGG itself. The key lies in the three specific conditions laid down by the
hypothetical possibility that they had. No investigation was then being undertaken by the IRS of the PCGG which constitutes petitioners ticket to non-prosecution should they accede thereto:
taxpayers. Subsequently, the attorney of the taxpayers delivered to Baird the sum of $12,706.85, which had
been previously assessed as the tax due, and another amount of money representing his fee for the advice (a) the disclosure of the identity of its clients;
given. Baird then sent a check for $12,706.85 to the IRS in Baltimore, Maryland, with a note explaining the
payment, but without naming his clients. The IRS demanded that Baird identify the lawyers, accountants, and
(b) submission of documents substantiating the lawyer-client relationship; and
other clients involved. Baird refused on the ground that he did not know their names, and declined to name the
attorney and accountants because this constituted privileged communication. A petition was filed for the
enforcement of the IRS summons. For Bairds repeated refusal to name his clients he was found guilty of civil (c) the submission of the deeds of assignment petitioners executed in favor of their clients covering their
contempt. The Ninth Circuit Court of Appeals held that, a lawyer could not be forced to reveal the names of respective shareholdings.
clients who employed him to pay sums of money to the government voluntarily in settlement of undetermined
income taxes, unsued on, and with no government audit or investigation into that clients income tax liability From these conditions, particularly the third, we can readily deduce that the clients indeed consulted the
pending. The court emphasized the exception that a clients name is privileged when so much has been revealed petitioners, in their capacity as lawyers, regarding the financial and corporate structure, framework and set-up of
concerning the legal services rendered that the disclosure of the clients identity exposes him to possible the corporations in question. In turn, petitioners gave their professional advice in the form of, among others, the
investigation and sanction by government agencies. The Court held: aforementioned deeds of assignment covering their clients shareholdings.

The facts of the instant case bring it squarely within that exception to the general rule. Here money was received There is no question that the preparation of the aforestated documents was part and parcel of petitioners legal
by the government, paid by persons who thereby admitted they had not paid a sufficient amount in income service to their clients. More important, it constituted an integral part of their duties as lawyers. Petitioners,
taxes some one or more years in the past. The names of the clients are useful to the government for but one therefore, have a legitimate fear that identifying their clients would implicate them in the very activity for which
purpose - to ascertain which taxpayers think they were delinquent, so that it may check the records for that one legal advice had been sought, i.e., the alleged accumulation of ill-gotten wealth in the aforementioned
year or several years. The voluntary nature of the payment indicates a belief by the taxpayers that more taxes or corporations.
interest or penalties are due than the sum previously paid, if any.It indicates a feeling of guilt for nonpayment of
taxes, though whether it is criminal guilt is undisclosed. But it may well be the link that could form the chain of Furthermore, under the third main exception, revelation of the client's name would obviously provide the
testimony necessary to convict an individual of a federal crime. Certainly the payment and the feeling of guilt are necessary link for the prosecution to build its case, where none otherwise exists. It is the link, in the words
the reasons the attorney here involved was employed - to advise his clients what, under the circumstances, of Baird, that would inevitably form the chain of testimony necessary to convict the (client) of a... crime."[47]
should be done.[43]

An important distinction must be made between a case where a client takes on the services of an attorney for
Apart from these principal exceptions, there exist other situations which could qualify as exceptions to the illicit purposes, seeking advice about how to go around the law for the purpose of committing illegal activities
general rule. and a case where a client thinks he might have previously committed something illegal and consults his attorney
about it. The first case clearly does not fall within the privilege because the same cannot be invoked for purposes
For example, the content of any client communication to a lawyer lies within the privilege if it is relevant to the illegal. The second case falls within the exception because whether or not the act for which the advice turns out
subject matter of the legal problem on which the client seeks legal assistance. [44] Moreover, where the nature of to be illegal, his name cannot be used or disclosed if the disclosure leads to evidence, not yet in the hands of the
the attorney-client relationship has been previously disclosed and it is the identity which is intended to be prosecution, which might lead to possible action against him.
confidential, the identity of the client has been held to be privileged, since such revelation would otherwise
result in disclosure of the entire transaction.[45] These cases may be readily distinguished, because the privilege cannot be invoked or used as a shield for an
illegal act, as in the first example; while the prosecution may not have a case against the client in the second
Summarizing these exceptions, information relating to the identity of a client may fall within the ambit of the example and cannot use the attorney client relationship to build up a case against the latter. The reason for the
privilege when the clients name itself has an independent significance, such that disclosure would then reveal first rule is that it is not within the professional character of a lawyer to give advice on the commission of a
client confidences.[46] crime.[48] The reason for the second has been stated in the cases above discussed and are founded on the same
policy grounds for which the attorney-client privilege, in general, exists.
