FACTS: Diana De Guzman filed a disbarment complaint against Atty. De Dios for representing conflicting interests. Complainant averred that she engaged the services of respondent in 1995 as counsel in order to form a hotel and restaurant corporation. With the assistance of respondent, said corporation was registered with the SEC. Respondent also represented complainant in one case involving a property of the corporation. Respondent however averred that since the action involved a property of the corporation, she represented complainant to protect the interests of the corporation, she being its legal counsel. Complainant also averred that while respondent rose to become president of the corporation, she lost all her investments when her delinquent shares were sold by the corporation in a public auction upon the advise of respondent. The IBP dismissed the complaint on the ground that there was no attorney – client relationship.
ISSUE: Whether there was attorney – client relationship which may justify holding respondent guilty of representing conflicting interests.
HELD: Yes. It was complainant who retained respondent to form a corporation. She appeared as counsel in behalf of the complainant. There was also evidence of collusion between the board of directors and respondent. Indeed, the board of directors now included respondent as the president. It was also upon her advice that the delinquent shares of complainant were sold at public auction. The present situation shows a clear case of conflict of interests of the respondent.
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