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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
 

   
July-2009 Jurisprudence                 

  • A.C. No. 6121 - TRINIDAD H. CAMARA, ET AL. v. ATTY. OSCAR AMONDY REYES

  • A.C. No. 7199 Formerly CBD 04-1386 - Foodsphere, Inc. v. Atty. Melanio L. Mauricio, Jr.

  • A.C. No. 7815 - Dolores C. Belleza v. Atty. Alan S. Macasa

  • A.C. No. 8243 - Rolando B. Pacana, Jr. v. Atty. Maricel Pascual-Lopez

  • A.C. No. 8252 - Natividad Uy v. Atty. Braulio RG Tansisin

  • A.M. No. 02-8-207-MTCC - Re: Report on the Judicial Audit Conducted in the Municipal Trial Court in Cities, Branch 2, Cagayan De Oro City

  • A.M. No. 03-7-170-MCTC - Re: Report on the Judicial Audit in Municipal Circuit Trial Court, Jiminez-Sinacaban, Misamis Occidental/ Judge Pricilla Hernandez

  • A.M. No. 08-3-73-MeTC - Re: Report on the Judicial Audit Conducted at the Metropolitan Trial Court, Branch 55, Malabon City

  • A.M. No. 08-4-4-SC - Re: Request of the Police Director General Avelino I. Razon for authority to delegate the endorsement of application for search warrant

  • A.M. No. 2008-24-SC - Re: Fighting incident between two(2) SC shutle bus drivers, namely, Messrs. Edilbert L. Idulsa and Ross C. Romero

  • A.M. No. MTJ-06-1651 - Prosecutor Robert M. Visbal v. Judge Wenceslao B. Vanilla, MTCC, Br. 2, Tacloban City

  • A.M. No. MTJ-08-1709 Formerly A.M. OCA IPI No. 02-1225-MTJ - Lanie Cervantes v. Judge Heriberto M. Pangilinan, and Clerk of Court III Carmencita P. Baloco, etc.

  • A.M. No. P-03-1677 & A.M. No. P-07-2317 - Liberty M. Toledo v. Liza Perez, Court Stenographer III, Office of the Clerk of Court, RTC, Manila

  • A.M. No. P-06-2212 - Geronimo Francisco v. Sebastian Bolivar, etc.

  • A.M. No. P-06-2217 Formerly OCA IPI No. 06-2375-P - Concerned Employees of the Municipal Trial Court of Meycauayan, Bulacan v. Larizza Paguio-Bacani, Branch COC II, MTC, Meycauayan, Bulacan

  • A.M. No. P-06-2219 Formerly A.M. No. 06-7-392-RTC - Office of the Court Administrator v. Officer-in-charge and Legal Researcher Nilda Cinco, RTC, Br. 28, Catbalogan, Samar

  • A.M. No. P-06-2245 Formerly OCA IPI NO. 06-2373-P and A.M. NO. MTJ-09-1741 Formerly OCA IPI No. 06-1853-MTJ : July 31, 2009 - Judge Jaime L. Dojillo, Jr. v. Concepcion Z. Ching, etc.

  • A.M. No. P-08-2578 Formerly OCA I.P.I. No. 08-2924-P - Gaspar R. Dutosme v. Atty. Rey D. Caayona

  • A.M. No. P-09-2644 Formerly OCA IPI No. 08-2787-P - Edgardo A. Quilo v. Rogelio G. Jundarino, Sheriff III, Metropolitan Trail Court, Branch 19, Manila

  • A.M. No. P-08-2132 Formerly A.M. OCA IPI No. 07-2549-RTJ - Atty. Florencio Alay Binalay v. Judge Elias O. Lelina, Jr.

  • A.M. No. RTJ-08-2158 Formerly OCA IPI No. 04-2018-RTJ - Alfredo Favor v. Judge Cesar O. Untalan, RTC, Branch 149, Makati City

  • A.M. No. RTJ-09-2175 - Venancio Inonog v. Judge Francisco B. Ibay, Presiding Judge, Regional Trial Court, Branch 135, Makati City

  • A.M. No. RTJ-09-2183 Formerly A.M. OCA IPI No. 05-2346-RTJ - Concerned Lawyers of Bulacan v. Presiding Judge Pornillos, RTC Br. 10, Malolos City.

  • A.M. No. RTJ-09-2186 Formerly A.M. OCA-IPI No. 03-1893-RTJ and A.M. No. RTJ-09-2187 Formerly A.M. OCA IPI No. 04-1993-RTJ - Atty. Nelson T. Antolin, et al. v. Judge Alex L. Quiroz, et al.

  • G.R. No. 141888 - Melba Rose R. Sasot v. Amado Yuson, et al.

  • G.R. No. 147957 - Privatization Management Office v. Legaspi Towers 300, Inc.

  • G.R. No. 148600 - Atty. Emmanuel Pontejos v. Hon. Aniano Desierto and Restituto Aquino

  • G.R. No. 149763 - Eduardo J. Mari o, Jr. et al. v. Gil Y. Gamilla, et al.

