G.R. No. L-23966; May 22, 1969
BENJAMIN A. GRAY, plaintiff-appellant, vs. JACOBO S. DE VERA, ENRIQUE J.L. RUIZ, MANUEL T. LEELIN, SERGIO ORTIZ LUIZ, SALUD V. PARREÑO, PEDRO FERNANDEZ and TEOFILO DEL CASTILLO, defendants-appellees.

FACTS

Benjamin A. Gray was appointed Secretary to the Board of Directors of the People’s Homesite and Housing Corporation (PHHC). On January 12, 1959, he sent a telegram to President Carlos P. Garcia suggesting a complete revamp of the PHHC Board and accusing its members of various acts of mismanagement and misconduct, including grabbing dwelling awards. The following day, the PHHC Board of Directors passed Resolution No. 331 terminating Gray’s services “on account of loss of confidence” due to treachery or disloyalty. Gray filed an action for quo warranto, alleging illegal removal without cause and without a hearing. The defendants, members of the Board, justified the removal on the ground that the position of Board Secretary was “primarily confidential in nature” as declared by Executive Order No. 399 and was thus excluded from Civil Service protection, allowing removal at any time for loss of confidence. The trial court upheld the validity of the removal. Gray appealed.

ISSUE

1. Whether the Board of Directors that passed the removal resolution was illegally constituted due to the designation of an Acting Chairman.
2. Whether Gray’s removal from his permanent appointment to a primarily confidential position was valid, considering it was done without a formal charge and a hearing.
3. Whether Gray is entitled to reinstatement, back salaries, and damages.

RULING

1. The Board was not illegally constituted. The designation of Director Enrique J.L. Ruiz as Acting Chairman when the position of Chairman was vacant was valid and necessary to prevent paralyzation of corporate activities. The prohibition in Section 10 of Executive Order No. 399 against holding other positions in the corporation does not preclude such a temporary designation.
2. Gray’s removal was illegal and void. A permanent appointee to a position declared primarily confidential is still protected by Section 4, Article XII of the Constitution , which states that no civil service officer or employee shall be removed except for cause as provided by law. The sending of the telegram to the President was an act of civic duty and a privileged communication, not treachery or disloyalty constituting lawful cause for removal. Even assuming a cause existed, his summary removal without a formal charge and an opportunity to be heard violated due process.
3. Gray is entitled to reinstatement and back salaries. He is ordered reinstated to the position of Secretary to the Board effective January 14, 1959, with payment of his total salaries from that date until reinstatement. However, his claim for moral damages is denied as the defendants were sued in their official capacities. An award of P2,000.00 as attorney’s fees is granted. The judgment of the lower court is reversed.