PERSONS & FAMILY

TOPIC: Article 7 - Laws are repealed only by subsequent ones, and their violation or non-
observance shall not be excused by disuse, or custom or practice to the contrary.
TITLE: Judge Dadole, Et Al. v. COA
G.R. No. 125350             December 3, 2002
PETITIONER: Hon. RTC Judges Mercedes G. Dadole (Exec. Judge, Br. 28), Ulric R. Caete
(Presiding Judge, Br. 25), Hon. MTC Judges Temistocles M. Boholst (Presiding Judge, Br. 1),
Vicente C. Fanilag ( Judge Designate, Br. 2), Wilfredo A. Dagatan (Presiding Judge, Br. 3), All
of Mandaue City
RESPONDENT: Commission on Audit
PONENTE: Corona, J.

FACTS:
In 1986, petitioners as RTC and MTC judges stationed in Mandaue City received a monthly al-
lowance of P1,260 each pursuant to the yearly appropriation ordinance. In 1991, it was increased
to P1,500 for each judge.

However, on March 15, 1994, the Department of Budget and Management (DBM) issued Local
Budget Circular No. 55 (LBC 55) which provides that the additional monthly allowances to be
given by a local government unit should not exceed P1,000 in provinces and cities and P700 in
municipalities.

Acting on the said DBM directive, the Mandaue City Auditor issued notices of disallowance to
herein petitioners in excess of the amount authorized by LBC 55. Thus, petitioners filed with the
Office of the City Auditor a protest. However, it was treated as a motion for reconsideration and
was endorsed to the Commission on Audit (COA) Regional Office No. 7. In turn, the COA Re-
gional Office referred the said motion to their Head Office with recommendation that the same
should be denied. Accordingly, it was denied by the COA.

Hence, petitioners filed the instant petition. They argued, among others, that LBC 55 is void for
infringing on the local autonomy of Mandaue City by dictating a uniform amount that a local
government unit can disburse as additional allowances to judges stationed therein. 

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 PERSONS & FAMILY

ISSUE:
WoN the yearly appropriation ordinance enacted by Mandaue City providing for fixed al-
lowances for judges contravenes any law and should therefore be struck down as null and void.

RULING:
No. the yearly appropriation ordinance enacted by Mandaue City providing for fixed allowances
for judges is VALID.

COA failed to prove that Mandate City used IRA to spend for additional allowances of the
judges. There was no evidence submitted by COA showing the breakdown of the expenses of the
city government and the funds for said expenses. All the COA presented were the amounts ex-
pended, the locally generated revenues, deficit, surplus and the IRA received each year. Just be-
cause MAndaue City’s locally generated revenues were not enough to cover its expenditures, did
not mean that the additional allowances of the petitioner judges were taken from the IRA and not
from the city’s own revenues.

DBM did not conduct a formal review nor ordered a disapproval of Mandate City’s appropriation
ordinances, in accordance with the procedure outlined by Sec 326 and 327 of the LGC. Thus,
within 90 days from receipt of the copies of the appropriation ordinance, the DBM should have
taken positive action. Otherwise, such ordinance was deemed to have been properly reviewed
and deemed to have taken effect. Inasmuch as, in the instant case, the DBM did not follow the
appropriate procedure for reviewing the subject ordinance of Mandaue City and allowed the 90-
day period to lapse, it can no longer question the legality of the provisions in the said ordinance
granting additional allowances to judges stationed in the said city.

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