  • G.R. No. 150228 - Bank of America NT & SA v. Philippine Racing Club

  • G.R. No. 151424 - Eagle Realty Corporation v. Republic of the Philippines, etc., et al.

  • G.R. No. 151973 - National Power Corporation v. Sps. Lorenzo L. Laohoo, et al.

  • G.R. No. 152263 - Arthur Zarate v. Regional Trial Court, Br. Gingoog City, Misamis Oriental

  • G.R. No. 152496 - Sps. German Anunciacion, et al. v. Perpetua M. Bocanegra, et al.

  • G.R. No. 155491 - Smart Communications, Inc., v. The City of Davao, represented by its Mayor Hon. Rodrigo Duterte and the Sangguniang Panlunsod of Davao City

  • G.R. No. 156946 - Secretary of Finance v. Oro Maura Shipping Lines

  • G.R. No. 157607 - Land Bank of the Philippines v. Rowena O. Paden

  • G.R. No. 159131 - Heirs of Toribio Waga, represented by Merba A. Waga v. Isabelo Sacabin

  • G.R. No. 159358 - Eureka Personnel and Management Corp., and Nari K. Gidwani v. The Hon. National Labor Relations Commission, et al.

  • G.R. No. 159624 - Cebu Mactan Members Center, Inc. v. Masahiro Tsukahara

  • G.R. NOS. 160243-52 - Romeo D. Lonzanida v. People of the Philippines

  • G.R. No. 160265 - Nely T. Co. v. People of the Philippines, et al.

  • G.R. No. 160380 - Sps. Eduardo & Leticia Monta o v. Rosalina Francisco, et al

  • G.R. No. 160772 - Hilario P. Soriano v. Ombudsman Simeon V. Marcelo, et al.

  • G.R. No. 161051 - Compania General de Tabacos De Filipinas and La Flor De La Isabela, inc. v. Hon. Virgilio A. Sevandal, et al.

  • G.R. No. 161062 - Republic of the Philippines v. Ferventino U, Tango

  • G.R. No. 161238 - Heirs of Jose G. Santiago, namely: Julia G. Santiago, et al. v. Aurea G. Santiago, et al.

  • G.R. No. 161748 - Spouses Francisco and Betty Wong and Spouses Joaquin and Lolita Wong v. City of Iloilo, et al.

  • G.R. No. 162074 - Cecilleville Realty and Service Corporation v. Spouses Tito Acu a, et al.

  • G.R. No. 162540 - Gemma T. Jacinto v. People of the Philippines

  • G.R. No. 162721 - Petronila Maylem v. Carmelita Ellano and Antonia Morciento

  • G.R. No. 162738 - Sps. Elizabeth S. Tagle Ernesto R. Tagle v. Hon. Court of Appeals, RTC, Quezon City, Branch 97, Sps. Federico and Rosamyrna Carandang and Shriff Carol Bulacan

  • G.R. No. 162836 - Cerefina Argallon-Jocson and Rodolfo Tuising v. Maria Cristina Fertilizer Corporation and/or Marcelo Steel Corporation

  • G.R. No. 164244 - National Housing Authority v. Reynaldo Magat

  • G.R. No. 164315 - Alcatel Philippines, Inc. v. Rene R. Relos

  • G.R. No. 164560 - Ana De Guia San Pedro, et al. v. Hon. Fatima G. Asdala (etc.), et al.

  • G.R. No. 164800 - Republic of the Philippines v. Estate of Alfonso Lim, Sr., et al.

  • G.R. No. 164817 - Digna A. Najera v. Eduardo J. Najera

  • G.R. No. 164968 - Gloria Ocampo, et al. v. Land Bank of the Philippines, et al.

  • G.R. No. 165448 - Ernesto Aquino v. People of the Philippines

  • G.R. No. 165568 - Government Service Insurance System v. Abraham Lopez

  • G.R. No. 165678 - Rosario Panuncio v. People of the Philippines

  • G.R. No. 165907 - Spouses Dominador R. Narvaez and Lilia W. Narvaez v. Spouses Rose Ogas Alciso and Antonio Alciso

  • G.R. No. 166198 - Marcelino A. Magdadaro v. Philippine National Bank

  • G.R. No. 166553 - Republic of the Philippines, represented by the National Power Corporation v. Sps. Ruperto and Sonia S. Libuano, et al.

  • G.R. No. 166640 - Herminio Mariano, Jr. v. Ildefonso C. Callejas and Edgar De Borja

  • G.R. No. 166705 - Mantle Trading Services, Incorporated and/or Bobby Del Rosario v. National Labor Relations Commission and Pablo S. Madriaga

  • G.R. No. 166734 - Mandy Commodities Co., Inc. v. The International Commercial Bank of China

  • G.R. No. 166988 - Heirs of Emiliano San Pedro, etc. v. Pablito Garcia and Jose Calderon

  • G.R. No. 167232 - D.B.T. Mar-Bay Construction Incorporated v. Ricaredo Panes, et al.

