Professional Documents
Culture Documents
YNARES-SANTIAGO, J.:
On December 6, 1984, private respondent FCP Credit Corporation filed a complaint for replevin and damages 1 in the
Regional Trial Court of Manila against petitioner Jose S. Orosa and one John Doe to recover possession of a 1983 Ford
Laser 1.5 Sedan with Motor and Serial No. SUNKBT-14584. The complaint alleged that on September 28, 1983, petitioner
purchased the subject motor vehicle on installment from Fiesta Motor Sales Corporation. He executed and delivered to
Fiesta Motor Sales Corp. a promissory note in the sum of P133,824.00 payable in monthly installments. 2 To secure
payment, petitioner executed a chattel mortgage over the subject motor vehicle in favor of Fiesta Motor Sales Corp. On
September 28, 1983, Fiesta Motor Sales assigned the promissory note and chattel mortgage to private respondent FCP
Credit Corporation. The complaint further alleged that petitioner failed to pay part of the installment which fell due on
July 28, 1984 as well as three (3) consecutive installment which fell due on August 28, September 28, and October 28,
1984. Consequently, private respondent FCP Credit Corporation demanded from petitioner payment of the entire
outstanding balance of the obligation amounting to P106,154.48 with accrued interest and to surrender the vehicle
which petitioner was allegedly detaining.
After trial, the lower court dismissed private respondent's complaint in a Decision dated March 25, 1988, the decretal
portion of which reads:
WHEREFORE, judgment is rendered for the defendant, and against the plaintiff:
1) Dismissing the complaint for lack of merit;
2) Declaring that the plaintiff was not entitled to the Writ of Replevin, issued on January 7, 1985, and is now liable to the
defendant for actual damages under the Replevin bond it filed;
3) On defendant's counter-claim, ordering the plaintiff to pay the defendant the sum of P400,000.00 as moral damages,
P100,000.00 as exemplary damages, and P50,000.00 as, and for, attorney's fees;
4) Ordering the plaintiff to return to the defendant the subject 1983 Ford Laser Sedan, with Motor or Serial No. SUNKBT-
14584, or its equivalent, in kind or value, in cash, as of this date, and to pay the costs.
SO ORDERED.
The trial court ruled that private respondent FCP had no reason to file the present action since petitioner already paid
the installments for the months of July to November 1984, which are the sole bases of the complaint. The lower court
declared that private respondent was not entitled to the writ of replevin, and was liable to petitioner for actual damages
under the replevin bond it filed. 3
Ruling on petitioner's counterclaim, the trial court stated that there was no legal or factual basis for the writ of replevin
and that its enforcement by the sheriff was "highly irregular, and unlawful, done, as it was, under shades of extortion,
threats and force." 4 The trial court ordered private respondent to pay the sum of P400,000.00 as moral damages;
P100,000.00 as exemplary damages and P50,000.00 as attorney's fees. Private respondent was also ordered to return to
petitioner the 1983 Ford Laser 1.5 Sedan, or its equivalent, in kind or value in cash, as of date of judgment and to pay
the costs of the suit. 5
On June 7, 1988, a "Supplemental Decision" was rendered by the trial court ordering private respondent's surety,
Stronghold Insurance Co., Inc. to jointly and severally [with private respondent] return to petitioner the 1983 Ford Laser
1.5 Sedan or its, equivalent in kind or in cash and to pay the damages specified in the main decision to the extent of the
value of the replevin bond in the amount of P210,000.00. 6
The surety company filed with the Court of Appeals a petition for certiorari to annul the Order of the trial court denying
its motion for partial reconsideration, as well as the Supplemental Decision. On the other hand, private respondent
appealed the decision of the RTC Manila to the Court of Appeals.
The surety company's petition for certiorari, docketed as CA-G.R. SP No. 14938, was dismissed by the Court of Appeals'
First Division which upheld the trial court's order of execution pending appeal. 7 On November 6, 1989, this Court
affirmed the Court of Appeals decision, but deleted the order for the issuance of a writ of execution pending appeal. 8
Meanwhile, in private respondent's appeal, the Court of Appeals' Eighth Division partially affirmed the ruling of the trial
court, in a Decision dated April 19, 1993, the dispositive portion of which reads: 9
WHEREFORE, the Decision of 25 March 1988 of the Regional Trial Court, Branch 3, Manila is hereby AFFIRMED with the
following modifications:
(1) The award of moral damages, exemplary damages and attorney's fees is DELETED;
(2) The order directing plaintiff-appellant FCP Credit Corporation to return to defendant-appellee Jose S. Orosa the
subject 1983 Ford Laser Sedan, with Motor and Serial No. SUNKBT-14584, its equivalent, in kind or value in cash, as of 25
March 1988, and to pay the costs is DELETED; and;
(3) Plaintiff-appellant FCP Credit Corporation is ordered to pay defendant-appellee Jose S. Orosa the amount equivalent
to the value of the fourteen (14) monthly installments made by the latter to the former on the subject motor vehicle,
with interest from the time of filing of the complaint or from 6 December 1984.
No costs.
SO ORDERED.
(1) The Hon. Court of Appeals (former Eighth Division) acted without or in excess of jurisdiction when reversed a final
decision dated September 9, 1988, of a co-equal division of the Hon. Court of Appeals (Special First Division)
promulgated in CA. G.R. No. 14938, and which was sustained by the Hon. Supreme Court in a final decision promulgated
in G.R. No. 84979 dated November 6, 1989 which cases have the same causes of actions, same set of facts, the same
parties and the same relief.
(2) The Hon. Court of Appeals (former Eighth Division) acted with grave abuse of discretion and authority when it
considered causes of actions not alleged in the complaint and which were raised for the first time on appeal in deciding
this case.
(3) The Hon. Court of Appeals (former Eighth Division) committed serious error in applying the cause of Filinvest Credit
Corporation vs. Ivans Mendez, 152 SCRA 598, as basis in deciding this case when said case has a different set of facts
from this case.
In its first assignment of error, petitioner alleges that the Eighth Division of the Court of Appeals had no jurisdiction to
review the present case since the First Division of the Court of Appeals already passed upon the law and the facts of the
same. Petitioner alleges that the present appeal involves the same causes of action, same parties, same facts and same
relief involved in the decision rendered by the First Division and affirmed by this Court in G.R. No. 84979. 11
Petitioner's argument is untenable. Jurisdiction is simply the power or authority to hear a case. The appellate jurisdiction
of the Court of Appeals to review decisions and orders of lower courts is conferred by Batas Pambansa Blg. 129. More
importantly, petitioner cannot now assail the Court of Appeals' jurisdiction after having actively participated in the
appeal and after praying for affirmative relief. 12
Neither can petitioner argue that res judicata bars the determination of the present case. The two cases involve
different subject matters, parties and seek different reliefs.
