SC disbars lawyer for misappropriating P67 million in client funds

3 weeks ago 15

February 20, 2025 | 12:04pm

This file photo shows the seal of the Supreme Court.

Philstar.com / EC Toledo

MANILA, Philippines — The Supreme Court has disbarred a lawyer for gross misconduct after he misappropriated his client’s funds amounting to P60 million.

In a statement on Tuesday, February 18, the high court announced that lawyer Demosthenes Tecson was disbarred for violating Canon III of the Code of Professional Responsibility and Accountability (CPRA) after “violating his duty of fidelity to the law.”

“Atty. Tecson had received for his client P134 million in just compensation for an expropriation case but only remitted P53 million, keeping the rest as his attorney’s fees and for the alleged senatorial campaign of former Justice Secretary Leila de Lima,” the Supreme Court said in a statement on February 18. 

In a statement sent to reporters on Wednesday, De Lima said she was not involved in the acts of Tecson.

"I vehemently deny any association with disbarred lawyer Demosthenes Tecson and his claim that he donated to my senatorial campaign. I do not know him from Adam. He is definitely not a part of my legal team,” De Lima said. 

What happened before

Tecson was hired by Mamerta Lizada and three other individuals to represent them in an expropriation case before the Regional Trial Court (RTC).

The RTC ruled in favor of the petitioners, awarding them P134 million. According to the Supreme Court, Tecson personally received the funds but only remitted P53 million to his clients.

He claimed that the remaining amount was used as attorney's fees and for the senatorial campaign of former Justice Secretary Leila de Lima.

The petitioners later filed an administrative disbarment case against Tecson with the Integrated Bar of the Philippines (IBP).

Tecson further alleged that part of the remaining funds was used as a "facilitation fee" for a "PR man" to expedite payment, supposedly with the petitioners' consent.

However, the IBP found him guilty of violating his duty of fidelity under Canon III of the CPRA and recommended his disbarment.

Ruling

The Supreme Court adopted the IBP’s findings and recommendations.

According to the high court, Canon III of the CPRA mandates lawyers to uphold the Constitution and laws, aid in the administration of justice and advocate for their clients’ interests.

This includes promptly accounting for client funds, using them for their intended purpose, and returning any unused portion.

Misappropriation occurs when a lawyer fails to properly manage a client’s money.

Failure to return funds upon request creates a presumption of misappropriation for personal benefit, breaching the client’s trust, the high court said.

In this case, Tecson failed to refute this presumption. His claim of paying a “PR man” lacked evidence.

Even if true, the high court emphasized that such an act would constitute bribery, which lawyers must never engage in.

The Supreme Court stressed that a lawyer’s duty to account for client funds must align with their obligation to obey the law and use those funds only for lawful purposes.

The high court disbarred Tecson, effective immediately, and ordered him to return the unremitted P67 million to the petitioners.

As of writing, the Supreme Court has yet to upload a copy of the full decision.

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