KWD hired Ignes approved by OGCC and COA

Dela Pena board vs Yapchockun board

Dela Pena board want annul Reyes and Uy appointment as directors

Dela Pena board appoint Viajar Jr. and Mann under Ignes

Ignes, Viajar Jr. and Mann filed Indirect contempt vs KWD

Ignes, Viajar Jr. and Mann filed Injunction and damages vs KWD
KWD and Gomba filed supplemental complaint

OGCC approved contract of Atty. Cuanan as new legal

couns. of KWD Feb. 16, 2007. Stated Atty. Ignes expired Jan 14 2007

OGCC replied to Gomba's insistence that contract of Ignes

expires on 4/17/2007. OGCC stated that as stipulated
1. OGCC or KWD may terminate retainer at any time
2. OGCC auth. to private couns. withdrawal under just. circ.
4. Termnx. of Ignes justified coz Local Water Utilites
admin confirmed Yapchockun as new BOD and Yap board
requested new counsel

Complainants (Vargas and Panes) filed disbarment vs respondents

alleging they acted as counsel without legal auth. File before
IBP.
1. Alleged resp. filed cases as KWD counsel without Leg. Auth
2. Atty. Ignes continued represent KWD even after OGCC confirmed
expiry of contract

Atty. Man defense

1. They can rep. KWD unti April 17 2007 since Ignes was not notif
of pretermination.
2. Man stopped rep. KWD after April 17 2007 deferring to OGCC.

Complainants filed manifestation IBP attaching

1. Transcript Steno notes of Jan 28, 2008 case
showed Ignes as KWD couns
2. Notce of appeal Feb 28, 2008
showed ignes signed Notice

Investigating comissioner recom dimissal of charge vs. Atty ignes

1. Atty. Ignes valid autho for 1 yr. April 2006 to April 2007
2. Atty Ignes unaware of pre-termination when Ignes filed pleadings
in Feb and March 2007

3. Viajar Jr. Mann. and Nadua be fined 5l for appearing without aut
. Failed to secure conformity of OGCC and COA

IBP reversed recomm of investigating comissioner and dismissed case for

lack of merit

Complainants: 1. IBP Board of Gov erred in dismissing coz reps had no OGCC auth. to
file complaints
and appear as KWD counsels in Civil Case 1799, SCA Case NO. 50-24 and
Civil Case
no. 1796-25
2. Retainership expired Jan 14, 2007 and Notice of Appeal filed by
Ignes et al in Case
 1799 denied by RTC for filed by one not duly authorized by law
3. Colab councils Viajar J. and Man since Reso No. 009 of Dela Pena
board no conformity
of OGCC
Atty Ignes: 1. Admit authority expired Apri 17, 2007 but they stopped rep KWD after
that date
2. Not guilty of appearing without autho
3. Fees paid from private funds

ISSUE: Did Ignes, Mann and Viajar Jr.have valid authority to appear as KWD
counsels?

RULING: No.
1. Nothing in the records shows that Atty. Nadua was engaged by KWD as
collaborating counsel.
No proof OGCC and COA approved Atty. Nadua's engagement as legal counsel
or collab. couns.
2. Attys. Viajar, Jr. and Mann appointment as collaborating counsels of KWD
under Resolution No. 009 has no approval from the OGCC and COA.
3. Atty. Ignes appeared as counsel of KWD without authority after his
authority as its counsel had expired. True, the OGCC and COA approved his
retainership contract for one (1) year effective April 17, 2006. But even if we
assume as true that he was not notified of the pre-termination of his contract, the
records still disprove his claim that he stopped representing KWD after April 17,
2007