G.R. No. A.M. No. P-97-1240 June 19, 1997
ATTY. WILFREDO C. BANOGON, complainant, vs. FELIPE T. ARIAS, Sheriff III, Office of the Clerk of Court, Municipal Trial Court in Cities, Davao City, respondent.

FACTS

Atty. Wilfredo C. Banogon, Vice President for Legal and Claims of Great Pacific Life Insurance Corporation (Grepalife), filed an affidavit-complaint charging Sheriff Felipe T. Arias with Gross Misconduct and/or Conduct Prejudicial to the Service. The complaint arose from Sheriff Arias’s actions regarding levied properties of defendant Al Fresco Development Corporation in Civil Case No. 23037 before the Metropolitan Trial Court (MTC) of Makati. Grepalife, as plaintiff, levied on execution three parcels of land owned by Al Fresco in Davao City, with annotations of the writ of execution and notice of levy made on the corresponding Transfer Certificates of Title (TCTs) on April 3, 1987. On May 18, 1992, at Sheriff Arias’s instance, these annotations were canceled, and new titles were issued in favor of Benjamin Remoquillo. Sheriff Arias then sent Grepalife a Security Bank check for P94,461.04 from Remoquillo for the “redemption of the lots.” Grepalife later discovered the cancellation of the levy annotations and asserted that the judgment debt remained deficient by P382,070.63. Sheriff Arias, in his comment, admitted levying the properties and facilitating the cancellation based on Remoquillo’s payment, which he computed as fully satisfying the judgment debt, and he subsequently filed a Sheriff’s Return to the MTC stating full payment. The Office of the Court Administrator (OCA) found that the total obligation for the three lots was P123,720.00, not P94,461.04, and concluded that Sheriff Arias acted negligently and dishonestly by misrepresenting to the Register of Deeds that the judgment was fully satisfied, thereby allowing an unauthorized person to remove levied properties.

ISSUE

Whether Sheriff Felipe T. Arias is administratively liable for Gross Misconduct and/or Conduct Prejudicial to the Service for his actions in facilitating the cancellation of the levy annotations and misrepresenting the full satisfaction of the judgment debt.

RULING

Yes, Sheriff Felipe T. Arias is administratively liable for conduct prejudicial to the best interest of the service. The Court sustained the OCA’s findings that Sheriff Arias was negligent and dishonest in performing his duties. He erroneously represented to the Register of Deeds that the judgment debt was fully satisfied by a payment of P94,461.04, when the actual obligation was P123,720.00, leading to the unauthorized release of levied properties. However, the Court modified the recommended penalty of dismissal, noting the absence of proven malice or monetary motivation, as seen in more egregious cases like Tantingco vs. Aguilar and Cunanan vs. Tuazon. Instead, the Court imposed a fine of P10,000.00 and issued a stern warning that repetition of such conduct would be dealt with severely. The Court emphasized that all court personnel must uphold the highest standards of propriety and integrity.