In re Lizama
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
Date FiledDecember 16, 1991
JudgeVillagomez
StatusPublished
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Full Opinion
CLERK OF COURT
SUPREME COURT. CNMJ
FILED
91�: ,s
FOR PUBLICATION
B:Y -�
IN THE SUP'RE1U: COURT OF THE
COH.Hmr:n:::ALTH OF THE NORTll:EIUl !-!A.Rirl1lA ISL.A!lDS
IN THE MATTER OF THE AP PEAL NO. 90-037
DISCI PLINE OF DISCI P LINARY ACTIOH NO. 90-01
JUAN T. LIZAMA, OPnliO�l
Respondent.
Argued and submitted May 7, 1991
Counsel for Respondent/Appellant: Reynaldo Yana
P. O. Box 6529
Saipan, MP 96950
Counsel for Petitioner/Appellae: Jane Mack
Micronesian Legal services
P.O. Box 826
Saipan, M P 96950
BEFORE: DELA CRUZ, Chief Justice, VI LLAGOMEZ and BORJA, Justices.
VILLAGOMEZ, Justice:
Respondent, Juan T. Lizama, ("Lizama") appeals the trial
court decision which found that he:
1. Violated Rule 1. 15, of the ABA Model Rules of
Professional Conduct, 1 by placing a client's trust fund
Hereafter, reference to a rule pertains to the ABA Model
Rules of Professional Conduct, unless otherwise specified.
363
I
I
in his personal account and commingling it with his own
money, without the client's knowledge and consent.
2. Violated Rule 1. 7 (a) and Rule 2. 2 by
simultaneously representing himself, Teresita T. Camacho
("Teresita"), and his mother while they had conflicting
interests.
3. Violated Rule 1.8 (a) by entering into a business
transaction with a client, without clearly explaining the
nature of the transaction and without advising the client
to seek the advice of an independent counsel.
4. Violated Rule 1. 8 (e) by providing financial
assistance to a client in connection with a pending or
contemplated litigation.
5. Violated Rule 1.8 (f) b y receiving fees from his
client (administratrix) and a third person (Teresita) in
a probate case.
Lizama contends that clear and convincing evidence2 do not
support the factual findings of the trial court, as to each of the
above violations found, and that the court erred as a matter of law
in concluding that the above rules were violated.
I.
On January 10, 1990, Teresita submitted to Charles K. Novo
Gradac (chairperson of the disciplinary committee of the CNMI Bar
2 Rule 9 (g) of the Disciplinary Rules and Procedure requires
proof by clear and convincing evidence.
364
Association) a letter of complaint against Lizama. Teresita
complained that Lizama had taken $9,000.00 of her money, placed it
in a trust account, and had refused to return it to her.
The disciplinary committee, through David A. Webber (a
committee member), investigated the complaint. Mr. Webber reported
his factual findings to Mr. Novo-Gradac by letter dated February
14 , 1990. In his letter, Mr. Webber concluded that Lizama had
technically violated Rule 1. 7 and recommended that he be given a
letter of admonishment.
The bar committee reviewed Mr. Webber's report and decided
instead to reconh�end to the Superior Court that it appoint
disciplinary counsel to file a formal complaint with the court.
The court appointed attorney Jane Mack, who filed a formal
complaint against Lizama on April 9, 1990. Ms. Mack subsequently
filed an amended complaint which alleged ten (10) specific
violations of the Model Rules.
The matter went to trial in which both parties presented
evidence. The trial court concluded that Lizama violated Rules
1.15, 1.7 (a) and 2.2, 1.8 (a), (e) and (f), and imposed disciplinary
sanctions as follows:
The respondent is suspended from the practice of law
for three (3) years, thirty (30) months of which are
suspended on the following conditions:
(a) the respondent take and pass the
Multi-State Professional Responsibility
Examination within eight (8) months from this
date.
(b) The respondent pay to Teresita Camacho
$2,000 for attorney fees collected on October 14,
365
1988 and February 3, 1989. This is to be paid
within 60 days from this date.
