Title
Agno vs. Cagatan
Case
A.C. No. 4515
Decision Date
Jul 14, 2008
A lawyer is suspended from practicing law for one year and one month and ordered to restitute a sum of money to a complainant after being found guilty of fraud, deceit, misrepresentation, and issuing a worthless check in a case involving a failed business venture and violation of the Code of Professional Responsibility.
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Case Digest (A.C. No. 4515)

Facts:

  • Cecilia A. Agno filed a disbarment complaint against Atty. Marciano J. Cagatan.
  • Atty. Cagatan was the President of International Services Recruitment Corporation (ISRC), a recruitment agency for overseas employment.
  • On July 12, 1988, the Department of Labor and Employment (DOLE) canceled ISRC's recruitment license for labor law violations.
  • ISRC was permanently banned from overseas recruitment on August 9, 1988.
  • Atty. Cagatan appealed the cancellation to the Office of the President, which ruled in his favor on March 30, 1993, for license renewal subject to a guarantee bond.
  • During the appeal, on August 9, 1992, Atty. Cagatan entered into a Memorandum of Agreement with Khalifa H. Juma, a UAE national and husband of Cecilia Agno, for joint ownership and operation of ISRC.
  • Khalifa agreed to invest P500,000.00, with P250,000.00 for reinstating ISRC's license and P250,000.00 for business operations.
  • Cecilia Agno discovered that Atty. Cagatan did not comply with the agreement and misused the P500,000.00.
  • When Agno demanded the return of the money, Atty. Cagatan issued a check that was dishonored due to a closed account.
  • This led to a criminal charge under Batas Pambansa Blg. 22 and a disbarment complaint.
  • The Integrated Bar of the Philippines (IBP) recommended a two-year suspension and restitution of the money.
  • The Supreme Court modified the penalty to a suspension of one year and one month and ordered restitution.

Issue:

  • (Unlock)

Ruling:

  1. Yes, Atty. Marciano J. Cagatan employed fraud, deceit, and misrepresentation in his dealings with Cecilia A. Agno and her husband.
  2. Yes, Atty. Cagatan violated the...(Unlock)

Ratio:

  • The Supreme Court found that Atty. Marciano J. Cagatan employed fraud, deceit, and misrepresentation in his dealings with Cecilia A. Agno and Khalifa H. Juma.
  • The Memorandum of Agreement stipulated that the P500,000.00 investment was for reinstating ISRC's license and starting business operations.
  • Atty. Cagatan failed to comply with these terms and did not disclose the true state of ISRC's affairs, including additional requirements for license reinstatement.
  • Issuing a check drawn against a closed account demonstrated ...continue reading

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