A.C. No. 11653 - Philippine Island Kids International Foundation, Inc. vs. Pallugna

Case Summary (A.C. No. 11653)

Petitioner and Respondent

Petitioner seeks disciplinary action against respondent for violations of Rule 138 of the Rules of Court and the Code of Professional Responsibility (CPR), alleging deceitful, corrupt and unethical conduct in relation to the intimidation, inducement and concealment of the child complainant. Respondent denies culpable intent, admits certain factual contacts (part-ownership of Black Water; meetings with AAA and BBB), and contends the contacts concerned employment opportunities rather than the suppression of testimony.

Key Dates and Procedural Posture

April 2012: PIKIFI rescued prostituted female children, including AAA.
June 26, 2012: NBI recommended prosecution of Collins (rape) and Maglinte (qualified trafficking).
September 28, 2012: OCP found probable cause to indict Collins for rape; filed Information before the RTC.
2012–2016: Multiple incidents of concealment and attempts to prevent AAA’s court attendance, including meetings at respondent’s bar.
Early 2016: Collins apprehended; RTC hearings set for 2016.
May–September 2016: AAA and BBB were taken to Maramag, Bukidnon and prevented from attending hearings; PIKIFI later effected their rescue and coordinated with authorities.
March 10, 2017: PIKIFI filed the complaint for disbarment.
June 8, 2018: IBP Investigating Commissioner issued Report and Recommendation (recommended suspensions totaling three years).
July 12, 2018 and June 17, 2019: IBP Board of Governors adopted recommendation and denied reconsideration.
Supreme Court decision: Respondent disbarred and name ordered stricken from the Roll of Attorneys.

Applicable Law and Ethical Standards (1987 Constitution; Rules & Codes)

Constitution (1987): Fundamental duty of attorneys to uphold the Constitution and the rule of law; as officers of the court, lawyers owe fidelity to legal process and public trust.
Rules of Court, Rule 138: Section 20(a) enumerates duties of attorneys (allegiance to the Republic and obedience to law). Section 27 sets grounds for disbarment or suspension (deceit, malpractice, gross misconduct, violations of oath).
Code of Professional Responsibility (CPR): Key canons and rules invoked include Canon 1 (Rules 1.01–1.03), Canon 7 (Rule 7.03), Canon 10 (Rules 10.01, 10.03), Canon 12 (Rule 12.07), Canon 15 (Rule 15.07), and Canon 19 (Rule 19.01).
Penal law referenced administratively: Presidential Decree No. 1829 (Obstruction of Apprehension and Prosecution) — DOJ recommended filing of information for obstruction of justice against respondent and others.

Material Facts and Sequence of Misconduct

PIKIFI rescued AAA in April 2012 and assisted her in filing a rape complaint against Collins; Maglinte was implicated for trafficking. OCP later filed an Information against Collins.
Between 2012 and 2016 there were multiple attempts to hide AAA and prevent her court appearances. On November 30, 2012, Maglinte and two women took AAA to meet an “attorney”; AAA was rescued in front of respondent’s bar.
In 2016 respondent met AAA and BBB; evidence shows respondent offered money to AAA (P600 initially; P250 for subsequent nonappearances) and promised P30,000 after dismissal of the case, and/or induced BBB to accept employment as a security guard in Maramag where AAA would be kept out of sight.
AAA and BBB were transported to Maramag, lodged in an isolated site under supervision of Black Water personnel; AAA missed hearings on May 31, August 16 and August 23, 2016. Respondent nonetheless moved for dismissal due to AAA’s absence.
PIKIFI, after monitoring AAA’s social media, arranged a rescue with local authorities; AAA returned and resumed participation in hearings.
Respondent also allegedly engaged AAA’s sister, CCC, offering P30,000 and providing small sums to help search and hide AAA from October 2016 to April 2017.
There is a prior allegation (2010 criminal case) that respondent caused another child complainant (DDD) to be sent to Davao to avoid hearings; respondent did not refute this allegation in the proceedings, and the Court treated silence as an implied admission.

Respondent’s Position and Admissions

Admitted part-ownership of Black Water and that he met AAA and BBB; characterized his relationship with Collins as a past attorney-client relationship and denied improper conduct.
Maintained that meetings were for legitimate job referrals; denied offering money in consideration for non-appearance, denying threats against BBB’s family, and denied conditioning employment on AAA’s silence.
Did not provide convincing explanations for material inconsistencies found by the investigating commissioner.

