January 2013 Philippine Supreme Court Decisions on Remedial Law

Here are select January 2013 rulings of the Supreme Court of the Philippines on remedial law:

Civil Procedure

Annulment of Judgment; exception to final judgment rule; lack of due process as additional ground. A petition for Annulment of Judgment under Rule 47 of the Rules of Court is a remedy granted only under exceptional circumstances where a party, without fault on his part, has failed to avail of the ordinary remedies of new trial, appeal, petition for relief or other appropriate remedies. Said rule explicitly provides that it is not available as a substitute for a remedy which was lost due to the party’s own neglect in promptly availing of the same. “The underlying reason is traceable to the notion that annulling final judgments goes against the grain of finality of judgment, litigation must end and terminate sometime and somewhere, and it is essential to an affective administration of justice that once a judgment has become final, the issue or cause involved therein should be laid to rest.”

While under Section 2, Rule 47 of the Rules of Court a Petition for Annulment of Judgment may be based only on the grounds of extrinsic fraud and lack of jurisdiction, jurisprudence recognizes lack of due process as additional ground to annul a judgment. In Arcelona v. Court of Appeals, this Court declared that a final and executory judgment may still be set aside if, upon mere inspection thereof, its patent nullity can be shown for having been issued without jurisdiction or for lack of due process of law. Leticia Diona, represented by her Attorney-in-fact, Marcelina Diona v. Romeo Balangue, Sonny Balangue, Reynaldo Balangue, and Esteban Balangue, Jr.; G.R. No. 173559. January 7, 2013

Appeal; filing of motion for extension of time to file motion for reconsideration in CA does not toll fifteen-day period to appeal; rule suspended in exceptional cases to serve substantial justice. The assailed CA resolution upheld the general rule that the filing of a motion for reconsideration in the CA does not toll the fifteen-day period to appeal, citing Habaluyas Enterprises, Inc. v. Japson. However, in previous cases we suspended this rule in order to serve substantial justice.

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January 2013 Philippine Supreme Court Decisions on Labor Law and Procedure

Here are select January 2013 rulings of the Supreme Court of the Philippines on labor law and procedure:

Appeal to the National Labor Relations Commission (NLRC); Requisites for perfection of appeal; Joint declaration under oath accompanying the surety bond; Substantial compliance with procedural rules.  There was substantial compliance with the NLRC Rules of Procedure when the respondents PAL Maritime Corporation and Western Shipping Agencies, Pte., Ltd. filed, albeit belatedly, the Joint Declaration Under Oath, which is required when an employer appeals from the Labor Arbiter’s decision granting a monetary award and posts a surety bond.  Under the NLRC rules, the following requisites are required to perfect the employer’s appeal: (1) it must be filed within the reglementary period; (2) it must be under oath, with proof of payment of the required appeal fee and the posting of a cash or surety bond; and (3) it must be accompanied by typewritten or printed copies of the memorandum of appeal, stating the grounds relied upon, the supporting arguments, the reliefs prayed for, and a statement of the date of receipt of the appealed decision, with proof of service on the other party of said appeal.  If the employer posts a surety bond, the NLRC rules further require the submission by the employer, his or her counsel, and the bonding company of a joint declaration under oath attesting that the surety bond posted is genuine and that it shall be in effect until the final disposition of the case.

In the case at bar, the respondents posted a surety bond equivalent to the monetary award and filed the notice of appeal and the appeal memorandum within the reglementary period.  When the NLRC subsequently directed the filing of a Joint Declaration Under Oath, the respondents immediately complied with the said order.  There was only a late submission of the Joint Declaration.  Considering that there was substantial compliance with the rules, the same may be liberally construed.  The application of technical rules may be relaxed in labor cases to serve the demands of substantial justice. Rolando L. Cervantes vs. PAL Maritime Corporation and/or Western Shipping Agencies, Pte., Ltd.  G.R. No. 175209. January 16, 2013.

