Title
Supreme Court
Sosa vs. Mendoza
Case
A.C. No. 8776
Decision Date
Mar 23, 2015
Atty. Mendoza failed to repay a PHP 500,000 loan, issued a dishonored check, and ignored demands, violating professional ethics. The Supreme Court suspended him for one year for gross misconduct, emphasizing lawyers' high moral standards, but declined to order repayment, as it was an administrative case.

Case Summary (G.R. No. 182819)

Key Dates

• July 28, 2006 – Loan of ₱500,000 extended by Ms. Sosa to Atty. Mendoza, interest set at ₱25,000, due September 25, 2006.
• October 2006 – Postdated check for ₱500,000 dishonored for “Drawn Against Insufficient Funds.”
• January 11, 2010 – Demand letter sent by Atty. Cabrera on behalf of Ms. Sosa; respondent failed to reply.
• October 22, 2010 – Complaint for disbarment/suspension filed with the Supreme Court.
• April 18, 2012 – Supreme Court resolution referring the case to the IBP for investigation.
• August 16, 2012 – Mandatory conference before IBP Investigating Commissioner; respondent appeared late.
• May 11, 2013 – IBP Board of Governors resolved to suspend Atty. Mendoza for six months and to order repayment with legal interest.
• December 10, 2013 – IBP Director for Bar Discipline transmitted resolution and records to the Supreme Court.
• March 23, 2015 – Supreme Court decision rendered.

Applicable Law

• 1987 Constitution as the controlling charter.
• Code of Professional Responsibility, Rule 1.01: “A lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct.”
• Jurisprudence on gross misconduct and disciplinary sanctions (e.g., Yuhico v. Atty. Gutierrez).

Factual Background

Ms. Sosa extended a loan of ₱500,000 to Atty. Mendoza evidenced by a promissory note and postdated check. The parties agreed on a ₱25,000 interest and a 10% monthly penalty for default. Atty. Mendoza failed to pay by the due date; upon demand he requested postponement of the check deposit, promising eventual payment. When Ms. Sosa deposited the check in October 2006, it was dishonored for insufficient funds. Subsequent demands, including a formal letter by Atty. Ernesto V. Cabrera in January 2010, went unanswered.

Procedural History

Upon filing of the disbarment/suspension complaint in October 2010, the Supreme Court required respondent’s comment. Atty. Mendoza sought and obtained extensions, ultimately filing a brief in January 2012, wherein he admitted the loan’s validity but contested the full amount, claiming he received only ₱100,000—an assertion unsupported by evidence. In April 2012, the matter was referred to the IBP for fact-finding. At the IBP hearing in August 2012, respondent admitted validity of the obligation, presence of ₱600,000 in hand, and an obligation to pay, but failed to settle.

IBP Findings and Recommendation

The Investigating Commissioner concluded that Atty. Mendoza was liable for gross misconduct, both administratively and civilly, finding his failure to pay a just debt willful and deceitful. The IBP Board of Governors, in a May 11, 2013 resolution, suspended respondent from practice for six months and ordered him to return ₱500,000 with legal interest.

Supreme Court Analysis

The Court affirmed that under Rule 1.01 and settled jurisprudence, deliberate nonpayment of a just debt constitutes gross misconduct, warranting disciplinary action regardless

...continue reading

Analyze Cases Smarter, Faster
Jur is a legal research platform serving the Philippines with case digests and jurisprudence resources. AI digests are study aids only—use responsibly.