IBP Investigating Commissioner’s Findings and Recommendation

The Investigating Commissioner found respondent’s account implausible: it was improbable that a co-accused (Maglinte) would refer AAA’s boyfriend for legitimate employment, and the remote, heavily guarded assignment in Maramag undermined the innocence of the employment explanation.
Credibility of respondent was impaired by inconsistent and baseless explanations; the commissioner concluded respondent, together with co-actors, used BBB to access and conceal AAA to defeat the rape prosecution.
Recommended suspensions totaling three years for multiple CPR violations (Canon 1, Canon 7, Canon 10, Canon 12, Canon 19), with suggested sequential service of suspensions given aggravating circumstances. IBP Board of Governors adopted the recommendation.

Issue Presented

Whether the IBP Board of Governors correctly found respondent liable for professional misconduct — specifically, lawyering beyond the bounds of the Lawyer’s Oath and the CPR — and whether the imposed sanction was appropriate.

Court’s Legal Analysis

The Court reaffirmed the elevated duties of lawyers as officers of the court: to uphold the Constitution, obey the laws, preserve public trust, and assist the administration of justice. A lawyer’s zealous defense of a client does not permit deceit, exploitation of the vulnerable, or misuse of procedural rules.
Specific CPR provisions were invoked to demonstrate the nature of respondent’s misconduct: Canon 1 (prohibition on dishonest or deceitful conduct and counseling activities that undermine legal processes); Canon 7 (conduct bringing discredit to the profession); Canon 10 (candor and fairness to the court; prohibition on misleading the court or misusing procedure); Canon 12 (duty not to harass or so inconvenience a witness as to impede justice); Canon 15 (candor and fairness in client dealings); Canon 19 (use of fair and honest means to attain client objectives).
The Court found credible the facts that respondent: (a) met privately and clandestinely with a child complainant at his bar without counsel or parental knowledge; (b) induced the minor with monetary offers on multiple occasions to abscond from court; (c) orchestrated the concealment of AAA by using his security agency and intermediaries to transport and keep her in an isolated guarded assignment; (d) persisted in seeking dismissal of the case on speedy-trial grounds despite his own machinations causing the complainant’s absence; and (e) attempted to involve the complainant’s sister in further concealment efforts.
The Court emphasized respondent’s exploitation of a 15-year-old child (with limited understanding of legal processes) and held that his conduct constituted manipulation and exploitation of the weak and vulnerable, impairing the administration of justice and bringing shame to the profession.
Respondent’s prior disciplinary history (previous suspension for misuse of procedural rules) and his silence on another similar imputation (concerning DDD) led the Court to treat the silence as an implied admission under established jurisprudence. Repeat transgressions and recidivism are significant

Case Syllabus (A.C. No. 11653)

Parties

Complainant: Philippine Island Kids International Foundation, Inc. (PIKIFI), a non-governmental organization providing developmental and humanitarian aid to street children; official representative in the disbarment complaint was Virgelia V. Demata, designated by PIKIFI Board Resolution No. 2017-003.
Respondent: Atty. Alejandro Jose C. Pallugna, an attorney and part-owner of Black Water Security Agency and owner/operator of Flamenco/Flamenco Cafe & Bar (referred to in parts of the rollo as Flamingo Restaurant/Bar).
Other persons named in the events: Michael John Collins (Collins) — accused in the underlying criminal case; Sheena "Choy Choy" Maglinte (Maglinte) — alleged accomplice; AAA — a child victim and complainant in the underlying rape case (identity withheld pursuant to statutes and rules); BBB — AAA’s boyfriend and former PIKIFI beneficiary; Pretty Mae (Mae) — Collins’ wife; Noel Magto/Magtu — Black Water representative/driver; Elvis Dajis — Black Water manager; "Romy" (alias Maldito) — security guard in Maramag; "Bataan" — security guard; CCC — AAA’s sister; other named security guards and individuals investigated or mentioned in DOJ Resolution.

Caption and Procedural Posture

Case docketed as A.C. No. 11653, decided en banc on November 23, 2021, by the Supreme Court (Per Curiam decision).
Complaint for disbarment filed March 10, 2017 by PIKIFI against Atty. Pallugna for violations of Rule 138 of the Rules of Court and the Code of Professional Responsibility (CPR).
Integrated Bar of the Philippines (IBP) Investigating Commissioner Abelardo P. De Jesus submitted a Report and Recommendation (dated June 8, 2018); IBP Board of Governors adopted the findings and recommended a three-year suspension by Resolution dated July 12, 2018; IBP denied Atty. Pallugna’s reconsideration by Resolution dated June 17, 2019.
Department of Justice (DOJ) issued a Resolution dated March 2, 2017 recommending dismissal of the Serious Illegal Detention complaint but finding probable cause to indict Atty. Pallugna and others for Obstruction of Justice under PD No. 1829, with recommended bailbond amounts.
Supreme Court adopted IBP findings but modified the penalty and ultimately disbarred Atty. Pallugna; ordered name stricken from Roll of Attorneys effective immediately; directed furnishing copies to Bar Confidant, IBP, and Court Administrator for circulation.

