A.M. No. P-95-1163 - Sy vs. Cruz

Complainant Danilo M. Sy, Local Revenue Officer II of Marikina, alleged misconduct by Isabelita M. Cruz, Branch Clerk of Court of the Metropolitan Trial Court, Branch 76, Marikina.
The dispute originated from a compromise agreement between Danilo Sy and his brother, Alfredo Sy, involving the repayment of ₱350,000.00 owed by the complainant to his brother.
Under the agreement, monthly payments of ₱10,000.00 were to be deposited with respondent acting as a neutral trustee.

From August 1993 to February 1994, the complainant made monthly deposits totaling ₱70,000.00.
Respondent issued corresponding receipts acknowledging receipt of each deposit.
A change occurred when Alfredo Sy appointed a new depositary, Lani Ayuson, following a falling out between him and the respondent.
The complainant repeatedly requested that the respondent turn over the sums deposited to the new depositary, but these requests were ignored.

A written demand for the return of the funds was served on April 22, 1994, through counsel.
Respondent replied on May 2, 1994, claiming she was awaiting the release of her PAG-IBIG loan as justification for her delay.
Subsequent demand letters dated June 1 and June 15, 1994, were likewise ignored by the respondent.

The complainant filed a complaint for estafa on August 30, 1994 with the Provincial Prosecutor of Rizal in addition to initiating an administrative case under civil service laws.
In her Comment, the respondent stated that the funds were not returned because they were meant to be turned over to Lani Ayuson, a fact complicated by personal connections (Ayuson being the niece of the wife of Alfredo Sy).
The respondent eventually submitted the funds to Ayuson on October 18, 1994 in the presence of the Rizal Provincial Prosecutor.
She further escalated the matter by attacking the complainant’s character, alleging misconduct on his part, and filing counter-charges of gross misconduct and malversation against him with the Municipal Mayor and the Office of the Ombudsman.

As a court employee, the respondent was expected to maintain high standards of integrity, impartiality, and decorum.
Her involvement in acting as a trustee in a private matter directly conflicted with her official responsibilities.
Her decision to accept the role of trustee came through the intercession of a lawyer (Atty. Cesar Lavina), which further complicated the separation between her official duties and personal engagements.

Whether the respondent, by acting as trustee of funds deposited in connection with a private settlement, violated the ethical standards required of a court employee.
Whether her involvement in a private financial transaction constituted a conflict of interest given her official position.

Whether the respondent’s failure to promptly return the deposited funds, coupled with her explanation regarding the PAG-IBIG loan, constituted misappropriation.
Whether her conduct amounted to grave dishonesty under Section 23(A), Rule XIV of the Civil Service Law warranting harsher disciplinary measures.

Whether her imputation of unsavory personal traits against the complainant was a proper exercise of discretion or an abuse of her position.
Whether her counter-charges against the complainant, seemingly motivated by revenge, detracted from her professionalism and integrity as a court employee.