Facts:

The case involves Perfecto Espanol as the petitioner and the Civil Service Commission, Federico N. Alday, Jr. (in his capacity as Administrator of the National Irrigation Administration), and Orlando L. Bulseco as the respondents. The events leading to this case began in September 1986 when the position of Regional Manager at the National Irrigation Administration (NIA), Regional Office No. 2 in Cauayan, Isabela, became vacant. At that time, Perfecto Espanol was serving as the Chief of the Engineering Division, while Orlando L. Bulseco held the position of Chief Design Engineer, which is subordinate to Espanol's role. On October 1, 1986, Bulseco was appointed as the Regional Manager following Resolution No. 5302-86 passed by the NIA Board of Directors.

In response, Espanol filed a protest with the Merit Systems Protection Board (MSPB), asserting that he was the next-in-rank employee and thus had priority for the promotion over Bulseco. The MSPB referred the matter to t...

Facts:

1. Vacancy and Positions Involved:
   In September 1986, the position of Regional Manager of the National Irrigation Administration (NIA), Regional Office No. 2, Cauayan, Isabela, became vacant. At the time, petitioner Perfecto Espanol was the Chief of the Engineering Division, while private respondent Orlando L. Bulseco was the Chief Design Engineer. The organizational chart of NIA indicated that the Chief of the Engineering Division (Espanol) was next-in-rank to the Regional Manager, while the Chief Design Engineer (Bulseco) was below the Chief of the Engineering Division.

2. Appointment of Bulseco:
   Private respondent Bulseco was appointed as Regional Manager effective October 1, 1986, pursuant to Resolution No. 5302-86 passed by the NIA Board of Directors. This appointment prompted petitioner Espanol to file a letter protest with the Merit Systems Protection Board (MSPB), claiming that he, as the next-in-rank employee, had promotional priority over Bulseco.

3. Dismissal of Protest by NIA Administrator:
   The NIA Administrator dismissed Espanol's protest, stating that Bulseco had an advantage over Espanol in terms of performance and potential.

4. MSPB Decision:
   The MSPB evaluated the qualifications of both Espanol and Bulseco, considering factors such as educational attainment, experience, eligibility, and training. While both candidates exceeded the qualification requirements, the MSPB ruled in favor of Espanol, citing his next-in-rank status under the organizational chart and Section 4 of CSC Resolution No. 83-343 (Rules on Promotion). The MSPB directed that Espanol be appointed as Regional Manager.

5. CSC Reversal:
   Bulseco appealed to the Civil Service Commission (CSC), which reversed the MSPB decision. The CSC found that Bulseco had prior experience as a Project Manager (a higher job level than Espanol's position) and had been demoted to Chief Design Engineer due to his resignation for an overseas assignment. The CSC held that Bulseco's qualifications and experience were superior, justifying his appointment despite not being next-in-rank.

Issue:

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Ruling:

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Ratio:

1. Discretion of Appointing Authority:
   Appointment is a discretionary power vested in the appointing authority, who may choose the most qualified candidate based on their judgment. The Civil Service Commission cannot substitute its judgment for that of the appointing authority, provided the appointee meets the legal qualifications for the position.

2. Next-in-Rank Rule Not Absolute:
   The next-in-rank rule under CSC Resolution No. 83-343 is not mandatory. While next-in-rank employees should be considered for promotion, the appointing authority may promote an employee who is not next-in-rank if they possess superior qualifications and competence. This rule is consistent with Section 19 of Presidential Decree No. 807 (Civil Service Law), which allows flexibility in appointments.

3. Superior Qualifications of Bulseco:
   The Court found that Bulseco's qualifications and experience, including his prior role as Project Manager and his performance in higher-level positions, justified his appointment over Espanol, despite Espanol being next-in-rank.

4. Policy Considerations:
   The Court emphasized that the appointing authority is in the best position to determine who can best fulfill the demands of a position, considering both formal qualifications and intangible qualities such as resourcefulness, loyalty, and the best interests of the service.

5. Superseding CSC Resolution:
   The Court noted that Section 4 of CSC Resolution No. 83-343 had been superseded by Section 2 of Rule 3 of CSC Resolution No. 89-799, which aligns more closely with the Civil Service Law by emphasizing consideration rather than mandatory promotion of next-in-rank employees.

The Supreme Court upheld the CSC's decision, emphasizing the discretionary power of the appointing authority and the non-mandatory nature of the next-in-rank rule. The Court found no abuse of discretion in the appointment of Bulseco, given his superior qualifications and experience.
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