A.C. No. 12669 - Diaz vs. Mandagan

Atty. Maria Nympha C. Mandagan filed a Verified Complaint with the Office of the Deputy Ombudsman alleging that the construction, rehabilitation, and repair of a barangay health center in Brgy. Alibagu, Ilagan, Isabela, encroached upon her property without her consent.
The complaint asserted that former Mayor Josemarie L. Diaz and the members of the Sangguniang Panlungsod committed irregularities in the approval and execution of the project, including misappropriation of public funds and the granting of unwarranted benefits to SMT Construction.

Mr. Diaz approved the resolution of the Sangguniang Panlungsod authorizing the construction without her consent.
Mr. Diaz awarded the project to SMT Construction, which allegedly involved direct release and misuse of public funds.
The project’s execution led to the alleged pocketing of funds intended for the acquisition of property where the barangay hall and health center should have been built.

The Ombudsman, in a Joint Resolution dated June 4, 2015, dismissed the complaint on the ground that:

The dispute related to encroachment should have been addressed via the appropriate civil action.
Atty. Mandagan failed to substantiate claims of conspiracy, abuse of authority, grave misconduct, or violations of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act) and RA 6713 (Code of Conduct and Ethical Standards for Public Officials).

In response to the meritless complaint against him, Mr. Diaz filed an administrative case with the IBP Commission on Bar Discipline (CBD) against Atty. Mandagan on December 21, 2015.
The grounds for the IBP case centered on the alleged violation of Section 27, Rule 138 of the Rules of Court and the Code of Professional Responsibility (CPR), condemning her for filing unsubstantiated and frivolous charges.

In its Report and Recommendation dated June 27, 2017, the IBP-CBD found that Atty. Mandagan:

Had perjured herself by filing a complaint that was recklessly, whimsically, and capriciously unsubstantiated.
Misused legal processes by addressing property encroachment through criminal action instead of pursuing a civil remedy.

Based on these findings, the IBP-CBD recommended that she be suspended from the practice of law for a period of two (2) years.

On May 19, 2018, the IBP Board of Governors resolved to adopt the findings of the IBP-CBD, suspending Atty. Mandagan from the practice of law for two (2) years.
Atty. Mandagan filed a Motion for Reconsideration (with a reservation to file a supplemental motion) seeking to mitigate the penalty.
On February 16, 2019, the IBP Board of Governors issued a Resolution partially granting the motion by reducing the suspension to one (1) year.
Dissatisfied with the reduction, Atty. Mandagan subsequently filed a Verified Petition for Review contesting her suspension.

Whether Atty. Mandagan violated the Code of Professional Responsibility by filing an unsubstantiated, frivolous, and meritless complaint against Mr. Diaz before the Ombudsman.
Whether her conduct in relation to the complaint demonstrated a disregard for the ethical standards and legal processes expected of a member of the bar.