Labor Rev Assigned Cases

8/18/2019 Labor Rev Assigned Cases

1/26

`THIRD DIVISIONG.R. No. 174115, November 09, 2015

PUNONGBAYAN AND ARAU O !P"A#, B$N%A&IN R. PUNONGBAYAN., %OS$ G. ARAU O, GR$GORIO S. NAVARA 'R$DO V. DA&IAN AND %$SSI$ (. (ARPIO, Pe)*)*o+er , v. ROB$RTO PON($ $PON, Re -o+ e+).

D $ ( I S I O N

%ARD$ $/A, %.

T * * -e)*)*o+ 3or rev*e o+ er)*or r*1 o3 ) e De * *o+2 o3 ) e (o6r) o3 A--e )e 'ebr6 r8 15, 200 , +Re o 6)*o+: )e A6;6 ) :, 200 rever *+; ) e De * *o+ o3 ) e N R( + ) e bor Arb*)er, o *+; ) ) -e)*)*o+erv * 8 * m* e re -o+ e+) Rober)o Po+ e e-o+ 6e )o o o3 )r6 ) + o+3* e+ e.

T e ' )

Pe)*)*o+er P6+o+;b 8 + + Ar 6 o !P"A# * -ro3e *o+ - r)+er *- e+; ;e *+ -6b * o6+)*+; -r )* e. I) 6 8 re;* )ere + or; +* m*+ R. P6+o+;b 8 + !P6+o+;b 8 +#, %o e G.

Ar 6 o, Gre;or*o S. N v rro, A 3re o V. D m* + !D m* +# + %e *e S. ( r-*o, re - r)+er o3 P"A !o) er-e)*)*o+er #.4

O+ %6 8 5, 19??, P"A *re Rober)o Po+ e e-o+ !re -o+ e+)# S) 33 A6 *)or 1. A3)er 8e r o3 erv* e, e be me) e & + ;er@*+@( r;e o3 ) e (eb6 o-er )*o+ + ) e D*re )or o3 ) e V* 8 @&*+ + o o-er )*o+ o3P"A.5 Some)*me *+ A-r* 2002, o6+)*+; 3*rm S8 *- Gorre Ve 8o + (om- +8 !SGV# omme+ e +e;o)* )*o+

*) P"A 3or -o *b e mer;er o3 ) e*r P * *--*+e o-er )*o+ . D6r*+; +e;o)* )*o+ , ome o3 P"A em- o8ee ,*+ 6 *+; re -o+ e+), e=-re e 3e r o+ ) e*r 3 )e *+ e o3 mer;er.

O+ A-r* 24, 2002, P"A e+) &emor + 6m7 )o *) *e+) *+3orm*+; ) em bo6) *) ;reeme+) *) SGV )oomb*+e ) e*r -r )* e , + )o )er be ome member o3 ) e $r+ ) " Yo6+; Or; +*< )*o+. S6b>e ) )o --ro-r* )e6e * *;e+ e + 3*+ - r)+er --rov , ) e omb*+e -r )* e e=-e )e )o be e33e )*ve o+ %6 8 1, 2002.? O+

A-r* 2 , 2002, ) ro6; + em * @ e))er )o P6+o+;b 8 +, re -o+ e+) - e e ; *+ ) ) e mer;er. He r;6e m *+ 8) ) !1# ) e omb*+ )*o+ o6 e3e ) ) e -*r*) o3 om-e)*)*o+ + * re )e mo+o-o 8 o3 or) !2# ) e

rr +;eme+) o6 be ver8 o+ero6 o+ ) e - r) o3 P"A !:# $r+ ) + Yo6+; )) C*+; P"A e -*)e 14 8e r o3 o bor )*o+ + eve+ ) re )e+e )o *) r *) )e +o o;8 3rom P"A + !4# ) e 6 )6re o3 P"A + SGV o6

+o) m ) be 6 e P"A 6 )6re 3o6+ e o+ e= e e+ e * e ) ) o3 SGV 3o6+ e o+ 6br* .9

S6b e 6e+) 8, P"A e r+e ) ) re -o+ e+) !1# me) *) P"A *e+) + *+v*)e ) em )o e+; ;e ) e erv* e o38 & + +; 8 @EP&G ! &@EP&G#, om-e)*+; o6+)*+; 3*rm, + !2# ))em-)e )o -*r )e ) e e+)*re ) 33 o3

P"A (eb6 (*)8 O33* e + D v o (*)8 O33* e. T 6 , o+ & 8 :0, 2002, -e)*)*o+er D m* + e+) re -o+ e+) e))erC*+; *m )o e=- *+ ) e e;e * o8 + *+*m* ) e omm*))e ; *+ ) P"A.10

T e e))er re +Rob e v*r)6 *br r8

& 8 :0, 2002

&r. Rober) P. e-o+P6+o+;b 8 + " Ar 6 o(eb6 (*)8

De r Bob,

A Gre; N v rro omm6+* )e )o 8o6 over ) e )e e- o+e 8e )er 8, *) ome )o o6r ))e+)*o+ ) )8o6 ve * 6 e -o *b e em- o8me+) *) ) e m + ;*+; - r)+er o3 o+e o3 o6r om-e)*)or +) ) 8o6 ve ;ree o+ -r )* 8 ) e )erm o3 em- o8me+) e= e-) ) e )e 8o6 * >o*+ ) em. I)

o ome )o o6r ))e+)*o+ ) ) 8o6 ve bee+ e+>o*+*+; +6mber o3 o6r *e+) *+ (eb6 +D v o )o o+ * er )r + 3err*+; ) e 6 *) )o ) e 3*rm 8o6 *+)e+ )o >o*+, + ) ) 8o6 ve o ) Ce


2/26

)o o6r ) 33 *+ (eb6 + D v o, *+v*)*+; ) em )o >o*+ 8o6 e+ 8o6 m Ce ) e move )o ) e o) er 3*rm.P e e ;*ve 6 + e=- + )*o+ +o) )er ) + %6+e 7, 2002 o3 6 )6 )*o+ o+ 8o6r - r), * ve

6 e 6 )o o6b) er*o6 8 e) er or +o) 8o6 re )* orC*+; *+ ) e *+)ere ) o3 P6+o+;b 8 + "Ar 6 o, + * o6 be v * ;ro6+ 3or ) e )erm*+ )*o+ o3 8o6r em- o8me+) *) ) e '*rm.

F * e e re *)*+; 3or 8o6r e=- + )*o+, e re 6*re 8o6 )o ;o o+ e ve o3 b e+ e *) - 8 e33e )*ve%6+e 1, 2002 6+)* %6+e 15, 2002. Fe o6 *Ce 8o6 )o )6r+ over 8o6r '*rm@* 6e -)o- om-6)er,

*e+) orC 3* e , + o) er 6 m )er* ) ) m 8 be re 6*re 3or ) e o+)*+6e o-er )*o+ o3 ) e(eb6 + D v o O33* e )o ) e -er o+ e * e *;+ )e )o ) Ce over 8o6r 36+ )*o+ 6r*+; ) e -er*oo3 8o6r e ve o3 b e+ e. !$m- * 6-- *e .#

Ver8 )r6 8 8o6r ,

!S; .#A 'R$DO V. DA&IANP r)+erHR " (omm6+* )*o+11

r *br r8

I+ * re- 812 )e %6+e , 2002, re -o+ e+) re*)er )e * orr*e bo6) ) e mer;er, + e+*e ) e e; )*o+; *+ ) *m. O+ %6+e 17, 2002, 3)er o+ * er*+; re -o+ e+) e=- + )*o+, D m* + erve 6-o+ re -o+ e+)

)erm*+ )*o+ +o)* e1: *+3orm*+; *m ) ) * em- o8me+) * )erm*+ )e e33e )*ve %6+e 1 , 2002 6e )o o o3 )r6 )+ o+3* e+ e.

