G.R. No. L-13581; August 31, 1960
Epifanio S. Cese, petitioner-appellant, vs. Government Service and Insurance System, respondent-appellee.

FACTS

Epifanio S. Cese was a member of the police force of the Municipality of San Isidro, Nueva Ecija, from March 10, 1927, until his separation from government service on January 31, 1956. After his separation, he filed an application for retirement benefits under Commonwealth Act No. 186 , as amended, with the Government Service Insurance System (GSIS). The GSIS disapproved his application. On July 12, 1957, Cese filed a petition for “Certiorari and Mandamus” with the Court of First Instance of Manila, praying that the GSIS be required to pay him retirement benefits. The GSIS, as respondent, answered the petition, claiming Cese had no right to retirement benefits because his employer, the Municipality of San Isidro, had already withdrawn its membership from the System due to its inability to shoulder the premium obligations for its insured and retirable employees, and that Cese failed to exercise his right of option to retire while his employer was still a member. After the issues were joined, the GSIS filed a motion to require Cese to amend his complaint to include the Municipality of San Isidro as a respondent. The lower court granted the motion and issued an order on December 21, 1957, requiring Cese to implead the municipality. Cese’s motion for reconsideration was denied, prompting his direct appeal to the Supreme Court. It is undisputed that although membership in the GSIS was not compulsory for municipalities below first class, the Municipality of San Isidro had been a member from November 30, 1937, to December 12, 1952, and Cese, as its employee, had also become a member.

ISSUE

Whether the Municipality of San Isidro, Nueva Ecija, should be included as a party respondent to completely adjudicate petitioner Epifanio S. Cese’s claim for retirement benefits.

RULING

The Supreme Court affirmed the order of the lower court. The Court held that for a complete adjudication of the case, it was necessary to implead the Municipality of San Isidro as a party respondent. Section 5 of Commonwealth Act No. 186 , as amended, provides that in the retirement insurance of a government employee, the monthly contributions are to be borne by both the employer and the employee, with the employer responsible for deducting and withholding the employee’s premiums and remitting them, along with its corresponding share, to the GSIS. Therefore, to dispose of Cese’s claim, it was important to determine whether his former employer had paid all the premiums due to the System during its membership and, given its withdrawal, whether it must still be required to pay all premium obligations concomitant with the payment of benefits to Cese. The Court found no error in the lower court’s order, noting that amendments to pleadings are favored and should be liberally allowed to determine cases on their real facts, speed trials, prevent circuity of action, and avoid unnecessary expense, absent circumstances like inexcusable delay or surprise to the adverse party, which were not present in this case. The order appealed from was affirmed, without special pronouncement as to costs.