This case underscores the crucial role of a notary public in ensuring the integrity of legal documents. The Supreme Court held that a notary public’s failure to diligently perform their duties, particularly in notarizing documents with glaring discrepancies and failing to record them in the notarial register, constitutes gross negligence. Such negligence warrants disciplinary action, including revocation of notarial commission and disqualification from future appointments. This decision reinforces the importance of public trust in notarized documents and the high standard of care expected from notaries public.

When a Notary’s Negligence Undermines a Deed: Examining the Ygoña Case

The case of Spouses Felix and Fe Navarro v. Atty. Margarito G. Ygoña arose from a dispute over a Deed of Absolute Sale. The Spouses Navarro secured a loan from Mercy Grauel, using their land as collateral. A Real Estate Mortgage was executed, and Grauel proposed an additional Deed of Absolute Sale as security, to avoid foreclosure if the loan wasn’t repaid. Atty. Ygoña notarized both the mortgage and, later, the Deed of Absolute Sale. The Spouses Navarro claimed the Deed was falsified and contested its validity, leading to administrative charges against Atty. Ygoña for negligence in his notarial duties.

The central issue revolves around the standard of care expected from a notary public. The Supreme Court emphasized that notarization is not a mere formality but a function imbued with public interest. As the Court stated,

“A notarized document is, therefore, entitled to full faith and credit upon its face, and the courts, administrative agencies, and the public at large must be able to rely upon the acknowledgment executed by a notary public.”

Building on this principle, notaries public must exercise utmost diligence in performing their duties.

The Court examined several irregularities in the notarization of the Deed of Absolute Sale. One key concern was the discrepancies in the Community Tax Certificates (CTCs) used in the document. For instance, the same CTC number appeared on both the Real Estate Mortgage and the Deed of Absolute Sale but with different dates of issuance. These inconsistencies raised serious doubts about whether the Spouses Navarro actually appeared before Atty. Ygoña to acknowledge the Deed, as required by the Rules on Notarial Practice.

Furthermore, the Court noted that Atty. Ygoña failed to include the Deed of Absolute Sale in his notarial report submitted to the Office of the Clerk of Court. This omission violated the 2004 Rules on Notarial Practice, which mandates the recording of all notarial acts in a notarial register. The failure to record the transaction further supported the finding of negligence against Atty. Ygoña. This oversight directly contravenes Rule XI, Section 1(b)(2) of the 2004 Rules on Notarial Practice.

In assessing Atty. Ygoña’s liability, the Court considered the findings of the Integrated Bar of the Philippines (IBP). The IBP Board of Governors had adopted the recommendation of Commissioner Andres, who found Atty. Ygoña liable for failing to diligently perform his notarial functions. The IBP initially recommended the revocation of Atty. Ygoña’s notarial commission, disqualification from being commissioned as a notary public for two years, and suspension from the practice of law for three months. However, the Supreme Court modified the penalty.

The Court agreed with the IBP’s recommendation to revoke Atty. Ygoña’s notarial commission and disqualify him from being commissioned as a notary public for two years. However, it disagreed with the recommended suspension from the practice of law. In reaching this decision, the Court considered the dismissal of the criminal case for falsification filed against Atty. Ygoña. Moreover, the Court took note of the Spouses Navarro’s history of filing suits against opposing counsel, suggesting a propensity to litigate against lawyers involved in their disputes.

The ruling in this case reinforces the significance of the notarial function in the Philippine legal system. By emphasizing the high standard of care expected from notaries public, the Supreme Court aims to preserve public confidence in the integrity of notarized documents. This decision serves as a warning to notaries public to exercise diligence and caution in performing their duties, ensuring that all documents are properly authenticated and recorded. Failure to do so can result in severe disciplinary actions, including the loss of their notarial commission and potential suspension from the practice of law.

FAQs

What was the key issue in this case?	The key issue was whether Atty. Ygoña was negligent in performing his duties as a notary public when he notarized a Deed of Absolute Sale with discrepancies and failed to record it in his notarial register. The Supreme Court addressed the standard of care required of notaries public.
What is the role of a notary public?	A notary public is authorized to administer oaths and affirmations, take affidavits and depositions, and notarize documents. Notarization converts a private document into a public document, making it admissible in court without further proof of authenticity.
What discrepancies were found in the Deed of Absolute Sale?	The discrepancies included inconsistencies in the Community Tax Certificates (CTCs) used in the document, such as the same CTC number appearing with different dates of issuance, raising doubts about the document’s validity.
What did the IBP recommend in this case?	The IBP initially recommended the revocation of Atty. Ygoña’s notarial commission, disqualification from being a notary public for two years, and suspension from the practice of law for three months.
What was the Supreme Court’s final ruling?	The Supreme Court found Atty. Ygoña guilty of gross negligence in the performance of his duties as a notary public. His notarial commission was revoked, and he was disqualified from being commissioned as a notary public for two years.
Why was Atty. Ygoña not suspended from the practice of law?	The Court considered the dismissal of the criminal case against Atty. Ygoña and the Spouses Navarro’s propensity to file suits against opposing counsel, leading them to forego the suspension from law practice.
What is the significance of this ruling?	The ruling reinforces the importance of diligence and caution in performing notarial duties. It serves as a warning to notaries public to ensure proper authentication and recording of documents.
What is pactum commissorium?	Pactum commissorium is a prohibited agreement where the creditor automatically appropriates the collateral in case of the debtor’s failure to pay. The Court chose not to rule on this matter.

This case serves as a critical reminder to all notaries public in the Philippines about the importance of their role and the need for strict adherence to the rules and regulations governing notarial practice. Maintaining the integrity of notarized documents is essential for upholding the rule of law and protecting the interests of the public.

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: SPOUSES FELIX AND FE NAVARRO, VS. ATTY. MARGARITO G. YGOÑA, A.C. No. 8450, July 26, 2017