A.M. No. P-10-2825, December 7, 2010
Development Bank of the Philippines, represented by Atty. Benilda A. Tejada, Petitioner, vs. Clerk of Court VI Luningning Y. Centron and Sheriff IV Alejandro L. Tobillo, Regional Trial Court, Branch 39, Calapan City, Oriental Mindoro, Respondents.

FACTS

The Development Bank of the Philippines (DBP) filed an administrative complaint against Sheriff IV Alejandro L. Tobillo and Clerk of Court VI Luningning Y. Centron for Grave Misconduct, Dereliction of Duty, and Conduct Prejudicial to the Best Interest of the Government. The complaint stemmed from Tobillo’s repeated refusal to proceed with an extrajudicial foreclosure auction sale against RMC Telecommunications Consultants, Inc. Tobillo insisted on applying the obsolete “two-bidder rule” and erroneously claimed that DBP’s petition covering both real estate and chattel mortgages required separate filings. Despite DBP’s counsel providing written reminders that the Supreme Court had already dispensed with the two-bidder rule via a 2001 Resolution, Tobillo postponed the initial sale date of December 23, 2008. He then failed to appear at the rescheduled sale on January 23, 2009, claiming he had to serve summons in another case.
Atty. Centron, as Clerk of Court, claimed she took corrective action upon learning of the conflict. She issued a directive to Tobillo on December 22, 2008, instructing him to proceed with the sale and reminding him that the two-bidder rule was no longer observed. She also communicated this to DBP’s counsel in a subsequent letter.

ISSUE

Whether respondents Sheriff IV Alejandro L. Tobillo and Clerk of Court VI Luningning Y. Centron are administratively liable for their actions concerning the postponed extrajudicial foreclosure auction sale.

RULING

The Court found Sheriff Tobillo GUILTY of Gross Neglect of Duty and DISMISSED him from service with forfeiture of all benefits except accrued leave credits. The Court held that it was Tobillo’s fundamental duty to keep abreast of the rules governing his functions. His stubborn reliance on an outdated rule (the two-bidder rule abolished in 2001) and his imposition of an incorrect requirement for separate petitions directly caused unwarranted postponements, prejudicing DBP. His absence on the final sale date, based on a prior notice of cancellation he issued unilaterally, compounded his neglect. His actions demonstrated a pattern of incompetence, corroborated by a prior administrative case.
Regarding Atty. Centron, the Court ABSOLVED her of administrative liability but issued an ADMONITION with a warning. The Court recognized that she took steps to rein in Tobillo by issuing directives and correctly advising him of the current rules. However, her supervisory role required more proactive and effective measures to ensure her subordinate’s compliance. Considering it was her first offense and there was no evidence she condoned Tobillo’s actions, the Court deemed dismissal or suspension too severe, opting instead for a stern admonition to faithfully oversee her subordinates.