Sismaet v. Cruzabra

A.C. No. 5001 · 2020-09-07 · J. GAERLAN, J.: · Primary: Ethics; Secondary: Remedial
REITERATION

Facts

The Antecedents: Complainant Petra Durum Sismaet was a plaintiff in a civil case seeking the nullification of a sale and reconveyance of real property concerning Transfer Certificate of Title (TCT) No. T-32952. Sismaet sought to register an affidavit of adverse claim on this TCT with the Registry of Deeds of General Santos City, which was annotated by respondent Atty. Asteria E. Cruzabra, then Registrar of Deeds. Subsequently, a mortgage contract involving the property was annotated on the TCT, followed by an Affidavit of Cancellation of Adverse Claim filed by Esteban Co, Jr., one of the defendants in the civil case. Sismaet alleged that Atty. Cruzabra improperly allowed these annotations despite knowing the property was under litigation, forcing Sismaet and her co-plaintiffs to amend their complaint. Procedural History: Following the annotations, Sismaet filed a motion to cite Atty. Cruzabra in contempt, which was denied. Thereafter, Sismaet filed the present disbarment complaint with the Office of the Bar Confidant, accusing Atty. Cruzabra of gross ignorance of the law, violation of duty to courts, and breach of trust as Registrar of Deeds. Atty. Cruzabra, in her defense, argued that the adverse claim had expired and her duty to annotate was ministerial. She also raised the issue of forum shopping, noting the similarity to the contempt motion. The case was referred to the Integrated Bar of the Philippines (IBP) for investigation. The IBP-IBP Commission on Bar Discipline recommended dismissal, concurring with Atty. Cruzabra's defense regarding the adverse claim's expiration and noting a prior investigation by the Land Registration Authority that found no administrative liability. The Petition: Sismaet petitioned the Supreme Court to administratively sanction Atty. Cruzabra for allowing the annotation of a mortgage contract and an affidavit of cancellation of adverse claims on TCT No. T-32952, despite the property being under litigation and Atty. Cruzabra herself being impleaded in the civil case. The core issue before the Supreme Court was whether Atty. Cruzabra's actions, performed in her capacity as Registrar of Deeds, constituted misconduct affecting her qualification as a lawyer or demonstrating moral delinquency, thereby falling under the disciplinary jurisdiction of the Bar. Sismaet argued that an adverse claim can only be cancelled by court order and that Atty. Cruzabra's reliance on her interpretation of the law was unjustified, demonstrating ignorance of land registration laws and usurping the trial court's authority.

Issue(s)

Whether Atty. Cruzabra should be administratively sanctioned for allowing the annotation of the mortgage contract and affidavit of cancellation of adverse claims on TCT No. T-32952 despite knowledge of the pending Civil Case No. 4749. Whether the acts of Atty. Cruzabra as Registrar of Deeds constitute gross ignorance of the law and violation of her duties as a lawyer.

Ruling

The Supreme Court found Atty. Cruzabra administratively liable and suspended her from the practice of law for six (6) months. The Court held that while the duty of a Registrar of Deeds is ministerial, they may refuse registration if the property is under litigation. Atty. Cruzabra's act of annotating the cancellation of the adverse claim, despite knowing the property was under litigation and she herself was impleaded, demonstrated gross ignorance of land registration laws and pre-empted the trial court's exclusive power to cancel the adverse claim. This violated the Lawyer's Oath and Canon 11 of the Code of Professional Responsibility. However, considering the absence of bad faith and the findings of the Land Registration Authority, coupled with Atty. Cruzabra's previous disciplinary record, a six-month suspension was deemed appropriate.

Ratio Decidendi

On Whether Atty. Cruzabra should be administratively sanctioned for allowing the annotation of the mortgage contract and affidavit of cancellation of adverse claims on TCT No. T-32952 despite knowledge of the pending Civil Case No. 4749: The Court ruled in the affirmative. While the registration of instruments by a Registrar of Deeds is generally a ministerial duty, this rule admits of exceptions, particularly when the ownership of the real property covered by the instrument is under litigation. In this case, Atty. Cruzabra was aware of Civil Case No. 4749, where the property was being litigated, and she herself was impleaded therein. Therefore, the more prudent course of action was to refuse the registration of Co's affidavit of cancellation. By annotating the cancellation, Atty. Cruzabra effectively removed the protection afforded by Sismaet's adverse claim and falsely indicated to third parties that the controversy over the property had abated. This action demonstrated an unjustifiable ignorance of land registration laws and jurisprudence, which clearly states that an adverse claim can only be cancelled by a court after a hearing. Her reliance on her own interpretation of PD 1529 was unjustified. On Whether the acts of Atty. Cruzabra as Registrar of Deeds constitute gross ignorance of the law and violation of her duties as a lawyer: The Court found that Atty. Cruzabra's actions constituted gross ignorance of the law and violated her duties as a lawyer. Gross ignorance of the law is defined as the disregard of basic rules and settled jurisprudence, or the commission of a gross or patent, deliberate or malicious error, which connotes a blatant disregard of clear and unambiguous provisions of law because of bad faith, fraud, dishonesty, or corruption. By unilaterally cancelling Sismaet's adverse claim without a court order, Atty. Cruzabra pre-empted the trial court's exclusive power to cancel the adverse claim. This act violated the Lawyer's Oath, specifically Section 20(b) of Rule 138 of the Rules of Court, which mandates attorneys to observe and maintain the respect due to courts of justice and judicial officers, and Canon 11 of the Code of Professional Responsibility, which enjoins lawyers to observe and maintain such respect and insist on similar conduct by others. Although there was no showing of corrupt or malicious intent to harm Sismaet, the act itself demonstrated a profound lack of understanding of fundamental land registration principles and the proper respect due to judicial proceedings.

Main Doctrine

The Supreme Court reiterated that while the acts of a Registrar of Deeds are generally ministerial, they may refuse registration of instruments if the property is under litigation. The unilateral cancellation of an adverse claim without a court order is a violation of established jurisprudence and can subject the Registrar, if also a lawyer, to disciplinary action for gross ignorance of the law and violation of the Lawyer's Oath and the Code of Professional Responsibility. The IBP's jurisdiction over government lawyers is limited to misconduct that violates the Lawyer's Oath or the Code, but the Supreme Court retains ultimate disciplinary authority.

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