Title
Fortune Life Insurance Company, Inc. vs. Commission on Audit
Case
G.R. No. 213525
Decision Date
Jan 27, 2015
Provincial government's insurance payment disallowed by COA; petitioner's late filing, procedural non-compliance, and disrespectful language led to Supreme Court denial.

Case Digest (G.R. No. 213525)
Expanded Legal Reasoning Model

Facts:

  • Execution of Memorandum of Agreement and Premium Payment
    • Fortune Life Insurance Company, Inc. (petitioner) and the Provincial Government of Antique (LGU) entered into a memorandum of agreement to provide life insurance coverage to qualified barangay secretaries, treasurers, and tanods.
    • The LGU obligated the amount of P4,393,593.60 as premium payment and submitted the disbursement voucher to COA-Antique for pre-audit.
  • Disallowance of Payment and Appeal by LGU
    • The COA-Antique disallowed the payment citing lack of legal basis under Republic Act No. 7160 (Local Government Code).
    • The LGU filed an appeal, which was subsequently denied.
  • Petition for Money Claim Before COA
    • The petitioner filed a petition for money claim with COA.
    • On November 15, 2012, COA issued a decision denying the petition, holding that only municipal or city governments have power to secure group insurance for barangay workers under Sections 447 and 458 of the Local Government Code.
    • COA also noted LGU's failure to comply with publication requirements under Section 21 of Republic Act No. 9184 (Government Procurement Reform Act).
  • Motion for Reconsideration and Denial
    • The petitioner received a copy of the COA decision on December 14, 2012.
    • It filed a motion for reconsideration on January 14, 2013.
    • COA denied the motion, and the petitioner received the denial on July 14, 2014.
  • Filing of Petition for Certiorari and Dismissal
    • The petitioner filed a petition for certiorari on August 12, 2014.
    • The Court dismissed the petition on August 19, 2014, for:
      • Late filing of the petition.
      • Non-submission of proper proof of service and lack of verified declaration.
      • Failure to show grave abuse of discretion on the part of the respondents.

Issues:

  • Whether the petitioner complied with the requirements for filing a petition for certiorari, particularly concerning timeliness, proof of service, and submission of verified declaration.
  • Whether the “fresh period” rule as enunciated in Neypes v. Court of Appeals applies to the filing of a petition for certiorari under Rule 64 of the Rules of Court.
  • Whether petitioner showed or proved the existence of grave abuse of discretion on the part of the Commission on Audit in denying the claim.
  • Whether the petitioner and its counsel’s language constituted disrespect and contempt towards the Court and its Members.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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