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February 2012 Philippine Supreme Court Decisions on Labor Law and Procedure

Here are select February 2012 rulings of the Supreme Court on labor law and procedure:

Appeal; factual finding of NLRC. Findings of fact of administrative agencies and quasi-judicial bodies, which have acquired expertise because their jurisdiction is confined to specific matters, are generally accorded not only respect but finality when affirmed by the Court of Appeals. Factual findings of quasi-judicial bodies like the NLRC, if supported by substantial evidence, are accorded respect and even finality by the Supreme Court, more so when they coincide with those of the Labor Arbiter. Such factual findings are given more weight when the same are affirmed by the Court of Appeals. In the present case, the Supreme Court found no reason to depart from these principles since the Labor Arbiter found that there was substantial evidence to conclude that Oasay had breached the trust and confidence of Palacio Del Gobernador Condominium Corporation, which finding the NLRC had likewise upheld. Sebastian F. Oasay, Jr. vs. Palacio del Gobernador Condominium Corporation and Omar T. Cruz, G.R. No. 194306, February 6, 2012.

Civil Service; Clark Development Corporation. Clark Development Corporation (CDC) owes its existence to Executive Order No. 80 issued by then President Fidel V. Ramos. It was meant to be the implementing and operating arm of the Bases Conversion and Development Authority tasked to manage the Clark Special Economic Zone. Expressly, CDC was formed in accordance with Philippine corporation laws and existing rules and regulations promulgated by the Securities and Exchange Commission pursuant to Section 16 of Republic Act 7227. CDC, a government owned or controlled corporation without an original charter, was incorporated under the Corporation Code. Pursuant to Article IX-B, Sec. 2(1) of the Constitution, the civil service embraces only those government owned or controlled corporations with original charter. As such, CDC and its employees are covered by the Labor Code and not by the Civil Service Law. Antonio B. Salenga, et al. vs. Court of Appeals, et al., G.R. No. 174941, February 1, 2012.

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November 2010 Philippine Supreme Court Decisions on Remedial Law

Here are selected November 2010 rulings of the Supreme Court of the Philippines on remedial law:

Civil Procedure

Appeal; argument raised for first time on appeal. As a last ditch effort, petitioner asserts that the property is a road right of way; thus, it cannot be subject of a writ of execution.  The argument must be rejected because it was raised for the first time in this petition.  In the trial court and the CA, petitioner’s arguments zeroed in on the alleged conjugal nature of the property.  It is well settled that issues raised for the first time on appeal and not raised in the proceedings in the lower court are barred by estoppel. Points of law, theories, issues, and arguments not brought to the attention of the trial court ought not to be considered by a reviewing court, as these cannot be raised for the first time on appeal.  To consider the alleged facts and arguments raised belatedly would amount to trampling on the basic principles of fair play, justice, and due process.  Evangeline D. Imani vs. Metroplitan Bank and Trust Company, G.R. No. 187023, November 17, 2010.

Appeal; argument raised for first time on appeal. The petitioners now claim that the Motion for Reconsideration, filed by the respondent on May 18, 1993 from the September 18, 1992 Order of the RTC, was filed out of time.  The petitioners make this claim to justify their contention that the subsequent rulings of the RTC, including the June 2, 1993 and October 1, 1993 Orders, are barred by res judicata.

We reject this belated claim as the petitioners raised this only for the first time on appeal, particularly, in their Memorandum.  In fact, the petitioners never raised this issue in the proceedings before the court a quo or in the present petition for review.

As a rule, a party who deliberately adopts a certain theory upon which the case is tried and decided by the lower court will not be permitted to change the theory on appeal.  Points of law, theories, issues and arguments not brought to the attention of the lower court need not be, and ordinarily will not be, considered by a reviewing court, as these cannot be raised for the first time at such late stage. It would be unfair to the adverse party who would have no opportunity to present further evidence material to the new theory, which it could have done had it been aware of it at the time of the hearing before the trial court.  Thus, to permit the petitioners in this case to change their theory on appeal would thus be unfair to the respondent and offend the basic rules of fair play, justice and due process.  Spouses Ernesto and Vicenta Topacio vs. Banco Filipino Savings and Mortgage Bank, G.R. No. 157644, November 17, 2010.

