Case Digest (G.R. No. L-46484) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
Dr. Raoul C. Villarete, Deputy Director for Medical Services of the Lung Center of the Philippines (LCP), entered on November 7, 2003 into a P60,200,000.00 lease contract with Himex Corporation for various medical equipment, with an option to purchase within six months and a 60-month rental term. On January 30, 2004, the Commission on Audit (COA) issued an Audit Observation Memorandum questioning LCP’s first payment of P8,723,000.00 and an alleged P786,352.50 in unnecessary bank charges for a stand-by letter of credit. The LCP failed to comment, prompting a May 19, 2004 Notice of Suspension. In August 2004, LCP filed justifications and sought to lift the suspension, but on October 10, 2005 COA Decision No. 2005-067 denied relief, disallowed the payments for non-compliance with Republic Act No. 9184, and held Dr. Villarete and others jointly liable. LCP’s April 17, 2006 Memorandum on Appeal argued RA 9184 was inapplicable and funds were properly sourced, yet on September 13, 2012 Case Digest (G.R. No. L-46484) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Background of the Dispute
- Dr. Raoul C. Villarete (“petitioner”) was Deputy Director for Medical Services of the Lung Center of the Philippines (“Lung Center”).
- He filed a Petition for Review under Rule 64, assailing:
- COA Letter (Sept. 8, 2015) denying his Motion to Lift Order of Execution No. 2015-032; and
- COA Resolution (Mar. 15, 2018) denying his Motion for Reconsideration.
- Lease Contract and Initial Audit
- On November 7, 2003, Lung Center leased medical equipment from Himex Corporation for ₱60,200,000.00, 60-month term, with six-month purchase option.
- COA’s Audit Observation Memorandum No. 2004-004 (Jan. 30, 2004) questioned:
- First payment of ₱8,723,000.00; and
- ₱786,352.50 incurred for a stand-by letter of credit.
- Lung Center failed to comment; COA issued Notice of Suspension No. LCP-04-001-(03-04) (May 19, 2004).
- COA Decisions and Liability
- Lung Center justified transactions (Aug. 9, 2004) and sought lifting of suspension.
- COA Decision No. 2005-067 (Oct. 10, 2005) denied lift-suspension request, disallowed payments for procurement violations (no failed biddings, specification mismatches, and L/C charges).
- Held liable: Dr. Villarete (for certifying legality), Angeline Rojas (Accounting Chief), Dr. Juanito Rubio (approving officer), and Himex.
- Appeals, Service, and Finality
- Memorandum on Appeal filed April 17, 2006; denied by COA Decision No. 2012-138 (Sept. 13, 2012).
- Service claimed on Sept. 18, 2012 to Dr. Danguilan (successor) and “representative” of Dr. Villarete; only Lung Center filed MFR, denied Dec. 6, 2013.
- Decision became final Sept. 18, 2012; Notice of Finality issued June 16, 2014, received by unidentified “Chie” for petitioner.
- COA Order of Execution No. 2015-032 issued May 29, 2015. Petitioner moved to lift (July 28, 2015) and for reconsideration; both denied (Sept. 8, 2015 Letter; Mar. 15, 2018 Resolution).
- Instant Petition
- Petitioner contends he was never properly served Decision No. 2012-138 or subsequent orders, thus denied due process.
- COA counters that service was made on petitioner’s representatives, and petition raises factual matters beyond the Court’s scope.
Issues:
- Whether the Commission on Audit committed grave abuse of discretion in issuing the September 8, 2015 Letter and March 15, 2018 Resolution.
- Whether petitioner was deprived of due process by lack of proper notice of Decision No. 2012-138 and related orders, affecting finality and execution.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)