FIRST DIVISION
[A.C. No. 12465. April 26, 2021.][Formerly CBD Case No. 16-4920]
LLOYD SALCEDO CABACUNGAN, complainant,vs. ATTY. VERA JOY S. BAN-EG BONGAYON, respondent.
NOTICE
Sirs/Mesdames :
Please take notice that the Court, First Division, issued a Resolution dated April 26, 2021 which reads as follows:
"A.C. No. 12465 [formerly CBD Case No. 16-4920] (Lloyd Salcedo Cabacungan, complainant, v. Atty. Vera Joy S. Ban-eg Bongayon, respondent). — This is an administrative complaint filed by Lloyd Salcedo Cabacungan (Cabacungan) against Atty. Vera Joy S. Ban-eg Bongayon (Atty. Bongayon) for violation of the Lawyer's Oath and 1.01 1 and 7.03 2 of the Code of Professional Responsibility (CPR), as well as breach of contract, for the alleged non-payment of the amount he invested in the gold trading business of Atty. Bongayon and the agreed interest thereon.
In his Complaint, Cabacungan alleged that he was enticed to invest the amount of One Million Three Hundred Forty Thousand (P1,340,000.00) Pesos in Cooperative of Gold Traders, pegged to earn interest at the rate of six (6%) percent per month (first investment). Cabacungan made another investment of Two Million Pesos (P2,000,000.00) on 17 December 2012 in House of Shops and Trade, this time, to earn a monthly interest of five (5%) percent per month (second investment). Two (2) separate Agreements 3 were entered into and signed by Cabacungan and Atty. Bongayon pursuant thereto, both containing a provision that the amounts invested may be withdrawn anytime.
On 07 January 2013, Atty. Bongayon requested from Cabacungan to allow the adjustment of the interest in the amounts invested, for which reason the first two Agreements were consolidated and a new Agreement 4 was executed. The parties agreed that Cabacungan's investments shall earn four (4%) interest per month, to be paid every 10th (first investment) and 30th (second investment) of the month. However, when Atty. Bongayon failed to pay the Eighty Thousand Pesos (P80,000.00) interest on time, she requested the same to be rolled over or reinvested the following month at the rate of 4.5% monthly interest. 5
Cabacungan made another investment in the amount of Five Hundred Thousand (P500,000.00) on 05 November 2013, to earn a monthly interest of five (5%) percent (third investment). Thus, the total amount he invested reached to almost Four Million Pesos, excluding the Eighty Thousand Pesos (P80,000.00) interest which was agreed to be rolled over. However, when Cabacungan relayed his desire to withdraw her investments, Atty. Bongayon failed to heed despite repeated demands and follow ups, in total disregard of the stipulation in their agreements. This prompted Cabacungan to file an administrative Complaint against Atty. Bongayon.
Atty. Bongayon, however, failed to answer the administrative complaint against her despite notice given by the Commission on Bar Discipline (CBD) of the Integrated Bar of the Philippines (IBP).
Report and Recommendation of the IBP
Investigating Commissioner Cesare Napolione S. Sta. Romana, in his Report and Recommendation dated 18 April 2018 6 recommended that Atty. Bongayon be suspended from the practice of law for six (6) months. 7 He explained:
"This present case is an administrative charge against a lawyer due to her misconduct in a private business transaction between her and complainant. A reading of the communication letters and e-mails submitted by complainant show that respondent was absolutely remiss in her obligation to pay complainant and was evasive in her dealings with complainant. Despite repeated efforts on the part of complainant to reach out to respondent to arrive at a settlement, the latter conveniently and craftily evaded any communication with complainant.
These actions of respondent show a lack of professional honesty and honor on the part of respondent, which lawyers, even in pursuit of endeavors outside of their profession must continuously possess.
