A.M. No. MTJ-00-1336 - Sevilla vs. Salubre

A verified complaint for disbarment dated June 24, 1998, was filed against Atty. Ismael L. Salubre—then a Municipal Trial Court Judge of Tagum, Davao del Norte—charging him with violations of Cannons 16 and 17 of the Code of Professional Responsibility.
The complaint originated from the client, Petra M. Sevilla, who had earlier retained respondent as her legal counsel in a civil case involving repurchase and damages claims.

Prior to his appointment as judge, respondent acted as legal counsel in Civil Case No. 91-01 (“Sps. Petra Sevilla and Sancho Sevilla vs. Sps. Shem J. Alfarero, et al.”) where, on December 26, 1990, complainant transferred P45,000.00 to him.
Instead of consigning the amount with the trial court as required, respondent deposited the money in his name at the Family Savings Bank, Panabo, Davao Province, and subsequently misappropriated the funds for his personal use without complainant’s consent.

April 14, 1994: Promissory note to pay P45,000.00 in June 1994 or thereafter.
October 17, 1994: Another promissory note promising payment on or before January 31, 1995.
May 9, 1995: Issued a note for a total of P63,000.00 (P45,000.00 principal plus interest) due on or before June 30, 1995.

Numerous requests for extensions were submitted via telegrams and letters (on July 8, 1994; January 30, 1995; February 28, 1995; June 28, 1995; August 1, 1995; and May 23, 1996) based on processing delays of his loans with PNB and Land Bank, delaying the payment.

On August 21, 1996, a demand letter from the complainant’s daughter noted a new total of P77,787.59 (P45,000.00 as principal plus accrued interest) and threatened court action if payment was not made soon.
In response, respondent issued two checks:

Both checks were dishonored on November 4, 1997 due to a closed account, prompting complainant’s further demand via a letter dated November 15, 1997.

On November 25, 1998, the case was referred to the Office of the Court Administrator (OCA) for evaluation.
The OCA recommended that the respondent be allowed to file his comment even though the acts occurred prior to his judicial appointment and that his explanation should directly address the allegations.
In his subsequent comments (filed March 31, 2000), respondent contended that the received amount was for appearance fees and litigation expenses, and claimed that the matter was settled via an Affidavit of Desistance executed by the complainant on August 9, 1999.
However, the OCA found his contentions unpersuasive, noting that his signatures on receipts and his failure to return the funds promptly demonstrated misconduct.

Whether respondent Judge Ismael L. Salubre violated Canon 16 of the Code of Professional Responsibility by misappropriating and failing to promptly return client funds.
Whether the subsequent settlement, including the Affidavit of Desistance and dismissal of the criminal case for Estafa, precludes administrative sanctions.
Whether respondent’s conduct also constituted a violation of Canon 17 or the Code of Judicial Ethics by failing to avoid the appearance of impropriety.
Whether the series of repeated promises, extensions, and dishonored checks evidences deliberate misconduct regardless of the civil or criminal outcomes.