EN BANC
A.C. No. 10897. January 04, 2022
TONY PETER PARTSCH, Complainant, v. ATTY. REYNALDO A. VITORILLO, Respondent.
D E C I S I O N
HERNANDO, J.:
Before this Court is complainant Tony Peter Partsch's (Partsch) administrative complaint1 seeking the disbarment of respondent Atty. Reynaldo A. Vitorillo (Atty. Vitorillo).
Partsch's complaint:
In March 2012, Partsch, a Swiss national, desired to purchase a piece of beachfront real property located in Bayabas, Cagayan de Oro. Upon information of the adjacent land owners, Partsch sought Atty. Vitorillo in the latter's law office in Cagayan de Oro City.2chanRoblesvirtualLawlibrary
Atty. Vitorillo claimed ownership over 800 square meters of the said beachfront lot (subject property). He represented to Partsch that 100 square meters of the subject lot were already titled under his name. The remaining 700 square meters of the subject lot were still pending registration, but will allegedly be completed in three months' time.3 Atty. Vitorillo offered to sell to Partsch the 800 square-meter subject property for the total amount of P2,500,000.00, ten percent (10%) of which shall constitute down payment and the balance shall be paid upon delivery of the two titles within three months.4chanRoblesvirtualLawlibrary
On April 4, 2012, Partsch tendered a check in the amount of P230,000.00 and P20,000.00 in cash to Atty. Vitorillo as partial payment for the subject property. While Atty. Vitorillo gave Partsch a receipt for the transaction, no deed of absolute sale was executed. Instead, Atty. Vitorillo promised Partsch to draw the deed of absolute sale along with the land titles after three months.5chanRoblesvirtualLawlibrary
After three months, or in July 2012, Partsch followed up the written contract and the land titles. Partsch also inquired on the title over the 100-square-meter portion that Atty. Vitorillo represented to have been already registered in his name, and other documentary proof of Atty. Vitorillo's ownership over the other 700-square-meter portion of the subject property.6chanRoblesvirtualLawlibrary
Atty. Vitorillo, however, only offered the following excuses: (1) he cannot give the title to the 100-square-meter portion as it is his only access thereto; and (2) the 700-square-meter portion was given to him by his clients as compensation for legal services and which was still under litigation before the regional trial courts of Cagayan de Oro City. Atty. Vitorillo assured Partsch that his client's pending case shall soon be resolved and be granted in their favor, and that the title over the 700-square-meter portion shall be released in September 2012. Atty. Vitorillo also rescheduled his undertaking to deliver all the documents for the purchase to September 2012.7chanRoblesvirtualLawlibrary
In September 2012, Partsch again asked about Atty. Vitorillo's promise. Atty. Vitorillo answered that the case over the 700-square-meter portion of the subject property was not yet done, and thus, the titles could not still be delivered to Partsch. Atty. Vitorillo further advised Partsch to just possess the subject property and fence it. Partsch did not heed the advice, believing that he has no right to do so without the titles and the deed of absolute sale, and because there already existed a wooden structure on the subject property belonging to another person.8chanRoblesvirtualLawlibrary
On November 24, 2012, Atty. Vitorillo informed Partsch that he is no longer selling the subject property. As alternative, Atty. Vitorillo proposed for sale another lot located in the highlands. Partsch rejected the offer and demanded instead the reimbursement of his down payment plus interests. Atty Vitorillo refused, saying he needed to dispose of the land first and promising anew to prepare a deed of rescission of contract to sell. Partsch also asked for a promissory note for the return of Partsch's down payment.9chanRoblesvirtualLawlibrary
Like before, these promises only dried up. On November 26, 2012, Partsch sent Atty. Vitorillo a letter10 formally demanding the reimbursement of P250,000.00 plus one percent (1%) monthly interest from receipt of the letter under pain of legal action.
Atty. Vitorillo responded to the formal demand. In his November 29, 2012 letter11 to Partsch, Atty. Vitorillo told Partsch that, while he was vexed by Partsch letter and actions, they could proceed with the original sale transaction under the condition that Partsch pays in full the balance of P2,250,000.00 as they have initially stipulated.
