Title
Abad vs. Dela Cruz
Case
G.R. No. 207422
Decision Date
Mar 18, 2015
Herminio Dela Cruz's appointment as City Assessor was upheld despite exceeding the three-salary-grade rule, as the Supreme Court deemed it a "very meritorious case" with a deep selection process, affirming merit-based appointments over next-in-rank claims.

Case Summary (G.R. No. 207422)

Petitioner

Angel A. Abad challenged the permanent appointment of Herminio Dela Cruz to a Salary Grade 27 position, alleging violation of the three-salary-grade rule and bypass of qualified next-in-rank employees.

Respondent

Herminio Dela Cruz, appointed City Assessor (City Government Department Head III) by Mayor Fresnedi, whose qualification and deep selection process were upheld by the CSC and Court of Appeals.

Key Dates

• December 28, 2006 – Dela Cruz’s permanent appointment effective.
• January 26, 2007 – Abad’s letter to CSC requesting disapproval.
• July 1, 2007 – Mayor San Pedro assumes office.
• September 25, 2007 – Abad’s administrative complaint to Mayor’s Office.
• August 17, 2009 – CSC-NCR invalidates Dela Cruz’s appointment.
• June 22, 2010 – CSC en banc reverses CSC-NCR and upholds appointment.
• April 11, 2012 – Court of Appeals affirms CSC resolution.
• March 18, 2015 – Supreme Court decision denying the petition for review.

Applicable Law

• 1987 Philippine Constitution, Article IX-B (merit system).
• Local Government Code (RA 7160), Section 472(a) (assessor qualifications).
• CSC Memorandum Circular No. 3, Series of 2001 (three-salary-grade and next-in-rank rules).
• CSC Resolution No. 03-0106 (meritorious exception to salary-grade limitation).
• Omnibus Rules, Executive Order No. 292, Book V (personnel selection, next-in-rank).

Factual Background

Mayor Fresnedi appointed Dela Cruz as City Assessor (Salary Grade 27) despite his previous Salary Grade 18 position. Abad, a Grade 23 incumbent, alleged that the promotion exceeded the allowable three-salary-grade increase and that next-in-rank applicants were excluded.

Proceedings Before the Civil Service Commission

The CSC-NCR invalidated the appointment for violating the three-salary-grade rule. On appeal, the CSC en banc found that a deep selection process had been conducted—ranking nine applicants on performance, work history, awards, education, training, potential, and personality traits—and classified Dela Cruz’s appointment as a “very meritorious case” exempted from the grade limitation.

Proceedings Before the Court of Appeals

The Court of Appeals affirmed the CSC en banc, ruling that the next-in-rank rule is merely preferential and does not vest exclusive appointment rights. It also found Abad failed to prove his status as next in rank or exclusion from consideration, and that Dela Cruz met minimum qualification requirements.

Issues

  1. Whether the appointment violated the next-in-rank rule.
  2. Whether the appointment lacked a deep selection process.

The Centrality of the Merit Principle

Under the 1987 Constitution and CSC rules, civil service appointments must prioritize merit and fitness. Competitive examinations and selection criteria—including non-quantifiable traits—are within the appointing authority’s discretion, subject to CSC attestation.

Next-in-Rank Rule Application

The next-in-rank rule mandates that qualified employees occupying the next lower positions be considered for promotion but does not guarantee unchallenged appointment. The burden lies on the protestant to prove next-in-rank status. Abad failed to demonstrate his position was officially designated next-in-rank to the City Assessor III.

Three-Salary-Grade Rule and Meritorious Exception

The CSC Memorandum Circular No. 3 limits promotions beyond three salary grades unless “very meritorious.” CSC Resolution No. 03-0106 lists exceptions, including a deep selection process asses





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