AURO, IAN DEO A.

BLOCK A

PHILIPPINE ASSOCIATION OF FREE LABOR VS. EMILIO SALAS

G.R. NO. L-39084 FEBRUARY 23, 1988

Facts:
Petitioner filed a complaint for unfair labor practice with the then Court of Industrial
Relations (CIR) against the Northwest manufacturing Corporation and a certain Gan
Hun. The CIR rendered a Decision in favor of the petitioner and commenced levying
the personal properties of the said Gan Hun, particularly the properties found in his
residential apartment. Private respondent Wong King Yuen however, claims that Gan
Hun is his boarder in the apartment unit mentioned earlier and that the properties
inside the apartment unit levied by the provincial sheriff belong to him and not to Gan
Hun. Thus, the private respondent filed a Complaint for damages with the then Court
of First Instance against the provincial sheriff. As sought by the private respondent,
the CFI, with the herein respondent Judge Emilio V. Salas presiding therein, issued an
injunctive writ restraining the provincial sheriff from proceeding with the sale of the
properties in question. After having been allowed by the CFI to intervene the petitioner
labor organization sought to dismiss the Complaint on the ground that the said court
had no jurisdiction over the case filed by the private respondent. The petitioner argued
that said case relates to an existing labor dispute and as such the proper forum for the
same is the industrial court. Private respondent points out that the case is an
ordinary civil action for damages against the provincial sheriff and directed against the
sheriffs bond required under Section 17, Rule 39 of the Rules of Court. The private
respondent adds that it is an entirely separate proceeding distinct from the labor case
filed with the CIR and that, accordingly, it is the Court of First Instance which has
jurisdiction over the same.
Issue:
Whether or not the CFI has the jurisdiction to issue the injunctive relief questioned by
the petitioner.
Ruling:
Yes. The case is directed against the provincial sheriff and the recovery of damages is
sought against the bond provided for Section 17, Rule 39 of the Rules of Court
governing execution and satisfaction of judgments. Even if the act complained of by
the private respondent arose from a labor dispute between the petitioner and another
party, the inevitable conclusion remains the same there is no labor dispute between
the petitioner and the private respondent. The case has no direct bearing with the
case filed with the industrial court. The civil case remains distinct from the labor
dispute pending with the CIR. Under Commonwealth Act No. 103, the law creating the
Court of Industrial Relations, the jurisdiction of the industrial court is limited to labor
disputes. i.e., problems and controversies pertaining to the relationship between
employer and employee. From the foregoing, it is clear that the jurisdiction of the CIR
can be invoked only when there is a dispute arising between or affecting employers
and employees, or when an employer-employee relationship exists between the parties.
There being no labor dispute between the petitioner and the private respondent, the
Court of First Instance has the jurisdiction to issue the injunctive relief sought by the
private respondent. The latter case can proceed independently of the case pending in
the Court of Industrial Relations.

AURO, IAN DEO A.

BLOCK A

ALFREDO PRIMERO VS. INTERMEDIATE APPELLATE COURT

G.R. NO. 72644 DECEMBER 14, 1987

Facts:
Petitioner Primero was discharged from his employment as bus driver of DM Transit
Corporation. Thus, he instituted proceedings against DM with the Labor Arbiters of
the Department of Labor, for illegal dismissal, and for recovery of back wages and
reinstatement. After due investigation, the Labor Arbiter rendered judgment ordering
DM to pay complainant Primero's separation pay. This was affirmed by the NLRC.
Some three months later, Primero brought suit against DM in the Court of First
Instance seeking recovery of damages caused not only by the breach of his
employment contract, but also by the oppressive and inhuman, and consequently
tortious, acts of his employer and its officers antecedent and subsequent to his
dismissal from employment without just cause. While this action was pending in the
CFI, the law governing the Labor Arbiters' jurisdiction was once again revised. The
amending act was PD 1691 eliminated the restrictive clause placed by PD 1367 that
Regional Directors shall not indorse and Labor Arbiters entertain claims for moral or
other forms of damages. Thus, it restored the principle that "exclusive and original
jurisdiction for damages would once again be vested in labor arbiters;" eliminated "the
rather thorny question as to where in labor matters the dividing line is to be drawn
between the power lodged in an administrative body and a court;' " and, "in the
interest of greater promptness in the disposition of labor matters, ... spared (courts of)
the often onerous task of determining what essentially is a factual matter, namely, the
damages that may be incurred by either labor or management as a result of disputes
or controversies arising from employer employee relations." The Trial Court rendered
judgment dismissing the complaint on the ground of lack of jurisdiction, for the
reason that at the time that the complaint was filed, the Labor Code conferred
exclusive, original jurisdiction over claims for moral or other damages, not on ordinary
courts, but on Labor Arbiters.
Issue:
Whether or not, having recovered separation pay by judgment of the Labor Arbiter
which held that he had been fired by respondent DM Transit Corporation without just
cause he may subsequently recover moral damages by action in a regular court,
upon the theory that the manner of his dismissal from employment was tortious and
therefore his cause of action was intrinsically civil in nature.
Ruling:
Going by the literal terms of the law, it would seem clear that at the time that Primero
filed his complaints for illegal dismissal and recovery of back wages, etc. with the
Labor Arbiter, the latter possessed original and exclusive jurisdiction also over claims
for moral and other forms of damages; this, in virtue of Article 265 12 of PD 442,
otherwise known as the Labor Code, effective from May 1, 1974. In other words, in the
proceedings before the Labor Arbiter, Primero plainly had the right top lead and
prosecute a claim not only for the reliefs specified by the Labor Code itself for unlawful

