LEGAL ETHICS 2019 EH 308

CASE 14. A-1 Financial Services inc, vs Atty Laarni Valerio. A.C. No. 8390, July 2, 2010.

Topic: Code of Professional Responsibility. Canon 1- Duty to uphold the

Constitution and the laws.

Facts:

o On November 2001, Atty. Laarni N. Valerio loaned an amount of 50,000 to A-1

Financial Services Inc. She postdated a check in the amount of 50,000 to secure the
payment of the loan, however upon presentation the check was later dishonored due
to insufficient funds. She was unable to pay the loan despite repeated demands.
o A complaint was then filed against the Atty. Valerio on November 10, 2003, in
violation of Batas Pambansa Blg. 22. A warrant of arrest was later issued after she
failed to answer the complaint and appear during her arraignment despite orders
and notices from the court.
o An administrative complaint was also filed later in 2006 against Atty. Valerio
before the Integrated Bar of the Philippines (IBP). However once again, the lawyer
failed to attend the disciplinary hearings set by the IBP despite due notice.
o The respondent’s mother, Gorgonia Valerio explained in a letter addressed to the
IBP Commission on Bar Discipline (IBP-CPD) that her daughter had been
diagnosed with schiz0prenia and thus could not properly respond to the complaint
against her.
o The IBP-CPD recommended that Atty. Valerio be suspended from the practice of
law for 2 years having found her guilty of gross misconduct. This was later modified
by the IBP Board of Governors which instead ordered only a 1 year suspension from
the practice of law for the respondent.

Issue: Whether or not respondent is guilty of gross misconduct and violation of the
Code of Professional Responsibility

Ruling: The resolution of the IBP is AFFIRMED with MODIFICATION. She is

SUSPENDED FOR 2 YEARS from the practice of law and is warned that a repetition
of a similar act will be dealt with more severely.

Holding:

As ruled in Barrientos vs Libiran-Meteoro, the deliberate failure to pay just debts

and issuances of worthless checks constitute gross misconduct for a which a lawyer
may be sanction with the suspension from the practice of law. Lawyers must conduct
themselves in a manner that reflects the values and norms of the legal profession
embodied in the Code of Professional Responsibility.
LEGAL ETHICS 2019 EH 308

In the case at bar, the respondent’s act of making a partial payment for the loan is
proof that there was indeed an obligation on her part to pay the loan.

As ruled by the IBP-CBP, the Court also finds unmeritorious, Mrs. Valerio’s
justification the justification that her daughter is suffering from a health condition
which has prevented her from properly responding to the complaint against her, in
the absence of a medical certificate from a licensed physician.

Moreover, aside from the respondents issuance worthless checks and failure to pay
her debts, her disregard of the IBP and the court’s orders conduct, illustrates Atty.
Valerio’s failure to live up to the values and norms of the legal profession as
embodied in the Code of Professional Responsibility.

Legal principle:
Canon 1 — A lawyer shall uphold the constitution, obey the laws of the land
and promote respect for law and for legal processes.

Rule 1.01 — A lawyer shall not engage in unlawful, dishonest, immoral or

deceitful conduct.