(c) The respondent allow an independent audit
of all trust account deposits and· withdrawals made
within the past three (3) years. The respondent
shall be responsible to pay for said audit. The
bar association disciplinary counsel shall select
the auditor.
(d) The respondent shall pay the costs
of this proceeding including attorney fees
within 60 days from the date of the billing.
This is pursuant to Rule 19 of the
Disciplinary Rules.
(e) The respondent not be found in
violation of any acts giving grounds for
discipline pursuant to Rule 2, Com. R.Disc.Pro.
(f) Although not made mandatory, it is
recommended the respondent institute a
retainer agreement policy in his office to
reflect at a minimum (1) the fact of the
representation, (2) legal work to be done, and
(3) fee arrangements.
Should respondent fail to comply with conditions
(a) , (b) , (c) , (d) and (e) , the suspension of the
remaining 30 months shall be vacated and respondent shall
be suspended from the practice of law for the full three
year term.
Since the suspension of the respondent is for a
definite term, Rule 16, Com.R.Disc.Pro. will not apply
and this court will monitor the conditions imposed
herein.
In order to effectively monitor the six month
suspension, the respondent shall comply with Rule 15 of
the Disciplinary Rules.
Pursuant to Rule 15(c) , this order shall be
effective 30 days after entry.
We subsequently issued a stay of the above disciplinary
sanctions, pending appeal.
366
II.
The facts that led to this disciplinary matter are intricate
and confusing. The intricacy derives from several subsets of
events occurring simultaneously which eventually merged and became
intertwined into one complex set of facts. Unless the separate
events are carefully viewed separately, they could be
misinterpreted.
There are two main sets of facts which are relevant. First,
the probate of the estate of Isidro s. Tudela, deceased. Second,
Teresita's sale of her share of inherited land to Francisco c.
Wabol (11Waboll1). An integral part of the facts include those
surrounding the "short-exchange" claim and the sale by Teresita of
her sha�e of that claim.
To set forth these events clearly, we shall present the b1o
main sets of facts separately and show how and when they inter
twine.
A. Probate of Tudela's Estate:
Isidro s. Tudela ("Tudela") died intestate on June 17, 1965,
on Saipan. At the time of his death, he owned several parcels of
land in Saipan. Between 1973 and 1976 Tudela's ten children
(including Teresita) and his wife agreed to the partition and
distribution of Tudela 1 s land among themselves. They had the
various lands surveyed and partitioned. They subsequently executed
mutual deeds of conveyance transferring the subdivided lands among
themselves in accordance with their agreement.
367
By virtue of the mutual deeds of conveyance, each individual
heir received hisjher share of Tudela's land and obtained a
certificate of title (from the land commission office} to hisjher
individual share. (Tr. at 208-209, 215-216}3 The lands
distributed in accordance with the family agreement included Lot
E.A. 112, part of which was designated for and transferred to
Teresita (Lot E.A. 112"A"}. 4
on January 19, 1988, Inocencia T. Apatang ("Inocencia"}, one
of the ten children of Tudela, filed a petition for letters of
administration in order to probate the estate of Tudela. At that
time, Inocencia was occupying Tudela's land in Chalan Kanoa (Lot
017 H 44}. Such lot apparently was not subject to the mutual deeds
of conveyance which distributed Tudela's lands among the heirs.
Inocencia petitioned the court to probate only the lands that
had not been distributed mutually among the heirs. The trial court
appointed her as administratrix and letters of administration were
issued on February 29, 1988. In the inventory of the estate filed
on April 15, 1988, she entered only Lot 017 H 44 and a short-
exchange claim against the Marianas Public Land Corporation
("MPLC"}.
The short exchange claim constituted the difference in the
amount of land that she claimed the government should have
transferred 'to her father (Tudela} by virtue of a government land
3
"Tr." stands for transcript of the trial and the number
represents the page number of the transcript.
4
See also, the trial court's file in Civil Action No. 88-
05P.
