DAVID P. FORNILDA, JUAN P. FORNILDA, EMILIA P.

FORNILDA xxx xxx xxx

OLILI, LEOCADIA P. FORNILDA LABAYEN and ANGELA P. FORNILDA
GUTIERREZ, petitioners,
vs.
THE BRANCH 164, REGIONAL TRIAL COURT IVTH JUDICIAL
REGION, PASIG, JOAQUIN C. ANTONIO Deputy Sheriff, RTC, 4JR
Tanay, Rizal and ATTY. SERGIO I. AMONOY respondents.
G.R. No. 72306 October 6, 1988
FACTS:
• The Controverted Parcels were part of the estate of the late Julio
M. Catolos subject of intestate estate proceedings, wherein
Respondent Amonoy acted as counsel for some of the heirs from
1959 until 1968 by his own admission.
• These properties were adjudicated to Alfonso Fornilda and
Asuncion M. Pasamba in the Project of Partition approved by the
Court on 12 January 1965
• On 20 January 1965, or only eight (8) days thereafter, and while
he was still intervening in the case as counsel, these properties
were mortgaged by petitioners' predecessor-in-interest to
Respondent Amonoy to secure payment of the latter's attorney's
fees in the amount of P27,600.00
• Since the mortgage indebtedness was not paid, Respondent
Amonoy instituted an action for judicial foreclosure of mortgage
on 21 January 1970
• The mortgage was subsequently ordered foreclosed and auction
sale followed where Respondent Amonoy was the sole bidder for
P23,600.00
• Being short of the mortgage indebtedness, he applied for and
further obtained a deficiency judgment.
(5) Justices, judges, prosecuting attorneys, ... the
property and rights in litigation or levied upon on
execution before the court within whose junction or
territory they exercise their respective functions; this
prohibition includes the act of acquitting by assignment
and shall apply to lawyers with respect to the property
and rights which may be the object of any litigation in
which they may take part by virtue of their profession.
(Emphasis supplied)
• Under the aforequoted provision, a lawyer is prohibited from
acquiring either by purchase or assignment the property or
rights involved which are the object of the litigation in
which they intervene by virtue of their profession. The
prohibition on purchase is all embracing to include not only sales
to private individuals but also public or judicial sales
• At the time the mortgage was executed, therefore, the
relationship of lawyer and client still existed, the very relation of
trust and confidence sought to be protected by the prohibition,
when a lawyer occupies a vantage position to press upon or
dictate terms to a harassed client. From the time of the execution
of the mortgage in his favor, Respondent Amonoy had already
asserted a title adverse to his clients' interests at a time when the
relationship of lawyer and client had not yet been severed.
• Considering that the mortgage contract, entered into in
contravention of Article 1491 of the Civil Code is expressly
prohibited by law, the same must be held inexistent and void ab
initio.

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:

Zenaida Resuma Razon

Disqualifications
Sales and Lease