Crisostomo vs. Court of Appeals

A public official who is preventively suspended and subsequently acquitted is entitled to reinstatement and back salaries, but this right is subject to subsequent legislation that fixes the term of the office and authorizes the appointment of a successor; where such appointment is made, the original incumbent's term is deemed terminated, limiting recovery to salaries up to the date of termination and entitling the official only to retirement or separation benefits under the new law.

The dispute arose from the 1978 conversion of the Philippine College of Commerce (PCC) into the Polytechnic University of the Philippines (PUP) under Presidential Decree No. 1341, and the subsequent enactment of Presidential Decree No. 1437 which fixed the terms of presidents of state universities and colleges. During the pendency of criminal charges against the PCC President (who was under preventive suspension from 1976 to 1980), these legislative changes altered the governance structure and term limits of the institution, creating a conflict between the reinstatement order issued upon his acquittal and the new legal framework governing the university presidency.

• Petitioner Isabelo T. Crisostomo was appointed President of the Philippine College of Commerce (PCC) on July 17, 1974 by the President of the Philippines.
• During his incumbency, administrative cases were filed against him for illegal use of government vehicles, misappropriation of construction materials, oppression, grave misconduct, nepotism, and dishonesty, while criminal charges were filed for violations of R.A. No. 3019, R.A. No. 992, and R.A. No. 733.
• On October 22, 1976, he was preventively suspended from office pursuant to Section 13 of R.A. No. 3019, and Dr. Pablo T. Mateo, Jr. was designated as officer-in-charge on November 10, 1976, later becoming Acting President on May 13, 1977.
• On April 1, 1978, P.D. No. 1341 was issued converting the PCC into the Polytechnic University of the Philippines (PUP), defining new objectives, organizational structure, and expanding curricular offerings to include polytechnic areas beyond commerce.
• Dr. Mateo continued as head of the new University, appointed Acting President on April 3, 1979, and President for a six-year term on March 28, 1980.
• On July 11, 1980, the Circuit Criminal Court acquitted Crisostomo and ordered his reinstatement to the position of President of the PCC (now PUP) with entitlement to salaries and benefits during the suspension period, unless administrative proceedings had been filed.
• The administrative cases were dismissed for failure to prosecute, and the Tanodbayan cases were dismissed as moot.
• On February 12, 1992, Crisostomo filed a motion for execution in the Regional Trial Court, which granted the motion and issued writs on March 6 and April 24, 1992.
• On March 26, 1992, President Corazon C. Aquino appointed Dr. Jaime Gellor as acting president of PUP, and Crisostomo was one of the nominees considered.
• The sheriff executed the writ by installing Crisostomo on April 28, 1992, but Dr. Gellor refused to vacate, leading to contempt proceedings.

• P.D. No. 1341 merely converted the PCC into the PUP and did not abolish the former; the use of the term "converted" rather than "abolished" indicates legislative intent to continue the corporate existence of the institution under a new name and expanded academic status.
• The PUP is merely a continuation of the PCC, making reinstatement to the position of President legally possible.
• Cited E.O. No. 709, E.O. No. 710, and R.A. No. 6975 as examples showing that when the legislature intends to abolish an entity and create a new one, it uses express language of abolition and creation, which is absent in P.D. No. 1341.
• Contended that the differences in selection process and board composition between PCC and PUP do not amount to abolition of the original institution.

• The PUP and PCC are two different entities, not one and the same institution; the conversion resulted in the abolition of the PCC and creation of the PUP as a new institution.
• Crisostomo's term as President was coterminous with the legal existence of the PCC, which expired upon its abolition.
• The substantial differences in the manner of selection (appointment by President upon recommendation of Secretary of Education and Culture after consultation with Board of Regents vs. recommendation of Board of Trustees), composition of the governing board, and the transfer of properties indicate the creation of a new entity.
• Section 12 of P.D. No. 1341 stating that properties "stand transferred" to the PUP implies a transfer to a new and distinct entity.