The petition docketed as CA-G.R. SP No. 14938 was for certiorari with injunction, brought by Stronghold Insurance
Company, Inc. alleging that there was grave abuse of discretion when the trial court adjudged it liable for damages
without due process, in violation of Rule 60, Section 10 in relation to Rule 57, Section 20, of the Rules of Court. The
surety also questioned the propriety of the writ of execution issued by the trial court pending appeal. 13
On the other hand, CA-G.R. CV No. 25929 was filed by petitioner Orosa under Rule 45 of the Revised Rules of Court
raising alleged errors of law on the part of the trial court. The subject of the appeal was the main decision, while the
subject of the petition in CA-G.R. SP No. 14938 was the Supplemental Decision.
We agree with the Court of Appeals that: 14
The decisions of the Court of Appeals in CA-G.R. SP No. 14938 and the Supreme Court in G.R. No. 84979 did not pass on
the merits of this case. It merely ruled on the issues of whether the surety, Stronghold Insurance, Co., Inc., can be held
jointly and solidarily liable with plaintiff-appellant and whether execution pending appeal is proper under the facts and
circumstances of this case. Consequently, this Court is not estopped from reviewing the conclusions reached by the
court a quo. (emphasis ours)
In its second assigned error, petitioner posits that the Court of Appeals committed grave abuse of discretion when it
considered causes of actions which were raised for the first time on appeal. 15
True, private respondent submitted issues to the Court of Appeals which were not raised in the original complaint.
Private respondent belatedly pointed out that: 16
1.1. It is pertinent to note that Defendant-Appellee has waived prior notice and demand in order to be rendered in
default, as in fact the Promissory Note expressly stipulates that the monthly installments shall be paid on the date
they fall due, without need of prior notice or demand.
1.2. Said Promissory Note likewise expressly stipulates that a late payment charge of 2% per month shall be added on
each unpaid installment from maturity thereof until fully paid.
1.3. Of equal significance is the Acceleration Clause in the Promissory Note which states that if default be made in the
payment of any of the installments or late payment charges thereon when the same became due and payable,
the total principle sum then remaining unpaid, together with the agreed late payment charges thereon, shall at
once become due and payable.
Private respondent argued that based on the provisions of the Promissory Note itself, petitioner incurred in default
since, even though there was actual payment of the installments which fell due on July 28, 1984, as well as the three
installments on August 28 to October 28, 1984, the payments were all late and irregular. 17 Private respondent also
argued that petitioner assigned the subject car to his daughter without the written consent of the obligee, and hence,
violated the terms of the chattel mortgage. 18 Meritorious as these arguments are, they come too late in the day. Basic
is the rule that matters not raised in the complaint cannot be raised for the first time on appeal.
Contrary to petitioner's accusation, the Court of Appeals restricted the determination of the case to matters alleged in
the complaint and raised during trial. 19 Citing jurisprudence, 20 the Court of Appeals held that "it would be offensive to
the basic rule of fair play, justice and due process" if it considered issues raised for the first time on appeal. 21
The Court of Appeals' statement that "under the terms and conditions of the chattel mortgage, defendant-appellee Jose
S. Orosa was already in default," was made only to justify the deletion of the trial court's award of moral, exemplary
damages and attorney's fees, in consonance with its finding that private respondent was motivated by a sincere belief
that it had sufficient basis and acted in good faith when it filed the claim. 22
We now come to the matter of moral damages. Petitioner insists that he suffered untold embarrassment when the
complaint was filed against him. According to petitioner, the car subject of this case was being used by his daughter,
married to Jose Concepcion III, a scion of a prominent family. Petitioner laments that he assigned the car to his daughter
so that she could "approximate without equaling the status of her in-laws." This being the case, petitioner experienced
anguish and unquantifiable humiliation when he had to face his daughter's wealthy in-laws to explain the "why and the
whats of the subject case." Petitioner further insists that an award of moral damages is especially justified since he is no
ordinary man, but a businessman of high social standing, a graduate of De La Salle University and belongs to a well
known family of bankers. 23
We must deny the claim. The law clearly states that one may only recover moral damages if they are the proximate
result of the, other party's wrongful act or omission. 24 Two elements are required. First, the act or omission must be
the proximate result of the physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded
feelings, moral shock, social humiliation and similar injury. Second, the act must be wrongful.
Petitioner maintains that embarrassment resulted when he had to explain the suit to his daughter's in-
laws.1a\^/phi1 However, that could have been avoided had he not assigned the car to his daughter and had he been
faithful and prompt in paying the installments required. Petitioner brought the situation upon himself and cannot now
complain that private respondent is liable for the mental anguish and humiliation he suffered.
Furthermore, we agree with the appellate court that when private respondent brought the complaint, it did so only to
exercise a legal right, believing that it had a meritorious cause of action clearly borne out by a mere perusal of the
promissory note and chattel mortgage. To constitute malicious prosecution, there must be proof that the prosecution
was prompted by a sinister design to vex and humiliate a person, and that it was initiated deliberately, knowing that the
charges were false and groundless.
25 Such was not the case when the instant complaint was filed. The rule has always been that moral damages cannot be
recovered from a person who has filed a complaint against another in good faith. 26 The law always presumes good faith
such that any person who seeks to be awarded damages due to acts of another has the burden of proving that the latter
acted in bad faith or with ill motive. 27
Anent the award of exemplary damages, jurisprudence provides that where a party is not entitled to actual or moral
damages, an award of exemplary damages is likewise baseless. 28
In the matter of attorney's fees, petitioner avers that to prosecute and defend this case in the lower court and in the
appellate court, he incurred expenses amounting to P50,000.00, 29 and as such, attorney's fees should be granted. We
deny the claim. No premium should be placed on the right to litigate and not every winning party is entitled to an
automatic grant of attorney's fees.
30 The party must show that he falls under one of the instances enumerated in Article 2208 of the Civil Code. 31 This,
petitioner failed to do. Furthermore, where the award of moral and exemplary damages is eliminated, so must the
award for attorney's fees be deleted. 32
We also agree with the Court of Appeals that the trial court erred when it ordered private respondent to return the
subject car or its equivalent considering that petitioner had not yet fully paid the purchase price. Verily, to sustain the
trial court's decision would amount to unjust enrichment. The Court of Appeals was correct when it instead ordered
private respondent to return, not the car itself, but only the amount equivalent to the fourteen installments actually
paid with interest. 33
WHEREFORE, above premises considered, the petition is DENIED, and the Court of Appeals' Decision of April 19, 1993
and its Resolution of July 22, 1993 are AFFIRMED in toto.
No costs.1âwphi1.nêt
SO ORDERED.
