The Supreme Court ruled that Atty. Leonardo M. Real violated the Code of Professional Responsibility by neglecting his client’s legal matter and misappropriating funds. As a result, the Court suspended him from the practice of law for six months and ordered him to return the misappropriated funds with interest. This decision underscores the high ethical standards expected of lawyers in the Philippines, emphasizing their duty to serve clients with competence, diligence, and utmost fidelity. The ruling serves as a warning that failure to uphold these standards can result in severe disciplinary actions.

A Broken Promise: Did Atty. Real Betray His Client’s Trust?

This case revolves around Patrick R. Fabie’s complaint against Atty. Leonardo M. Real for alleged professional misconduct. Fabie claims he engaged Real to facilitate the transfer of property ownership to his sister, providing the necessary documents and P40,000 for expenses and professional fees. However, after a year without progress, Fabie demanded the return of his money and documents, leading to this disbarment case when Real failed to comply.

Real, in his defense, claimed that the documents and money were for settling the estate of Fabie’s late father, not for the property transfer. He further alleged that the heirs later took back the items, presenting an acknowledgment receipt as proof. The central legal question is whether Atty. Real breached his duties to his client, violating the Code of Professional Responsibility, and whether the evidence supports Fabie’s claim of neglect and misappropriation.

The Supreme Court meticulously examined the evidence presented by both parties. A critical point was the discrepancy in the Transfer Certificate of Title (TCT) numbers. Fabie asserted that the TCT number on the acknowledgment receipt was a typographical error, while Real argued it invalidated Fabie’s claim. The Court, however, found Fabie’s explanation plausible, noting that Real was also in possession of a photocopy of the other TCT, making a mix-up by Real’s secretary possible. This was supported by the Investigating Commissioner who stated that:

The undersigned likewise notes that the [Respondent had apparently perpetrated the odious act of riding on the mistake of his secretary. There apparently was an error in his secretary’s typing of the acknowledgment receipt. This can be gleaned from the indication of one and the same date (August 24, 2009) below the printed name of [c]omplainant and [Respondent in the two (2) Acknowledgment Receipts. Significantly, only the name of the recipient (Respondent) was changed in the latter receipt and this gave way for him to use the original one (with Complainant as recipient) which is erroneous [since the said copy indicated complainant as the recipient when it should have been the respondent] to support his claim that he had already returned to Complainant the sum of P40,000.00 that was earlier paid to him the said amount being indicated in the acknowledgment receipt.

Furthermore, the Court noted that the documents received by Real, namely the Deed of Absolute Sale and Deed of Donation, were directly related to the property transfer, not the estate settlement. Real’s failure to provide a convincing explanation for possessing these specific documents undermined his defense. The court also considered the affidavit of Fabie’s mother, which corroborated his allegations and denied engaging Real for estate settlement.

Real’s defense rested on the claim that he was engaged to settle the estate of Fabie’s father. However, he failed to provide concrete evidence of this engagement. The Court found his account unconvincing, noting the lack of specific details regarding how he was engaged, who contacted him, and why he returned the documents and money to Fabie instead of the other heirs. The Court emphasized that Real’s version of events “hardly inspires belief.”

The Supreme Court emphasized the high standard of conduct expected of lawyers, citing Canon 18, Rule 18.03 of the Code of Professional Responsibility, which states:

CANON 18 – A LAWYER SHALL SERVE HIS CLIENT WITH COMPETENCE AND DILIGENCE.

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Rule 18.03 – A lawyer shall not neglect a legal matter entrusted to him, and his negligence in connection therewith shall render him liable.

The Court found that Real had indeed violated this canon by failing to diligently pursue the property transfer and refusing to return the attorney’s fees. This failure constituted a breach of trust and a violation of the Lawyer’s Oath. The court, in its decision, reiterated that:

Every attorney owes fidelity to the causes and concerns of his [client]. He must be ever mindful of the trust and confidence reposed in him by the [client]. His duty to safeguard the [client’s] interests commences from his engagement as such, and lasts until his effective release by the [client]. In that time, he is expected to take every reasonable step and exercise ordinary care as his [client’s] interests may require.

The Court ultimately found Atty. Real guilty of violating Canon 18, Rule 18.03 of the Code of Professional Responsibility and the Lawyer’s Oath. The penalty imposed was a six-month suspension from the practice of law and an order to return the P40,000 to Fabie, with interest. The Court reasoned that this penalty was appropriate given the circumstances of the case. The penalty also aligns with the ruling in Pesto v. Millo, where a similar violation resulted in a six-month suspension and a refund of attorney’s fees. It underscores the importance of upholding ethical standards and fulfilling the duties owed to clients.

FAQs

What was the key issue in this case?	The key issue was whether Atty. Real violated the Code of Professional Responsibility by neglecting his client’s legal matter and misappropriating funds. The Supreme Court ultimately found him guilty of these violations.
What did Patrick Fabie claim?	Patrick Fabie claimed that he hired Atty. Real to facilitate the transfer of property ownership to his sister and provided him with the necessary documents and P40,000. He alleged that Real failed to complete the transfer and refused to return the money and documents.
What was Atty. Real’s defense?	Atty. Real defended himself by claiming that the documents and money were for settling the estate of Fabie’s late father, not for the property transfer. He also claimed that the heirs later took back the items.
What was the significance of the TCT discrepancy?	The discrepancy in the Transfer Certificate of Title (TCT) numbers was a key point of contention. Fabie claimed it was a typographical error, while Real argued it invalidated Fabie’s claim. The Court found Fabie’s explanation plausible.
What evidence supported Fabie’s claim?	The evidence supporting Fabie’s claim included the documents received by Real (Deed of Absolute Sale and Deed of Donation) which were directly related to the property transfer, and the affidavit of Fabie’s mother which corroborated his allegations.
What was the ruling of the Supreme Court?	The Supreme Court found Atty. Real guilty of violating Canon 18, Rule 18.03 of the Code of Professional Responsibility and the Lawyer’s Oath. He was suspended from the practice of law for six months and ordered to return the P40,000 to Fabie with interest.
What is Canon 18, Rule 18.03 of the Code of Professional Responsibility?	Canon 18 states that a lawyer shall serve his client with competence and diligence. Rule 18.03 specifies that a lawyer shall not neglect a legal matter entrusted to him, and his negligence in connection therewith shall render him liable.
What is the Lawyer’s Oath?	The Lawyer’s Oath is a solemn promise made by lawyers to uphold the law, act with fidelity to the courts and clients, and conduct themselves with honesty and integrity. Violation of this oath can lead to disciplinary actions.

This case serves as a crucial reminder of the responsibilities and ethical obligations that lawyers must uphold. The Supreme Court’s decision reinforces the principle that lawyers must act with competence, diligence, and utmost fidelity to their clients’ interests, and failure to do so can result in serious consequences.

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: Patrick R. Fabie vs. Atty. Leonardo M. Real, A.C. No. 10574, September 20, 2016