O+ %6+e 14, 2002, re -o+ e+) 3* e om- *+) 3or * e; 6 -e+ *o+ + * e; * m* , + 3or - 8me+) 1: ) mo+) - 8, erv* e *+ e+)*ve e ve, o + e , e- r )*o+ - 8, re)*reme+) be+e3*) , mor m ;e , +e=em- r8 m ;e ; *+ ) P"A + *) - r)+er *) ) e Re;*o+ Arb*)r )*o+ Br + No. VII o3 ) e N )*o+ bRe )*o+ (omm* *o+ !N R(# *+ (eb6 (*)8. T e - r)*e 3 * e )o m* b 8 e)) e ) e e o ) e8 ere re 6*re )o

6bm*) -o *)*o+ - -er .14

O+ A6;6 ) 1:, 201:, ) e bor Arb*)er * m* e ) e om- *+) 3or C o3 mer*).15 T e bor Arb*)er e ) ) ) e-e)*)*o+er ere b e )o )* 3 )or* 8 * r;e ) e*r ob *; )*o+ o3 e ) b * *+; ) e b * 3or ) e*r o o3

o+3* e+ e *+ re -o+ e+) ) ro6; ) e 33* v*) o3 ) e*r *)+e e + o) er -*e e o3 ev* e+ e.1 I) o r6 e) ) re -o+ e+) +o) e+*e 6e -ro e . Re -o+ e+) b e )o 6bm*) * r*))e+ e=- + )*o+ )o ) e r;e

; *+ ) *m, + e * +o) re 6e ) 3or + ver r* e r*+;. Pe)*)*o+er o6 +o) be 3 6 )e 3or re 6*r*+;re -o+ e+) )o ;o o+ e ve *) - 8 )o -reve+) *m 3rom o+)*+6*+; *) * *e+) or)*e + ))em-) )o -*r )e *

o e ;6e + 6bor *+ )e o+ 3*rm )*me + re o6r e .17

T e N R( 33*rme ) e bor Arb*)er De * *o+.1? Re -o+ e+) 3* e mo)*o+ 3or re o+ * er )*o+19 * e+*e .20 T 6 , re -o+ e+) 3* e -e)*)*o+ 3or er)*or r*21 be3ore ) e (o6r) o3 A--e . He 3 6 )e ) e N R( 3or33*rm*+; ) e bor Arb*)er 3*+ *+; ) ) * * m* 3rom em- o8me+) v * .

T e (o6r) o3 A--e 3o6+ ) e -e)*)*o+ mer*)or*o6 . I) rev*e e ) e 3 )6 3*+ *+; o3 ) e N R(, + *) r6 e ) )

-e)*)*o+er * e; 8 6 -e+ e + * m* e re -o+ e+) 3rom em- o8me+).22

T e (o6r) o3 A--e * +o) ;*ve re e+ e )o ) e 33* v*) e=e 6)e b8 P"A em- o8ee re )*+; )o ) e *+*m*) omm*))e b8 re -o+ e+).

I) +o)e ) e o r*+; -o *b* *)8 ) ) ) e 33* v*) o3 ) e e -er o+ re *; 8 ) *+)e *) b* ++o) be *) e8 be*+; em- o8ee o3 P"A. 2:

I) 36r) er r6 e ) ) re -o+ e+) e+*e 6e -ro e . F*) ) e re -o+ e+) e+* o3 ) e r;e ; *+ )*m, e r*+; or *+ve )*; )*o+ o6 ve bee+ o+ 6 )e b8 P"A *+ )e o3 >6 ) )* 8 36r+* *+; ) e


3/26

re -o+ e+) ) e +o)* e o3 )erm*+ )*o+ o3 * em- o8me+).24

T e (o6r) o3 A--e e) * e ) e N R( De * *o+ + *re )e -e)*)*o+er )o - 8 >o*+) 8 + ever 8 re -o+ e+36 b C ;e 3rom %6+e 1 , 2002 6- )o ) e 3*+ *)8 o3 ) e >6 ;me+), e- r )*o+ - 8 !*+ *e6 o3 re*+ ) )eme+)#,

))or+e8 3ee e 6*v e+) )o 10J o3 re -o+ e+) e- r )*o+ - 8 + b C ;e . T e * -o *)*ve -or)*o+ o3 ) ee * *o+ re +Rob e v*r)6 *br r8

FH$R$'OR$, *+ v*e o3 ) e 3ore;o*+; -rem* e , >6 ;me+) * ereb8 re+ ere b8 6 GRANTING ) e-e)*)*o+ 3* e *+ ) * e + S$TTING ASID$ ) e D e * *o+ + R e o 6)*o+ -rom6 ; )e b8 ) e-6b * re -o+ e+) N R(, 'o6r) D*v* *o+ *+ (eb6 (*)8 *+ N R( ( e No. V@000090@2004 )e & r:1, 2005 + %6 8 5, 2005, re -e )*ve 8. Pr*v )e re -o+ e+) re ereb8 DIR$(T$D )o - 8 >o*+) 8 +

ever 8 ) e -e)*)*o+er * 36 b C ;e 3rom %6+e 1 , 2002 6- )o ) e 3*+ *)8 o3 ) * >6 ;me+),e- r )*o+ - 8 *+ ) e 6m o3 P1,142,400.00 3or * 14 8e r o3 erv* e *) P"A om-6)e ) o+e

mo+) r8 3or ever8 8e r o3 erv* e, + ))or+e8 3ee e 6*v e+) )o 10J o3 ) e -e)*)*o+ere- r )*o+ - 8 + b C ;e .25 r *br r8

P"A 3* e mo)*o+ 3or re o+ * er )*o+2 * e+*e .27 T 6 , ) * -e)*)*o+.

T e Pe)*)*o+

P"A m *+) *+e ) ) ) e (o6r) o3 A--e omm*))e ;r ve error *+ re+ er*+; ) e De * *o+ o+ 3o6r ;ro6+ .

'*r ), ) e (o6r) o3 A--e erre e+ *) rever e ) e 3 )6 3*+ *+; o3 bo) ) e N R( + ) e bor Arb*)er. I)erre e+ *) re@ev 6 )e ) e ev* e+)* r8 e*; ) or e )o ) e 33* v*) o3 -e)*)*o+er *)+e e ) o6;

6--or)e b8 6b ) +)* ev* e+ e o+ re or .2?

