G.R. No. A.C. No. 14013, July 15, 2024
JYQ HOLDINGS & MGT. CORP. REPRESENTED BY CARLOS M. AMBROSIO III, COMPLAINANT, VS. ATTY. ZAFIRO T. LAURON, RESPONDENT.

FACTS

Complainant JYQ Holdings & Mgt. Corp. (JYQ), through its President Johnny Y. Quisumbing, engaged the legal services of respondent Atty. Zafiro T. Lauron in April 2016 to facilitate the ejectment of informal settlers from a property in Quezon City. Atty. Lauron submitted a Letter-Proposal detailing expenses totaling PHP 1.5 million, including PHP 300,000 for attorney’s fees, and stated the eviction would be done “preferably without the need for court intervention.” JYQ issued checks to Atty. Lauron totaling PHP 850,000, intended as “mobilization fund” and “downpayment for informal settlers and miscellaneous expenses.” Atty. Lauron failed to effect the eviction by the agreed date of December 2016, did not account for the money received, and did not update JYQ despite follow-ups. After JYQ severed the attorney-client relationship and demanded the return of the PHP 850,000 to no avail, it filed a disbarment complaint. In his defense, Atty. Lauron claimed he performed services, including forming a team and hiring surveyors, and had spent PHP 550,000 of the funds, with the remaining PHP 300,000 withheld as compensation for his services. The Integrated Bar of the Philippines Commission on Bar Discipline (IBP CBD) found Atty. Lauron liable for failing to account for the funds and recommended a six-month suspension.

ISSUE

Whether Atty. Zafiro T. Lauron violated the Code of Professional Responsibility (CPR) and should be disciplined.

RULING

Yes, Atty. Lauron violated the Code of Professional Responsibility. The Court adopted and affirmed the IBP CBD’s findings with modification. Atty. Lauron was found guilty of violating Rule 16.01 of the CPR for failing to account for the client’s funds received. He did not utilize the amounts in accordance with the purposes stated in his Letter-Proposal or the check vouchers, and he failed to provide sufficient evidence, such as official receipts, to substantiate his claimed expenses totaling PHP 550,000. His act of withholding the remaining PHP 300,000 without a proper accounting and without the client’s consent constituted unjustified retention of client funds. However, he was absolved of violations under Canon 17 (fidelity to client’s cause) and Canon 18, Rule 18.04 (keeping client informed), as the IBP CBD found he did act on the matter and provided updates. Considering his failure to account for the funds as a serious violation and following jurisprudence in analogous cases, the Court SUSPENDED Atty. Zafiro T. Lauron from the practice of law for ONE (1) YEAR, with a STERN WARNING that a repetition of the same or similar act will be dealt with more severely. He was also ORDERED to return the amount of PHP 850,000 to complainant JYQ Holdings & Mgt. Corp.