  • G.R. No. 167546 - Sonny Romero y Dominguez v. People of the Philippines

  • G.R. No. 167809 - Land Bank of the Philippines v. Josefina R. Dumlao, et al.

  • G.R. No. 168406 - Club Filipino, Inc. and Atty. Roberto F. De Leon v. Benjamin Bautista, et al.

  • G.R. No. 169519 - Irenorio B. Balaba v. People of the Philippines

  • G.R. No. 169700 - In the Matter of the Allowance of the Will of Moises F. Banayad Apolonia Banayad Frianela v. Servillano Banayad, Jr.

  • G.R. No. 169878 - People of the Philippines v. Jesus Obero

  • G.R. No. 170014 - Renita Del Rosario, et al. v. Makati Cinema Square Corporation

  • G.R. No. 170472 - People of the Philippines v. Jojo Musa y Santos, et al.

  • G.R. NOS. 170615-16 - The Repuclic of the Philippines, represented by the Office of the Ombudsman, Ma. Merceditas N. Gutierrez, in her capacity as the Ombudsman v. Rufino V. Maijares, Roberto G. Ferrera, Alfredo M. Ruba and Romeo Querubin.

  • G.R. No. 171275 - Victor Meteoro, et al. v. Creative Creatures, Inc.

  • G.R. No. 171386 - Gloria R. Motos and Martin Motos v. Real Bank (A Thrift Bank), Inc.

  • G.R. No. 171586 - National Power Corporation v. Province of Quezon and Municipality of Pabgilao

  • G.R. No. 171655 - People of the Philippines v. Pablo L. Estacio, Jr. and Maritess Ang

  • G.R. No. 171842 - Gloria S. Dy v. Mandy Commodities Co., Inc.

  • G.R. No. 171968 - XYST Corporation v. DMC Urban Properties Development, Inc., Fe Aurora C. Castro (Intervenor)

  • G.R. No. 172174 - Davao Contractors Development Cooperative (DACODECO), represented by Chairman of the Board Engr. L. Chavez v. Marilyn A. Pasawa.

  • G.R. No. 172212 - Rafael Rondina v. Court of Appeals formet special 19th Division, unicraft Industries International Corp., Inc. Robert Dino, Cristina Dino, Michael Lloyd Dino, Allan Dino and Mylene June Dino.

  • G.R. No. 172342 - LWV Construction Corporation v. Marcelo B. Dupo

  • G.R. No. 172574 - Noli Lim v. Angelito Delos Santos, etc., Denia R. Adoyo, et al., (Intervenors) Gloria Murillo, et al., (Protestants)

  • G.R. No. 172640 - Victoriano Dela Pe a, et al. v. Spouses Vicente Alonzo, et al.

  • G.R. No. 172796 - Sps. Artemio and Esperanza Aduan v. Levi Chong

  • G.R. No. 173252 - Unisource Commercial and Development Corporation v. Joseph Chung, et al.

  • G.R. No. 173654-765 - People of the Philippines v. Teresita Puig and Romeo Porras

  • G.R. No. 174154 - Jesus Cuenco v. Talisay Tourist Sprots Complex, Incorporated and Matias B. Aznar III

  • G.R. No. 174238 - Anita Cheng v. Souses William and Tessie Sy

  • G.R. No. 174364 - Northwest Airlines v. Delfin S. Catapang

  • G.R. No. 174370 - People of the Philippines v. Willy Mardo Ganoy y Mamayabay

  • G.R. No. 174610 - Soriamont Steamship Agencies, Inc., et al. v. Sprint Transport Services, inc. etc.

  • G.R. No. 174803 - Marywin Albano-Sales v. Mayor Reynolan T. Sales and Court of Appeals

  • G.R. No. 174830 - Isabelita Vda. De Dayao and Heirs of Vicente Dayao v. Heirs of Gavino Robles, namely: Placida vda. De Robles, et al.

  • G.R. No. 174986, G.R. NO. 175071 and G.R. NO. 181415 - Armand O. Raquel-Santos, et al. v. Court of Appeals, et al.

  • G.R. No. 175352 - Dante Liban, et al. v. Richard J. Gordon

  • G.R. No. 175551 - Republic of the Philippines represented by the Manila International Airport Authority (MIAA) v. Hon. Francisco G. Mendioal, etc.

  • G.R. No. 175677 and G.R. NO. 177133 - Spouses Azucena B. Corpuz and Renato S. Corpuz v. Citibank, N.A. et al.

  • G.R. No. 175910 - Atty. Rogelio E. Sarsaba v. Fe vda De Te, represented by her Attorney-in-Fact Faustino Casta eda

  • G.R. No. 177007 - Sansio Philippines, Inc. v. Sps. Alicia Leodegario Mogol, Jr.

