Case Digest (G.R. No. 194538)
Facts:
On 25 May 1982, an accident occurred at the Malaya Thermal Plant of the National Power Corporation (NPC) involving steam release from leaking HPH 5B tube leaks, injuring Ernesto Pumaloy and Domingo Abodizo, a casual employee of O.P. Landrito’s General Services (OPLGS), a janitorial contractor of the NPC. OPLGS sought reimbursement for Abodizo’s hospitalization expenses totaling P53,802.26, which the NPC initially refunded based on legal opinion recommending favorable action.After post-audit, the Commission on Audit (COA) disallowed the refund for lack of an employer-employee relationship between NPC and Abodizo and made several NPC officials liable. The COA’s actions were challenged by Victori—ano V. Oroc—io (petitioner), who prepared the legal opinion relied upon for the refund, and the petition was granted by the Supreme Court, setting aside the COA-related actions that held petitioner personally liable.
Issues:
- Whether the legal opinion of petitioner, relied upon for the d
Case Digest (G.R. No. 194538)
Facts:
- Occurrence of the accident at the Malaya Thermal Plant
- On 25 May 1982, an accident occurred at the Malaya Thermal Plant of the National Power Corporation (NPC).
- Based on the accident report of Robinson D. Mapili and Ildefonso I. Barrera dated 27 May 1982, tube leaks on HPH 5B were confirmed at 2:30 o’clock in the morning of 25 May 1982.
- From the time of confirmation until 8:00 o’clock that morning, the system was drained and prepared for repair by mechanical maintenance personnel.
- By 8:45 o’clock, the system was declared safe for repair.
- Work progressed that same morning until 11:10 o’clock, when the plug from the leaking tube gave way.
- The released steam and hot water hit two employees working on the tube leak.
- Ernesto Pumaloy, an NPC employee, suffered first and second degree burns on the lower part of his body.
- Domingo Abodizo, a casual employee of O.P. Landrito’s General Services (OPLGS), a janitorial contractor of NPC assigned to the Maintenance Section, suffered first and second degree burns on nearly seventy percent (70%) of his body.
- The injured personnel were brought to Tanay General Hospital and were later transferred to Meralco’s J.F. Cotton Hospital.
- Total hospitalization expenses for Domingo Abodizo reached P53,802.26.
- NPC’s initial handling of Abodizo’s hospitalization expenses and refund to OPLGS
- NPC initially advanced the amount by setting it up as an account receivable from OPLGS, deducted in a staggered basis from OPLGS’s billings against NPC until fully satisfied.
- OPLGS, through its manager Ofelia Landrito, requested a refund of the total amount deducted from their billings in a letter dated 30 August 1982 to Mr. Larry S. Gaerlan, Vice-President, Human Resources & General Services (VP-HRGS) NPC.
- OPLGS reiterated the request in a follow-up letter dated 6 September 1982.
- In a Memorandum to VP-HRGS dated 14 September 1982, Atty. C.Q. Crucillo, Assistant Chief Legal Counsel of NPC, recommended favorable action on OPLGS’s request.
- Crucillo’s recommendation was forwarded to the Acting Manager of Metro Manila Regional Center (MMRC) of NPC.
- The opinion was referred to NPC’s General Counsel for comment.
- At that time, petitioner Victoriano V. Oracio, then Legal Services Chief D of NPC, was designated by the Manager of the Legal Counseling Division of NPC to attend and participate in a Management Convocation scheduled for 30 September to 2 October 1992, as officer-in-charge of the Office of the General Counsel for that period.
- In a memorandum dated 1 October 1982, petitioner, as officer-in-charge, recommended favorable action on OPLGS’s request.
- Petitioner’s memorandum stated that, under Article 2176 of the Civil Code and the doctrine of *res ipsa loquitor* (sic), it could be reasonably inferred that the incident causing injuries to Mr. Abodizo happened for want of care on the part of the MMRC crew, thereby rendering NPC, as employer and owner of the Malaya Thermal Plant, liable for damages sustained by Mr. Abodizo.
- Petitioner further stated that under Article 2179 of the Civil Code, NPC may not be liable for such damages only if Abodizo’s own negligence was the immediate and proximate cause, which petitioner said was not the case.
- The amount for hospitalization expenses was thereafter refunded to OPLGS.
