JOSEPH SAMALA VS. ATTY.

PALAÑA
AC No. 6595 April 15, 2005

FACTS:

This is a complaint filed by Joseph Samala against respondent Atty.

Palaña for alleged fraudulent activities that violate the Code of Professional
Responsibility. Due to the personal representations and assurances of
respondent, complainant joined the company of First Imperial Resources, Inc.
(FIRI), believing that it is a reputable company based in the Virgin Islands
which has been in the foreign exchange business for 13 years.

Subsequently, complainant decided to pull out his investment and sent

FIRI a letter requesting the withdrawal of his investment amounting to
US$10,000 and giving FIRI 10 days to prepare the money. He was given a
check w/c was dishonored because it was DAIF (drawn against insufficient
funds). He was reassured over and over again that it will be funded but to no
avail. Complainant filed for Estafa against FIRI’s President Paul Desiderio but
such person identity was found to be fictitious.

Respondent was instrumental in the issuance of the check signed by the

alleged President of FIRI, Paul Desiderio, whose whereabouts could not be
located and whose identity was unknown for respondent was the one who
handed personally to the herein complainant the check which was dishonored
due to insufficient funds, when it was the very respondent, Atty. Palana, who
allegedly assured that the check was funded. Respondent was also one of those
alleged officers of FIRI who assured complainant that his investment was
directly placed in a reputable company.

ISSUES:

Whether or not Atty. Palaña has violated the Code of Professional

Responsibility and must be suspended.

Robert V. Florin
Juris Doctor
University of Northeastern Philippines
 JOSEPH SAMALA VS. ATTY. PALAÑA
AC No. 6595 April 15, 2005

RULING:

Respondent Atty. Palana has been found GUILTY of violating Canon 7

Rule 7.03 of the Code of Professional Responsibility and was ordered to be
SUSPENDED from the practice of law for a period of three (3) years with a
WARNING that a repetition of the same or similar acts will be dealt with more
severely.

The Court held that it is clear that the representations of respondent as

legal officer of FIRI caused material damage to complainant. In so doing,
respondent failed to uphold the integrity and dignity of the legal profession
and lessened the confidence of the public in the honesty and integrity of the
same.

LEGAL DOCTRINES:

CODE OF PROFESSIONAL RESPONSIBILITY – Canon 7

The Code of Professional Responsibility mandates that "a lawyer shall at

all times uphold the integrity and dignity of the legal profession. To this end,
nothing should be done by any member of the legal fraternity which might tend
to lessen in any degree the confidence of the public in the fidelity, honesty and
integrity of the profession.

Canon 7 – A lawyer shall at all times uphold the integrity and dignity of
the legal profession, and support the activities of the Integrated Bar

Rule 7.03 - A lawyer shall not engage in conduct that adversely reflects on
his fitness to practice law, nor shall he, whether in public or private life,
behave in a scandalous manner to the discredit of the legal profession.

Robert V. Florin
Juris Doctor
University of Northeastern Philippines