Thursday, December 9, 2010

Disbarred for nonpaymentof debts

MANUEL C. YUHICO vs. ATTY. FRED L. GUTIERREZ, A.C. No. 8391, Nov. 23, 2010



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In his Position Paper, Yuhico manifested that the Supreme Court, in Huyssen v. Atty. Gutierrez,[6] had already disbarred Gutierrez from the practice of law for gross misconduct, in view of his failure to pay his debts and his issuance of worthless checks.



Subsequently, in a Resolution dated December 11, 2008, the, IBP-CBD found Gutierrez guilty of non-payment of just debts and ordered him to return the amount of Ninety Thousand Pesos (P90,000.00) to Yuhico, with interest until full payment.



In view of the previous disbarment of Gutierrez, the IBP-CBD recommended to the Court that, instead of rendering the instant case moot, Gutierrez should be disbarred anew effective upon the expiration of the sanction pursuant to the March 26, 2004 Supreme Court Decision. The IBP-CBD explained that while we do not have jurisprudence on the issue of double or multiple disbarment, the American jurisprudence, however, recognizes double or multiple disbarments as well as the minimum requirement of five (5) years for readmission to the Bar.



On December 11, 2008, the IBP Board of Governors, in Resolution No. XVIII-2008-649, resolved to adopt the report and recommendation of the IBP-CBD and approve it with modification as to the payment of the amount of Ninety Thousand Pesos (P90,000.00), this time, without interest.



We sustain the findings of the IBP, but with modification as to its recommendations.



We have held that deliberate failure to pay just debts constitute gross misconduct, for which a lawyer may be sanctioned with suspension from the practice of law. Lawyers are instruments for the administration of justice and vanguards of our legal system. They are expected to maintain not only legal proficiency, but also a high standard of morality, honesty, integrity and fair dealing so that the people’s faith and confidence in the judicial system is ensured. They must, at all times, faithfully perform their duties to society, to the bar, the courts and to their clients, which include prompt payment of financial obligations. They must conduct themselves in a manner that reflects the values and norms of the legal profession as embodied in the Code of Professional Responsibility.[7]



In the instant case, there is no question as to Gutierrez's guilt. His admission of the loan he contracted and his failure to pay the same leaves no room for interpretation. Neither can he justify his act of non-payment of debt by his dire financial condition. Gutierrez should not have contracted loans which are beyond his financial capacity to pay.



Likewise, we cannot overlook Gutierrez's propensity of employing deceit and misrepresentations for the purpose of obtaining debts without the intention of paying them. Records show Gutierrez's pattern of habitually making promises of paying his debts, yet repeatedly failing to deliver. The series of text messages he sent to Yuhico promising to pay his loans, while simultaneously giving excuses without actually making good of his promises, is clearly reprehensible. Undoubtedly, his acts demonstrate lack of moral character to satisfy the responsibilities and duties imposed on lawyers as professionals and as officers of the court.



We also note that in Huyssen v. Atty. Gutierrez,[8] the Court had already disbarred Gutierrez from the practice of law for gross misconduct due to non-payment of just debts and issuance of bouncing checks.


In view of the foregoing, while we agree with the findings of the IBP, we cannot, however, adopt its recommendation to disbar Gutierrez for the second time, considering that Gutierrez had already been previously disbarred. Indeed, as the IBP pointed out, we do not have double or multiple disbarment in our laws or jurisprudence. Neither do we have a law mandating a minimum 5-year requirement for readmission, as cited by the IBP. Thus, while Gutierrez's infraction calls for the penalty of disbarment, we cannot disbar him anew.



WHEREFORE, Resolution No. XVIII-2008-649 dated December 11, 2008, of the IBP, which found FRED L. GUTIERREZ guilty of GROSS MISCONDUCT, is AFFIRMED. He is ORDERED to PAY the amount of Ninety Thousand Pesos (P90,000.00) to the complainant immediately from receipt of this decision with interest.



Let a copy of this Decision be furnished and properly recorded in the Office of the Bar Confidant, to be appended to the personal record of Gutierrez; the Integrated Bar of the Philippines; and the Office of the Court Administrator, for circulation to all courts in the country for their information and guidance.



This Decision shall be immediately executory.


SO ORDERED.



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