A.C. No. 11095. September 20, 2016. EUFEMIA A. CAMINO, COMPLAINANT, VS. ATTY. RYAN REY L. PASAGUI, RESPONDENT.
FACTS
Complainant Eufemia Camino, vendor of a property, engaged respondent Atty. Ryan Rey Pasagui for legal assistance concerning its sale. Atty. Pasagui, who had represented the original buyer, Congresswoman Mila Tan, advised Camino to rescind that sale and find a new buyer. He offered to facilitate the transfer of the property’s title to Camino’s name, citing costs of around P700,000, and to prepare a demand letter to Tan, which he never showed. Trusting his assurances, Camino gave him P120,000 for title processing and, upon his further advice, executed a Special Power of Attorney authorizing him to obtain a loan using her other property as collateral.
Camino later discovered that the loan from Perpetual Help Credit Cooperative, Inc. for P1,000,000 had been approved and its proceeds released to Atty. Pasagui on February 15, 2011, without her knowledge. He failed to account for these funds or process the title transfer. In April 2011, Atty. Pasagui arranged a meeting where Tan gave Camino P150,000, contradicting his earlier advice that the sale with Tan was cancelled. Subsequent investigations revealed he performed none of the promised legal services and misappropriated the loan proceeds and the P120,000.
ISSUE
Whether Atty. Ryan Rey Pasagui violated the Code of Professional Responsibility, warranting disciplinary action.
RULING
Yes, the Supreme Court disbarred Atty. Pasagui. The legal logic centers on his gross violation of Rule 1.01, Canon 1 of the Code, which prohibits lawyers from engaging in unlawful, dishonest, immoral, or deceitful conduct. His actions constituted a pattern of deceit and abuse of confidence. He deliberately misled Camino by fabricating the need for title transfer costs and the status of the loan, securing a power of attorney under false pretenses. His failure to render the promised legal services, coupled with his secret appropriation of the P1,000,000 loan proceeds and the P120,000, constitutes clear dishonesty and misappropriation.
The Court emphasized that a lawyer’s integrity is paramount. Atty. Pasagui’s conduct was not a mere lapse but a deliberate scheme exploiting his client’s trust for personal gain, eroding public confidence in the legal profession. His failure to account for the funds and return them upon demand aggravated his offense. The IBP Board of Governors’ finding of guilt was affirmed, but the penalty was modified from suspension to disbarment, reflecting the severity of his gross misconduct. The Court also ordered him to return the misappropriated amounts with legal interest and all relevant documents to the complainant.
