AM 92 1 030; (May, 1993) (Digest)
G.R. No. A.M. No. 92-1-030-RTC. May 21, 1993
LOLITA HERNANDEZ LOY, complainant, vs. DEPUTY SHERIFF WILLIAM BADEN, respondent.
FACTS
The Executive Judge of the Regional Trial Court (RTC) of Baguio City referred a letter-complaint from Lolita Hernandez Loy accusing Deputy Sheriff William Baden of serious irregularities in an auction sale of her property. In Civil Case No. 9611-R, a judgment was rendered against Loy and her spouse in favor of Viola Macario for P29,000.00. To satisfy the judgment, Loy’s property covered by TCT No. T-23372 was levied upon. At the execution sale conducted by respondent Baden on November 21, 1988, Clemente Gomoyod submitted the highest bid of P242,000.00. Gomoyod’s written bid specified that the amount comprised P29,000.00 for the judgment debt, P203,000.00 to pay the interest of a third party named Carmen Daclan in the property, and P10,000.00 for auction expenses. Gomoyod only paid Baden P39,000.00 in cash, with the balance of P203,000.00 to be delivered directly to Daclan, whom Gomoyod represented as a creditor of Loy. Daclan submitted a letter claiming a pecuniary interest of P203,000.00 in the property. Based on this, Baden executed a certificate of sale in favor of Gomoyod on November 22, 1988. Out of the P39,000.00 received, Baden paid P29,000.00 to the judgment creditor Macario and retained P10,000.00 for expenses. Almost three years later, Loy complained. In his comment, Baden admitted the facts but pleaded that it was his first auction sale, that he had followed the advice of a veteran deputy sheriff, and that he later refused to issue a writ of possession or final certificate of sale upon realizing the irregularities. He also stated that no money beyond legal expenses was received by him personally.
ISSUE
Whether Deputy Sheriff William Baden is administratively liable for irregularities in the conduct of the execution sale.
RULING
Yes, Deputy Sheriff William Baden is guilty of serious neglect of duty. The Court found that Baden deviated from the procedure prescribed by the Rules of Court for execution sales. The rules require sheriffs to demand full payment of the bid price from the highest bidder and do not grant sheriffs authority to ascertain the validity of third-party claims or to unilaterally dispose of proceeds according to their discretion. Baden’s actions in accepting a partial payment and allowing the balance to be paid directly to a purported creditor, based merely on letters from the bidder and the third party, constituted a reckless exercise of his functions. His plea of inexperience, having conducted his first auction sale, and his subsequent refusal to issue further sale documents were considered only as mitigatory circumstances, not absolving him from liability. The Court suspended Deputy Sheriff William Baden for one (1) month. Clerk of Court Delilah Muñoz and Deputy Sheriff Alfonso Melgar were found to have no administrative liability based on the record.