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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
March-2006 Jurisprudence                 

  • A.C. No. 5417 - AMADOR Z. MALHABOUR v. ATTY. ALBERTI R. SARMIENTO

  • A.C. No. 5921 - JUDGE UBALDINO A. LACUROM v. ATTY. ELLIS F. JACOBA, ET AL.

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  • A.C. No. 7023 - BUN SIONG YAO v. ATTY. LEONARDO A. AURELIO

  • A.M. No. 06-2-43-MTC - RE: FINANCIAL AUDIT ON THE BOOKS OF ACCOUNT OF MS. LAURA D. DELANTAR ETC.

  • A.M. No. 05-4-213-RTC - REPORT ON THE JUDICIAL AUDIT ETC.

  • A.M. No. 06-2-96-RTC - RE: ABSENCE WITHOUT OFFICIAL LEAVE OF MR. BASRI A. ABBAS ETC.

  • A.M. No. 2005-20-SC - RE: VIOLATION OF ADMINISTRATIVE CIRCULAR NO. 14-2002 BY MR. GEMINIANO P. PEREZ

  • A.M. No. 2005-27-SC - RE: DROPPING FROM THE ROLLS OF MS. CAROLYN C. ARCANGE

  • A.M. No. MTJ-04-1542 - ATTY. VICENTE B. DE ASIS v. JUDGE ARTURO G. DORONILA ETC.

  • A.M. No. MTJ-06-1626 - JULIANITO M. SALVADOR v. JUDGE MANUEL Q. LIMSIACO, JR., ETC.

  • A.M. No. MTJ-06-1630 - ESTRELLA A. BARBA v. JUDGE ROSITA B. SALAZAR, ET AL.

  • A.M. No. P-03-1684 - PETER T. DONTON VS. EDGARDO S. LORIA ETC.

  • A.M. No. P-05-2050 - OFFICE OF THE COURT ADMINISTRATOR v. ATTY. MARTA T. CUNANAN

  • A.M. No. P-06-2131 - ROSALINDA PESONGCO v. ERNESTO B. ESTOYA, ET AL.

  • A.M. No. P-06-2133 - RICARDO A. MANAYSAY v. PEPITO A. SAMANIEGO ETC.

  • A.M. No. RTJ-02-1719 - ATTY. JOSE B. TIONGCO v. JUDGE ADRIANO S. SAVILLO ETC.

  • A.M. No. RTJ-05-1966 - IMELDA S. ENRIQUEZ v. JUDGE ANACLETO L. CAMINADE

  • A.M. No. RTJ-05-1893 - OFFICE OF THE COURT ADMINISTRATOR v. HON. MARIETTA A. LEGASPI ETC.

  • G.R. No. 126980 - SALLY V. BELLOSILLO v. THE BOARD OF GOVERNORS OF THE INTEGRATED BAR OF THE PHILIPPINES, ET AL.

  • G.R. No. 129247 & 136270 - SPS. ARSENIO AND NIEVES S. REYES v. SOLEMAR DEVELOPMENT CORPORATION

  • G.R. No. 129406 - REPUBLIC OF THE PHILIPPINES v. SANDIGANBAYAN

  • A.M. No. RTJ-99-1460 - LUZ ARRIEGO v. JUDGE FLORENTINO V. FLORO, JR.

  • G.R. No. 134473 - JUAN DE DIOS CARLOS v. THE HONORABLE COURT OF APPEALS, ET AL.

  • G.R. No. 133168 - REPUBLIC OF THE PHILIPPINES v. BENJAMIN GUERRERO

  • G.R. No. 135350 - THE PRESIDENTIAL AD HOC FACT-FINDING COMMITTEE ETC. v. THE HONORABLE OMBUDSMAN, ET AL.

  • G.R. No. 135803 - O.B. JOVENIR CONSTRUCTION, ET AL. v. MACAMIR REALTY AND DEVELOPMENT CORPORATION, ET AL.