Se o+ , ) e (o6r) o3 A--e erro+eo6 8 r6 e ) ) ) e 33* v*) o3 ) e o@em- o8ee o3 re -o+ e+) re +o)633* *e+) b * 3or -e)*)*o+er o o3 )r6 ) + o+3* e+ e *+ *m. T ere +o e; )*o+, m6 e -roo3

re -o+ e+) o e ;6e + 6bor *+ )e ere mo)*v )e b8 +8 * mo)*ve *+ ;*v*+; 3 e ) )eme+) ; *+ ) T ere o +o o *+; ) ) ) e *)+e e ere 3or e , *+)*m* )e , or oer e *+)o e=e 6)*+; ) e*r 33* v*)29

T *r , ) e (o6r) o3 A--e erre *+ r6 *+; ) ) ) e b e+ e o3 + m*+* )r )*ve *+ve )*; )*o+ o+ )*)6)e v*oo3 re -o+ e+) r*; ) )o 6e -ro e .:0

'o6r) , ) e (o6r) o3 A--e erre *+ o *+; ) e - r)+er >o*+) 8 + ever 8 * b e )o - 8 ) e >6 ;me+) re -*)e ) e b e+ e o3 +8 o *+; ) ) ) e8 )e *+ b 3 *) *+ )erm*+ )*+; re -o+ e+) em- o8me+).:1

I 6e

B e o+ -e)*)*o+er e; )*o+ o3 error , ) e * 6e 3or re o 6)*o+ be3ore ) * (o6r) re+Rob e v*r)6 *br r8

1. F e) er ) e 3 )6 3*+ *+; o3 bo) ) e N R( + ) e bor Arb*)er ere 6--or)e b86b ) +)* ev* e+ e

2. F e) er re -o+ e+) e-r*ve o3 * r*; ) )o 6e -ro e +:. F e) er ) e -e)*)*o+er re >o*+) 8 + ever 8 * b e *) P"A )o - 8 ) e >6 ;me+) r .

r *br r8

(o6r) R6 *+;

T e - r me)er o3 R6 e 45 --e 3rom ) e (o6r) o3 A--e R6 e 5 e * *o+ o+ bor e, re 3o o+Rob e v*r)6 *brr8

I+ R6 e 45 rev*e , e o+ * er ) e orre )+e o3 ) e * e (A e * *o+, *+ o+)r )*) ) e rev*e 3or >6r* * )*o+ error ) ) e 6+ er) Ce 6+ er R6 e 5. '6r) ermore,

R6 e 45 *m*) 6 )o ) e rev*e o3 6e )*o+ o3 r * e ; *+ ) ) e * e (A


4/26

e * *o+. I+ r6 *+; 3or e; orre )+e , e ve )o v*e ) e (A e * *o+ *+ ) e meo+)e=) ) ) ) e -e)*)*o+ 3or er)*or r* *) r6 e 6-o+ -re e+)e )o *) e ve )o

e= m*+e ) e (A e * *o+ 3rom ) e -r* m o3 e) er *) orre ) 8 e)erm*+e ) e -re e+ eor b e+ e o3 ;r ve b6 e o3 * re)*o+ *+ ) e N R( e * *o+ be3ore *), +o) o+ ) e b * o3

e) er ) e N R( e * *o+ o+ ) e mer*) o3 ) e e orre ). I+ o) er or , eve )o be Cee+ 8 re ) ) ) e (A 6+ er)ooC R6 e 5 rev*e , +o) rev*e o+ --e ,

o3 ) e N R( e * *o+ e+;e be3ore *).r *br r8

A or *+; 8, e o +o) re@e= m*+e o+3 * )*+; ev* e+ e, re@ev 6 )e ) e re *b* *)8 o3 *)+e e , or6b )*)6)e ) e 3*+ *+; o3 3 ) o3 ) e N R(, + m*+* )r )*ve bo 8 ) ) e=-er)* e *+ *) -e * *6 ;me+) 3or ) ) o3 ) e )r*b6+ *+ e)erm*+*+; ere ) e e*; )o3 ev* e+ e *e or ) ev* e+ e * re *b e. T e 3 )6 3*+ *+; o3 ) e N R(, e+ 33*rme b8 ) e(A, re ;e+er 8 o+ 6 *ve o+ ) * (o6r).

Never) e e , ) ere re e= e-)*o+ e ere e, *+ ) e e=er * e o3 o6r * re)*o+ r8 --e )e >6r* * )*o+, m 8 be 6r;e )o ooC *+)o 3 )6 * 6e r * e *+ R6 e 45 -e)*)*o+. 'or *+ ) + e, e+) e -e)*)*o+er -er 6 *ve 8 e;e ) ) ) ere * *+ 633* *e+) or *+ 6b ) +)* ev* e+ e o+ re or )o

6--or) ) e 3 )6 3*+ *+; o3 ) e )r*b6+ or o6r) 6o, Se )*o+ 5, R6 e 1:: o3 ) e R6 e o3 (o6r)) )e *+ e=-re )erm ) ) *+ e 3* e be3ore m*+* )r )*ve or 6 *@>6 * * bo *e , 3 ) m 8 eeme e ) b * e o+ 8 *3 6--or)e b8 6b ) +)* ev* e+ e.:2 !(*) )*o+ om*))e *) *+ $m- * 6-- *e #r *br r8

Here, e 3*+ *) +e e r8 )o e= m*+e ) e re or )o e)erm*+e e) er ) e 3*+ *+; o3 ) e bor Arb*)er + ) eN R( re 6--or)e b8 6b ) +)* ev* e+ e.

T e 3 )6 3*+ *+; o3 ) e N R(+ ) e bor Arb*)er ere 6--or)e

b8 6b ) +)* ev* e+ e.

T e (o6r) o3 A--e r6 e ) ) P"A 3 * e )o -rove b8 6b ) +)* ev* e+ e *) e; )*o+ ) ) re -o+ e+)omm*))e ) o3 * o8 )8, or ) *+*m* )o ) e *+)ere ) o3 P"A. T e 33* v*) e=e 6)e b8 ) e em- o8ee

P"A, over om *) 6+ e+* b e mor e+ + 8, o +o) e erve re e+ e + re *; 8 6 -e ).::

Fe * ;ree.

A33* v*) m 8 be 633* *e+) )o e ) b * 6b ) +)* ev* e+ e. S6b ) +)* ev* e+ e me + ) ) mo6+) o3 ev* e+ e * re o+ b e m*+ m*; ) e-) e 6 )e )o >6 )*38 o+ 6 *o+.:4 I+( -*)o &e * (e+)er,I+ . v. N )*o+ bor Re )*o+ (omm* *o+,:5 ) * (o6r) ; ve re e+ e )o ) e 33* v*) o3 ) e 17 em- o8ee o3( -*)o &e * (e+)er, *) e 6r*)8 ;6 r , + ) e 6+*o+ member , )o ) e e33e ) ) ) +o )r*Ce vo)e )ooC - e, *+) ) e, * e ) e bor Arb*)er 6- e ) e 33* v*) o3 ) e em- o8ee , ;6 r + 6+*o+ member o3 ( -*)o&e * (e+)er, ) e N R( + ) e (o6r) o3 A--e r6 e ) ) ) e 33* v*) +o -rob )*ve v 6e be 6 e ) e8

ere e=e 6)e o6) o3 3e r. T e (o6r) o3 A--e o +o)e ) ) ) e 33* v*) ere 6+*3orm + -ro 3orm . I+rever *+; ) e (o6r) o3 A--e , ) * (o6r) r6 e +Rob e v*r)6 *br r8