368
exchange (EA 222),5 but which the government failed to convey. It
amounted to approximately 8,095 square meters. 6
In filing the first inventory of the estate, the administra-
trix decided not to include Lot E.A. 112 because the heirs had
distributed that lot to certain of the heirs, through a mutual deed
of conveyance, and believed it was not part of Tudela's estate.
(Tr. at 208-209, 215-216)
On May 5, 1988, the administratrix petitioned the trial court
for final distribution of the estate. The petition requested that
Lot 017 H 44 be distributed to Inocencia (the administratrix)7 as
hers and that the land, to be received from the short-exchange
claim, be sold and the proceeds therefrom be equally distributed
among the ten heirs.
However, before a final distribution was entered, on September
19, 1988, the administratrix filed an amended inventory, adding to
the assets of the estate a war claims award for the sum of
5 See our opinion in Apatang v. MPLC, No. 89-013, 1 N. Mar.I.
36 (1990).
6 MPLC initially agreed to transfer such land to the heirs,
then subsequently decided not to transfer the land unless ordered
by the court. Consequently, the heirs, through the administratrix,
filed suit against MPLC in civil Action 89-570. The trial court
entered judgment in favor of MPLC and the administratrix appealed
to this Court. This Court reversed and instructed that judgment be
entered in favor of the heirs. Apatang v. MPLC, No. 89-013, 1
N.Mar.I. 36 (1990). MPLC then transferred the land to the
administratrix (which became part of Tudela's probate case) and was
distributed in the decree of final distribution.
7 During the pendency of the probate, Inocencia purchased
from the nine other heirs all their interests in Lot 017 H 44 and
received deeds from each of them. See trial court's file in Civil
Action No. 88-0SP.
369
$2,347.90.8 on the same day, she amended her petition for final
distribution and requested that:
1. Lot 017 H 44 be distributed to the administra-
trix, Inocencia.
2. That any land received by virtue of the short
exchange claim be sold and the procee qs therefrom be
9
distributed equally among the ten heirs.
3. That the \var claims money be equally divided
among the ten heirs.
Lot E. A. 112 was still not included in the petition for final
distribution of the estate.
On January 25, 1989, the administratrix filed a second amended
inventory which added Lot E. A. 112 to the estate.
The reasons for the second amended petition is as follows:
First, Teresita, an heir of Tudela, decided to sell her share of
Lot E.A. 11 2 (E.A. 11 211A11 ) to Wabol. Second, Wabol would not
purchase the land unless title insurance was obtained. Third, the
title insurance company would not insure title unless Lot E.A. 11 2
was probated as part of the estate of Tudela. Thus, Lot E.A. 11 2
was made a part of the estate to confirm the deeds of conveyance
8 During the pendency of the probate, the war claims award
was issued by the government for the heirs of Tudela.
9
It was at this point that M PLC amicably agreed to transfer
such land to the heirs. Subsequently, it changed its position and
would not transfer the land to the heirs unless ordered by the
court.
370
and the title in the respective heirs.
On February 3, 1989, the trial court issued a decree of
partial distribution, which, among others, confirmed and approved
the conveyance of Lot E.A. 112"A11 to Teresita under the mutual deed
of conveyance. The decree further confirmed the validity of the
land exchange between Tudela and Pangelinan with respect to Lot
E.A. 112, as was previously determined by the u.s. District Court.
It also authorized the administratrix to file suit against MPLC for
the short-exchange claim. 10
On November 6, 1990, the trial court entered a final decree
distributing the land received from MPLC for the short-exchange
claim (Lot 031 L 05), to the administratrix to sell and distribute
the money among the heirs.
