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ALBERTO V. REYES, ET AL. v. RURAL BANK OF SAN MIGUEL (BULACAN), INC.ET. AL,. G.R. No.

154499, February 27, 2004

COMMAND RESPONSIBILITY;HEAD OF A DEPARTMENT OR A SUPERIOR OFFICER SHALL NOT BE CIVILLY LIABLE FOR THE WRONGFUL ACTS.OMISSION OF DUTY,
NEGLIGENCE FOR MISFEASANCE OF HIS SUBORDINATE.UNLESS HE HAS ACTUALLY AUTHORIZE BY WRITTEN ORDER OF THE SPECIFIC ACT OR MISCONDUCT
COMPLAINED OF

ALBERTO V. REYES, ET AL. v. RURAL BANK OF SAN MIGUEL (BULACAN), INC.ET. AL,.
G.R. No. 154499, February 27, 2004

Facts:

In a letter dated May 19,1999, addressed to then BSP Governor Singson, RBSMI charge the petitioner with violation of RA No. 6713 ( code of Conduct and
Ethical Standards for Public Officials and Employees). The Monetary Board (MB) of the BSP created an Ad Hoc Committee to investigate the matter.
The ensuing investigation disclosed that sometime in September 1996, RBSMI, which had a history of major violations/exceptions dating back to 1995,
underwent periodic examination by the BSP. The examination team headed by Principio noted serious 20 exceptions/violations and deficiencies of RBSMI.
Through Resolution No. 96, the MB required RBSMI to submit within 15 days a written explanation with respect to the findings of the examiner. It also directed
the Department of Rural Banks DRB), to verify, monitor and report to the Deputy Governor, Supervision and Examination Sector (SES) on the findings noted,
until the same shall have been corrected.
Meanwhile on June 13,1997, the MB approved Resolution No. 724 ordering RBSMI to correct the major exceptions noted within 30 days from receipt of the
advice, and to remit to the BSP the amount of P2,538,483.00 as fines and penalties for incurring deficiencies in reserves against deposit liabilities.
More than a year after, however, the RBSMI asked for a reconsideration of MB Resolution No. 724 insofar as the imposition of fine amounting to P
P2,538,483.00.On January 21, 1999, the MB adopted Resolution No. 71, authorizing the conditional reversal of sixty of the dispute on the findings on reserve
deficiency. Subsequently, on April 7, 1999, the MB approved the interim reversal of the entire amount of the penalty pending the outcome of the study on the
legal and factual basis for the imposition of the penalty.
The above incidents, particularly the alleged brokering by Reyes and the petitioners unsupported recommendation to impose a penalty of P2,538,483.00
for legal reserve deficiency, prompted the respondent to file the letter-complaint charging the petitioners with unprofessionalism.
In the Decision if March 14,2003, this Court found Deputy Governor Reyes and Director Domo-ong liable for violation of the standards of professionalism
prescribed by RA 6713in that they used the distressed financial condition of respondent RBSMI as the subject of a case study in one of the BSP seminars and did
the brokering of the sale of RBSMI. The Court modified the decision of the CA by reducing the penalty imposed from the a fine equivalent to six
monthssalary to a fine of 2 months salary for Reyes and one month salary for Domo-ong.
The court exonerated petitioner Proncipio of the Administrative charges. The exoneration is subject to RBSMIs Motion for Partial Reconsideration.

Issue:

Whether or not the Superior officer shall not be civilly liable for the wrongful acts, omissions of duty, negligence or misfeasance of his subordinate officer.

Held:

The immunity of public officers from liability for nonfeasance, negligence or omissions of duty of their official subordinate and even for the latters
misfeasance or positive wrong rests, according to MECHEM, upon obvious considerations of public policy, the necessities of the public service and the
perplexities and embarrassments of a contrary doctrine. These official subordinates are themselves public officers though of an inferior grade, and therefore
directly liable in the cases in which any public officer is liable, for their own misdeeds or defaults.
Under the Admin Code of 1987, which provides that head of a department or a superior officer shall not be civilly liable for the wrongful acts, omissions of
duty, negligence, misfeasance of his subordinates, unless he has actually authorized by written order the specific act or misconduct complained of.