Regina M. Astorga (Astorga) was employed by respondent Smart Communications, Incorporated (SMART) on May 8,
1997 as District Sales Manager of the Corporate Sales Marketing Group/ Fixed Services Division (CSMG/FSD). She was
receiving a monthly salary of P33,650.00. As District Sales Manager, Astorga enjoyed additional benefits, namely, annual
performance incentive equivalent to 30% of her annual gross salary, a group life and hospitalization insurance coverage,
and a car plan in the amount of P455,000.00.5
In February 1998, SMART launched an organizational realignment to achieve more efficient operations. This was made
known to the employees on February 27, 1998.6 Part of the reorganization was the outsourcing of the marketing and
sales force. Thus, SMART entered into a joint venture agreement with NTT of Japan, and formed SMART-NTT
Multimedia, Incorporated (SNMI). Since SNMI was formed to do the sales and marketing work, SMART abolished the
CSMG/FSD, Astorga’s division.
To soften the blow of the realignment, SNMI agreed to absorb the CSMG personnel who would be recommended by
SMART. SMART then conducted a performance evaluation of CSMG personnel and those who garnered the highest
ratings were favorably recommended to SNMI. Astorga landed last in the performance evaluation, thus, she was not
recommended by SMART. SMART, nonetheless, offered her a supervisory position in the Customer Care Department,
but she refused the offer because the position carried lower salary rank and rate.
Despite the abolition of the CSMG/FSD, Astorga continued reporting for work. But on March 3, 1998, SMART issued a
memorandum advising Astorga of the termination of her employment on ground of redundancy, effective April 3, 1998.
Astorga received it on March 16, 1998.7
The termination of her employment prompted Astorga to file a Complaint8 for illegal dismissal, non-payment of salaries
and other benefits with prayer for moral and exemplary damages against SMART and Ann Margaret V. Santiago
(Santiago). She claimed that abolishing CSMG and, consequently, terminating her employment was illegal for it violated
her right to security of tenure. She also posited that it was illegal for an employer, like SMART, to contract out services
which will displace the employees, especially if the contractor is an in-house agency.9
SMART responded that there was valid termination. It argued that Astorga was dismissed by reason of redundancy,
which is an authorized cause for termination of employment, and the dismissal was effected in accordance with the
requirements of the Labor Code. The redundancy of Astorga’s position was the result of the abolition of CSMG and the
creation of a specialized and more technically equipped SNMI, which is a valid and legitimate exercise of management
prerogative.10
In the meantime, on May 18, 1998, SMART sent a letter to Astorga demanding that she pay the current market value of
the Honda Civic Sedan which was given to her under the company’s car plan program, or to surrender the same to the
company for proper disposition.11 Astorga, however, failed and refused to do either, thus prompting SMART to file a
suit for replevin with the Regional Trial Court of Makati (RTC) on August 10, 1998. The case was docketed as Civil Case
No. 98-1936 and was raffled to Branch 57.12
Astorga moved to dismiss the complaint on grounds of (i) lack of jurisdiction; (ii) failure to state a cause of action; (iii)
litis pendentia; and (iv) forum-shopping. Astorga posited that the regular courts have no jurisdiction over the complaint
because the subject thereof pertains to a benefit arising from an employment contract; hence, jurisdiction over the
same is vested in the labor tribunal and not in regular courts.13
Pending resolution of Astorga’s motion to dismiss the replevin case, the Labor Arbiter rendered a Decision14 dated
August 20, 1998, declaring Astorga’s dismissal from employment illegal. While recognizing SMART’s right to abolish any
of its departments, the Labor Arbiter held that such right should be exercised in good faith and for causes beyond its
control. The Arbiter found the abolition of CSMG done neither in good faith nor for causes beyond the control of SMART,
but a ploy to terminate Astorga’s employment. The Arbiter also ruled that contracting out the functions performed by
Astorga to an in-house agency like SNMI was illegal, citing Section 7(e), Rule VIII-A of the Rules Implementing the Labor
Code.
Assessing the [submission] of the parties, the Court finds no merit in the motion to dismiss.
As correctly pointed out, this case is to enforce a right of possession over a company car assigned to the defendant
under a car plan privilege arrangement. The car is registered in the name of the plaintiff. Recovery thereof via replevin
suit is allowed by Rule 60 of the 1997 Rules of Civil Procedure, which is undoubtedly within the jurisdiction of the
Regional Trial Court.
In the Complaint, plaintiff claims to be the owner of the company car and despite demand, defendant refused to return
said car. This is clearly sufficient statement of plaintiff’s cause of action.
Neither is there forum shopping. The element of litis penden[t]ia does not appear to exist because the judgment in the
labor dispute will not constitute res judicata to bar the filing of this case.
WHEREFORE, the Motion to Dismiss is hereby denied for lack of merit.
SO ORDERED.17
Astorga filed a motion for reconsideration, but the RTC denied it on June 18, 1999.18
Astorga elevated the denial of her motion via certiorari to the CA, which, in its February 28, 2000 Decision,19 reversed
the RTC ruling. Granting the petition and, consequently, dismissing the replevin case, the CA held that the case is
intertwined with Astorga’s complaint for illegal dismissal; thus, it is the labor tribunal that has rightful jurisdiction over
the complaint. SMART’s motion for reconsideration having been denied,20 it elevated the case to this Court, now
docketed as G.R. No. 148132.
Meanwhile, SMART also appealed the unfavorable ruling of the Labor Arbiter in the illegal dismissal case to the National
Labor Relations Commission (NLRC). In its September 27, 1999 Decision,21 the NLRC sustained Astorga’s dismissal.
Reversing the Labor Arbiter, the NLRC declared the abolition of CSMG and the creation of SNMI to do the sales and
marketing services for SMART a valid organizational action. It overruled the Labor Arbiter’s ruling that SNMI is an in-
house agency, holding that it lacked legal basis. It also declared that contracting, subcontracting and streamlining of
operations for the purpose of increasing efficiency are allowed under the law. The NLRC further found erroneous the
Labor Arbiter’s disquisition that redundancy to be valid must be impelled by economic reasons, and upheld the
redundancy measures undertaken by SMART.
Astorga filed a motion for reconsideration, but the NLRC denied it on December 21, 1999.23
Astorga then went to the CA via certiorari. On June 11, 2001, the CA rendered a Decision24 affirming with modification
the resolutions of the NLRC. In gist, the CA agreed with the NLRC that the reorganization undertaken by SMART resulting
in the abolition of CSMG was a legitimate exercise of management prerogative. It rejected Astorga’s posturing that her
non-absorption into SNMI was tainted with bad faith. However, the CA found that SMART failed to comply with the
mandatory one-month notice prior to the intended termination. Accordingly, the CA imposed a penalty equivalent to
Astorga’s one-month salary for this non-compliance. The CA also set aside the NLRC’s order for the return of the
company vehicle holding that this issue is not essentially a labor concern, but is civil in nature, and thus, within the
competence of the regular court to decide. It added that the matter had not been fully ventilated before the NLRC, but
in the regular court.