Partsch declined Atty. Vitorillo's condition. On December 7, 2012, the parties ended up in a mediation proceeding before the Katarungang Pambarangay of Cugman, Cagayan de Oro City.12 During the hearing, Atty. Vitorillo scolded Partsch for sending him the formal demand letter. He further intimidated Partsch with a criminal case for unjust vexation unless the latter apologizes then and there. Afraid to jeopardize his visiting status in the country, Partsch did as he was told. He was also compelled to again grace Atty. Vitorillo with more time to reimburse his money without resorting to any court action.13chanRoblesvirtualLawlibrary
Two years passed and another formal demand letter to pay14 was sent to Atty. Vitorillo. The reimbursement, however, remained unpaid. Thus, on September 1, 2015, Partsch filed this complaint15 for disbarment against Atty. Vitorillo.
On December 9, 2015, the Court required Atty. Vitorillo to comment on the complaint.16chanRoblesvirtualLawlibrary
Atty. Vitorillo's comment:17chanRoblesvirtualLawlibrary
Atty. Vitorillo admitted that he entered into a written contract to sell18 the 800-square-meter subject property with Partsch but denied that he undertook to deliver the land titles within three months. It was Partsch who proposed the sale and enticed him with the 10% down payment of P250,000.00. Partsch knew of the nature and the status of the subject property beforehand. Atty. Vitorillo had not been dishonest as Partsch painted him to be and that he acted in utmost good faith in informing Partsch that the subject property was under litigation. Atty. Vitorillo attributed the delay in the delivery of the title to the 700-square-meter portion of the subject property to the trial court's eventual dismissal of the case.19chanRoblesvirtualLawlibrary
Atty. Vitorillo held himself responsible for the return of Partsch's P250,000.00 but not for the interest claimed. His reasons were that he was likewise unable to use the subject property since April 2012 when he allowed Partsch to enter the premises, and that his inability to deliver the title over the 700-square-meter portion was neither deliberate nor malicious.20chanRoblesvirtualLawlibrary
On August 1, 2016, the Court ordered Partsch to file a reply to Atty. Vitorillo's comment.21chanRoblesvirtualLawlibrary
Partsch's reply:22chanRoblesvirtualLawlibrary
Partsch maintained that Atty. Vitorillo had never furnished him a copy of any written contract to sell, much less had he signed any such contract. Atty. Vitorillo's omission to provide Partsch the requisite documents for the purchase of the 800-square-meter subject property allegedly meant that Atty. Vitorillo had never intended to be bound by their verbal agreement to sell the subject property, for which Partsch has already paid the down payment.23chanRoblesvirtualLawlibrary
It was also Atty. Vitorillo who had enticed Partsch to the transaction. Partsch had completely relied on Atty. Vitorillo's representations that the latter was the absolute owner of the subject property. The latter even advised Partsch that a foreigner like him can own a beach lot in the Philippines after he pays its price in full. Only after he paid the down payment and followed up on Atty. Vitorillo's promises did Partsch discover the fraud. Had he known the falsity of Atty. Vitorillo's statements, Partsch would never have given Atty. Vitorillo a single cent.24chanRoblesvirtualLawlibrary
Partsch insisted on Atty. Vitorillo's liability for payment of interest on the reimbursement owing to him, as well as moral damages and attorney's fees. Atty. Vitorillo acted in bad faith as he knew that he cannot deliver the subject property to Partsch, cancelled the sale, and now continues to refuse to return his down payment.25chanRoblesvirtualLawlibrary
On April 24, 2017,26 the Court referred the case to the Integrated Bar of the Philippines (IBP) for investigation, report, and recommendation.
