G.R. No. A.C. No. 10134 November 26, 2014
PHILIPPINE ASSOCIATION OF COURT EMPLOYEES (PACE), represented by its President, ATTY. VIRGINIA C. RAFAEL, Complainant, vs. ATTY. EDNA M. ALIBUTDAN-DIAZ, Respondent.

FACTS

The Philippine Association of Court Employees (PACE) filed a complaint for suspension or disbarment against Atty. Edna M. Alibutdan-Diaz, its former National Treasurer. The complaint stemmed from her handling of PACE funds during its 11th National Convention in Davao City (2005) and 12th National Convention in Iloilo City (2007). Complainant alleged that Atty. Diaz submitted the liquidation for the 11th convention only in March 2007, failed to submit a liquidation report for the 12th convention, and did not turn over association monies despite demand. It was also alleged that during the 12th convention, an election was held where Atty. Diaz ran for re-election as National Treasurer (though she was not elected), and that the outgoing Board of Directors, including Atty. Diaz, passed a resolution appropriating a ₱30,000 term-end bonus for each qualified PACE official. In her defense, Atty. Diaz countered that she submitted the liquidation for the Davao convention promptly and it was audited, and that she also filed the liquidation for the Iloilo convention in May 2007. She denied running for re-election, claiming she had filed a certificate of candidacy for a local elective position, and asserted that the term-end bonus was a collegial board action which she did not sponsor. The Integrated Bar of the Philippines (IBP) Board of Governors initially dismissed the complaint but, upon reconsideration, reversed itself and suspended Atty. Diaz from the practice of law for one year.

ISSUE

Whether or not Atty. Diaz violated Chapter 1, Canon 1, Rule 1.01 of the Code of Professional Responsibility, which states that “A lawyer should not engage in an unlawful, dishonest, immoral or deceitful conduct.”

RULING

Yes, Atty. Diaz is guilty of violating Rule 1.01 of the Code of Professional Responsibility. The Supreme Court agreed with the IBP Board of Governors’ finding that her actions constituted a “triple-whammy” of questionable conduct: her delay in the liquidation of PACE finances, her running for re-election (as supported by affidavits of former PACE officers despite her denial), and her involvement in the approval of a term-end bonus for herself and other officers despite no longer working in the Judiciary. The Court emphasized that the practice of law demands the highest standards of honesty, candor, and good moral character. Lawyers must conduct themselves beyond reproach at all times, and a violation of these standards justifies the imposition of appropriate penalties. Consequently, Atty. Edna M. Alibutdan-Diaz is SUSPENDED from the practice of law for a period of three (3) months.