Astorga filed a motion for reconsideration, while SMART sought partial reconsideration, of the Decision. On December
18, 2001, the CA resolved the motions, viz.:
WHEREFORE, [Astorga’s] motion for reconsideration is hereby PARTIALLY GRANTED. [Smart] is hereby ordered to pay
[Astorga] her backwages from 15 February 1998 to 06 November 1998. [Smart’s] motion for reconsideration is outrightly
DENIED.
SO ORDERED.25
Astorga and SMART came to us with their respective petitions for review assailing the CA ruling, docketed as G.R Nos.
151079 and 151372. On February 27, 2002, this Court ordered the consolidation of these petitions with G.R. No.
148132.26
The Court shall first deal with the propriety of dismissing the replevin case filed with the RTC of Makati City allegedly for
lack of jurisdiction, which is the issue raised in G.R. No. 148132.
Replevin is an action whereby the owner or person entitled to repossession of goods or chattels may recover those
goods or chattels from one who has wrongfully distrained or taken, or who wrongfully detains such goods or chattels. It
is designed to permit one having right to possession to recover property in specie from one who has wrongfully taken or
detained the property.30
The term may refer either to the action itself, for the recovery of personalty, or to the provisional remedy traditionally
associated with it, by which possession of the property may be obtained by the plaintiff and retained during the
pendency of the action.31
That the action commenced by SMART against Astorga in the RTC of Makati City was one for replevin hardly admits of
doubt.
In reversing the RTC ruling and consequently dismissing the case for lack of jurisdiction, the CA made the following
disquisition, viz.:
[I]t is plain to see that the vehicle was issued to [Astorga] by [Smart] as part of the employment package. We doubt that
[SMART] would extend [to Astorga] the same car plan privilege were it not for her employment as district sales manager
of the company. Furthermore, there is no civil contract for a loan between [Astorga] and [Smart]. Consequently, We find
that the car plan privilege is a benefit arising out of employer-employee relationship. Thus, the claim for such falls
squarely within the original and exclusive jurisdiction of the labor arbiters and the NLRC.32
We do not agree. Contrary to the CA’s ratiocination, the RTC rightfully assumed jurisdiction over the suit and acted well
within its discretion in denying Astorga’s motion to dismiss. SMART’s demand for payment of the market value of the car
or, in the alternative, the surrender of the car, is not a labor, but a civil, dispute. It involves the relationship of debtor
and creditor rather than employee-employer relations.33 As such, the dispute falls within the jurisdiction of the regular
courts.
In Basaya, Jr. v. Militante,34 this Court, in upholding the jurisdiction of the RTC over the replevin suit, explained:
Replevin is a possessory action, the gist of which is the right of possession in the plaintiff. The primary relief sought
therein is the return of the property in specie wrongfully detained by another person. It is an ordinary statutory
proceeding to adjudicate rights to the title or possession of personal property. The question of whether or not a party
has the right of possession over the property involved and if so, whether or not the adverse party has wrongfully taken
and detained said property as to require its return to plaintiff, is outside the pale of competence of a labor tribunal and
beyond the field of specialization of Labor Arbiters.
xxxx
The labor dispute involved is not intertwined with the issue in the Replevin Case. The respective issues raised in each
forum can be resolved independently on the other. In fact in 18 November 1986, the NLRC in the case before it had
issued an Injunctive Writ enjoining the petitioners from blocking the free ingress and egress to the Vessel and ordering
the petitioners to disembark and vacate. That aspect of the controversy is properly settled under the Labor Code. So also
with petitioners’ right to picket. But the determination of the question of who has the better right to take possession of
the Vessel and whether petitioners can deprive the Charterer, as the legal possessor of the Vessel, of that right to
possess in addressed to the competence of Civil Courts.
In thus ruling, this Court is not sanctioning split jurisdiction but defining avenues of jurisdiction as laid down by pertinent
laws.
The CA, therefore, committed reversible error when it overturned the RTC ruling and ordered the dismissal of the
replevin case for lack of jurisdiction.
Having resolved that issue, we proceed to rule on the validity of Astorga’s dismissal.
Astorga was terminated due to redundancy, which is one of the authorized causes for the dismissal of an employee. The
nature of redundancy as an authorized cause for dismissal is explained in the leading case of Wiltshire File Co., Inc. v.
National Labor Relations Commission,35 viz:
x x x redundancy in an employer’s personnel force necessarily or even ordinarily refers to duplication of work. That no
other person was holding the same position that private respondent held prior to termination of his services does not
show that his position had not become redundant. Indeed, in any well organized business enterprise, it would be
surprising to find duplication of work and two (2) or more people doing the work of one person. We believe that
redundancy, for purposes of the Labor Code, exists where the services of an employee are in excess of what is
reasonably demanded by the actual requirements of the enterprise. Succinctly put, a position is redundant where it is
superfluous, and superfluity of a position or positions may be the outcome of a number of factors, such as overhiring of
workers, decreased volume of business, or dropping of a particular product line or service activity previously
manufactured or undertaken by the enterprise.
The characterization of an employee’s services as superfluous or no longer necessary and, therefore, properly
terminable, is an exercise of business judgment on the part of the employer. The wisdom and soundness of such
characterization or decision is not subject to discretionary review provided, of course, that a violation of law or arbitrary
or malicious action is not shown.36
Astorga claims that the termination of her employment was illegal and tainted with bad faith. She asserts that the
reorganization was done in order to get rid of her. But except for her barefaced allegation, no convincing evidence was
offered to prove it. This Court finds it extremely difficult to believe that SMART would enter into a joint venture
agreement with NTT, form SNMI and abolish CSMG/FSD simply for the sole purpose of easing out a particular employee,
such as Astorga. Moreover, Astorga never denied that SMART offered her a supervisory position in the Customer Care
Department, but she refused the offer because the position carried a lower salary rank and rate. If indeed SMART simply
wanted to get rid of her, it would not have offered her a position in any department in the enterprise.
