Case Summary (G.R. No. L-68470)
Charges Against Respondent Sheriff
The affidavit-complaint submitted on August 31, 1999, accused Sheriff Bantuas of Gross Ignorance of the Law and Grave Abuse of Authority. It was alleged that despite his awareness of the ownership of the property by the corporation, he proceeded with a Notice of Levy that unjustly claimed rights over the property belonging to the corporation. On July 31, 1995, Booc informed the sheriff of the corporation's ownership and demanded the cancellation of the levy, threatening legal actions if he ignored the request.
Actions Leading to the Dispute
On August 20, 1999, the Five Star Marketing Corporation received a "Notice of Sale on Execution of Real Property" scheduled for public auction on August 31, 1999. To protect its interests, the corporation filed an action for Quieting of Title with RTC, Branch 4 of Iligan City. Bantuas, in his defense, asserted that the levy pertained to Rufino Booc's alleged share in the corporation, relying on documentation indicating that Rufino Booc owned shares of the corporation. He claimed to be acting within his duties according to Section 15, Rule 39 of the Rules of Court regarding the execution of a money judgment.
Counterclaims and Defense
In response, Booc refuted Bantuas' claims, asserting that the trial court had issued a restraining order against the auction of non-party property and that the order was misinterpreted by the sheriff. Evidence was presented showing the trial court's explicit directives that only shares of Rufino Booc should be auctioned, not the property of the corporation itself.
Findings of the Office of the Court Administrator
The Office of the Court Administrator (OCA) found Bantuas liable for bad faith, highlighting that he disregarded the warnings from Judge Mangotara and proceeded with an auction in violation of explicit instructions. The OCA's recommendation included re-docketing the case as a regular administrative matter and imposing a fine of Ten Thousand Pesos (P10,000) on the sheriff.
Analysis of Legal Principles
The OCA recognized that Bantuas failed to respect the separate legal identity of the corporation, mistakenly conflating the interests of the stockholder, Rufino Booc, with those of the corporation. Referencing established legal principles, the decision emphasized that a corporation has a distinct identity separate from its stockholders, meaning that a stockhol
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Case Overview
- This case originates from an affidavit-complaint filed by Salvador O. Booc against Malayo B. Bantuas, who is the Sheriff IV of the Regional Trial Court (RTC), Branch 3 in Iligan City.
- The complaint alleges Gross Ignorance of the Law and Grave Abuse of Authority by the respondent sheriff concerning Civil Case No. 1718, titled "Felipe G. Javier, Jr. vs. Rufino Booc."
- The complainant, Salvador Booc, serves as the President of Five Star Marketing Corporation.
Background of the Case
- On August 22, 1994, the respondent sheriff executed a Notice of Levy on a parcel of land owned by Five Star Marketing Corporation, as directed by a Writ of Execution related to the civil case.
- The complainant argues that the respondent sheriff was aware that the property belonged to the corporation, which was not a party in the civil case, thus making the levy improper.
Demand and Response
- On July 31, 1995, Five Star Marketing Corporation reiterated its ownership of the property to the respondent sheriff, emphasizing that Rufino Booc had no interest in the corporation.
- Despite the corporation's demand to cancel the notice of levy, the respondent sheriff proceeded with a "Notice of Sale on Execution of Real Property," leading to a scheduled public auction on August 31, 1999.
Respondent's Justifications
- In his defense, the respondent