In Verano v. Diores, Jr., the Supreme Court disbarred Atty. Luis Fernan Diores, Jr. for deceit, gross misconduct, and willful disobedience to lawful court orders. The Court found that Atty. Diores misused a Special Power of Attorney to secure bail bonds for numerous estafa cases against him, failed to comply with court directives, and was ultimately convicted of multiple counts of estafa. This decision underscores the high ethical standards expected of lawyers and the severe consequences of betraying client trust and disregarding judicial authority. The ruling reinforces the principle that lawyers must act with utmost good faith and candor and that violations can result in the ultimate penalty of disbarment.

Abuse of Trust: When an Attorney’s Actions Lead to Disbarment

The case of Roman Dela Rosa Verano v. Atty. Luis Fernan Diores, Jr., arose from a complaint filed by Verano, who accused Atty. Diores of deceit, malpractice, gross ignorance of the law, and violation of the Lawyer’s Oath. Verano alleged that Atty. Diores surreptitiously used Verano’s parcel of land to secure bail bonds in connection with at least 61 cases of Estafa and Violation of Batas Pambansa Blg. 22 (B.P. Blg. 22) filed against Atty. Diores. The core of the issue was whether Atty. Diores exceeded the authority granted to him by Verano and whether his actions warranted disciplinary measures.

The factual backdrop reveals that on April 11, 2006, Verano executed a Special Power of Attorney (SPA) in favor of Atty. Diores, authorizing him to use Verano’s land as a guaranty to obtain a bail bond for specific criminal cases filed against Atty. Diores. However, Verano later discovered that Atty. Diores had entered into a Memorandum of Agreement (MOA) with Visayan Surety and Insurance Corporation to use the same property as a guarantee for bail bonds in at least 61 cases of Estafa and Violation of B.P. Blg. 22. Verano asserted that he did not authorize Atty. Diores to enter into such an agreement or to use the property as collateral for cases beyond those specified in the SPA, which caused him significant loss and damage. This unauthorized use of the property formed the basis of Verano’s complaint.

Further complicating matters, the Regional Trial Court (RTC) found Atty. Diores guilty beyond reasonable doubt of six counts of Estafa through false pretenses and fraudulent means under Article 315(2)(a) of the Revised Penal Code. The RTC decision highlighted Atty. Diores’ involvement in a Ponzi scheme, which further underscored his fraudulent conduct. The court sentenced him to imprisonment and ordered him to pay substantial sums to the offended parties. The convergence of the unauthorized use of Verano’s property and the conviction for Estafa significantly influenced the Supreme Court’s decision.

The Supreme Court, in its analysis, emphasized the high standards of conduct expected of lawyers. Lawyers are expected to observe the highest degree of good faith, fairness, and candor in dealing with clients and other people, both in their private and professional capacities. Any form of deception or fraudulent act committed by a lawyer undermines the trust and confidence of people in the legal profession and violates Canon 1, Rule 1.01 of the Code of Professional Responsibility (CPR), which states:

Rule 1.01. – A lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct.

The Court also highlighted a lawyer’s duty to obey lawful orders of a superior court and the Integrated Bar of the Philippines (IBP). Willful disobedience to such orders is a sufficient ground to disbar a lawyer or suspend him from the practice of law under Section 27, Rule 138 of the Rules of Court. Section 27 of Rule 138 of the Rules of Court states:

SEC. 27. Disbarment or suspension of attorneys by Supreme Court; grounds therefor. – A member of the bar may be disbarred or suspended from his office as attorney by the Supreme Court for any deceit, malpractice, or other gross misconduct in such office, grossly immoral conduct, or by reason of his conviction of a crime involving moral turpitude, or for any violation of the oath which he is required to take before admission to practice, or for a willful disobedience of any lawful order of a superior court, or for corruptly or willfully appearing as an attorney for a party to a case without authority so to do. The practice of soliciting cases at law for the purpose of gain, either personally or through paid agents or brokers, constitutes malpractice.

