G.R. No. P-03-1731. November 30, 2006. PNB MANAGEMENT AND DEVELOPMENT CORPORATION, represented by ATTY. ARNOLD NAVAL, Complainant, vs. CARMELO CACHERO, Sheriff IV, Regional Trial Court, Manila, Branch 11 and LUISITO GALLARDO, Sheriff IV, Regional Trial Court, Manila, Branch 38, Respondents.
FACTS

PNB Management and Development Corporation (PNB Madecor) filed an administrative complaint for grave misconduct against Sheriffs Carmelo Cachero and Luisito Gallardo concerning the execution sale of its three properties to satisfy a judgment against Pantranco North Express, Inc. (PNEI) in favor of Gerardo Uy. The sheriffs levied on and sold the properties for ₱15.1 million, despite a prior levy of ₱365,000 from PNEI’s assets and a judgment award of only ₱8,397,440.95. PNB Madecor alleged multiple irregularities: the notice of sale overstated the amount due; the properties’ zonal value (₱146 million) was grossly disproportionate; Cachero presided without a proper appointment; the notice was not fully read aloud; and the winning bidder, Richard Tan, paid only with a bank certification, not cash. Gallardo subsequently failed to submit a sheriff’s return or account for the proceeds promptly.
In their defense, Cachero claimed he merely assisted Gallardo, while Gallardo argued the sale price was justified by accrued interest and costs, bringing Uy’s total claim to over ₱15 million. He asserted that a bank certification was a valid mode of payment under the Rules and that he had converted the bid to cash and distributed the proceeds. PNB Madecor filed a supplemental complaint challenging a Certificate of Redemption later issued to Philippine National Bank (PNB), arguing PNB had no legal right to redeem the properties.

ISSUE

Whether respondents Sheriffs Carmelo Cachero and Luisito Gallardo are administratively liable for misconduct in the conduct of the execution sale.

RULING

Yes, respondents are guilty of grave misconduct and are dismissed from service. The Court found their actions constituted a clear disregard of established rules and ethical standards governing sheriffs. The legal logic centers on the sheriffs’ mandatory, ministerial duty to execute judgments with strict adherence to procedural rules to protect the rights of all parties. Their conduct exhibited partiality and abuse of authority. Specifically, Gallardo’s failure to credit the prior levy, his use of an exaggerated claim to justify selling high-value properties, and his acceptance of a non-cash payment without the judgment obligee’s consent violated Sections 9 and 15 of Rule 39. Cachero’s unauthorized participation as a special sheriff contravened Administrative Circular No. 12. Their collective actions in conducting a procedurally flawed auction and Gallardo’s delay in submitting the required return demonstrated a pattern of neglect and arbitrariness. The issuance of the Certificate of Redemption to PNB, an entity with a dubious claim as a successor-in-interest, further compounded the irregularity. Such conduct erodes public confidence in the administration of justice. Consequently, the Court imposed the supreme penalty of dismissal with forfeiture of all retirement benefits and perpetual disqualification from reemployment in government.