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IRENE RAYOS-OMBAC v. ATTY. ORLANDO A. RAYOS

FACTS:

The petitioner, Mrs. Irene Rayos-Ombac, filed a petition for disbarment against her nephew, Atty. Orlando A. Rayos, claiming that he failed to comply with the standards of mental and moral fitness required of lawyers. In January 1985, the respondent persuaded the petitioner, who was 85 years old at the time, to withdraw all her bank deposits and entrust them to him for safekeeping. The respondent assured her that by doing so, the money would be excluded from her deceased husband's estate, thus preventing his other heirs from inheriting part of it. Relying on the respondent's advice, the petitioner withdrew P588,000.00 from the bank and deposited it in Union Bank under the name of the respondent's wife. The maturity date of the time deposit was set for May 22, 1985. However, despite the respondent's assurances, he failed to return the money as promised. On August 16, 1985, the respondent informed the petitioner that he could only return P400,000.00 and proposed a payment plan that the petitioner agreed to. But the respondent later issued checks that were dishonored due to insufficient funds. As a result, the petitioner filed a complaint for estafa against the respondent. It was also discovered that the respondent had filed a criminal case for estafa against the petitioner and had initiated other legal actions against her.

ISSUES:

  1. Whether or not Atty. Orlando Rayos should be disbarred for his failure to adhere to the standards of mental and moral fitness set for members of the bar.

  2. Whether or not Atty. Rayos should be held liable for the withdrawal and non-payment of the amount entrusted to him by Mrs. Irene Rayos-Ombac.

RULING:

  1. Atty. Orlando Rayos is disbarred from the practice of law.

  2. Atty. Rayos is held liable for the withdrawal and non-payment of the amount entrusted to him by Mrs. Irene Rayos-Ombac.

PRINCIPLES:

  • Lawyers are expected to uphold the standards of mental and moral fitness set for members of the bar. Failure to adhere to these standards may result in disbarment.

  • Lawyers who handle the funds of their clients have the duty to act with utmost good faith, honesty, and integrity. They are expected to protect and preserve the trust funds entrusted to their care and return them to their rightful owners upon demand.

  • Non-payment or non-return of entrusted funds may constitute a violation of the lawyer's fiduciary duty and may subject the lawyer to civil liability, criminal liability for estafa, and disciplinary action.