- Disallowance by the Commission on Audit and designation of accountable officials
- In Certificate of Settlement and Balances (CSB) No. 01-04-83 prepared by respondent Jose M. Agustin, Unit Auditor of COA assigned to NPC-MMRC, on 30 July 1989, the refund of hospitalization expenses for Domingo Abodizo was disallowed.
- The stated ground was that, under the NPC-OP Landrito contract, there was no employer-employee relationship between NPC and O.P. Landrito’s employees, hence NPC was not answerable for the expenses.
- The disallowance was made to be refunded by the following persons:
- Mr. M.V. Villafuerte (Approving Authority) — primarily liable.
- E. Camama and P. Gajasan (Management’s examiners) — secondarily and jointly liable.
- L. Hermosura (Chief Accountant) — primarily liable.
- Internal NPC responses and COA confirmations, including petitioner’s legal opinion
- General Counsel Marcelino C. Ilao of NPC, in a Memorandum of 6 September 1984, asked for reconsideration of the disallowance.
- Ilao stressed that the legal opinion dated 1 October 1982 admitted no employer-employee relationship between NPC and Abodizo.
- Ilao stated that the legal opinion nonetheless premised payment on quasi-delict, specifically the negligence and/or want of care on the part of the MMRC crew that resulted in Abodizo’s injuries, and that obligation arose not only from contracts but also from quasi-delicts.
- In a memorandum dated 9 January 1985, respondent Agustin informed General Counsel Ilao that he adopted his stand contained in his memorandum to the COA Regional Director dated 9 October 1984.
- Agustin maintained that, without pre-existing contractual relation, NPC was not liable for damages, and that while quasi-delicts could be a source of obligation, the negligence of the party from whom damages were being recovered must first be proven.
- Agustin stated that the NPC Legal Office’s opinion conceded lack of proof of negligence on the part of NPC personnel undertaking the repair or on the part of the corporation.
- Agustin further stated that the negligence of the crew did not automatically and/or equally make the corporation negligent.
- Agustin added that it was not for the NPC Legal Office to declare the corporation negligent and admit liability and that the matter should be left to a competent court.
- The COA Regional Director, respondent Leon J. Pilar, Jr., in a Memorandum dated 3 December 1984, confirmed the disallowance and held that the persons determined to be liable should refund the amount disallowed and/or that the proper official should retain any money due them for satisfaction thereof.
- General Counsel Ilao filed a second request for reconsideration on 14 February 1985.
- The second request invoked Section 15-A of R.A. No. 6395 (NPC charter), as amended, on handling of legal matters by NPC’s General Counsel, asserting legal authority over legal opinions.
- In a first indorsement dated 22 March 1985, respondent Agustin submitted the request to the Chairman of COA, stating that his findings had already been confirmed by the Regional Director, NCR.
- In a second indorsement dated 2 April 1985, respondent Sofronio B. Ursal, Manager of COA’s Corporate Audit Office, referred the request for reconsideration to the Auditor, NPC.
- In a third indorsement dated 24 April 1985, respondent Marcos Segarra returned the second indorsement to Ursal, concurring with Agustin’s comment/opinion in the 1st indorsement of 22 March 1985.
- In a fourth indorsement dated 30 May 1985, respondent Ursal, concurring with the disallowance, referred the request for reconsideration to COA’s General Counsel for an opinion.
- In a fifth indorsement dated 21 May 1986, Ricardo G. Nepomuceno, Jr., COA General Counsel, acting “FOR THE COMMISSION,” returned the matter to the Unit Auditor and concurred with Agustin’s views in his 1st indorsement of 22 March 1985.
- On 30 June 1986, respondent, now as Regional Auditor, transmitted to the General Counsel of NPC a copy of COA General Counsel Nepomuceno’s 5th indorsement and the pertinent papers regarding the appeal relative to the disallowance.
- On the same date, respondent Ursal also sent a memorandum to VP-MMRC of NPC, ordering that the subject disallowance be booked in petitioner’s name, jointly and severally with Mr. M.V. Villafuerte, Ms. P. Gajasan, and Ms. L.M. Hermosura, amending previous findings on who was liable.
- Debit Memorandum and filing of the petition
- On 22 July 1986, a Debit Memorandum was ...(Subscriber-Only)