Underlying Criminal Case and Investigation (facts relevant to complaint)

Sometime in April 2012, PIKIFI rescued several female children prostituted in Divisoria, Cagayan de Oro City, and took custody to protect and assist them.
PIKIFI helped AAA (then 10 years old) file a complaint against Collins (an American national) and Maglinte.
NBI submitted findings June 26, 2012 recommending prosecution of Collins for Rape under Article 266-A (as amended by RA 8353) and Maglinte for Qualified Trafficking under RA 9208.
OCP Joint Resolution dated September 28, 2012 dismissed complaint against Maglinte but found probable cause to indict Collins for Rape and filed an Information before the RTC (docketed as Family Court Case No. 2012-511, NPS Nos. X-06-INV-12F-2284).
Rescued children escaped PIKIFI shelter on August 4, 2012; were taken by Mae to where Collins was staying, then moved to Lumbia and prevented from leaving; they escaped back to PIKIFI on August 5, 2012.
Repeated attempts were made to hide AAA and prevent court attendance; on November 30, 2012 Maglinte and two unidentified women took AAA toward an "attorney’s" residence but a PIKIFI social worker rescued AAA in front of Flamenco Cafe & Bar, owned by Atty. Pallugna.

Subsequent developments in witness status and protective measures

PIKIFI applied for AAA’s admission to DOJ Witness Protection Program; DOJ denied application because hearing did not push through as Collins was still at large.
AAA remained under PIKIFI custody participating in education and counseling and was reintegrated with family by end of 2015.
Collins was apprehended in Ozamiz City in early 2016; RTC set case for hearing April 12, 2016.
AAA (then 15) met with Atty. Pallugna (through Maglinte) in February 2016; Atty. Pallugna allegedly told AAA not to appear for April 12, 2016 hearing in exchange for P600 plus P250 for each subsequent non-appearance; AAA accepted P600 and agreed not to attend hearings. AAA nonetheless attended the April 12, 2016 hearing accompanied by a PIKIFI social worker.

Alleged scheme to hide AAA and coerce non-appearance

After AAA attended the April 12 hearing, PIKIFI received later subpoenas; AAA could not be located by mid-May 2016 and family said she went to Iligan City for work.
On May 19, 2016 Maglinte contacted AAA and BBB and told them Atty. Pallugna wanted to see them at Flamenco Cafe & Bar; Atty. Pallugna allegedly offered BBB a security job in Maramag, Bukidnon with weekly salary P2,500 on condition BBB bring AAA and that their whereabouts remain undisclosed until AAA’s case is dismissed; Atty. Pallugna allegedly promised AAA P30,000 when case dismissed.
Atty. Pallugna allegedly gave P250 on acceptance and instructed them to report to his law office to receive P1,000 for a cellphone; he allegedly told them they would leave May 23, 2016 to Maramag but to say they were going to Iligan City.
On May 23, 2016 Noel Magto of Black Water picked up AAA and BBB, brought them to Black Water office, gave P1,000 for trip, issued a uniform to BBB, and escorted them to Agora Bus Terminal with Elvis Dajis. They were sent to Maramag where "Romy" introduced himself as Black Water security guard and brought them to an isolated, guarded job-assignment area with no electricity where they stayed in a small house with other security guards.
As a result, AAA missed the court hearings set May 31, 2016 and subsequent hearings on August 16 and 23, 2016.
Despite Atty. Pallugna’s machinations causing AAA’s non-appearance, he protested her absence and insisted it warranted dismissal of the rape case, invoking violation of Collins’ right to speedy trial.

Coercion, threats, and failed promises

BBB did not receive promised weekly salary of P2,500; when he asked to return home, Atty. Pallugna allegedly threatened that the NBI would arrest his parents, compelling BBB to remain.
On September 11, 2016 AAA posted on Facebook that she wanted to return to Cagayan; PIKIFI monitored and, through contacts, obtained a phone number for BBB and communicated covertly.
PIKIFI social worker Demata contacted AAA’s number and eventually spoke to a security guard identified as "Bataan" who agreed to set AAA and BBB free on condition it appear they escaped and PIKIFI not involve police.
PIKIFI coordinated a rescue with police at Camp Alagar and Maramag police; rescuing officers brought AAA and BBB to Regional Prosecution Office at Carmen, Cagayan de Oro City for safety and to avail Witness Protection Program.
AAA appeared at hearing on September 27, 2016; Collins appeared without his counsel, Atty. Pallugna.