Monday, September 18, 2017

Yu Vs.Atty Dela Cruz

A.C. No. 10912. January 9, 2016

PAULINA T. YU, Complainant vs. ATTY. BERLIN R. DELA CRUZ

It appears from the records that respondent lawyer agreed to represent Paulina T. Yu (complainant) in several cases after having received various amounts as acceptance fees. While the lawyer-client relationship was subsisting, respondent lawyer borrowed pieces of jewelry from complainant and pledged the same with the Citystate Savings Bank, Inc. for the amount of P29,945.50, as shown in the Promissory Note with Deed of Pledge. Respondent lawyer appropriated the proceeds of the pledge to his personal use. In order to facilitate the redemption of the said jewelry, respondent lawyer issued to complainant, Citystate Savings Bank Check. Upon presentment, however, complainant was shocked to learn that the check was dishonored for the reason, “Account Closed.” Complainant immediately notified respondent lawyer of the dishonor of the check.

Complainant demanded for the refund of the acceptance fees received by respondent lawyer prior to the “abandonment” of the cases and the payment of the value of the jewelry, but to no avail.

For his failure to heed the repeated demands, a criminal case for violation of Batas Pambansa Blg. 22 was filed with the Office of the City Prosecutor against him.

A verified complaint was filed with the IBP Commission on Bar Discipline (IBP-CBD), where complainant prayed for the disbarment of respondent lawyer on account of grave misconduct, conduct unbecoming of a lawyer and commission of acts in violation of the lawyer’s oath. The IBP-CBD required respondent lawyer to submit his answer to the complaint. Despite having been duly served with a copy of the complaint and the order to file his answer, as shown in a certification issued by the Post Master of the Las PiƱas Central Post Office, respondent still failed to file an answer.

Issue: WON respondent violated CPR?

Held:

The complaint stemmed from the use by respondent lawyer of his client’s property. He had, indeed, come into possession of valuable pieces of jewelry which he presented as security in a contract of pledge. Complainant voluntarily and willingly delivered her jewelry worth P135,000.00 to respondent lawyer who meant to borrow it and pawn it thereafter. This act alone shows respondent lawyer’s blatant disregard of Rule 16.04. Complainant’s acquiescence to the “pawning” of her jewelry becomes immaterial considering that the CPR is clear in that lawyers are proscribed from borrowing money or property from clients, unless the latter’s interests are fully protected by the nature of the case or by independent advice. Here, respondent lawyer’s act of borrowing does not constitute an exception. Respondent lawyer used his client’s jewelry in order to obtain, and then appropriate for himself, the proceeds from the pledge. In so doing, he had abused the trust and confidence reposed upon him by his client. That he might have intended to subsequently pay his client the value of the jewelry is inconsequential. What deserves detestation was the very act of his exercising influence and persuasion over his client in order to gain undue benefits from the latter’s property. The Court has repeatedly emphasized that the relationship between a lawyer and his client is one imbued with trust and confidence. And as true as any natural tendency goes, this “trust and confidence” is prone to abuse. The rule against borrowing of money by a lawyer from his client is intended to prevent the lawyer from taking advantage of his influence over his client. The rule presumes that the client is disadvantaged by the lawyer’s ability to use all the legal maneuverings to renege on his obligation. Suffice it to say, the borrowing of money or property from a client outside the limits laid down in the CPR is an unethical act that warrants sanction.

The Court does not harbor any doubt in favor of respondent lawyer. Obviously, his unfulfilled promise to facilitate the redemption of the jewelry and his act of issuing a worthless check constitute grave violations of the CPR and the lawyer’s oath. These shortcomings on his part have seriously breached the highly fiduciary relationship between lawyers and clients. Specifically, his act of issuing worthless checks patently violated Rule 1.01 of Canon 1 of the CPR which requires that “[a] lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct.” This indicates a lawyer’s unfitness for the trust and confidence reposed on him, shows such lack of personal honesty and good moral character as to render him unworthy of public confidence, and constitutes a ground for disciplinary action, and thus seriously and irreparably tarnishes the image of the profession. Such conduct, while already off-putting when attributed to an ordinary person, is much more abhorrent when exhibited by a member of the Bar. In this case, respondent lawyer turned his back from the promise that he once made upon admission to the Bar. As “vanguards of the law and the legal system, lawyers must at all times conduct themselves, especially in their dealings with their clients and the public at large, with honesty and integrity in a manner beyond reproach.”


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