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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May 2011 Philippine Supreme Court Decisions on Political Law

Here are selected May 2011 rulings of the Supreme Court of the Philippines on political law.

Constitutional Law

Declaration of unconstitutionality; doctrine of operative fact.  An unconstitutional act is not a law; it confers no rights; it imposes no duties; it affords no protection; it creates no office; it is inoperative as if it has not been passed at all.  The doctrine of operative fact is an exception this rule.  It applies as a matter of equity and fair play, and nullifies the effects of an unconstitutional law by recognizing that the existence of a statute prior to a determination of unconstitutionality is an operative fact and may have consequences that cannot always be ignored. It applies when a declaration of unconstitutionality will impose an undue burden on those who have relied on the invalid law.  The doctrine cannot be applied to this case, as to hold otherwise would be iniquitous to petitioner who was illegally dismissed from employment and would allow his employer to profit from a violation of an unconstitutional provision of law.  Claudio S. Yap v. Thenamaris Ship’s Management and Intermare Maritime Agencies, Inc., G.R. No. 179532. May 30, 2011.

Judicial review; review of executive policy.  Petitioner here seeks judicial review of a question of Executive policy, which the Court ruled is outside its jurisdiction.  Despite the definition of judicial power under Section 1, Article VIII of the Constitution, the determination of where, as between two possible routes, to construct a road extension is not within the province of courts.  Such determination belongs exclusively to the Executive branch.  Barangay Captain Beda Torrecampo v. Metropolitan Waterworks and Sewerage System, et al., G.R. No. 188296. May 30, 2011.

Administrative Law; Public Officers

Administrative cases; due process.  Petitioners argue that they were denied due process because their order of dismissal was not accompanied by any justification from the Board of Directors of Philippine Estates Authority, which merely relied on the findings of the Presidential Anti-Graft Commission.  The Court dismissed this argument on the basis that petitioners were given the opportunity to be heard in the course of PAGC’s investigation.  The essence of due process in administrative proceedings is the opportunity to explain one’s side or seek a reconsideration of the action or ruling complained of, and to submit any evidence a party may have in support of his defense. The demands of due process are sufficiently met when the parties are given the opportunity to be heard before judgment is rendered.  Petitioners here actively participated in the proceedings before PAGC where they were afforded the opportunity to explain their actions through their memoranda.  The essence of due process is the right to be heard and this evidently was afforded to them.  Theron V. Lacson v. The Hon. Executive Secretary, et al./Jaime R. Millan and Bernardo T. Viray v. The Hon. Executive Secretary, et al., G.R. No. 165399 & 165475/G.R. No. 165404 & 165489. May 30, 2011.

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September 2010 Philippine Supreme Court Decisions on Labor Law and Procedure

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

Labor Law

Compensable illness. The CBA provision states: “If a seafarer/officer, due to no fault of his own, suffers permanent disability as a result of an accident while serving on board or while traveling to or from the vessel on Company’s business or due to marine peril, and as a result, his ability to work is permanently reduced, totally or partially, the Company shall pay him a disability compensation.” “Accident” has been defined as: A fortuitous circumstance, event, or happening, an event happening without any human agency, or if happening wholly or partly through human agency, an event which under the circumstances is unusual and unexpected by the person to whom it happens. The Court holds that the snap on the back of respondent was not an accident, but an injury sustained by respondent from carrying the heavy basketful of fire hydrant caps. The injury cannot be said to be the result of an accident or fortuitous event. It resulted from the performance of a duty.  Although the disability of respondent was not caused by an accident, his disability is still compensable under the CBA provision: “A seafarer/officer who is disabled as a result of any injury, and who is assessed as less than 50% permanently disabled, but permanently unfit for further service at sea in any capacity, shall also be entitled to a 100% compensation.” NFD International Manning Agents, Inc./Barber Ship Management Ltd.  vs. Esmeraldo C. Illescas, G.R. No. 183054, September 29, 2010.

