Posidio vs. Atty. Vitan
Posidio vs. Atty. Vitan
Posidio vs. Atty. Vitan
FACTS
Posidio engaged the services of Vitan in a Testate Proceeding of the deceased Nicolasa Arroyo to
which she paid Php 20,000.00 as legal fees. However, Vitan withdrew his appearance in the said case
thus, Posidio had to engage the services of another lawyer. Six years after, Vitan contacted Posidio and
told her that he has with some tax declarations and other documents purportedly forming part of the
estate of Nicolasa Arroyo, but was not included in the inventory of properties for distribution. He
convinced complainant to file another case to recover her share in the alleged undeclared properties
and demanded P100,000.00 as legal fees. After several months, however, respondent failed to institute
any action. Complainant decided to forego the filing of the case and asked for the return of the
P100,000.00, but respondent refused despite repeated demands.
The lower court ruled in favor of Posidio and ordered Vitan to return the Php 100,000.00 and
pay an additional Php 20,000.00 as interest and damages. In compliance, Vitan issued a Prudential Bank
check that was dishonored later on. Despite being sent a notice of dishonor and the repeated demands
to pay, Vitan refused to honor his obligation.
The case was referred to the Integrated Bar of the Philippines for investigation, report and
recommendation. The Investigating Commissioner submitted his Report finding Vitan guilty of violating
the lawyer’s oath and the Code of Professional Responsibility in defrauding his client and issuing a check
without sufficient funds to cover the same. The IBP penalized Vitan with a reprimand with stern warning
that a similar misconduct will warrant a more severe penalty.
ISSUE
HELD
The Supreme Court agrees with the findings of the IBP. However, they find that the penalty of
reprimand is not commensurate to the gravity of wrong committed by Vitan.
In the instant case, respondent received the amount of P100,000.00 as legal fees for filing
additional claims against the estate of Nicolasa S. de Guzman Arroyo. However, he failed to institute an
action, thus it was imperative that he immediately return the amount to complainant upon demand.
Having received payment for services which were not rendered, respondent was unjustified in keeping
complainant’s money. His obligation was to immediately return the said amount. His refusal to do so
despite complainant’s repeated demands constitutes a violation of his oath where he pledges not to
delay any man for money and swears to conduct himself with good fidelity to his clients.
A lawyer is obliged to hold in trust money or property of his client that may come to his
possession. He is a trustee to said funds and property. He is to keep the funds of his client separate and
apart from his own and those of others kept by him. Money entrusted to a lawyer for a specific purpose
such as for the registration of a deed with the Register of Deeds and for expenses and fees for the
transfer of title over real property under the name of his client if not utilized, must be returned
immediately to his client upon demand. The lawyer’s failure to return the money of his client upon
demand gave rise to a presumption that he has misappropriated said money in violation of the trust
reposed on him. The conversion by a lawyer of funds entrusted to him by his client is a gross violation of
professional ethics and a betrayal of public confidence in the legal profession.