Title
Office of the Solicitor General vs. Court of Appeals
Case
G.R. No. 199027
Decision Date
Jun 9, 2014
Former Sangguniang Bayan members sought unpaid terminal leave benefits from Saguiran Municipality. SC ruled OSG not obligated to represent LGUs; LGU legal officers must handle such cases.

Case Summary (G.R. No. 199027)

Background of the Case

The Municipality of Saguiran was subject to a mandamus petition, filed by former municipal councilors seeking to compel payment of P726,000.00 in unpaid terminal leave benefits. The Municipal Officers, notably the Municipal Mayor and Municipal Treasurer, contested this petition, leading to an order dismissing it on jurisdictional grounds while suggesting the claims be allocated in the municipal budget. Subsequently, the Municipality appealed to the Court of Appeals, which required the OSG to file a memorandum on behalf of the Municipality.

OSG's Legal Arguments

The OSG contended that it lacked the legal authority to represent a local government unit (LGU) in this lawsuit, citing the Local Government Code of 1991, which mandates that a local government must be represented by its legal officer. The OSG also distinguished its role under the Administrative Code, arguing it primarily pertains to representing the Government of the Philippines and its instrumentalities, and should not extend to local governments.

Court of Appeals' Resolutions

The Court of Appeals denied the OSG's motion to be excused from representing the Municipality, asserting that local government units are considered agencies of the Republic and thus fall within the purview of the OSG’s representation. The CA reasoned that if the OSG viewed LGUs as not being part of the Government of the Philippines, it misinterpreted the relationship under existing jurisprudence.

Supreme Court's Ruling

The Supreme Court granted the petition filed by the OSG, determining that the Court of Appeals committed “grave abuse of discretion” by compelling OSG to represent the Municipality of Saguiran. The ruling emphasized that the powers conferred to the OSG do not extend to local government units under the specific provisions of the Local Government Code which dictate that only a designated legal officer can represent an LGU.

Context of Legal Representation

The Court underlined the necessity of harmonizing statutes pertaining to legal representation. The Local Government Code represents a special law concerning the representation of local governments, restricting who may act as counsel for such entities. The Court cla

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