AURO, IAN DEO A.

BLOCK A

termination of employment, but also for moral or other damages under the Civil Code
arising from or connected with that termination of employment. And this was the state
of the law when he moved for the dismissal of his claims before the Labor Arbiter, for
reinstatement and recovery of back wages, so that he might later file a damage suit "in
a civil court which has exclusive jurisdiction over his complaint ... founded on tortious
acts, breach of employment contract ... and consequent effects thereof."

SERVANDO'S INC. VS. SECRETARY OF LABOR AND EMPLOYMENT

G.R. NO. 85840 APRIL 26, 1990
Facts:
The Regional Director issued an order, requiring petitioner to pay its employees for the
deficiencies in wages and allowances of said employees after the Labor Standard and
Welfare Offices routine inspection. Petitioner was likewise ordered to clear the
passageway of its warehouse of waste materials, and to put up fire extinguishers in
their proper places pursuant to the occupational safety and health rules.
Issue:
Whether or not the Regional Director has the jurisdiction to hear and decide cases
involving recovery of wages and other monetary claims and benefits of workers and
employees.
Ruling:
The power then of the Regional Director (under the present state of the law) to
adjudicate employees' money claims is subject to the concurrence of all the requisites
provided under Sec. 2 of RA6715, to wit: (1) the claim is presented by an employee or
person employed in domestic or household service, or house helper; (2) the claim
arises from employer-employee relations; (3) the claimant does not seek reinstatement;
and (4) the aggregate money claim of each employee or house helper does not exceed
P5,000.00.
Going over the records of this case, we note that the aggregate claims of each of the
fifty four (54) employees of herein petitioner are over and above the amount of P5,
000.00. Under the circumstances, the power to adjudicate such claims belongs to the
Labor Arbiter who has the exclusive jurisdiction over employees' claims where the
aggregate amount of the claim for each employee exceeds P5, 000.00.

AURO, IAN DEO A.

BLOCK A

SINGAPORE AIRLINES VS. HON.ERNANI CRUZ-PANO

G.R. NO. L-47739 JUNE 22, 1983

Facts:
Private Respondent Carlos Cruz was offered employment by petitioner as Engineer
Officer with the opportunity to undergo a training course. Cruz signed the Agreement
with his co-respondent Villanueva, as surety. Claiming that Cruz had applied for "leave
without pay" and had gone on leave without approval of the application during the
second year of the Period of five years, petitioner filed suit for damages against Cruz
and his surety, Villanueva, for violation of the terms and conditions of the aforesaid
Agreement. Petitioner sought the payment of the following sums. Cruz denied any
breach of contract contending that at no time had he been required by petitioner to
agree to a straight service of five years under Clause 4 of the Agreement and that he
left the service on "valid compassionate grounds stated to and accepted by the
company so that no damages may be awarded against him.
Respondent Judge issued the assailed Order dismissing the complaint, counterclaim
and cross claim for lack of jurisdiction because the present case involved a money
claim arising from an employer-employee relation or at the very least a case arising
from employer-employee relations, which under Art. 216 of the Labor Code is vested
exclusively with the Labor Arbiters of the National
Labor Relations Commission.
Issue:
Whether or not the case is properly cognizable by Courts of justice.
Ruling:

AURO, IAN DEO A.