The circumstances involving the engagement of lawyers in the case at bench, therefore, clearly reveal that the
instant case falls under at least two exceptions to the general rule. First, disclosure of the alleged client's name In Matter of Shawmut Mining Co., supra, the appellate court therein stated that "under such conditions no case
would lead to establish said client's connection with the very fact in issue of the case, which is privileged has ever yet gone to the length of compelling an attorney, at the instance of a hostile litigant, to disclose not only
information, because the privilege, as stated earlier, protects the subject matter or the substance (without which his retainer, but the nature of the transactions to which it related, when such information could be made the
there would be no attorney-client relationship). basis of a suit against his client.[49]"Communications made to an attorney in the course of any personal
employment, relating to the subject thereof, and which may be supposed to be drawn out in consequence of
the relation in which the parties stand to each other, are under the seal of confidence and entitled to protection
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as privileged communications."[50] Where the communicated information, which clearly falls within the privilege, honesty alone, but the punctilio of an honor the most sensitive, is then the standard of behavior," the US Court
would suggest possible criminal activity but there would be not much in the information known to the found that the lawyer involved was fired for cause, thus deserved no attorney's fees at all.
prosecution which would sustain a charge except that revealing the name of the client would open up other
privileged information which would substantiate the prosecutions suspicions, then the clients identity is so The utmost zeal given by Courts to the protection of the lawyer-client confidentiality privilege and lawyer's
inextricably linked to the subject matter itself that it falls within the protection. The Baird exception, applicable loyalty to his client is evident in the duration of the protection, which exists not only during the relationship, but
to the instant case, is consonant with the principal policy behind the privilege, i.e., that for the purpose of extends even after the termination of the relationship.[57]
promoting freedom of consultation of legal advisors by clients, apprehension of compelled disclosure from
attorneys must be eliminated. This exception has likewise been sustained in In re Grand Jury
Such are the unrelenting duties required of lawyers vis-a-vis their clients because the law, which the lawyers are
Proceedings[51] and Tillotson v. Boughner.[52] What these cases unanimously seek to avoid is the exploitation of
sworn to uphold, in the words of Oliver Wendell Holmes,[58] "xxx is an exacting goddess, demanding of her
the general rule in what may amount to a fishing expedition by the prosecution.
votaries in intellectual and moral discipline." The Court, no less, is not prepared to accept respondents position
without denigrating the noble profession that is lawyering, so extolled by Justice Holmes in this wise:
There are, after all, alternative sources of information available to the prosecutor which do not depend on
utilizing a defendant's counsel as a convenient and readily available source of information in the building of a
Every calling is great when greatly pursued. But what other gives such scope to realize the spontaneous energy
case against the latter. Compelling disclosure of the client's name in circumstances such as the one which exists
of one's soul? In what other does one plunge so deep in the stream of life - so share its passions its battles, its
in the case at bench amounts to sanctioning fishing expeditions by lazy prosecutors and litigants which we
despair, its triumphs, both as witness and actor? x x x But that is not all. What a subject is this in which we are
cannot and will not countenance. When the nature of the transaction would be revealed by disclosure of an
united - this abstraction called the Law, wherein as in a magic mirror, we see reflected, not only in our lives, but
attorney's retainer, such retainer is obviously protected by the privilege.[53] It follows that petitioner attorneys in
the lives of all men that have been. When I think on this majestic theme my eyes dazzle. If we are to speak of the
the instant case owe their client(s) a duty and an obligation not to disclose the latter's identity which in turn
law as our mistress, we who are here know that she is a mistress only to be won with sustained and lonely
requires them to invoke the privilege.
passion - only to be won by straining all the faculties by which man is likened to God.

In fine, the crux of petitioners' objections ultimately hinges on their expectation that if the prosecution has a
We have no choice but to uphold petitioners' right not to reveal the identity of their clients under pain of the
case against their clients, the latter's case should be built upon evidence painstakingly gathered by them from
breach of fiduciary duty owing to their clients, because the facts of the instant case clearly fall within recognized
their own sources and not from compelled testimony requiring them to reveal the name of their clients,
exceptions to the rule that the clients name is not privileged information.
information which unavoidably reveals much about the nature of the transaction which may or may not be
illegal. The logical nexus between name and nature of transaction is so intimate in this case that it would be
difficult to simply dissociate one from the other. In this sense, the name is as much "communication" as If we were to sustain respondent PCGG that the lawyer-client confidential privilege under the circumstances
information revealed directly about the transaction in question itself, a communication which is clearly and obtaining here does not cover the identity of the client, then it would expose the lawyers themselves to possible
distinctly privileged. A lawyer cannot reveal such communication without exposing himself to charges of litigation by their clients in view of the strict fiduciary responsibility imposed on them in the exercise of their
violating a principle which forms the bulwark of the entire attorney-client relationship. duties.