T e e; )*o+ *+ ) e 3ore;o*+; 33* v*) o3 ) e over eer o3 ) e - rC*+; o) + ) e ) o e 6r*)8;6 r be *e ) e *m o3 ) e re -o+ e+) + ) e 3*+ *+; o3 ) e N R( ) ) e re) b o)*+; )ooC- e o+ November 10, 1997 *+ 3ro+) o3 ) e o -*) ) ) e or+er o3 S o6) & ;b +6 S)ree) +P + 8 Ave+6e, K6e


5/26

T * -r*+ *- e re*)er )e *+ IN( S *-m + ;eme+), I+ ., e) . v. &or .:7 I+ ) ) e, ) * (o6r) 6- e ) e33* v*) + ) )eme+) e=e 6)e b8 ) e ve e o33* er + re member )o 6--or) ) e *m ) ) ) e *+>6

o3 re -o+ e+)@em- o8ee ere e 3@*+3 * )e+Rob e v*r)6 *brr8

F * e re -o+ e+) o+)e+ e ) ) ) e 33* v*) + ) )eme+) o3 ) e ve e o33* er + * 3e ore member o6 +o) be ;*ve+ -rob )*ve v 6e ) e8 ere b* e , e @ erv*+;, + meree r 8, e +o+e) e e 3 * e )o -re e+) +8 ev* e+ e )o 6b ) +)* )e * o + ) eor8. Be * e , orre ) 8 -o*+)e o6) b8 ) e N R(, ) e orrobor )*+; 33* v*) + ) )eme+) o3 ) e ve e o33* er+) re member m6 ) be ) Ce+ o e + ++o) >6 ) be -er36+ )or* 8 * m* e e 3@erv*+; b e+) +8 o *+; ) ) ) e8 ere 8*+; e+ ) e8 m e ) e ) )eme+) ) ere*+.:? !(*) )*o+

om*))e $m- * 6-- *e .#r *br r8

Here, re -o+ e+) * +o) 6 e ev* e+ e )o o ) ) ) e 33* +) , *+ 6 *+; R m* *)o . N +o !N +o #, Fe+D. G + *+ *+ !G + *+ *+#, So- * &. Ver * !Ver * #, + (*e o (. D* +o !D* +o#, o3 om ere em- o8eP"A, ere oer e )o e=e 6)e + 33* v*) -re>6 * * )o re -o+ e+).

I+ 3 ), re -o+ e+) +ever 6e )*o+e ) e ev* e+)* r8 v 6e o3 ) e 33* v*) ) +8 ) ;e o3 ) e -ro ee *+; .:9 Aorre ) 8 ob erve b8 -e)*)*o+er , ) ere +o *+; e ev* e+ e 6bm*))e o *+; ) ) ) e8 ve e=er)e 6+ 6e

-re 6re o+ ) e 33* +) .40

A orre ) 8 e b8 bo) ) e bor Arb*)er + ) e N R(, ) e e 33* v*) o+ )*)6)e 6b ) +)* ev* e+ e )o -ro) ) re -o+ e+) omm*))e ) bre *+; ) e )r6 ) + o+3* e+ e re-o e o+ *m b8 P"A. T e o e ;6e +

6bor *+ )e o3 re -o+ e+) e=e 6)e ) e 33* v*) b e o+ ) e*r -er o+ C+o e ;e, + *) o6) +8 -roo3 o3oer *o+. T e*r ) )eme+) , * 6 e be o , orrobor )e e o) er + e ve +o room 3or o6b) )o ) e )omm*))e b8 re -o+ e+).

Re -o+ e+) v * 8 * m* eo+ ) e ;ro6+ o3 o o3 )r6 ) + o+3* e+ e.T e 33* v*) o3 * o@em- o8ee re

633* *e+) b * 3or P"A o o3 )r6 )

+ o+3* e+ e.

Ar)* e 297! #41 o3 ) e bor (o e, 42 me+ e , -rov* e ) ) + em- o8er m 8 )erm*+ )e + em- o8ee 3or* 36 bre b8 ) e em- o8ee o3 )r6 ) re-o e *+ *m b8 * em- o8er or 6 8 6) or*e ) )o re;6 )*o+ b8 ) e S) )e *+) e e=er * e o3 *) - r mo6+) -o * e -o er, ) ere * o + e 6 8 e ) b * e -r*+ *- e ) ) + em- o8er ++o

om-e e )o o+)*+6e *+ em- o8me+) + em- o8ee ;6* )8 o3 ) *+*m* )o ) e *+)ere ) o3 ) e em- o8er + >6 )*38*+; o o3 o+3* e+ e *+ *m.4:

I+ Br* )o &8er S 6*bb !P * .#, I+ . v. B b +,44 ) * (o6r) e=- *+e ) ) ) e 3o o *+; re 6* *)e m6 ) be )* 3*e)o >6 )*38 v * * m* b e o+ o o3 )r6 ) + o+3* e+ e, )o *)+Rob e v*r)6 *br r8

!1# T e em- o8ee o+ er+e m6 ) be o+e o *+; -o *)*o+ o3 )r6 ) + o+3* e+ e45 +

!2# T ere m6 ) be + ) ) ) o6 >6 )*38 ) e o o3 )r6 ) + o+3* e+ e.4 ( +Rob e V*r)6 *br r8r *br r8

T e e ) o re 6* *)e re -re e+) *+ ) * e.

A )o ) e 3*r ) re 6* *)e, em- o8ee o *+; -o *)*o+ o3 )r6 ) + o+3* e+ e m 8 be *3*e *+)o ) o. T e 3 o+ * ) o3 ) e m + ;er* em- o8ee o re ve )e *) ) e -o er + -rero; )*ve )o 8 o +


6/26

m + ;eme+) -o * *e + )o *re, )r + 3er, 6 -e+ , 8 o33, re , * r;e, *;+ or * *- *+e em- o8ee ore33e )*ve 8 re omme+ 6 m + ;er* )*o+ . T e e o+ o+ * ) o3 *er , 6 *)or , -ro-er)8

6 )o * + , e) ., o *+ ) e +orm + ro6)*+e e=er * e o3 ) e*r 36+ )*o+ , re;6 r 8 + e *;+*3* +) mo6+mo+e8 or -ro-er)8. 47

T e bor Arb*)er + ) e N R( orre ) 8 r6 e ) ) re -o+ e+) m + ;er* em- o8ee. A) ) e )*me o3 *)erm*+ )*o+ o+ %6+e 1 , 2002, re -o+ e+) ) e & + ;er@*+@( r;e o3 ) e (eb6 o-er )*o+ + ) e D*re )or o3

) e V* 8 @&*+ + o o-er )*o+ o3 P"A.4? T e bor Arb*)er +o)e ) ) re -o+ e+) 3 * e )o * -6)e ) ) *-o *)*o+, ) e *; e ) r +C*+; o33* er o3 P"A V* 8 @&*+ + o o-er )*o+ , em + e 6)mo ) )r6 ) +

o+3* e+ e.49 T e N R( r6 e ) ) D*re )or o3 ) e V* 8 @&*+ + o o-er )*o+ , re -o+ e+) bo6+ b8 more= )*+; orC e) * + e=-e )e )o 6- o ) e *;+*)8 + *+)ere ) o3 P"A eve+ *3 * o-*+*o+ r + o6+)er )o) ) o3 * em- o8er.50

