A.C. No. 13628 - Paez vs. Debuque

Petitioner Helen A. Paez (Paez) filed a Verified Complaint against respondent Atty. Alfonso D. Debuque (Atty. Debuque) for violations of the Code of Professional Responsibility (CPR) and the Lawyer's Oath.
The dispute involved an 800-square-meter lot in Barangay Pagduque, Dumangas, Iloilo, covered by Transfer Certificate Title No. T-210051 (subject realty).
The subject realty was mortgaged to Rural Bank of Dumangas for Paez's PHP 300,000.00 loan, facing foreclosure.

Paez, while incarcerated, agreed to sell the property to Atty. Debuque who was to pay off the existing loan first.
Three deeds of sale were executed with different terms:

First deed – "Deed of Absolute Sale with Assignment of Mortgage" – total consideration PHP 500,000.00; PHP 300,000.00 to Rural Bank and PHP 200,000.00 to Paez.
Second deed – "Deed of Absolute Sale" – purchase price PHP 300,000.00 payable solely to Paez, with taxes to be paid by Paez.
Third deed – also "Deed of Absolute Sale", signed only by Paez, terms same as second deed.

Paez maintained that original agreement (first deed) involved PHP 500,000.00 consideration split between bank and her, which was later reduced to PHP 300,000.00 payable only to her.
Paez appointed her sister, Raylene Paez-Rezano (Rezano), as attorney-in-fact for the sale deals.
Atty. Debuque agreed but failed to pay the balance in full, requesting a deed of sale preparation supposedly to send full payment.
Paez signed and sent the third deed but received no payment during her incarceration.
Upon release, Paez discovered the first deed signed by both parties from the Rural Bank indicating she lost any interest in the property.
Atty. Debuque denied knowledge of the first deed but showed her a second deed (involving Paez and Rezano), refused to pay the remaining balance claiming no debt.

November 29, 2012 – admitted paying PHP 250,000.00 total and advised Rezano to prepare a new deed to avoid tax penalties.
May 22, 2013 – claimed full payment of PHP 300,000.00 in installments by 2009.

In later filings, denied knowledge of the third deed, alleging it was prepared to evade taxes.
Maintained that only PHP 28,870.00 remained unpaid from the balance.

Only Paez attended mandatory conferences.
IBP Investigating Commissioner Joel L. Bodegon found Atty. Debuque liable for violating Canon 1, Rule 1.01 of the CPR (unlawful, dishonest, immoral, and deceitful conduct).
Made findings on fabricating and presenting contradictory deeds of sale and inconsistent payment accounts.
Recommended one-year suspension.
IBP Board adopted this and increased suspension to three years due to exploitation of Paez's incarceration situation.
Atty. Debuque’s motion for reconsideration was denied.

Whether respondent Atty. Debuque violated the Code of Professional Responsibility and Lawyer’s Oath by his acts involving the sale of the subject realty.
Whether the conflicting deeds of sale and questionable payment claims by Atty. Debuque constitute unlawful, dishonest, immoral, or deceitful conduct.
What penalty should be imposed on Atty. Debuque for his conduct.