Title
Spouses Navarro vs. Ygona
Case
A.C. No. 8450
Decision Date
Jul 26, 2017
Spouses Navarro accused Atty. YgoAa of negligence in notarizing a disputed Deed of Absolute Sale, alleging forgery. The Supreme Court revoked his notarial commission for gross negligence but declined to suspend him from law practice.

Case Digest (A.C. No. 8450)
Expanded Legal Reasoning Model

Facts:

  • Parties Involved
    • Complainants: Spouses Felix and Fe Navarro, owners of a parcel of land in Barrio Panadtaran, San Fernando, Cebu, covered by Tax Declaration No. 0137-7148.
    • Respondents:
      • Atty. Margarito G. YgoAa, the notary public who notarized key documents.
      • Mercy Grauel, the lender who provided the loan and proposed the security arrangements.
  • Transactional Background and Documents Executed
    • Loan Agreement and Collateral
      • In November 2002, the Spouses Navarro obtained a loan of P300,000.00 from Mercy Grauel.
      • As collateral, the following were executed and signed on November 22, 2002:
        • A Promissory Note.
ii. A Real Estate Mortgage over the subject property.
  • Additional Security Measure
    • Mercy Grauel proposed the execution of a Deed of Absolute Sale, which the Spouses Navarro reportedly agreed to, to serve as an additional security measure should they default on the loan.
  • Notarization Details
    • The Real Estate Mortgage was notarized on November 22, 2002, by Atty. YgoAa.
    • The Deed of Absolute Sale, although allegedly signed on November 22, 2002, was notarized later on October 22, 2004.
  • Subsequent Developments and Demands for Payment
    • Non-Payment and Subsequent Demands
      • Mercy Grauel repeatedly demanded payment from the Spouses Navarro with no success in receiving a response.
      • Due to the Spouses Navarro’s inability to pay, Grauel later proposed that the subject property be conveyed to her as satisfaction of the loan.
    • Registration Issues
      • Grauel admitted to forgetting to register the Real Estate Mortgage initially.
      • In March 2004, after filing for registration and paying the required fees, the Office of the Register of Deeds failed to register the mortgage, allegedly due to inaction.
  • Involvement of Atty. YgoAa and the Notarization Controversy
    • Communication and Notarization by Atty. YgoAa
      • On instructions from Grauel, Atty. YgoAa sent a letter to the Spouses Navarro on September 24, 2004 demanding payment.
      • Following this, on October 22, 2004, Atty. YgoAa notarized the Deed of Absolute Sale which subsequently transferred the tax declaration of the subject property to Grauel’s name.
    • Allegations by the Spouses Navarro
      • The Spouses Navarro filed an adverse claim to restore their rights over the property upon learning that Grauel had initiated a civil case for Quieting of Title.
      • They further filed a criminal complaint against Grauel and Atty. YgoAa for Estafa through Falsification of Public Document and an administrative case against Atty. YgoAa.
      • Their contention included allegations that the Deed of Absolute Sale was fictitious, that they had been induced to sign hastily under financial duress, and that their signatures were forged.
      • They pointed out irregularities such as discrepancies in the Community Tax Certificates (CTCs) used in both the body and the acknowledgment portion of the Deed.
  • Proceedings and Submissions
    • Evidence Regarding Notarial Practice
      • A Certification from the Office of the Clerk of Court (Notarial Section) of the Regional Trial Court of Cebu confirmed that Atty. YgoAa’s 2004 notarial report did not include the subject Deed of Absolute Sale.
      • Atty. YgoAa maintained that, at the time of notarization, the document contained all its material parts and that the Spouses Navarro executed the document freely and voluntarily.
    • Pre-Trial Conferences and Pleadings
      • Multiple conferences were held (notably on August 13, 2010, and November 19, 2010) where the parties appeared and agreed to limit stipulations and admissions to the pleadings already filed.
      • The case was eventually deemed submitted for decision.
  • Administrative and Disciplinary Proceedings
    • Report and Recommendation by Commissioner Andres
      • On June 10, 2013, Commissioner Mario V. Andres rendered a Report and Recommendation finding Atty. YgoAa liable for failing to exercise due diligence in his notarial functions, particularly for notarizing the Deed of Absolute Sale without recognizing indications of a possible pactum commissorium.
      • The recommended sanction was the revocation of Atty. YgoAa’s notarial commission (if it still existed), a two-year disqualification from being commissioned as notary public, and a suspension from the practice of law for three to six months.
    • IBP Board of Governors’ Resolution
      • On August 9, 2014, the IBP Board of Governors adopted the Report and Recommendation, immediately revoking Atty. YgoAa’s notarial commission, disqualifying him for two years, and suspending him from legal practice for three months.
    • Motions for Reconsideration
      • Atty. YgoAa filed a Motion for Reconsideration on February 25, 2016, which was denied.
      • A second motion was also denied on August 26, 2016, on procedural and substantive grounds.
  • Final Decision by the Court
    • Affirmation and Modification of the IBP Resolution
      • The Court affirmed Atty. YgoAa’s administrative liability but modified the penalty imposed.
      • While agreeing with the revocation of his notarial commission and his disqualification for two years, the Court disagreed with the imposition of suspension from the practice of law.
    • Considerations in the Court’s Decision
      • The Court noted that issues regarding whether the Deed of Absolute Sale was in the nature of a pactum commissorium or whether it was forged were matters for separate civil or criminal actions.
      • The Court further remarked on the seriousness of an officer’s notarial duty—the need to ensure that notarized documents are reliable and free from irregularities—and underscored the public interest vested in notarization.

Issues:

  • Whether Atty. YgoAa exercised utmost diligence in performing his notarial functions when notarizing the Deed of Absolute Sale.
    • Did the notarial act meet the standards required to preserve public confidence in notarized documents?
    • Should Atty. YgoAa have identified and acted upon the apparent irregularities (e.g., discrepancies in the CTCs) that cast doubt on the authenticity of the Spouses Navarro’s appearance and signatures?
  • Whether the document notarized by Atty. YgoAa (i.e., the Deed of Absolute Sale) bears the characteristics of a pactum commissorium, and if its notarization was improper under the Rules on Notarial Practice.
    • Is the issue of a possible pactum commissorium properly a matter for civil adjudication rather than administrative discipline?
  • The appropriateness and proportionality of imposing the penalties recommended by Commissioner Andres and adopted by the IBP Board of Governors.
    • Should Atty. YgoAa be subject to both the revocation of his notarial commission and suspension from the practice of law, or is a modified sanction more fitting given the context and prior proceedings?
  • The evidentiary reliability and procedural regularity in notarizing documents that transform private acts into public acts, especially in view of the public’s reliance on notarized documents without further proof of authenticity.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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