Mabugay Otamias vs. Republic.
Mabugay Otamias vs. Republic.
Mabugay Otamias vs. Republic.
WITNESSETH
WHEREAS, the undersigned affiant is the legal husband of EDNA M. OTAMIAS and the father of Julie Ann,
Jonathan, Jennifer, Jeffren and Jemwel all residing at Patag, Cagayan de Oro City;
WHEREAS, the undersigned will be retiring from the military service and expects to receive retirement benefits
from the Armed Forces of the Philippines;
WHEREAS, the undersigned had expressed his willingness to give a share in his retirement benefits to my wife
and five (5) abovenamed children,
NOW, THEREFORE, for and in consideration of the foregoing premises, the undersigned hereby stipulated the
following:
1. That the undersigned will give to my legal wife and five (5) children FIFTY PERCENT (50%) of my retirement
benefits to be pro rated among them.
2. That a separate check(s) be issued and to be drawn and encash [sic] in the name of the legal wife and five (5)
children pro-rating the fifty (50%) percent of my retirement benefits.
IN WITNESS WHEREOF, I have hereunto set my hand this 26th day of February 2003 at Fort Bonifacio, Makati
City.9cralawred
Colonel Otamias retired on April 1, 2003.10ChanRoblesVirtualawlibrary
The agreement was honored until January 6, 2006.11 Edna alleged that "the A[rmed] F[orces] [of the] Philippines]
suddenly decided not to honor the agreement"12 between Colonel Otamias and his legitimate family.
In a letter13 dated April 3, 2006, the Armed Forces of the Philippines Pension and Gratuity Management Center
(AFP PGMC) informed Edna that a court order was required for the AFP PGMC to recognize the Deed of
Assignment.14ChanRoblesVirtualawlibrary
In another letter15 dated April 17, 2006, the AFP PGMC reiterated that it could not act on Edna's request to
receive a portion of Colonel Otamias' pension "unless ordered by [the] appropriate
court."16ChanRoblesVirtualawlibrary
Heeding the advice of the AFP PGMC, Edna, on behalf of herself and Jeffren M. Otamias and Jemwel M.
Otamias (Edna, et al.), filed before the Regional Trial Court of Cagayan de Oro, Misamis Oriental an action for
support, docketed as F.C. Civil Case No. 2006-039.17ChanRoblesVirtualawlibrary
The trial court's Sheriff tried to serve summons on Colonel Otamias several times, to no avail.18Substituted
service was resorted to.19 Colonel Otamias was subsequently declared in default for failure to file a responsive
pleading despite order of the trial court.20ChanRoblesVirtualawlibrary
The trial court ruled in favor of Edna, et al. and ordered the automatic deduction of the amount of support from
the monthly pension of Colonel Otamias.21ChanRoblesVirtualawlibrary
The dispositive portion of the trial court's Decision stated:chanRoblesvirtualLawlibrary
ALL THE FOREGOING CONSIDERED, and in consonance with the legal obligation of the defendant to the
plaintiffs, the Armed Forces of the Philippines, through its Finance Center and/or appropriate Finance Officer
thereof, is thereby ordered to release to Edna Mabugay Otamias and minor Jemwel M. Otamias, herein
represented by his mother Edna, their fifty (50%) per cent share of each of the monthly pension due to Colonel
Francisco B. Otamias, AFP PA (Retired).
Defendant Francisco Otamias is also ordered to pay plaintiff Edna M. Otamias, fifty (50%) per cent of whatever
retirement benefits he has already received from the Armed Forces of the Philippines AND the arrears in
support, effective January 2006 up to the time plaintiff receives her share direct from the Finance Center of the
Armed Forces of the Philippines.
IT IS SO ORDERED.22cralawred
The Armed Forces of the Philippines, through the Office of the Judge Advocate General, filed a Manifestation/
Opposition23 to the Decision of the trial court, but it was not given due course due to its late filing.
24ChanRoblesVirtualawlibrary
Edna, et al., through counsel, filed a Motion for Issuance of Writ of Execution25 dated February 22, 2008. The
trial court granted the Motion, and a writ of execution was issued by the trial court on April 10,
2008.26ChanRoblesVirtualawlibrary
The Armed Forces of the Philippines Finance Center (AFP Finance Center), tlirough the Office of the Judge
Advocate General, filed a Motion to Quash27 the writ of execution and argued that the AFP Finance Center's
duty to disburse benefits is ministerial. It releases benefits only upon the AFP PGMC's approval.
