Title
Dy Teban Trading Co., Inc. vs. Verga
Case
A.M. No. P-11-2914
Decision Date
Mar 16, 2011
Sheriff Archibald Verga suspended for six months without pay for Grave Misconduct, Dishonesty, and Neglect of Duty after mishandling a writ of execution, demanding unauthorized payments, and lifting garnishment notices without court approval.

Case Digest (A.M. No. P-11-2914)
Expanded Legal Reasoning Model

Facts:

  • Parties and Nature of the Complaint
    • Complainant: Dy Teban Trading Co., Inc., represented by Leo C. Dy, filed a complaint on May 20, 2009.
    • Respondent: Archibald C. Verga, Sheriff IV, of Regional Trial Court (RTC), Branch 33, Butuan City.
    • Charges: Dishonesty, Graft and Corruption, Gross Inefficiency, Neglect of Duty, and Usurpation of Judicial Authority in connection with the implementation of a Writ of Execution.
  • Background of the Case
    • Origin: The writ was issued following the finality of the RTC decision in SEC Case No. 16-2004, “Dy Teban Trading Co., Inc. v. Peter Dy, et al.”
    • Relief Sought:
      • Injunctive relief in the form of a temporary restraining order or preliminary injunction ordering respondents (Peter C. Dy, Johnny C. Dy, and Ramon C. Dy) to vacate the commercial premises.
      • Payment of various sums as damages including compensatory, nominal, exemplary damages, attorney’s fees, and litigation expenses, detailed with specific amounts.
  • Contentions on the Implementation of the Writ
    • Disputed Transactions:
      • Respondent allegedly demanded money from Lorencio Dy, the complainant’s brother, on December 12 and December 17, 2008.
      • Discrepancies arose regarding the amounts received—complainant alleges a total of P20,000 based on affidavits while the respondent admits to receiving only a part (P5,000) and preparing “Particulars of Expenses” for P11,000.
    • Alleged Forgery and Misconduct:
      • The “Particulars of Expenses” document, which purportedly justified the collection of money, was contested as a forgery by the complainant.
      • The clerk of court and branch clerk both denied its authenticity.
  • Investigative Findings and Administrative Proceedings
    • Office of the Court Administrator (OCA) Evaluation:
      • Found that the “Particulars of Expenses” was concocted by the respondent to justify his unauthorized collection of funds.
      • Noted that the respondent did not observe the proper procedure under Section 10 of Rule 141 regarding the collection and liquidation of expenses.
    • Previous Jurisprudence:
      • References were made to cases such as Cebrian vs. Monteroso and Vargas vs. Primo, emphasizing that a sheriff’s duty in executing a writ is strictly ministerial and devoid of discretion.
      • The established rules require prior court approval for expenses, proper deposit of collected funds, accurate liquidation, and issuance of official receipts, all of which were not followed by the respondent.
    • Consequences:
      • The unauthorized actions—demanding and misappropriating funds and causing the lifting of garnishment notices—were seen as a serious departure from his official duties.
      • This conduct provided the grounds for recommending disciplinary action against Sheriff Verga.

Issues:

  • Guilt of Misconduct and Neglect of Duty
    • Whether Sheriff Verga’s actions in demanding money from a party-litigant without complying with procedural requirements constitute grave misconduct, dishonesty, and neglect of duty.
    • Whether the unauthorized issuance of “Particulars of Expenses” and the subsequent handling of funds, absent proper court approval and accounting measures, amount to usurpation of judicial authority.
  • Procedural Lapses in the Execution of the Writ
    • Whether the respondent’s failure to secure prior court approval for estimated expenses and to adhere to the mandated process under Section 9 and Rule 141 of the Rules of Court justifies his suspension.
    • Whether his unilateral act of lifting garnishment notices—even allegedly acting in good faith—exceeded his ministerial duty in executing the writ.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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