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KELD STEMMERIK v. ATTY. LEONUEL N. MAS

FACTS:

Complainant Keld Stemmerik, a Danish resident, sought legal advice from Atty. Leonuel N. Mas about acquiring real property in the Philippines. Complainant trusted respondent and agreed to purchase a specific property in Zambales through him, paying a fee of P400,000. Respondent prepared contracts and agreements, including a deed of sale, and received the full purchase price of P3.8 million from complainant. However, when complainant tried to contact respondent to inquire about registering the property in his name, respondent became elusive and unresponsive. Complainant later discovered that aliens cannot own land in the Philippines and that the property was inalienable. Complainant filed a complaint for disbarment against respondent, alleging serious misconduct and fraudulent acts. Respondent failed to file an answer or position paper, and he did not attend the scheduled conference. The Commission on Bar Discipline (CBD) found respondent to be an embezzler who misused his professional status to deceive complainant. The CBD recommended respondent's disbarment, and the Board of Governors of the IBP adopted this recommendation, with the modification that respondent return P4.2 million to complainant. It was concluded that service of the complaint and other orders on respondent's abandoned law office was sufficient notice.

ISSUES:

  1. Whether the respondent misled the complainant regarding the legality of a foreigner acquiring real property in the Philippines.

  2. Whether the respondent committed unethical acts and serious misconduct warranting disbarment.

RULING:

  1. Yes. The respondent misled the complainant by falsely advising that a foreigner could legally acquire real property in the Philippines, against the clear mandate of the Constitution.

  2. Yes. The respondent committed numerous unethical acts, including preparing falsified documents, deceitfully obtaining money from the complainant, and absconding with the funds, all of which justify his disbarment.

PRINCIPLES:

  1. Prohibition on Alien Land Ownership: Section 7, Article XII of the Philippine Constitution forbids the transfer of private land to aliens, except in cases of hereditary succession, as reaffirmed in Krivenko v. Register of Deeds.

  2. Lawyer's Oath and Professional Responsibility: Lawyers must uphold the Constitution and laws, and avoid unlawful, dishonest, immoral, or deceitful conduct (Canon 1, Rule 1.01, Code of Professional Responsibility).

  3. Trust and Loyalty: Lawyers must observe fairness and loyalty in all dealings with clients, holding in trust all money and properties (Canons 15 and 16, Code of Professional Responsibility).

  4. Deceit and Fraud: Lawyers must not counsel activities aimed at defiance of the law or lessen confidence in the legal system (Rule 1.02, Code of Professional Responsibility). Misappropriation of client funds and misleading clients constitute criminal and professional violations.

  5. Neglect of Legal Duties: Failing to update records with the IBP regarding changes in address and contact information can contribute to the perception of deceit and non-accountability.

  6. Disbarment as a Penalty: Engaging in fraudulent actions and deceiving clients warrants the severest penalty of disbarment to protect the integrity of the legal profession and public confidence.