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Republic of the Philippines
SUPREME COURT
Baguio

THIRD DIVISION

G.R. No. 103638 April 14, 1994

FIRST INTRAMUROS BF CONDOMINIUM CORPORATION and MAXY ABAD, Petitioners, v. NATIONAL LABOR RELATIONS COMMISSION and NANCY DINGAYAN QUIMPO, Respondents.

Balgos & Perez for petitioners.chanrobles virtual law library

Nancy J. Dingayan-Quimpo for and in her own behalf.

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R E S O L U T I O N

VITUG, J.:

This Petition for Certiorari, with prayer for the issuance of a writ of preliminary injunction, seeks to have the resolution, dated 24 September 1991, of the National Labor Relations Commission, which has affirmed the decision of 20 June 1990 of Labor Arbiter Manuel P. Asuncion, reversed and set aside.chanroblesvirtualawlibrarychanrobles virtual law library

On 01 February 1980, private respondent Nancy Dingayan Quimpo was employed by First Intramuros BF Condominium Corporation to be its Assistant Building Administrator for Finance and Administration. She, thereafter, received various promotions with corresponding increases in salary; in 1984, as senior Assistant Building Administrator; in 1985, as Building Administrator; and in 1986, as General Manager. In 1987, she was yet given another salary increase by petitioner corporation's president.chanroblesvirtualawlibrarychanrobles virtual law library

On 29 November 1988, private respondent received her 13th month pay based on her basic salary. She protested on the ground that it had been the company's policy to include other fringe benefits in the computation of the 13th month pay. Later, her salary was reverted to P8,107.50, the amount she was receiving in November 1987, on the excuse that the increase she was granted by the firm's president in December 1986 was not confirmed by the Board of Directors. Private respondent filed a complaint for underpayment, withholding of salary and diminution of her 13th month pay.chanroblesvirtualawlibrarychanrobles virtual law library

In a decision, dated 20 June 1990, Labor Arbiter Manuel P. Asuncion ruled:

WHEREFORE, the respondents are hereby ordered to pay the complainant;chanrobles virtual law library

1.) The full amount of her salary at P22,311.24 per month, from December 1988, with legal interest;chanrobles virtual law library

2.) 13th month pay for 1987 in the amount of P6,200.00;chanrobles virtual law library

3.) Moral and exemplary damages in the amount of P250,000.00chanrobles virtual law library

The respondents must, also, pay the equivalent of 10% percent of the benefits awarded as attorney's fee.chanroblesvirtualawlibrarychanrobles virtual law library

SO ORDERED. ¹chanrobles virtual law library

Petitioners appealed the Labor Arbiter's decision to the National Labor Relations Commission. On 24 September 1991, respondent commission issued the first questioned resolution, thus:

WHEREFORE, premises considered, the appealed Decision is hereby Affirmed and the appeal dismissed for lack of merit.chanroblesvirtualawlibrarychanrobles virtual law library

SO ORDERED. ²chanrobles virtual law library

Petitioners filed a motion for reconsideration. On 27 December 1991, the second questioned resolution was issued, thus:

WHEREFORE, in view thereof, the Commission's resolution in dispute must stand, and the Motion for Reconsideration is hereby dismissed for lack of merit. No further motion of similar nature shall be entertained.chanroblesvirtualawlibrarychanrobles virtual law library

SO ORDERED. ³chanrobles virtual law library

On 07 February 1992, a petition for certiorari, dated 27 January 1992, was filed with this court, asserting that -

1. THE PUBLIC RESPONDENT ACTED WITHOUT OR BEYOND ITS JURISDICTION OR WITH GRAVE ABUSE OF DISCRETION WHEN IT SUSTAINED THE DECISION OF THE LABOR ARBITER THAT THE INCREASES IN THE SALARY OF THE PRIVATE RESPONDENT WERE VALID;chanrobles virtual law library

2. THE PUBLIC RESPONDENT ACTED WITHOUT OR BEYOND ITS JURISDICTION OR WITH GRAVE ABUSE OF DISCRETION WHEN IT SUSTAINED PAYMENT TO THE PRIVATE RESPONDENT OF MORAL DAMAGES; ANDchanrobles virtual law library

3. THE PUBLIC RESPONDENT ACTED WITHOUT OR BEYOND ITS JURISDICTION OR WITH GRAVE ABUSE OF DISCRETION WHEN IT SUSTAINED PAYMENT OF THE PRIVATE RESPONDENT OF ATTORNEY'S FEES. ⁴

Petitioners likewise prayed for the issuance of a temporary restraining order. In its resolution, dated 02 March 1992, this Court issued a temporary restraining order and required petitioners to post a cash or surety bond to be effective during the pendency of the case and until the judgment thereon is fully executed. ⁵ The temporary restraining order was later lifted in our resolution of 22 July 1992, on account of petitioners' failure to post another bond pursuant to our interim resolution of 18 May 1992. ⁶ On 23 September 1992, this Court resolved to give due course to the petition, and it required the parties to submit their respective memoranda.

