FACTS:

Complainant Paz C. Sanidad filed a complaint for disbarment against respondent Atty. Joseph John Gerald M. Aguas for dishonesty, grossly deceitful conduct, malpractice, and violation of the Code of Professional Responsibility. Sanidad alleged that she entered into a verbal agreement with respondent and his brother for the sale of a co-owned property. She claimed to have made several payments to respondent and his brother by depositing money in their bank accounts, but no acknowledgment receipt was issued to her. Sanidad deposited a total of One Million One Hundred Fifty-Two Thousand Pesos (P1,152,000.00). However, respondent allegedly sent her demand letters and threatened her with eviction, and became unreachable after receiving the payments. Sanidad filed the disbarment complaint against respondent.

In his comment, respondent denied the allegations and claimed that Sanidad is facing eviction for non-payment of rentals. He asserted that Sanidad's occupation of the subject property was by mere tolerance and that she fabricated lies against him. Respondent further explained that the payments made by Sanidad were for rental of the property, not for the sale.

The case was referred to the Integrated Bar of the Philippines (IBP) for investigation. Respondent later manifested that he and Sanidad agreed to amicably settle, resulting in the dismissal of the civil case filed against him. Respondent turned over the title of the subject property to Sanidad without receiving payment. However, he lamented that only the civil case was dismissed and requested that all other cases be dismissed as well. Respondent maintained that he did not abuse his position as a lawyer in his dealings with complainant.

The IBP-CBD found respondent to have used his legal knowledge to defraud and mislead Sanidad. They recommended that respondent be warned, with the possibility of severe consequences for any repetition of similar acts. The Board of Governors of the IBP, however, reversed and set aside the recommendation and recommended that respondent be admonished.

ISSUES:

1. Whether or not Atty. Joseph John Gerald M. Aguas should be disbarred for dishonesty, grossly deceitful conduct, malpractice, and violation of the Code of Professional Responsibility.

RULING:

1. The Board of Governors of the Integrated Bar of the Philippines (IBP) recommended that Atty. Joseph John Gerald M. Aguas be admonished instead of disbarred for his actions. This was in contradiction to the earlier recommendation of the IBP-CBD that Atty. Aguas be given a warning. The Supreme Court has yet to issue its final ruling on the matter.

PRINCIPLES:

• Lawyers are expected to uphold the integrity of the legal profession and to act with honesty and good faith in their dealings with their clients.

• Lawyers must avoid any act of dishonesty or gross deceitful conduct which would undermine the trust and confidence of their clients.

• Lawyers who violate the Code of Professional Responsibility may be subject to disciplinary action, which may include disbarment, suspension, or admonition.