B. Teresita's Sale of Lot E.A. 112"A" to Wabo1:
In August, 1988, Teresita agreed to sell her share of the
Papago land (E.A. 11211A11) to Wabol. At that time, Teresita was
living in Nevada and was told by Charles Novo-Gradac, the attorney
for Wabol, that it would take two months to complete the
transaction. Two months later she returned to Saipan and on
October 11, 1988, went to the office of Mr. Novo-Gradac to close
the transaction. Mr. Novo-Gradac told her that the title insurance
company found two defects with her title to Lot E.A. 11211A" and
10
At this point, MPLC had decided not to transfer land for
the short-exchange claim unless ordered by the court. The
administratrix filed a court action which was disposed of in her
favor (by this Court) on April 30, 1990. Apatang v. MPLC, supra,
n. 5 .
371
would not insure title unless those defects were removed. Without
the title insurance, Wabol would not buy the land.
The news that Wabol would not buy the land depressed and
angered Teresita. {Tr. at 11, 62) Her land had been conveyed to
her since 1974 by all of the other heirs of Tudela. The land was
no longer in her deceased father's name and she had been issued a
certificate of title to the land. 11 (Tr. at 216) She had
expected to close the transaction, receive the purchase money, and
return to Nevada.
The two defects raised by the title insurance company were (1)
the questionable validity of the prior exchange involving Lot E.A.
112 between Tudela and Pangelinan because Pangelinan•s estate had
not been probated, and (2) Lot E.A. 112 was in the name of Tudela,
at the time of his death, and his estate had not been probated.
Novo-Gradac advised Teresita to seek legal counsel to correct
the defects. Since Teresita knew that Lizama was the attorney in
the Tudela probate matter, she went to talk to him about the two
defects. Lizama agreed to help Teresita remove those defects for
a fee of $1,000.
With respect to the first defect (i.e., the validity of the
exchange between Pangelinan and Tudela), Lizama investigated the
matter and discovered that the exception raised by the title
insurer was baseless. He found that the federal district court had
earlier addressed the matter and had declared the exchange to be
11
It was for this reason that this parcel was not initially
entered as part of Tudela's estate.
372
valid. Lizama did not have to take any further action in the
Tudela probate case to satisfy the title insurer's concern about
the PangelinanjTudela exchange. Part of Teresita's agreement to
pay Lizama was for that work. As a result of that research work,
the insurance company was satisfied.
With respect to the second defect (i. e., the non-inclusion of
Lot E.A. 112 in Tudela's estate), Lizama called Novo-Gradac and
advised him that he was already handling the probate of Tudela's
estate and would include Lot E.A. 112 in the inventory of the
estate. Therefore, to correct the defect, Lizama amended the
inventory of the estate a second time and included Lot E.A. 112.
Before any of the above work could be done, Teresita found
herself in a financial predicament. (Tr. at 78, 226, 313) The
removal of the alleged defects would take time. Until then, she
could not receive the money she had expected to receive from Wabol
(Tr. at 14), and she had to return to Nevada, but had no money for
her transportation. (Tr. at 18, 78)
Knowing that her brother, Candido, had earlier sold his
interest in the short-exchange claim to Ben Salas for $5,000 and
that her sister, Margarita, had agreed to sell her interest in the
short-exchange land to Lizama's mother for $10,000, Teresita
offered to sell her own share in the short-exchange claim to Lizama
for $10,000. (Tr. at 226-227)
Lizama rejected Teresita's offer for ethical reasons. (Tr.
225, 281) Teresita then started crying and begging for help. (Tr.
at 226, 313) In response, Lizama told her that he would see what
373
he could do to help her. He walked outside his office and asked
one of his employees, Juan B. Tudela, if he would like to purchase
Teresita's interest in the short-exchange claim. After telling him
the price of the land, Juan B. Tudela replied that he did not have
$10, 000. Lizama then called his mother and told her about
Teresita's offer to sell her land interest. It was then decided
that Teresita's expectancy would be purchased. However, Lizarna
claims that there was an understanding with Teresita that upon
selling her Papago land to Habol, she would return the $10, 000 and
take back her expectancy. (Tr. at 230-290)
On October 14, 1988, Lizarna drafted two documents (an
assignment of expectancy and a deed) for Teresita 1 s signature,
transferring her short exchange expectancy to Lizarna's mother for
the consideration of $10, 000. Lizarna had previously prepared
similar documents for Candido and had also prepared a set for
Margarita. Both Teresita and Margarita executed their documents at
the same time and each received $10, 000, except that Margarita paid
Lizama $1, 000, out of her $10, 000, for Teresita's attorney's fee.12
For this transaction, Lizarna did not advise Teresita to seek the
advice of another counsel before selling her short-exchange
expectancy.
