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7) MELVIN D. SMALL vs ATTY.

JERRY BANARES
A.C. No. 7021 February 21, 2007

Facts: Complainant engaged the services of respondent in connection with several


complaints to be filed against one Lyneth Amar (Amar). Complainant paid respondent
the acceptance fee.

On later date, complainant paid respondent the filing fees for the cases against Amar.
Respondent then wrote a demand letter for Amar and talked to Amar on the phone.
Respondent also informed complainant that he would be preparing the documents for
the cases. Complainant consistently communicated with respondent regarding the
status of the cases. But respondent repeatedly told complainant to wait as respondent
was still preparing the documents.

After five months, complainant required respondent to present all the documents
respondent had prepared for the cases against Amar. Respondent was not able to
present any document. This prompted complainant to demand for a full refund of the
fees he had paid respondent. Complainant hired the services of Atty. Simbillo to recover
the money from respondent. But respondent failed to return the money. Hence,
complainant filed a case for disbarment before the Integrated Bar of the Philippines
(IBP) against respondent.

Issue: Whether the acts of respondent warrant disciplinary action.

Ruling: YES. The Code provides that a lawyer shall serve his client with competence
and diligence. He shall keep the client informed of the status of his case and shall
respond within a reasonable time to the client’s request for information. Here,
respondent’s failure to communicate with complainant was an unjustified denial of
complainant’s right to be fully informed of the status of the cases. Moreover, it appears
that respondent failed to file the appropriate cases against Amar. By his inaction,
respondent disregarded his duties as a lawyer.

The Code also mandates that every lawyer shall hold in trust all moneys of his client
that may come into his possession. Furthermore, a lawyer shall account for all money
received from the client and shall deliver the funds of the client upon demand. Since
respondent failed to render any legal service to complainant and he failed to file a case
against Amar, respondent should have promptly accounted for and returned the money
to complainant. But even after demand, respondent did not return the money.
Respondent’s failure to return the money to complainant upon demand is a violation of
the trust reposed on him and is indicative of his lack of integrity.
Moreover, respondent’s misconduct is aggravated by his failure to file an answer to the
complaint and his refusal to appear at the mandatory conference. The IBP rescheduled
the mandatory conference twice to give respondent a chance to answer the complaint.
Still, respondent failed to appear, exhibiting his lack of respect for the IBP and its
proceedings.

The relation of attorney and client is highly fiduciary, requiring utmost good faith, loyalty,
and fidelity on the part of the attorney. In this case, respondent clearly fell short of the
demands required of him as a member of the Bar.

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