The Supreme Court has affirmed the broad discretionary power of the Office of the Ombudsman in determining probable cause to file criminal charges against public officials. This discretion is not to be interfered with unless there is a clear showing of grave abuse amounting to lack or excess of jurisdiction. This case underscores the importance of respecting the Ombudsman’s judgment in evaluating evidence and deciding whether to prosecute a public servant, reinforcing the principle that the Ombudsman’s office is best positioned to assess the integrity of public service.

When Compliance Becomes Questionable: Examining Good Faith in Official Duty

This case, Hilario P. Soriano v. Deputy Ombudsman for Luzon, revolves around a complaint filed by Hilario P. Soriano against Adonis C. Cleofe, the Acting Registrar of Deeds of Batangas City. Soriano accused Cleofe of violating Section 3(e) of the Anti-Graft and Corrupt Practices Act (Republic Act No. 3019). The core issue stems from Cleofe’s decision to cancel Transfer Certificate of Title (TCT) No. T-43029 and issue a new one in the name of Ma. Teresa Robles without requiring the payment of proper taxes and fees. Soriano alleged that Cleofe’s actions gave unwarranted advantage to Robles and caused undue injury to First Coconut Rural Bank, Soriano Holdings Corporation, and the government.

The factual backdrop involves a series of transactions and a court order. Romeo L. Santos, the original owner of the land, had assigned his rights to Soriano Holdings Corporation. However, a separate legal battle between Santos and Robles resulted in a court order directing Santos to transfer the title to Robles. When Santos failed to comply, the court ordered the Register of Deeds to cancel Santos’s TCT and issue a new one to Robles. Cleofe, acting on this court order, proceeded with the transfer without requiring tax payments, citing a prior ruling by the Land Registration Authority (LRA) that such payments were not necessary for court-ordered transfers.

The Ombudsman dismissed Soriano’s complaint, finding no probable cause to hold Cleofe liable. The Ombudsman reasoned that Cleofe acted in good faith, relying on a court order and an LRA ruling. Soriano then filed a petition for certiorari, arguing that the Ombudsman had gravely abused its discretion. The Supreme Court, however, upheld the Ombudsman’s decision.

The Supreme Court emphasized the broad discretion afforded to the Ombudsman in determining probable cause. The Court reiterated that it would not interfere with the Ombudsman’s findings unless there was a clear showing of grave abuse of discretion. The Court defined grave abuse of discretion as the whimsical and capricious exercise of judgment, equivalent to lack or excess of jurisdiction. It is not simply an error of judgment but a blatant disregard of the law or established jurisprudence.

Building on this principle, the Court examined whether Cleofe’s actions constituted manifest partiality, evident bad faith, or gross inexcusable negligence, elements required to establish a violation of Section 3(e) of R.A. No. 3019. The Court found no evidence of any of these elements. Cleofe’s reliance on the court order and the LRA ruling demonstrated his good faith. The Court highlighted Section 117 of Presidential Decree No. 1529 (Property Registration Decree), which mandates that Registers of Deeds follow the rulings of the LRA in consulta cases:

Sec. 117. Procedure. – When the Register of Deeds is in doubt with regard to the proper step to be taken or memorandum to be made in pursuance of any deed, mortgage or other instrument presented to him for registration, or where any party in interest does not agree with the action taken by the Register of Deeds with reference to any such instrument, the question shall be submitted to the Commissioner of Land Registration by the Register of Deeds, or by the party in interest thru the Register of Deeds.

The Court noted that Soriano had the option to challenge Cleofe’s interpretation of the law by elevating the matter in consulta to the LRA. However, Soriano failed to do so, implying his acceptance of Cleofe’s stance. The Court then turned to the authority of the Ombudsman to determine probable cause.

The Court quoted its previous ruling in Vergara v. Ombudsman, emphasizing the Ombudsman’s plenary and unqualified power to investigate and prosecute public officials. The Court acknowledged that while it could review the Ombudsman’s actions for grave abuse of discretion, such interference was limited to specific instances, such as protecting the constitutional rights of the accused or preventing persecution. None of those exceptions applied in this case. The Supreme Court, therefore, deferred to the Ombudsman’s judgment.

Furthermore, the Court pointed out Soriano’s failure to specify which fees were not collected, leading to undue injury to the government. Soriano’s reliance on the alleged consideration of P20,000,000.00 for the sale was insufficient, especially since the Deed of Absolute Sale was never submitted due to the Santos spouses’ refusal to have it notarized. The Court also cited Administrative Order No. 07, outlining the rules of procedure of the Office of the Ombudsman, as amended, emphasizing the investigating officer’s authority to dismiss a complaint for want of palpable merit.