The $20, 000 paid for the purchase of Teresita and Margarita's
expectancies carne from the account of KST Corporation, a
corporation wholly owned by Lizarna's employee, Toshiko Yoshimura,
12
Th is fee was for the work to be done in clearing the
insurer's concern about the PangelinanjTudela exchange and for
including Lot E.A. 112 in Tudela's estate.
374
and her husband. This corporation was formed by Lizama, who was
one of the incorporators and was listed as secretary/treasurer.
After Lizama had corrected the title defects by having
Teresita's ownership of Lot E.A. 112"A0 confirmed and approved by
the trial court in the probate of Tudela's estate, and by
discovering the District Court decision which had validated and
approved the Pangelinan; Tudela exchange, Teresita's sale to Wabol
was consummated and Mr. Novo-Gradac delivered a check for $56,325
to Lizama.
Lizama and Teresita went to the bank where Teresita endorsed
the check. Lizama kept $10,000, $1,000 for his fee in representing
Teresita in the Wabol sales transaction13 and placed the remaining
$9,000 in a trust account entitled " Lizama, Juan ATF Camacho,
Teresita T." According to Lizama, he deposited the money in the
trust account because Teresita suddenly changed her mind and
decided not to return the $10,000 to Lizama•s mother. contrary to
his understanding, she, at that point, wanted to keep the $10,000.
(Tr. at 304) Lizama wanted to give her time to think about whether
to return the money or keep it.14 However, after a certain period
of time, if she failed to inform him that she opted to keep the
13
Although the trial court found that the $1,000 was for
Lizama•s representation of Teresita in the Wabol sale, the record
does not show what legal work Lizama performed in connection with
that representation. However, Lizama testified that when he kept
the $1,000, he thought he had not been previously paid by Teresita.
(Tr. at 205) In fact, he was previously paid $1,000 by Margarita,
on behalf of Teresita.
14
Instead of giving Teresita the money, or returning it to
his mother, he decided to place it in the trust account.
375
$10,000, and he had to file suit against M P LC regarding the short
exchange claim, then he would have to close the account and give
the money to his mother. (Tr. at 250) According to Teresita, she
did not agree with what Lizama was doing and thought that the money
was hers and would receive notice before it would be taken out of
the account. (Tr. at 44-46)
On April 17, 1989, Lizama paid Toshiko Yoshimura $30,000.00,
part of which was to reimburse KST Corporation for the $10,000 used
to purchase Teresita's short-exchange land. After paying off KST
Corporation, Lizama then closed out the trust account on May 23,
1989, and transferred the $9, 073.22 in that account to his personal
account, without Teresita's knowledge or consent, and without re
conveying to Teresita, her interest in the short-exchange claim.
In November, 1989, Teresita returned to Saipan and asked
Lizama for the $9,000 placed in the trust account. Lizama refused,
claiming that Teresita had opted to take back her interest in the
short-exchange claim. Therefore, the money belonged to him since
he had paid off KST Corporation. At the same time, however, the
interest in the short-exchange claim remained in Lizama's mother's
name and had not been re-conveyed to Teresita.
Thereafter, Teresita filed a complaint with the Bar
Association and the disciplinary committee advised Lizama to return
the money to Teresita. Lizama returned the money. The complaint
brought by Teresita proceeded to trial.
376
III.
Lizama contends that the factual findings of the trial court,
with respect to each of the violations found, are not supported by
clear and convincing evidence, as required by Rule 9 (g) of the
Disciplinary Rules and Procedures, and constitute reversible error.