T e e o+ re 6* *)e * o -re e+). P"A o o3 )r6 ) + o+3* e+ e * b e o+ * 36 bre o3 )r6 ),3o6+ e o+ e r 8 e ) b * e 3 ) . I+ &e+ o< v. H&S (re *) (or-or )*o+,51 ) * (o6r) * )*+;6* e ) e e;reeo3 -roo3 re 6*re *+ -rov*+; o o3 )r6 ) + o+3* e+ e *+ m + ;er* em- o8ee o+ o+e + , + r +C + 3em- o8ee o+ ) e o) er +Rob e v*r)6 *br r8

T e e;ree o3 -roo3 re 6*re *+ bor e * +o) )r*+;e+) *+ o) er )8-e o3 e e . I) m6 ) be+o)e , o ever, ) ) re e+) e * *o+ o3 ) * (o6r) ve * )*+;6* e ) e )re )me+) o3 m + ;er*em- o8ee 3rom ) ) o3 r +C@ + @3* e -er o++e , *+ o3 r ) e -- * )*o+ o3 ) e o )r*+e o3 o o3)r6 ) + o+3* e+ e * o+ er+e . T 6 , *) re -e ) )o r +C@ + @3* e -er o++e , o o3 )r6 ) +

o+3* e+ e ;ro6+ 3or v * * m* re 6*re -roo3 o3 *+vo veme+) *+ ) e e;e eve+) *+6e )*o+, + ) ) mere 6+ orrobor )e er)*o+ + 6 )*o+ b8 ) e em- o8er * +o) be633* *e+). B6) re; r m + ;er* em- o8ee, ) e mere e=* )e+ e o3 b * 3or be *ev*+; ) ) 6

em- o8ee bre e ) e )r6 ) o3 * em- o8er o6 633* e 3or * * m* . He+ e, *+ ) e e o3m + ;er* em- o8ee , -roo3 be8o+ re o+ b e o6b) * +o) re 6*re , *) be*+; 633* *e+) ) ) ) ere *

ome b * 3or 6 o o3 o+3* e+ e, 6 e+ ) e em- o8er re o+ b e ;ro6+ )o be *eve) ) ) e em- o8ee o+ er+e * re -o+ *b e 3or ) e -6r-or)e m* o+ 6 ), + ) e + )6re o3 *- r)* *- )*o+ ) ere*+ re+ er *m 6+ or) 8 o3 ) e )r6 ) + o+3* e+ e em + e b8 *-o *)*o+.52 !(*) )*o+ om*))e $m- * 6-- *e #

r *br r8

Re -o+ e+) bre e ) e )r6 ) re-o e *+ *m b8 omm*))*+; ) e 3o o *+; ) !1# +e;o)* )*+; )o )r + 3er )o om-e)*+; 3*rm * e )* em- o8e *) P"A !2# e+>o*+*+; +6mber o3 P"A *e+) )o )r + 3er ) e*r 6 *)

b6 *+e )o om-e)*+; 3*rm !:# *+v*)*+; P"A ) 33 )o >o*+ *m *+ * )r + 3er )o om-e)*+; 3*rm + !4#e+>o*+*+; P"A ) 33 )o e+; ;e *+ 8m- ) 8 )r*Ce 6r*+; * -reve+)*ve 6 -e+ *o+.

T e 33* v*) o3 N +o ,5: G + *+ *+,54 Ver * ,55 + D* +e5 o re -o+ e+) omm* *o+ o3 ) e e )* re *+ bre o3 ) e )r6 ) + o+3* e+ e re-o e *+ *m b8 P"A.

O+ ) e 3*r ) ), N +o + rr )e o re -o+ e+) )o *m bo6) * &emor + 6m o3 U+ er ) + *+; *) &@EP&+ * *m-e+ *+; )r + 3er )o ) e om-e)*)or 3*rm+Rob e v*r)6 *br r8

7. = = = U-o+ * rr*v *+ D v o, -r*or )o o6r mee)*+; *) *e+) , e me) o3 6 !D v o o33* e ) 33

member # + )o 6 ; *+ bo6) ) e &@EP&G o33er + * 36)6re - + . He eve+ )o me ) ) ere 8 *;+e &emor + 6m o3 U+ er ) + *+; *) &@EP&G + ) ) e * ) r) o+ %6+e 15,2002. He o )o 6 ) ) ) e -6r-o e o3 ) e mee)*+; *) *e+) * )o *+3orm ) em bo6) ) emer;erL omb*+ )*o+ + ere e * be ;o*+;. Amo+; ) e *e+) , * e v* *)e re B6rme* )er " F *+ S + *+ v* + (o+)r )or !BFS(# &*+ + o, I+ ., A * I+ 6 )r*e , I+ ., N er + $br *mP * *--*+e , A&$ Tr ve L(o+ )r6 )*o+, Te +o Tr e D v o, ' rm (oo- + &* ro@$+)er-r* e B +C,

* re b e *+ D v o (*)8. D6r*+; ) e * v* *) , &r. e-o+ )o ) e *e+) *+ m8 -re e+ e ) )e * e v*+; P"A 6e )o ) e *m-e+ *+; mer;er o3 SGV + P"A + ) ) e * +o) >o*+ ) e mer;er

L omb*+ )*o+ b6) *+ )e e * be >o*+*+; &@EP&G. He o me+)*o+e * - + + re m 3or ) eo6+)r8. T ere ere ever *+ ) + e o e me+)*o+e o6r om-e)*)or, &@EP&G, * e *

*+)e+ *+; )o >o*+, = = =57 ( +Rob e V*r)6 *br r8r *br r8


7/26

I+ $ *< e I+)er+ )*o+ !P * *--*+e # I+ . v. (o6r) o3 A--e5? e r6 e +Rob e v*r)6 *br r8

O+e o er) + *+)ere ), or -er3orm ) ver e or * o8 o o+e em- o8er omm*) breo3 + *m- *e o+ *)*o+ o3 ) e o+)r ) o3 em- o8me+) * m 8 rr +) * r;e, , 3ore= m- e, ere o+e e re) 8 e+; ;e *+ b6 *+e * re+ er *m om-e)*)or + r*v o3 *em-*o8er . A * e 3rom +8 6)*e e=-re 8 *m-o e 6-o+ or 6+ er) Ce+ b8 ) e em- o8ee *+ ) e

o+)r ) o3 em- o8me+), ) e *m- *e v r*o6 ob *; )*o+ + 6+ er) C*+; b8 + em- o8ee *+

e+)er*+; *+)o o+)r ) o3 em- o8me+), = = = A+ em- o8er ) e r*; ) )o e=-e ) o8 )8 3rom *em- o8ee o+; ) e em- o8me+) re )*o+ *- o+)*+6e . Im- * *) *+ ) e o+)r ) o3em- o8me+) * ) e 6+ er) C*+; ) ) ) e em- o8ee be 3 *) 36 )o ) e *+)ere ) o3 ) e em- o8er

6r*+; ) e )erm o3 ) e em- o8me+). F e+ + em- o8ee e *ber )e 8 6*re + *+)ere ) ver e )o* em- o8er, e * * o8 , + * * r;e * >6 )*3*e , = = =59 !(*) )*o+ om*))e $m- *6-- *e .#r *br r8

Re -o+ e+) o o e G + *+ *+ o-8 o3 e))er -6r-or)e 8 r*))e+ b8 &@EP&G * -rom* e re -o+ e+) bo+6 *+ e e *eve er) *+ reve+6e ) r;e) .0