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November 2010 Philippine Supreme Court Decisions on Labor Law and Procedure

Here are selected November 2010 rulings of the Supreme Court of the Philippines on labor law and procedure:

Appeal; determination of date of filing. Under Section 3, Rule 13 of the Rules of Court, where the filing of pleadings, appearances, motions, notices, orders, judgments, and all other papers with the court/tribunal is made by registered mail, the date of mailing, as shown by the post office stamp on the envelope or the registry receipt, shall be considered as the date of filing. Thus, the date of filing is determinable from two sources:  from the post office stamp on the envelope or from the registry receipt, either of which may suffice to prove the timeliness of the filing of the pleadings. If the date stamped on one is earlier than the other, the former may be accepted as the date of filing. In this case, to prove that it mailed the notice of appeal and appeal memorandum on October 27, 1997, instead of October 28, 1997, as shown by the stamped date on the envelope, petitioner presented Registry Receipt No. 34581 bearing the earlier date. Government Service Insurance System vs. National Labor Relations Commission (NLRC), Dionisio Banlasan, et al., G.R. No. 180045, November 17, 2010.

Appeal; filed out of time; exceptional cases. An appeal must be perfected within the statutory or reglementary period.  This is not only mandatory, but also jurisdictional.  Failure to perfect the appeal on time renders the assailed decision final and executory and deprives the appellate court or body of the legal authority to alter the final judgment, much less entertain the appeal. However, in exceptional cases, a belated appeal may be given due course if greater injustice will be visited upon the party should the appeal be denied. This is to serve the greater principles of substantial justice and equity. Technical rules are not binding in labor cases and are not to be applied strictly if the result would be detrimental to the working man. In the instant case, even if the appeal was filed one day late, the same should have been entertained by the NLRC. Government Service Insurance System vs. National Labor Relations Commission (NLRC), Dionisio Banlasan, et al., G.R. No. 180045, November 17, 2010.

Compensable illness; work-relatedness.  Granting arguendo that petitioner’s illness was not pre-existing, he still had to show that his illness not only occurred during the term of his contract but also that it resulted from a work-related injury or illness, or at the very least aggravated by the conditions of the work for which he was contracted for.  Petitioner failed to discharge this burden, however. That the exact and definite cause of petitioner’s illness is unknown cannot be used to justify grant of disability benefits, absent proof that there is any reasonable connection between work actually performed by petitioner and his illness.  Jerry M. Francisco, vs. Bahia Shipping Services, Inc. and/or Cynthia C. Mendoza, and Fred Olsen Cruise Lines, Ltd., G.R. No. 190545,  November 22, 2010.

Dismissal; illegal strike; distinction between union officers and mere members. The liabilities of individuals who participate in an illegal strike must be determined under Article 264 (a) of the Labor Code which makes a distinction between union officers and mere members.  The law grants the employer the option of declaring a union officer who knowingly participated in an illegal strike as having lost his employment. However, a worker merely participating in an illegal strike may not be terminated from employment if he does not commit illegal acts during a strike. Hence, with respect to respondents who are union officers, their termination by petitioners is valid.  Being fully aware that the proceedings before the Secretary of Labor were still pending as in fact they filed a motion for reconsideration, they cannot invoke good faith as a defense. For the rest of the individual respondents who are union members, they cannot be terminated for mere participation in the illegal strike.  Solid Bank Corp. Ernesto U. Gamier, et al. and Solid Bank Corp., et al. vs. Solid Bank Union and its Dismissed Officers and Members, et al. G.R. No. 159460 and G.R. No. 159461, November 15, 2010.