Report and Recommendation of
the Integrated Bar of the
Philippines:27chanRoblesvirtualLawlibrary
In ignoring the constitutional prohibition against alienation of private lands to foreigners and by continuously refusing to return the money he received from Partsch, Atty. Vitorillo was deemed to have seriously impaired his status as a member of the Bar. The Investigating Commissioner of the IBP Commission on Bar Discipline (CBD) determined that Atty. Vitorillo's actuations and misrepresentations have ripened into willful and Gross Dishonesty and Gross Misconduct and deemed him guilty of violating Rule 1.01 of Canon 1 and Rule 7.01 of Canon 7 of the Code of Professional Responsibility (CPR).
The Investigating Commissioner recommended the imposition of the following penalty:
WHEREFORE, premises considered, it is recommended that Respondent, ATTY. REYNALDO A. VITORILLO be suspended from the practice of law for two (2) years.
RESPECTFULLY SUBMITTED.28 (Citation omitted.)
CANON 1 - A LAWYER SHALL UPHOLD THE CONSTITUTION, OBEY THE LAWS OF THE LAND AND PROMOTE RESPECT FOR LAW AND LEGAL PROCESSES.Rule 1.01 - A lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct.
Rule 1.02 - A lawyer shall not counsel or abet activities aimed at defiance of the law or at lessening confidence in the legal system.
x x x x
CANON 7 - A LAWYER SHALL AT ALL TIMES UPHOLD THE INTEGRITY AND DIGNITY OF THE LEGAL PROFESSION AND SUPPORT THE ACTIVITIES OF THE INTEGRATED BAR.x x x x
Rule 7.03 - A lawyer shall not engage in conduct that adversely reflects on his fitness to practice law, nor shall he whether in public or private life, behave in a scandalous manner to the discredit of the legal profession. (Emphasis supplied.)
KNOW ALL MEN BY THESE PRESENTS:
This Deed, made and executed by and among the Heirs of Eufracio and Pilar Cailo namely Eufracio Cailo, Jr., Charito Burlat, Amor Cailo, Eden Cailo, Juana Anislag, Ciolar Mabalacad, Josephine Cailo, Regina Cailo and Efren Cailo x x xWITNESSETH:
WHEREAS, Eufracio Cailo, Jr., Charito Burlat, Amor Cailo, Eden Cailo, Juana Anislag, Ciolar Mabalacad, Josephine Cailo, Regina Cailo and Efren Cailo are the substituted appellants [in] a civil case entitled, 'Rodrigo T. Caingin vs. Eufracio Cailo, Jr., Charito Burlat, Amor Cailo, Eden Cailo, Juana Anislag, Ciolar Mabalacad and Efren Cailo' docketed as CA-G.R. CV NO.72424-MIN decided by the x x x Court of Appeals and affirmed by the x x x Supreme Court in G.R. No. 193223 dated October 4, 2010;cralawlawlibrary
WHEREAS, subject of the case is the erroneous Free Patent award of Lot 35797, Cad-237 [hereinafter, main lot] x x x in favor of Rodrigo Caingin and the issuance of O.C.T. No. P-2521; in effect, the possession and ownership of Lot 35797, Cad-237 by Eufracio Cailo, Jr., Charito Burlat, Amor Cailo, Eden Cailo, Juana Anislag, Ciolar Mabalacad, Josephine Cailo, Regina Cailo and Efren Cailo as substituted appellants, are recognized;cralawlawlibrary
WHEREAS, in defending the rights of appellants, they have engaged the services of the law office of Atty. Reynaldo A. Vitorillo for a fee of a portion of the recovered Lot 35797, Cad 237.
WHEREAS, the parties have agreed to partition among themselves Lot 35797, Cad-237 with an area of 2,561 square meters into fourteen (14) Lots x x x
x x x x
That for and in consideration of the legal services rendered, the parties hereby cede and assign unto Atty. Reynaldo A. Vitorillo x x x Lot 35797-C and 35797-D more particularly described as follows:
x x x x
Lot 35797-C, PSD-10- _____ Portion of lot 35797, CAD. 237
x x x x
Area: Five Hundred (500) square meters, more or less.
x x x x
Lot 35797-D, PSD-10-_____ Portion of lot 35797, CAD. 237
x x x x
Area: Two Hundred (200) square meters, more or less.
