A.C. No. 10558 - Ruby vs. Espejo

Michael Ruby (complainant) and his mother, Felicitas Ruby Bihla (Felicitas), engaged Atty. Erlinda B. Espejo and Atty. Rudolph Dilla Bayot (respondents) in a case for cancellation and nullification of deeds of donation.
A retainer agreement dated August 29, 2009 was signed between the complainant, Felicitas, and Atty. Espejo, stipulating:

Payment of P100,000 as acceptance fee to Atty. Espejo, with P70,000 paid immediately and P30,000 after the hearing on the issuance of a temporary restraining order (TRO).
Payment of P5,000 per hearing as appearance fees, later apparently reduced to P4,000.

On September 15, 2009, the complainant gave Atty. Espejo P50,000 for the filing fee.

On September 16, 2009, Atty. Espejo filed the complaint in the Regional Trial Court (RTC), Branch 219, Quezon City.
Actual filing fee paid was only P7,561; Atty. Espejo failed to account for the excess P42,439 despite demand letters.

On September 23, 2009, Atty. Espejo requested complainant to pay Atty. Bayot P30,000 as the remaining acceptance fee balance, before the scheduled TRO hearing. Complainant objected, but gave P8,000 partial payment plus P4,000 appearance fee for the September 22 hearing.
On September 25, 2009, Atty. Espejo requested P50,000 as a "representation fee" for filing a separate TRO petition, later reduced to P20,000.

On September 24, 2009, RTC denied the complainant's prayer for a TRO; complainant only learned about this on November 3, 2009.
On October 23, 2009, complainant deposited P4,000 to Atty. Bayot as appearance fee for hearing on motion to serve summons through publication, scheduled at 2:00 p.m. same day. Atty. Bayot did not attend court but met complainant, claiming clerk assured resolution.
Respondents allegedly failed to update complainant thereafter; Atty. Bayot denied being their counsel and claimed only collaborating counsel.

IBP-CBD ordered respondents to file answers; Atty. Bayot denied being counsel of record but admitted drafting pleadings, receiving P8,000 (part of acceptance fee) and P4,000 (appearance fee).
Atty. Espejo denied requesting P50,000 filing fees, attributed missing accounting to flood destruction of files, and said the P50,000 "representation fee" was for injunction bond.
Investigating Commissioner recommended censure; IBP Board of Governors increased penalty to one-year suspension.
Atty. Espejo died; case dismissed as to her; suspension affirmed as to Atty. Bayot.
Complaint asks whether Atty. Bayot violated the Code of Professional Responsibility to warrant disciplinary sanction.

Whether Atty. Rudolph Dilla Bayot violated the Code of Professional Responsibility in his handling of the legal matter of Michael Ruby, particularly regarding:

Establishment of lawyer-client relationship despite not being counsel of record;
Receipt and accounting of fees paid by the complainant;
Alleged neglect or failure to diligently represent the complainant;
Failure to keep complainant informed of case status;
Liability for the amounts paid to Atty. Espejo; and
Whether the sanction of suspension from the practice of law is warranted.