G.R. No. 91551 - U.P. Board of Regents vs. Rasul

On June 26, 1986, Dr. Felipe A. Estrella, Jr. was appointed by the UP Board of Regents as Director of the Philippine General Hospital (PGH).
His term was set to take effect on September 1, 1986, and was scheduled to run until April 30, 1992, unless sooner terminated.
His appointment, like similar appointments made by the Board, was backed by the guarantee of security of tenure inherent to civil service positions.

Shortly after assuming office, a memorandum was submitted by U.P. President Dr. Jose V. Abueva on September 16, 1987, aimed at reorganizing U.P. Manila, which encompassed PGH.
The reorganization plan, approved on March 20, 1988, sought to restructure PGH by renaming it as the "UP-PGH Medical Center" and by expanding and consolidating its functions.
Key changes included:

The merging of certain administrative positions.
The conversion of some units (e.g., converting departments into hospitals with designated directors).
The abolition of the existing post of “PGH Director” with a proposal to create the “UP-PGH Medical Center Director” position.

On April 29, 1988, a memorandum was issued to create the Nomination Committee for the UP-PGH Medical Center Director.
On May 10, 1988, members of the newly created Nomination Committee were scheduled to nominate a successor for Dr. Estrella.

On May 2, 1988, Dr. Estrella filed a complaint for injunctive relief seeking a temporary restraining order and later a preliminary injunction.
His main objective was to forestall the nomination and removal process, thereby preserving his security of tenure against the reorganization plan.
The regional trial court, after due hearings and issuance of both a restraining order and a writ of preliminary injunction, eventually ruled in favor of Dr. Estrella.

The reorganization of PGH was executed in bad faith.
Dr. Estrella’s removal would amount to a circumvention of the constitutional guarantee of security of tenure.
The differences between the abolished PGH Director and the newly created Medical Center Director were merely nominal and did not justify substitution or removal.

The decision permanently enjoined the defendants from proceeding with any nomination or implementation of the reorganization plan that would affect Dr. Estrella’s position.
Petitioners alleged several errors amounting to grave abuse of discretion by the lower court, including claims of lack of jurisdiction on various grounds such as:

Violation of security of tenure.
Improper abolishment of an office through reorganization.
Failure to exhaust administrative remedies.
Implementing a reorganization plan without proper legislative authority and staffing pattern.

Whether Dr. Felipe A. Estrella, Jr., as the incumbent Director of PGH, could invoke his constitutional security of tenure despite the UP Board of Regents' effort to abolish his position through a reorganization.

The contention revolves around the legitimacy of abolishing a statutory office and substituting it with another office that ostensibly performs similar functions.
Whether mere reclassification and renaming to “UP-PGH Medical Center Director” invalidates the security of tenure granted to the original post.

Whether the actions of the UP Board of Regents in implementing the reorganization and abolishing the position of PGH Director were within the scope of their powers under Act No. 1870 as amended.

Scrutiny was placed on whether the power to combine and merge colleges also extends to the power to eliminate offices created by special laws.
Consideration was given to whether the reorganization was executed in good faith or as a device to forcibly remove the incumbent without proper cause.

Whether Dr. Estrella’s decision to seek judicial relief without exhausting all administrative remedies was justified under the special circumstances of impending removal.

The issue included analysis of exceptions to the exhaustion requirement when irreparable harm is imminent.