The Supreme Court held that a lawyer who misappropriates client funds and engages in bribery is guilty of violating the Code of Professional Responsibility and warrants disbarment. This ruling underscores the high ethical standards expected of legal professionals, reinforcing the principle that lawyers must act with utmost honesty and integrity in handling client funds and dealing with public officials. The decision serves as a stern warning against conduct that undermines the integrity of the legal profession and the administration of justice, protecting clients and the public from dishonest and unethical practices.

The Case of the Missing Money: Did a Lawyer Betray His Client’s Trust?

In 2004, Arellano University, Inc. (the University) hired Atty. Leovigildo H. Mijares III to secure a title for a dried-up portion of Estero de San Miguel. The University provided Mijares with necessary documents and P500,000 for “facilitation and processing,” with the understanding that the money would be returned if the task wasn’t completed. Mijares claimed to have completed Phase I of the titling, securing approval from the Metro Manila Development Authority (MMDA), but failed to provide proof despite repeated requests. Subsequently, the University terminated his services and demanded the return of the P500,000.

Mijares claimed that the University had agreed to a series of “facilitation costs,” including P500,000 for a survey plan approval from the Department of Environment and Natural Resources (DENR), another P500,000 for a favorable MMDA endorsement, and a final P500,000 for titling by the Land Registration Authority. He alleged that he gave the initial P500,000 to Undersecretary Cesar Lacuna of the MMDA through a mutual acquaintance. Lacuna then allegedly revealed that the University had previously filed an identical application, casting doubt on the current one’s success.

The Integrated Bar of the Philippines (IBP) investigated the complaint. Despite several scheduled hearings, Mijares failed to appear and present evidence in his defense. The investigating commissioner found that the University had not authorized Mijares to bribe Lacuna, and Mijares failed to account for the funds, admitting under oath that he bribed a government official.

“Every lawyer has the responsibility to protect and advance the interests of his client such that he must promptly account for whatever money or property his client may have entrusted to him. As a mere trustee of said money or property, he must hold them separate from that of his own and make sure that they are used for their intended purpose. If not used, he must return the money or property immediately to his client upon demand, otherwise the lawyer shall be presumed to have misappropriated the same in violation of the trust reposed on him.”

The Supreme Court cited Section 27, Rule 138 of the Revised Rules of Court, outlining grounds for disbarment or suspension. These include deceit, malpractice, gross misconduct, and violation of the lawyer’s oath. The Court emphasized a lawyer’s duty to protect a client’s interests, promptly account for entrusted funds, and keep such funds separate. Failure to return unused funds upon demand results in a presumption of misappropriation and breach of trust.

Because Mijares did not present any defense, the Court primarily considered the University’s evidence: Mijares received P500,000 for facilitating the title application, promised to return the money if unsuccessful, falsely claimed MMDA approval, and refused to return the funds despite repeated demands. The Court found Mijares’s defense unconvincing, stating that if he had permission to give Lacuna the P500,000, there was no reason to avoid the University or not compel Lacuna to return the money.

Mijares admitted to bribing a government official to act favorably on his client’s application. Such conduct violated Rules 1.01 and 1.02, Canon 15, Rule 15.05, Canon 16, Rules 16.01 and 16.03, and Canon 18, Rule 18.04 of the Code of Professional Responsibility, which prohibit lawyers from engaging in unlawful, dishonest, or deceitful conduct, and require them to hold property of others with care. The Court rejected the IBP’s recommendation of indefinite suspension, instead ordering disbarment.

The Court declined to order Mijares to return the P500,000 because the University willingly provided the money for “facilitation,” a euphemism for bribery. The Court would not transform the disbarment proceeding into a means of recovering bribe money. Mijares was, however, ordered to return all documents related to the titling matter to Arellano University, Inc.

FAQs

What was the main reason for Atty. Mijares’ disbarment?	Atty. Mijares was disbarred for misappropriating client funds intended for facilitating a title application and for admitting to bribing a government official. This violated the Code of Professional Responsibility, which demands honesty and integrity from lawyers.
What specific violations did Atty. Mijares commit?	He violated Rules 1.01 and 1.02 (unlawful, dishonest conduct), Canon 15 and Rule 15.05 (conflict of interest), Canon 16 and Rules 16.01 and 16.03 (accountability for client funds), and Canon 18 and Rule 18.04 (neglect of legal matters) of the Code of Professional Responsibility.
Why did the Court not order Atty. Mijares to return the P500,000?	The Court did not order the return of the money because the University knowingly provided it for “facilitation,” which is considered a bribe. The Court refused to facilitate the recovery of bribe money through disbarment proceedings.
What is the significance of Section 27, Rule 138 of the Revised Rules of Court?	This section lists the grounds for disbarment or suspension of a lawyer, including deceit, malpractice, gross misconduct, and violation of the lawyer’s oath, all of which Atty. Mijares was found guilty of committing.
What does it mean to misappropriate client funds?	It means that the lawyer used the money given by client for uses or reason that weren’t approved. More specifically here, Mijares kept the money after having breached the understanding that if he does not fulfil the request then he needs to return the money.
How does this case protect clients of legal services?	It reinforces the importance of honesty, integrity, and accountability among lawyers. It also emphasizes how they are entrusted a position to deliver upon an objective of clients. This case sends a clear signal that the Court takes violations of the Code of Professional Responsibility seriously and protect clients.
Why it is serious to attempt bribery within court contexts?	Offering or engaging in the crime of bribery or corruption in courts, by extension within the Philippine context is severe as this degrades trust in institutions of trust which are considered important to preserve society by the laws, code of conduct. Such instances compromise the objective decisions or opinions formed under due process which causes lack of objectivity and trust.
What ethical principle related to Lawyer’s Code was highlighted by this case?	Integrity. The core of this legal battle is founded around the fact on whether the lawyer practiced this virtue that ought to be innately present given he is bound to take responsibility given his position as counsel of the University

This case serves as a stark reminder to all members of the Bar of the ethical responsibilities they must uphold. It illustrates the serious consequences that can arise from failing to maintain the highest standards of integrity and fidelity to the legal profession.

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: ARELLANO UNIVERSITY, INC. vs. ATTY. LEOVIGILDO H. MIJARES III, A.C. No. 8380, November 20, 2009