  • G.R. No. 177181 - Rabaja Ranch and Development Corporation v. AFP Retirement and Separation Benefits System

  • G.R. No. 177430 and G.R. NO. 178935 - Rene M. Francisco v. People of the Philippines

  • G.R. No. 177594 - University of San Agustin, Inc. v. University of San Agustin Employees Union-FFW

  • G.R. No. 177624 - Modesta Luna v. Juliana P. Luna, et al.

  • G.R. No. 177728 - Jenie San Juan Dela Cruz, et al., etc., v. Ronald Paul S. Gracia, etc.

  • G.R. No. 177766 - People of the Philippines v. Claro Jampas

  • G.R. No. 177768 - People of the Philippines v. Charmen Olivo y Along, Nelson Danda y Sambuto and Joey Zafra y Reyes

  • G.R. No. 177847 - Laurence M. Sison v. Eusebia Cariaga

  • G.R. No. 178058 - People of the Philippines v. Jessie Maliao y Masakit, Norberto Chiong y Discotido and Luciano Bohol y Gamana, Jessie Maliao y Masakit(Accused-Appellant)

  • G.R. No. 178205 - People of the Philippines v. Leo Quemeggen, Juanito De Luna

  • G.R. No. 178330 - Martin T. Sagarbarria v. Philippine Business Bank

  • G.R. No. 178490 - Commissioner of Internal Revenue v. Bank of the Philippine Islands

  • G.R. No. 178760 - Carmen B. Dy-Dumalasa v. Domingo Sabado S. Fernandez, et al.

  • G.R. NOS. 178831-32, G.R. No. 179120, G.R. NOS. 179132-33 and G.R. NOS. 179240-41 - Limkaichong v. Comission on Election

  • G.R. No. 178976 - Abelardo P. Abel v. Philex Mining Corporation represented by Fernando Agustin

  • G.R. No. 179061 - Sheala P. Matrido v. People of the Philippines

  • G.R. No. 179154 - People of the Philippines v. Roger Perez and Danilo Perez

  • G.R. No. 179177 - Carlos N. Nisda v. Sea Serve Maritime Agency, et al.

  • G.R. No. 179187 - People of the Philippines v. Renato Talusan y Panganiban

  • G.R. No. 179430 - Jamela Salic Maruhom v. Commssion on Elections and Mohammad Ali "Mericano" A. Abinal

  • G.R. No. 179271 and G.R. No. 179295 - BANAT v. Commission on Election

  • G.R. No. 179512 - Eagle Star Security Services, Inc. v. Bonifacio L. Mirando.

  • G.R. No. 179546 - Coca-Cola Bottlers Phils, Inc. v. Alan M. Agito, Regolo S. Oca III, et al.

  • G.R. No. 179653 - United Muslim and Christian Urban Poor Association, Inc., etc. v. BRYC-V Development Corporation, etc., et al.

  • G.R. No. 179674 - Pyro Coppermining Corporation v. Mines Adjudication Board-Department of Environment and Natural Resources, et al.

  • G.R. No. 179807 - Ramy Gallego v. Bayer Philippines, Inc., et al.

  • G.R. No. 179937 - The People of the Philippines v. Gerald Librea y Camitan

  • G.R. No. 180043 - Commissioner of Internal Revenue v. Philippine Airline, Inc. (PAL)

  • G.R. No. 180055 and G.R. No. 183055 - Franklin M. Drilon, et al. v. Hon. Jose de Venecia, Jr., et al.

  • G.R. No. 180066 - Commissioner of Internal Revenue v. Philippine Airlines, Inc.

  • G.R. No. 180458 - Development Bank of the Philippines v. Family Foods Manufacturing Co. Ltd. and Spouses Juliano and Catalina Centeno

  • G.R. No. 180465 - Eric Dela Cruz and Paul M. Lacuata v. Coca-Cola Bottlers Phils.

  • G.R. No. 180528 - Civil Service Commission v. Nelia O. Tahanlangit

  • G.R. No. 180568 - Lydia Montebon a.k.a. Jingle Montebon v. The Honorable Court of Appeals, et al.

  • G.R. No. 180675 - Virgilio Bote v. San Pedro Cineplex Properties Corporation

  • G.R. No. 181235 - Banco De Oro-EPCI, Inc. v. John Tansipek

  • G.R. No. 181393 - Grandteq Industrial Steel Products, Inc. and Abelardo M. Gonzales v. Edna Margallo

  • G.R. No. 181478 - Eddie T. Panlilio v. Commission on Elections and Lilia G. Pineda

  • G.R. No. 181531 - National Union of Workers in Hotels Restaurant and Allied Industries-Manila Pavilion Hotel Chapter v. Secretary of Labor and Employment, et al.

  • G.R. No. 182420 - People of the Philippines v. Elsie Barba

  • G.R .No. 182454 - People of the Philippines v. Felix Wasit

  • G.R. No. 182485 - Sps. Henry O and Pacita Cheng v. Sps. Jose Javier and Claudia Dailisan

  • G.R. No. 182567 - Guillermo M. Telmo v. Luciano M. Bustamante

  • G.R. No. 182687 - People of the Philippines v. Warlito Martinez

  • G.R. No. 182941 - Roberto Sierra y Caneda v. People of the Philippines

  • G.R. No. 183105 - Erna Casals, et al. v. Tayud Golf and Country Club, et al..

