GSIS V Villaviza Case Digest

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GSIS v. Villaviza, G.R. No.

180291, July 27, 2010


Rule 8, Sec. 11 and Rule 9, Sec. 1
FACTS:
PGM Garcia, as President and General Manager of the GSIS, filed separate formal charges
against respondents and eventually found them guilty for Grave Misconduct and/or Conduct
Prejudicial to the Best Interest of the Service and meting out the penalty of one (1) year
suspension plus the accessory penalties appurtenant thereto. The charges contained that
respondent, wearing red shirt together with some employees, marched to or appeared
simultaneously at or just outside the office of the Investigation Unit in a mass
demonstration/rally of protest and support for Messrs. Mario Molina and Albert Velasco, the
latter having surreptitiously entered the GSIS premises.

On appeal, CSC found that the acts of respondents in going to the GSIS-IU office wearing red
shirts to witness a public hearing do not amount to a concerted activity or mass action proscribed
above. CSC added that their actuations can be deemed an exercise of their constitutional right to
freedom of expression. The CA found no cogent reason to deviate therefrom.

ISSUE:
WHETHER AN ADMINISTRATIVE TRIBUNAL MAY APPLY SUPPLETORILY THE
PROVISIONS OF THE RULES OF COURT ON THE EFFECT OF FAILURE TO DENY
THE ALLEGATIONS IN THE COMPLAINT AND FAILURE TO FILE ANSWER,
WHERE THE RESPONDENTS IN THE ADMINISTRATIVE PROCEEDINGS DID NOT
FILE ANY RESPONSIVE PLEADING TO THE FORMAL CHARGES AGAINST
THEM.

RULING:
Petitioners primarily question the probative value accorded to respondents' letters of explanation
in response to the memorandum of the GSIS-IU Manager.  The respondents never filed their
answers to the formal charges. The petitioners argue that there being no answers, the allegations
in the formal charges that they filed should have been deemed admitted pursuant to Section 11,
Rule 8 of the Rules of Court which provides:

SECTION 11. Allegations not specifically denied deemed admitted.-- Material averment in the
complaint, other than those as to the amount of liquidated damages, shall be deemed admitted
when not specifically denied.  Allegations of usury in a complaint to recover usurious interest are
deemed admitted if not denied specifically and under oath.

According to the petitioners, this rule is applicable to the case at bench pursuant to Rule 1,
Section 4 of the Rules of Court which reads:
SECTION 4.  In what cases not applicable. - These Rules shall not apply to election cases, land
registration, cadastral, naturalization and insolvency proceedings, and other cases not herein
provided for, except by analogy or in a suppletory character and whenever practicable and
convenient. (underscoring supplied)

The Court does not subscribe to the argument of the petitioners. Petitioners' own rules, Rule XI,
Section 4 of the GSIS' Amended Policy and Procedural Guidelines No. 178-04, specifically
provides:

If the respondent fails to file his Answer within five (5) working days from receipt of the Formal
Charge for the supporting evidence, when requested, he shall be considered to have waived his
right to file an answer and the PGM or the Board of Trustees, in proper cases, shall render
judgment, as may be warranted by the facts and evidence submitted by the prosecution.

A perusal of said section readily discloses that the failure of a respondent to file an answer
merely translates to a waiver of "his right to file an answer." There is nothing in the rule that says
that the charges are deemed admitted.  It has not done away with the burden of the complainant
to prove the charges with clear and convincing evidence.

Even granting that Rule 8, Section 11 of the Rules of Court finds application in this case,
petitioners must remember that there remain averments that are not deemed admitted by the
failure to deny the same.  Among them are immaterial allegations and incorrect conclusions
drawn from facts set out in the complaint.[11]  Thus, even if respondents failed to file their
answer, it does not mean that all averments found in the complaint will be considered as true and
correct in their entirety, and that the forthcoming decision will be rendered in favor of the
petitioners.  We must not forget that even in administrative proceedings, it is still the
complainant, or in this case the petitioners, who have the burden of proving, with substantial
evidence, the allegations in the complaint or in the formal charges.[12]

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