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Pangasinan Electric Cooperative I (PANELCO I) REP. BY ITS GM, ROLANDO O. REINOSO VS. Atty.
Juan Ayar Montemayor

(AC No. 5739, September 12, 2007)
FACTS:
 Administrative complaint filed by PANELCO charging Atty. MONTEMAYOR with negligence that caused financial losses that reached
approx. P 16M.
 PANELCO alleged that MONTEMAYOR was negligent in handling the following:
o Civil case Rural Powe Corp v. PANELCO – lost in trial court, appealed to CA, but was dismissed due to MONTEMAYOR’s
failure to file required number of copies of Writ of Execution. Trial court’s adverse decision became final and totaled to
PANELCO’s loss of more than P 2M.
o Civil Case ECCO-ASIA v. PANELCO – again decision reached CA and was considered by the CA as abandoned due to failure
to serve and file Appellant’s Brief despite lapse of 2 granted motion of extensions. This case resulted to the loss of PANELCO
amounting to P13.8M.
 MONTEMAYOR informed petitioners of the adverse decision and he was confronted by the latter and all he could say was “npabayaan koi
tong kaso… ano gagawin natin?”
 As a consequence of the negligence, PANELCO was left into a dire financial situation, which caused difficualty in meeting its monthly
power bills with NAPOCOR.
 MONTEMAYOR was required to comment, but after being granted an extension of 15 days, he still failed to file one. Thus, was deemed
by the Court to have WAIVED such.
 Case was referred to IBP. In their mandatory conference, MONTEMAYOR admitted to all allegations.
 IBP - Commisioner – DISBARRED
 IBP - BOG - modified, SUSPENDED INDEFINITELY
ISSUE:
WON MONTEMAYOR guilty of committed gross negligence in handling complainant’s cases.
LAW/CANON: CANON 19
CANON 19 - A LAWYER SHALL REPRESENT HIS CLIENT WITH ZEAL WITHIN THE BOUNDS OF THE LAW.
RULING:
YES, Supreme Court rendered decision DISBARRING MONTEMAYOR.
He violated:
After a careful consideration of the records of the instant case, the Court agrees with the IBP in its findings and conclusion that respondent has been
remiss in his responsibilities.
The pertinent Canons of the Code of Professional Responsibility provide:
CANON 12 - A LAWYER SHALL EXERT EVERY EFFORT AND CONSIDER IT HIS DUTY TO ASSIST IN THE SPEEDY AND EFFICIENT
ADMINISTRATION OF JUSTICE.
xxxx
Rule 12.03 - A lawyer shall not, after obtaining extensions of time to file pleadings, memorandaor briefs, let the periodlapse without submitting the
same or offering an explanation for his failure to do so.
CANON 17 -- A LAWYER OWES FIDELITY TO THE CAUSE OF HIS CLIENT AND HE SHALL BE MINDFUL OF THE TRUST AND
CONFIDENCE REPOSED IN HIM.
CANON 18 - A LAWYER SHALL SERVE HIS CLIENT WITH COMPETENCE AND DILIGENCE.
xxxx
Rule 18.03 - A lawyer shall not neglect a legal matter entrusted to him and his negligence in connection therewith shall render him liable.
xxxx
CANON 19 - A LAWYER SHALL REPRESENT HIS CLIENT WITH ZEAL WITHIN THE BOUNDS OF THE LAW.
Manifestly, respondent has fallen short of the competence and diligence required of every member of the Bar in relation to his client. As
counsel for complainant, respondent had the duty to present every remedy or defense authorized by law to protect his client. When he
undertook his client's cause, he made a covenant that he will exert all efforts for its prosecution until its final conclusion. He should undertake
the task with dedication and care, and if he should do no less, then he is not true to his lawyer's oath.
For inexcusable neglect of his professional obligations to the prejudice of his client's interests, the IBP Investigating Commissioner recommended the
disbarment of respondent from the practice of law. The IBP Board of Governors, however, recommended that Atty. Juan Ayar Montemayor be
suspended indefinitely from the practice of law.
It is settled that the power to disbar must be exercised with great caution. Only in a clear case of misconduct that seriously affects the standing
and character of the lawyer as an officer of the Court and as a member of the bar will disbarment be imposed as a penalty.
The case of Atty. Montemayor is however different. He is guilty not only of his unjustified failure to file the appellant's brief of his client not
only once but twice. Moreover the Court notes with dismay the huge losses suffered by complainant PANELCO I in the total amount of
sixteen million pesos (PhP 16,000,000). Lastly, Atty. Montemayor demonstrated an utter lack of regard for the very serious charges against
him and a gross disrespect for the Court when he failed to file his comment after being required to file his response to the said charges.
Respondent could have presented sufficient justification for his inability to file the appellant's briefs but failed to do so.

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Pangasinan Electric Cooperative I (PANELCO I) REP. BY ITS GM, ROLANDO O. REINOSO VS. Atty.

Juan Ayar Montemayor

YES, Supreme Court rendered decision DISBARRING MONTEMAYOR.

The pertinent Canons of the Code of Professional Responsibility provide:

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