The Court’s decision reinforced the principle that public officials are presumed to act in good faith when discharging their duties. This presumption can only be overturned by clear and convincing evidence of malice, bad faith, or gross negligence. In this case, Soriano failed to provide such evidence, and the Court deferred to the Ombudsman’s expertise in evaluating the evidence presented.

This case underscores the delicate balance between holding public officials accountable and protecting them from harassment based on unfounded accusations. The decision reinforces the importance of respecting the Ombudsman’s discretion while ensuring that the office’s powers are not abused. It also serves as a reminder of the procedural remedies available to parties who disagree with the actions of public officials, such as elevating matters in consulta to the relevant authorities.

FAQs

What was the key issue in this case?	The central issue was whether the Deputy Ombudsman committed grave abuse of discretion in dismissing the criminal complaint against the Acting Registrar of Deeds for allegedly violating the Anti-Graft and Corrupt Practices Act. The complaint stemmed from the registrar’s decision to transfer a land title without requiring payment of taxes and fees, based on a court order.
What is the Anti-Graft and Corrupt Practices Act?	The Anti-Graft and Corrupt Practices Act (Republic Act No. 3019) is a Philippine law that prohibits public officials from engaging in corrupt practices, including receiving bribes, abusing their authority, and entering into disadvantageous contracts. Section 3(e) specifically penalizes causing undue injury to any party, including the Government, or giving any private party unwarranted benefits, advantage or preference in the discharge of his official administrative or judicial functions through manifest partiality, evident bad faith or gross inexcusable negligence.
What does “grave abuse of discretion” mean?	Grave abuse of discretion implies such capricious and whimsical exercise of judgment as is equivalent to lack of jurisdiction. The abuse must be so patent and gross as to amount to an evasion of a positive duty or to a virtual refusal to perform a duty enjoined by law, or to act at all in contemplation of law.
What is a Transfer Certificate of Title (TCT)?	A Transfer Certificate of Title (TCT) is a document issued by the Registry of Deeds that serves as evidence of ownership of a parcel of land. It contains information such as the name of the owner, the location and boundaries of the property, and any encumbrances or liens on the land.
What is the role of the Office of the Ombudsman?	The Office of the Ombudsman is an independent government agency responsible for investigating and prosecuting public officials accused of corruption, abuse of power, and other illegal acts. Its mandate is to promote good governance and accountability in the public service.
What is a consulta in land registration?	A consulta is a procedure under Section 117 of the Property Registration Decree where a Register of Deeds, when in doubt about the proper action to take regarding a document presented for registration, submits the question to the Commissioner of Land Registration for resolution. Any party in interest may also elevate the matter through the Register of Deeds.
What is the significance of LRA Consulta Case No. 2402?	LRA Consulta Case No. 2402 is a ruling by the Land Registration Authority stating that the requirement for the payment of transfer tax, capital gains tax, and documentary stamp tax does not apply to a transfer of property pursuant to a court order. The Acting Registrar of Deeds relied on this ruling when he transferred the land title without requiring tax payments.
What are the implications of this ruling for public officials?	This ruling reinforces the protection afforded to public officials when acting in compliance with court orders and established legal procedures. It clarifies that good faith reliance on such directives is a valid defense against charges of corruption or abuse of power.
Can the Ombudsman’s decisions be reviewed by the courts?	Yes, the Ombudsman’s decisions can be reviewed by the courts, but only in cases of grave abuse of discretion amounting to lack or excess of jurisdiction. The courts generally defer to the Ombudsman’s expertise and discretion in determining probable cause.

In conclusion, the Supreme Court’s decision in Soriano v. Deputy Ombudsman reaffirms the broad discretionary powers of the Ombudsman while clarifying the circumstances under which such discretion can be reviewed. This case emphasizes the importance of good faith and adherence to legal procedures in the actions of public officials.

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: HILARIO P. SORIANO, PETITIONER, VS. DEPUTY OMBUDSMAN FOR LUZON VICTOR C. FERNANDEZ, FLORIZA A. BRIONES, GRAFT INVESTIGATION AND PROSECUTION OFFICER II, DONNA B. PASCUAL, GRAFT INVESTIGATION AND PROSECUTION OFFICER II, AND ATTY. ADONIS C. CLEOFE, RESPONDENTS., G.R. No. 168157, August 19, 2015