The uberrimei fidei relationship between a lawyer and his client therefore imposes a strict liability for negligence The complaint in Civil Case No. 0033 alleged that the defendants therein, including herein petitioners and
on the former. The ethical duties owing to the client, including confidentiality, loyalty, competence, diligence as Eduardo Cojuangco, Jr. conspired with each other in setting up through the use of coconut levy funds the
well as the responsibility to keep clients informed and protect their rights to make decisions have been zealously financial and corporate framework and structures that led to the establishment of UCPB, UNICOM and others
sustained. In Milbank, Tweed, Hadley and McCloy v. Boon,[54] the US Second District Court rejected the plea of and that through insidious means and machinations, ACCRA, using its wholly-owned investment arm, ACCRA
the petitioner law firm that it breached its fiduciary duty to its client by helping the latter's former agent in Investments Corporation, became the holder of approximately fifteen million shares representing roughly 3.3%
closing a deal for the agent's benefit only after its client hesitated in proceeding with the transaction, thus of the total capital stock of UCPB as of 31 March 1987. The PCGG wanted to establish through the ACCRA
causing no harm to its client. The Court instead ruled that breaches of a fiduciary relationship in any context lawyers that Mr. Cojuangco is their client and it was Cojuangco who furnished all the monies to the subscription
comprise a special breed of cases that often loosen normally stringent requirements of causation and damages, payment; hence, petitioners acted as dummies, nominees and/or agents by allowing themselves, among others,
and found in favor of the client. to be used as instrument in accumulating ill-gotten wealth through government concessions, etc., which acts
constitute gross abuse of official position and authority, flagrant breach of public trust, unjust enrichment,
violation of the Constitution and laws of the Republic of the Philippines.
To the same effect is the ruling in Searcy, Denney, Scarola, Barnhart, and Shipley P.A. v. Scheller [55] requiring
strict obligation of lawyers vis-a-vis clients. In this case, a contingent fee lawyer was fired shortly before the end
of completion of his work, and sought payment quantum meruit of work done. The court, however, found that By compelling petitioners, not only to reveal the identity of their clients, but worse, to submit to the PCGG
the lawyer was fired for cause after he sought to pressure his client into signing a new fee agreement while documents substantiating the client-lawyer relationship, as well as deeds of assignment petitioners executed in
settlement negotiations were at a critical stage. While the client found a new lawyer during the interregnum, favor of its clients covering their respective shareholdings, the PCGG would exact from petitioners a link that
events forced the client to settle for less than what was originally offered. Reiterating the principle of fiduciary would inevitably form the chain of testimony necessary to convict the (client) of a crime.
duty of lawyers to clients in Meinhard v. Salmon[56] famously attributed to Justice Benjamin Cardozo that "Not
III
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In response to petitioners' last assignment of error, respondents allege that the private respondent was dropped We find that the condition precedent required by the respondent PCGG of the petitioners for their exclusion as
as party defendant not only because of his admission that he acted merely as a nominee but also because of his parties-defendants in PCGG Case No. 33 violates the lawyer-client confidentiality privilege. The condition also
undertaking to testify to such facts and circumstances "as the interest of truth may require, which includes... the constitutes a transgression by respondents Sandiganbayan and PCGG of the equal protection clause of the
identity of the principal."[59] Constitution.[64] It is grossly unfair to exempt one similarly situated litigant from prosecution without allowing
the same exemption to the others. Moreover, the PCGGs demand not only touches upon the question of the
First, as to the bare statement that private respondent merely acted as a lawyer and nominee, a statement made identity of their clients but also on documents related to the suspected transactions, not only in violation of the
in his out-of-court settlement with the PCGG, it is sufficient to state that petitioners have likewise made the attorney-client privilege but also of the constitutional right against self-incrimination.Whichever way one looks
same claim not merely out-of- court but also in their Answer to plaintiff's Expanded Amended Complaint, signed at it, this is a fishing expedition, a free ride at the expense of such rights.