• Procedural:
  • Whether the Court of Appeals correctly set aside the orders and writs of execution issued by the Regional Trial Court directing the reinstatement of petitioner and payment of salaries.
• Substantive Issues:
  • Whether P.D. No. 1341 abolished the Philippine College of Commerce or merely converted it into the Polytechnic University of the Philippines.
  • Whether petitioner is entitled to reinstatement as President of the PUP.
  • Whether petitioner is entitled to receive salaries and benefits accruing after the conversion of the PCC to the PUP and after the appointment of a new president.

• Procedural:
  • The Court of Appeals correctly set aside the orders and writs of execution insofar as they directed reinstatement to the position of President of PUP and payment of salaries accruing after the termination of petitioner's term.
  • However, the Court of Appeals erred in limiting the recovery of salaries only to the period before the conversion of PCC to PUP; the case was remanded to the trial court to determine the correct amounts due up to March 28, 1980.
• Substantive:
  • P.D. No. 1341 did not abolish the PCC but merely converted it into the PUP; the change was in academic status and organizational structure, not in corporate existence, as evidenced by the use of the term "converted" and the absence of express language creating a new institution or abolishing the old one.
  • Reinstatement was impossible because P.D. No. 1437, promulgated on June 10, 1978, fixed the term of presidents of state universities at six years and authorized the President to terminate incumbents not reappointed; the appointment of Dr. Mateo as President on March 28, 1980 effectively terminated petitioner's term.
  • Petitioner is entitled only to retirement benefits or separation pay under Section 7 of P.D. No. 1437, and to salaries and benefits only up to March 28, 1980, not beyond.

• Conversion vs. Abolition of Public Institutions — Conversion of a government institution changes its status, name, or structure but does not extinguish its corporate existence; abolition requires express legislative declaration using terms such as "abolished" or "created." The Court applied this to hold that the PCC continued as the PUP despite changes in governance and academic offerings.
• Effect of Preventive Suspension under R.A. No. 3019 — An official acquitted after preventive suspension is entitled to reinstatement and back salaries, unless administrative proceedings have been filed, but this right is subject to subsequent legislation affecting the position's term or existence.
• Termination of Term by Operation of Law — When a new law fixes the term of office and authorizes the appointment of a successor, the original incumbent's term is deemed terminated by such appointment, entitling the original official only to retirement or separation benefits under the new law's provisions.

• "P.D. No. 1341 did not abolish, but only changed, the former Philippine College of Commerce into what is now the Polytechnic University of the Philippines... What took place was a change in academic status of the educational institution, not in its corporate life."
• "Only an express declaration to that effect by the lawmaking authority will [abolish an existing institution and create a new one]."
• "'Stand transferred' simply means, for example, that lands transferred to the PCC were to be understood as transferred to the PUP as the new name of the institution."

• R.A. No. 3019, § 13 (Anti-Graft and Corrupt Practices Act) — Provision on preventive suspension of accused public officers; cited as basis for petitioner's suspension and entitlement to reinstatement upon acquittal.
• P.D. No. 1341 — Decree converting the Philippine College of Commerce into the Polytechnic University of the Philippines; central to the determination of whether the PCC was abolished or merely converted.
• P.D. No. 1437, §§ 6 and 7 — Decree fixing the term of office of presidents of state universities and colleges at six years and providing for retirement benefits; cited as the legal basis for terminating petitioner's term and limiting his monetary claims.
• R.A. No. 778, § 1 — Original charter converting the Philippine School of Commerce into the Philippine College of Commerce; cited as precedent for the conversion process.
• E.O. No. 709, § 1; E.O. No. 710, § 1; R.A. No. 6975, §§ 13 and 90 — Cited by petitioner as examples of laws expressly abolishing offices and creating new ones, distinguished from P.D. No. 1341.