  • G.R. No. 183819 - People of the Philippines v. Arsenio Cortez y Macalindong a.k.a. "Archie"

  • G.R. No. 184586 - Rafael Flauta, Jr., et al. v. Commission on Elections, et al.

  • G.R. No. 184801 - Jonas Taguiam v. Commission on Election, et al.

  • G.R. No. 184948 - Cong. Glenn A. Chong, Mr. Charles Chong, and Mr. Romeo Arribe v. Hon. Philip L. Dela Cruz, et al.

  • G.R. No. 185035 - Government Service Insurance System v. Salvador A. De Castro

  • G.R. No. 185063 - Sps. Lita De Leon, et al. v. Anita B. De Leon, et al.

  • G.R. No. 185095 - Maria Susan L. Ra ola, et al. v. Spouses Fernando & Ma. Concepcion M. Ra ola

  • G.R. No. 185220 - Laguna Metts Corporation v. Court of Appeals, Aries C. Caalam and Geraldine Esguerra

  • G.R. No. 185389 - People of the Philippines v. Benjie Resurrection

  • G.R. No. 185401 - Henry "June" Due as, Jr. v. House of Representatives Electoral Tribunal and Angelito "Jett" P. Reyes

  • G.R. NO. 186007 and G.R. No. 186016 - Salvador Divinagracia, Jr. v. Commission on Elections and Alex A. Centena

  • G.R. No. 187152 - People of the Philippines v. Teodulo Villanueva, Jr.

  • UDK-14071 - Martin Gibbs Fletcher v. The Director of Bureau of Corrections or his representative

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    G.R. No. 178760 - Carmen B. Dy-Dumalasa v. Domingo Sabado S. Fernandez, et al.

      G.R. No. 178760 - Carmen B. Dy-Dumalasa v. Domingo Sabado S. Fernandez, et al.

    PHILIPPINE SUPREME COURT DECISIONS

    SECOND DIVISION

    [G.R. NO. 178760 : July 23, 2009]

    CARMEN B. DY-DUMALASA, Petitioner, v. DOMINGO SABADO S. FERNANDEZ, VIRGILIO P. MONSALUD, EMELYN R. MONARES, MARIA NILA M. DURO, ROSE GUIAO, JUANITO B. RACCA, JR., RENATO M. CARLOS, JR., WILFREDO M. MERCADO, JUANITA B. DIMANLIG, REYNALDO M. DIMANLIG, AMIE A. MICOR, TYNE C. DIGNADICE (D), JOANNE H. COMANDA, JOCELYN H. FERNANDEZ (D), SHYAMELA L. FARAON, REBECCA V. DUNGAO, DOUGLAS A. ANDOSAY, VIRGINIA V. VILLARTA, VICTORIA O. HUELGAS, LORETA S. SANTERO, MARISSA F. TRASMONTERO, NORBERTO C. TRASMONTERO, DELIA S. DADO, ROWENA L. VICTORIA, MARITES P. TANAN, MA. THERESA ROQUE, DANILO NICOLAS, JOCELYN J. ORDOÑEZ and ANNABEL M. DY, ET. AL. Respondents.

    D E C I S I O N

    CARPIO MORALES, J.:

    Via Petition for Review on Certiorari, Carmen B. Dy-Dumalasa (petitioner) seeks the reversal of the Court of Appeals Decision1 dated April 28, 2006 and Resolution2 dated June 29, 2007 annulling and setting aside the Resolutions dated January 27, 20053 and March 16, 20054 of the National Labor Relations Commission (NLRC).

    Domingo Sabado S. Fernandez, et al. (respondents) are former employees of Helios Manufacturing Corporation (HELIOS), a closed domestic corporation engaged in soap manufacturing located in Muntinlupa, of which petitioner is a stockholder, a member of the Board of Directors, and Acting Corporate Secretary.

    On October 23, 2001, respondents filed a Complaint5 against HELIOS, docketed as NLRC-NCR South Sector Case No. 30-10-04950-01, for illegal dismissal or illegal closure of business, non-payment of salaries and other money claims against HELIOS. The complaint was later consolidated with another case filed by similarly situated employees of HELIOS, docketed as NLRC-NCR South Sector Case No. 30-11-05301-01.6 Both complaints also impleaded HELIOS' members of the Board of Directors (The Board) including herein petitioner. Atty. Arturo Balbastro, one of the members of the Board, was subsequently dropped from the complaint, upon manifestation of respondents.7

    Despite service of summons,8 of the remaining four members of the Board, only Leonardo Dy-Dumalasa, HELIOS' President and General Manager-husband of petitioner, appeared with counsel.9

