In the Philippines, notaries public play a vital role in ensuring the integrity of legal documents. The Supreme Court decision in Carmelo Iringan v. Atty. Clayton B. Gumangan underscores the importance of strict compliance with notarial law. When a notary public fails to adhere to these standards, such as improperly verifying identities or neglecting to submit required reports, they face administrative penalties, including the revocation of their notarial commission and suspension from practice. This ruling reinforces the duty of lawyers to uphold the law and maintain public trust in the legal system.

Breach of Trust: When a Notary’s Negligence Undermines a Contract

The case revolves around a complaint filed by Carmelo Iringan against Atty. Clayton B. Gumangan concerning a notarized Contract of Lease. Carmelo alleged that Atty. Gumangan notarized the contract despite irregularities, including discrepancies in the community tax certificates (CTCs) of the parties involved and the failure to submit the notarial report to the Clerk of Court. He claimed he never appeared before Atty. Gumangan, that he never executed the contract, and that it was impossible for the contract to be executed and subscribed before Atty. Gumangan on December 30, 2005, because Renato Iringan’s CTC (08768743) was issued on January 17, 2006. Thus, the central legal question before the Supreme Court was whether Atty. Gumangan violated the Notarial Law, the 2004 Rules on Notarial Practice, and the Code of Professional Responsibility.

The Supreme Court meticulously examined the facts and the applicable rules. The Court emphasized the significance of a notary public’s role in converting a private document into a public one, which carries evidentiary weight without the need for preliminary proof of authenticity. As highlighted in Agagon v. Bustamante:

It cannot be overemphasized that notarization of documents is not an empty, meaningless or routinary act. It is invested with substantive public interest, such that only those who are qualified or authorized may act as notaries public. It is through the act of notarization that a private document is converted into a public one, making it admissible in evidence without need of preliminary proof of authenticity and due execution.

The 2004 Rules on Notarial Practice, which were in effect at the time of the notarization, required notaries public to ensure the proper identification of signatories. Specifically, Rule IV, Section 2(b) states that a person shall not perform a notarial act if the person involved as signatory to the instrument or document is not personally known to the notary public or otherwise identified by the notary public through competent evidence of identity as defined by these Rules.

The court found that Atty. Gumangan failed to comply with this requirement. He did not allege that he personally knew Renato and Carmelo, and he did not obtain competent evidence of their identities, which, according to Rule II, Section 12, includes at least one current identification document issued by an official agency bearing the photograph and signature of the individual. Instead, he proceeded with the notarization based on the promise that Renato and Carmelo would later provide their CTCs.

The Supreme Court pointed out that CTCs are no longer considered competent evidence of identity, as stated in Baylon v. Almo, because of the ease with which they can be obtained. This negligence constituted a direct violation of the Notarial Law and the 2004 Rules on Notarial Practice. The Court further noted Atty. Gumangan’s failure to submit his Notarial Report and a duplicate original of the Contract of Lease to the RTC Clerk of Court, as required by Rule VI, Section 2(h) of the 2004 Rules on Notarial Practice, which states that: A certified copy of each month’s entries and a duplicate original copy of any instrument acknowledged before the notary public shall, within the first ten (10) days of the month following, be forwarded to the Clerk of Court. His failure to comply with these regulations further demonstrated a disregard for his duties as a notary public.

Atty. Gumangan’s actions were deemed a breach of his duties as a lawyer and a notary public, undermining public trust in the integrity of notarized documents. The court emphasized the importance of notaries public discharging their duties with fidelity, as dictated by public policy and impressed with public interest. Thus, the Court found Atty. Gumangan guilty of violating the Notarial Law, the 2004 Rules on Notarial Practice, and the Code of Professional Responsibility. As a consequence, the Supreme Court revoked his incumbent commission as notary public, prohibited him from being commissioned as a notary public for two years, and directed him to report the date of his receipt of the Decision.

It is important to note that while the irregularities in the notarization of the Contract of Lease were the basis for the administrative sanctions against Atty. Gumangan, these irregularities did not invalidate the contract itself. As the Court clarified, any defect in the notarization did not affect its validity, and it continued to be binding between Renato and Carmelo. The ruling in the administrative case did not affect the judgment rendered against Carmelo in the unlawful detainer case, Civil Case No. 518-09.

FAQs

What was the key issue in this case?	The key issue was whether Atty. Clayton B. Gumangan violated the Notarial Law, the 2004 Rules on Notarial Practice, and the Code of Professional Responsibility by improperly notarizing a Contract of Lease. This involved issues such as failing to verify the identities of the parties and not submitting the required notarial report to the Clerk of Court.
What is ‘competent evidence of identity’ under the 2004 Rules on Notarial Practice?	According to Rule II, Section 12, ‘competent evidence of identity’ refers to the identification of an individual based on at least one current identification document issued by an official agency, bearing the photograph and signature of the individual. CTCs no longer qualify as competent evidence of the parties’ identity as defined under Rule II, Section 12 of the 2004 Rules on Notarial Practice.
What were the penalties imposed on Atty. Gumangan?	The Supreme Court revoked Atty. Gumangan’s incumbent commission as notary public and prohibited him from being commissioned as a notary public for two years, effective immediately. He was also directed to report the date of his receipt of the Decision to enable the Court to determine when his suspension would take effect.
Did the irregularities in the notarization invalidate the Contract of Lease?	No, the Supreme Court clarified that the irregularities in the notarization did not invalidate the Contract of Lease itself. The contract continued to be binding between the parties, Renato and Carmelo Iringan.
What is the duty of a notary public when notarizing documents?	A notary public is mandated to discharge with fidelity the sacred duties appertaining to his office, such duties being dictated by public policy and impressed with public interest. Faithful observance and utmost respect for the legal solemnity of an oath in an acknowledgment are sacrosanct.
What is the significance of notarization?	Notarization converts a private document into a public one, making it admissible in evidence without needing preliminary proof of authenticity and due execution. Notarization should not be treated as an empty, meaningless, or routinary act.
What should a notary public do if the parties do not have proper identification?	A notary public should not perform a notarial act if the person involved as a signatory to the instrument or document is not personally known to the notary public or otherwise identified by the notary public through competent evidence of identity as defined by the 2004 Rules on Notarial Practice.
Why did the Supreme Court emphasize the importance of the Notarial Law?	The Supreme Court emphasized the importance of the Notarial Law because it upholds the integrity and sanctity of the notarization process and maintains public confidence in notarial documents. Failure to comply undermines this integrity and erodes public trust.

This case serves as a clear reminder of the responsibilities and ethical standards required of lawyers acting as notaries public. The Supreme Court’s decision underscores that failing to comply with the Notarial Law, the Rules on Notarial Practice, and the Code of Professional Responsibility can lead to serious consequences, including the loss of notarial commission and suspension from practice.

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: CARMELO IRINGAN, COMPLAINANT, VS. ATTY. CLAYTON B. GUMANGAN, RESPONDENT., G.R. No. 63384, August 16, 2017