Astorga also states that the justification advanced by SMART is not true because there was no compelling economic
reason for redundancy. But contrary to her claim, an employer is not precluded from adopting a new policy conducive to
a more economical and effective management even if it is not experiencing economic reverses. Neither does the law
require that the employer should suffer financial losses before he can terminate the services of the employee on the
ground of redundancy. 37
We agree with the CA that the organizational realignment introduced by SMART, which culminated in the abolition of
CSMG/FSD and termination of Astorga’s employment was an honest effort to make SMART’s sales and marketing
departments more efficient and competitive. As the CA had taken pains to elucidate:
x x x a careful and assiduous review of the records will yield no other conclusion than that the reorganization
undertaken by SMART is for no purpose other than its declared objective – as a labor and cost savings device. Indeed,
this Court finds no fault in SMART’s decision to outsource the corporate sales market to SNMI in order to attain greater
productivity. [Astorga] belonged to the Sales Marketing Group under the Fixed Services Division (CSMG/FSD), a distinct
sales force of SMART in charge of selling SMART’s telecommunications services to the corporate market. SMART, to
ensure it can respond quickly, efficiently and flexibly to its customer’s requirement, abolished CSMG/FSD and shortly
thereafter assigned its functions to newly-created SNMI Multimedia Incorporated, a joint venture company of SMART
and NTT of Japan, for the reason that CSMG/FSD does not have the necessary technical expertise required for the value
added services. By transferring the duties of CSMG/FSD to SNMI, SMART has created a more competent and specialized
organization to perform the work required for corporate accounts. It is also relieved SMART of all administrative costs –
management, time and money-needed in maintaining the CSMG/FSD. The determination to outsource the duties of the
CSMG/FSD to SNMI was, to Our mind, a sound business judgment based on relevant criteria and is therefore a legitimate
exercise of management prerogative.
Indeed, out of our concern for those lesser circumstanced in life, this Court has inclined towards the worker and upheld
his cause in most of his conflicts with his employer. This favored treatment is consonant with the social justice policy of
the Constitution. But while tilting the scales of justice in favor of workers, the fundamental law also guarantees the right
of the employer to reasonable returns for his investment.38 In this light, we must acknowledge the prerogative of the
employer to adopt such measures as will promote greater efficiency, reduce overhead costs and enhance prospects of
economic gains, albeit always within the framework of existing laws. Accordingly, we sustain the reorganization and
redundancy program undertaken by SMART.
However, as aptly found by the CA, SMART failed to comply with the mandated one (1) month notice prior to
termination. The record is clear that Astorga received the notice of termination only on March 16, 199839 or less than a
month prior to its effectivity on April 3, 1998. Likewise, the Department of Labor and Employment was notified of the
redundancy program only on March 6, 1998.40
Be that as it may, this procedural infirmity would not render the termination of Astorga’s employment illegal. The
validity of termination can exist independently of the procedural infirmity of the dismissal.41 In DAP Corporation v.
CA,42 we found the dismissal of the employees therein valid and for authorized cause even if the employer failed to
comply with the notice requirement under Article 283 of the Labor Code. This Court upheld the dismissal, but held the
employer liable for non-compliance with the procedural requirements.
The CA, therefore, committed no reversible error in sustaining Astorga’s dismissal and at the same time, awarding
indemnity for violation of Astorga's statutory rights.
However, we find the need to modify, by increasing, the indemnity awarded by the CA to Astorga, as a sanction on
SMART for non-compliance with the one-month mandatory notice requirement, in light of our ruling in Jaka Food
Processing Corporation v. Pacot,43 viz.:
[I]f the dismissal is based on a just cause under Article 282 but the employer failed to comply with the notice
requirement, the sanction to be imposed upon him should be tempered because the dismissal process was, in effect,
initiated by an act imputable to the employee, and (2) if the dismissal is based on an authorized cause under Article 283
but the employer failed to comply with the notice requirement, the sanction should be stiffer because the dismissal
process was initiated by the employer’s exercise of his management prerogative.
We deem it proper to increase the amount of the penalty on SMART to P50,000.00.
As provided in Article 283 of the Labor Code, Astorga is, likewise, entitled to separation pay equivalent to at least one (1)
month salary or to at least one (1) month’s pay for every year of service, whichever is higher. The records show that
Astorga’s length of service is less than a year. She is, therefore, also entitled to separation pay equivalent to one (1)
month pay.
Finally, we note that Astorga claimed non-payment of wages from February 15, 1998. This assertion was never rebutted
by SMART in the proceedings a quo. No proof of payment was presented by SMART to disprove the allegation. It is
settled that in labor cases, the burden of proving payment of monetary claims rests on the employer.44 SMART failed to
discharge the onus probandi. Accordingly, it must be held liable for Astorga’s salary from February 15, 1998 until the
effective date of her termination, on April 3, 1998.
However, the award of backwages to Astorga by the CA should be deleted for lack of basis. Backwages is a relief given to
an illegally dismissed employee. Thus, before backwages may be granted, there must be a finding of unjust or illegal
dismissal from work.45 The Labor Arbiter ruled that Astorga was illegally dismissed. But on appeal, the NLRC reversed
the Labor Arbiter’s ruling and categorically declared Astorga’s dismissal valid. This ruling was affirmed by the CA in its
assailed Decision. Since Astorga’s dismissal is for an authorized cause, she is not entitled to backwages. The CA’s award
of backwages is totally inconsistent with its finding of valid dismissal.
WHEREFORE, the petition of SMART docketed as G.R. No. 148132 is GRANTED. The February 28, 2000 Decision and the
May 7, 2001 Resolution of the Court of Appeals in CA-G.R. SP. No. 53831 are SET ASIDE. The Regional Trial Court of
Makati City, Branch 57 is DIRECTED to proceed with the trial of Civil Case No. 98-1936 and render its Decision with
reasonable dispatch.
On the other hand, the petitions of SMART and Astorga docketed as G.R. Nos. 151079 and 151372 are DENIED. The June
11, 2001 Decision and the December 18, 2001 Resolution in CA-G.R. SP. No. 57065, are AFFIRMED with MODIFICATION.
Astorga is declared validly dismissed. However, SMART is ordered to pay Astorga P50,000.00 as indemnity for its non-
compliance with procedural due process, her separation pay equivalent to one (1) month pay, and her salary from
February 15, 1998 until the effective date of her termination on April 3, 1998. The award of backwages is DELETED for
lack of basis.
SO ORDERED.
ANTONIO EDUARDO B. NACHURA
SECOND DIVISION
A.M. No. P-07-2384 June 18, 2008
KENNETH HAO, complainant,
vs.
ABE C. ANDRES, Sheriff IV, Regional Trial Court, Branch 16, Davao City, respondent.
RESOLUTION
QUISUMBING, J.:
Before us is an administrative complaint for gross neglect of duty, grave abuse of authority (oppression) and violation of
Republic Act No. 30191 filed by complainant Kenneth Hao against respondent Abe C. Andres, Sheriff IV of the Regional
Trial Court (RTC) of Davao City, Branch 16.
On October 17, 2005, Judge Renato A. Fuentes3 issued an Order of Seizure4 against 22 motor vehicles allegedly owned
by the complainant. On the strength of the said order, Andres was able to seize two of the subject motor vehicles on
October 17, 2005; four on October 18, 2005, and another three on October 19, 2005, or a total of nine motor vehicles.5
In his Affidavit-Complaint6 against Andres before the Office of the Court Administrator (OCA), Hao alleged that Andres
gave undue advantage to Zenaida Silver in the implementation of the order and that Andres seized the nine motor
vehicles in an oppressive manner. Hao also averred that Andres was accompanied by unidentified armed personnel on
board a military vehicle which was excessive since there were no resistance from them. Hao also discovered that the
compound where the seized motor vehicles were placed is actually owned by Silver.7
On October 21, 2005, in view of the approval of the complainant’s counter-replevin bond, Judge Emmanuel C.