by counsel, claiming that their acts were made in furtherance of "legitimate lawyering. [60] Being "similarly
situated" in this regard, public respondents must show that there exist other conditions and circumstances which An argument is advanced that the invocation by petitioners of the privilege of attorney-client confidentiality at
would warrant their treating the private respondent differently from petitioners in the case at bench in order to this stage of the proceedings is premature and that they should wait until they are called to testify and examine
evade a violation of the equal protection clause of the Constitution. as witnesses as to matters learned in confidence before they can raise their objections. But petitioners are not
mere witnesses. They are co-principals in the case for recovery of alleged ill-gotten wealth. They have made their
To this end, public respondents contend that the primary consideration behind their decision to sustain the position clear from the very beginning that they are not willing to testify and they cannot be compelled to testify
PCGG's dropping of private respondent as a defendant was his promise to disclose the identities of the clients in in view of their constitutional right against self-incrimination and of their fundamental legal right to maintain
question. However, respondents failed to show - and absolutely nothing exists in the records of the case at inviolate the privilege of attorney-client confidentiality.
bar - that private respondent actually revealed the identity of his client(s) to the PCGG. Since the undertaking
happens to be the leitmotif of the entire arrangement between Mr. Roco and the PCGG, an undertaking which is It is clear then that the case against petitioners should never be allowed to take its full course in the
so material as to have justified PCGG's special treatment exempting the private respondent from prosecution, Sandiganbayan. Petitioners should not be made to suffer the effects of further litigation when it is obvious that
respondent Sandiganbayan should have required proof of the undertaking more substantial than a "bare their inclusion in the complaint arose from a privileged attorney-client relationship and as a means of coercing
assertion" that private respondent did indeed comply with the undertaking. Instead, as manifested by the PCGG, them to disclose the identities of their clients.To allow the case to continue with respect to them when this Court
only three documents were submitted for the purpose, two of which were mere requests for re-investigation could nip the problem in the bud at this early opportunity would be to sanction an unjust situation which we
and one simply disclosed certain clients which petitioners (ACCRA lawyers) were themselves willing to should not here countenance. The case hangs as a real and palpable threat, a proverbial Sword of Damocles over
reveal. These were clients to whom both petitioners and private respondent rendered legal services while all of petitioners' heads. It should not be allowed to continue a day longer.
them were partners at ACCRA, and were not the clients which the PCGG wanted disclosed for the alleged
questioned transactions.[61] While we are aware of respondent PCGGs legal mandate to recover ill-gotten wealth, we will not sanction acts
which violate the equal protection guarantee and the right against self-incrimination and subvert the lawyer-
To justify the dropping of the private respondent from the case or the filing of the suit in the respondent court client confidentiality privilege.
without him, therefore, the PCGG should conclusively show that Mr. Roco was treated as a species apart from
the rest of the ACCRA lawyers on the basis of a classification which made substantial distinctions based on real WHEREFORE, IN VIEW OF THE FOREGOING, the Resolutions of respondent Sandiganbayan (First Division)
differences. No such substantial distinctions exist from the records of the case at bench, in violation of the equal promulgated on March 18, 1992 and May 21, 1992 are hereby ANNULLED and SET ASIDE. Respondent
protection clause. Sandiganbayan is further ordered to exclude petitioners Teodoro D. Regala, Edgardo J. Angara, Avelino V. Cruz,
Jose C. Concepcion, *Rogelio A. Vinluan, Victor P. Lazatin, Eduardo U. Escueta and Paraja G. Hayuduni as parties-
The equal protection clause is a guarantee which provides a wall of protection against uneven application of defendants in SB Civil Case No. 0033 entitled "Republic of the Philippines v. Eduardo Cojuangco, Jr., et al.".
statutes and regulations. In the broader sense, the guarantee operates against uneven application of legal norms
so that all persons under similar circumstances would be accorded the same treatment. [62] Those who fall within SO ORDERED.
a particular class ought to be treated alike not only as to privileges granted but also as to the liabilities imposed.

x x x. What is required under this constitutional guarantee is the uniform operation of legal norms so that all
persons under similar circumstances would be accorded the same treatment both in the privileges conferred and
the liabilities imposed. As was noted in a recent decision: Favoritism and undue preference cannot be
allowed. For the principle is that equal protection and security shall be given to every person under
circumstances, which if not identical are analogous. If law be looked upon in terms of burden or charges, those
that fall within a class should be treated in the same fashion, whatever restrictions cast on some in the group
equally binding the rest.[63]

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