The Supreme Court, in this case, reiterated that a lawyer’s professional responsibility extends beyond serving their client’s interests; it also encompasses an unwavering duty of candor, fairness, and good faith towards the court. This means that lawyers must not mislead the court through any artifice or falsehood. Even if a client forgives a lawyer’s misconduct or withdraws a complaint, the Court can still discipline the lawyer if there is sufficient evidence of culpability. The integrity of the legal profession hinges on its members’ honesty and principled conduct, which must be preserved regardless of a complainant’s change of heart.

When a Settlement Stays Silent: Can a Lawyer Withhold Information from the Court?

This case revolves around a complaint for disbarment filed by Spouses Rogelio and Aida Amatorio against Attys. Francisco Dy Yap and Whelma Siton-Yap, alleging violations of the Code of Professional Responsibility. The spouses claimed that the lawyers deceived the court by failing to disclose an out-of-court settlement they had reached and by falsely claiming that the spouses’ counsel was suspended from legal practice. The central question before the Supreme Court was whether the lawyers’ actions constituted a breach of their ethical duties, warranting disciplinary action, despite the complainants later recanting their allegations.

The Amaturios were embroiled in two collection cases filed against them by the Yaps. They were represented by Atty. Justo Paras. While these cases were pending, an out-of-court settlement was reached where Aida Amatorio made an initial payment to Atty. Yap. Subsequently, the Amatorios received court decisions against them, due to their non-appearance at the pre-trial conferences; they were under the impression that their presence was no longer required. The Amatorios alleged that despite the settlement, the Yaps did not inform the court about it. Furthermore, they even sought a writ of execution for one of the cases.

After the Amatorios filed a disbarment case against the Yaps, they allegedly experienced intimidation tactics, leading them to seek assistance from the Supreme Court. In response, the Yaps denied any deceitful conduct and accused Atty. Paras of instigating the disbarment case due to prior personal animosity. The Integrated Bar of the Philippines (IBP) investigated the matter and recommended a six-month suspension for Atty. Francisco Yap, finding substantial evidence that he misled the courts. The IBP Board of Governors modified the recommendation, reducing the suspension to three months and exonerating Atty. Whelma Siton-Yap.

Interestingly, the Amaturios later executed a judicial affidavit disclaiming knowledge and participation in the disbarment complaint, claiming they were misled by Atty. Paras. They also sought to withdraw the complaint against the Yaps. The Supreme Court acknowledged this development but emphasized that disciplinary proceedings against lawyers serve to protect the integrity of the legal profession. The court stated:

…any misconduct on the part of the lawyer not only hurts the client’s cause but is even more disparaging on the integrity of the legal profession itself. Thus, for tarnishing the reputation of the profession, a lawyer may still be disciplined notwithstanding the complainant’s pardon or withdrawal from the case for as long as there is evidence to support any finding of culpability.

The Court emphasized that the power to discipline lawyers cannot be undermined by compromises or withdrawal of charges because the legal profession is imbued with public interest. The Supreme Court emphasized that disciplinary proceedings aim not only to protect the public but also to maintain the dignity of the profession by removing those who have proven themselves unworthy. The court cited the case of Go v. Candoy, 128 Phil. 461, 465 (1967), highlighting that a case for suspension or disbarment may proceed regardless of the complainants’ interest or lack thereof, if the proven facts warrant it.

Therefore, the Supreme Court had to independently assess the evidence to determine if Atty. Yap had indeed violated the Code of Professional Responsibility, notwithstanding the complainants’ change of heart. The Supreme Court relied on Canon 1 and 10 of the Code of Professional Responsibility to evaluate the actions of Atty. Yap. These canons state:

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.

CANON 10 – A lawyer owes candor, fairness and good faith to the court.

Rule 10.01 – A lawyer shall not do any falsehood, nor consent to the doing of any in Court; nor shall he mislead or allow the court to be misled by any artifice.

The Court found that Atty. Yap received an initial payment from the Amaturios as part of their out-of-court settlement. However, he did not bring this agreement to the attention of the court, even when seeking a writ of execution. The Court found this to be a deliberate omission, violating the standards of honesty required of lawyers. It did not accept the complainant’s new statement that Atty. Yap was without fault as it ran contrary to the evidence that had been presented.

Ultimately, the Supreme Court affirmed the IBP’s resolution, suspending Atty. Francisco Dy Yap from the practice of law for three months, underscoring the importance of candor and honesty in dealings with the court. The court also issued a stern warning that any similar misconduct in the future would be dealt with severely. The Court reiterated that:

In administrative cases for disbarment or suspension against lawyers, the quantum of proof required is clearly preponderant evidence and the burden of proof rests upon the complainant.”

FAQs

What was the key issue in this case?	The central issue was whether Atty. Francisco Dy Yap violated the Code of Professional Responsibility by failing to inform the court about an out-of-court settlement and, despite the complainants’ change of heart, if disciplinary action was warranted.
What is the duty of candor to the court?	The duty of candor requires lawyers to be honest and forthright with the court. This includes not making false statements and disclosing all relevant information, even if it is not in their client’s best interest.
What happens if a lawyer violates the Code of Professional Responsibility?	If a lawyer violates the Code of Professional Responsibility, they may face disciplinary actions such as suspension or disbarment, depending on the severity of the misconduct.
Can a disciplinary case against a lawyer proceed even if the complainant withdraws the complaint?	Yes, a disciplinary case can proceed even if the complainant withdraws the complaint. The Supreme Court has the power to discipline lawyers to protect the integrity of the legal profession.
What is the standard of proof in disbarment cases?	The standard of proof in disbarment cases is preponderance of evidence. This means that the complainant must present enough evidence to convince the court that it is more likely than not that the lawyer committed the misconduct.
What was the outcome for Atty. Francisco Dy Yap in this case?	Atty. Francisco Dy Yap was suspended from the practice of law for three months for deliberately misleading the Court.
What was the basis for Atty. Yap’s suspension?	Atty. Yap’s suspension was based on his failure to inform the court about the out-of-court settlement, which was considered a violation of his duty of candor to the court.
How does this case impact the legal profession?	This case reinforces the importance of honesty and integrity in the legal profession. It also highlights that lawyers’ ethical obligations extend beyond serving their clients’ interests.

This case serves as a potent reminder that the legal profession demands unwavering integrity and honesty. Lawyers must uphold their duty of candor to the court, even when faced with challenging circumstances. By prioritizing ethical conduct, lawyers preserve the public’s trust in the legal system and contribute to the administration of justice.

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 Rogelio Amatorio and Aida Amatorio vs. Atty. Francisco Dy Yap and Atty. Whelma F. Siton-Yap, AC No. 5914, March 11, 2015