28ChanRoblesVirtualawlibrary
The trial court denied the Motion to Quash and held that:chanRoblesvirtualLawlibrary
Under the law and existing jurisprudence, the "right to support" is practically equivalent to the "right to life." The
"right to life" always takes precedence over "property rights." The "right to support/life" is also a substantive right
which always takes precedence over technicalities/procedural rules. It being so, technical rules must yield to
substantive justice. Besides, this Court's Decision dated February 27, 2007 has long acquired finality, and as
such, is ripe for enforcement/execution.
THE FOREGOING CONSIDERED, the instant Motion is hereby DENIED.29cralawred
The AFP PGMC moved for reconsideration of the order denying the Motion to Quash,30 but the Motion was also
denied by the trial court in the Order31 dated August 6, 2008.
A Notice of Garnishment was issued by the trial court on July 15, 2008 and was received by the AFP PGMC on
September 9, 2008.32ChanRoblesVirtualawlibrary
The AFP PGMC filed before the Court of Appeals a Petition for Certiorari and Prohibition.
33ChanRoblesVirtualawlibrary
The Court of Appeals granted34 the Petition for Certiorari and Prohibition and partially nullified the trial court's
Decision insofar as it directed the automatic deduction of support from the pension benefits of Colonel Otamias.
The Court of Appeals discussed that Section 3135 of Presidential Decree No. 1638, otherwise known as the AFP
Military Personnel Retirement and Separation Decree of 1979, "provides for the exemption of the monthly
pension of retired military personnel from execution and attachment[,]"36 while Rule 39, Section 13 of the Rules
of Court provides:chanRoblesvirtualLawlibrary
SEC. 13. Property exempt from execution. Except as otherwise expressly provided by law, the following
property, and no other, shall be exempt from execution:
. . . .
(1) The right to receive legal support, or money or property obtained as such support, or any pension or gratuity
from the Government[.]cralawred
The Court of Appeals also cited Pacific Products, Inc. vs. Ong:37
[M]oneys sought to be garnished, as long as they remain in the hands of the disbursing officer of the
Government, belong to the latter, although the defendant in garnishment may be entitled to a specific portion
thereof. And still another reason which covers both of the foregoing is that every consideration of public policy
forbids it.38cralawred
In addition, the AFP PGMC was not impleaded as a party in the action for support; thus, it is not bound by the
Decision.39ChanRoblesVirtualawlibrary
The dispositive portion of the Court of Appeals Decision reads:chanRoblesvirtualLawlibrary
WHEREFORE, the petition is GRANTED. The assailed Decision of the Regional Trial Court, Branch 19,
Cagayan de Oro City dated February 27, 2007 in Civil Case No. 2006-039 is PARTIALLY NULLIFIED in so far
as it directs the Armed Forces of the Philippines Finance Center to automatically deduct the financial support in
favor of private respondents, Edna Otamias and her children Jeffren and Jemwel Otamias, from the pension
benefits of Francisco Otamias, a retired military officer. The Order dated June 10, 2008, Order dated August 6,
2008 and Writ of Execution dated April 10, 2008, all issued by the court a quo are likewise SET ASIDE. Perforce,
let a writ of permanent injunction issue enjoining the implementation of the assailed Writ of Execution dated April
10, 2008 and the corresponding Notice of Garnishment dated July 15, 2008. No pronouncement as to costs.
SO ORDERED.40 (Emphasis in the original)cralawred
Edna, et al. moved for reconsideration, but the Motion was denied by the Court of Appeals.
41ChanRoblesVirtualawlibrary
Edna, et al. filed before this Court a Petition for Review on Certiorari42 on November 11, 2009. In the
Resolution43 dated January 20, 2010, this Court required respondent to comment.
In the Resolution44 dated August 4, 2010, this Court noted the Comment filed by the Office of the Solicitor
General and required Edna, et al. to file a reply.45ChanRoblesVirtualawlibrary
A Reply46 was filed on September 27, 2010.