  • G.R. No. 136388 - ANICIA RAMOS-ANDAN v. PEOPLE OF THE PHILIPPINES

  • G.R. No. 139460 - KOREA EXCHANGE BANK v. HONORABLE ROGELIO C. GONZALES, ET AL.

  • G.R. No. 139676 - REPUBLIC OF THE PHILIPPINES v. NORMA CUISON-MELGAR, ET AL.

  • G.R. No. 141371 - EDNA ABAD, ET AL. v. ROSELLE CINEMA, ET AL.

  • G.R. No. 141993 - NARCISA AVILA, ET AL. v. SPS. BENJAMIN BARABAT AND JOVITA BARABAT

  • G.R. No. 142509 - JOSE ALEMANIA BUATIS, JR. v. THE PEOPLE OF THE PHILIPPINES

  • G.R. No. 142669 - PEZA, ETC. v. ABRAHAM B. BORRETA, ET AL.

  • G.R. No. 142830 - WILLIAM GOLANGCO CONSTRUCTION CORPORATION v. PHILIPPINE COMMERCIAL INTERNATIONAL BANK

  • G.R. No. 143027 - ENCARNACION L. CUIZON, ET AL. v. MERCEDES C. REMOTO, ET AL.

  • G.R. No. 145213 - JIMMY T. GO ETC. v. HON. ZEUS C. ABROGAR, ET AL.

  • G.R. No. 144449 - FRANCISCO T. JIMENEZ v. COURT OF APPEALS, ET AL.

  • G.R. No. 145328 - EDUARDO F. HERNANDEZ, ET AL. v. NATIONAL POWER CORPORATION

  • G.R. No. 145399 - MANILA ELECTRIC COMPANY (MERALCO), v. ENERGY REGULATORY BOARD (ERB), ET AL.

  • G.R. No. 145564 - CORAZON G. BUNTAG v. NIDA PANA, ET AL.

  • G.R. No. 146021 - BANK OF THE PHILIPPINE ISLANDS v. ELIZABETH G. SARMIENTO

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  • G.R. No. 146744 - ROBERT G. DE GALICIA v. MELY MERCADO

  • G.R. No. 147011 - HEIRS OF SPS. EUGENIO NATONTON, ET AL. v. SPS. EULOGIO MAGAWAY ETC.

  • G.R. No. 147058 - DAVAO LIGHT & POWER CO., INC., v. HON. JUDGE OF THE REGIONAL TRIAL COURT ET AL.

  • G.R. No. 147143 - HYATT INDUSTRIAL MANUFACTURING CORP., ET AL. v. LEY CONSTRUCTION AND DEVELOPMENT CORP., ET AL.

  • G.R. No. 147212 - THE GOVERNMENT OF THE PHILIPPINES, ETC. v. SALVADOR WEE

  • G.R. No. 147275 - VICENTE ONGKEKO v. BPI EXPRESS CARD CORPORATION

  • G.R. No. 147902 - SPS. VICENTE YU AND DEMETRIA LEE-YU v. PHILIPPINE COMMERCIAL INTERNATIONAL BANK

  • G.R. No. 147970 - PCL INDUSTRIES MANUFACTURING CORPORATION v. THE COURT OF APPEALS

  • G.R. No. 148089 - JAIME M. BARRIOS, ET AL. v. EMPLOYEES' COMPENSATION COMMISSION

  • G.R. No. 149266 - BENJAMIN AND ROSENDA ESPINO v. CARMITA LEGARDA

  • G.R. No. 149145 - ROMAN CATHOLIC BISHOP OF KALIBO, AKLAN ETC. v. MUNICIPALITY OF BURUANGA, AKLAN ETC.

  • G.R. No. 149652 - EDUARDO L. BAXINELA v. THE PEOPLE OF THE PHILIPPINES

  • G.R. No. 149840-41 - SPS. FRANCISCO AND RUBY REYES v. BPI FAMILY SAVINGS BANK, INC., ET AL.

