Duterte v. Moreno
REITERATIONFacts
The Antecedents: This case concerns the appointment of personnel to the Osmeña Waterworks System in Cebu City. Petitioners, including the incumbent Mayor Ramon Duterte and various officers and employees, were appointed to positions within the system. Some petitioners received appointments from the Secretary of Public Works and Communications, while others were appointed by the then City Mayor Sergio Osmeña, Jr. These latter appointments, made in July 1956, included salary increases and were intended to supersede previous appointments. However, these appointments were subsequently disapproved by the Bureau of Civil Service and the Executive Secretary, and the Auditor General ordered the disallowance of their salaries. Procedural History: The petitioners, whose appointments by the City Mayor were disapproved, filed an action seeking to compel the approval of their appointments, enjoin the Secretary of Public Works and Communications and the Manager of the National Waterworks and Sewerage Authority (NAWASA) from exercising appointment powers over the system, and order the payment of their salaries. The lower court dismissed the petition, ruling that the power to appoint personnel of the Osmeña Waterworks System rests with the Secretary of Public Works and Communications, not the City Mayor. The court did, however, order that the first group of petitioners (appointed by the Secretary of Public Works) be paid their salaries as authorized, and the second group (appointed by the City Mayor) be paid based on the Minimum Wage Law for services rendered until they were advised of the disapproval of their appointments. The Manager of NAWASA also appealed a portion of the decision regarding the transfer of administration of the waterworks system, but this was rendered moot by a prior Supreme Court decision. The petitioners appealed the dismissal of their petition. The Petition: The petitioners' appeal hinges on the singular question of who possesses the legal authority to appoint officers and employees of the Osmeña Waterworks System. They contend that the City Mayor of Cebu holds this power, citing provisions of the Revised Administrative Code and the Cebu City Charter. The Supreme Court, however, found this contention to be without merit. The Court referenced prior rulings, particularly concerning the Cavite Waterworks System, which established that the power to appoint such personnel is vested in the Secretary of Public Works and Communications, in accordance with relevant laws and the supervisory role of the Director of Public Works over waterworks systems. The Court affirmed the lower court's decision regarding the appointment power and modified it to explicitly order the City of Cebu to pay the salaries due to the employees for services rendered.
Issue(s)
Whether the Mayor of Cebu City or the Secretary of Public Works and Communications (SPWC) possesses the legal authority to appoint the officers and employees of the Osmeña Waterworks System.
Ruling
The Supreme Court affirmed the decision of the lower court with a modification. It declared that the Secretary of Public Works and Communications is empowered to appoint the officers and employees of the Osmeña Waterworks System. The Court also ordered the City of Cebu to pay the employees of the Osmeña Waterworks System for services actually rendered, in accordance with the pronouncements made regarding their entitlement to salaries.
Ratio Decidendi
On Issue 1: The Supreme Court held that the Secretary of Public Works and Communications (SPWC) is the official vested with the power of appointment. The Court rejected the petitioners' reliance on Section 1916 of the Revised Administrative Code, clarifying that said provision applies specifically to waterworks owned by provinces and municipalities, but does not encompass chartered cities. Furthermore, while Section 21 of the Cebu City Charter (C.A. 58) allows the Mayor to appoint officers whose appointment is 'not otherwise provided for by law,' the Court found that the law indeed provided otherwise. Commonwealth Act No. 424 (C.A. 424) explicitly places city engineers under the supervision of the Director of Public Works and mandates that their subordinates be appointed according to the laws governing the Bureau of Public Works. Applying the precedent in Morales v. City Engineer of the City of Cavite, the Court determined that the applicable law is Section 79(d) of the Revised Administrative Code, which grants the Department Head (the SPWC) the power to appoint subordinate employees upon the recommendation of the Bureau Chief. Consequently, because Act No. 2009 gives the Director of Public Works exclusive charge and control of OWS works, the SPWC retains the appointment authority. Finally, the Court noted that prior to the 1956 dispute, the City of Cebu had long recognized and acquiesced to the SPWC's exercise of this appointment power.
Main Doctrine
The power to appoint officers and employees of the Osmeña Waterworks System is lodged in the Secretary of Public Works and Communications, not the City Mayor of Cebu, in accordance with the relevant provisions of law governing public works and the administration of water systems.