The Supreme Court’s decision in Lazareto v. Acorda underscores the high ethical standards required of lawyers in the Philippines. The Court reversed the IBP’s dismissal of the case, finding Atty. Acorda guilty of negligence and dishonesty in handling a client’s estate settlement. This ruling reinforces the principle that lawyers must act with competence, diligence, and utmost good faith, and that breaches of these duties will be met with disciplinary action, regardless of a client’s subsequent desistance.

A Broken Trust: When Legal Counsel Turns to Neglect and Deceit

This case revolves around Dominic Paul D. Lazareto’s complaint against Atty. Dennis N. Acorda for violations of the Code of Professional Responsibility. Lazareto, representing his family, engaged Acorda to handle the extrajudicial settlement of their deceased father’s estate. The agreed deadline was May 26, 2004, aiming for a P100,000 estate tax deduction. They also sought the transfer of land titles to Lazareto’s mother. Lazareto paid Acorda acceptance fees and initial deposits totaling P120,000, entrusting him with original land titles. However, Acorda allegedly neglected the case, failed to meet deadlines, and eventually admitted to losing one of the original land titles.

Further complicating matters, Lazareto discovered a falsified deed of sale purportedly signed by his deceased father and a questionable publication notice for the extrajudicial settlement. Despite these serious allegations, the IBP initially dismissed the case based on Lazareto’s affidavit of desistance and Acorda’s claim of rectifying the issues. The Supreme Court, however, overturned this dismissal, emphasizing the gravity of Acorda’s misconduct and its implications for the legal profession’s integrity. This decision highlights the importance of holding attorneys accountable for their actions, regardless of a client’s willingness to forgive or compromise.

The Supreme Court found that Atty. Acorda’s actions constituted a clear violation of the Code of Professional Responsibility. The Court stated:

We refer particularly to Lazareto’s discovery of a misrepresentation committed by respondent in relation to the amicable settlement proposed by respondent’s lawyer, Atty. Policarpio, where Atty. Policarpio assured him that respondent had already filed the extrajudicial settlement papers with the Manila Register of Deeds.

The court emphasized that the filing of a fake deed of sale and a bogus publication demonstrated a clear intent to deceive, violating Canon 1, Rule 1.01 of the Code, which states: “A lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct.” This dishonesty, coupled with the neglect of the client’s affairs, warranted disciplinary action to protect the public and uphold the integrity of the legal profession.

The Court criticized the IBP’s initial dismissal, asserting that it “misappreciated the gravity and the scope of the respondent’s breach of his contractual obligation with Lazareto and his family.” Even with Lazareto’s desistance, the Court emphasized the broader implications for the legal profession:

We say this notwithstanding the layman Lazareto’s desistance, as the respondent’s action was a transgression not only of what is due Lazareto as a client but also of the profession and the nation that expect its lawyers to live up to the highest standards of performance in this noble profession.

The Court’s decision also addressed the issue of negligence, citing Rule 18.03 of the Code of Professional Responsibility, which states: “A lawyer shall not neglect a legal matter entrusted to him, and his negligence in connection therewith shall render him liable.” Acorda’s failure to diligently pursue the extrajudicial settlement, coupled with the loss of the land title and the misrepresentation regarding the filing of documents, demonstrated a clear breach of this duty. The Court found Acorda’s excuses – blaming an absconding employee and citing the client’s impatience – insufficient to justify his failure to fulfill his obligations.

The Supreme Court also addressed the importance of truthfulness and fair play in the legal profession, noting that every lawyer should act with the highest standards of these virtues. As the court stated:

Further, the ethics of the legal profession rightly enjoins every lawyer to act with the highest standards of truthfulness, fair play, and nobility in the course of his practice of law. Stated differently, any member of the legal fraternity should do nothing that would lessen in any degree the confidence of the public in the fidelity, honesty, and integrity of the legal profession.

The Court’s decision sends a strong message to the legal community that ethical lapses will not be tolerated, regardless of whether the client pursues the case. The suspension imposed on Atty. Acorda serves as a deterrent and a reminder that lawyers must prioritize their clients’ interests and uphold the highest standards of professional conduct.

Ultimately, the Supreme Court SET ASIDE the IBP’s Resolution No. XX-2012-196, dated June 9, 2012, and ORDERED Atty. Dennis N. Acorda suspended from the practice of law for three (3) years. The Court also WARNED him that any similar actions in the future would be dealt with more severely.

FAQs

What was the key issue in this case?	The key issue was whether Atty. Acorda violated the Code of Professional Responsibility through negligence and dishonesty in handling the extrajudicial settlement of his client’s father’s estate. The Supreme Court ultimately found that he did.
What specific violations was Atty. Acorda found to have committed?	Atty. Acorda was found to have violated Canon 1, Rule 1.01 (dishonest conduct) and Rule 18.03 (neglect of legal matter) of the Code of Professional Responsibility. These violations stemmed from his failure to diligently handle the case, misrepresentations regarding the filing of documents, and the filing of a falsified deed of sale.
Why did the Supreme Court reverse the IBP’s decision?	The Supreme Court reversed the IBP’s decision because it found that the IBP had misappreciated the gravity and scope of Atty. Acorda’s misconduct. The Court believed that the IBP had placed too much weight on the client’s affidavit of desistance and had failed to adequately address the serious ethical violations committed by Acorda.
What is an affidavit of desistance and what effect did it have on the case?	An affidavit of desistance is a statement by a complainant that they no longer wish to pursue a case. While Lazareto submitted an affidavit of desistance, the Supreme Court ruled that this did not absolve Atty. Acorda of his ethical violations, as the case involved not only a breach of duty to the client but also a transgression against the legal profession.
What was the significance of the falsified deed of sale?	The falsified deed of sale, purportedly signed by Lazareto’s deceased father, was a key piece of evidence demonstrating Atty. Acorda’s dishonesty. It suggested an attempt to cover up his neglect by creating the false impression that he had taken action on the case.
What penalty did Atty. Acorda receive?	Atty. Acorda was suspended from the practice of law for three years, starting from the date he formally notifies the Court of his receipt of the decision. The Court also warned him that future similar misconduct would be met with more severe penalties.
What lesson does this case offer for clients dealing with lawyers?	This case underscores the importance of regular communication with your lawyer, diligent follow-up on the progress of your case, and careful review of all documents submitted on your behalf. If you suspect negligence or dishonesty, you have the right to file a complaint with the Integrated Bar of the Philippines.
What does this case say about a lawyer’s duty to the legal profession?	This case emphasizes that lawyers have a duty not only to their clients but also to the legal profession as a whole. They must uphold the highest standards of honesty, integrity, and competence to maintain public trust and confidence in the legal system.

The Lazareto v. Acorda case serves as a critical reminder of the ethical obligations that all lawyers must uphold. It reinforces the principle that competence, diligence, and honesty are not merely aspirational goals but essential requirements for maintaining the integrity of the legal profession and serving the public interest. The Supreme Court’s decision underscores the importance of accountability and serves as a warning to those who would compromise their ethical duties for personal gain.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: DOMINIC PAUL D. LAZARETO VS. ATTY. DENNIS N. ACORDA, A.C. No. 9603, June 16, 2015