O+ ) e e o+ ), N Mo + rr )e o re -o+ e+) ))em-)e )o -er 6 e P"A *e+) )o )r + 3er )o &@EP&G +Rob e v*r)6 *br r8

7. I+ & 8 2002, &r. e-o+ e 6- 3rom (eb6 + re 6e )e m8 e re) r8 )o e) mee)*+; *) o6r*e+) . S*+ e ) e D v o ) 33 member re more *+ *+e )o >o*+ SGV, e re e *) +) )o e) 6-

mee)*+; *) o6r *e+) e +)e )o br*+; o6r *e+) 6-o+ o6r )r + 3er. I )o m8 e re) r8 )oC *m bo6) ) e -6r-o e o3 ) e mee)*+; . S e )o me )er ) ) &r. e-o+ Ce er o Ce

6 6e )*o+. To vo* 6++e e r8 r;6me+), e o+)*+6e e))*+; 6- ) e mee)*+; , = = = He o*+3orme ome o3 ) e *e+) e me) ) ) ) e8 o6 be ;e))*+; ) e or) e+ o3 ) e b r; *+ *3 ) e8

o e ! * # )o ) 8 *) P"A *+ e ) e 6 *)8 o3 *) erv* e * e=-e )e )o e)er*or )e re 6 ) o3 ) emer;er. &oreover, e o )o ome o3 ) em ) ) ) e b re-6) )*o+ o3 SGV * ) *+) ) e re-6) )*o+ o3 P"A + ) * b re-6) )*o+ * re 6 ) *+ ) e e *ver8 o3 -oor erv* e )o ) e *e+) .

?. O+ & 8 2?, 2002, 6r*+; 6+ )*me, e ; *+ *+3orme *m bo6) o6r 3*+ ) + re; r )* ) e be ) o-)*o+ 3or 6 )o ) Ce, * * )o >o*+ SGV. 'rom ) ) mome+), ) e moo o3 &r. e-o+

+;e . F e+ e re 6me o6r mee)*+; ) ) 3)er+oo+ *) o+e o3 o6r *e+) , ) e 8 e o+ 6 )e) e mee)*+; )o) 8 *33ere+) 3rom o6r -rev*o6 mee)*+; . T * )*me, e ) Ce o) bo6) &@EP&G. Obv*o6 8, )r8*+; )o o+v*+ e ) e *e+) )o move )o &@EP&G. He eve+ ; ve * P"A *+; r

+ r*bb e * e +6mber o ) ) e + e * 8 be o+) )e .1!$m- * 6-- *e .#r *br r8

Ver * + D* +o >o*+) 33* v*) o -rove re -o+ e+) *+)e+)*o+ )o e P"A *e+) 8 3rom P"A+Rob e v*r)6 *brr8

. = = = &r. e-o+ eve+ *+ )r6 )e 6 )o 6mm r*o*+*+; ) e mer;er, ere e o6 -rob b 8 ;o, + )o ) em ) )P"A erv* e * e=-e )e )o e)er*or )e.

A e b8 ) e N R(, * e re -o+ e+) m 8 ve ) e *ber)8 )o e=-re * v*e o3 ) e -ro-o e mer;er, e +o) >6 )*3*e e+ e m e * o + o+v* )*o+ ;o overbo r , b8 )e *+; *e+) o3 P"A ) ) ) e ))er re-6) )*o+-rov* er o3 6 *)8 erv* e * e=-e )e )o e)er*or )e 6e )o ) e mer;er + 36r) er *+ 6 e ) em )o - )ro+*o*+. 4 Re -o+ e+), ) e D*re )or o3 P"A V* 8 @&*+ + o o-er )*o+ , o e 6)*


8/26

o8 )8 )o P"A, * em- o8er, )o *+3orm *) *e+) bo6) P"A b6 *+e e * *o+ )o mer;e, 3or o+; e em- o8e b8 P"A.

A )o ) e ) *r ), N Mo + rr )e o re -o+ e+) -er 6 e * o e ;6e + 6bor *+ )e )o )r + 3er ) &EP&G +Rob e v*r)6 *br r8

. Some)*me *+ A-r* 2002, )o;e) er *) o) er & + ;er + D*re )or , e ))e+ e mee)*+; *)) e Ce8 - r)+er o3 SGV + P"A. T e 3o o *+; mor+*+;, I )o &r. e-o+ ) ) m8 D v o ) 33

member re more *+ *+e )o >o*+ *) SGV. He+ e, &r. e-o+ )o me ) ) e * +o o+;er *+ 6 eD v o o33* e 3or +8 o-)*o+ . Ho ever, or *+; )o &r. e-o+ ) e 8 & + +; 8 @EP&G ! &@EP&G#o33er ome ! * # 6- + e )o me )o o+ * er * o-)*o+ + * em*+ )e ) e *+3orm )*o+ )o m8

) 33. He eve+ e 6- m8 e re) r8 + m8 e+*or ) 33 member bo6) ) e &@EP&G o33er +-er 6 e ) em )o >o*+ &@EP&G. A or *+; )o *m, &@EP&G * o33er*+; ) ree mo+) bo+6 3or ) eD*re )or + & + ;er , ) o mo+) bo+6 3or e+*or ) 33 + mo+) bo+6 3or >6+*or ) 33. He ome+)*o+e ) ) *3 e o6 mee) ) e P ,000,000 ;ro reve+6e + ) e P 1,500,000 +e) *+ ome!+o) )o )o m8 ) 33#, e * re e*ve P 500,000 bo+6 , * e *+)e+ )o m Ce v * b e 3or o36 . &r. e-o+ * ver8 -er * )e+) *+ o+v*+ *+; 6 )o o+ * er ) e &@EP&G o-)*o+.5 r *br r8

G + *+ *+ + rr )*o+ o -rove ) ) re -o+ e+) e=- *+e )o * o e ;6e + 6bor *+ )e ) e om-e+ )- C ;e + be+e3*) o33ere b8 &@EP&G+Rob e v*r)6 *br r8

. Some)*me *+ & 8 2002, or *+; )o &r. e-o+, 8 & + +; 8 @EP&G ! &@EP&G# o33ere ) reemo+) bo+6 3or ) e D*re )or + & + ;er , ) o mo+) bo+6 3or e+*or ) 33 + mo+) bo+63or >6+*or ) 33. He o e )o me 2@- ;e e))er *+ - *+ bo+ - -er * e *me me 3rom &@EP&G. U+ er ) e * e))er, *3 e o6 mee) er) *+ reve+6e ) r;e) , e * re e*ve P 500,000bo+6 , * e *+)e+ )o m Ce v * b e )o o3 6 .r *br r8

Ver * + D* +o >o*+) 33* v*) 36r) er -rove re -o+ e+) *+)e+)*o+ )o e P"A ) 33 )o )r + 3er )o ) eom-e)*+; 3*rm +Rob e v*r)6 *br r8

