G.R. No. A.C. No. 4244. June 17, 1997
BUHANGIN RESIDENTS AND EMPLOYEES ASSOCIATION FOR DEVELOPMENT, INC. (BREAD), represented by its President ARTURO S. ASUMBRADO, complainant, vs. ATTY. CORAZON NUÑEZ-MALANYAON, respondent.

FACTS

A disbarment complaint was filed against Atty. Corazon Nuñez-Malanyaon by Arturo S. Asumbrado, President of BREAD. The complaint alleged that Atty. Malanyaon committed criminal falsification by preparing and notarizing two irreconcilably inconsistent deeds of sale for the same parcels of land in Buhangin, Davao City, with a total area of about 6.0475 hectares. One deed stated the consideration as P535,400.00, while the other stated P4,535,400.00, yet both bore the same notarial details (Doc. No. 310, Book No. VI, Page No. 62, Series of 1990). The lands were originally owned by Cherinita B. Rodriguez and Isagani B. Rodriguez Jr.
The factual background, as reconstructed from submitted documents and pleadings, reveals that BREAD, with the assistance of CODE Foundation, negotiated to purchase the lands from the Rodriguezes for P4,535,400.00, to be financed through a loan from the National Home Mortgage Finance Corporation (NHMFC) under its Community Mortgage Program. To reduce the Rodriguezes’ initial cash outlay for taxes and fees, the parties agreed on a procedure: (1) execute a deed of sale stating a consideration of only P535,400.00; (2) register this deed, with the Rodriguezes advancing the lower taxes and fees, and transfer titles to BREAD; (3) BREAD would then obtain a loan for the actual price of P4,535,400.00; (4) upon receipt of the loan proceeds, the Rodriguezes would deliver a second deed reflecting the correct price and pay the additional taxes. The first deed (for P535,400.00) was executed and registered, and titles were issued to BREAD. The loan of P4,535,400.00 was obtained from NHMFC and paid to the Rodriguezes. However, Atty. Malanyaon failed to cancel the first deed and substitute it with the second, or to pay the additional fees, due to her heavy workload.
Asumbrado, in his complaint, presented a different version, claiming the agreed price was only P535,400.00, and that the second deed for P4,535,400.00 was submitted to NHMFC without BREAD’s knowledge, leading to a foreclosure for non-payment of the higher loan amount.

ISSUE

Whether Atty. Corazon Nuñez-Malanyaon should be disbarred for allegedly preparing and notarizing two inconsistent deeds of sale, constituting falsification of public documents.

RULING

The Supreme Court DISMISSED the disbarment petition for utter lack of merit. The Court found that the documents submitted, including a letter-guaranty from NHMFC and a real estate mortgage referencing a loan of P4,535,400.00, conclusively established that the true and agreed purchase price was P4,535,400.00, not P535,400.00. The deed for P535,400.00 was a deliberately reduced figure to minimize initial tax expenses, as part of the agreed procedure. The Court noted that the deed for P4,535,400.00 was the original, and the lower-priced deed was a copy with the price altered. The evidence showed that Asumbrado and BREAD were fully aware of the true price and the loan amount, as reflected in the mortgage documents and titles issued in BREAD’s name. The disbarment complaint was grounded on false and misleading allegations. Consequently, the Court ordered Arturo S. Asumbrado to show cause why he should not be punished for contempt for attempting to foist falsities upon the Court and for abuse of court processes.