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JD 1-2
Case Digest on 2009 Legal Ethics Case
FACTS: Rebecca J. Palm is the president of Comtech, which hired Atty. Felipe
Iledan, Jr. as its retained counsel. She filed a case of disbarment against Atty.
Iledan for breach of the attorney-client privilege and conflict of interests.
The basis of the claim of breach of the lawyer-client relationship occurred
during a meeting. Atty. Iledan claimed that the stockholders meeting cannot
take place via teleconferencing because they have yet to amend the by-laws of
the corporation to allow such mode of communications. Palm claims this was a
breach of the attorney-client privilege of confidentiality.
The basis of the conflict of interests stemmed from Atty. Iledan being the
counsel of Soledad who was filed with an Estafa case by Comtech.
ISSUE: Whether or not (a) respondent violated the Confidentiality of LawyerClient Relationship; and (b) respondent is guilty of representing an interest in
conflict with that of a former client
RULING: No. Although the information about the necessity to amend the
corporate by-laws may have been given to respondent, it could not be
Soledad is an Estafa case filed by Comtech against its former officer. There was
nothing in the records that would show that respondent used against Comtech
any confidential information acquired while he was still Comtechs retained
counsel. Further, respondent made the representation after the termination of
his retainer agreement with Comtech. A lawyers immutable duty to a former
client does not cover transactions that occurred beyond the lawyers
employment with the client. The intent of the law is to impose upon the lawyer
the duty to protect the clients interests only on matters that he previously
handled for the former client and not for matters that arose after the lawyerclient relationship has terminated.
The Court DISMISSED the complaint against Atty. Felipe Ileda, Jr. for
lack of merit.