G.R. No. 106296 - Crisostomo vs. Court of Appeals

Case Summary (G.R. No. 106296)

Key Dates and Procedural Posture

Important dates: petitioner appointed PCC President July 17, 1974; preventive suspension October 22, 1976; P.D. No. 1341 converting PCC into PUP issued April 1, 1978; P.D. No. 1437 fixing terms of heads of state universities issued June 10, 1978; Mateo appointed PUP President March 28, 1980; petitioner acquitted by the Circuit Criminal Court July 11, 1980 with an order of reinstatement; Tanodbayan (Ombudsman) cases dismissed August 8, 1991; petitioner moved for execution February 12, 1992 and the RTC issued writs in March–April 1992; Court of Appeals issued TRO June 25, 1992 and rendered decision July 15, 1992; the Supreme Court rendered the challenged decision in 1997. The present petition seeks review of the Court of Appeals decision which partially set aside the RTC orders directing reinstatement and payment of salaries and benefits.

Applicable Law and Constitutional Basis

Because the controlling decision occurred after 1990, the 1987 Constitution provides the constitutional framework applicable to the case. Statutory and regulatory instruments directly invoked in the proceedings include R.A. No. 3019 (Anti-Graft and Corrupt Practices Act), R.A. No. 778 (granting college status to the Philippine School of Commerce and converting it into the PCC), P.D. No. 1341 (converting PCC into PUP, defining objectives and organization), and P.D. No. 1437 (fixing term of office of heads of state universities and colleges at six years and authorizing termination of unrenewed incumbents). Procedural remedies raised include motions for execution of criminal-court judgment, writs of execution, petitions for certiorari and prohibition, and contempt proceedings.

Factual Background — Administrative and Criminal Accusations and Suspension

While serving as PCC President, petitioner faced administrative charges for alleged misuse of government vehicles, misappropriation of construction materials, oppression, harassment, grave misconduct, nepotism, and dishonesty. Criminal informations under Section 3(e) of R.A. No. 3019 were filed on June 14, 1976 alleging appropriation of a bahay kubo and construction materials and improper use of a college driver. Pursuant to R.A. No. 3019, petitioner was preventively suspended on October 22, 1976; Dr. Pablo T. Mateo, Jr. was designated officer-in-charge on November 10, 1976 and later served as acting head.

Conversion of PCC to PUP and Subsequent Appointments

By P.D. No. 1341 (April 1, 1978) the Philippine College of Commerce was “converted” into the Polytechnic University of the Philippines, with expanded objectives, curricular offerings and a reorganized governing structure. Dr. Mateo continued to head the institution, being appointed Acting President April 3, 1979 and appointed President on March 28, 1980 for a six-year term. P.D. No. 1437 (June 10, 1978) later established a uniform six-year term for heads of state universities and colleges, renewable once, and authorized the President of the Philippines to terminate incumbents who were not reappointed; it also addressed retirement/separation benefits for incumbents whose terms were terminated.

Criminal Acquittal, Orders of Reinstatement, and Execution Proceedings

On July 11, 1980, the Circuit Criminal Court of Manila acquitted petitioner of the graft charges and expressly ordered his reinstatement to the position of President of the Philippine College of Commerce (now PUP), including entitlement to salaries and other benefits that were unpaid during suspension, subject to intervening administrative proceedings. Administrative charges were later dismissed for failure to prosecute and the Tanodbayan matters were dismissed as moot in 1991. Petitioner moved for execution of the criminal-court reinstatement order in February 1992; the trial court granted execution and issued writs in March–April 1992. Efforts to effect reinstatement produced conflicts with subsequent executive appointments and administrative arrangements at PUP, prompting the People to seek relief from the Court of Appeals.

