Republic of the Philippines
SUPREME COURT
Manila

EN BANC

A.M. No. 190 October 18, 1977

RE: CLAIMS FOR BENEFITS OF THE HEIRS OF THE LATE MARIO V. CHANLIONGCO, FIDELA B. CHANLIONGCO, MARIO B. CHANLIONGCO II, MA. ANGELINA C. BUENAVENTURA and MARIO C. CHANLIONGCO, JR., claimants.ñé+.£ªwph!1

R E S O L U T I O N


MAKASIAR, J.:têñ.£îhqwâ£

This matter refers to the claims for retirement benefits filed by the heirs of the late ATTY. MARIO V. CHANLIONGCO an attorney in this Court, under the provisions of R.A. No. 1616, as amended by R.A. No. 4986, which was approved by this Court in its resolution of August 19, 1976, effective on July 12, 1976 it a g from the records that at the time of his death on July 12, 1976, Atty. Chanliongco was more than 63 years of age, with more than 38 years of service in the government. He did not have any pending criminal administrative or not case against him, neither did he have any money or property accountability. The highest salary he received was P18,700.00 per annum.

The above named flied the appellants for benefits with the accruing and with the Government Service System.

Aside from his widow, Dra. Fidel B. Chanliongco and an only Intimate Mario it appears that there are other deceased to namely, Mrs. Angelina C. , Jr., both born out of wedlock to Angelina R Crespo, and duly recognized by the deceased. Except Mario, Jr., who is only 17 years of age, all the claimants are of legal age.

According to law, the benefits accruing to the deceased consist of: (1) retirement benefits; (2) money value of terminal leave; (3) life insurance and (4) refund of retirement premium.

From the records now before US, it appears that the GSIS had already the release the life insurance proceeds; and the refund of rent to the claimants.

What, therefore, to be settled are the retirement benefits and the money value of leave, both of which are to be paid by this court as the deceased's last employer.

The record also shows that the late Atty. Chanliongco died ab intestato and that he filed or over to state in his application for membership with the GSIS the beneficiary or benefits of his retirement benefits, should he die before retirement. Hence, the retirement benefits shall accrue to his estate and will be distributed among his Legal heirs in with the benefits on intestate s , as in the caw of a fife if no benefit is named in the policy (Vda. de vs. GSIS, L-28093, Jan. 30, 1971, 37 SCRA 315, 325).

Insofar therefore as the retirement benefits are WE adopt in toto, for being in accordance with law, the GSIS determination of the amount of the retirement the kill heirs and their e shares as indicated in its letter to US, dated March 15, 1977, to wit: ñé+.£ªwph!1

(a) Amount of retirement grautity:

1. Total creditable service

37.57169 years

2. Highest rate of salary

Pl,558.33333/mo.

3. Gratuity in terms of months

50.14338 months

4. Amount of gratuity (highest

 

salary) x (No. of grautity months)

P78,140,10

(b) Legal heirs:

1. Fidela B. Chanliongco.

widow

2. Mario B. Chanliongco II.

legitimate son

3. Ma. Angelina C. Buenaventura

illegitimate child

4. Mario Chanliongco Jr.

illegitimate child

(c) Distribution

 

(1) 8/16 share to Mario II

P39,070.050

(2) 4/16 share to the widow, Fidela B. Chanliongco

19,535.025

(3) 2/16 share, or P9,767.5125 each to the two illegitimate children Ma. Angelina C. Buenaventura and Mario Chanliongco, Jr.

19 535 25

T O T A L

P78.140.100

Coming now to the money value of the terminal leave, unpaid salary and 10% adjustment pursuant to Budget Circular No. 240, dated July 22, 1974, this Court's Finance Officer, in a memorandum dated March 23, 1977, indicated the breakdown of these items as follows:

Unpaid salary for July 8-12, 1976 @

 

 

P1,416.66/mo.

