A.C. No. 8010 - Stemmerick vs. Mas

Case Summary (A.C. No. 8010)

Factual Background

On a visit to the Philippines, complainant Keld Stemmerik met respondent Atty. Leonuel N. Mas and expressed interest in acquiring real property in the Philippines. Respondent advised complainant that a foreigner could legally acquire and own the proposed property and suggested an 86,998 sq.m. parcel in Quarry, Agusuin, Cawag, Subic, Zambales, assuring that the property was alienable. Complainant agreed to purchase the property through respondent as his representative and attorney-in-fact and entrusted respondent with processing the necessary documents while he returned to Denmark.

Documents Prepared and Payments

Respondent prepared a contract to sell purportedly between complainant, represented by respondent, and one Bonifacio de Mesa. Respondent notarized a deed of sale wherein de Mesa allegedly sold the property to Ailyn Gonzales for P3.8 million, and he drafted and notarized an agreement in which Gonzales purportedly acknowledged complainant as the source of funds. Respondent demanded and received a P400,000 fee for his services and accepted P3.8 million from complainant as the purchase price, issuing an acknowledgment receipt.

Discovery and Investigation

After respondent became unavailable and ceased answering calls and e-mails, complainant returned to the Philippines in January 2005 and engaged the Jimenez Gonzales Liwanag Bello Valdez Caluya & Fernandez Law Office to ascertain the status of the property. That firm advised complainant that aliens could not own land under Philippine law and that the parcel was inalienable because it lay within the former US Military Reservation. The CENRO of the Department of Environment and Natural Resources in Olongapo City certified that the property was not subject to disposition or acquisition under Republic Act No. 141.

Proceedings Before the Commission on Bar Discipline

Complainant filed a complaint for disbarment with the Commission on Bar Discipline (CBD) of the Integrated Bar of the Philippines alleging serious misconduct, misrepresentation regarding land ownership by a foreigner, preparation of spurious documents, and misappropriation of P3.8 million. Respondent failed to file an answer or a position paper and did not appear at the mandatory conference despite service at his last known office address. The CBD found that respondent had abandoned his law practice in Olongapo City, did not contest the charges, misled complainant, prepared falsified and fictitious contracts, and pocketed the P400,000 fee and P3.8 million. The CBD described respondent as “nothing more than an embezzler” and recommended disbarment.

Board of Governors’ Action

The Board of Governors of the Integrated Bar of the Philippines adopted the CBD’s findings and recommendation, with the modification that respondent be required to return the amount of P4.2 million to complainant. The modification and recommendation were transmitted to the Court for appropriate action.

Sufficiency of Notice

The Court addressed the threshold question whether respondent received sufficient notice of the disbarment proceedings. The Court held that service of the complaint and other processes at respondent’s last known office constituted sufficient notice because respondent had abandoned that address and rendered personal service impossible. The Court applied the maxim nemo tenetur ad impossibile and declined to permit respondent to benefit from his concealment. The Court reiterated the obligation of lawyers to update their records with the IBP and cited the IBP By-Laws provision requiring notification of changes in office or residence within sixty days.

Violations of Law and Ethical Rules

The Court found that respondent had committed a grave breach of his oath as a lawyer and multiple violations of the Code of Professional Responsibility. By advising complainant that a foreigner could legally acquire land, preparing spurious notarized instruments, and facilitating a chain of documents that masked a fictitious sale, respondent contravened Section 7, Article XII of the Constitution and showed gross ignorance of and disrespect for fundamental constitutional policy as articulated in Krivenko v. Register of Deeds and related authorities. The preparation of fraudulent instruments implicated violations of the Anti-Dummy Law, Commonwealth Act No. 108, as amended by Presidential Decree No. 715. The Court identified transgressions of Canon 1, Rule 1.01, Rule 1.02, Canons 7, 15, 16, and 17, noting respondent’s deceit, counsel to unlawful activity, failure to hold client funds in trust, and betrayal of trust and confidence.

Legal Basis and Reasoning

The Court reasoned that respondent’s conduct demonstrated deliberate deception, misuse of his professional status, and criminality in the misappropriation of client funds. The integrity of the bar required strict enforcement of disciplinary rules; lawyers who employed nefarious schemes to evade constitutional prohibitions and enrich themselves at the expense of clients posed a clear danger to the rule of law. The Court held that respondent’s disappearance did not absolve him from administrative or criminal accountability and that the record supported the CBD’s factual findings and recommended sanction.

Ruling and Orders

The Court ordered the disbarment of Atty. Leonuel N. Mas and directed the Clerk of Court to strike his name from the Roll of Attorneys. The Court further ordered respondent to return to Ke

Case Syllabus (A.C. No. 8010)

Parties and Procedural Posture

Keld Stemmerik, represented by Attys. Herminio A. Liwanag and Winston P.L. Esguerra, Complainant was a Danish citizen who engaged respondent to acquire Philippine real property.
Atty. Leonuel N. Mas, Respondent was a member of the bar whose office and residency in Olongapo City were later abandoned.
Complainant filed a complaint for disbarment with the Commission on Bar Discipline (CBD) of the Integrated Bar of the Philippines (IBP) alleging serious misconduct and misappropriation of funds.
The CBD issued a Report and Recommendation finding respondent guilty and recommending disbarment, and the Board of Governors of the IBP adopted the recommendation with modification requiring return of P4.2 million.
The case reached the Court en banc which reviewed the administrative record, the CBD findings, and the IBP Board resolution.

Key Factual Allegations

Complainant expressed interest in purchasing an 86,998 sq.m. property in Quarry, Agusuin, Cawag, Subic, Zambales, and consulted respondent as his representative and attorney-in-fact.
Respondent demanded and received P400,000 as professional fees and later received P3.8 million as the purchase price which he acknowledged by receipt.
Respondent prepared and notarized a contract to sell allegedly between complainant, represented by respondent, and Bonifacio de Mesa, the purported owner.
Respondent prepared and notarized a subsequent deed of sale transferring the property from de Mesa to Ailyn Gonzales for P3.8 million and drafted an agreement showing complainant as the source of funds.
Respondent became uncontactable, abandoned his law office, and refused to respond to calls and e-mails after receipt of funds.
Investigation revealed that aliens could not lawfully own private land under the Constitution and that the subject property was inalienable because it was within the former US Military Reservation, as certified by the Community Environment & Natural Resources Office (CENRO).

Procedural Findings Below

The CBD found respondent abandoned his law practice and failed to contest the charges after proper notice at his last known address.
The CBD found that respondent prepared falsified and fictitious contracts and deeds and that he misled complainant regarding alienability of the land.
The CBD characterized respondent as having embezzled complainant's funds and recommended disbarment.
The Board of Governors of the IBP adopted the recommendation and required respondent to return P4.2 million.

Notice and Service of Process

The Court held that service of the complaint and orders at respondent's last known office constituted sufficient notice because respondent abandoned that address and rendered personal service impossible.
The Court applied the principle Nemo tenetur ad impossibile to decline imposing an impossible notice requirement on the IBP and the Court.
The Court instructed that lawyers must update their records with the IBP under the relevant portion of Section 19, Article II of the IBP By-Laws to ensure future service.

Legal and Constitutional Framework

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