Carpio8 ordered Andres to immediately cease and desist from further implementing the order of seizure, and to return
the seized motor vehicles including its accessories to their lawful owners.9
However, on October 24, 2005, eight of the nine seized motor vehicles were reported missing. In his report,10 Andres
stated that he was shocked to find that the motor vehicles were already missing when he inspected it on October 22,
2005. He narrated that on October 21, 2005, PO3 Rodrigo Despe, one of the policemen guarding the subject motor
vehicles, reported to him that a certain "Nonoy" entered the compound and caused the duplication of the vehicles’
keys.11 But Andres claimed the motor vehicles were still intact when he inspected it on October 21, 2005.
Subsequently, Hao reported that three of the carnapped vehicles were recovered by the police.12 He then accused
Andres of conspiring and conniving with Atty. Oswaldo Macadangdang (Silver’s counsel) and the policemen in the
carnapping of the motor vehicles. Hao also accused Andres of concealing the depository receipts from them and pointed
out that the depository receipts show that Silver and Atty. Macadangdang were the ones who chose the policemen who
will guard the motor vehicles.
In his Comment13 dated March 3, 2006, Andres vehemently denied violating Rep. Act No. 3019 and committing gross
neglect of duty.
Andres denied implementing the Order of Seizure in an oppressive manner. He said he took the vehicles because they
were the specific vehicles ordered to be seized after checking their engine and chassis numbers. Andres likewise denied
that he was accompanied by military personnel in the implementation of the order. He claimed that he was merely
escorted by policemen pursuant to the directive of Police Senior Supt. Catalino S. Cuy, Chief of the Davao City Police
Office. Andres also maintained that no form of harassment or oppression was committed during the implementation of
the order, claiming that the presence of the policemen was only for the purpose of preserving peace and order,
considering there were 22 motor vehicles specified in the Order of Seizure. Andres added that he exercised no discretion
in the selection of the policemen who assisted in the implementation of the order, much less of those who will guard the
seized motor vehicles.
Andres disputed the allegation that he neglected his duty to safeguard the seized vehicles by pointing out that he placed
all the motor vehicles under police watch. He added that the policemen had control of the compound where the seized
motor vehicles were kept.
Andres likewise contended that after the unauthorized duplication of the vehicles’ keys was reported to him, he
immediately advised the policemen on duty to watch the motor vehicles closely.14 He negated the speculations that he
was involved in the disappearance of the seized motor vehicles as he claims to be the one who reported the incident to
the court and the police.
As to the allegation of undisclosed depository receipts, Andres maintained that he never denied the existence of the
depository receipts. He said the existence of the depository receipts was immediately made known on the same day that
the subject motor vehicles were discovered missing. He even used the same in the filing of the carnapping case against
Silver and her co-conspirators.
Finally, Andres insisted that the guarding of properties under custodia legis by policemen is not prohibited, but is even
adopted by the court. Hence, he prays that he be held not liable for the loss of the vehicles and that he be relieved of his
duty to return the vehicles.15
After the OCA recommended that the matter be investigated, we referred the case to Executive Judge Renato A. Fuentes
for investigation, report and recommendation.16
In his Investigation Report17 dated September 21, 2006, Judge Fuentes found Andres guilty of serious negligence in the
custody of the nine motor vehicles. He recommended that Andres be suspended from office.
Judge Fuentes found numerous irregularities in the implementation of the writ of replevin/order of seizure, to wit: (1) at
the time of the implementation of the writ, Andres knew that the vehicles to be seized were not in the names of any of
the parties to the case; (2) one vehicle was taken without the knowledge of its owner, a certain Junard Escudero; (3)
Andres allowed Atty. Macadangdang to get a keymaster to duplicate the vehicles’ keys in order to take one motor
vehicle; and (4) Andres admitted that prior to the implementation of the writ of seizure, he consulted Silver and Atty.
Macadangdang regarding the implementation of the writ and was accompanied by the latter in the course of the
implementation. Judge Fuentes observed that the motor vehicles were speedily seized without strictly observing
fairness and regularity in its implementation.18
Anent the safekeeping of the seized motor vehicles, Judge Fuentes pointed out several instances where Andres lacked
due diligence to wit: (1) the seized motor vehicles were placed in a compound surrounded by an insufficiently locked
see-through fence; (2) three motor vehicles were left outside the compound; (3) Andres turned over the key of the gate
to the policemen guarding the motor vehicles; (4) Andres does not even know the full name of the owner of the
compound, who was merely known to him as "Gloria"; (5) except for PO3 Despe and SPO4 Nelson Salcedo, the identities
of the other policemen tapped to guard the compound were unknown to Andres; (6) Andres also admitted that he only
stayed at least one hour each day from October 19-21, 2005 during his visits to the compound; and (7) even after it was
reported to him that a certain "Nonoy" entered the compound and duplicated the keys of the motor vehicles, he did not
exert his best effort to look for that "Nonoy" and to confiscate the duplicated keys.19
Judge Fuentes also observed that Andres appeared to be more or less accommodating to Silver and her counsel but
hostile and uncooperative to the complainant. He pointed out that Andres depended solely on Silver in the selection of
the policemen who would guard the seized motor vehicles. He added that even the depository receipts were not turned
over to the defendants/third-party claimants in the replevin case but were in fact concealed from them. Andres also
gave inconsistent testimonies as to whether he has in his possession the depository receipts.20
The OCA disagreed with the observations of Judge Fuentes. It recommended that Andres be held liable only for simple
neglect of duty and be suspended for one (1) month and one (1) day.21
We adopt the recommendation of the investigating judge.
Being an officer of the court, Andres must be aware that there are well-defined steps provided in the Rules of Court
regarding the proper implementation of a writ of replevin and/or an order of seizure. The Rules, likewise, is explicit on
the duty of the sheriff in its implementation. To recapitulate what should be common knowledge to sheriffs, the
pertinent provisions of Rule 60, of the Rules of Court are quoted hereunder:
SEC. 4. Duty of the sheriff.–Upon receiving such order, the sheriff must serve a copy thereof on the adverse party,
together with a copy of the application, affidavit and bond, and must forthwith take the property, if it be in the
possession of the adverse party, or his agent, and retain it in his custody. If the property or any part thereof be
concealed in a building or enclosure, the sheriff must demand its delivery, and if it be not delivered, he must cause the
building or enclosure to be broken open and take the property into his possession. After the sheriff has taken possession
of the property as herein provided, he must keep it in a secure place and shall be responsible for its delivery to the party
entitled thereto upon receiving his fees and necessary expenses for taking and keeping the same. (Emphasis supplied.)
