Rabbi Ovadyah Yossef, with the permission of his great Rabbi, the Tzaddik Rav Ezra Attiyah, wrote a sefer named Halikhot Olam.
This is a six volume masterpeace which is written on the SEFER BEN ISH HAI, and in it Rav Ovadyah is very critical of some of the Ben Ish Hai's rulings.
What I am wondering is, what I as a Sephardi must do when the 2 argue. Am I supposed to follow Rav Ovadyah or the Ben Ish Chai? Most of my Sephardi friends hold of Rav Ovadiah's rulings as final. Is that the right thing to do?
I cannot tell you what you should do but I will tell you that what your friends hold does not make the halacha. You MUST ask a competent
rabbi what you should do.
Rab Ovadia Yosef follows the MARAN, Shulhan Aruch (Peshat); however, Hakham Yosef Haiim (BEN ISH HAI) follows Maran as well as the ZOHAR and ARIZAL (SOD).
You are no doubt aware that traditionally, Sephardim (specifically Edot Hamizrah) followed a combination of Maran and the sod.