Title
Espiritu vs. Ulep
Case
A.C. No. 5808
Decision Date
May 4, 2005
Atty. Ulep suspended for 6 months for misappropriating client funds and evading hearings, violating fiduciary duty under Canon 16. Ordered to restitute P50,000.

Case Summary (A.C. No. 5808)

Allegations Against the Respondent

On December 22, 1997, Espiritu entrusted Ulep with P50,000 as part of a settlement for Civil Case No. 1028. Additionally, Ulep failed to deliver a balance of P30,000 plus interest related to a deed of absolute sale. Espiritu attempted to seek assistance from the Integrated Bar of the Philippines (IBP) after Ulep allegedly avoided communication and did not respond to demands for repayment.

Proceedings Initiated by the IBP

Due to the respondent's absence at an initial meeting aimed at amicably settling the complaint, the IBP formally endorsed Espiritu’s verified letter-complaint for disciplinary action. Ulep filed a counter-affidavit, asserting that there was no estafa and that the funds were contingent upon the delivery of the owner's copy of the Title, which had not been provided. His affidavit included descriptions of payments made and alleged communications with Espiritu.

Hearings and Evidence Presented

A series of scheduled hearings resulted in Ulep's failure to appear multiple times. This indicated an evasive attitude on his part towards resolving the misconduct complaint. Despite the notifications and opportunities for Ulep to present a defense, he repeatedly requested postponements and eventually failed to provide an adequate answer to the allegations. The IBP Commission decided to proceed with the hearing in Ulep's absence, resulting in Espiritu’s evidence being admitted ex-parte.

Findings and Recommendations by the IBP

After reviewing the evidence, the IBP Investigating Commissioner concluded that Ulep had misappropriated the P50,000 and recommended a six-month suspension from practicing law for violating Canon 16 of the Code of Professional Responsibility. The IBP Board of Governors adopted these findings, determining that Ulep’s actions constituted serious misconduct that undermined client trust.

Conclusion a

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