Domingo-Agaton v. Atty. Cruz, A.C no.

11023, May 4, 2021

PER CURIAM

Atty. Nini D. Cruz is disbarred for grave misconduct, including qualified theft and
betrayal of trust, after deceiving and misappropriating a client's manager's check meant
for repurchasing an ancestral home, resulting in the Court ordering Cruz to refund the
client P2 million.

FACTS:

Domingo-Agaton hired Cruz in 2013 to help her reacquire an ancestral home that was foreclosed
by the Philippine National Bank (PNB). Cruz deceived Domingo-Agaton by proposing that she
could still buy back the property from PNB and drafted a Letter of Intent for the repurchase.
Domingo-Agaton gave Cruz a manager's check for P2 million, which Cruz claimed would be
delivered to the RTC. However, Cruz misappropriated the check and used it to settle the
obligation of another client in a different case. Domingo-Agaton discovered the misappropriation
and filed a criminal complaint for qualified theft against Cruz.

ISSUE:

WON Atty. Cruz should be disbarred for grave misconduct, qualified theft, estafa, and betrayal
of trust.

RULING:

Atty. Nini D. Cruz should be disbarred and her name should be stricken from the Roll of
Attorneys. The court found that Domingo-Agaton provided substantial evidence to prove the
allegations against Cruz. Cruz's dishonesty, deceit, and fraudulent conduct in misappropriating
the manager's check and misleading the RTC constituted grave misconduct and violated her
Lawyer's Oath. Possession of good moral character is a core qualification for members of the bar,
and Cruz's actions demonstrated her unfitness and inability to discharge the duties of a lawyer.
Cruz was ordered to refund the amount of P2 million to Domingo-Agaton, plus 6% interest per
annum from the date of demand.

RATIO:

The court based its decision on Rule 1.01 of the Code of Professional Responsibility, which
defines grave misconduct as an act contrary to justice, honesty, modesty, or good morals.

The court also cited Section 27, Rule 138 of the Rules of Court, which allows for disbarment or
suspension of attorneys for deceitful and dishonest acts.

Previous cases where lawyers were disbarred for misappropriating client funds were referred to,
emphasizing the importance of good moral character for members of the bar.
The court concluded that Cruz's actions warranted the extreme penalty of disbarment and ordered
her to refund Domingo-Agaton's money.