G.R. No. A.M. No. 35 September 30, 1949
In re Attorney FELIX P. DAVID, petitioner.

FACTS

Attorney Felix P. David, a member of the Philippine Bar, was charged with malpractice for misappropriating funds entrusted to him by his client, Briccio S. Henson. On February 15, 1947, David received P840 from Henson specifically to pay inheritance and real estate taxes due from the estate of Esteban Henson. David issued a receipt promising to deliver the official tax receipts or refund the money by April 16, 1947. Despite repeated demands, David failed to deliver the receipts or refund the money. An inquiry with the provincial treasurer revealed the taxes were never paid. Henson was forced to pay the taxes himself. During the investigation by the Solicitor General, David repeatedly failed to appear at scheduled hearings despite due notice.

ISSUE

Whether Attorney Felix P. David is guilty of professional misconduct for misappropriating his client’s funds.

RULING

Yes. The Court found David guilty of unprofessional conduct. The evidence conclusively established that he received the money for a specific purpose, failed to apply it as promised, and misappropriated the funds. His defense—that he withheld the money due to an unpaid legal fee—was deemed an unfounded afterthought, as the receipt showed he had already been separately paid for his expenses and fee. The Court ordered David suspended from the practice of law for five years, effective upon the finality of the decision, with a warning of more severe action if the misappropriated amount was not refunded within one month.

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