That the Lot herein partitioned is not registered in the name of the heirs of Eufracio Cailo and Pilar L. Cailo, the parties have agreed to register the instrument under Act 3344.39 (Emphasis, underscoring, and items in brackets supplied.)
Public confidence in law and lawyers may be eroded by the irresponsible and improper conduct of a member of the bar. Thus, a lawyer should determine his conduct by acting in a manner that would promote public confidence in the integrity of the legal profession.48 (Emphasis supplied.)
x x x [Partsch]'s demand for the refund of the payment of Php250,000.00 which was paid to [Atty. Vitorillo] by virtue of a defective "Contract to Sell" is beyond and is not within the ambit of the delegated authority of the IBP-CBD. More importantly is the pronouncement of the Supreme Court in this regard in A.C. No. 6955, July 22, 2006, entitled "Mar Yuson v. Atty. Jeremias R. Vitan,""This Court will not act as a collection agency from faltering debtors, when the amount of the indebtedness is indefinite and disputed. x x x"49cralawredlibrary
Endnotes:
1 Rollo, pp. 1-3.
2 Id. at 1.
3 Id.
4 Id.
5 Id. at 1-2.
6 Id. at 2.
7 Id.
8 Id.
9 Id. at 3.
10 Id. at 27.
11 Id. at 28.
12 Id. at 29.
13 Id. at 3.
14 Id. at 30-31.
15 Id. at 1-6.
16 Id. at 40.
17 Id. at 47-48.
18 Id. at 44-45.
19 Id. at 47-48.
20 Id.
21 Id. at 54.
22 Id. at 57-61.
23 Id. at 58.
24 Id. at 58-59.
25 Id. at 60.
26 Per Report and Recommendation of the IBP Investigating Commissioner, p. 3 thereof, id. at 90.
27 Id. at 88-104.
28 Id. at 104.
29 Id. at 87.
30 Manalang v. Buendia, A.C. No. 12079, November 10, 2020.
31 Id.
32 Spouses Nocuenca v. Bensi, A.C. No. 12609, February 10, 2020.
33 Id.
34 Id.
35 Rollo, pp. 44-45.
36 Id. at 44.
37 Id. at 14-24.
38 Id. at 14-22.
39 Id.
40 Id. at 49-50; August 16, 2013 Order of the Regional Trial Court, Branch 18 of Cagayan de Oro City in Civil Case No. 2012-111; penned by Presiding Judge Dennis Z. Alcantar.
41 Id. at 51-53; September 9, 2015 Court of Appeals (CA) Resolution in CA-G.R. CV No. 03639-MIN; penned by Associate Justice Edgardo A. Camello and concurred in by Associate Justices Henri Jean Paul B. Inting (now a Member of this Court) and Rafael Antonio M. Santos.
42 Per Atty. Vitorillo's clients' Amended Petition for Cancellation of Free Patent Decree, p. 4 thereof; citing p. 18 of the Decision of the Court of Appeals dated January 28, 2010. (Id. at 11.)
43 Zabal v. Duterte, G.R. No. 238467, February 12, 2019.
44 Manalang v. Buendia, supra note 29.
45 Madria v. Atty. Rivera, 806 Phil. 774, 783-784 (2017), declared that "[u]nder Section 27, Rule 138 of the Rules of Court, a lawyer may be disbarred on any of the following grounds, namely: (1) deceit; (2) malpractice; (3) gross misconduct in office; (4) grossly immoral conduct; (5) conviction of a crime involving moral turpitude; (6) violation of the lawyers oath; (7) willful disobedience of any lawful order of a superior court; and (8) corruptly or willfully appearing as a lawyer for a party to a case without authority so to do."
46 A.C. No. 12209, February 18, 2020.
47 350 Phil. 412 (1998).
48 Id. at 430.
49 Rollo, p. 99.cralawredlibrary