Facts:

The case of Roman D. Abellera vs. The City of Baguio (G.R. No. L-23957) revolves around administrative charges against Roman D. Abellera, the cashier in the office of the City Treasurer of Baguio. The events began when Abellera was charged with "Dishonesty and Gross Negligence in the Performance of Official Duties" on January 18, 1960, due to the payment of city treasury warrants and checks that later turned out to be forged, resulting in a loss to the city amounting to P8,750.48. Following the lapse of his preventive suspension, Abellera was automatically reinstated on May 24, 1960, but on June 6, 1961, he was found guilty of the charges by the Commissioner of Civil Service, who ruled that he was "resigned effective the date following his last day of duty with prejudice to reinstatement in positions involving money and/or property." Consequently, he was formally dismissed on July 10, 1961. Abellera appealed this decision to the Civil Service Board of Appeals

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Facts:

Background and Initiation of Administrative Proceedings

• Roman D. Abellera, then cashier in the office of the City Treasurer of Baguio, was charged administratively on January 18, 1960, for “Dishonesty and Gross Negligence in the Performance of Official Duties” due to the payment, out of city funds, of treasury warrants and checks later discovered to be forged, amounting to a total loss of P8,750.48 to the city.
• After a period of preventive suspension, Abellera was automatically reinstated on May 24, 1960.
• On June 6, 1961, the Commissioner of Civil Service found him guilty and declared that he had “resigned effective the date following his last day of duty with prejudice to reinstatement in positions involving money and/or property responsibility.”

Dismissal and Subsequent Employment Actions

• Based on the Commissioner's decision, Abellera was dismissed on July 10, 1961, and his position was filled by Francisco Rillera.
• Abellera appealed against his dismissal; however, before completion of administrative remedies, his dismissal had already been effected by city officials.
• Upon filing a motion for a new trial which was denied, he subsequently appealed to the Civil Service Board of Appeals, which on January 25, 1963, modified the penalty imposed by reducing it to a two‑month suspension, while affirming the rest of the Commissioner's ruling.

Filing of the Mandamus Action and Allegations

• On January 17, 1963, Abellera filed an action for mandamus in the Court of First Instance of Baguio.
• In his petition, he sought:
• Reinstatement to his former position of city cashier with back salaries from the date of his suspension (July 10, 1961).
• Moral damages amounting to P5,000.00.
• Exemplary damages of P5,000.00.
• Attorneys’ fees (P1,500.00 plus 20% of the recoverable salaries) and costs of the suit.
• Respondents (including the City of Baguio, City Council, City Auditor, and City Treasurer in both official and personal capacities) argued that:
• The non-reinstatement as cashier was due to the cancellation of Abellera’s bond following the administrative ruling finding him negligent.
• Abellera was instead offered the position of Special Deputy, with compensation at P3,960.00 per annum, as part of a remedial measure.
• The action was taken purely in the interest of the government.

Lower Court Decision

• On June 8, 1964, the lower court ruled that:
• The action of the City Treasurer in not reinstating Abellera as cashier was justified by the Civil Service Board of Appeals’ decision, which reduced the penalty to a two‑month suspension but otherwise affirmed the Commissioner's decision.
• Abellera was, nevertheless, entitled to receive his salary from the date of suspension (July 10, 1961) until November 10, 1963, deducting the equivalent of two months’ pay as penalty.
• He was to be reinstated to a position in the city service with a salary of P330.00 a month, albeit not in any capacity involving the custody of funds and/or property.
• No damages were awarded since no bad faith or malice could be attributed to any of the respondents, and as a municipal entity, the city could not be held civilly liable for acts of misfeasance or malfeasance by its employees.

Appeals to the Supreme Court

• Respondents-appellants (the City of Baguio and its officials) challenged the award of back salaries, arguing that:
• The penalty, even though reduced to a two‑month suspension by the Civil Service Board of Appeals, did not justify paying back salaries for the entire period of suspension (which extended over two years).
• Payment of back salaries was within the discretion of the proper department head (in this case, the Secretary of Finance) and therefore not automatic.
• Petitioner-appellant contended that the lower court erred by:
• Not ordering his reinstatement to the position of cashier.
• Failing to award damages.

Issue:

• Whether Roman D. Abellera was entitled to receive back salaries for the period from July 10, 1961, to November 10, 1963, during which he was kept from performing his duties, despite the reduction of the penalty to a two‑month suspension by the Civil Service Board of Appeals.
• Whether the premature dismissal of Abellera, prior to the finalization of administrative appeals, rendered his continued suspension unjustified, thereby necessitating the payment of back salaries.
• Whether there was any ground to award damages and reinstate Abellera in his original position as cashier given the circumstances and the administrative findings.
• Whether the discretionary power of the department head regarding the payment of back salaries is superseded by the provisions of Republic Act 2260 (Revised Civil Service Act).
• Whether the City of Baguio and its officials can avoid liability based on the exemption provisions in the charter or if their actions, though taken in good faith, amounted to an unjustified prolongation of suspension.

Ruling:

• (Subscriber-Only)

Ratio:

• (Subscriber-Only)

Doctrine:

• (Subscriber-Only)