A.M. No.

1388 March 28, 1980

ANA F. RETUYA v ATTY. IÑEGO A. GORDUIZ

AQUINO, J:

Facts:
Ana Retuya was a widow who filed a claim for workmen’s compensation against Eastern Shipping
Lines, Inc., the employer of her husband. The involved parties made a compromise agreement of
reducing the claim by half.

When Ana received the claim she was unable to contact Atty. Iñego Gorduiz and pay his fee.
Unexpectedly, she was sued by Atty. Gorduiz for the crime of estafa due to misappropriated his
attorney's fees. The case against Ana was dismissed after the settlement with Atty. Gorduiz.

Even though the case was dismissed, Ana felt that she was aggrieved in the proceeding with her
estafa case under Judge Paulo Equipilag, hence, she filed a petition for disbarment or suspension
of Atty. Gorduiz and Judge Equipilag.

Issue:
Whether or not Atty. Iñego Gorduiz initiated a groundless suit against his client Ana Retuya?

Held:
YES. Paragraph 14 of the Canons of Legal Ethics prescribes that "controversies with clients
concerning compensation are to be avoided by the lawyer so far as shall be compatible with his
self- respect and with his right to receive reasonable recompense for his services; and lawsuits
with clients should be resorted to only to prevent injustice, imposition or fraud."

Rule 20.02: A lawyer shall avoid controversies with clients concerning his compensation
and shall resort only to judicial action only to prevent imposition, fraud, or injustice.

Canon 20: A lawyer shall charge only fair and reasonable fees.

The Court ruled that Atty. Gorduiz is suspended from the practice of law for a period of six months
counted from notice of the decision.