  • G.R. No. 150175 - ERLINDA PILAPIL, ET AL. v. HEIRS OF MAXIMINO R. BRIONES, ET AL.

  • G.R. No. 150187 - CARMELITA GUANGA v. ARTEMIO DELA CRUZ, ET AL.

  • G.R. No. 150198 - DOMINADOR S. PEREZ v. THE MEDICAL CITY GENERAL HOSPITAL, ET AL.

  • G.R. No. 150866 - MANUEL MALLARI, ET AL. v. REBECCA ALSOL

  • G.R. No. 150926 - ANITA CHUA v. PEOPLE OF THE PHILIPPINES

  • G.R. No. 151098 - ERLINDA GAJUDO, ET AL. v. TRADERS ROYAL BANK

  • G.R. No. 152040 - MARIKINA AUTO LINE TRANSPORT CORPORATION, ET AL. v. PEOPLE OF THE PHILIPPINES, ET AL.

  • G.R. No. 152082 - RAMON R. OLBES, ET AL. v. CHINA BANKING CORPORATION

  • G.R. No. 152616 - PHILEMPLOY SERVICES AND RESOURCES, INC. v. ANITA RODRIGUEZ

  • G.R. No. 153817 - NOLITO D. SOLMAYOR, ET AL. v. ANTONIO L. ARROYO

  • G.R. No. 154101 - EJR CRAFTS CORPORATION v. HON. COURT OF APPEALS, ET AL.

  • G.R. No. 155403 - HONORIO TORRES, JR. v. THE HONORABLE ANTONIO M. ESTEVES, ET AL.

  • G.R. No. 155741 - BARTOLOME C. PELAYO v. AAREMA SHIPPING, ET AL.

  • G.R. No. 157171 - ARSENIA B. GARCIA v. HONORABLE COURT OF APPEALS, ET AL.

  • G.R. No. 155800 - LEONILO ANTONIO v. MARIE IVONNE F. REYES

  • G.R. No. 157557 - REPUBLIC OF THE PHILIPPINES (CIVIL AERONAUTICS DMINISTRATION) v. RAMON YU, ET AL.

  • G.R. No. 157492 - NAPOCOR ETC. v. THE NATIONAL POWER CORPORATION (NPC), ET AL.

  • G.R. No. 157877 - COMMISSIONER ON HIGHER EDUCATION v. ROSA F. MERCADO

  • G.R. No. 157882 - DIDIPIO EARTH-SAVERS' MULTI-PURPOSE ASSOCIATION, INC. ET AL. v. ELISEA GOZUN, ET AL.

  • G.R. No. 157954 - PAZ GALVEZ, ET AL. v. HON. COURT OF APPEALS, ET AL.

  • G.R. No. 158763 - JOSE C. MIRANDA, ET AL. v. VIRGILIO M. TULIAO.

  • G.R. No. 159119 - ATTY. ANDREA UY v. AMALIA A. BUENO

  • G.R. No. 159938 - SHANGRI-LA INTERNATIONAL HOTEL MANAGEMENT, LTD., ET AL. v. DEVELOPERS GROUP OF COMPANIES, INC.

  • G.R. No. 160509 - MERCURY DRUG CORPORATION v. ZENAIDA G. SERRANO

  • G.R. No. 160854 - BIG AA MANUFACTURER v. EUTIQUIO ANTONIO, ET AL.

  • G.R. No. 161077 - SAMSON B. BEDRUZ, ET AL. v. OFFICE OF THE OMBUDSMAN, ETC.

  • G.R. No. 161110 - PAL EMPLOYEES SAVINGS AND LOAN ASSOCIATION, INC. v. PHILIPPINE AIRLINES, INC. ET AL.

  • G.R. No. 161877 - ARIEL C. SANTOS v. PEOPLE OF THE PHILIPPINES, ET AL.

  • G.R. No. 162015 - THE CITY GOVERNMENT OF QUEZON CITY v. BAYAN TELECOMMUNICATIONS, INC.

