Case Summary (Administrative Case No. 3637)
Factual Allegations
The complainant, Rural Bank of Silay, Inc., filed a disbarment complaint against Atty. Ernesto H. Pilla, alleging that he engaged in deceit and gross misconduct. The complaint centers around a Real Estate Mortgage executed by the respondent on July 23, 1975, wherein he acted as Attorney-in-Fact for the registered owners without their authorization, benefiting from a loan of P91,427.00 based on the purportedly forged documents. It was discovered later that Oscar D. Granada, one of the registered owners, denied executing the Special Power of Attorney that allowed Pilla to mortgage the property, leading to a civil complaint that resulted in a judicial finding of forgery.
Respondent's Defense
In response to the allegations, Atty. Pilla refuted the claims of deceit and misconduct, asserting that he had no knowledge of the forgery. He contended that the complainant bank could have verified the authenticity of the Special Power of Attorney before granting the loan, and thus, he did not misrepresent his capacity as a lawyer. He relied on arguments from the Civil Case No. 1-C decision, claiming he was not directly responsible for the falsification of signatures, despite benefiting from the allegedly false documents.
Investigation and Findings
The Integrated Bar of the Philippines (IBP) investigated the complaints, and the evidence presented solidified the facts that Pilla misrepresented himself in granting a mortgage for the property without proper authorization from the owners. The trial court's ruling that declared the Special Power of Attorney and subsequent Real Estate Mortgage void due to forgery provided substantial grounds for disbarment proceedings against Pilla, marking a severe breach of his duty as an attorney.
Legal Conclusions and Recommendations
The IBP concluded that Atty. Pilla violated his oath as a lawyer to “do no falsehood” and engaged in deceitful conduct, which constituted gross misconduct. The recommendation from the IBP's Commissioner, Julio C. Elamparo, was initially for a five-year suspension. However, the IBP modified this recommendation to a three-year suspension, citing his lack of remorse and failure to rectify his actions, as Pilla did not return the loan amount and did not appeal the adverse judgment against him.
Final Court Decision
The
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Case Background
- The Rural Bank of Silay, Inc. (complainant) initiated a disbarment complaint against Atty. Ernesto H. Pilla (respondent) for allegations of deceit and gross misconduct.
- The case revolves around a Real Estate Mortgage executed by the respondent on July 23, 1975, in favor of the complainant, which was backed by a Special Power of Attorney claiming authorization from registered owners Pedro N. Torres and Oscar D. Granada.
- The complainant extended a loan of P91,427.00 to the respondent based on the purported authorization to mortgage the property.
Allegations Against the Respondent
- The complainant later discovered that Oscar D. Granada denied the validity of the Special Power of Attorney, claiming he did not authorize the mortgage.
- A civil case was filed by Granada, leading to a decision that declared the Special Power of Attorney as forged and the mortgage as null and void.
- The court found the respondent to have benefited from the falsified document, presuming his involvement in its preparation.
Respondent’s Defense
- Atty. Pilla refuted the allegations, claiming he was unaware of the forgery and had acted in good faith.
- He argued that there was no evidence proving he dir