Title
Paluca vs. Commission on Audit
Case
G.R. No. 218240
Decision Date
Jun 28, 2016
Engr. Paluca challenged COA's disallowance of DCWD payments, but SC dismissed the petition due to untimely appeal, affirming that counsel's negligence binds the client.

Case Summary (G.R. No. 218240)

Applicable Law

The case is governed by the 1987 Philippine Constitution and relevant statutory provisions, particularly the Government Auditing Code under Presidential Decree No. 1445. This law stipulates the procedures for appealing the decisions of auditors, including the six-month reglementary period for filing appeals against NDs issued by auditors of government agencies.

Procedural History

After an audit, the COA issued several NDs to the DCWD, which included disallowances on various amounts due to payments lacking legal justifications as outlined in specific laws and circulars. Paluca was held liable in multiple instances as a signatory to the vouchers. The NDs were received by the DCWD at various dates, and subsequent to their issuance, an attorney was engaged to address the NDs. However, it was noted that only one appeal was formally pursued, leading to a lapse in the deadline for the remaining NDs.

Findings of the COA and Regional Legal Adjudication Office

The COA's Decision No. 2015-005 reiterated the finding that many of the disallowed transactions indeed lacked legal basis, affirming earlier decisions of the Regional Legal and Adjudication Office (RLAO) which had determined that a timely appeal was not made. The COA subsequently dismissed Paluca’s petition, citing that it was filed outside the statutory period of six months as specified by the governing laws.

Legal Arguments Presented

Petitioner Paluca argued that the negligence of his counsel should exempt him from the consequences of the late filing. He referenced legal precedents that support the notion that a client should not be bound by their counsel's mistakes, particularly if such negligence causes serious injustice. However, the Court maintained that the general rule binding a client to their counselor's mistakes applied here since Paluca did not actively follow up on the status of the appeals nor demonstrated that he regularly assessed the progress of his case.

Court's Rationale and Final Decision

The Court emphasized the principle that a client must remain vigilant and engaged with their counsel, making inquiries about the status of legal proceedings. Absent evidence of due diligence, the mere act of endorsing the case to an attorney does not relieve the client o

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