Edna, et al. argue that the Deed of Assignment Colonel Otamias executed Is valid and legal.
47ChanRoblesVirtualawlibrary
They claim that Section 31 of Presidential Decree No. 163848 "does not include support";49hence, the retirement
benefits of Colonel Otamias can be executed upon.
Edna, et al. also argue that the Court of Appeals erred in granting respondent's Petition because it effectively
rendered the Deed of Assignment of no force and effect.50 On the other hand, the trial court's Decision
implements the Deed of Assignment and Edna, et al.'s right to support.51ChanRoblesVirtualawlibrary
Further, the AFP PGMC had already recognized the validity of the agreement and had made payments to them
until it suddenly stopped payment.52 After Edna, et al. obtained a court order, the AFP PGMC still refused to
honor the Deed of Assignment.53ChanRoblesVirtualawlibrary
The Armed Forces of the Philippines, through the Office of the Solicitor General, argues that it was not a party to
the case filed by Edna, et al.54 Thus, "it cannot be compelled to release part of the monthly pension benefits of
retired Colonel Otamias in favor of [Edna, et al]."55ChanRoblesVirtualawlibrary
The Office of the Solicitor General avers that the AFP PGMC never submitted itself to the jurisdiction of the trial
court.56 It was not a party to the case as the trial court never acquired jurisdiction over the AFP PGMC.
57ChanRoblesVirtualawlibrary
The Office of the Solicitor General also argues that Section 31 of Presidential Decree No. 1638 and Rule 39,
Section 13(1) of the Rules of Court support the Court of Appeals Decision that Colonel Otamias' pension
benefits are exempt from execution.58ChanRoblesVirtualawlibrary
Section 31 of Presidential Decree No. 1638 "does not deprive the survivor/s of a retired or separated officer or
enlisted man of their right to support."59 Rather, "[w]hat is prohibited is for respondent [AFP PGMC] to segregate
a portion of the pension benefit in favor of the retiree's family while still in the hands of the A[rmed] F[orces] [of
the] Philippines]."60ChanRoblesVirtualawlibrary
Thus, the AFP PGMC "cannot be compelled to directly give or issue a check in favor of [Edna, et al.] out of the
pension gratuity of Col. Otamias."61ChanRoblesVirtualawlibrary
In their Reply,62 Edna, et al. argue that the Armed Forces of the Philippines should not be allowed to question the
legal recourse they took because it was an officer of the Armed Forces of the Philippines who had advised them
to file an action for support.63ChanRoblesVirtualawlibrary
They argue that the phrase "while in the active service" in Section 31 of Presidential Decree No. 1638 refers to
the "time when the retired officer incurred his accountabilities in favor of a private creditor[,]"64 who is a third
person. The phrase also "serves as a timeline designed to separate the debts incurred by the retired officer after
his retirement from those which he incurred prior thereto."65ChanRoblesVirtualawlibrary
Further, the accountabilities referred to in Section 31 of Presidential Decree No. 1638 refer to debts or loans, not
to support.66ChanRoblesVirtualawlibrary
The issues for resolution are:
First, whether the Court of Appeals erred in ruling that the AFP Finance Center cannot be directed to
automatically deduct the amount of support needed by the legitimate family of Colonel Otamias; and
Second, whether Colonel Otamias' pension benefits can be executed upon for the financial support of his
legitimate family.
The Petition is granted.