  • G.R. No. 162045 - SPS. MARIO ONG AND MARIA CARMELITA ONG, ET AL. v. SPS. ERGELIA OLASIMAN, ET AL.

  • G.R. No. 162064 - SONNY ZARRAGA v. PEOPLE OF THE PHILIPPINES

  • G.R. No. 162748-50 - PEOPLE OF THE PHILIPPINES v. SANDIGANBAYAN, ET AL.

  • G.R. No. 162233 - RONALDO B. CASIMIRO, ET AL. v. STERN REAL ESTATE INC., ET AL.

  • G.R. No. 162957 - UNITED KIMBERLY-CLARK EMPLOYEES UNION ETC. v. KIMBERLY - CLARK PHILIPPINES, INC.

  • G.R. No. 163400 - HILARIO P. SORIANO v. HON. CAESAR A. CASANOVA, ET AL.

  • G.R. No. 163687 - GAUDENCIO VALERIO, ET AL. v. VICENTA REFRESCA, ET AL.

  • G.R. No. 163429 - JOHNNY JOSEFA v. LOURDES SAN BUENAVENTURA, ET AL.

  • G.R. No. 163751 - ANECITO CALIMPONG, ET AL. v. HEIRS OF FILOMENA GUMELA ETC.

  • G.R. No. 163782 and G.R. NO. 163881 - METRO TRANSIT ORGANIZATION, INC. v. COURT OF APPEALS, ET AL

  • G.R. No. 163986 - ROMULO A. DELES v. HON. PEPITO GELLADA, ET AL.

  • G.R. No. 164453 - JESUS CALDO v. VICTORIA CALDO-ATIENZA, ET AL.

  • G.R. No. 164518 and G.R. NO. 164965 - INDUSTRIAL TIMBER CORPORATION, ET AL. v. VIRGILIO ABABON, ET AL.

  • G.R. No. 164702 - PARTIDO NG MANGGAGAWA (PM), ET AL. v. THE HON. COMMISSION ON ELECTIONS (COMELEC), ET AL.

  • G.R. No. 164915 - ERIC JONATHAN YU v. CAROLINE T. YU

  • G.R. No. 165088 - POTENCIANO RAMIREZ v. MA. CECILIA RAMIREZ

  • G.R. No. 165501 - SPS. JESUS AND EVANGELINE PASCO v. PISON-ARCEO AGRICULTURAL AND DEVELOPMENT CORPORATION

  • G.R. No. 165476 - AGRIPINO V. MOLINA v. PACIFIC PLANS, INC.

  • G.R. No. 165648 - EASTLAND CONSTRUCTION & DEVELOPMENT CORPORATION v. BENEDICTA MORTEL

  • G.R. No. 165545 - SOCIAL SECURITY SYSTEM v. TERESITA JARQUE VDA. DE BAILON

  • G.R. No. 165987 - JOSHUA S. ALFELOR, ET AL. v. JOSEFINA M. HALASAN, ET AL.

  • G.R. No. 166046 - MARGARITO C. SULIGUIN v. THE COMMISSION ON ELECTIONS, ET AL.

  • G.R. No. 166116 - OFFICE OF THE OMBUDSMAN v. FLORENTINA SANTOS

  • G.R. No. 166876 - ARTEMIO INIEGO v. THE HONORABLE JUDGE GUILLERMO G. PURGANAN, ET AL.

  • G.R. No. 167211 - IN THE MATTER OF THE PETITION FOR THE HABEAS CORPUS OF ATTY. FERNANDO ARGUELLES, JR., ET AL. v. MAJ. GEN. JOSE BALAJADIA, JR. ETC.

  • G.R. No. 166647 - PAG-ASA STEEL WORKS, INC. v. CA, ET AL.

  • G.R. No. 167716 - PREMIERE DEVELOPMENT BANK v. ELSIE ESCUDERO MANTAL

  • G.R. No. 167594 - MICHAEL F. PLANAS v. COMMISSION ON ELECTIONS, ET AL.

