Title
A-1 Ficial Services, Inc. vs. Valerio
Case
A.C. No. 8390
Decision Date
Jul 2, 2010
Atty. Valerio issued a dishonored check, failed to pay her debt, and disregarded court orders, leading to a two-year suspension for gross misconduct despite claims of schizophrenia.
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Case Digest (A.C. No. 8390)

Facts:

Loan Agreement and Issuance of Check
On November 13, 2001, A-1 Financial Services, Inc., a financing corporation, granted a loan of P50,000.00 to Atty. Laarni N. Valerio. To secure the loan, Atty. Valerio issued a postdated check (Check No. 0000012725) dated April 1, 2002, for the same amount.

Dishonor of Check
When the check was presented for payment on its maturity date, it was dishonored due to insufficient funds. Despite repeated demands, Atty. Valerio failed to pay her obligation.

Criminal Case for Violation of B.P. 22
On November 10, 2003, A-1 Financial Services filed a criminal case against Atty. Valerio for violation of Batas Pambansa Blg. 22 (B.P. 22), docketed as Criminal Case No. 124779. Atty. Valerio failed to appear at her arraignment on August 31, 2004, despite due notice. A warrant of arrest was issued, but she did not post bail.

Administrative Complaint
On January 18, 2006, A-1 Financial Services filed an administrative complaint against Atty. Valerio with the Integrated Bar of the Philippines-Commission on Bar Discipline (IBP-CBD). Atty. Valerio did not file an answer to the complaint. Her mother, Gorgonia N. Valerio, submitted a letter claiming that Atty. Valerio had been diagnosed with schizophrenia and could not respond to the complaint.

IBP Proceedings
Atty. Valerio failed to attend the mandatory conference and did not submit a position paper. The IBP-CBD recommended her suspension from the practice of law for two years, finding her guilty of gross misconduct. The IBP Board of Governors modified the penalty to one year of suspension.

Supreme Court Proceedings
The Supreme Court directed Atty. Valerio to submit a notarized medical certificate to support her claim of schizophrenia. However, no such documents were submitted.

Issue:

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Ruling:

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Ratio:

  1. Gross Misconduct
    The deliberate failure to pay just debts and the issuance of worthless checks constitute gross misconduct. Lawyers are expected to uphold the law and maintain high standards of morality, honesty, and integrity. Atty. Valerio's actions violated Canon 1 and Rule 1.01 of the Code of Professional Responsibility, which require lawyers to obey the law and avoid dishonest or deceitful conduct.

  2. Schizophrenia as a Defense
    The Court rejected the claim that Atty. Valerio's alleged schizophrenia excused her from liability. Her mother failed to substantiate the claim with proper medical evidence, and Atty. Valerio did not cooperate in the proceedings.

  3. Disregard for Court and IBP Orders
    Atty. Valerio's failure to answer the complaint, attend hearings, and comply with court orders demonstrated a lack of respect for authority and the legal process. This conduct violated her oath as a lawyer and the Code of Professional Responsibility.

  4. Penalty
    The Court imposed a two-year suspension, considering her issuance of a worthless check, failure to pay her debt, and disregard for court and IBP orders. The penalty serves as a warning against similar misconduct in the future.


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