The recent case of JOHN CHRISTEN S. HEGNA vs. ATTY. GOERING G.C. PADERANGA, A.C. No. 5955, September 8, 2009, the Philippine Supreme Court suspended for one year from the practice of law the respondent Atty. Goering G.C. Paderanga for engaging in dishonest and deceitful conduct, with a stern warning that a repetition of the same or similar offense in the future would result in the imposition of a more severe penalty.
In a letter-complaint dated June 3, 2002, filed by complainant John Christen S. Hegna with the Office of the Bar Confidant (OBC) against respondent Atty. Goering G.C. Paderanga, the complainant charged the respondent with the offence of deliberately falsifying documents, which caused delay in the execution of the decision rendered by the Municipal Trial Courts in Cities (MTCC), Branch 8, Cebu City, in Civil Case No. R-45146, entitled John Hegna v. Mr. & Mrs. Eliseo Panaguinip.
Let me digest the doctrinal pronouncements in the said decision, for legal research purposes of the visitors of this blog, thus:
1. On June 1, 2005, the Investigating Commissioner of the IBP submitted his Report and Recommendation. The commissioner stated that while complainant could fully prove the existence of falsity in the execution of the Affidavit of Third Party Claim, the commissioner was convinced that there was indeed an anomaly which constituted a violation of the Canons of Professional Responsibility. The commissioner added that a lawyer ought to have known that he could not acquire the property of his client in litigation. The circumstances surrounding the transfer of ownership of properties tended to indicate an anomalous transfer aimed to subvert the proper administration of justice. The numerous discrepancies in the transfer document, some dismissed as clerical errors and other explained by incredulous stories by way of affidavits, compounded by the letter left uncontested by Respondent Paderanga, inevitably lead a rational person to conclude that Paderanga might not have acquired the properties prior to the judicial action of execution. Even if the City Prosecutor found no prima facie case of falsification, the commissioner felt that there was substantial evidence to support a conclusion that respondent Atty. Paderanga had committed an ethical violation and should be meted the penalty of suspension of five (5) years from the practice of law.
2. The Supreme Court held that under Section 27 of Rule 138 of the Rules of Court, a member of the Bar may be disbarred or suspended on any of the following grounds: (1) deceit; (2) malpractice or other gross misconduct in office; (3) grossly immoral conduct; (4) conviction of a crime involving moral turpitude; (5) violation of the lawyer’s oath; (6) willful disobedience of any lawful order of a superior court; and (7) willfully appearing as an attorney for a party without authority. In the present case, the Court finds respondent administratively liable for engaging in dishonest and deceitful conduct.
3. Although respondent denied having acted as counsel for therein defendants, the Spouses Panaguinip, in the forcible entry case filed by complainant, his involvement in the said case was still highly suspect. After the writ of execution had been issued on February 18, 2002, he went with defendants-spouses to amicably settle with complainant on two separate occasions, ostensibly to protect his own interests. Complainant claimed that during those two meetings, respondent did not disclose his ownership over the properties in question, leading the former to believe that respondent was, in fact, the counsel for defendants-spouses. He averred that respondent and defendant spouses initially offered a settlement of P3,000.00, which he refused as he had already spent P10,000.00 on court expenses. On their second meeting, the offer had been raised to P25,000.00, which again complainant declined, as the latter had, at that time, spent P25,000.00. Complainant maintained that it was only after said meetings had transpired that he received the affidavit of a third-party claim executed by respondent, stating that the latter was the owner of the property and motor vehicle. On the other hand, respondent claimed that the meetings took place in April 2002, after he had filed a third-party claim.
4. Had respondent been the rightful owner of a parcel of land and motor vehicle that were still registered in the name of defendants-spouses, he should have immediately disclosed such fact immediately and filed a third- party claim, as time was of the essence. Moreover, in their letter dated March 1, 2002, defendants-spouses did not mention any transfer of ownership of the said properties to respondent, as the former still believed that they owned the same. The continued possession and ownership by defendants-spouses was also attested to by a certain Brigida Lines, who executed an Affidavit in favor of complainant.
5. Based on the foregoing, the Court was inclined to believe that when complainant and defendants-spouses had failed to reach an agreement, respondent came forward as a third-party claimant to prevent the levy and execution of said properties. He, therefore, violated Rule 1.01 of the Code of Professional Responsibility, which provides that a lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct. Under this rule, conduct has been construed not to pertain exclusively to the performance of a lawyer’s professional duties. A lawyer may be disbarred or suspended for misconduct, whether in his professional or private capacity, which shows him to be wanting in moral character, honesty, probity and good demeanor; or unworthy to continue as an officer of the court.
6. Notably, the Court said, in the falsification case earlier filed, complainant was able to cite several irregularities in the documents evidencing the deeds of sale in question: the non-registration by respondent of the sale transactions; a Community Tax Certificate number appearing on said deeds which was different from that issued to defendant Ma. Teresa Panaguinip; and the erasures of the entries pertaining to said deeds from the Notarial Register.
Of these irregularities, only one can directly be attributable to respondent – his non-registration of the sale transaction. He argues that the sales were valid despite non-registration, and maintained that it was perfectly normal and regular for a lawyer like him to choose not to register and cause the transfer of title of the land and the FUSO jeepney after the execution of the Deeds of Sale, so the transactions would not appear in the records of the Bureau of Internal Revenue, the City Assessor or the Register of Deeds, on the Land Registration Office. He added that he had also bought four lots, which had not yet been transferred to his name, for estate planning or speculation purposes. He claimed that he found it legally wise not to immediately register after buying so that he would not pay for the expenses of the sale and transfer twice, once he decided to sell; or place them in his children’s name, and avoid paying estate and inheritance taxes upon his death.
While the act of registration of a document is not necessary in order to give it legal effect as between the parties, requirements for the recording of the instruments are designed to prevent frauds and to permit and require the public to act with the presumption that a recorded instrument exists and is genuine. However, while the RTC was correct in holding that said omission on respondent’s part may not be considered falsification, he had shown an intent to defraud the government, which had the right to collect revenue from him, as well as from other persons who may have an interest in said properties.
7. Respondent violated the Lawyer’s Oath, which mandates that he should support the Constitution, obey the laws as well as the legal orders of the duly constituted authorities therein, and do no falsehood or not consent to the doing of any in court. Further, he has also failed to live up to the standard set by law that he should refrain from counseling or abetting activities aimed at defiance of the law or at lessening confidence in the legal system. Respondent’s act of non-registration of the deeds of sale to avoid paying tax may not be illegal per se; but, as a servant of the law, a lawyer should make himself an exemplar for others to emulate. The responsibilities of a lawyer are greater than those of a private citizen. He is looked up to in the community. Respondent must have forgotten that a lawyer must refrain from committing acts which give even a semblance of impropriety to the profession.
