Case Summary (A.M. No. P-06-2197)
Facts of the Case
The complaint stemmed from an extrajudicial foreclosure of a real estate mortgage on the property of Venus Rosauro, which was sold at public auction on January 14, 2000. The highest bidder, Fidel See, paid a bid price of P272,000.00, which Arimado received and subsequently deposited in the Office of the Clerk of Court. However, after failing to remit the bid amount to PAG-IBIG, complications arose when See sought possession of the property through a complaint for specific performance against both PAG-IBIG and Arimado.
Compromise Agreement and Breach
During the litigation, a Compromise Agreement was forged on October 15, 2001, wherein Arimado acknowledged personal use of the bid price and committed to pay PAG-IBIG P272,000.00 by October 31, 2001, to release the title to the property. In addition, he was to reimburse See with P28,000.00 for litigation expenses. The RTC approved this agreement on October 31, 2001. However, Arimado failed to fulfill his obligations under this agreement, prompting Britanico to pursue the administrative complaint.
Respondent’s Defense
In his September 9, 2005 Comment on the Complaint, Arimado argued that he had genuinely attempted to deliver the funds to PAG-IBIG but was met with resistance, leading him to deposit the funds with the Clerk of Court. He claimed that personal circumstances, including his wife's hospital expenses, forced him to use the entrusted funds. He further contended that he sought an installment payment plan, which PAG-IBIG initially accepted, but rejected when he attempted to make a payment.
Evaluation by the Office of the Court Administrator
The Office of the Court Administrator (OCA) reviewed the case and noted Arimado's misappropriation of funds entrusted to him due to his position. The OCA highlighted that dishonesty erodes public trust in judicial institutions and recommended his dismissal from service with forfeiture of all benefits (except accrued leaves) and disqualification for future government employment.
Conclu
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Case Background
- Marietta B. Britanico, the Regional Manager of Home Development Mutual Fund (PAG-IBIG) in Legazpi City, filed an administrative complaint against Manuel L. Arimado, Sheriff IV of the Regional Trial Court, Branch 4, Legazpi City.
- The complaint was dated July 29, 2005, and charged Arimado with misfeasance and malicious nonfeasance in office.
- The case arose from an extrajudicial foreclosure handled by PAG-IBIG concerning the property owned by Venus Rosauro.
Foreclosure and Auction Details
- The property was sold at public auction on January 14, 2000, to Fidel See for a bid price of P272,000.00.
- Respondent Arimado received this amount and issued a receipt, depositing the funds with the Office of the Clerk of Court.
- Arimado later withdrew the amount under the pretext of delivering it to PAG-IBIG but failed to remit the payment.
Legal Proceedings Following Foreclosure
- After the redemption period lapsed without action from the mortgagor, Fidel See filed a complaint for specific performance with damages against both PAG-IBIG and Arimado.
- On October 15, 2001, a Compromise Agreement was forged, wherein Arimado acknowledged his personal use of the bid price and committed to pay PAG-IBIG P272,000.00 by October 31, 2001.
- The agreement also stipulated an additional payme