Case Digest (A.C. No. 4515)
Facts:
Cecilia A. Agno v. Atty. Marciano J. Cagatan, A.C. No. 4515, July 14, 2008, the Supreme Court En Banc, Leonardo‑De Castro, J., writing for the Court.Complainant Cecilia A. Agno filed a complaint for disbarment against respondent Atty. Marciano J. Cagatan alleging that respondent, then President of International Services Recruitment Corporation (ISRC), used fraud, deceit and misrepresentation to induce her husband, Mr. Khalifa H. Juma, to invest P500,000 in ISRC and later issued a dishonored bank check for that amount. The factual backdrop includes: DOLE cancelled ISRC’s recruitment license on July 12, 1988 and the company was banned on August 9, 1988; respondent appealed the cancellation to the Office of the President on September 19, 1988, and that appeal was resolved in respondent’s favor on March 30, 1993, directing renewal of ISRC’s license subject to a higher guarantee bond.
During the pendency of that appeal, on August 9, 1992 respondent executed a Memorandum of Agreement (MOA) with Khalifa providing for a 50–50 joint ownership arrangement and stipulating that Khalifa would pay P250,000 for reinstatement of ISRC’s license and another P250,000 to start operations. The MOA named complainant as Treasurer. ISRC’s license had already expired on September 17, 1989; ISRC applied for renewal with the POEA on April 12, 1994.
Complainant filed the disbarment complaint on December 26, 1995, alleging that respondent misused the P500,000, failed to effect the promised changes in ISRC’s corporate records with the Securities and Exchange Commission (SEC), and that a P500,000 check dated March 30, 1994 issued by respondent was dishonored for being drawn on a closed account. Respondent denied fraud, asserted he used the funds to reimburse loans to pursue the appeal, and presented a Deed of Assignment dated April 26, 1993 as proof he had assigned shares to the complainant and her husband.
The Supreme Court referred the complaint to the Integrated Bar of the Philippines (IBP) Commission on Bar Discipline (CBD) for investigation (Resolution dated May 22, 1996). Commissioner Milagros V. San Juan conducted hearings and later submitted a Report and Recommendation (Oct. 12, 2004) finding lack of candor and recommending suspension and restitution. The IBP Board of Governors adopted the recommendation with modification and, by Resolution No. XVII‑2005‑102 (Oct. 22, 2005), suspended respondent for two years and ordered restitution; the IBP transmitted the records to the Court on November 24, 2005. Respondent’s motions for reconsideration and for reinvestigation were filed with the IBP and the Court; the IBP Board denied reconsideration (Jan. 28, 2006) citing lack of ju...(Pro-only)
Issues:
- Does Cecilia A. Agno have legal personality (standing) to institute a disbarment proceeding against Atty. Marciano J. Cagatan?
- Did respondent employ fraud, deceit or misrepresentation in procuring P500,000 from complainant and her husband under the MOA?
- Did respondent’s issuance of a dishonored check constitute gross misconduct warranting discipline?
- What is the appropriate penalty and re...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)