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FACTS: Catherine Joie P. Vitug sought the service of respondent Atty. Diosdado M. Rongcal who was introduced to her by her former classmate. Complainant asked Atty. Rongcal to represent her in the support case she was going to file against her former lover, Arnulfo Aquino. Soon after, herein complainant and respondent started having sexual relationship with each other. According to Vitug, respondent also gave her sweet inducements such as the promise of a job, financial security for her daughter, and his services as counsel for the prospective claim for support against Aquino.

On 9 February 2001, respondent allegedly convinced complainant to sign an Affidavit of Disclaimer which the latter signed without reading the said affidavit. On 14 February 2001, respondent allegedly advised complainant that Aquino gave him P150,000.00 cash and P58,000.00 in two (2) postdated checks to answer for the medical expenses of her daughter. Instead of turning them over to her, respondent handed her his personal check in the amount of P150,000.00 and promised to give her the balance of P58,000.00 soon thereafter. However, sometime in April or May 2001, respondent informed her that he could not give her the said amount because he used it for his political campaign as he was then running for the position of Provincial Board Member of the 2nd District of Pampanga

Complainant argues that respondent's acts constitute a violation of his oath as a lawyer. She filed an administrative case against Rongcal which was referred to the Integrated Bar of the Philippines. It was then recommended that respondent be suspended from the practice of law for six (6) months and that he be ordered to return to complainant the amount of P58,000.00 within two months. The same was approved by the IBP Board of Governors. Respondent then filed a Motion for Reconsideration with Motion to Set Case for Clarificatory Questioning with the IBP and a Motion to Reopen/Remand Case for Clarificatory Questioning with the Supreme Court.


ISSUES: 
(1) Whether or not respondent be disbarred for immorality
(2) Whether or not respondent’s act of preparing and notarizing the Affidavit, a document disadvantageous to his client, is a violation of the Code.


HELD: 
(1) NO. One of the conditions prior to admission to the bar is that an applicant must possess good moral character. Said requirement persists as a continuing condition for the enjoyment of the privilege of law practice, otherwise, the loss thereof is a ground for the revocation of such privilege. The Court has held that to justify suspension or disbarment the act complained of must not only be immoral, but grossly immoral. A grossly immoral act is one that is so corrupt and false as to constitute a criminal act or so unprincipled or disgraceful as to be reprehensible to a high degree. On sexual relation and on respondent’s subsequent marriage, by his own admission, respondent is obviously guilty of immorality in violation of Rule 1.01 of the Code which states that a lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct. The Court find credence in respondent's assertion that it was impossible for her not to have known of his subsisting marriage, complainant’s allegations of deceit were not established by clear preponderant evidence required in disbarment cases.

(2) NO. It was not unlawful for respondent to assist his client in entering into a settlement with Aquino after explaining all available options to her. The law encourages the amicable settlement not only of pending cases but also of disputes which might otherwise be filed in court. Rule 1.04, Canon 1 of the Code of Professional Responsibility states that: A lawyer shall encourage his clients to avoid, end or settle a controversy if it will admit of a fair settlement. As complainant voluntarily and intelligently agreed to a settlement with Aquino, she cannot later blame her counsel when she experiences a change of heart. Suspicion, no matter how strong, is not enough in the absence of contrary evidence, what will prevail is the presumption that the respondent has regularly performed his duty in accordance with his oath.

WHEREFORE, premises considered, this Court finds Atty. Diosdado M. Rongcal GUILTY of immorality and impose on him a FINE of P15,000.00 with a stern warning that a repetition of the same or similar acts in the future will be dealt with more severely.

The charge of misappropriation of funds of the client is REMANDED to the IBP for further investigation, report and recommendation within ninety (90) days from receipt of this Decision.

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