P228.49

 

10% salary adj. for July 1-12, 1976

54.84

 

Money value of terminal leave for the

 

 

period from July 13, 1976 to September

 

 

14,1977 @ P1,558.33

21,962.54

 

Sub-Total

P22,9245.87

 

Less:

 

 

Withholding Tax

P1,400.00

 

Supreme Court

 

 

Savings & Loan

 

 

Association

7,340.42

8.740.42

NET PROCEEDS

 

P13,505.45

It further appears that at the time of his death the late Atty. Chanliongco had an outstanding account with the Supreme Court Savings & Loans Association in the sum of P7,340.42. Deduction this amount plus another sum of P1,400.00, representing withhold tax due from him, or a total of P8,740.42, from above sub-total sum of P22,245.87. WE have at the net sum P13,505.45, available for distribute to the claimants as follows:

1. Fidela B. Chanliongco

 

 

 

a. As her conjugal share

P 6,752.72

 

b. As a legal heir

P 1,688.18

2. Mario Chanliongco II

 

P 3,376.36

3. Ma. Angelina C. Buenaventura

 

844.10

4. Mario Jr.

 

844.09

 

T O T A L

P13,505.45

It will be seen from the f distribution that the money value of the unused vacation and sick leave, unpaid will and 10% adjustment due to the has been treated as conjugal property. Accordingly, one-half (l/2) goes to the widow as her share in the conjugal hip and the other half P6,752.725 is to be distributed to the deceased's kill him, using the same one WE used in distributing the retirement benefits. This is so because "Vacation with pay is not a gratuity but is compensation for services rendered." (Ramey vs. State, 296 NW 323, 296 Mich. 449).

WHEREFORE, THE CLAIMS ARE HEREBY APPROVED. THE FINANCE AND/OR DISBURSING OFFICER OF THIS COURT IS ORDERED To pay IMMEDIATELY TO EACH AND EVERY CLAIMANT HE VARIOUS SUMS HEREUNDER INDICATED OPPOSITE THEIR NAMES, AS FOLLOWS:

1. FIDELA B. CHANLIONGCO

 

A. HER 4/16 SHARE OF RETIREMENT GRATUITY

P19,535.025

B. HER SHARE FROM MONEY VALUE OF TEAL LEAVE, UNPAID SALARY AND 10% ADJUSTMENT:

 

(1) AS HER CONJUGAL SHARE

6,752.72

(2) AS A LEGAL HEIR

P1,688.18

TOTAL AMOUNT DUE HER

P27,975.93

2. MARIO CHANLIONGCO II

 

A. HIS 8/16 SHARE OF RETIREMENT GRATUITY

P39,070.05

B. HIS SHARE FROM MONEY VALUE OF TERMINAL LEAVE, UNPAID SALARY AND 10% ADJUSTMENT

3,376.36

TOTAL AMOUNT DUE HIM

P42,446.41

3. MA. ANGELINA C. BUENAVENTURA:

 

A. HER 2/16 SHARE OF RETIREMENT GRATUITY

P9,767.51

B. HER SHARE FROM MONEY VALUE OF TERMINAL LEAVE, UNPAID SALARY AND 10% ADJUSTMENT

844.10

TOTAL AMOUNT DUE HER

P10,611.61

4. MARIO CHANLIONGCO JR. TO BE PAID THROUGH HIS MOTHER AND NATURAL GUARDIAN, ANGELINA CRESPO):

 

A. HIS 2/16 SHARE OF RETIREMENT GRATUITY

P9,767.51

B. HIS SHARE FROM MONEY VALUE OF TERMINAL LEAVE, UNPAID SALARY AND 10% ADJUSTMENT

844.10

TOTAL AMOUNT DUE HIM

P10,611.61

SO ORDERED.

Castro, C.J., Barredo, Antonio, Muñ;oz Palma, Concepcion, Jr., Martin, Santos, Fernandez and Guerrero, JJ., concur.1äwphï1.ñët

Fernando, J., is on leave.

 

 

Separate Opinions

 

AQUINO, J., concurring:

I concur. The provisions on legitime are found under the rubric of testamentary succession. That does not mean that the legitime is taken into account only in testamentary succession. The legitime must also be taken into consideration in legal succession.

There may be instances, like the instant case, where in legal succession the estate is distributed according to the rules on legitime without applying the rules on intestate ion. The reason is that sometimes the estate is not even sufficient to satisfy the legitimes. The legitimes of the primary compulsory heirs, like a child or descendant, should first be satisfied.

In this case the decedent's legal heirs are his legitimate child, his widow and two intimate children. His estate is partitioned among those heirs by giving them their respective time.

The legitimate child gets one-half of the estate as his legitime which is regarded as his share as a legal heir Art 888, Civil Code).