  • G.R. No. 167979 - WILSON S. UY, ETC. v. THE HON. COURT OF APPEALS, ET AL.

  • G.R. No. 168809 - EDWARD ROCO TAN, ET AL. v. BENIGNO DE LA VEGA, ET AL.

  • G.R. No. 168877 - REPUBLIC OF THE PHILIPPINES v. MICHAEL A. HONG

  • G.R. No. 169517 - ROGELIO A. TAN v. BENEDICTO M. BALAJADIA

  • G.R. No. 169632 - UNIVERSITY OF SAN AGUSTIN EMPLOYEES' UNION-FFW (USAEU-FFW), ET AL. v. THE COURT OF APPEALS, ET AL.

  • G.R. No. 170096 - RICARDO SANTOS, ET AL v. ILUMINADA CRUZ, ET AL.

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    G.R. No. 164518 and G.R. NO. 164965 - INDUSTRIAL TIMBER CORPORATION, ET AL. v. VIRGILIO ABABON, ET AL.

      G.R. No. 164518 and G.R. NO. 164965 - INDUSTRIAL TIMBER CORPORATION, ET AL. v. VIRGILIO ABABON, ET AL.

    PHILIPPINE SUPREME COURT DECISIONS

    FIRST DIVISION

    [G.R. NO. 164518 : March 30, 2006]

    INDUSTRIAL TIMBER CORPORATION, INDUSTRIAL PLYWOOD GROUP CORPORATION, TOMAS TANGSOC, JR., LORENZO TANGSOC and TOMAS TAN, Petitioners, v. VIRGILIO ABABON, IGNACIO ABACAJEN, ANGELINA ABAY-ABAY, EDITH ABREA, SAMUEL ABREA, BIENVENIDO ACILO, RODRIGO ACILO, VICTOR ACILO, ARTURO ADVINCULA, GERTRUDES AMPARO, VIRGILIO ANTONIO, MILA ARQUITA, PRUDENCIO ARQUITA, ALBERT ATON, WARLITA AUTIDA, ALICIA AWITAN, LEOPOLDO AYATON, ARTURO BALBOTEN, DANILO BANATE, LOLITA BATAN, RAMIL BUTALON, CARMILITA CAINGLES, VICENTE CAHARIAN, BENEDICTA CAJIPE, FELIPE CALLANO, ALFREDO CARILLO, NILA CARILLO, ALGER CORBETA, GREGORIO DABALOS, TERESITA DABALOS, VENERANDO DALAUTA, RICARDO DANGCULOS, MONTANO DAPROSA, LUISITO DIAZ, FELIZARDO DUMULAO, EDITHA DUMANON, ALFREDO FAELNAR, RAUL FORTUN, MAXIMO GALLA, ANGELES GALUPO, PERFECTO GAMBE, VERGINITA GANGCA, RUPERTO GORGONIO, ROMEO HERRERO, SERGIO HORO-HORO, FRANCISCO IBARRA, ABRAHAM JALE, DANDY LABITAD, ANTONINA LAMBANG, ERNESTO LAUSA, VICTORIA LOOD, NEMESIO LOPE, JR., ESCARLITO MADLOS, MARCOS MAKINANO, REMEGIO MAKINANO, VICENTE MAKINANO, REYNALDO MASUHAY, HELEN MARATAS, ELIZABETH MENDOZA, GUILBERTA MONTEROSO, GILDA NAVALTA, PILAR NAVARRO, SIMPORIANO NUÑEZ, JR., ELISEO ORONGAN, ARMANDO OROPA, ASUNCION OROPA, JOSE EDWIN OROPA, BALDEMAR PAGALAN, BARTOLOME PAGALAN, DAMASO PALOMA, MANALO PLAZA, JEREMIAS PELAEZ, FRANCISCO PICARDAL, HERMINIA PUBLICO, ROMULO QUINTOS, FIDEL QUITA, FELICIANO RANADA, RODOLFO RARU, LEAN CILDRIC RODRIGUEZ, SAMUEL SAROMINES, NATIVIDAD SIGNAR, CHERRIE SON, SAMUEL TAGUPA, VICTOR TAGUPA, BRIGIDA TABANAO, PEDRO TABANAO, ROBERTO TABANAO, MARIA TAN, RONNIE TAN, TOLENTINO TEE, ROGELIO TAMADA, MINDA TUMAOB and ROBERTO TUTOR, Respondents.

