GSIS Case Digest

"Basic as a hornbook principle is that
jurisdiction over the subject matter

of a case is conferred by law and
determined by the allegations in the
complaint which comprise a concise
statement of the ultimate facts
constituting the plaintiff's cause of
action.”
Submitted by: George S. Cadayday
THE CASE
G.R. No. 195382, June 15, 2016
Orion Water District, represented by its
General Manager, Crispin Q. Tria, et.al.,
petitioner
Vs.
Government Service Insurance System
 GSIS filed a Complaint for Collection of Sum of
Money and Damages before the RTC of Pasay
City against Orion Water District and its officers
for failure and refusal to pay, remit or deliver the
employees' personal share in the premiums of
their life and retirement policies.
 OWD filed a Motion to Dismiss alleging that the
RTC has no jurisdiction over the subject matter
of the case, asseverating that since GSIS and
OWD are both GOCCs, jurisdiction over disputes
or controversies between them lies with the
Secretary of Justice (pursuant to Sections 66 to
70, Chapter 14, Book IV of Executive Order (E.O.)
No. 292.)
 the RTC denied the Motion to Dismiss
finding it Unmeritorious.
The defendants failed to even allege that
they are disputing or controverting the claim
filed by the GSIS, or that the dispute, claim
or controversy between the parties arises
from the interpretation or application of the
statutes, contracts or agreements involved in
this case.
 OWD and its officers filed a Motion for
Reconsideration reiterating their claim of lack
of jurisdiction of the RTC, which was also
denied.
 OWD, represented by a new General Manager
(Tria), then filed a petition for certiorari with
the CA, imputing grave abuse of discretion on
the RTC for issuing the Orders and maintaining
that it has jurisdiction over the subject matter
of the case, in complete contradiction with
Sections 66 to 70, Chapter 14, Book IV of E.O.
No. 292.
 It emphasized that under the mentioned
law, the jurisdiction to settle disputes
among government offices lies with the
Department of Justice, as represented by
the Secretary of Justice, whose decision
shall be appealable to the Office of the
President and, thereafter, to the CA by way
of a petition for review under Rule 43 of the
Rules of Court.
 CA affirmed the challenged orders of the RTC.
The CA ruled that Sections 66 to 70, Chapter 14,
Book IV of E.O. No. 292 are inapplicable since the
dispute is not solely between GOCCs.
 Further, it held that Republic Act (R.A.) No. 8291,
pertaining to "The GSIS Act of 1997", particularly
Section 41(w) thereof clearly sanctioned the
filing of complaint with the RTC.
 OWD filed an MR but the same was denied by the

CA. Hence, the instant petition.
The Ruling: The Court finds the petition
unmeritorious.
 Membership in the GSIS is compulsory for all
employees receiving compensation who have
not reached the compulsory retirement age,
irrespective of employment status.
 A reading of the complaint filed by GSIS shows
that it is aimed at recovering the premium
arrearages of OWD on the life and retirement
policies of its employees which by law is
supposed to deduct from the salaries of the
employees concerned and remit to GSIS
accordingly.
 SEC.6.Collection and Remittance of Contributions. —
xxx
(b) Each employer shall remit directly to the GSIS the
employees' and employers' contributions within the
first ten (10) days of the calendar month following the
month to which the contributions apply. The
remittance by the employer of the contributions to the
GSIS shall take priority over and above the payment of
any and all obligations, except salaries and wages of
its employees.
Continued refusal of the employer to remit
contributions gives rise to a cause of action on the part
of GSIS to institute the necessary action in the
appropriate court or tribunal to recover unremitted
contributions.
 SEC. 41. Powers and Functions of the GSIS. - x x x
w) to ensure the collection or recovery of all indebtedness,
liabilities and/or accountabilities, including unpaid premiums
or contributions in favor of the GSIS arising from any cause or
source whatsoever, due from all obligors, whether public or
private. The Board shall demand payment or settlement of
the obligations referred to herein within thirty (30) days from
the date the obligation becomes due, and in the event of
failure or refusal of the obligor or debtor to comply with the
demand, to initiate or institute the necessary or proper
actions or suits, criminal, civil or administrative or otherwise,
before the courts, tribunals, commissions, boards, or bodies
of proper jurisdiction within thirty (30) days reckoned from
the expiry date of the period fixed in the demand within
which to pay or settle the account;
 As correctly held by the CA, the GSIS
properly instituted the complaint with the
RTC, which has the jurisdiction in civil cases
where the demand for sums of money or
value of property exceeds P300,000.00 in
the provinces, or P400,000.00 in Metro
Manila.
 The instant case does not partake of the
instances contemplated in Section 66. The
complaint filed by GSIS does not concern
the interpretation of a law, contract or
agreement between government agencies.
It is a complaint for collection of sum of
money, specifically to unremitted premium
contributions which by law, the OWD, as
the employer, is mandated to deliver to
GSIS within the prescribed period of time.
 Even assuming that the instant case falls
under any of the instances of disputes stated
in Section 66, it cannot still qualify for
administrative settlement since the case also
involved officials of OWD and not solely
between GSIS and OWD. Explicitly provided in
Section 66 is that only disputes, claims and
controversies solely between and among
departments, bureaus, offices, agencies, and
instrumentalities of the National Government,
including GOCCs shall be administratively
settled or adjudicated.
 The Court denied the petition and affirmed
the Decision and Resolution of the Court of
Appeals.
(The CA ruled that Sections 66 to 70, Chapter
14, Book IV of E.O. No. 292 are inapplicable
since the dispute is not solely between
GOCCs. Further, it held that Republic Act
(R.A.) No. 8291, pertaining to "The GSIS Act
of 1997", particularly Section 41(w) thereof
clearly sanctioned the filing of complaint with
the RTC.)

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"Basic as a hornbook principle is that

jurisdiction over the subject matter

 OWD filed an MR but the same was denied by the

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