Court of Appeals Ruling

The Court of Appeals (Seventh Division) partially granted the petition for certiorari and prohibition filed by the People. It set aside the RTC orders and writs insofar as they directed reinstatement of petitioner as President of PUP and payment of salaries and benefits that accrued after the “abolition of the PCC and its transfer to the PUP.” The CA limited monetary recovery to sums accruing from suspension until the conversion/transfer, and remanded to the trial court to determine the correct amounts due up to the conversion.

Issues Presented to the Supreme Court

Two principal legal issues arise: (1) whether P.D. No. 1341 effected an abolition of the PCC and creation of a distinct new entity (PUP) such that petitioner’s original incumbency terminated automatically on conversion; and (2) whether petitioner is entitled to reinstatement as PUP President and to recover salaries and benefits accruing after the conversion and, if not, what monetary relief he may recover.

Supreme Court Analysis — Conversion Versus Abolition

The Supreme Court analyzed the language and legal effect of P.D. No. 1341 and concluded that the decree effected a conversion — a change in academic status and expansion of curricular offerings, structure and organization — rather than an express statutory abolition of the PCC and creation of an entirely new corporate entity. The Court observed that statutory instruments which intend to abolish existing agencies or create new ones do so expressly and cited contrasting examples (executive orders and statutes that explicitly abolish predecessor agencies). Differences in governance mechanisms, composition of governing boards, expanded functions and asset transfers under P.D. No. 1341 do not, standing alone, establish legislative intent to abolish and create a wholly new institution; they reflect the institution’s change in academic status and scope.

Supreme Court Analysis — Effect of P.D. No. 1437 and Subsequent Appointments

Despite concluding that P.D. No. 1341 did not abolish the PCC in the strict sense, the Supreme Court held that reinstatement to the presidency of PUP could not be ordered because of P.D. No. 1437. That decree fixed a six-year term (renewable once) for heads of state universities and colleges and authorized the President to terminate incumbents whose terms were not reappointed. Because Dr. Mateo had been validly appointed President of PUP on March 28, 1980 for a six-year term, petitioner’s original term was effecti

Case Syllabus (G.R. No. 106296)

Case Caption, Citation and Disposition

Reported at 327 Phil. 752; 93 OG No. 32, 3368 (June 2, 1997); G.R. No. 106296, July 05, 1996, Second Division.
Decision penned by Justice Mendoza, J., with Regalado (Chairman), Romero, and Torres, Jr., JJ., concurring; Puno, J., took no part.
The Supreme Court modified the Court of Appeals decision by setting aside orders of the Regional Trial Court directing reinstatement of petitioner Isabelo T. Crisostomo as President of the Polytechnic University of the Philippines (PUP) and payment of salaries and benefits to the extent such payments would include salaries accruing after March 28, 1980.
The matter was remanded to the trial court for further proceedings to determine amounts due and payable to petitioner by the university up to March 28, 1980.
Notation: the original case title in the lower court included nominal parties whose names were later omitted.

Parties

Petitioner: Isabelo T. Crisostomo.
Respondents: The Court of Appeals and the People of the Philippines.
Nominal parties originally in the lower case included Hon. Teresita Dy-Liaco Flores (Presiding Judge, RTC, Branch 46, Manila) and Elmer R. Melgas (Sheriff IV of Manila); their names were omitted in the current caption as they were merely nominal parties in the Court of Appeals.

