The Supreme Court ruled in De Luna v. Government Service Insurance System (GSIS) that service of a decision in an administrative case is valid if made to either the party involved or their counsel, emphasizing that the choice of whom to serve rests with the deciding authority. This means government agencies have the discretion to serve decisions directly to the employee, and the decision’s finality is reckoned from that service, regardless of whether the counsel was also served. This ruling ensures administrative efficiency while upholding due process, as it clarifies that employees cannot delay the execution of decisions by refusing service or insisting on service only through counsel.

Service of Administrative Decisions: Who Decides When a Case is Officially Closed?

This case revolves around Emilie G. De Luna, a former Branch Manager of the Government Service Insurance System (GSIS) in Lucena City, who was dismissed from service following an administrative case for oppression and grave misconduct filed against her by subordinate employees. The GSIS, through its President and General Manager Federico C. Pascual, found De Luna guilty and ordered her dismissal. The central legal question is whether the service of the GSIS decision to De Luna herself, rather than her counsel, was valid and triggered the start of the period for filing a motion for reconsideration or an appeal. De Luna argued that the decision should have been served on her counsel for it to be considered final and executory. The Court of Appeals (CA) sided with the GSIS, leading De Luna to appeal to the Supreme Court.

At the heart of the dispute is the interpretation of Section 84 of the Civil Service Commission (CSC) Resolution No. 991936, also known as the Uniform Rules on Administrative Cases in the Civil Service. This section governs how the period for filing a motion for reconsideration or an appeal is computed. The critical portion states:

Copies of decisions and other communications shall be served on counsel but receipt by either counsel or party shall be deemed to be a valid service. The period to perfect a motion for reconsideration or an appeal shall be reckoned from the date of receipt of counsel or party, whichever is later.

De Luna argued that this provision mandates service on the counsel, making it a prerequisite for the decision to become final. The Supreme Court, however, disagreed. According to the Court, the rule is clear and unambiguous: service can be made on either the respondent herself or her counsel, and the GSIS has the discretion to choose whom to serve. The Court emphasized that the second paragraph of Section 84 must be construed in its entirety. The clause stating that copies of decisions should be served on counsel is qualified by the phrase that receipt by either counsel or party constitutes valid service. Thus, valid service can be made on the party, their counsel, or both, with the option resting with the GSIS.

Building on this principle, the Court addressed the validity of the service of the decision and resolution of the GSIS Board of Trustees on De Luna. The CA had ruled that there was valid and complete service on De Luna, as Vice President Benjamin Vivas, Jr. personally served her the decision and resolution on October 8, 1999, but she refused to accept them. Later, her secretary delivered the documents to her, and while she received them, she returned them to GSIS. The Supreme Court agreed with the CA, stating that De Luna could not frustrate the proper service of process by simply refusing to accept it. The Court emphasized that allowing such a tactic would render adverse decisions ineffective, which would be an absurd result.

The Court cited Vivas’s uncontroverted testimony that he informed De Luna of the GSIS decision and the Board of Trustees resolution on October 7, 1999. When De Luna arrived at Vivas’s office the following day, he attempted to hand her the decision and resolution, but she refused to receive them. Despite this refusal, the GSIS still sent a copy of the decision and resolution through registered mail to the Lucena City branch office on October 14, 1999. The copy was received by De Luna’s secretary, who informed her, but De Luna insisted that service had to be made on her counsel to be binding. The Supreme Court rejected this argument, confirming that the GSIS had fulfilled its obligation by attempting personal service and subsequently sending the documents via registered mail.

De Luna also sought refuge in Book VII, Chapters 1, 2, and 3 of the 1987 Revised Administrative Code. However, the Court clarified that CSC Resolution No. 991936, approved by the Commission pursuant to Section 12(2), Chapter 3, Title I, sub-title (A), Book V of the Code, governs administrative cases in the civil service. This resolution empowers the CSC to prescribe, amend, and enforce rules and regulations to effectively carry out its mandate. Furthermore, Section 14, Chapter 3, Book VII of the Revised Administrative Code, which De Luna invoked, also provides that parties or their counsel, if any, shall be notified of the decision.