Dismissal; due process. SPO2 Roaquin is entitled to reinstatement since he was dismissed from the service without administrative due process. No one ever filed an administrative action against him in connection with the crime of which he was charged in court. At any rate, assuming that someone filed an administrative charge against Roaquin, still the law required the PNP to give him notice of such charge and the right to answer the same. The PNP gave him no chance to show why he should not be discharged nor does the record show that the PNP investigated him or conducted a summary proceeding to determine his liability in connection with the murder of which he was charged in court.  While the PNP may have validly suspended Roaquin from the service pending the adjudication of the criminal case against him, he is entitled, after his acquittal, to reinstatement and payment of the salaries, allowances, and other benefits withheld from him by reason of his discharge from the service. P/Chief Superintendent Roberto L. Calinisan, etc., et al. vs. SPO2 Reynaldo L. Roaquin, G.R. No. 159588, September 15, 2010.

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August 2010 Philippine Supreme Court Decisions on Labor Law and Procedure

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

Labor Law

Dismissal; abandonment. Time and again, the Supreme Court has held that abandonment is totally inconsistent with the immediate filing of a complaint for illegal dismissal, more so if the same is accompanied by a prayer for reinstatement. In the present case, however, petitioner filed his complaint more than one year after his alleged termination from employment. Moreover, petitioner did not ask for reinstatement in the complaint form, which he personally filled up and filed with the NLRC. The prayer for reinstatement is made only in the Position Paper that was later prepared by his counsel. This is an indication that petitioner never had the intention or desire to return to his job. Elpidio Calipay vs. National Labor Relations Commission, et al., G.R. No. 166411, August 3, 2010.

Dismissal; burden of proof. In termination cases, the employer has the burden of proving, by substantial evidence that the dismissal is for just cause. If the employer fails to discharge the burden of proof, the dismissal is deemed illegal. In the present case, BCPI failed to discharge its burden when it failed to present any evidence of the alleged fistfight, aside from a single statement, which was refuted by statements made by other witnesses and was found to be incredible by both the Labor Arbiter and the NLRC. Alex Gurango vs. Best Chemicals and Plastic, Inc., et al., G.R. No. 174593, August 25, 2010.

Dismissal; burden of proof. The law mandates that the burden of proving the validity of the termination of employment rests with the employer. Failure to discharge this evidentiary burden would necessarily mean that the dismissal was not justified and, therefore, illegal. Unsubstantiated suspicions, accusations, and conclusions of employers do not provide for legal justification for dismissing employees. In case of doubt, such cases should be resolved in favor of labor, pursuant to the social justice policy of labor laws and the Constitution. Century Canning Corporation, Ricardo T. Po, Jr., et al. vs. Vicente Randy R. Ramil, G.R. No. 171630, August 8, 2010.

Dismissal; due process. In termination proceedings of employees, procedural due process consists of the twin requirements of notice and hearing. The employer must furnish the employee with two written notices before the termination of employment can be effected: (1) the first apprises the employee of the particular acts or omissions for which his dismissal is sought; and (2) the second informs the employee of the employer’s decision to dismiss him. The requirement of a hearing is complied with as long as there was an opportunity to be heard, and not necessarily that an actual hearing was conducted. Pharmacia and Upjohn, Inc., et al. vs. Ricardo P. Albayda, Jr., G.R. No. 172724, August 23, 2010.

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July 2009 Philippine Supreme Court Decisions on Political Law

Here are selected July 2009 Philippine Supreme Court decisions on political law:

Constitutional Law

Double positions. The office of the Chairman of the Philippine National Red Cross is not a government office or an office in a government-owned or controlled corporation for purposes of the prohibition in Section 13, Article VI of the 1987 Constitution, which provides: “No Senator or Member of the House of Representatives may hold any other office or employment in the Government, or any subdivision, agency, or instrumentality thereof, including government-owned or controlled corporations or their subsidiaries, during his term without forfeiting his seat. Neither shall he be appointed to any office which may have been created or the emoluments thereof increased during the term for which he was elected.”  Dante Liban, et al. vs. Richard J. Gordon, G.R. No. 175352, July 15, 2009.