Procedural History — Criminal, Administrative and Civil Actions

Administrative complaints alleging illegal use of government vehicles, misappropriation of construction materials, oppression and harassment, grave misconduct, nepotism and dishonesty were filed against petitioner with the Office of the President and later referred to the Office of the Solicitor General for investigation.
Charges under R.A. No. 3019 (Anti-Graft and Corrupt Practices Act), R.A. No. 992, and R.A. No. 733 were filed with the Office of the Tanodbayan (now the Ombudsman).
On June 14, 1976, three informations for violation of Sec. 3(e) of R.A. No. 3019 were filed alleging appropriation of a bahay kubo intended for the College and construction materials worth approximately P250,000, and use of a college driver as personal driver.
On October 22, 1976, petitioner was preventively suspended from office pursuant to R.A. No. 3019, Section 13, as amended.
The administrative cases were dismissed for failure of complainants to prosecute them; the Tanodbayan cases were dismissed on August 8, 1991 as moot and academic.
On July 11, 1980, the Circuit Criminal Court of Manila acquitted petitioner in Criminal Cases Nos. VI-2329-2331 and ordered his reinstatement pursuant to Sec. 13, R.A. No. 3019, as amended; the court stated he was entitled to receive salaries and other benefits he failed to receive during suspension, "unless in the meantime administrative proceedings have been filed against him."
Petitioner filed a motion for execution of the judgment on February 12, 1992 in the Regional Trial Court; the motion was granted and a partial writ of execution issued March 6, 1992; the RTC reiterated its reinstatement order on April 24, 1992 and issued a writ of execution.
The People of the Philippines filed a petition for certiorari and prohibition before the Court of Appeals on May 18, 1992, assailing the two orders and the writs of execution, and sought a temporary restraining order.
On June 25, 1992, the Court of Appeals issued a temporary restraining order enjoining petitioner from acting as president of PUP pursuant to the trial court's reinstatement orders and enjoining further proceedings in the criminal cases.
On July 15, 1992, the Court of Appeals (Seventh Division) rendered a decision partially granting the petition: it set aside the RTC orders and writs directing reinstatement and payment of salaries and benefits insofar as such payment included those accruing after abolition of the PCC and its transfer to the PUP, and remanded to the trial court to determine correct amounts due.
This petition to the Supreme Court followed, seeking review of the Court of Appeals decision.

Facts — Office, Appointment and Suspension of Petitioner

Petitioner was appointed President of the Philippine College of Commerce (PCC) by the President of the Philippines on July 17, 1974.
On October 22, 1976, petitioner was preventively suspended pursuant to Section 13 of R.A. No. 3019, as amended.
Dr. Pablo T. Mateo, Jr. was designated officer-in-charge on November 10, 1976, and then as Acting President on May 13, 1977.
Matters giving rise to suspension included allegations of appropriation of a bahay kubo intended for the College, appropriation of construction materials (approx. P250,000), and use of a college driver for personal/family use.

Facts — Conversion of PCC into PUP and Subsequent Appointments

P.D. No. 1341, issued April 1, 1978 by President Ferdinand E. Marcos, converted the Philippine College of Commerce into the Polytechnic University of the Philippines (PUP), defined its objectives, organizational structure and functions, and expanded curricular offerings.
Mateo continued as head of the new university; the record contains that on April 3, 1979 he was appointed Acting President and on March 28, 1980 he was appointed President for a six-year term.
P.D. No. 1341 provided that PUP's objectives included programs beyond commerce and business administration, encompassing other polytechnic areas and fields such as agriculture, arts and trades and fisheries (Sec. 2).
P.D. No. 1341 transferred to the new university "all parcels of land, buildings, equipment and facilities owned by the Philippine College of Commerce and such other national schools as may be integrated by virtue of this decree, including their obligations and appropriations thereof" (Sec. 12).

Trial Court Judgment of Acquittal and Order of Reinstatement

On July 11, 1980, the Circuit Criminal Court of Manila acquitted petitioner in three criminal cases (CCC-VI-2329-2331) and ordered reinstatement "to the position of President of the Philippine College of Commerce, now known as the Polytechnic University of the Philippines" (explicitly referencing conversion).
The trial court ordered that petitioner was entitled to receive salaries and other benefits which he failed to receive during suspension unless administrative proceedings had been filed in the meantime.
The trial court cancelled and released the bail bonds filed for petitioner's provisional liberty.

Execution of Reinstatement Orders, Sheriff's Return and Contempt Proceedings

Following the RTC writs, the sheriff filed a return dated April 28, 1992 stating he had executed the writ by installing petitioner as President of PUP, althoug