G.R. No. A.C. No. 10808. April 25, 2023.
DANIEL SCOTT MCKINNEY, COMPLAINANT, VS. ATTYS. JERRY BAÑARES AND RACHEL S. MIÑON-BAÑARES, RESPONDENTS.

FACTS

Complainant Daniel Scott McKinney, an American, entered into Engagement Contracts with Bañares & Associates Law Offices in 2006 and 2007 as CEO/President of Asia Properties, Inc. and its subsidiary, later named Tinaga Resorts Corporation (the Corporation). In 2011, the Corporation, through the law office, bought several lots, including lots 92 and 94 (subject lots). Atty. Jerry Bañares, as retained counsel, volunteered to act as the buyer and have the lots registered under his name for subsequent transfer to the Corporation. Complainant gave respondents a total of ₱891,838.14 for full payment and titling expenses. Complainant alleged that Atty. Bañares failed to fully pay the sellers and transfer the titles. He also alleged that Atty. Rachel S. Miñon-Bañares actively practiced law by signing acknowledgment receipts for the sale while serving as Municipal Mayor of Corcuera, Romblon, in violation of the Local Government Code. Complainant later filed an Affidavit of Desistance, stating he lost interest and that sellers confirmed full payment by Atty. Bañares. The IBP Investigating Commissioner recommended a one-year suspension for Atty. Miñon-Bañares and disbarment for Atty. Bañares, which the IBP Board adopted. A manifestation informed that Atty. Bañares had passed away.

ISSUE

Whether Atty. Jerry Bañares and Atty. Rachel S. Miñon-Bañares are administratively liable for violating the Code of Professional Responsibility.

RULING

Yes, both respondents are administratively liable.
The Court adopted the IBP’s findings but modified the penalties. Atty. Jerry Bañares violated Rule 1.01 and Canon 9 of the CPR. He engaged in unlawful, dishonest, and deceitful conduct by acting as a “dummy” vendee to secure free patent titles in his name for lands the Corporation was not qualified to acquire, circumventing the Public Land Act, and subsequently conveying them via a simulated deed of sale. This constituted a scheme to illegally acquire public land. However, due to his death pending final judgment, the administrative case against him is dismissed pursuant to prevailing jurisprudence, without prejudice to any civil liability.
Atty. Rachel S. Miñon-Bañares violated Section 90(a) of the Local Government Code and Canon 9 of the CPR by engaging in the unauthorized practice of law while serving as an incumbent municipal mayor. Her acts of signing acknowledgment receipts in connection with the sale of the subject lots, which were part of the legal transactions of her law firm for a client, constituted practice of law. Her defense that she merely acted as a broker or followed up on the titling was unavailing, as these acts were integral to the law firm’s legal service to the client. She is suspended from the practice of law for one year.