    As amicable settlement proved not to be viable and with the repeated non-appearance of the members of the Board in the scheduled hearings, the Labor Arbiter required the parties to submit their respective position papers.10 Only respondents complied with this directive.11 Despite the grant of a 10-day extension, HELIOS et al. failed to submit theirs, hence, the cases were deemed submitted for decision.12

    In the meantime, or on June 6, 2002, HELIOS et al. moved to have their position paper admitted. There being no proof of service of the motion upon respondents, hearings/conferences between the parties were again scheduled, but HELIOS et al. failed13 to attend the same despite due notice. Hence, by Order14 dated July 22, 2002, Labor Arbiter Nieves V. de Castro denied HELIOS et al.'s motion to admit their position paper and again deemed the cases submitted for decision. Just the same, the Labor Arbiter, who took into account HELIOS et al.'s position paper despite the earlier denial of their motion to admit it, found HELIOS, its members of the Board, and its stockholders, by Decision15 dated August 30, 2002, liable for illegal dismissal and unfair labor practice, as the closure of the business was attended with fraud and bad faith, having been largely motivated by their desire to interfere with respondents' exercise of the right to self-organization and to evade payment of their claims.

    The Labor Arbiter found that the closure of the Muntinlupa office/plant was a sham, as HELIOS simply relocated its operations to a new plant in Carmona, Cavite under the new name of "Pat & Suzara," in response to the newly-established local union. The dispositive portion of the Labor Arbiter's Decision reads:

    WHEREFORE, respondent HELIOS Manufacturing Corp. or "Pat & Suzara" and its Board of Directors and stockholders are hereby directed to pay complainants their full backwages from the time they were illegally dismissed on 30 May 2001 up to 30 August 2002; and separation pay of one month's salary for every year of service; to pay complainants' service incentive leave for three (3) years from 1998-2001; to pay proportionate 13th month pay for 2001; to pay moral and exemplary damages of P300,000.00 each as prayed for; and to pay 10% of the total award as attorney's fees, or to pay the 29 complainants the total amount of P15,195,479.30, plus 10% attorney's fees in the amount of P1,519,549.93. The detailed computation of complainant's award forms part of this Decision.

    SO ORDERED. (Emphasis supplied)cralawlibrary

    HELIOS et al. filed a Memorandum of Appeal16 on October 28, 2002, but the same was not accompanied by a cash or surety bond, hence, by Resolution17 dated March 21, 2003, the NLRC dismissed the appeal. HELIOS et al.'s motion for reconsideration having been denied18 on May 30, 2003 for having been filed out of time, the Labor Arbiter's Decision attained finality on July 17, 2003.19

    After respondents filed a motion for the issuance of a writ of execution,20 the Labor Arbiter set a pre-execution conference on September 18, 2003. Again, only respondents appeared during the scheduled conference, drawing the Labor Arbiter to issue on October 9, 2003 a Writ of Execution21 the pertinent portion of which reads:

    NOW THEREFORE, you are hereby commanded to proceed to respondents Helios Manufacturing Corporation or "Pat & Suzara" and its Board of Directors and stockholders with address at Tahanan Compound, Poblacion Uno, Gen. Mariano Alvarez, Cavite or at Warehouse 4, Partition 3, Sunblest Compund, Km. 23, West Service Road, Muntinlupa City, or wherever they may be presently located or holding their business, to collect the amount of SIXTEEN MILLION SEVEN HUNDRED FIFTEEN THOUSAND AND TWENTY EIGHT PESOS (P16,715,028.00) representing complainant's [sic] full backwages, separation pay, service incentive leave pay, proportionate 13th month pay for 2001, moral and exemplary damages and attorney's fees, all pursuant to the decision in this case.

    x x x

    In case you fail to collect the amounts above indicated, you are hereby ordered to cause the satisfaction of the judgment out of respondents' goods or chattels, or in the absence thereof, from respondents' properties not exempt from execution.

    x x x

    Pursuant to the above Writ, Sheriff Antonio Datu issued a Notice of Levy on Real Property22 under which a house and lot in Ayala-Alabang in the name of petitioner and her husband Leonardo Dy-Dumalasa23 were levied upon.

    Petitioner moved to quash24 the Writ, putting up the defense of corporate fiction as well as lack of jurisdiction over her person, but the same was denied by Order25 dated January 26, 2004. Petitioner appealed to the NLRC, hence, the execution of the Writ was held in abeyance.

    By Resolution of January 27, 2005, the NLRC modified the Labor Arbiter's Order, holding that petitioner is not jointly and severally liable with HELIOS for respondents' claims, there being no showing that she acted in bad faith nor that HELIOS cannot pay its obligations. Petitioner moved for reconsideration, but this was denied by Resolution dated March 16, 2005, hence, she appealed to the Court of Appeals.

    By the assailed Decision, the appellate court reversed and set aside the NLRC Resolution, holding that what the NLRC, in effect, modified was not the Order denying the Motion to Quash the Writ of Execution, but the Labor Arbiter's Decision itself - - an impermissible act, the Decision having become final and executory, hence, it could no longer be reversed or modified. It further held that the NLRC gravely abused its discretion when it took cognizance of the appeal from the Order denying petitioner's Motion to Quash the Writ of Execution, as no appeal lies therefrom, especially since petitioner attempted to exculpate herself from the judgment obligation by invoking corporate fiction, a defense which could have been raised during the hearings before the Labor Arbiter.

