Teofilo Arcel, a USAFFE Veteran of the Second World War, was appointed to the position of watchman in the Office of the City Treasurer of Cebu City, with compensation of P2.00 per day effective January 4, 1947. His appointment was issued by Mayor Vicente S. del Rosario (a lawyer and son of revolutionary general and lawyer from Imus, Pantaleon Del Rosario).
Mr. Arcel's daily wage was increased to P2.70 per day effective July 1, 1951. This time, the acting mayor was Pedro Elizalde. Finally Arcel's daily wage was increased to P4.00 per day, this took effect on July 1, 1952, by Mayor Jose V. Rodriguez (a doctor of medicine and former congressman of the old 7th District of Cebu). The increase was made to comply with the Minimum Wage Law.
On January 5, 1956, Arcel received a termination letter from Mayor Sergio V. Osmeña Jr., the letter dated December 31, 1956. The termination was justified by Mayor Serging that Ordinance No. 220 abolished the position of Arcel as watchman.
Arcel pleaded with Mayor Serging to reconsider his termination. However, Mayor Serging appointed another person as watchman and thereafter the City Treasurer and Auditor stopped the payment of the salary of Teofilo Arcel.
Arcel went to the Court of First Instance to fight for his employment with the city hall, this was however dismissed. The ground for the dismissal was that the Municipal Board of Cebu City has authority to reduce the number or even abolish positions in the city government.
Arcel appealed the dismissal of his case with the trial court before the Supreme Court on March 15, 1957. The Supreme Court said that there is no question that under its Charter (Commonwealth Act no. 58), the Municipal Board of Cebu has authority to reduce or even abolish positions in the city government. It however said that such right cannot be used to discharge or dismiss employees in violation of the civil service law.
The reason of the dismissal of the petition of Arcel before the Court of First Instance, that there is no evidence that he (Teofilo Arcel) is a civil service eligible is true. However, the Supreme Court said the watchman (Teofilo Arcel) was appointed to an unclassified position, therefore his lack of eligibility did not remove him from the operation and protection of the civil service law.
The Supreme Court explained that under the Constitution and the Civil Service Law, officers and employees of the unclassified service, like those occupying classified positions, are protected by law. The creation of a new position should have been given to Teofilo Arcel and not to another person, Arcel being a veteran and senior as compared to the new appointee of Mayor Serging Osmeña Jr.
The argument of Mayor Serging that Arcel prior to his termination was appointed as clerk-collector in the Treasurer's Office, which he refused to accept, proof that there was no abuse of discretion on his part, was not given weight. The Supreme Court said that the appointment was temporary and dependent upon the will of the appointee unlike the position of watchman.
The Supreme Court decided that the decision of the lower court dismissing the legal suit of Teofilo Arcel be set aside and another one entered, this time, it ordered the City Mayor to reinstate Teofilo Arcel to the position of Watchman in the Office of the City Treasurer, with back salaries. The decision of the Supreme Court was dated February 27, 1961 and was written by Justice Barrera.
Teofilo Arcel was assisted by the brilliant and famous lawyer Emilio A. Matheu of San Nicolas, Cebu City. Matheu became a lawyer on May 16, 1950. A namesake of Atty. Matheu, Dr. Emilio Matheu, Jr. is a professor in the Graduate School of Business and Management at the University of San Jose-Recoletos.