I
Article 6 of the Civil Code provides:chanRoblesvirtualLawlibrary
Article 6. Rights may be waived, unless the waiver is contrary to law, public order, public policy, morals or good
customs, or prejudicial to a third person with a right recognized by law.cralawred
The concept of waiver has been defined by this Court as:chanRoblesvirtualLawlibrary
a voluntary and intentional relinquishment or abandonment of a known existing legal right, advantage, benefit,
claim or privilege, which except for such waiver the party would have enjoyed; the voluntary abandonment or
surrender, by a capable person, of a right known by him to exist, with the intent that such right shall be
surrendered and such person forever deprived of its benefit; or such conduct as warrants an inference of the
relinquishment of such right; or the intentional doing of an act inconsistent with claiming it.67cralawred
In determining whether a statutory right can be waived, this Court is guided by the following
pronouncement:chanRoblesvirtualLawlibrary
[T]he doctrine of waiver extends to rights and privileges of any character, and, since the word 'waiver' covers
every conceivable right, it is the general rule that a person may waive any matter which affects his property, and
any alienable right or privilege of which he is the owner or which belongs to him or to which he is legally entitled,
whether secured by contract, conferred with statute, or guaranteed by constitution, provided such rights and
privileges rest in the individual, are intended for his sole benefit, do not infringe on the rights of others,
and further provided the waiver of the right or privilege is not forbidden by law, and does not contravene
public policy; and the principle is recognized that everyone has a right to waive, and agree to waive, the
advantage of a law or rule made solely for the benefit and protection of the individual in his private capacity, if it
can be dispensed with and relinquished without infringing on any public right, and without detriment to the
community at large[.]68 (Emphasis in the original)cralawred
When Colonel Otamias executed the Deed of Assignment, he effectively waived his right to claim that his
retirement benefits are exempt from execution. The right to receive retirement benefits belongs to Colonel
Otamias. His decision to waive a portion of his retirement benefits does not infringe on the right of third persons,
but even protects the right of his family to receive support.
In addition, the Deed of Assignment should be considered as the law between the parties, and its provisions
should be respected in the absence of allegations that Colonel Otamias was coerced or defrauded in executing
it. The general rule is that a contract is the law between parties and parties are free to stipulate terms and
conditions that are not contrary to law, morals, good customs, public order, or public policy.
69ChanRoblesVirtualawlibrary
The Deed of Assignment executed by Colonel Otamias was not contrary to law; it was in accordance with the
provisions on support in the Family Code. Hence, there was no reason for the AFP PGMC not to recognize its
validity.
Further, this Court notes that the AFP PGMC granted the request for support of the wives of other retired military
personnel in a similar situation as that of petitioner in this case. Attached to the Petition are the affidavits of the
wives of retired members of the military, who have received a portion of their husbands' pensions.
70ChanRoblesVirtualawlibrary
One affidavit stated:chanRoblesvirtualLawlibrary
4. That when I consulted and appeared before the Office of PGMC, I was instructed to submit a Special
Power of Authority from my husband so they can release part of his pension to me;
5. That my husband signed the Special Power of Attorney at the PGMC ceding 50% of his pension to me;
the SPA form was given to us by the PGMC and the same was signed by my husband at the PGMC;. . .
....
7. That the amount was deposited directly to my account by the PGMC- Finance Center AFP out of the
pension of my husband;
8. That only the Special Power of Attorney was required by the PGMC in order for them to segregate my
share of my husband's pension and deposit the same to my account[.]71
The other affidavit stated:chanRoblesvirtualLawlibrary
8. That my husband signed the Special Power of Attorney at the PGMC ceding 50% of his pension to me;
the SPA form was given to us by the PGMC and the same was signed by my husband at the PGMC[.]72
In addition, the AFP PGMC's website informs the public of the following procedure:chanRoblesvirtualLawlibrary
Tanong: My husband-retiree cut-off my allotment. How can I have it restored?
Sagot: Pension benefits are separate properties of the retiree and can not [sic] be subject of a Ocurt [sic] Order
for execution nor can they be assigned to any third party (Sec 31, PD 1638, as amended). However, a valid
Special Power of Attorney (SPA) by the retiree himself empowering the AFP Finance Center to deduct certain
amount from his lumpsum [sic] or pension pay as the case maybe, as a rule, is a valid waiver of rights which can
be effectively implemented by the AFP F[inance] C[enter].73cralawred
Clearly, the AFP PGMC allows deductions from a retiree's pension for as long as the retiree executes a Special
Power of Attorney authorizing the AFP PGMC to deduct a certain amount for the benefit of the retiree's
beneficiary.
It is curious why Colonel Otamias was allowed to execute a Deed of Assignment by the administering officer
when, in the first place, the AFP PGMC's recognized procedure was to execute a Special Power of Attorney,
which would have been the easier remedy for Colonel Otamias' family.
Instead, Colonel Otamias' family was forced to incur litigation expenses just to be able to receive the financial
support that Colonel Otamias was willing to give to Edna, et al.