In Atty. Diores’ case, the Court found that he had not only exceeded the authority granted to him by Verano in the SPA but also failed to comply with multiple directives from the Court and the IBP. Despite being notified, Atty. Diores failed to file a comment on Verano’s complaint and did not attend the mandatory conference before the IBP. The Court viewed this as a grave affront to the legal profession, warranting the most severe penalty.

The Court also addressed the conviction of Atty. Diores for six counts of Estafa. The Court emphasized that Estafa, an act of defrauding another person, is a crime involving moral turpitude. This conviction, coupled with his other infractions, solidified the Court’s decision to disbar him. The court reasoned that his criminal tendency to defraud and deceive people into remitting their money is unacceptable for a member of the legal profession. Moral turpitude involves acts considered immoral, dishonest, or unethical, and it reflects a deficiency in character that makes an individual unfit to practice law.

The Supreme Court, in its decision, considered the totality of Atty. Diores’ infractions, including the unauthorized use of the SPA, the failure to comply with court and IBP orders, and the conviction for multiple counts of Estafa. The Court concluded that these actions demonstrated his unfitness to continue practicing law, thus justifying his disbarment.

FAQs

What was the key issue in this case?	The key issue was whether Atty. Diores’ actions, including the unauthorized use of a Special Power of Attorney, failure to comply with court orders, and conviction for estafa, warranted disbarment. The Supreme Court examined whether his conduct violated the ethical standards expected of lawyers.
What is a Special Power of Attorney (SPA)?	A Special Power of Attorney (SPA) is a legal document that authorizes a person (the attorney-in-fact) to act on behalf of another person (the principal) in specific matters. The scope of authority is limited to what is explicitly stated in the document.
What does moral turpitude mean?	Moral turpitude refers to conduct that is considered inherently immoral, unethical, or dishonest. Crimes involving moral turpitude often result in severe penalties for lawyers, including disbarment, as they reflect a character unfit for the legal profession.
What is the role of the Integrated Bar of the Philippines (IBP) in disciplinary cases?	The IBP investigates complaints against lawyers and makes recommendations to the Supreme Court regarding disciplinary actions. The IBP plays a crucial role in maintaining the integrity of the legal profession by ensuring that lawyers adhere to ethical standards.
What is Canon 1, Rule 1.01 of the Code of Professional Responsibility?	Canon 1, Rule 1.01 of the Code of Professional Responsibility states that a lawyer shall not engage in unlawful, dishonest, immoral, or deceitful conduct. This rule sets a high ethical standard for lawyers, emphasizing the importance of integrity and honesty.
What is the penalty for willful disobedience of a lawful court order?	Willful disobedience of a lawful court order can result in disciplinary actions, including suspension or disbarment. The Supreme Court views such disobedience as a grave affront to the legal profession and the judicial system.
What are the implications of an estafa conviction for a lawyer?	An estafa conviction, being a crime involving moral turpitude, can lead to disbarment or suspension for a lawyer. The conviction reflects a lack of trustworthiness and integrity, making the lawyer unfit to practice law.
Can a lawyer use a client’s property for personal benefit?	A lawyer cannot use a client’s property for personal benefit without explicit authorization and full disclosure. Any unauthorized use of a client’s property is a breach of trust and a violation of ethical standards.
What is a Ponzi scheme?	A Ponzi scheme is a type of investment fraud where returns are paid to earlier investors using money from new investors, rather than from actual profits. It is unsustainable and collapses when new investments dry up.

The disbarment of Atty. Luis Fernan Diores, Jr. serves as a stern reminder of the ethical obligations of lawyers and the grave consequences of failing to uphold these standards. The Supreme Court’s decision reaffirms the importance of trust, honesty, and obedience to lawful orders in the legal profession, ensuring that those who betray these principles are held accountable. The case underscores the need for lawyers to act with utmost good faith and candor in all their dealings, both private and professional, to maintain the integrity of the legal system.

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: Roman Dela Rosa Verano v. Atty. Luis Fernan Diores, Jr., A.C. No. 8887, November 07, 2017