Facts:

On October 21, 1991, the Executive Judge of the Regional Trial Court in Baguio City, Hon. Ruben C. Ayson, received a letter dated September 12, 1991, from Ms. Lolita Hernandez Loy, who accused Deputy Sheriff William Baden of serious irregularities during an auction sale of her real property, covered by Transfer Certificate of Title No. T-23372. This auction sale occurred in her absence. The background of the case stems from Civil Case No. 9611-R, where a judgment was rendered in favor of the plaintiff, Viola Macario, against the defendants, the spouses Lolita Hernandez Loy and Johnny Loy, ordering them to pay P29,000.00. Following the execution of the judgment, Hernandez Loy's property was levied to satisfy the debt.

The auction sale, conducted by Deputy Sheriff Baden on November 21, 1988, resulted in a highest bid of P242,000.00 from Clemente Gomoyod. Gomoyod's bid included amounts for the judgment debt, interest owed to Carmen Daclan, and expenses related to the ...

Facts:

1. Background of the Case:

   • The case involves a complaint filed by Lolita Hernandez Loy against Deputy Sheriff William Baden of the Regional Trial Court (RTC), Branch III, Baguio City, regarding irregularities in the auction sale of her property.
   • The property in question was covered by Transfer Certificate of Title No. T-23372.

2. Judgment and Execution:

   • In Civil Case No. 9611-R, a judgment was rendered in favor of Viola Macario against Lolita Hernandez Loy and her spouse, Johnny Loy, for the sum of P29,000.00.
   • The judgment became executory, and Lolita Hernandez Loy’s property was levied to satisfy the judgment.

3. Auction Sale:

   • The auction sale was conducted by Deputy Sheriff William Baden on November 21, 1988.
   • The highest bidder was Clemente Gomoyod, who submitted a bid of P242,000.00, broken down as follows:
     • P29,000.00 for Viola Macario (judgment creditor).
     • P203,000.00 for Carmen Daclan, who claimed a pecuniary interest in the property.
     • P10,000.00 for auction sale expenses (publication, capital gains tax, etc.).

4. Carmen Daclan’s Claim:

   • Carmen Daclan submitted a letter claiming a pecuniary interest of P203,000.00 in the property, broken down into:
     • P53,000.00 for debts paid on behalf of Lolita Hernandez Loy.
     • P130,000.00 for a Conditional Sale of the property.
     • P20,000.00 for arrears in city services paid on behalf of Lolita Hernandez Loy.

5. Payment and Certificate of Sale:

   • Gomoyod paid P39,000.00 in cash to Sheriff Baden, with the balance of P203,000.00 to be delivered to Carmen Daclan.
   • Baden issued a Certificate of Sale in favor of Gomoyod on November 22, 1988.
   • Out of the P39,000.00, Baden paid P29,000.00 to Viola Macario and retained P10,000.00 for expenses.

6. Complaint and Investigation:

   • Lolita Hernandez Loy filed a complaint in September 1991, nearly three years after the auction sale.
   • Executive Judge Ruben C. Ayson required Sheriff Baden and other court personnel to comment on the complaint.
   • Baden admitted to the facts but claimed ignorance of the proper procedure, as it was his first auction sale.

7. Findings:

   • Baden admitted to deviating from the proper procedure for execution sales, including failing to demand full payment from the highest bidder and improperly handling third-party claims.
   • He also admitted to refusing to issue a Writ of Possession or Final Certificate of Sale after discovering irregularities.

Issue:

• (Unlock)

Ruling:

• (Unlock)

Ratio:

1. Sheriff’s Duty in Execution Sales:

   • Sheriffs conducting execution sales are required to demand full payment of the bid amount from the highest bidder.
   • They have no authority to adjudicate or validate third-party claims on the property being sold.

2. Baden’s Violations:

   • Baden failed to demand full payment from Gomoyod, the highest bidder.
   • He improperly accepted a partial payment and allowed the balance to be paid to a third party (Carmen Daclan) without proper legal basis.
   • His actions deviated from the prescribed procedure under the Rules of Court.

3. Mitigating Circumstances:

   • Baden’s lack of experience and his refusal to issue a Writ of Possession or Final Certificate of Sale after discovering irregularities were considered mitigating factors.
   • However, these factors did not absolve him of liability for his ignorance of the law and reckless exercise of his duties.

4. No Liability for Other Court Personnel:

   • The record showed no evidence of complicity or negligence on the part of Clerk of Court Delilah Munoz or Deputy Sheriff Alfonso Melgar.

Conclusion:

Deputy Sheriff William Baden was found guilty of serious neglect of duty for failing to follow the proper procedure in conducting the auction sale. His actions, while mitigated by his inexperience, warranted a one-month suspension. No liability was found against the other court personnel involved.