The widow's legitime is one-fourth of the estate. That represents also her share as a legal heir (Art. 892, 1st sentence, Civil Code).

The remaining one-fourth of the estate, which is the free portion, goes to the illegitimate children in equal shares, as their legitime, Pursuant to the provision that 'the legitimate of the illegitimate children shall be taken from the portion of the estate at the free disposal of the testator, provoked that in no case shall the total legitime of such illegitimate children exceed that free portion, and that the legitime of the surviving spouse must first be fully satisfied par., art. 895, Civil Code).

The rule in Santillon vs. Miranda, L-19281, June 30, 1965, 14 SCRA 563, that when the surviving spouse concurs with only one legitimate child, the spouse is entitled to one-half of the estate and the gets the other half, t to article 996 of the Civil Code, does not apply to the case because here intimate children concur with the surviving spouse and the intimate child.

In this case, to divide the estate between the surviving spouse and the ligitemate child that deprive the illegitimate children of their legitime.

So, the decendent's estate is distributed in the proportion of 1/2 for the legitimate child, 1/4 for the widow and 1/8 each for the two illegitimate children.

Also not of possible application to this case is the rule that the legal of an acknowledge natural child is 1/2 of the legitime of the legitimate child of that the of the spurious child is 2/5 of that of the of the intimate child or 4/5 of that of that of the acknowledged natural child.

The rule be applied because the estate is not sufficient to cover legitimes of all compulsory heirs. That is one of the flaws of the law of succession.

A situation as in the instant case may arise where the illegitimate children get less than their legitime.

With respect to the decendant's unpaid salary and the money value of his leave, the same are conjugal properties because of the rule that property "obtained by the or work, or as salary of the spouses, or either of them", is conjugal in character (Art. 153[2], Civil Code).

 

Separate Opinions

AQUINO, J., concurring:

I concur. The provisions on legitime are found under the rubric of testamentary succession. That does not mean that the legitime is taken into account only in testamentary succession. The legitime must also be taken into consideration in legal succession.

There may be instances, like the instant case, where in legal succession the estate is distributed according to the rules on legitime without applying the rules on intestate ion. The reason is that sometimes the estate is not even sufficient to satisfy the legitimes. The legitimes of the primary compulsory heirs, like a child or descendant, should first be satisfied.

In this case the decedent's legal heirs are his legitimate child, his widow and two intimate children. His estate is partitioned among those heirs by giving them their respective time.

The legitimate child gets one-half of the estate as his legitime which is regarded as his share as a legal heir Art 888, Civil Code).

The widow's legitime is one-fourth of the estate. That represents also her share as a legal heir (Art. 892, 1st sentence, Civil Code).

The remaining one-fourth of the estate, which is the free portion, goes to the illegitimate children in equal shares, as their legitime, Pursuant to the provision that 'the legitimate of the illegitimate children shall be taken from the portion of the estate at the free disposal of the testator, provoked that in no case shall the total legitime of such illegitimate children exceed that free portion, and that the legitime of the surviving spouse must first be fully satisfied par., art. 895, Civil Code).

The rule in Santillon vs. Miranda, L-19281, June 30, 1965, 14 SCRA 563, that when the surviving spouse concurs with only one legitimate child, the spouse is entitled to one-half of the estate and the gets the other half, t to article 996 of the Civil Code, does not apply to the case because here intimate children concur with the surviving spouse and the intimate child.

In this case, to divide the estate between the surviving spouse and the ligitemate child that deprive the illegitimate children of their legitime.

So, the decendent's estate is distributed in the proportion of 1/2 for the legitimate child, 1/4 for the widow and 1/8 each for the two illegitimate children.

Also not of possible application to this case is the rule that the legal of an acknowledge natural child is 1/2 of the legitime of the legitimate child of that the of the spurious child is 2/5 of that of the of the intimate child or 4/5 of that of that of the acknowledged natural child.

The rule be applied because the estate is not sufficient to cover legitimes of all compulsory heirs. That is one of the flaws of the law of succession.

A situation as in the instant case may arise where the illegitimate children get less than their legitime.

With respect to the decendant's unpaid salary and the money value of his leave, the same are conjugal properties because of the rule that property "obtained by the or work, or as salary of the spouses, or either of them", is conjugal in character (Art. 153[2], Civil Code).


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