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Question XIX
St. Ivan's Hospital, Inc. (St. Ivan's) and Allied Construction Co. (Allied) separately retained the legal services of Tomas and Benedicto Law Offices. St. Ivan's engaged the services of Allied for the construction of a new building but failed to pay the contract price after the completion of the works. A complaint for sum of money was filed by Atty. Budoy, a former associate of Tomas and Benedicto Law Offices, on behalf of Allied against St. Ivan's. St. Ivan's lost the case and was held liable to Allied.
Thereupon, St. Ivan's filed a disbarment complaint against Atty. Budoy. It claimed that while Atty. Budoy has established his own law office, an arrangement was made whereby Tomas and Benedicto Law Offices assign cases for him to handle, and that it can be assumed that Tomas and Benedicto Law Offices collaborate with Atty. Budoy in the cases referred to him, creating a conflict of interest. Rule on the complaint with reasons. (5%)
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