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Due to respondent's deliberate failure to settle her financial obligations with complainant and evasive conduct to avoid the same, she violated Canon I, Rule 1.01 and Canon 7, Rule 7.03 of the Code of Professional Responsibility and her Lawyer's Oath which enjoins her to obey the laws." 8
The IBP Board of Governors adopted and approved the recommendation, adding a fine of Five Thousand (P5,000.00) Pesos for Atty. Bongayon's failure to comply with the directive of the CBD to file her Answer. 9
Ruling of the Court
There is no question that Atty. Bongayon violated Rule 1.01 and Rule 7.03 of the CPR as well as the Lawyer's Oath. 10
The Lawyer's Oath is a covenant every lawyer undertakes to become and remain part of the legal profession. It is not mere facile words, drift and hollow, but a sacred trust that must be upheld and keep inviolable. It is a source of obligation and duty for every lawyer, which includes an undertaking to obey the laws and legal orders of duly constituted authorities therein, and not to do falsehood, nor consent to the doing of any in court. All lawyers are obligated to uphold their Oaths lest they be subjected to administrative cases and sanctions. 11
Rule 1.0, Canon 1 of the CPR, provides that "[a] lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct. Any act or omission that is contrary to, or prohibited or unauthorized by, or in defiance of, disobedient to, or disregards the law is "unlawful." "Unlawful" conduct does not necessarily imply the element of criminality although the concept is broad enough to include such element. To be "dishonest" means the disposition to lie, cheat, deceive, defraud or betray; be unworthy; lacking in integrity, honesty, probity, integrity in principle, fairness and straightforwardness while conduct that is "deceitful" means the proclivity for fraudulent and deceptive misrepresentation, artifice or device that is used upon another who is ignorant of the true facts, to the prejudice and damage of the party imposed upon. 12
Atty. Bongayon's acts show that she had been deceitful, dishonest and insincere in failing to return the amount invested by Cabacungan. First, in his email dated 18 March 2015, Cabacungan gave Atty. Bongayon two (2) options. First, to pay the total investment amount of P3,800,000.00 within one week upon receipt of the email, leaving it up to Atty. Bongayon whether she will still pay for the past and unpaid interest which already amounted to P1,483,341 more or less, as of 10 March 2015. And second, to pay the invested amount of P3,800,000, including all the accrued basic interest of P1,483,341.00 as of 10 March 2015 within six (6) months to commence in April 2015. 13 However, Atty. Bongayon did not avail any of the options but continued to ignore Cabacungan's calls, and even blocked his number to avoid receiving calls.
On the other hand, Rule 7.03, Canon 7 of the CPR mandates that a lawyer should not behave in a scandalous manner to the discredit of the legal profession. As a man of law, a lawyer is necessarily a leader of the community, looked up to as a model citizen. 14 Atty. Bongayon's stature as a member of the Bar had, in one way or another, influenced Cabacungan's decision to invest. The representations and assurances by Atty. Bongayon that her gold trading business was doing well caused material damage to Cabacungan. In so doing, Atty. Bongayon failed to uphold the integrity and dignity of the legal profession and lessened the confidence of the public in the honesty and integrity of the same.
Meanwhile, Lao vs. Medel15 instructs that as part of the duties of a lawyer to the society, to the bar, to the courts and to their clients, he must promptly pay his financial obligations. Obviously, Atty. Bongayon failed in this respect. Her deliberate failure to settle her obligations despite repeated demands is in itself a gross misconduct for which she may be sanctioned with one-year suspension from the practice of law. 16
While the IBP recommended the penalty of suspension for six (6) months, the determination of the appropriate penalty to be imposed on an erring lawyer is within the sound judicial discretion of the court taking into consideration the factual circumstances of the case. 17 The Court find the recommended penalty too light, given the amount and interest involved, as well as the patience exhibited by Cabacungan in following up his investment and relaying his desire to settle the matter peacefully vis-à-vis the evasive and uncooperative attitude of Atty. Bongayon. In addition, the latter ignored the directive of the CBD to respond to the accusations against her despite the clear directive by the IBP for her to submit her answer to the Complaint. Thus, the Court deems it wise to suspend Atty. Bongayon for a period of one (1) year.
