This Supreme Court decision clarifies that a lawyer employed in a government institution cannot engage in private practice if it creates a conflict of interest with their public duties. Atty. Nicanor C. Alvarez, working at the National Center for Mental Health, was found to have violated this principle by representing a client in a case against the Ombudsman, a government body. The Court suspended Atty. Alvarez from the practice of law for one year, emphasizing that public service demands undivided loyalty and prohibits actions that undermine public trust. This ruling reinforces the ethical responsibilities of government lawyers and ensures the integrity of public service.

Influence Peddling and Unauthorized Practice: The Case of Atty. Alvarez

The case revolves around Teresita P. Fajardo, a municipal treasurer facing criminal and administrative charges before the Office of the Ombudsman. She hired Atty. Nicanor C. Alvarez, a lawyer working at the National Center for Mental Health (NCMH), to represent her. Teresita alleged that Atty. Alvarez solicited a large sum of money, promising to use his connections within the Ombudsman to influence the outcome of her case. Atty. Alvarez, on the other hand, claimed that he was authorized to engage in private practice and that the fees charged were reasonable for the services rendered.

The central legal question is twofold: First, whether Atty. Alvarez, as a government employee, was authorized to engage in private practice given the potential conflict of interest. Second, whether his actions constituted unethical behavior, specifically influence peddling, and a violation of the Lawyer’s Oath and the Code of Professional Responsibility. This decision highlights the delicate balance between a lawyer’s right to practice their profession and their duty to uphold public trust and avoid conflicts of interest when serving in government.

The Supreme Court delved into the specific facts of the case, considering the conflicting accounts of Teresita and Atty. Alvarez. The Investigating Commissioner of the Integrated Bar of the Philippines (IBP) found Atty. Alvarez guilty of violating the Code of Professional Responsibility, recommending a one-year suspension and the return of P700,000.00 to Teresita. The IBP Board of Governors adopted these findings. The Supreme Court agreed with the IBP’s assessment, emphasizing the unauthorized practice of law and the egregious act of influence peddling.

Atty. Alvarez argued that he had the authority to engage in private practice, presenting a letter from the NCMH Chief. However, the Court emphasized that this authority was conditional, requiring that his private practice not conflict with the interests of the NCMH or the Philippine government. The Court cited Cayetano v. Monsod, defining the practice of law broadly to include any activity, in or out of court, requiring the application of legal knowledge and skill. Preparing pleadings and giving legal advice clearly fall under this definition.

The practice of law is not limited to the conduct of cases in court. A person is also considered to be in the practice of law when he:
“x x x for valuable consideration engages in the business of advising person, 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 their clients under the law. Otherwise stated, one who, in a representative capacity, engages in the business of advising clients as to their rights under the law, or while so engaged performs any act or acts either in court or outside of court for that purpose, is engaged in the practice of law.”

The Court underscored that even with authorization, government employees are prohibited from engaging in private practice if it conflicts with their official functions, referencing Section 7(b)(2) of Republic Act No. 6713 and Memorandum Circular No. 17. By representing Teresita in a case against the Ombudsman, Atty. Alvarez placed himself in a clear conflict of interest. The Ombudsman, as an agency of the government, is responsible for prosecuting erring public officials.

The Supreme Court cited Javellana v. Department of Interior and Local Government, highlighting that complaints against public officers are necessarily impressed with public interest, and representing interests adverse to the government constitutes a violation of ethical standards. The Court held that Atty. Alvarez’s actions were a direct contradiction of his duty to serve the government and uphold public trust. This principle is enshrined in the Constitution, which states that “[p]ublic office is a public trust.”

Beyond the unauthorized practice of law, the Court found Atty. Alvarez guilty of influence peddling. Teresita’s text messages revealed that Atty. Alvarez communicated with individuals connected to the Ombudsman, implying that he could influence the outcome of her case. While Atty. Alvarez denied these allegations, the Court found the evidence sufficient to establish his guilt. This behavior violates the Lawyer’s Oath and the Code of Professional Responsibility, which mandates integrity and prohibits any conduct that tends to influence a court or give the appearance of influence.

Canon 1, Rules 1.01 and 1.02 of the Code of Professional Responsibility explicitly prohibit lawyers from engaging in unlawful, dishonest, immoral, or deceitful conduct. Canon 7 requires lawyers to uphold the integrity and dignity of the legal profession, and Canon 13 mandates reliance on the merits of the case, refraining from any impropriety that tends to influence the court.

CANON 1 – A lawyer shall uphold the constitution, obey the laws of the land and promote respect for law and for legal processes.

RULE 1.01 A lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct.

RULE 1.02 A lawyer shall not counsel or abet activities aimed at defiance of the law or at lessening confidence in the legal system[.]

The Supreme Court quoted Jimenez v. Verano, Jr., stressing that lawyers must avoid any act that tends to influence the outcome of a case, lest the public’s faith in the judicial process be diluted. The Court also referenced Bueno v. Rañeses, where a lawyer was disbarred for soliciting bribe money from a client, highlighting the gravity of such ethical violations. In this case, the influence peddling, coupled with the unauthorized practice of law, warranted the penalty of suspension from the practice of law.

In conclusion, the Supreme Court found Atty. Nicanor C. Alvarez guilty of violating the Code of Conduct and Ethical Standards for Public Officials and Employees, the Lawyer’s Oath, and the Code of Professional Responsibility. The Court SUSPENDED him from the practice of law for one (1) year and ORDERED him to return the amount of P500,000.00 with legal interest to Teresita P. Fajardo, representing the amount intended for influence peddling.

FAQs

What was the key issue in this case?	The key issues were whether a government lawyer’s private practice created a conflict of interest and whether the lawyer engaged in influence peddling, violating ethical standards.
Can government lawyers engage in private practice?	Yes, but only if authorized by their department head and provided that such practice does not conflict with their official functions or the interests of the government.
What is considered a conflict of interest for a government lawyer?	A conflict of interest arises when the lawyer’s private practice involves representing clients against the government or its agencies, undermining their duty of loyalty and public trust.
What is influence peddling in the context of legal ethics?	Influence peddling involves implying or stating that one can influence the outcome of a case through personal connections or relationships, rather than on the merits of the case.
What are the ethical duties of a lawyer under the Code of Professional Responsibility?	Lawyers must uphold the integrity of the legal profession, avoid unlawful or dishonest conduct, and refrain from any impropriety that tends to influence a court or give the appearance of influence.
What was the penalty imposed on Atty. Alvarez in this case?	Atty. Alvarez was suspended from the practice of law for one year and ordered to return P500,000.00 to the complainant, representing the amount solicited for influence peddling.
What is the significance of the Lawyer’s Oath in this case?	The Lawyer’s Oath requires lawyers to conduct themselves with fidelity to the courts and clients, and to avoid any falsehood or unlawful suit, all of which Atty. Alvarez was found to have violated.
How does this case affect the public’s perception of the legal profession?	This case reinforces the importance of ethical conduct among lawyers and the need to maintain public trust in the legal system by avoiding conflicts of interest and influence peddling.

This case serves as a stark reminder of the ethical responsibilities that accompany the privilege of practicing law, particularly for those serving in government. The Supreme Court’s decision underscores the importance of upholding public trust and avoiding any conduct that could compromise the integrity of the legal profession. Lawyers must always prioritize their duty to the administration of justice over personal gain or influence.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: TERESITA P. FAJARDO, COMPLAINANT, VS. ATTY. NICANOR C. ALVAREZ, RESPONDENT, A.C. No. 9018, April 20, 2016