The disciplinary counsel contends that the findings are
substantially supported by clear and convincing evidence, pointing
out the evidences in the record that support each of the findings.
�ve agree.
When the burden of proof at the trial court is that of clear
and convincing evidence, and the assigned error is that the
evidence do not support the trial court's findings of fact, the
standard of review is whether the findings are supported by
competent and substantial evidence. See In re Estate of Manuel F.
Aldan, No. 90-04 5 (N.M.I. Mar�h 6, 1991). This is a question of
law. 5 Am.Jur 2d Appeal and Error, § 831 (1962). We review
questions of law de novo. In re Adoption of Amanda c. Magofna, No.
90-012, 1 N. Mar.I. 172 (1990).
Here, there are conflicting evidence. However, we accord
particular weight to the trial judge's assessment of conflicting
and ambiguous evidence. And, when a trial court's finding is
supported by substantial evidence, it should not be disturbed on
appeal. In re Estate of Lorenzo Rofag, No. 89-019 (N.M. I. Feb. 22,
1991). Upon careful review of the record, we conclude that the
findings of the trial court are supported by competent and
377
substantial evidence. 15
IV.
The trial court found Lizama to have violated Rule 1. 15 by co-
mingling his client's fund with his own personal fund without the
client's knowledge and consent. Lizama contends that as a matter
of la'tl, the trial court committed an error by reaching that
conclusion.
This issue raises a question of law which we review de novo.
Dilutaoch v. C & s Concrete Block Products, No. 90-016 (N.M.I. Feb.
1, 1991) . In applying that standard of review, it is our opinion
that the trial court did not commit an error of law.
First, the $9, 000 placed in the trust account was done in
order to safeguard the client's money. Second, the money was taken
out of the trust account and the account was closed without the
knowledge and consent of the client. Third, the money taken out
from the client's trust account was then deposited in Lizama's own
personal account without the client's knowledge and consent.
Since Teresita was Lizama's client, it is clear that he co-
mingled his client 1 s money with his own. Therefore, the trial
court did not conunit an error of law. We affirm as to the
violation of this rule.
15 We affirm the finding of the trial court that there existed
an attorney/client relationship between Lizama and Teresita
s.tarting when Lizama agreed to assist in removing the title
defects.
378
v.
The trial court found Lizama to have violated Rule 1. 7(a) and
2. 2 by simultaneously representing himself, Teresita, and his
mother when they had conflicting interests. Lizama contends that
this conclusion by the trial court constitutes an error of law. We
apply the de novo standard of review. Dilutaoch, suora.
When Lizama agreed to help Teresita in removing the two
defects upon her title to Lot E. A. 11211 A11, she became his client.
At the time that Teresita offered to sell the land to him, she was
still his client.
Lizama then arranged for his mother to purchase the short
exchange claim from Teresita and prepared the documents for
Teresita's signature, transferring the claim to his mother. At
that point, he was using his mother's name to purchase the claim
himself.
Subsequently, he re-paid KST Corporation the $10,000 and
claimed that the money in the trust account became his money. The
trial court correctly concluded based on these facts that Lizama
was the real purchaser of the land but used his mother's name to
make the purchase.
The trial court's analysis is consistent with the principle
that the one who advances the money (unless the money is a gift or
a loan) becomes the purchaser of the land. See, Aldan- Pierce v.
Mafnas, No. 89-003 (N. M.I. July 5, 1991).
However, since the trial court found that Lizama used his
mother's name as a sham, its conclusion that Lizama was
379
representing his mother and Teresita simultaneously was
inconsistent and incorrect. Either Lizama represented his mother
(acted on her behalf) or used her name (acted for himself), but not
both.
Therefore, we conclude that Lizama did not violate Rule 1. 7 (a)
and that the trial court made an error of law as to the violation
of this rule. In order to violate Rule 1.7 (a), the attorney must
be representing more than one client at the same time. We reverse
as to the this violation.