On 15 February 1994, a "Joint Motion to Render Decision Based on the Compromise Agreement," was filed with this Court, hereunder reproduced in full:

JOINT MOTION
TO RENDER DECISION BASED ON THE
COMPROMISE AGREEMENT

COMES NOW both Petitioner, FIRST INTRAMUROS BF CONDOMINIUM CORP. and PRIVATE RESPONDENT NANCY J. DINGAYAN-QUIMPO, in their own behalf, and unto this Honorable Supreme Court, most respectfully manifest:chanrobles virtual law library

That, on 29 January 1994, both parties entered into a Compromise Agreement for the amicable settlement of the instant case;chanrobles virtual law library

That, the said Compromise Agreement is herein-below reproduced, to wit:

COMPROMISE AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:chanrobles virtual law library

This AGREEMENT entered into by and between FIRST INTRAMUROS BF CONDOMINIUM CORP. and NANCY J. DINGAYAN-QUIMPO, herein-referred to below as the FIRST PARTY and SECOND PARTY, respectively, this 28th day of January, 1994.

WITNESSETH:chanrobles virtual law library

That, the SECOND PARTY has filed two (2) labor cases against the FIRST PARTY, to wit:

1. NANCY J. DINGAYAN-QUIMPO versus FIBFCC NLRC Case No. 00-12-05209-88 G.R. No. 103638 For: Withholding of wages and underpayment of 13th month pay

2. NANCY J. DINGAYAN-QUIMPO versus FIBFCC NLRC Case No. 03-01229-89/CA 000266 G.R. No. 108830 For: Illegal Suspension and Illegal Dismissal

which cases are now pending before the Supreme Court;chanrobles virtual law library

That, the above cases were decided by the NLRC in favor of the SECOND PARTY;chanrobles virtual law library

That, both parties have decided to settle the above cases amicably by way of the following manner of settlement:chanrobles virtual law library

a). That, the FIRST PARTY shall pay the SECOND PARTY the total amount of ONE MILLION TWO HUNDRED THOUSAND PESOS (P1,200,000.00) under the following program of payment:

1) 1st payment - February 1, 1994 - P300,000.00

2) 2nd payment - March 1, 1994 - P300,000.00

3) 3rd payment - April 1, 1994 - P150,000.00

4) 4th payment - May 1, 1994 - P150,000.00

5) 5th payment - June 1, 1994 - P150,000.00

6) 6th payment - July 1, 1994 - P150,000.00
------

Total P1,200,000.00chanrobles virtual law library

That, the above shall constitute FULL settlement of the claim against the FIRST PARTY by the SECOND PARTY for backwages, separation pay, damages and attorney's fees.chanroblesvirtualawlibrarychanrobles virtual law library

That, both parties hereby waive any and all claims in the present or in the future, whether civil, criminal or otherwise, that may arise from any and all incidents involving the above cases.chanroblesvirtualawlibrarychanrobles virtual law library

SIGNED this 29th day of January 1994 in Kalookan City, Metro Manila, Philippines.

FIRST PARTY SECOND PARTY

FIRST INTRAMUROS BF
CONDOMINIUM CORP.chanrobles virtual law library

(Sgd.)
Represented by: ATTY. NANCY J. DINGAYAN-QUIMPO Complainant

(Sgd.)
ENRIQUE M. ZALAMEA
Chairman of the Board
and President

(Sgd.)
RODRIGO GATMAITAN, JR.
Treasurerchanrobles virtual law library

That, both parties have decided to terminate the above case to the best interest of all by executing the above-quoted Compromise Agreement which is hereto attached as Annex "A";chanrobles virtual law library

That, the above Compromise Agreement is not contrary to law, moral and public policy;chanrobles virtual law library

WHEREFORE, in view of the foregoing, it is most respectfully prayed that the Compromise Agreement entered into by and between FIRST INTRAMUROS BF CONDOMINIUM CORP. and NANCY J. DINGAYAN-QUIMPO be adopted by this Honorable Supreme Court as Its Decision on the above-entitled case.chanroblesvirtualawlibrarychanrobles virtual law library

Kalookan City for Manila, 28 January 1994.chanrobles virtual law library

(Sgd.)
FIRST INTRAMUROS BF NANCY J. DINGAYAN-QUIMPO
CONDOMINIUM CORP. Private Respondent
Petitioner

Represented by:

(Sgd.)
ENRIQUE M. ZALAMEA
Chairman of the Board
and President

(Sgd.)
RODRIGO GATMAITAN, JR.
Treasurer

The law not merely authorizes, but even encourages, the amicable settlement of disputes between parties (Art. 2029, Civil Code), and it does not limit such compromise to cases about to be filed but also to cases already pending in court.chanroblesvirtualawlibrarychanrobles virtual law library

WHEREFORE, finding the compromise agreement not to be contrary to law, morals, good customs, public order and public policy, the Court hereby APPROVES the same, and it ENJOINS the parties thereto to faithfully comply with the covenants, terms and conditions thereof. This resolution is immediately executory. No costs.chanroblesvirtualawlibrarychanrobles virtual law library

SO ORDERED.

Feliciano, Romero and Melo, JJ., concur.chanroblesvirtualawlibrarychanrobles virtual law library

Bidin, J., is on leave.