Macariola vs.

Asuncion

Facts:
Civil Case No. 3010 of the court of first Instance of Leyte was a complaint for partition
filed by Sinforora Bales, Luz Bakunawa, Anacorita Reyes, et al, plaintiff against
Bernardita R. Macariola, defendant, regarding the property left by the late Francisco
Reyes, the father of both the plaintiff and defendant. Judge Asuncion was the presiding
Judge in the said Civil Case for partition. On June 8, 1963, a final decision was rendered
by Judge Asuncion for lack of an appeal.
On October 16, 1963 the project of partition was submitted to Judge Asuncion that was
only signed by the respective counsel of plaintiffs and defendant, then the Presiding
judge, in his order, approved it on October 23, 1963. It was amended on November 11,
1963 for the purpose of giving authority to the Register of Deeds of the Province of Leyte
to issue the corresponding transfer certificates of title to the respective owners in
conformity with the project of partition.
One of the lots of the project of the partition was lot 1184 which was subdivided into five
lots denominated as lot 1184 A E. Lot 1184 E was sold on July 31, 1964 to Dr. Arcadio
Galapon who was issued transfer of certificate of Title No. 2338 of the Register of Deeds
of Tacloban City. On March 6, 1965, Dr. Galapon sold a portion of lot 1184 E to Judge
Asuncion and his wife, Victoria Asuncion. On August 31, 1996, spouses Asuncion and
Galapon conveyed their shares and interest in Lot 1184 E to the Traders Manufacturing
and Finishing Industries Inc. During the conveyance, Judge Asuncion was the president
and his wife as the secretary of the said traders.
Upon the information of Mrs. Macariola, she then charged Judge Asuncion with Acts
Unbecoming a Judge for violating the following provisions:
1) that respondent Judge Asuncion violated Article 1491, paragraph 5, of the New Civil
Code in acquiring by purchase a portion of Lot No. 1184-E which was one of those
properties involved in Civil Case No. 3010 decided by him;
2) that he likewise violated Article 14, paragraphs I and 5 of the Code of Commerce,
Section 3, paragraph H, of R.A. 3019, otherwise known as the Anti-Graft and Corrupt
Practices Act, Section 12, Rule XVIII of the Civil Service Rules, and Canon 25 of the
Canons of Judicial Ethics, by associating himself with the Traders Manufacturing and
Fishing Industries, Inc., as a stockholder and a ranking officer while he was a judge of the
Court of First Instance of Leyte
Issue: Whether or not Judge Asuncion violated the said provisions.
Ruling: NO
Article 1491, par 5 of the New Civil Code applies only to the sale or assignment of the
property which is the subject of litigation to the persons disqualified therein. The decision
in Civil Case No. 3010 which he rendered on June 8, 1963 was already final because
none of the parties therein filed an appeal within the period granted. Judge Asuncion did
not buy the lot in question on March 6, 1965 and he also bought the lot from Dr. Galapon
who earlier purchased on July 31, 1964 Lot 1184-E from three of the plaintiffs, namely,
Priscilla Reyes, Adela Reyes, and Luz R. Bakunawa after the finality of the decision in
Civil Case No. 3010. The Supreme Court held that for the prohibition to operate, the sale
or assignment must take place during the pendency of the litigation involving the property.
Article 14 of Code of Commerce has no legal and binding effect and cannot apply to the
respondent. Article 14 of this code of Commerce appears to have been abrogated since
there was a change of sovereignty from Spain to the United States and to the Republic
of the Philippines.
Asuncion cannot also be held liable under the par. H, Sec. 3 of RA 3019, citing that the
public officers cannot partake in any business in connection with this office, or intervened
or take part in his official capacity. The Judge and his wife had withdrawn on January 31,
1967 from the corporation and sold their respective shares to 3rd parties, and it appears
that the corporation did not benefit in any case filed by or against it in court as there was
no case filed in the different branches of the Court of First Instance from the time of the
drafting of the Articles of Incorporation of the corporation on March 12, 1966 up to its
incorporation on January 9, 1967. The Judge realized early that their interest in the
corporation contravenes against Canon 25.
In conclusion, Judge Asuncion did not violate the mentioned provisions which constitute
Acts Unbecoming a Judge but was reminded to be more careful in his any private and
business activities.