Title
Spouses San Pedro vs. Mendoza
Case
A.C. No. 5440
Decision Date
Dec 10, 2014
Spouses engaged Atty. Mendoza to transfer property title, paid fees, but he failed to deliver. SC ruled he violated fiduciary duty, suspended him, and ordered refund.

Case Summary (G.R. No. L-26959)

Background of the Case

On November 21, 1996, the complainants engaged Atty. Mendoza to facilitate the transfer of a property title from Isabel Azcarraga Marcaida to themselves. They provided him with a total of P68,250.00 to cover transfer taxes and an additional P13,800.00 as his professional fee. Despite the financial considerations and repeated follow-ups from the complainants, Atty. Mendoza failed to deliver the property title or return the funds for the transfer taxes.

Complainants' Actions

Frustrated by the lack of progress, the complainants referred the matter to the barangay and eventually sought a certificate to file an action. They repeatedly demanded the return of the funds paid for the transfer taxes, with Atty. Mendoza responding at various points with promises that remained unfulfilled. Ultimately, the complainants had to borrow money to secure the title transfer themselves.

Respondent's Defense

In his defense, Atty. Mendoza contended that the delays were caused by the complainants' failure to provide necessary documents. He maintained that the minimal payment of P13,800.00 did not reflect the extensive work he allegedly performed on their behalf. Atty. Mendoza also claimed entitlement to retain the money due to outstanding fees for legal services rendered in other cases involving the complainants.

Investigative Findings

The complaint was forwarded to the Integrated Bar of the Philippines (IBP) for investigation. The investigating commissioner determined that Atty. Mendoza had violated Canon 16 and its associated rules by failing to account for the funds entrusted to him, as evidenced by the encashment of the complainants' checks without delivering the promised services.

Disciplinary Recommendations

The investigating commissioner recommended censure and warning following the findings, which the IBP Board of Governors later modified to a three-month suspension from legal practice and the requirement to return the funds. The Board found that the evidence substantiated the complaints against Atty. Mendoza, particularly his failure to act in accordance with the fiduciary duties imposed on him by the Code of Professional Responsibility.

Denial of Reconsideration

Following Atty. Mendoza's motion for reconsideration of the suspension, the IBP Board of Governors unanimously denied the motion, citing no compelling reasons to overturn the findings of the investigating commissioner.

Supreme Court Decision and Ruling

The Supreme Court affirmed the IBP's resolution, emphasizing the high standards of legal ethics and responsibility expected of p

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