Case Digest (G.R. No. L-32312)
Facts:
Aurelio Tiro v. Honorable Agapito Hontanosas, Zafra Financing Enterprise and Marcelino Zafra, G.R. No. L-32312, November 25, 1983, Supreme Court Second Division, Abad Santos, J., writing for the Court.Petitioner Aurelio Tiro, in his official capacity as City Superintendent of Schools of Cebu City, refused to allow Zafra Financing Enterprise (plaintiff) and its principal Marcelino Zafra to collect salary checks of certain public school teachers at the Division Office of the Bureau of Public Schools. Zafra asserted it had extended loans to those teachers and possessed promissory notes and special powers of attorney authorizing it to take and collect the teachers' salary checks.
Tiro justified his refusal by enforcing Circular No. 21, series 1969 issued by the Director of Public Schools (dated December 5, 1969), which directed cashiers or disbursing officers to pay salary checks or issue treasury warrants directly to the employee except when the authorized collector is an immediate family member or where special authorization is granted by specified executive officers; the circular aimed to discourage delegation of salary collection by attorneys-in-fact.
Zafra sued in Civil Case No. 11616 in the then Court of First Instance (CFI) of Cebu seeking: (a) a writ compelling Tiro to honor the special powers of attorney; (b) a declaration the Circular was illegal; and (c) attorney’s fees and damages. The trial court granted Zafra's primary prayer (compelling payment) but denied the claim for money damages on the ground that Tiro acted in good faith in implementing the Circular. Petitioner Tiro then filed a petition for review with the Supreme Court seeking reversal of ...(Subscriber-Only)
Issues:
- Is Circular No. 21, series 1969 valid and enforceable against persons claiming authority to collect teachers' salaries by virtue of powers of attorney?
- Does Circular No. 21 unlawfully impair the obligation of contracts or otherwise prevent private creditors from collecting loans made to teachers?
- Do salary checks of government employees belong to the payee before physical delivery so as to render assignability without government ...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)