G.R. No. 170463 - Board of Trustees of the Government Service Insurance System vs. Velasco

Board of Trustees of the Government Service Insurance System and Winston F. Garcia, in his capacity as GSIS President and General Manager — Petitioners before the Supreme Court; respondents were administratively charged and preventively suspended by GSIS on 23 May 2002.
Albert M. Velasco — Respondent; held the position of Attorney V in the Department of Investigation; resident of the City of Manila.
Mario I. Molina — Respondent; held the position of Attorney V in the Legal Department.

Petitioners charged respondents administratively on 23 May 2002 for alleged participation in a demonstration denouncing alleged corruption in the GSIS and calling for the ouster of petitioner Winston F. Garcia; respondent Velasco was also charged with violation of office decorum and gross insubordination.
Respondents were placed under preventive suspension for ninety days beginning 23 May 2002; preventive suspension ended on 21 August 2002.

On 4 April 2003 respondent Molina requested implementation of his step increment; on 22 April 2003 GSIS Senior Vice President Concepcion L. Madarang denied the request citing GSIS Board Resolution No. 372 (issued 21 November 2000), which included the provision that step increment adjustment of an employee on preventive suspension shall be withheld until a decision on the case is rendered.
Respondents requested entitlement to employee privileges under GSIS Board Resolution No. 306 (issued 23 October 2002) approving Christmas raffle benefits; the request was denied because of pending administrative cases.
On 27 August 2003 the GSIS Board issued Board Resolution No. 197 approving a policy disqualifying an employee with a pending administrative case from promotion, step increment, performance-based bonus, and other benefits during the pendency of the case.

On 14 November 2003 respondents filed a petition for prohibition with prayer for a writ of preliminary injunction before the Regional Trial Court of Manila, Branch 19 (Civil Case No. 03-108389), seeking to restrain petitioners from implementing Resolution Nos. 372, 197, and 306 and to declare acts emanating therefrom void.
Petitioners filed comment with motion to dismiss on 24 November 2003; respondents opposed the motion on 2 December 2003; petitioners replied on 5 December 2003.
On 16 January 2004 the trial court denied petitioners’ motion to dismiss and granted respondents’ prayer for a writ of preliminary injunction; petitioners’ motion for reconsideration was denied on 26 February 2004.
On 24 September 2004 the trial court granted the petition for prohibition, declared Resoluti...(Subscriber-Only)

Whether jurisdiction over Civil Case No. 03-108389 lies with the Civil Service Commission (CSC) and not with the Regional Trial Court of Manila, Branch 19.
Whether a Special Civil Action for Prohibition against the GSIS Board or its President and General Manager exercising quasi-legislative and administrative functions in Pasay City is outside the territorial jurisdiction of RTC-Manila, Branch 19.
Whether internal rules and regulations need not require publication with the University of the Philippines Law Center for their effectivity, contrary to the trial court’s conclusion.
Whether a regulation disqualifying government employees who have pending administrative cases from grant of step increment...(Subscriber-Only)