. ) ere * +o )r6) ) oever )o ) e *m o3 & . o6* 8+ N. Ambo +;, 3ormer o+)r )6em- o8ee o3 P"A , ) ) &r. e-o+ +ever m- *;+e mo+; ) e em- o8ee )o b + o+ P"A . A ) eem- o8ee o3 P"A (eb6 (*)8 O33* e C+e 3or 3 ) ) ) &r. e-o+ ;;re *ve 8 *+v*)e ) e ) 33o3 P"A (eb6 (*)8 O33* e )o >o*+ *m e+ e >o*+ &@EP&G. He Ce-) o+ r-*+; o+ * *m ) )

e ve +o 36)6re *) P"A + ) ) m6 be))er om-e+ )*o+ - C ;e *) 6 o6 ee * e )o >o*+ *m *+ &@EP&G. = = = He o *+ )r6 )e 6 )o -re- re 6mm r8 o3 o6r om-e+ )*o+

- C ;e ) ) e o6 -re e+) )o &@EP&G. F e+ &r. e-o+ e+) o+ e ve *) - 8, e *+ )r6 )e 6)o ;*ve )o *m o 6me+) , *+ 6 *+; ) e r 3) o3 * em- o8me+) o+)r ) *) &@EP&G, + )o

e e)e ) e 3* e *+ o6r om-6)er -er) *+*+; )o &@EP&G.7 !$m- * 6-- *e .#r *br r8

I+ &o *+ v. P *3* P + , I+ .,? ) * (o6r) r6 e +Rob e v*r)6 *br r8

=== &oreover, + em- o8er -ro)e ) b e *+)ere ) *+ ) e 6 )omer re )*o+ *- o3 *) 3ormerem- o8ee e ) b * e + Lor +6r)6re * e em- o8e b8 ) e em- o8er, + * e+)*) e )o -ro)e ) *) e 3 3rom ) e r* C ) ) 3ormer em- o8ee m*; ) --ro-r* )e 6 )omer b8 ) C*+; 6+3 *r v +) ;e o3 ) e

o+)r ) eve o-e * e orC*+; 3or ) e em- o8er. F * e )*+; + ;e+) o3 * em- o8er, +

em- o8ee o e ) e 6)8 o3 3* e *)8 + o8 )8. Be*+; 3* 6 * r8, e ++o) ) *+ o+ * )e+) 8 *) *;e+ 8 or )r6 ). He ++o) o * *) * em- o8er 6 )omer or o@em- o8ee 3or *m e 3 or 3or b6 *+e om-e)*)or o3 * em- o8er, = = =9 !(*) )*o+ om*))e $m- * 6-- *e .#r *br r8

A )o ) e 3o6r) ), G + *+ *+ + rr )e ) ) re -o+ e+) e+>o*+e ) e ) 33 o3 P"A (eb6 O33* e )o o+ 6 ) 8m- ) 8 )r*Ce 6r*+; re -o+ e+) -reve+)*ve 6 -e+ *o++Rob e v*r)6 *br r8

7. F e+ &r. e-o+ re 6*re )o ) Ce e ve o3 b e+ e *) - 8 b8 P"A, *e Ce ) e ) 33 o3 P"A(eb6 O33* e )o >o*+ *m *+ &@EP&G + e+>o*+e 6 )o 8m- ) *


9/26

o*+; ) ) be 6 e I be *eve *) * +o) --ro-r* )e )o b + o+ o6r >ob *+ e ) e * 6e o3 e ve o3b e+ e oe +o) o+ er+ 6 .70 !$m- * 6-- *e .#r *br r8

Ver * + D* +o o + rr )e *+ ) e*r >o*+) 33* v*) ) ) re -o+ e+) *+v*)e ) em )o e+; ;e *+ 8m- ) 8 )r)o - r 8o*+ *m *+ &@EP&( + e+>o*+e 6 )o 8m- ) *6 ) 6 e. T e 3*r )+o)* e m6 ) o+) *+ ) )eme+) o3 ) e 6 e 3or )erm*+ )*o+, + 33or ) e em- o8ee m- e o--or)6+*)8 )be e r + )o e3e+ *m e 3 *) ) e * ) + e o3 re-re e+) )*ve *3 e o e *re . T e e o+ +o)* e, *) e +o)* e o3 )erm*+ )*o+, m6 ) *+ * )e ) ) 6-o+ 6e o+ * er )*o+ o3 ) e *r 6m ) + e , ;ro6+ ve bee+e ) b * e )o >6 )*38 ) e em- o8ee )erm*+ )*o+.

P"A om- *e *) ) e ) o@+o)* e r6 e 6+ er Ar)* e 292 o3 ) e bor (o e, me+ e . P"A erve re -o+ e+)*) ) e 3*r ) +o)* e )e & 8 :0, 2002 * -ro-er 8 --r* e *m o3 ) e *+ * e+) ) ) o+)r*b6)e )o P"A o

o3 )r6 ) + o+3* e+ e. Re -o+ e+) e+) * re- 8 )e %6+e , 2002 ere e >6 )*3*e * )*o+ , + -re e+)* e3e+ e ; *+ ) ) e 6 )*o+ ; *+ ) *m. A3)er ev 6 )*o+ o3 ) e m ))er r * e *+ re -o+ e+) re- 8, e+) +o)* e o3 )erm*+ )*o+ )e %6+e 1:, 2002 *+3orm*+; *m ) ) ) e )o) *)8 o3 * re )*o+ + )6 )*o+

re )*o+ )o ) e -ro-o e omb*+ )*o+ o3 P"A + SGV -6) * o8 )8 )o er*o6 o6b), + e )o om- e)e o o3 ) e - r)+er )r6 ) + o+3* e+ e *+ *m. T * * ) e e o+ +o)* e re 6*re 6+ er Ar)* e 292

Re -o+ e+) ++o) r;6e ) ) e r*+;, *+ve )*; )*o+ or +8 emb + e ) ereo3 o6 ve bee+ o+ 6 )ebe3ore e )erm*+ )e . I+ Pere< v. P * *--*+e Te e;r - + Te e- o+e (om- +8,75 ) * (o6r) e=- *+e ) eme +*+; o3 m- e o--or)6+*)8 )o be e r 6+ er Ar)* e 292 o3 ) e bor (o e, me+ e +Rob e v*r)6 *br r8

A e r*+; me + ) ) - r)8 o6 be ;*ve+ + e )o 6 e * ev* e+ e )o 6--or) * * e o3) e e + ) ) ) e ev* e+ e o6 be ) Ce+ *+)o o6+) *+ ) e >6 * )*o+ o3 ) e o+)rover 8. Tobe e r oe +o) me + verb r;6me+) )*o+ o+e *+ m6 o+e m 8 be e r >6 ) e33e )*ve 8


10/26

) ro6; r*))e+ e=- + )*o+ , 6bm* *o+ or - e *+; . T ere3ore, * e ) e - r e m- eo--or)6+*)8 )o be e r m 8 *+ 3 ) *+ 6 e + )6 e r*+;, *) * +o) *m*)e )o 3orm e r*+;o+ 8. I+ o) er or , ) e e=* )e+ e o3 + )6 , 3orm )r* @)8-e e r*+;, ) o6; -re3erre , * +o)

b o 6)e 8 +e e r8 )o )* 38 ) e em- o8ee r*; ) )o be e r .7

= = =

! # m- e o--or)6+*)8 )o be e r me + +8 me +*+;36 o--or)6+*)8 !verb or r*))e+# ;*ve+ )o

) e em- o8ee )o + er ) e r;e ; *+ ) *m + 6bm*) ev* e+ e *+ 6--or) o3 * e3e+ e,e) er *+ e r*+;, o+3ere+ e or ome o) er 3 *r, >6 ) + re o+ b e 8.

