Title
Hon. Expedito B. Pilar vs Sangguniang Bayan of Dasol, Pangasi
Case
Decision Date
Mar 12, 1948
Mayor's veto of VP's salary unjust; bad faith warrants damages despite payment.

Factual Background

Petitioner was elected vice mayor of Dasol, Pangasinan, in the 1980 local elections, together with Hon. Lodovico Espinosa as municipal mayor and the initial set of Sangguniang Bayan members. All assumed office on March 1, 1980. Later, additional members joined the Sangguniang Bayan.

On March 4, 1980, the Sangguniang Bayan adopted Resolution No. 1, increasing the salaries of the mayor and municipal treasurer to P18,636.00 and P16,044.00 per annum, respectively. The resolution did not provide for an increase in the vice mayor’s salary, even though the vice mayor position was entitled to an annual salary of P16,044.00, as reflected in Circular No. 9-A.

Petitioner protested and sought compliance through letters to the proper authorities. Provincial and national officials endorsed compliance with Circular No. 9-A by providing the revised rate. The record also showed that the Executive Secretary of the Commission advised the mayor that the Municipality should pay the vice mayor the salary due him equivalent to that of the municipal treasurer per Circular No. 15.

On December 12, 1980, the Sangguniang Bayan enacted a resolution appropriating P500.00 per month as petitioner’s salary. The amount was increased to P774.00 per month in December 1981.

On October 26, 1982, the Sangguniang Bayan enacted another resolution appropriating P15,144.00 as payment of petitioner’s unpaid salaries from January 1, 1981 to December 31, 1982. The mayor vetoed this resolution, and petitioner then filed the present petition for mandamus on February 16, 1983.

Respondents’ Comment and Petitioner’s Replies

Respondents argued first that the petition was premature because petitioner allegedly failed to exhaust administrative remedies and should have lodged his complaint with the Ministry of Local Government and Community Development. Second, respondents asserted that the petition raised questions of fact—particularly whether municipal funds were available—which, they claimed, removed the matter from the Supreme Court’s cognizance. Third, respondents contended that the controversy had become moot and academic because on April 20, 1983, the Sangguniang Bayan enacted an appropriation ordinance appropriating P29,985.00 for salary differentials under Supplemental Budget No. 3 for Calendar Year 1983.

Petitioner replied that exhaustion of administrative remedies did not bar the petition because mandamus provided the adequate and speedy remedy for the legal issue—whether the appropriation of the vice mayor’s salary was a ministerial act or a discretionary act. He also maintained that the only remaining factual issue concerned damages, not the salary entitlement itself, and that the existence of municipal funds was no longer in dispute due to a certification by the municipal treasurer. Petitioner further argued that the case was not moot because there was no assurance that enactment of an appropriation resolution would translate into actual payment.

Proceedings in the Supreme Court

On June 1, 1983, the Court gave due course to the petition and required memoranda. At the time petitioner submitted his memorandum, he admitted that he had already been fully paid of his salaries as provided by Batas Pambansa Blg. 51 and implemented by Circular No. 9-A.

The Court thus treated the principal claim for salary as moot and academic. Nonetheless, the Court ruled that petitioner was still entitled to damages and attorney’s fees, because the record showed that petitioner had been compelled to litigate to obtain a salary that was unduly denied him for three (3) years and that the mayor acted with gross and evident bad faith in refusing to satisfy a plainly valid, just, and demandable claim under Article 2208 (2) and (5) of the New Civil Code.

The Parties’ Key Issues

The dispute required the Court to address whether mandamus would lie to compel performance of the duty to provide the legally mandated salary rate for a vice mayor, and whether, despite subsequent payment and the enactment of later appropriations, petitioner could still recover damages and attorney’s fees due to wrongful refusal or neglect in the payment of salary.

Respondents advanced that the matter turned on facts such as municipal fund availability and asserted prematurity under administrative exhaustion. Petitioner insisted that the issue was legal in nature and that the existence of funds had already been established, leaving only the consequences of delayed or denied payment—damages.

Legal Basis and Reasoning of the Court

The Court held that petitioner was entitled to damages even though his salary claim had been satisfied by the time of submission. It emphasized that petitioner had forced litigation to claim a salary that had been legally mandated. It further found that the mayor’s refusal and delay were not justified and were attended by gross and evident bad faith, warranting damages under Article 2208.

As to responsibility, the Court ruled that respondent Mayor Lodovico Espinosa alone should be held liable and responsible for petitioner’s “miserable plight.” It focused on the mayor’s act of vetoing, without just cause, the Sangguniang Bayan resolution appropriating P15,144.00 for petitioner’s unpaid salaries covering January 1, 1981 to December 31, 1982. The Court rejected respondents’ framing that vetoing necessarily involved permissible discretion. It held that the mayor exceeded authority in an arbitrary manner because sufficient municipal funds existed to pay the vice mayor’s salary.

The Court also treated the mayor’s refusal, neglect, or omission to comply with directives from the Provincial Budget Officer and the Director of the Bureau of Local Government as reckless and oppressive. On that basis, the Court imposed exemplary or corrective damages “by way of example or correction for the public good,” and ruled that the mayor was personally liable for such damages.

The Court likewise awarded actual damages and litigation costs, reduced from P13,643.50 to P5,000.00. For moral damages, the Court found entitlement to compensation for the mental anguish, serious anxiety, wounded feelings, moral shock, social humiliation, and similar injuries petitioner suffered, and fixed the moral damages at P5,000.00. Finally, it granted attorney’s fees in the amount of P5,000.00.

Disposition and Allocation of Liability

The Court declared the petition moot and academic in view of petitioner’s admission that he had been fully paid of his salary. Nevertheless, it ordered the mayor to pay petitioner the fo

...continue reading

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.