We note, also, that Lizarna did not engage in any negotiations
regarding the terms of the transaction on behalf of either Teresita
or his mother. He did not act for his mother, but only used her
name. Teresita made a definite offer to sell her land for $10,000
and the offer was accepted as is. Lizama did not act as an
"intermediary" bet•.veen Teresita and his mother. For this reason,
we conclude that Lizama did not violate Rule 2.2 and we reverse as
to the violation of that rule.
VI.
The next issue raised by Lizama is whether the trial court
made an error of law by concluding that Lizama violated Rule l.S (a)
by entering into a business transaction with a client, without
clearly explaining the nature of the transaction and without
advising the client to seek the advice of an independent counsel.
This is a question of law which we review de novo.
The trial court, having found that Lizama was the person who
380
purchased the land through his mother, while Teresita was his
client, was correct in concluding that Lizama entered into a
business transaction with his client. We, therefore, affirm as to
this violation, but note the following mitigating factors.
1. It was Teresita who initiated the offer to sell her land
to Lizama. Lizama rejected the offer but was moved to do something
when the client (his aunt) started crying in front of him, begging
for help.
2. The nature of the transaction •11as clear and s i:nple.
Teresita offered to sell her interest in the short-exchange claim
for $10, 000 and the offer was accepted.
3. Since Teresita was in a predica�ent and needed the money
immediately to return to Nevada, she did not care who was buying
the land, how, and where the money was coming from, as long as she
got paid.
These factors should be considered in imposing sanction.
VII.
Lizama next contends that the trial court committed an error
of law by concluding that Lizama violated Rule l.S (e} in providing
financial assistance to a client in connection with a pending or
contemplated litigation. This is an issue of law which we review
de llQYQ .
We agree. The payment of $10, 000 to Teresita was solely for
the purchase of her interest in the short-exchange claim. That
transaction was not made in connection with either the case
381
subsequently filed against MPLC or the pending probate of the
estate of Tudela. Teresita was desperate for money and was anxious.
to sell her expectancy, not because of any pending or contemplated
case, but simply to get back to Nevada. Teresita was not a client
of Lizama in either the probate case or the case against M L P C. The
only client in both cases was the administratrix, Inocencia.
Therefore, we conclude that the trial court made an error of
law and we reverse its decision as to the violation of this rule.
VIII.
Lizama contends that the trial court made an error of law by
concluding that Lizama violated Rule 1.8(f) by receiving fees from
his client (administratrix) and a third person ( Teresita) in the
probate case. This is an issue of law which we review de DQYQ .
We agree with Lizama partially. Although the trial court
correctly found that Teresita was Lizama's client, it failed to
identify the precise legal work for which Teresita hired Lizama and
paid the first $1,000 (through Margarita) in his office.
Teresita hired Lizama to eliminate the two defects raised by
the title insurance company. The first defect, involving the
Tudela/ Pangelinan exchange, had no relationship with the Tudela
probate and was resolved simply by legal research. That legal work
was properly paid out of the $1,000, but only part thereof. The
other part of the $1,000 was to pay for correcting the second
defect.
As to the second defect, Lizama had learned that the title to
382
the land (land to be sold to Wabol) had been transferred from
Tudela • s estate to Teresita by the mutual deed of conveyance.
However, to correct the title defect raised by the insurance
company, he had to include that land in the estate of Tudela for
the court to confirm and approve the prior distri bution. Since
Inocencia was already paying for that work, Lizama's acceptance of
additional fee from Teresita was impermissible. However, the
record on appeal does not show what portion of the $1, 000 should be
applied towards correcting the first defect, and ho1'.v much should be
applied to�vards amending the inventory of the estate of Tudela.
Therefore, we shall remand as to this issue for determination by
the trial court.
As to the second $1, 000 fee paid by Teresita at the bank, the
trial court is correct th::tt such money should be returned to
Teresita. There is no'ching in the record that explains what
exactly that fee was being paid for. The trial court states in its
decision that the "$1, 000 was for additional attorney's fee in
11
processing the Wabol sale . (Emphasis added)