Case Summary (G.R. No. 149926)
Factual Background
In 2006, Michelle retained Atty. Gille for ₱25,000 to resist foreclosure on her mortgaged property. Subsequently, Gille borrowed ₱300,000 from Michelle, securing the loan with a purported Transfer Certificate of Title (TCT No. N-272977) allegedly covering a ₱20 million, 1,000-sqm lot in Quezon City and a postdated check for August 10, 2006. Upon inquiry at the Register of Deeds, Michelle and her father learned that the title was a forgery. Gille promised repayment first on July 18, 2006, then issued a notarized promissory note and a postdated check dated August 10, 2006, with repayment due September 10, 2006. The check was dishonored for “Account Closed.”
Procedural History
Michelle filed a criminal estafa complaint in Quezon City and an administrative petition for suspension or disbarment before the Supreme Court. Despite several settings, Gille failed to submit an answer or position paper. The Integrated Bar of the Philippines’ (IBP) Investigating Commissioner found him guilty of Gross Misconduct, recommending a two-year suspension and repayment of ₱300,000 with legal interest. The IBP Board of Governors adopted the findings and added an award of interest from the date of demand.
Issue
Whether Atty. Gille is guilty of Gross Misconduct warranting disciplinary sanction.
Applicable Law
1987 Philippine Constitution (post-1990 decisions).
Lawyer’s Oath and Code of Professional Responsibility (CPR):
• Rule 1.01, Canon 1 – prohibiting unlawful, dishonest, immoral, or deceitful conduct.
• Rule 7.03, Canon 7 – upholding professional integrity and prohibiting scandalous behavior.
• Rule 16.04, Canon 16 – proscribing borrowing money from clients unless fully protected.
Rules of Court, Rule 138, Sec. 27 – disbarment or suspension for gross misconduct.
Court’s Analysis on Moral Character Requirement
Admission to the Bar and continued membership demand unimpeachable moral character. Gross misconduct is “improper or wrong conduct … willful in character” reflecting unfitness to practice. The complainant bears the burden of proof by substantial evidence.
Violation of Rule 16.04 (Borrowing from Client)
It is undisputed that Gille borrowed ₱300,000 from Michelle, an act inherently proscribed by Rule 16.04 absent full protection of the client’s interests. Such borrowing exploits the attorney-client relationship and places the client at a disadvantage.
Violation of Rules 1.01 and 7.03 (Dishonesty and Deceit)
Presenting a forged title as collateral and issuing a check against a closed account constitute deceitful, dishonest, and immoral conduct under Rules 1.01 and 7.03. Dishonoring a check and failing repeated demands further demonstrate bad faith and unfitness.
Failure to Comply with IBP Orders
Gille deliberately ignored IBP directives to answer and participate in the investigation. Such defiance violates the Lawyer’s Oath to obey lawful orders and bespeaks disregard for professional discipline.
Findings
Atty. Gille committed Gross Misconduct by:
- Borrowing money from his client in violation of Rule 16.04;
- Presenting a falsified title to secure funds;
- Issuing and allowing to be dishonored a postdated check;
- Refu
Case Syllabus (G.R. No. 149926)
Factual Antecedents
- In 2006, Michelle A. Buenaventura engaged Atty. Dany B. Gille to render legal services for ₱25,000.00, including preparing an adverse claim against a mortgaged property.
- Atty. Gille subsequently borrowed ₱300,000.00 from Michelle, offering as collateral a copy of Transfer Certificate of Title No. N-272977 (alleged 1,000 sqm land in Quezon City worth ₱20 million) and a postdated check dated August 10, 2006.
- Upon inquiry at the Quezon City Register of Deeds, Michelle and her father learned from Atty. Elbert T. Quilala that the TCT was a forgery issued by a syndicate.
- Michelle and her father demanded repayment; Atty. Gille promised payment on July 18, 2006 but failed to comply. He then issued and notarized a promissory note and a postdated check for August 10, 2006, promising payment on September 10, 2006.
- Michelle deposited the check on its due date, but it was dishonored due to “Account Closed.”
- Michelle filed a criminal complaint for estafa against Atty. Gille before the Quezon City Prosecutor and lodged a petition for his suspension or disbarment for deceit and gross immoral conduct under the Lawyer’s Oath and Code of Professional Responsibility (CPR).
- Despite multiple notices, Atty. Gille defaulted in the mandatory IBP conference, failed to submit an answer, and did not file a verified position paper.
Report and Recommendation of the IBP
- The Investigating Commissioner found Atty. Gille liable for Gross Misconduct, citing issuance of a dishonored postdated check and presentation of a fraudulent title to obtain money.
- Recommended penalt