Title
Ojales vs. Villahermosa III
Case
A.C. No. 10243
Decision Date
Oct 2, 2017
A lawyer failed to process a land title, misappropriated fees, and ignored disciplinary proceedings, leading to a six-month suspension and refund order.

Case Summary (G.R. No. 233127)

Allegations and Initial Complaint

On July 15, 2011, Myrna Ojales filed a complaint against Atty. Villahermosa with the Integrated Bar of the Philippines (IBP). Ojales alleges that on February 26, 2010, she purchased a parcel of land and relied on Villahermosa to facilitate the issuance of the corresponding title. She paid a total of P21,280.00—comprising a processing fee and capital gains tax—as evidenced by receipts signed by the respondent. However, after several months, Ojales discovered that necessary documents were not submitted to the Bureau of Internal Revenue (BIR).

Respondent’s Inaction

Despite assurances from Villahermosa regarding the timely processing of her property title, Ojales learned after multiple inquiries to the BIR that no documentation or payments had been made on her behalf. Efforts to retrieve a claim slip from Villahermosa were unsuccessful, leading Ojales to request a refund of the amounts paid. Her demands were ignored, leading her to file an administrative complaint seeking both a refund and disciplinary action against Villahermosa.

Proceedings Before the IBP

On July 18, 2011, the IBP directed Villahermosa to respond to the complaint, but he failed to submit an answer. A notice for a mandatory conference was sent, and while Ojales attended, Villahermosa did not, resulting in him being declared in default. The Investigating Commissioner noted Villahermosa's lack of participation as an indication of disrespect for judicial authority and a disregard for the legal obligations owed to his client.

Findings of the Investigating Commissioner

The Investigating Commissioner reported on June 1, 2012, confirming that Villahermosa had accepted funds related to the legal matter and had obligations that he failed to fulfill, establishing an attorney-client relationship. His failure to process the capital gains tax and the title transfer constituted a misuse of client funds. The Commissioner recommended a six-month suspension and an order for Villahermosa to refund the amount he received.

IBP Board of Governors Resolution

On March 20, 2013, the IBP Board of Governors adopted the Investigating Commissioner's recommendation, emphasizing Villahermosa’s failure to execute his obligations and his disregard for the IBP’s authority. The resolution mandated him to refund P21,280.00 to Ojales.

Court’s Ruling

The Court ratified the IBP's findings, underlining Villahermosa's role in notarizing the transaction and the financial duty he neglected. The Court concluded that Villahermosa violated Canon 16 and Canon 18 of the Code of

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