Finally, this administrative case is without prejudice to any criminal and/or civil cases which may be filed by Cabacungan against Atty. Bongayon. 18
WHEREFORE, respondent Atty. Vera Joy S. Ban-eg Bongayon is hereby SUSPENDED from the practice of law for one (1) year, without prejudice to criminal or civil cases which may be filed against her by complainant Lloyd Salcedo Cabacungan. She is likewise WARNED that a repetition of the same or similar acts shall be dealt with more severely.
Upon receipt of this Resolution, Atty. Vera Joy S. Ban-eg Bongayon shall immediately serve her suspension. She shall formally manifest to this Court that her suspension has started, and copy furnish all courts and quasi-judicial bodies where she has entered her appearance within five (5) days upon receipt of this Resolution. Likewise, she is ordered to serve copies of her manifestation on all adverse parties in all the cases wherein she entered her formal appearance.
Let a copy of this Resolution be furnished to the Office of the Bar Confidant to be attached to Atty. Bongayon's personal record. Copies of this Resolution should also be served on the Integrated Bar of the Philippines for its proper disposition, and the Office of the Court Administrator for circulation to all courts in the country.
The Notice of Resolution dated July 12, 2018 of the Integrated Bar of the Philippines' Board of Governors which adopted with modification the findings of fact and recommendation of the Investigating Commissioner in his Report dated April 18, 2018, transmitted by letter dated January 28, 2019 of Director Marilou B. Ubano, Integrated Bar of the Philippines' Commission on Bar Discipline, together with the records and compact disc containing the PDF file of the case, is NOTED.
SO ORDERED."
By authority of the Court:
(SGD.) LIBRADA C. BUENADivision Clerk of Court
by:
MARIA TERESA B. SIBULAODeputy Division Clerk of Court
Footnotes
1. CANON 1 — A LAWYER SHALL UPHOLD THE CONSTITUTION, OBEY THE LAWS OF THE LAND AND PROMOTE RESPECT FOR LAW AND FOR LEGAL PROCESSES. Rule 1.01. A lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct.
2. CANON 7 — A LAWYER SHALL AT ALL TIMES UPHOLD THE INTEGRITY AND DIGNITY OF THE LEGAL PROFESSION, AND SUPPORT THE ACTIVITIES OF THE INTEGRATED BAR.
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Rule 7.03. A lawyer shall not engage in conduct that adversely reflect on his fitness to practice law, nor shall he whether in public or private life, behave in a scandalous manner to the discredit of the legal profession.
3.Rollo, pp. 5 and 6.
4.Id. at 7.
5.Id. at 42-43.
6.Id. at 62-66.
7.Id. at 66.
8.Id. at 65-66.
9.Id. at 60-61.
10. I, ________ do solemnly swear that I will maintain allegiance to the Republic of the Philippines; I will support its Constitution and obey the laws as well as the legal orders of the duly constituted authorities therein; I will do no falsehood, nor consent to the doing of any in court; I will not wittingly or willingly promote or sue any groundless, false, or unlawful suit, nor give aid nor consent to the same. I will delay no man for money or malice, and will conduct myself as a lawyer according to the best of my knowledge and discretion with all good fidelity as well to the courts as to my clients; and I impose upon myself this voluntary obligation without any mental reservation or purpose of evasion. So help me God. (Form 28, attached to the Rules of Court).
11.Natanauan v. Tolentino,A.C. No. 4269, 11 October 2016 [Per J. Jardeleza].
12.Sanidad v. Aguas,A.C. No. 9838, 10 June 2019 [Per J. (later CJ) Peralta].
13.Rollo,p. 55.
14.Aca v. Salvado,A.C. No. 10952, 26 January 2016, 779 Phil. 214 (2016) [Per Curiam].
15. A.C. No. 5916, 01 July 2003, 453 Phil. 115 (2003) [Per J. (later CJ) Panganiban].
16.See Andaya vs. Tumanda, A.C. No. 12209, 18 February 2019 [Per J. Hernando].
17.Id.
18.See rollo, p. 57.