II
Section 31 of Presidential Decree No. 1638 provides:chanRoblesvirtualLawlibrary
Section 31. The benefits authorized under this Decree, except as provided herein, shall not be subject to
attachment, garnishment, levy, execution or any tax whatsoever; neither shall they be assigned, ceded, or
conveyed to any third person: Provided, That if a retired or separated officer or enlisted man who is entitled to
any benefit under this Decree has unsettled money and/or property accountabilities incurred while in the active
service, not more than fifty per centum of the pension gratuity or other payment due such officer or enlisted man
or his survivors under this Decree may be withheld and be applied to settle such accountabilities.cralawred
Under Section 31, Colonel Otamias' retirement benefits are exempt from execution. Retirement benefits are
exempt from execution so as to ensure that the retiree has enough funds to support himself and his family.
On the other hand, the right to receive support is provided under the Family Code. Article 194 of the Family
Code defines support as follows:chanRoblesvirtualLawlibrary
Art. 194. Support comprises everything indispensable for sustenance, dwelling, clothing, medical attendance,
education and transportation, in keeping with the financial capacity of the family.
The education of the person entitled to be supported referred to in the preceding paragraph shall include his
schooling or training for some profession, trade or vocation, even beyond the age of majority. Transportation
shall include expenses in going to and from school, or to and from place of work.cralawred
The provisions of the Family Code also state who are obliged to give support, thus:chanRoblesvirtualLawlibrary
Art. 195. Subject to the provisions of the succeeding articles, the following are obliged to support each other to
the whole extent set forth in the preceding article:
III
Republic v. Yahon74 is an analogous case because it involved the grant of support to the spouse of a retired
member of the Armed Forces of the Philippines.
In Republic v. Yahon, Daisy R. Yahon filed a Petition for the Issuance of Protection Order under Republic Act No.
9262.75 She alleged that she did not have any source of income because her husband made her resign from her
job.76 The trial court issued a temporary restraining order, a portion of which stated:chanRoblesvirtualLawlibrary
To insure that petitioner [Daisy R. Yahon] can receive a fair share of respondent's retirement and other
benefits, the following agencies thru their heads are directed to WITHHOLD any retirement, pension [,]
and other benefits of respondent, S/SGT. CHARLES A. YAHON, a member of the Armed Forces of the
Philippines assigned at 4ID, Camp Evangelista, Patag, Cagayan de Oro City until further orders from the
court:chanRoblesvirtualLawlibrary
1. Commanding General/Officer of the Finance Center of the Armed Forces of the Philippines, Camp Emilio
Aguinaldo, Quezon City;
2. The Management of RSBS, Camp Emilio Aguinaldo, Quezon City;
3. The Regional Manager of PAG-IBIG, Mortola St., Cagayan de Oro City.77 (Emphasis in the original)cralawred
The trial court subsequently granted Daisy's Petition and issued a permanent protection order78and
held:chanRoblesvirtualLawlibrary
Pursuant to the order of the court dated February 6, 2007, respondent, S/Sgt. Charles A. Yahon is directed to
give it to petitioner 50% of whatever retirement benefits and other claims that may be due or released to him
from the government and the said share of petitioner shall be automatically deducted from respondent's benefits
and claims and be given directly to the petitioner, Daisy R. Yahon.
Let copy of this decision be sent to the Commanding General/Officer of Finance Center of the Armed Forces of
the Philippines, Camp Emilio Aguinaldo, Quezon City; the Management of RSBS, Camp Emilio Aguinaldo,
Quezon City and the Regional Manager of PAG-IBIG, Mortola St., Cagayan de Oro City for their guidance and
strict compliance.79cralawred
In that case, the AFP Finance Center filed before the trial court a Manifestation and Motion stating that "it was
making a limited and special appearance"80 and argued that the trial court did not acquire jurisdiction over the
Armed Forces of the Philippines. Hence, the Armed Forces of the Philippines is not bound by the trial court's
ruling.81ChanRoblesVirtualawlibrary
The Armed Forces of the Philippines also cited Pacific Products, where this Court ruled
that:chanRoblesvirtualLawlibrary
A rule, which has never been seriously questioned, is that money in the hands of public officers, although it may
be due government employees, is not liable to the creditors of these employees in the process of garnishment.