SEC. 6. Disposition of property by sheriff.–If within five (5) days after the taking of the property by the sheriff, the
adverse party does not object to the sufficiency of the bond, or of the surety or sureties thereon; or if the adverse party
so objects and the court affirms its approval of the applicant’s bond or approves a new bond, or if the adverse party
requires the return of the property but his bond is objected to and found insufficient and he does not forthwith file an
approved bond, the property shall be delivered to the applicant. If for any reason the property is not delivered to the
applicant, the sheriff must return it to the adverse party. (Emphasis supplied.)
First, the rules provide that property seized under a writ of replevin is not to be delivered immediately to the
plaintiff.22 In accordance with the said rules, Andres should have waited no less than five days in order to give the
complainant an opportunity to object to the sufficiency of the bond or of the surety or sureties thereon, or require the
return of the seized motor vehicles by filing a counter-bond. This, he failed to do.
Records show that Andres took possession of two of the subject motor vehicles on October 17, 2005, four on October
18, 2005, and another three on October 19, 2005. Simultaneously, as evidenced by the depository receipts, on October
18, 2005, Silver received from Andres six of the seized motor vehicles, and three more motor vehicles on October 19,
2005. Consequently, there is no question that Silver was already in possession of the nine seized vehicles immediately
after seizure, or no more than three days after the taking of the vehicles. Thus, Andres committed a clear violation of
Section 6, Rule 60 of the Rules of Court with regard to the proper disposal of the property.
It matters not that Silver was in possession of the seized vehicles merely for safekeeping as stated in the depository
receipts. The rule is clear that the property seized should not be immediately delivered to the plaintiff, and the sheriff
must retain custody of the seized property for at least five days.23 Hence, the act of Andres in delivering the seized
vehicles immediately after seizure to Silver for whatever purpose, without observing the five-day requirement finds no
legal justification.
In Pardo v. Velasco,24 this Court held that
…Respondent as an officer of the Court is charged with certain ministerial duties which must be performed faithfully to
the letter. Every provision in the Revised Rules of Court has a specific reason or objective. In this case, the purpose of the
five (5) days is to give a chance to the defendant to object to the sufficiency of the bond or the surety or sureties
thereon or require the return of the property by filing a counterbond.…25 (Emphasis supplied.)
In Sebastian v. Valino,26 this Court reiterated that
Under the Revised Rules of Court, the property seized under a writ of replevin is not to be delivered immediately to the
plaintiff. The sheriff must retain it in his custody for five days and he shall return it to the defendant, if the latter, as in
the instant case, requires its return and files a counterbond.…27 (Emphasis supplied.)
Likewise, Andres’ claim that he had no knowledge that the compound is owned by Silver fails to convince us. Regardless
of who actually owns the compound, the fact remains that Andres delivered the vehicles to Silver prematurely. It
violates the rule requiring him to safekeep the vehicles in his custody.28 The alleged lack of facility to store the seized
vehicles is unacceptable considering that he should have deposited the same in a bonded warehouse. If this was not
feasible, he should have sought prior authorization from the court issuing the writ before delivering the vehicles to
Silver.
Second, it must be stressed that from the moment an order of delivery in replevin is executed by taking possession of
the property specified therein, such property is in custodia legis. As legal custodian, it is Andres’ duty to safekeep the
seized motor vehicles. Hence, when he passed his duty to safeguard the motor vehicles to Silver, he committed a clear
neglect of duty.
Third, we are appalled that even after PO3 Despe reported the unauthorized duplication of the vehicles’ keys, Andres
failed to take extra precautionary measures to ensure the safety of the vehicles. It is obvious that the vehicles were put
at risk by the unauthorized duplication of the keys of the vehicles. Neither did he immediately report the incident to the
police or to the court. The loss of the motor vehicles could have been prevented if Andres immediately asked the court
for an order to transfer the vehicles to another secured place as soon as he discovered the unauthorized duplication.
Under these circumstances, even an ordinary prudent man would have exercised extra diligence. His warning to the
policemen to closely watch the vehicles was insufficient. Andres cannot toss back to Silver or to the policemen the
responsibility for the loss of the motor vehicles since he remains chiefly responsible for their safekeeping as legal
custodian thereof. Indeed, Andres’ failure to take the necessary precaution and proper monitoring of the vehicles to
ensure its safety constitutes plain negligence.
Fourth, despite the cease and desist order, Andres failed to return the motor vehicles to their lawful owners. Instead of
returning the motor vehicles immediately as directed, he opted to write Silver and demand that she put up an indemnity
bond to secure the third-party claims. Consequently, due to his delay, the eventual loss of the motor vehicles rendered
the order to return the seized vehicles ineffectual to the prejudice of the complaining owners.
It must be stressed that as court custodian, it was Andres’ responsibility to ensure that the motor vehicles were safely
kept and that the same were readily available upon order of the court or demand of the parties concerned. Specifically,
sheriffs, being ranking officers of the court and agents of the law, must discharge their duties with great care and
diligence. In serving and implementing court writs, as well as processes and orders of the court, they cannot afford to err
without affecting adversely the proper dispensation of justice. Sheriffs play an important role in the administration of
justice and as agents of the law, high standards of performance are expected of them.29 Hence, his failure to return the
motor vehicles at the time when its return was still feasible constitutes another instance of neglect of duty.
Fifth, as found by the OCA, we agree that Andres also disregarded the provisions of Rule 14130 of the Rules of Court
with regard to payment of expenses.
Under Section 9,31 Rule 141 of the Rules of Court, the procedure for the execution of writs and other processes are:
First, the sheriff must make an estimate of the expenses to be incurred by him; Second, he must obtain court approval
for such estimated expenses; Third, the approved estimated expenses shall be deposited by the interested party with
the Clerk of Court and ex officio sheriff; Fourth, the Clerk of Court shall disburse the amount to the executing sheriff; and
Fifth, the executing sheriff shall liquidate his expenses within the same period for rendering a return on the writ.
In this case, no estimate of sheriff’s expenses was submitted to the court by Andres. Without approval of the court, he
also allowed Silver to pay directly to the policemen the expenses for the safeguarding of the motor vehicles including
their meals.32 Obviously, this practice departed from the accepted procedure provided in the Rules of Court.
In view of the foregoing, there is no doubt that Andres failed to live up to the standards required of his position. The
number of instances that Andres strayed from the regular course observed in the proper implementation of the orders
of the court cannot be countenanced. Thus, taking into account the numerous times he was found negligent and
careless of his duties coupled with his utter disregard of legal procedures, he cannot be considered guilty merely of
simple negligence. His acts constitute gross negligence.