    Respecting NLRC's pronouncement that petitioner was not jointly and severally liable, the appellate court held that the same is a superfluity, for there was no statement, either in the main case or in the Writ, that the liability is solidary, hence, petitioner is merely jointly liable for the judgment award.

    Petitioner moved for reconsideration of the appellate court's Decision, claiming that the labor tribunal never acquired jurisdiction over her person due to lack of summons, and reiterating her defense that HELIOS has a separate personality. Petitioner's motion was denied by the appellate court by Resolution of June 29, 2007, it holding that petitioner's act of filing the Motion to Quash the Writ of Execution as well as her submission of a Memorandum of Appeal was tantamount to submission to the Arbiter's jurisdiction. Hence, the present petition.

    Petitioner maintains that as she was never summoned by the Labor Arbiter, jurisdiction over her person was not acquired; and that although the Board and stockholders of HELIOS were impleaded in the original complaint, it was by virtue of their official, not personal capacities.

    And she reiterates that HELIOS has a personality separate and distinct from her, and there is nothing in the questioned Writ which directed the Sheriff to attach and levy the properties of the members of the Board or stockholders which are personal to them; and that for her and the other directors and stockholders to be held personally liable for the judgment award, they must have been found guilty of malice and bad faith - - a finding absent in the Labor Arbiter's Decision.

    Finally, petitioner contends that assuming arguendo that she is personally liable together with HELIOS, still, settlement of the entire judgment obligation cannot be claimed from her alone, under the doctrine of limited liability. She thus prays that the appellate court's Decision be reversed and set aside and the NLRC Resolutions reinstated.

    The petition is bereft of merit.

    Contrary to petitioner's contention, the Labor Arbiter acquired jurisdiction over her person regardless of the fact that there was allegedly no valid service of summons. It bears noting that, in quasi-judicial proceedings, procedural rules governing service of summons are not strictly construed. Substantial compliance therewith is sufficient.26 In the cases at bar, petitioner, her husband and three other relatives, were all individually impleaded in the complaint. The Labor Arbiter furnished her with notices of the scheduled hearings and other processes. It is undisputed that HELIOS, of which she and her therein co-respondents in the subject cases were the stockholders and managers, was in fact heard, proof of which is the attendance of her husband, President-General Manager of HELIOS, together with counsel in one such scheduled hearing and the Labor Arbiter's consideration of their position paper in arriving at the Decision, albeit the same position paper was belatedly filed.

    Clearly, petitioner was adequately represented in the proceedings conducted by the Labor Arbiter by the lawyer retained by HELIOS.

    Taking into account the peculiar circumstances of the cases, HELIOS' knowledge of the pendency thereof and its efforts to resist them are deemed to be knowledge and action of petitioner. That petitioner and her fellow members of the Board refused to heed the summons and avail of the opportunity to defend themselves as they instead opted to hide behind the corporate veil does not shield them from the application of labor laws.

    Petitioner can not now thus question the implementation of the Writ of Execution on her on the pretext that jurisdiction was not validly acquired over her person or that HELIOS has a separate and distinct personality as a corporate entity. To apply the normal precepts on corporate fiction and the technical rules on service of summons would be to overturn the bias of the Constitution and the laws in favor of labor.27

    On to the liability of petitioner.

    Interestingly, the assailed Court of Appeals Decision did not categorically rule on the issue of bad faith and piercing the corporate veil, it focusing instead on the issues of jurisdiction and the propriety of the NLRC Resolutions. However, the Labor Arbiter found HELIOS et al. guilty of bad faith when they closed the company's Muntinlupa plant 15 days before the scheduled cessation of operations, only to reestablish a plant in Carmona, Cavite sometime later as "Pat & Suzara," in response to the newly-created workers' union.

    As to HELIOS being a separate juridical entity, the Labor Arbiter held that it and "Pat & Suzara" are one and the same, using the same machineries and personnel in the new plant.

    The Labor Arbiter thus concluded that "indeed, fraud and bad faith on the part of the management are well-established" and, as such, HELIOS et al. are liable for the judgment award.

    While the appellate court reinstated the Labor Arbiter's decision, it held that since its fallo did not indicate with certainty the solidary nature of the obligation, the obligation is merely joint. The Court finds this ruling well-taken. As held in Industrial Management Int l. Development Corp v. NLRC:28

    It is an elementary principle of procedure that the resolution of the court in a given issue as embodied in the dispositive part of a decision or order is the controlling factor as to settlement of rights of the parties.ςηαñrοblεš νιr†υαl lαω lιbrαrÿ

    A perusal of the Labor Arbiter's Decision readily shows that, notwithstanding the finding of bad faith on the part of the management, the dispositive portion did not expressly mention the solidary liability of the officers and Board members, including petitioner. Further:

    A solidary or joint and several obligation is one in which each debtor is liable for the entire obligation, and each creditor is entitled to demand the whole obligation. In a joint obligation each obligor answers only for a part of the whole liability and to each obligee belongs only a part of the correlative rights.