Illegal search. Even assuming that petitioner or any lawful occupant of the house was not present when the search was conducted, the search was done in the presence of at least two witnesses of sufficient age and discretion residing in the same locality. Manalo was the barangay chairman of the place while Velasco was petitioner’s employee. Petitioner herself signed the certification of orderly search when she arrived at her residence. Clearly, the requirements of Section 8, Rule 126 of the Rules of Court were complied with by the police authorities who conducted the search. Further, petitioner failed to substantiate her allegation that she was just forced to sign the search warrant, inventory receipt, and the certificate of orderly search. In fact, the records show that she signed these documents together with three other persons, including the barangay chairman who could have duly noted if petitioner was really forced to sign the documents against her will.

Articles which are the product of unreasonable searches and seizures are inadmissible as evidence pursuant to Article III, Section 3(2) of the Constitution. However, in this case, the Supreme Court sustained the validity of the search conducted in petitioner’s residence and, thus, the articles seized during the search are admissible in evidence against petitioner.  Rosario Panuncio  vs. People of the Philippines, G.R. No. 165678, July 17, 2009.

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April 2009 Decisions on Commercial, Labor and Tax Laws

Here are selected April 2009 decisions of the Supreme Court on commercial, labor and tax laws:

Commercial Law

BOT;  public bidding. In a situation where there is no other competitive bid submitted for the BOT project, that project would be awarded to the original proponent thereof.  However, when there are competitive bids submitted, the original proponent must be able to match the most advantageous or lowest bid; only when it is able to do so will the original proponent enjoy the preferential right to the award of the project over the other bidder.  These are the general circumstances covered by Section 4-A of Republic Act No. 6957, as amended. In the instant case, AEDC may be the original proponent of the NAIA IPT III Project; however, the Pre-Qualification Bids and Awards Committee (PBAC) also found the People’s Air Cargo & Warehousing Co., Inc. Consortium (Paircargo), the predecessor of PIATCO, to be a qualified bidder for the project.  Upon consideration of the bid of Paircargo/PIATCO, the PBAC found the same to be far more advantageous than the original offer of AEDC.  It is already an established fact in Agan that AEDC failed to match the more advantageous proposal submitted by PIATCO by the time the 30-day working period expired on 28 November 1996; and since it did not exercise its right to match the most advantageous proposal within the prescribed period, it cannot assert its right to be awarded the project. Asia’s Emerging Dragon Corp. vs. DOTC, et al./Republic of the Philippines etc. et al. vs. Hon. CA, et al., G.R. No. 169914/G.R. No. 174166,  April 7, 2009.

Dividends. Dividends are payable to the stockholders of record as of the date of the declaration of dividends or holders of record on a certain future date, as the case may be, unless the parties have agreed otherwise. A transfer of shares which is not recorded in the books of the corporation is valid only as between the parties; hence, the transferor has the right to dividends as against the corporation without notice of transfer but it serves as trustee of the real owner of the dividends, subject to the contract between the transferor and transferee as to who is entitled to receive the dividends. Imelda O. Cojuangco, Prime Holdings, Inc., and the Estate of Ramon U. Cojuangco vs. Sandiganbayan, Republic of the Philippines and the Sheriff of Sandiganbayan, G.R. No. 183278, April 24, 2009.

Holdover. As a general rule, officers and directors of a corporation hold over after the expiration of their terms until such time as their successors are elected or appointed. Sec. 23 of the Corporation Code contains a provision to this effect. The holdover doctrine has, to be sure, a purpose which is at once legal as it is practical. It accords validity to what would otherwise be deemed as dubious corporate acts and gives continuity to a corporate enterprise in its relation to outsiders.

Authorities are almost unanimous that one who continues with the discharge of the functions of an office after the expiration of his or her legal term––no successor having, in the meantime, been appointed or chosen––is commonly regarded as a de factoofficer, even where no provision is made by law for his holding over and there is nothing to indicate the contrary. By fiction of law, the acts of such de facto officer are considered valid and effective. Dr. Hans Christian M. Señeres vs. Commission on Elections and Melquiades A. Robles, G.R. No. 178678, April 16, 2009.

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