As we have previously ruled:
…Gross negligence refers to negligence characterized by the want of even slight care, acting or omitting to act in a
situation where there is a duty to act, not inadvertently but willfully and intentionally, with a conscious indifference to
consequences in so far as other persons may be affected. It is the omission of that care which even inattentive and
thoughtless men never fail to take on their own property.…33 (Emphasis supplied.)
…Gross neglect, on the other hand, is such neglect from the gravity of the case, or the frequency of instances, becomes
so serious in its character as to endanger or threaten the public welfare. The term does not necessarily include willful
neglect or intentional official wrongdoing.34 (Emphasis supplied.)
Good faith on the part of Andres, or lack of it, in proceeding to properly execute his mandate would be of no moment,
for he is chargeable with the knowledge that being an officer of the court tasked therefor, it behooves him to make due
compliance. He is expected to live up to the exacting standards of his office and his conduct must at all times be
characterized by rectitude and forthrightness, and so above suspicion and mistrust as well.35 Thus, an act of gross
neglect resulting in loss of properties in custodia legis ruins the confidence lodged by the parties to a suit or the citizenry
in our judicial process. Those responsible for such act or omission cannot escape the disciplinary power of this Court.
Anent the allegation of grave abuse of authority (oppression), we likewise agree with the observations of the
investigating judge. Records show that Andres started enforcing the writ of replevin/order of seizure on the same day
that the order of seizure was issued. He also admitted that he took the vehicles of persons who are not parties to the
replevin case.36 He further admitted that he took one vehicle belonging to a certain Junard Escudero without the
latter’s knowledge and even caused the duplication of its keys in order that it may be taken by Andres.37 Certainly,
these are indications that Andres enforced the order of seizure with undue haste and without giving the complainant
prior notice or reasonable time to deliver the motor vehicles. Hence, Andres is guilty of grave abuse of authority
(oppression).
When a writ is placed in the hands of a sheriff, it is his duty, in the absence of any instructions to the contrary, to
proceed with reasonable celerity and promptness to execute it according to its mandate. However, the prompt
implementation of an order of seizure is called for only in instances where there is no question regarding the right of the
plaintiff to the property.38 Where there is such a question, the prudent recourse for Andres is to desist from executing
the order and convey the information to his judge and to the plaintiff.
True, sheriffs must comply with their mandated ministerial duty to implement writs promptly and expeditiously, but
equally true is the principle that sheriffs by the nature of their functions must at all times conduct themselves with
propriety and decorum and act above suspicion. There must be no room for anyone to conjecture that sheriffs and
deputy sheriffs as officers of the court have conspired with any of the parties to a case to obtain a favorable judgment or
immediate execution. The sheriff is at the front line as representative of the judiciary and by his act he may build or
destroy the institution.39
However, as to the charge of graft and corruption, it must be stressed that the same is criminal in nature, thus, the
resolution thereof cannot be threshed out in the instant administrative proceeding. We also take note that there is a
pending criminal case for carnapping against Andres;40 hence, with more reason that we cannot rule on the allegation
of graft and corruption as it may preempt the court in its resolution of the said case.
We come to the matter of penalties. The imposable penalty for gross neglect of duty is dismissal. While the penalty
imposable for grave abuse of authority (oppression) is suspension for six (6) months one (1) day to one (1)
year.41 Section 55, Rule IV, of the Uniform Rules on Administrative Cases in the Civil Service provides that if the
respondent is found guilty of two or more charges or counts, the penalty to be imposed should be that corresponding to
the most serious charge or count and the rest shall be considered as aggravating circumstances.
In the instant case, the penalty for the more serious offense which is dismissal should be imposed on Andres. However,
following Sections 5342 and 54,43 Rule IV of the Uniform Rules on Administrative Cases in the Civil Service, we have to
consider that Andres is a first-time offender; hence, a lighter penalty than dismissal from the service would suffice.
Consequently, instead of imposing the penalty of dismissal, the penalty of suspension from office for one (1) year
without pay is proper for gross neglect of duty, and another six (6) months should be added for the aggravating
circumstance of grave abuse of authority (oppression).
WHEREFORE, the Court finds Abe C. Andres, Sheriff IV, RTC of Davao City, Branch 16, GUILTY of gross neglect of duty and
grave abuse of authority (oppression) and is SUSPENDED for one (1) year and six (6) months without pay. He is also
hereby WARNED that a repetition of the same or similar offenses in the future shall be dealt with more severely.
SO ORDERED.
30 As amended by A.M. No. 04-2-04-SC, took effect on August 16, 2004.
31 SEC. 9. Sheriffs and other persons serving processes.—
xxxx
In addition to the fees hereinabove fixed, the party requesting the process of any court, preliminary, incidental, or final,
shall pay the sheriff’s expenses in serving or executing the process, or safeguarding the property, levied upon, attached
or seized, including kilometrage for each kilometer of travel, guards’ fees, warehousing and similar charges, in an
amount estimated by the sheriff, subject to the approval of the court. Upon approval of said estimated expenses, the
interested party shall deposit such amount with the clerk of court and ex officio sheriff, who shall disburse the same to
the deputy sheriff assigned to effect the process, subject to liquidation within the same period for rendering a return on
the process. Any unspent amount shall be refunded to the party making the deposit. A full report shall be submitted by
the deputy sheriff assigned with his return, and the sheriff’s expenses shall be taxed as costs against the judgment
debtor.
.
41 Civil Service Commission Resolution No. 991936 (1999) also known as the Uniform Rules on Administrative Cases in
the Civil Service, Rule IV, Section 52.
RULE IV – PENALTIES
Section 52. Classification of Offenses. – Administrative offenses with corresponding penalties are classified into grave,
less grave or light, depending on their gravity or depravity and effects on the government service.
xxxx
2. Gross Neglect of Duty
1st offense – Dismissal
xxxx
14. Oppression
1st offense – Suspension (6 mos. 1 day to 1 year)
xxxx
42 Section 53. Extenuating, Mitigating, Aggravating, or Alternative Circumstances. - In the determination of the penalties
to be imposed, mitigating, aggravating and alternative circumstances attendant to the commission of the offense shall
be considered.
xxxx
43 Section 54. Manner of Imposition. When applicable, the imposition of the penalty may be made in accordance with
the manner provided herein below:
a. The minimum of the penalty shall be imposed where only mitigating and no aggravating circumstances are present.
b. The medium of the penalty shall be imposed where no mitigating and aggravating circumstances are present.
c. The maximum of the penalty shall be imposed where only aggravating and no mitigating circumstances are present.
d. Where aggravating and mitigating circumstances are present, paragraph [a] shall be applied where there are more
mitigating circumstances present; paragraph [b] shall be applied when the circumstances equally offset each other; and
paragraph [c] shall be applied when there are more aggravating circumstances. (Emphasis supplied.)