Reyes siblings filed a complaint for partition against Macariola, concerning the properties left by

their common father, Francisco Reyes. Asuncion was the judge who rendered the decision,
which became final for lack of an appeal. A project of partition was submitted to Judge Asuncion
after the finality of the decision. This project of partition was only signed by the counsel of the
parties, who assured the judge that they were given authorization to do so.
One of the properties in the project of partition was Lot 1184, which was subdivided into 5 lots.
One of these lots (Lot 1184-D) was sold to Anota, a stenographer of the court, while another (Lot
1184-E) was sold to Dr. Galapon, who later on sold a portion of the same lot to Judge Asuncion
and his wife. A year after, spouses Asuncion and Dr. Galapon sold their respective shares over
the lot to Traders Manufacturing and Fishing Industries. At the time of the sale, Judge Asuncion
and his wife were both stockholders, with Judge Asuncion as President and his wife as secretary
of said company.
A year after the company’s registration with the SEC, Macariola filed a complaint against Judge
Asuncion alleging: • that he violated Art. 1491 (5) of the Civil Code in acquiring a portion of the
lot, which was one of those properties involved in the partition case; and • that he violated Art 14
(1 and 5) of the Code of Commerce, Sec 3 (H) of RA 3019, Sec 12, Rule XVIII of the Civil Service
Rules, and Canon 25 of the Canons of Judicial Ethics by associating himself with a private
company while he was a judge of the CFI of Leyte. This case was referred to Justice Palma of the
CA for investigation, report and recommendation. After hearing, the said Investigating Justice
recommended that Judge Asuncion should be reprimanded or warned in connection with the
complaints filed against him.