    [G.R. NO. 164965 : March 30, 2006]

    VIRGILIO ABABON, IGNACIO ABACAJEN, ANGELINA ABAY-ABAY, EDITH ABREA, SAMUEL ABREA, BIENVENIDO ACILO, RODRIGO ACILO, VICTOR ACILO, ARTURO ADVINCULA, GERTRUDES AMPARO, MILA ARQUITA, VIRGILIO ANTONIO, PRUDENCIO ARQUITA, ALBERT ATON, WARLITA AUDITA, ALICIA AWITAN, LEOPOLDO AYATON, ARTURO BALBOTEN, DANILO BANATE, LOLITA BATAN, RAMIL BUTALON, CARMELITA CAINGLES, VICENTE CAHARIAN, BENEDICTA CAJIPE, FELIPE CALLANO, ALFREDO CARILLO, NILA CARILLO, ALGIER CORBETA, GREGORIO DABALOS, TERESITA DABALOS, VENERANDO DALAUTA, RICARDO DANGCULOS, MONTANO DAPROSA, LUISITO DIAZ, FELIZARDO DUMULAO, EDITHA DUMANON, ALFREDO FAELNAR, RAUL FORTUN, MAXIMO GALLA, ANGELES GALUPO, PERFECTO GAMBE, VIRGINITA GANGCA, RUPERTO GORGONIO, ROMEO HERRERO, SERGIO HOR-HORO, FRANCISCO IBARRA, ABRAHAM JALE, DANDY LABITAD, ANTONINA LAMBANG, ERNESTO LAUSA, VICTORIA LOOD, NEMESIO LOPE, JR., ESCARLITO MADLOS, MARCOS MAKINANO, REMEGIO MAKINANO, VICENTE MAKINANO, REYNALDO MAHUSAY, HELEN MARATAS, ELIZABETH MENDOZA, GUILBERTA MONTEROSO, GILDA NAVALTA, PILAR NAVARRO, SIMPORIANO NUÑEZ, JR., ELISEO ORONGAN, ARMANDO OROPA, ASUNCION OROPA, JOSE EDWIN OROPA, BALDEMAR PAGALAN, BARTOLOME PAGALAN, DAMASO PALOMA, MANALO PLAZA, JEREMIAS PELAEZ, FRANCISCO PICARDAL, HERMINIA PUBLICO, ROMULO QUINTOS, FIDEL QUITA, FELICIANO RANADA, RODOLFO RARU, LEAN CILDRIC RODRIGUEZ, SAMUEL SAROMINES, NATIVIDAD SIGNAR, CHERRIE SON, SAMUEL TAGUPA, VICTOR TAGUPA, BRIGIDA TABANAO, PEDRO TABANAO, ROBERTO TABANAO, MARIA TAN, RONNIE TAN, TOLENTINO TEE, ROGELIO TAMADA, MINDA TUMAOB, and ROBERTO TUTOR, Petitioners, v. THE HONORABLE COURT OF APPEALS, INDUSTRIAL TIMBER CORPORATION, INDUSTRIAL PLYWOOD GROUP CORPORATION, TOMAS TANGSOC, JR., LORENZO TANGSOC and TOMAS TAN, Respondents.

