Tan Tek Beng Vs David

SECOND DIVISION
[A.C. No. 1261. December 29, 1983.]

TAN TEK BENG, Complainant, v. TIMOTEO A. DAVID, Respondent.
BasilioLanoria for complainant.
Timoteo A. David for and in his own behalf.
SYLLABUS
1. LEGAL ETHICS; MEMBER OF THE BAR; SOLICITING CASES AT LAW FOR THE PURPOSE OF GAIN; CONSTITUTES MALPRACTICE. Where
in the agreement lawyer David not only agreed to give one-half of his professional fees to an intermediary or commission agent but he also bound
himself not to deal directly with the clients, the Court held that the said agreement is void because it was tantamount to malpractice which is "the practice
of soliciting cases at law for the purpose of gain, either personally or through paid agents or brokers" (Sec. 27, Rule 138, Rules of Court). Malpractice
ordinarily refers to any malfeasance or dereliction of duty committed by a lawyer. Section 27 gives a special and technical meaning to the term
"malpractice" (Act No. 2828, amending Sec. 21 of Act No. 190). That meaning is in consonance with the elementary notion that the practice of law is a
profession, not a business. "The lawyer may not seek or obtain employment by himself or through others for to do so would be unprofessional" (2 R.C.L.
1097 cited in In re Tagorda, 33 Phil. 37, 42).
2. ID.; ID.; ID.; UNPROFESSIONAL CONDUCT; CAUSE FOR CENSURE. The commercialization of law practice is condemned in certain canons of
professional ethics adopted by the American Bar Association. "Unprofessional conduct in an attorney is that which violates the rules or ethical code of
his profession or which is unbecoming a member of that profession" (Note 14, 7 C.J.S. 743). We censure lawyer David for having entered and acted
upon such void and unethical agreement. We discountenance his conduct, not because of the complaint of Tan TekBeng (who did not know legal ethics)
but because David should have known better.
D E C I S I O N AQUINO, J.:
The issue in this case is whether disciplinary action should be taken against lawyer Timoteo A. David (admitted to the bar in 1945) for not giving Tan
TekBeng, a nonlawyer (alleged missionary of the Seventh Day Adventists), one-half of the attorneys fees received by David from the clients supplied by
Tan TekBeng. Their agreement reads:jgc:chanrobles.com.ph
"December 3, 1970
"Mr. Tan TekBeng
"Manila
"Dear Mr. Tan:chanrob1es virtual 1aw library
In compliance with your request, I am now putting into writing our agreement which must be followed in connection with the accounts that you will entrust
to me for collection. Our terms and conditions shall be as follows:jgc:chanrobles.com.ph
"1. On all commission or attorneys fees that we shall receive from our clients by virtue of the collection that we shall be able to effect on their accounts,
we shall divide fifty-fifty. Likewise you are entitled to commission, 50/50 from domestic, inheritance and commercial from our said clients or in any
criminal cases where they are involved.
"2. I shall not deal directly with our clients without your consent.
"3. You shall take care of collecting our fees as well as advances for expenses for the cases referred to us by our clients and careful in safeguarding our
interest.
"4. It is understood that legal expenses that we shall recover from the debtors shall be turned over to our clients. Other clients who directly or indirectly
have been approached or related (sic) to you as a result of your labor are your clients.
"I hereby pledge in the name of God, our Heavenly Father, that I will be sincere, honest and fair with you in connection with our transactions with our
clients. Likewise you must be sincere, honest and fair with me.
Very truly yours,
(Sgd.) Illegible
TIMOTEO A. DAVID
"P.S.
I will be responsible for all documents entrusted me by our clients.
(Sgd.) Initial
"CONFORME to the above and likewise will reciprocate my sincerity to Atty. David as stated in the last paragraph of this letter.
(Sgd.) Tan TekBeng
MR. TAN TEK BENG"
The foregoing was a reiteration of an agreement dated August 5, 1969. Note that in said agreement lawyer David not only agreed to give one-half of his
professional fees to an intermediary or commission agent but he also bound himself not to deal directly with the clients.
The business relationship between David and Tan TekBeng did not last. There were mutual accusations of doublecross. For allegedly not living up to the
agreement, Tan TekBeng in 1973 denounced David to Presidential Assistant Ronaldo B. Zamora, to the Office of Civil Relations at Camp Crame and to
this Court. He did not file any civil action to enforce the agreement.
In his 1974 comment, David clarified that the partnership was composed of himself as manager, Tan TekBeng as assistant manager and lawyer Pedro
Jacinto as president and financier. When Jacinto became ill and the costs of office maintenance mounted, David suggested that Tan TekBeng should
also invest some money or shoulder a part of the business expenses but Tan TekBengrefused.chanrobles.com : virtual law library
This case was referred to the Solicitor General for investigation, report and recommendation. Hearings were scheduled from 1974 to 1981. It was
proposed that respondent should submit a stipulation of facts but that did not materialize because the scheduled hearings were not held due to the
nonavailability of Tan TekBeng and his counsel.
On September 16, 1977 Tan TekBeng died at the Philippine Union Colleges Compound, Baesa, Caloocan City but it was only in the manifestation of his
counsel dated August 10, 1981 that the Solicitor Generals Office was informed of that fact. A report on this case dated March 21, 1983 was submitted by
the Solicitor General to this Court.
We hold that the said agreement is void because it was tantamount to malpractice which is "the practice of soliciting cases at law for the purpose of gain,
either personally or through paid agents or brokers" Sec. 27, Rule 138, Rules of Court). Malpractice ordinarily refers to any malfeasance or dereliction of
duty committed by a lawyer. Section 27 gives a special and technical meaning to the term "malpractice" (Act No. 2828, amending sec. 21 of Act No.
190).
That meaning is in consonance with the elementary notion that the practice of law is a profession, not a business. "The lawyer may not seek or obtain
employment by himself or through others for to do so would be unprofessional" (2 R.C.L. 1097 cited in In re Tagorda, 53 Phil. 37, 42; Malcolm, J., Jayme
v. Bualan, 58 Phil. 422; Arce v. Philippine National Bank, 62 Phil. 569). The commercialization of law practice is condemned in certain canons of
professional ethics adopted by the American Bar Association:jgc:chanrobles.com.ph
"34. Division of Fees. No division of fees for legal services is proper, except with another lawyer, based upon a division of service or
responsibility."cralaw virtua1aw library
"35. Intermediaries. The professional services of a lawyer should not be controlled or exploited by any law agency, personal or corporate, which
intervenes between client and lawyer. A lawyers responsibilities and qualifications are individual. He should avoid all relations which direct the
performance of his duties by or in the interest of such intermediary. A lawyers relation to his client should be personal, and the responsibility should be
direct to the client. . . ."cralaw virtua1aw library
"38. Compensation, Commissions and Rebates. A lawyer should accept no compensation, commissions, rebates or other advantages from others
without the knowledge and consent of his client after full disclosure." (Appendix, Malcolm, Legal Ethics).
We censure lawyer David for having entered and acted upon such void and unethical agreement. We discountenance his conduct, not because of the
complaint of Tan TekBeng (who did not know legal ethics) but because David should have known better.chanrobles law library
"Unprofessional conduct in an attorney is that which violates the rules or ethical code of his profession or which is unbecoming a member of that
profession" (Note 14, 7 C.J.S. 743).

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SECOND DIVISION

[A.C. No. 1261. December 29, 1983.]

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