Dimagiba v. Espartero

PERALTA, J.:

Assailed in this petition for review on certiorari are the Decision1 dated May 30, 2002 and the Resolution2 dated August 28, 2002 of the Court of Appeals issued in CA-G.R. SP No. 61261. Petitioners Hilarion Dimagiba (Dimagiba), Irma Mendoza (Mendoza), and Ellen Rasco (Rasco) were employees of The Livelihood Corporation (LIVECOR), a government-owned and controlled corporation created under Executive Order No. 866. Petitioner Dimagiba was the Group Manager, Asset Development and Management Group; petitioner Mendoza was the Division Chief III, Asset Development and Management Group; and petitioner Rasco was the Project Evaluation Officer IV, Asset Development and Management Group.

On March 8, 1990, LIVECOR and the Human Settlement Development Corporation (HSDC), now known as Strategic Investment and Development Corporation (SIDCOR), also a government-owned and controlled corporation, created under Presidential Decree (P.D.) 1396, entered into a Trust Agreement3 whereby the former would undertake the task of managing, administering, disposing and liquidating the corporate assets, projects and accounts of HSDC. In HSDC Board Resolution No. 3-26-A4 dated March 26, 1990, it was provided that in order to carry out the trust agreement, LIVECOR personnel must be designated concurrently to operate certain basic HSDC/SIDCOR functions, thus, LIVECOR personnel, namely, petitioners Dimagiba and Mendoza were designated as Assistant General Manager for Operations and Head, Inter-Agency Committee on Assets Disposal and as Treasurer and Controller, respectively. The same resolution provided for the designees' monthly honoraria and commutable reimbursable representation allowances (CRRA).

Petitioner Rasco was designated as Technical Assistant to the Officer-in-Charge (OIC), also with CRRA, under HSDC Board Resolution No. 05-19-B5 dated May 19, 1993. In a letter6 dated November 14, 1997, the Department of Budget and Management informed LIVECOR of the approval of its organization/staffing pattern modifications which resulted in the abolition of petitioners' positions. As a result, petitioners were separated from the service effective June 30, 1998 and were each given a separation package7 as follows: Dimagiba Mendoza Rasco 1.

Separation Pay ₱608,580.00 ₱815,021.91 ₱519,125.16 2. Gratuity Pay 165,600.00 132,150.00 112,555.00 3. Terminal Pay 352,075.48 58,398.18 22,633.25 4.

Last Month Gross Salary 17,410.00 15,815.00 13,555.50 5. Service Award 10,000.00