The Supreme Court has ruled that sheriffs do not have the authority to directly bill or collect fees related to extrajudicial foreclosure proceedings. This authority is exclusively vested in the Clerk of Court. This decision underscores the importance of adhering to prescribed procedures in the collection of fees to maintain transparency and prevent any appearance of impropriety within the judicial system. Sheriffs who violate these rules can face disciplinary actions, as the Court aims to ensure that public trust in the judiciary is preserved.

When a Sheriff Oversteps: The Case of Unauthorized Fee Collection

This case originated from a complaint filed by the General Manager of Rural Bank of Polomolok against Sheriff Roger D. Corea, who issued a billing statement for sheriff service fees and incidental expenses related to extrajudicial foreclosures. The central question was whether Sheriff Corea acted within his authority by directly billing the bank for these services, or if such actions constituted a violation of established procedures.

The Supreme Court’s decision hinged on the interpretation of Circular No. 7-2002 and the Revised Rules of Court, which delineate the proper procedures for handling fees associated with extrajudicial foreclosures. The Court emphasized that only the Clerk of Court is authorized to collect these fees. Section 2 of Circular No. 7-2002 explicitly states:

Sec. 2. Upon receipt of the application, the Clerk of Court shall:

x x x x

a. For the conduct of extra-judicial foreclosure of real estate or chattel mortgage under the direction of the sheriff, collect the appropriate filing fees and issue the corresponding official receipt pursuant to the following schedule:

This provision makes it clear that the responsibility for collecting fees lies solely with the Clerk of Court, ensuring accountability and preventing any potential abuse of power. The circular further outlines the specific amounts to be collected based on the indebtedness or mortgagee’s claim, providing a structured framework for fee collection.

Furthermore, the Court addressed the argument that the fees billed by Sheriff Corea were subject to the bank’s approval. The Court found this reasoning unacceptable, stating that it does not justify the sheriff’s unauthorized collection of fees. Even if the bank had the option to deny the fees, the inherent power imbalance could pressure the bank to comply, fearing delays or unfavorable actions from the sheriff. This underscores the importance of adhering to the prescribed procedures to prevent any potential coercion or undue influence.

The Court also referenced the case of Spouses Villa v. Judge Ayco, highlighting the vital role sheriffs play in the administration of justice. The Court quoted:

The Court recognizes the fact that sheriffs play a vital role in the administration of justice. In view of their important position, their conduct should always be geared towards maintaining the prestige and integrity of the court.

This underscores the importance of sheriffs maintaining the highest standards of conduct. Sheriffs are expected to perform their duties honestly and faithfully, and their actions must be beyond reproach. Any deviation from these standards can undermine public trust in the judiciary and erode the integrity of the legal system.

The Revised Rules of Court, specifically Sections 10(h), 10(1), and 21(d) of Rule 141, further clarify the fees that may be collected in relation to extrajudicial foreclosures. While these rules amended the amounts of fees, they did not alter the fundamental principle that only the Clerk of Court is authorized to collect such fees. Therefore, Sheriff Corea’s actions were in direct violation of these established guidelines.

The Court found Sheriff Corea’s conduct to be prejudicial to the best interest of the service, which is classified as a grave offense under Rule 10, Section 46(B)(8) of the Revised Rules on Administrative Cases in the Civil Service (RRACCS). This offense is punishable by suspension or dismissal. However, considering Sheriff Corea’s long service of almost 22 years, the Court deemed a suspension of two months without pay to be a sufficient penalty.

FAQs

What was the key issue in this case?	The key issue was whether Sheriff Roger D. Corea had the authority to directly bill and collect fees for extrajudicial foreclosure services, or if that authority rested solely with the Clerk of Court. The Supreme Court determined that only the Clerk of Court is authorized to collect such fees.
Who is authorized to collect fees for extrajudicial foreclosures?	According to Circular No. 7-2002 and the Revised Rules of Court, only the Clerk of Court is authorized to collect fees related to extrajudicial foreclosures. This ensures accountability and prevents any potential abuse of power.
What is the significance of Circular No. 7-2002 in this case?	Circular No. 7-2002 provides the guidelines for the enforcement of procedures in extrajudicial foreclosure of mortgages. It explicitly states that the Clerk of Court is responsible for collecting the appropriate filing fees.
What constitutes “conduct prejudicial to the best interest of the service”?	“Conduct prejudicial to the best interest of the service” refers to actions that are detrimental or derogatory to a party, and that bring about a wrong result. In this case, Sheriff Corea’s unauthorized billing and collection of fees was deemed to place his office and the Judiciary in a bad light.
What penalty did Sheriff Corea receive?	Considering his long service of almost 22 years, Sheriff Corea was suspended without pay for two months. He was also sternly warned that a repetition of the same or similar act would be dealt with more severely.
Why is it important for sheriffs to maintain high ethical standards?	Sheriffs play a vital role in the administration of justice, and their conduct should always be geared towards maintaining the prestige and integrity of the court. Public trust in the judiciary depends on the honesty and faithfulness of its officers.
Can a sheriff demand sums of money from a party-litigant without following proper procedures?	No, a sheriff cannot unilaterally demand sums of money from a party-litigant without observing the proper procedural steps. Doing so would amount to dishonesty or extortion, as stated in Judge Tan v. Paredes.
Are cooperatives, thrift banks, and rural banks exempt from paying extrajudicial foreclosure fees?	No, cooperatives, thrift banks, and rural banks are not exempt from the payment of filing fees and other fees related to extrajudicial foreclosures.

This case serves as a crucial reminder of the importance of strict adherence to established procedures in the collection of fees related to extrajudicial foreclosures. The Supreme Court’s decision underscores the need for transparency and accountability within the judicial system to maintain public trust and prevent any appearance of impropriety.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: OFFICE OF THE COURT ADMINISTRATOR v. ROGER D. COREA, A.M. No. P-11-2992, November 09, 2015