G.R. No. A.M. No. RTJ-08-2127. September 25, 2008.
CITA BORROMEO-GARCIA, Complainant, versus JUDGE ERNESTO P. PAGAYATAN, Executive Judge, Regional Trial Court, Branch 46, San Jose, Occidental Mindoro, Respondent.

FACTS

Complainant Cita Borromeo-Garcia filed an administrative complaint charging respondent Judge Ernesto P. Pagayatan with falsification, partiality, dishonesty, gross incompetence, evident bad faith, immorality, and grave misconduct. The allegations stemmed from two main incidents:
1. First Falsification Charge: When respondent served as Register of Deeds (Ex-Officio) of San Jose, Occidental Mindoro, he allegedly cooperated with Soledad Ulayao and Soledad Ortega Olano in transferring 165 titles from the name of Blandina Garcia (complainant’s father’s mistress) to complainant’s father, Salvador S. Borromeo, Sr., despite knowing the signatures were falsified. As payment, Borromeo, Sr. purportedly gave 20 of these titles to Ulayao, Olano, and respondent.
2. Second Falsification and Related Charges: Respondent granted the petition of complainant’s half-brother, Salvador G. Borromeo, Jr., for the issuance of owner’s duplicate copies of 62 Transfer Certificates of Title (TCTs), despite knowing Borromeo, Jr. was not the owner. Complainant alleged respondent hastily decided the case without requiring certified true copies of all titles or the production of the book of titles. She further accused respondent of keeping a mistress, Elsa Aguirre (Borromeo, Jr.’s former wife), who wielded influence in the court as Acting Clerk of Court and sheriff, and acted as respondent’s “bagman” along with Assistant Prosecutor Luduvico Salcedo.
Respondent denied all charges, asserting they were unfounded and based on hearsay. He explained that as Ex-Officio Registrar, he signed the TCTs only after evaluation by Land Examiner Ulayao found the documents complete and in order. Regarding Borromeo, Jr.’s petition, respondent conducted due notice and hearing, with certified true copies of the TCTs attached and a certification from the Register of Deeds confirming the originals were intact. He denied any illicit relationship with Aguirre, stating their dealings were strictly official.
The case was referred to Associate Justice Jose C. Reyes, Jr. of the Court of Appeals for investigation. Justice Reyes found complainant failed to substantiate her allegations with evidence, relying on bare assertions and hearsay. However, he noted respondent failed to prevent an appearance of impartiality by appointing Elsa Aguirre (OIC Clerk of Court and former wife of the petitioner) as commissioner to receive evidence ex parte in the petition for re-issuance of titles, instead of conducting the hearing himself. Justice Reyes recommended dismissal of the complaint but imposed a fine of P5,000.00 for this infraction.

ISSUE

Whether respondent Judge Ernesto P. Pagayatan is administratively liable for the charges of falsification, partiality, dishonesty, gross incompetence, evident bad faith, immorality, and grave misconduct.

RULING

The Supreme Court DISMISSED the administrative complaint for lack of competent evidence but found respondent GUILTY of violating Canon 3, Section 2 and Canon 4, Section 1 of the New Code of Judicial Conduct, imposing a FINE of P10,000.00 to be deducted from his withheld retirement benefits.
1. Dismissal of Charges: The Court emphasized that administrative complaints against judges require substantial evidence. Complainant relied on mere conjectures and failed to present proof for her allegations. The charges of falsification, partiality, dishonesty, gross incompetence, bad faith, immorality, and grave misconduct were unsubstantiated. Specifically:
– First Falsification: Complainant admitted she had no direct knowledge and relied on information from others. No evidence linked respondent to any falsification.
– Second Falsification and Partiality: Respondent acted within his discretion in granting Borromeo, Jr.’s petition. Under Section 109 of Presidential Decree No. 1529, any person in interest (including an heir like Borromeo, Jr.) may file such a petition. The decision did not declare Borromeo, Jr. as owner but merely quoted his testimony, and the reconstituted titles remained in Borromeo, Sr.’s name.
– Immorality and Misconduct: The allegation of an illicit affair with Elsa Aguirre was based on hearsay, with no evidence presented.
– “Bagman” Accusation: No proof supported the claim that Aguirre and Prosecutor Salcedo acted as respondent’s bagmen.
2. Liability for Appearance of Impartiality: The Court agreed with Justice Reyes that respondent failed to avoid an appearance of impartiality by appointing Elsa Aguirre—OIC Clerk of Court and former wife of the petitioner—as commissioner to receive evidence ex parte in the petition for re-issuance of titles. Respondent should have conducted the hearing himself to prevent any suspicion of bias. This act violated Canon 3, Section 2 (requiring judges to ensure fairness and impartiality) and Canon 4, Section 1 (requiring judges to avoid impropriety and the appearance of impropriety) of the New Code of Judicial Conduct.
3. Modification of Penalty: The Court increased the recommended fine from P5,000.00 to P10,000.00, considering the need to uphold judicial integrity and the respondent’s retirement status (having filed for optional retirement effective December 31, 2007). The fine was to be deducted from his withheld retirement benefits.
DISPOSITIVE PORTION:
The charges were dismissed for lack of evidence. Respondent was found guilty of violating the New Code of Judicial Conduct and fined P10,000.00, deductible from his retirement benefits.