Title
Unity Fishing Development Corp. vs. Macalino
Case
A.C. No. 4566
Decision Date
Dec 10, 2004
Atty. Macalino misappropriated a P50,000 refund check intended for a client, violating fiduciary duties and failing to comply with court orders, resulting in a one-year suspension and restitution.

Case Summary (A.C. No. 4566)

Procedural Background

The Supreme Court initially required the respondent to comment on the complaint within ten days from notice on June 26, 1996. After several motions for extension filed by the respondent, none of which resulted in a submitted comment, the case was referred to the Integrated Bar of the Philippines (IBP) for further investigation on April 27, 1998. Despite opportunities for the respondent to engage with the process, including multiple scheduled hearings and additional chances to file answers, the respondent exhibited persistent inaction.

Investigation Findings

The IBP designated Atty. Cesar R. Dulay as the investigating commissioner. During the investigation, it was revealed that the complainant had engaged Atty. Macalino to handle a lawsuit linked to a lease dispute. The respondent was responsible for handling a guarantee deposit of P50,000. The respondent purportedly informed the complainant that this amount had been returned when, in fact, the check intended for Wheels Distributors, Inc. was deposited into the respondent's account instead.

Evidence of Misappropriation

The investigation found that after Atty. Macalino received the Metrobank Check No. MB350288, he deposited it into his own account at United Savings Bank and misrepresented its status to the complainant. This deceit led to a lengthened legal dispute in which the complainant learned, during negotiations with Wheels, that the refund had never been received. A key piece of evidence was the testimony from a United Savings Bank employee confirming that the respondent maintained the account to which the check was deposited.

Conclusion and Recommendations of the IBP

The investigating commissioner concluded that the respondent had grossly violated his fiduciary duties. A recommendation for a two-year suspension from the practice of law was initially proposed by Atty. Dulay, along with an order to account for the misappropriated funds. On June 21, 2003, the IBP Board of Governors passed a resolution modifying the penalty to a one-year suspension, based on the respondent's lack of prior infractions and the available e

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