Title
Anciano vs. Otadoy
Case
G.R. No. L-21267
Decision Date
Feb 28, 1969
Filomeno Anciano, a retired government employee, sought gratuity under Act 2589 after receiving GSIS benefits. The Supreme Court ruled that Poro municipality was not liable for the gratuity, as funds were sourced from the National Treasury, and double benefits under both laws were prohibited.
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Case Digest (G.R. No. L-21267)

Facts:

Employment History

  • Filomeno Anciano served in various government positions from August 6, 1917, until his retirement on December 19, 1958. His roles included:
    • Temporary clerk in the municipal treasurer’s office of Catarman, Misamis (1917).
    • Acting principal clerk in the municipal treasurer’s office of Bogo, Cebu (1919).
    • Acting municipal treasurer and postmaster of Tudela, Cebu (1920).
    • Permanent treasurer and postmaster of Tudela, Cebu (1924).
    • Municipal treasurer and postmaster of Poro, Cebu (1930).
    • Municipal treasurer of San Francisco, Cebu (1947).
    • Municipal treasurer of Tudela, Cebu (1949).
    • Municipal treasurer and postmaster of Poro, Cebu (1953).

Retirement Application

  • On May 6, 1928, Anciano applied for benefits under Act 2589 (Osmeña Retirement Law), which was acknowledged by the Office of the Governor-General on June 7, 1928.
  • On November 14, 1936, Commonwealth Act 186 (Government Service Insurance Act) was enacted, making the province of Cebu a member of the Government Service Insurance System (GSIS). However, the municipality of Poro, Cebu, was not a member because it was not a first-class municipality.

Retirement Premiums and Benefits

  • As deputy provincial treasurer and postmaster, Anciano paid retirement premiums to the GSIS, with the province of Cebu contributing the employer’s share. However, no premiums were paid for his role as municipal treasurer since Poro was not a GSIS member.
  • Upon retirement in 1958, Anciano received GSIS retirement benefits for his roles as deputy provincial treasurer and postmaster. His application for retirement compensation as municipal treasurer was denied because Poro was not a GSIS member.

Claim Under Osmeña Retirement Law

  • Anciano pursued retirement benefits under Act 2589. On February 11, 1960, the Civil Service Commission ruled that he had established his right to retirement under Section 1 of Act 2589.
  • The provincial treasurer of Cebu recommended including Anciano’s retirement pay in Poro’s budget for 1962-1963, but the municipal council and mayor refused.

Legal Action

  • On July 27, 1962, Anciano filed a mandamus case with damages against the mayor, vice-mayor, municipal council members, and treasurer of Poro, Cebu, in their official and private capacities.
  • The Court of First Instance of Cebu dismissed Anciano’s petition on February 6, 1963, prompting his appeal.

Issue:

  1. Whether the municipality of Poro, Cebu, is obligated to pay the gratuity under Act 2589, despite not being a GSIS member.
  2. Whether there is a law requiring a non-member municipality to pay gratuity from its funds.
  3. Whether the lower court erred in dismissing Anciano’s petition for mandamus and damages.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)


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