One reason is, that the State, by virtue of its sovereignty may not be sued in its own courts except by express
authorization by the Legislature, and to subject its officers to garnishment would be to permit indirectly what is
prohibited directly. Another reason is that moneys sought to be garnished, as long as they remain in the hands of
the disbursing officer of the Government, belong to the latter, although the defendant in garnishment may be
entitled to a specific portion thereof. And still another reason which covers both of the foregoing is that every
consideration of public policy forbids it.82 (Citations omitted)cralawred
This Court in Republic v. Yahon denied the Petition and discussed that because Republic Act No. 9262 is the
later enactment, its provisions should prevail,83 thus:chanRoblesvirtualLawlibrary
We hold that Section 8(g) of R.A. No. 9262, being a later enactment, should be construed as laying down an
exception to the general rule above stated that retirement benefits are exempt from execution. The law itself
declares that the court shall order the withholding of a percentage of the income or salary of the respondent by
the employer, which shall be automatically remitted directly to the woman "[n]otwithstanding other laws to the
contrary"84 (Emphasis in the original)cralawred
IV
The 1987 Constitution gives much importance to the family as the basic unit of society, such that Article XV85 is
devoted to it.
The passage of the Family Code further implemented Article XV of the Constitution. This Court has recognized
the importance of granting support to minor children, provided that the filiation of the child is proven. In this case,
the filiation of Jeffren M. Otamias and Jemwel M. Otamias was admitted by Colonel Otamias in the Deed of
Assignment.86ChanRoblesVirtualawlibrary
Even before the passage of the Family Code, this Court has given primary consideration to the right of a child to
receive support. In Samson v. Yatco,87 a petition for support was dismissed with prejudice by the trial court on
the ground that the minor asking for support was not present in court during trial. An appeal was filed, but it was
dismissed for having been filed out of time. This Court relaxed the rules of procedure and held that "[i]f the order
of dismissal with prejudice of the petition for support were to stand, the petitioners would be deprived of their
right to present and nature support."88ChanRoblesVirtualawlibrary
In Gan v. Reyes,89 Augustus Caezar R. Gan (Gan) questioned the trial court's decision requiring him to give
support and claimed that that he was not the father of the minor seeking support. He also argued that he was not
given his day in court. This Court held that Gan's arguments were meant to delay the execution of the judgment,
and that in any case, Gan himself filed a Motion for Leave to Deposit in Court Support Pendente
Lite:chanRoblesvirtualLawlibrary
In all cases involving a child, his interest and welfare are always the paramount concerns. There may be
instances where, in view of the poverty of the child, it would be a travesty of justice to refuse him support until
the decision of the trial court attains finality while time continues to slip away. An excerpt from the early case
of De Leon v. Soriano is relevant, thus:chanRoblesvirtualLawlibrary
The money and property adjudged for support and education should and must be given presently and without
delay because if it had to wait the final judgment, the children may in the meantime have suffered because of
lack of food or have missed and lost years in school because of lack of funds. One cannot delay the payment of
such funds for support and education for the reason that if paid long afterwards, however much the accumulated
amount, its payment cannot cure the evil and repair the damage caused. The children with such belated
payment for support and education cannot act as gluttons and eat voraciously and unwisely, afterwards, to make
up for the years of hunger and starvation. Neither may they enrol in several classes and schools and take up
numerous subjects all at once to make up for the years they missed in school, due to non-payment of the funds
when needed.90cralawred
V
The non-inclusion of the AFP PGMC or the AFP Finance Center in the action for support was proper, considering
that both the AFP PGMC and the AFP Finance Center are not the persons obliged to give support to Edna, et al.
Thus, it was not a real party-in-interest.91 Nor was the AFP PGMC a necessary party because complete relief
could be obtained even without impleading the AFP PGMC.92ChanRoblesVirtualawlibrary
WHEREFORE, the Petition is GRANTED. The Court of Appeals Decision dated May 22, 2009 and Resolution
dated August 11, 2009 in CA-G.R. SP No. 02555-MIN are REVERSED and SET ASIDE. The Regional Trial
Court Decision dated February 27, 2007 in F.C. Civil Case No. 2006-039 is REINSTATED.
SO ORDERED.chanroblesvirtuallawlibrary
Carpio, (Chairperson), Del Castillo, and Mendoza, JJ.,concur.
Brion, J., on official leave.