BLOCK A

Yes. While seemingly petitioner's claim for damages arises from employer-employee
relations, and the latest amendment to Article 217 of the Labor Code under PD No.
1691 and BP Bldg. 130provides that all other claims arising from employer-employee
relationship are cognizable by Labor
Arbiters, in essence, petitioner's claim for damages is grounded on the "wanton failure
and refusal without just cause of private respondent Cruz to report for duty despite
repeated notices served upon him of the disapproval of his application for leave of
absence without pay. This, coupled with the further averment that Cruz "maliciously
and with bad faith" violated the terms and conditions of the conversion training course
agreement to the damage of petitioner removes the present controversy frothed
coverage of the Labor Code and brings it within the purview of Civil Law.
The complaint was anchored not on the abandonment per se by private respondent
Cruz of his job as the latter was not required in the Complaint to report back to work
but on the manner and consequent effects of such abandonment of work translated in
terms of the damages which petitioner had to suffer.

FEM's Elegance Lodging House vs. Hon. Leon Murillo

G.R. Nos. 117442-43 January 11, 1995

Facts:
Private respondents, former employees of petitioners whose services were terminated,
filed against petitioner before the NLRC, seeking for unpaid benefits. Petitioner filed a
motion to dismiss for failure of private respondents to file their position paper within
the agreed period, and later on, a Motion to expunge private respondents' Position
Paper from the records of the case. The Labor Arbiter issued the order denying the
motions filed by petitioners. He held that a fifteen-day delay in filing the position paper
was not unreasonable considering that the substantive rights of litigants should not
be sacrificed by technicality.
Issue:
Whether or not technical rules of procedure are binding in labor cases.
Ruling:
No. Procedural lapses may be disregarded in the interest of substantial justice,
particularly where labor matters are concerned. The failure to submit a position paper

AURO, IAN DEO A.

BLOCK A

on time is not on of the grounds for the dismissal of a complaint in labor cases. It
cannot therefore be invoked by petitioners to declare private respondents as nonsuited. This stance is in accord with Article 4 of the Labor Code of the Philippines,
which resolves that all doubts in the interpretation of the law and its implementing
rules and regulations shall be construed in favor of labor.
Petitioners cannot claim that they were denied due process inasmuch as they were
able to file their position paper. The proper party to invoke due process would have
been private respondents, had their position paper been expunged from the records for
mere technicality.

GELMART INDUSTRIES (PHILS.) INC. VS. HON. VICENTE LEOGARDO

G.R. NO. 70544 NOVEMBER 5, 1987

Facts:
Petitioner had a collective bargaining agreement with GATCORD which covered
petitioners 8,000 rank-and-file workers among whom is the private respondent
Juanillo. GATCORD went on strike. The Ministry of Labor gave a 48-hour deadline "or
face the danger of losing employment status. All workers complied except 334,
including Juanillo. GELMART gave these workers notice and applied for clearance to
terminate their employment. Public respondent and Deputy Minister, Vicente Leogardo
sustained the preventive suspension imposed by GELMART but certified the case for
compulsory arbitration on the issue of termination. The decision granted clearance for
dismissal, but with specific provision to exclude those who did not participate in the

AURO, IAN DEO A.

BLOCK A

strike because they were absent before and during the same for justifiable causes such
as illness or "validated absences." Juanillo filed a complaint for illegal dismissal,
praying for reinstatement with full back wages, for damages in the amount of P10, 000
and attorneys fees. The respondent, traversing Juanillo's complaint, asserted that the
subject of the complaint was barred by prior judgement. Estrella, the Regional
Director, ordered the reinstatement.
Issue:
Whether or not respondent's complainant should be barred because of finality of
judgement.
Ruling:
The compulsory arbitration precisely covered her case. All she needed to do was prove
validated absences," during the preceding and she would have been in the list of
those to be reinstated. But she did not choose to present her proof in the arbitration
proceeding. Instead, she waited seven months after the decision became final before
bringing a separate case. If every member of a striking union not satisfied with a
decision in an arbitration case resolving the issues involved in a labor dispute arising
from the strike were to be accorded the right to bring a separate individual action on
an issue covered by that decision, there can be no end or solution to the controversy.
The dismissal of Juanillo was an incident of the GATCORD strike against GELMART.
Her action is not distinct from the issues dealt with in the compulsory arbitration
case.