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August 2010 Philippine Supreme Court Decisions on Legal and Judicial Ethics

Here are selected August 2010 rulings of the Supreme Court of the Philippines on legal and judicial ethics:

Attorney; gross discourtesy. When Milagros finally met respondent on September 30, 2008 [in order to collect on his debt to her], respondent, in the presence of several others, told her “Eh kung sabihin ko na sugar mommy kita,” adding that “Nagpapakantot ka naman sa akin.” The Court finds that respondent is indeed guilty of gross discourtesy amounting to conduct unbecoming of a court employee.  By such violation, respondent failed to live up to his oath of office as member of the Integrated Bar of the Philippines and violated Rule 7.03 of the Code of Professional Responsibility. The Court has consistently been reminding officials and employees of the Judiciary that their conduct or behavior is circumscribed with a heavy burden of responsibility which, at all times, should be characterized by, among other things, strict propriety and decorum. As such, they should not use abusive, offensive, scandalous, menacing and improper language. Their every act or word should be marked by prudence, restraint, courtesy and dignity. Aside from violating Rule 7.03 of the Code of Professional Responsibility, respondent appears to have also violated Rule 8.01 of the same Code. Complaints of Mrs. Milagros Lee & Samantha Lee against Atty. Gil Luisito R. Capito, A.M. No. 2008-19-SC. August 18, 2010

Attorney; mistake binding on client. A client is generally bound by the mistakes of his lawyer; otherwise, there would never be an end to a litigation as long as a new counsel could be employed, and who could then allege and show that the preceding counsel had not been sufficiently diligent or experienced or learned. The legal profession demands of a lawyer that degree of vigilance and attention expected of a good father of a family; such lawyer should adopt the norm of practice expected of men of good intentions.  Moreover, a lawyer owes it to himself and to his clients to adopt an efficient and orderly system of keeping track of the developments in his cases, and should be knowledgeable of the remedies appropriate to his cases. National Tobacco Administration vs. Daniel Castillo, G.R. No. 154124,August 13, 2010.

Attorney; mistake of counsel. Granting that their counsel made a mistake in entering into such stipulations, such procedural error unfortunately bound them.  The Court has consistently held that the mistake or negligence of a counsel in the area of procedural technique binds the client unless such mistake or negligence of counsel is so gross or palpable that would require the courts to step in and accord relief to the client who suffered thereby.  Without this doctrinal rule, there would never be an end to a suit so long as a new counsel could be employed to allege and show that the prior counsel had not been sufficiently diligent, experienced, or learned. Gilbert Urma, et al. vs. Hon. Orlando Beltran, et al., G.R. No. 180836, August 8, 2010.

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June 2010 Philippine Supreme Court Decisions on Remedial Law

Here are selected June 2010 Philippine Supreme Court decisions on remedial law:

Civil Procedure

Annulment of judgment; direct recourse to this remedy not allowed if other appropriate remedies are available.  Sections 1 and 2 of Rule 47 of the Rules of Court impose the conditions for the availment of the remedy of annulment of judgment, viz.:

Section 1. Coverage.- This Rule shall govern the annulment by the Court of Appeals of judgments or final orders and resolutions in civil actions of Regional Trial Courts for which the ordinary remedies of new trial, appeal, petition for relief or other appropriate remedies are no longer available through no fault of the petitioner.

Section 2. Groundsfor annulment. – The annulment may be based only on the grounds of extrinsic fraud and lack of jurisdiction.

Extrinsic fraud shall not be a valid ground if it was availed of, or could have been availed of, in a motion for new trial or petition for relief.

Section 1, Rule 47 provides that it does not allow a direct recourse to a petition for annulment of judgment if other appropriate remedies are available, such as a petition for new trial, appeal or a petition for relief.  If petitioner fails to avail of these remedies without sufficient justification, she cannot resort to the action for annulment of judgment under Rule 47, for otherwise, she would benefit from her inaction or negligence.

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