DAVID P. FORNILDA, JUAN P. FORNILDA, EMILIA P. FORNILDA (5) Justices, judges, prosecuting attorneys, ...

the
OLILI, LEOCADIA P. FORNILDA LABAYEN and ANGELA P. FORNILDA property and rights in litigation or levied upon on
GUTIERREZ, petitioners, execution before the court within whose junction or
vs. territory they exercise their respective functions; this
THE BRANCH 164, REGIONAL TRIAL COURT IVTH JUDICIAL prohibition includes the act of acquitting by assignment
REGION, PASIG, JOAQUIN C. ANTONIO Deputy Sheriff, RTC, 4JR and shall apply to lawyers with respect to the property
Tanay, Rizal and ATTY. SERGIO I. AMONOY respondents. and rights which may be the object of any litigation in
which they may take part by virtue of their profession.
(Emphasis supplied)
G.R. No. 72306 October 6, 1988

FACTS:
 The Controverted Parcels were part of the estate of the late Julio
 Under the aforequoted provision, a lawyer is prohibited from
acquiring either by purchase or assignment the property or
M. Catolos subject of intestate estate proceedings, wherein
rights involved which are the object of the litigation in
Respondent Amonoy acted as counsel for some of the heirs from
which they intervene by virtue of their profession. The
1959 until 1968 by his own admission.
prohibition on purchase is all embracing to include not only sales
 These properties were adjudicated to Alfonso Fornilda and
to private individuals but also public or judicial sales
Asuncion M. Pasamba in the Project of Partition approved by the
Court on 12 January 1965  At the time the mortgage was executed, therefore, the
 On 20 January 1965, or only eight (8) days thereafter, and while relationship of lawyer and client still existed, the very relation of
he was still intervening in the case as counsel, these properties trust and confidence sought to be protected by the prohibition,
were mortgaged by petitioners' predecessor-in-interest to when a lawyer occupies a vantage position to press upon or
Respondent Amonoy to secure payment of the latter's attorney's dictate terms to a harassed client. From the time of the execution
fees in the amount of P27,600.00 of the mortgage in his favor, Respondent Amonoy had already
 Since the mortgage indebtedness was not paid, Respondent asserted a title adverse to his clients' interests at a time when the
Amonoy instituted an action for judicial foreclosure of mortgage relationship of lawyer and client had not yet been severed.
on 21 January 1970
 The mortgage was subsequently ordered foreclosed and auction
sale followed where Respondent Amonoy was the sole bidder for
 Considering that the mortgage contract, entered into in
contravention of Article 1491 of the Civil Code is expressly
P23,600.00
prohibited by law, the same must be held inexistent and void ab
 Being short of the mortgage indebtedness, he applied for and
initio.
further obtained a deficiency judgment.
 hehe
ISSUE: Whether or not the mortgage constituted on the Controverted
Parcels in favor of Respondent Amonoy comes within the scope of the
prohibition in Article 1491 of the Civil Code.

HELD: YES
 The pertinent portions of the said Articles read:

Art. 1491. The following persons cannot acquire by

purchase even at a public or judicial or auction, either in
person or through the mediation of another:

xxx xxx xxx

Zenaida Resuma Razon

Disqualifications
Sales and Lease