    R E S O L U T I O N

    YNARES-SANTIAGO, J.:

    On January 25, 2006, the Court rendered judgment disposing of the case as follows:

    WHEREFORE, in view of the foregoing, the October 21, 2002 Decision of the Court of Appeals in CA-G.R. SP No. 51966, which set aside the May 24, 1995 Decision of the NLRC, as well as the July 16, 2004 Resolution denying ITC's motion for reconsideration, are hereby REVERSED. The May 24, 1995 Decision of the NLRC reinstating the decision of the Labor Arbiter finding the closure or cessation of ITC's business valid, is AFFIRMED with the MODIFICATIONS that ITC is ordered to pay separation pay equivalent to one month pay or at least one-half month pay for every year of service, whichever is higher, and P50,000.00 as nominal damages to each employee

    SO ORDERED.1

    On March 14, 2006, respondents in G.R. No. 164518 who are also petitioners in G.R. No. 164965 filed a Motion for Reconsideration seeking to set aside the above-stated Decision and reinstate the October 21, 2002 Decision of the Court of Appeals, with the modification that they be awarded full backwages, with the additional award of P50,000.00 as nominal damages for each worker.

    They insist that the holding in International Timber Corporation v. National Labor Relations Commission2 that the closure of ITC's Butuan Plant was valid should not have been applied in the instant cases which pertain to ITC's Stanply Plant. They further claim that the findings by the Labor Arbiter that there was a shortage of raw materials; that the wood processing plaint permit has expired; that the lease contract with IPGC was terminated; and that ITC and IPGC were not business conduits, were all debunked by the NLRC.

    The arguments raised have been amply discussed; at any rate, they are inconsequential as to affect the assailed Decision.

    On the other hand, petitioners in G.R. No. 164518 who are also respondents in G.R. No. 164965 also filed a Motion for Partial Reconsideration seeking to delete or reduce the nominal damages awarded to each employee, considering that since August 17, 1990 it had ceased operation of its business and that the award involves a huge amount considering that there are 97 workers.3

    While we ruled in this case that the sanction should be stiffer in a dismissal based on authorized cause where the employer failed to comply with the notice requirement than a dismissal based on just cause with the same procedural infirmity, however, in instances where the execution of a decision becomes impossible, unjust, or too burdensome, modification of the decision becomes necessary in order to harmonize the disposition with the prevailing circumstances.

    In the determination of the amount of nominal damages which is addressed to the sound discretion of the court, several factors are taken into account: (1) the authorized cause invoked, whether it was a retrenchment or a closure or cessation of operation of the establishment due to serious business losses or financial reverses or otherwise; (2) the number of employees to be awarded; (3) the capacity of the employers to satisfy the awards, taken into account their prevailing financial status as borne by the records; (4) the employer's grant of other termination benefits in favor of the employees; and (5) whether there was a bona fide attempt to comply with the notice requirements as opposed to giving no notice at all.

    In the case at bar, there was valid authorized cause considering the closure or cessation of ITC's business which was done in good faith and due to circumstances beyond ITC's control. Moreover, ITC had ceased to generate any income since its closure on August 17, 1990. Several months prior to the closure, ITC experienced diminished income due to high production costs, erratic supply of raw materials, depressed prices, and poor market conditions for its wood products. It appears that ITC had given its employees all benefits in accord with the CBA upon their termination.

    Thus, considering the circumstances obtaining in the case at bar, we deem it wise and just to reduce the amount of nominal damages to be awarded for each employee to P10,000.00 each instead of P50,000.00 each.

    WHEREFORE, premises considered, the Motion for Reconsideration of respondents in G.R. No. 164518 who are also petitioners in G.R. No. 164965 is DENIED. The Motion for Partial Reconsideration of petitioners in G.R. No. 164518 who are also respondents in G.R. No. 164965 is GRANTED. The amount of nominal damages awarded to each employee is reduced from P50,000.00 to P10,000.00.

    SO ORDERED.

    Endnotes:


    1 Rollo (G.R No. 164518), p. 279.

    2 339 Phil. 395 (1997).

    3 Id. at 281-283.

    G.R. No. 164518 and G.R. NO. 164965 - INDUSTRIAL TIMBER CORPORATION, ET AL. v. VIRGILIO ABABON, ET AL.




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