Navarro v. YgoÑa
REITERATIONFacts
The Antecedents: Complainants Spouses Felix and Fe Navarro obtained a loan of ₱300,000.00 from Mercy Grauel, with the subject property as collateral. As additional security, they executed a Deed of Absolute Sale over the property, which Grauel admitted was to avoid foreclosure. The Spouses Navarro alleged they signed the Deed of Absolute Sale with blanks, driven by dire need and lack of familiarity with the transaction. The Promissory Note, Real Estate Mortgage, and Deed of Absolute Sale were all executed on November 22, 2002. The Real Estate Mortgage was notarized by respondent Atty. Margarito G. Ygoña on the same date, but the Deed of Absolute Sale was notarized only on October 22, 2004. Procedural History: The Spouses Navarro filed a criminal complaint for Estafa through Falsification of Public Document against Grauel and Atty. Ygoña, and the instant administrative case against Atty. Ygoña. The criminal complaint against Atty. Ygoña was dismissed for lack of proof of conspiracy. The City Prosecutor found probable cause for Estafa against Grauel. The Investigating Commissioner of the Integrated Bar of the Philippines (IBP) recommended the revocation of Atty. Ygoña's notarial commission, disqualification as a notary public for two years, and suspension from the practice of law for three to six months. The IBP Board of Governors adopted this recommendation, revoking Atty. Ygoña's notarial commission, disqualifying him for two years, and suspending him for three months. The IBP Board of Governors denied Atty. Ygoña's motions for reconsideration. The Petition: The Spouses Navarro filed an adverse claim and a civil case for Quieting of Title. They also filed the instant administrative case against Atty. Ygoña for alleged irregularities in the notarization of the Deed of Absolute Sale, specifically concerning the Community Tax Certificates (CTC) used and the fact that the Deed of Absolute Sale was not included in Atty. Ygoña's notarial report for 2004.
Issue(s)
Whether respondent Atty. Ygoña was grossly negligent in the performance of his duties as a notary public. Whether the Deed of Absolute Sale was fictitious and its signatures forged. Whether the Deed of Absolute Sale constituted pactum commissorium.
Ruling
The Supreme Court affirmed the resolution of the IBP Board of Governors finding respondent Atty. Ygoña administratively liable for gross negligence in the performance of his duties as notary public. His notarial commission, if still existing, was revoked, and he was disqualified from being commissioned as a notary public for a period of two (2) years. He was sternly warned that a repetition of the same or similar act would be dealt with more severely. The Court modified the penalty by removing the suspension from the practice of law.
Ratio Decidendi
On the issue of gross negligence in the performance of duties as a notary public: The Court found Atty. Ygoña liable for gross negligence. Notarization is a public function invested with public interest, requiring utmost care and diligence from notaries public. The Court noted the glaring discrepancies in the Community Tax Certificates (CTCs) used in the Deed of Absolute Sale, raising serious doubt as to whether the Spouses Navarro indeed appeared before Atty. Ygoña for notarization, as required by the Rules on Notarial Practice. Furthermore, the Certification from the Office of the Clerk of Court confirmed that the subject Deed of Absolute Sale was not included in Atty. Ygoña's notarial report for 2004. This failure to record the transaction in his notarial register, as mandated by the Rules on Notarial Practice, warrants a sanction. The Court agreed with the IBP that Atty. Ygoña was remiss in the exercise of his notarial functions, although it disagreed with the Commissioner's basis that Atty. Ygoña should have been aware of pactum commissorium as that issue should be resolved in a separate civil action. The Court also noted that the issue of forgery should be passed upon in a proper civil or criminal case. On the issue of the Deed of Absolute Sale being fictitious and its signatures forged: The Court held that the issue of whether the Deed of Absolute Sale was indeed forged is civil, and perhaps criminal, in nature, and should be passed upon in a proper case. Therefore, this administrative case did not definitively resolve the forgery claim. On the issue of the Deed of Absolute Sale constituting pactum commissorium: The Court stated that the issue of whether the Deed of Absolute Sale was in the nature of a pactum commissorium should be resolved in a separate civil action. The Court found that the Commissioner's conclusion that Atty. Ygoña should have been aware of a possible badge of pactum commissorium was not the proper basis for administrative liability in this case.
Main Doctrine
A notary public must exercise utmost care and diligence in performing their duties to preserve public confidence in the integrity of notarized documents. Failure to do so constitutes gross negligence, warranting revocation of notarial commission and disqualification from being commissioned as a notary public.