    Well-entrenched is the rule that solidary obligation cannot lightly be inferred. There is a solidary liability only when the obligation expressly so states, when the law so provides or when the nature of the obligation so requires.29 (Emphasis and underscoring supplied)cralawlibrary

    And as held in Carag v. NLRC:30

    To hold a director personally liable for debts of the corporation, and thus pierce the veil of corporate fiction, the bad faith or wrongdoing of the director must be established clearly and convincingly. Bad faith is never presumed. Bad faith does not connote bad judgment or negligence. Bad faith imports a dishonest purpose. Bad faith means breach of a known duty through some ill motive or interest. Bad faith partakes of the nature of fraud. (Emphasis and underscoring supplied)cralawlibrary

    Ineluctably, absent a clear and convincing showing of the bad faith in effecting the closure of HELIOS that can be individually attributed to petitioner as an officer thereof, and without the pronouncement in the Decision that she is being held solidarily liable, petitioner is only jointly liable.

    The Court in fact finds that the present action is actually a last-ditch attempt on the part of petitioner to wriggle its way out of her share in the judgment obligation and to discuss the defenses which she failed to interpose when given the opportunity. Even as petitioner avers that she is not questioning the final and executory Decision of the Labor Arbiter and admits liability, albeit only joint,31 still, she proceeds to interpose the defenses that jurisdiction was not acquired over her person and that HELIOS has a separate juridical personality.

    As for petitioner's questioning the levy upon her house and lot, she conveniently omits to mention that the same are actually conjugal property belonging to her and her husband. Whether petitioner is jointly or solidarily liable for the judgment obligation, the levied property is not fully absolved from any lien except if it be shown that it is exempt from execution.

    WHEREFORE, the petition is DENIED. The Decision dated April 28, 2006 and the Resolution dated June 29, 2007 of the Court of Appeals are AFFIRMED.

    The liability of the respondents in NLRC-NCR South Sector Case No. 30-10-04950-01 and NLRC-NCR South Sector Case No. 30-11-05301-01 pursuant to the Decision of Labor Arbiter Nieves V. de Castro dated August 30, 2002 should be, as it is hereby, considered joint, without prejudice to the enforcement of the award against petitioner's co-judgment obligors in said cases.

    SO ORDERED.

    Endnotes:


    1 CA rollo, pp. 105-113. Penned by Associate Justice Magdangal M. de Leon and concurred in by Associate Justices Conrado M. Vasquez, Jr. and Mariano C. del Castillo.

    2 Id. at 156-159. Ibid.

    3 Records, pp. 158-161. Penned by Commissioner Tito F. Genilo and concurred in by Presiding Commissioner Lourdes C. Javier.

    4 Id. at 177-179. Ibid.

    5 Id. at 2.

    6 Id. at 22.

    7 Vide Minutes of December 10, 2001 hearing, id. at 19.

    8 Id. at 10.

    9 Vide, Minutes of January 31, 2002 Hearing, id. at 27.

    10 Vide Notice of Hearing, id. at 33.

    11 Id. at 34-43.

    12 Vide Minutes, May 23, 2002 Hearing, records, p. 64; and Order dated May 23, 2002, id. at 65.

    13 Vide Minutes of June 6, June 27, July 17, and July 22, 2002 Hearings, records, pp. 83, 85, 86 and 87.

    14 Id. at 89.

    15 Id. at 110-116. Penned by Labor Arbiter Nieves V. De Castro.

    16 Id. at 120-128.

    17 Id. at 158-161. Penned by Commissioner Tito F. Genilo and concurred in by Presiding Commissioner Lourdes C. Javier

    18 Vide Resolution, records, pp. 177-179. Ibid.

    19 Vide Entry of Judgment, records, p. 189.

    20 Records, pp. 186-188.

    21 Id. at 211-213.

    22 Id. at 346.

    23 Vide TCT No. 143442, id. at 347-351.

    24 Records, pp. 214-221.

    25 Id. at 235-238.

    26 Eden v. Ministry of Labor and Employment, G.R. No. 72145, February 28, 1990, 182 SCRA 840, 847, citing Ang Tibay v. Court of Industrial Relations, 69 Phil. 635, February 27, 1940.

    27 Pison-Arceo Agricultural and Development Corporation v. NLRC, G.R. No. 117890. September 18, 1997.

    28 G.R. No. 101723, May 11, 2000.

    29 Industrial Management, supra.

    30 G.R. No. 147590, April 2, 2007.

    31 Vide Paragraphs 1 and 28 of Petition, rollo, pp. 22 and 30.

    G.R. No. 178760 - Carmen B. Dy-Dumalasa v. Domingo Sabado S. Fernandez, et al.


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