The Supreme Court concurred with the CA’s finding that De Luna failed to perfect a motion for reconsideration or appeal within the prescribed period. Rule III, Section 38 of the CSC Uniform Rules on Administrative Cases grants parties fifteen (15) days from receipt to file a motion for reconsideration. Additionally, Section 46 outlines the requirements for perfecting an appeal, including a notice of appeal, appeal memorandum, proof of service, proof of payment, and a statement of non-forum shopping, all to be submitted within fifteen (15) days from receipt of the decision. Because De Luna failed to file a motion for reconsideration or appeal within the allotted time, the GSIS decision became final and executory. Therefore, the RTC committed grave abuse of discretion by issuing a writ of preliminary injunction despite the decision’s finality.

The Court reiterated that after a judgment becomes final, the court or quasi-judicial tribunal has a ministerial duty to order its execution. No court should interfere with such execution through injunction or otherwise, except in cases where facts and circumstances exist that would render execution unjust or inequitable, or where a change in the situation of the parties has occurred. To disrupt the final and executory decision of the GSIS through an injunction suit would disregard the principle of finality of judgments. De Luna failed to establish any justification for the issuance of a writ of preliminary injunction, emphasizing the importance of finality in administrative decisions and the need to avoid altering terminated proceedings.

In essence, the Supreme Court’s decision reinforces the principle of administrative efficiency and the finality of administrative decisions. It clarifies that agencies have the discretion to serve decisions on either the party or their counsel, and that parties cannot delay the execution of a decision by refusing service or insisting on service only through counsel. This ruling ensures that administrative proceedings are not unduly prolonged and that decisions are implemented in a timely manner.

FAQs

What was the key issue in this case?	The key issue was whether service of the GSIS decision on Emilie De Luna herself, instead of her counsel, was valid and triggered the period for filing a motion for reconsideration or appeal. The court had to interpret Section 84 of the CSC Resolution No. 991936.
Who has the discretion to choose whom to serve the decision?	The Supreme Court clarified that the GSIS, as the deciding authority, has the discretion to choose whether to serve the decision on the party involved or their counsel. This choice is provided for in the rules governing administrative cases.
What happens if the party refuses to accept the decision?	The Court ruled that a party cannot frustrate the proper service of process by refusing to accept the decision. Such refusal does not invalidate the service, and the decision is still considered to have been validly served.
What is the deadline for filing a motion for reconsideration or appeal?	The deadline for filing a motion for reconsideration or appeal is fifteen (15) days from the date of receipt of the decision by either the party or their counsel, whichever is later. This timeframe is crucial for preserving the right to challenge the decision.
What happens if no motion for reconsideration or appeal is filed within the deadline?	If no motion for reconsideration or appeal is filed within the prescribed period, the decision becomes final and executory. This means that the decision can no longer be reversed or modified, and the court or tribunal has a ministerial duty to order its execution.
Can a court interfere with the execution of a final and executory administrative decision?	Generally, a court cannot interfere with the execution of a final and executory administrative decision. Interference is only allowed in exceptional circumstances, such as when executing the decision would be unjust or inequitable.
What is the significance of CSC Resolution No. 991936 in this case?	CSC Resolution No. 991936, also known as the Uniform Rules on Administrative Cases in the Civil Service, governs administrative cases. Section 84 of this resolution was central to the Court’s decision regarding the validity of service of administrative decisions.
Why was the writ of preliminary injunction issued by the RTC considered a grave abuse of discretion?	The RTC’s issuance of a writ of preliminary injunction was considered a grave abuse of discretion because the GSIS decision was already final and executory. By issuing the injunction, the RTC interfered with the execution of a final judgment, which is generally prohibited.

In conclusion, the Supreme Court’s ruling in De Luna v. GSIS provides clarity on the valid service of administrative decisions, emphasizing the agency’s discretion and the importance of timely action by parties involved. This decision helps streamline administrative processes and ensures that decisions are implemented efficiently.

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: Emilie G. De Luna v. Federico C. Pascual, G.R. No. 144218, July 14, 2006