!b# 3orm e r*+; or o+3ere+ e be ome m + )or8 o+ 8 e+ re 6e )e b8 ) e em- o8ee *+r*)*+; or 6b ) +)* ev* e+)* r8 * -6)e e=* ) or om- +8 r6 e or -r )* e re 6*re *), or e+*m* r *r 6m ) + e >6 )*38 *).

! # ) e m- e o--or)6+*)8 )o be e r ) + r *+ ) e bor (o e -rev * over ) e e r*+; oro+3ere+ e re 6*reme+) *+ ) e *m- eme+)*+; r6 e + re;6 )*o+ .77!(*) )*o+ om*))e $m- *6-- *e #.

r *br r8

De -*)e ) e C o3 3orm e r*+; or *+ve )*; )*o+, re -o+ e+) ;*ve+ m- e o--or)6+*)8 )o be e r . He ;*ve+ ) e o--or)6+*)8 )o re36)e ) e r;e ; *+ ) *m. I+ 3 ), * re- 8 )e %6+e , 2002 ) oro6; 8 * 6 e

* >6 )*3* )*o+ + e3e+ e )o ) e 6 )*o+ *m-6)e o+ *m.7? He ++o) r;6e ) ) ) e b e+ e o3 3orme r*+; or *+ve )*; )*o+, e -*)e * e+* )o ) e 6 )*o+ , o+ )*)6)e e3e ) o+ * * m* 3rom

em- o8me+).79

I+ v*e o3 ) e 3ore;o*+;, re -o+ e+) * m* 3rom em- o8me+) * v * . T 6 , re -o+ e+) mo+e) r8 *m; *+ ) P"A + -e)*)*o+er ve +o e; + 3 )6 b * .

FH$R$'OR$, -rem* e o+ * ere , ) e -e)*)*o+ * ereb8 GRANT$D + ) e e * *o+ o3 ) e (o6r) o3 A--e )e'ebr6 r8 15, 200 * ereb8 R$V$RS$D. Fe A''IR& ) e De * *o+ )e & r :1, 2005 + ) e Re o 6)*o+ )e%6 8 25, 2005 o3 ) e N )*o+ bor Re )*o+ (omm* *o+ * 33*rme ) e A6;6 ) 1:, 200: De * *o+ o3 ) e Arb*)er.

SO ORD$R$D.+rob e v*r)6 *br r8

Ve o, %r., !( *r-er o+#, Per ) , V* r m , %r., + Re8e , %%., o+ 6r.

$+ +o)e

1 B e o+ P"A m +*3e ) )*o+ )e %6 8 17, 200: be3ore ) e bor Arb*)er,re -o+ e+) 6bm*))e ev* e+ e ) e 33* v*) o3 o6* 8+ Ambo +; + & r; re) S6 +&. $ orr . T e 33* v*) ere 6bm*))e o+ 8 3)er ) e e e eeme 6bm*))e 3or

e * *o+. T e bor Arb*)er * +o) ;*ve re e+ e )o Ambo +; 33* v*) be 6 e o3o6b) o+ Ambo +; mo)*v )*o+ 3or e=e 6)*+; ) e 33* v*). T e bor Arb*)er +o)e ) )

) e re;6 r*< )*o+ o3 er em- o8me+) *) P"A )ro+; 8 re omme+ e b8re -o+ e+) + e orCe br*e3 8 ) &@EP&G 3)er ) e )erm*+ )*o+ o3 er o+)r )6em- o8me+) *) P"A. T e bor Arb*)er * +o) o o+ * er ) e 33* v*) o3 $ orr .S e * +o) ) )e ) ) e -re e+) 6r*+; ) e *e+) v* *) o+ 6 )e b8 re -o+ e+)*+ & 8 2002. T 6 , er 33* v*) +o) +e e r* 8 *+ o+ * )e+) *) ) e 33* v*) o3N Mo + ) ere3ore * +o) e ) b * ) ) re -o+ e+) * +o) omm*) ) e )

om- *+e o3 * . ) 1 :@1 4. T e N R( * +o) * 6 ) e e ) o 33* v*) *+ *)De * *o+. Re -o+ e+) +o o+;er r * e ) e * 6e *+ * -e)*)*o+ 3or er)*or r* be3ore ) e(o6r) o3 A--e +or *+ * omme+) be3ore ) * (o6r).

:2 ( reer P * *--*+e S **-m + ;eme+ , I+ . v. Ser+ , G.R. No. 1720? , De ember :,


11/26

2012, ? S(RA 7 , ?4@ ?5 *)*+; &o+) 8 v. Tr mme & +* (or-or )*o+, G.R. No.1?::29, A6;6 ) 27, 2009, 597 S(RA ::4, :42@:4:.

:9 B e o+ P"A m +*3e ) )*o+ )e %6 8 17, 200: be3ore ) e bor Arb*)er,re -o+ e+) * +o) 3* e re- 8 ro o, -. 4 ?. He o * +o) r * e +8 6e )*o+ )o ) e

re *b* *)8 o3 ) e 33* +) *+ * &emor + 6m o3 A--e be3ore ) e N R(. $ve+re -o+ e+) -e)*)*o+ be3ore ) e (o6r o3 A--e , * *+; ) e De * *o+ o3 ) e borArb*)er + ) e N R(, * e+) o+ ) e m ))er.

41 ART. 297. 2?2 Term*+ )*o+ b8 $m- o8er. @A+ em- o8er m 8 )erm*+ )e +em- o8me+) 3or +8 o3 ) e 3o o *+; 6 e+Rob e v*r)6 *br r8

! # Ser*o6 m* o+ 6 ) or * 36 * obe *e+ e b8 ) e em- o8ee o3 ) e 36 or er o3 *em- o8er or re-re e+) )*ve *+ o++e )*o+ *) * orC!b# Gro + b*)6 +e; e ) b8 ) e em- o8ee o3 * 6)*e! # 'r 6 or * 36 bre b8 ) e em- o8ee o3 ) e )r6 ) re-o e *+ *m b8 * em- o8eror 6 8 6) or*


12/26

) e -e)*)*o+ mer*)or*o6 . I) rev*e e ) e 3 )6 3*+ *+; o3 ) e N R(, + *) r6 e ) ) -e)*)*o+er * e; 86 -e+ e + * m* e re -o+ e+) 3rom em- o8me+). I) 36r) er r6 e ) ) ) e re -o+ e e+*e 6e

-ro e .I 6eB e o+ -e)*)*o+er e; )*o+ o3 error , ) e * 6e 3or re o 6)*o+ be3ore ) * (o6r) re+Rob e v*r)6 *br r8

4. F e) er ) e 3 )6 3*+ *+; o3 bo) ) e N R( + ) e bor Arb*)er ere 6--or)e b86b ) +)* ev* e+ e

5. F e) er re -o+ e+) e-r*ve o3 * r*; ) )o 6e -ro e +:. F e) er ) e -e)*)*o+er re >o*+) 8 + ever 8 * b e *) P"A )o - 8 ) e >6 ;me+) r .

I.

T e 3 )6 3*+ *+; o3 ) e N R( + ) e bor Arb*)er ere 6--or)e b8 6b ) +)* ev* e+ e. T e 33* v*)e=e 6)e b8 ) e 33* +) o+ )*)6)e 6b ) +)* ev* e+ e + 633* *e+) b * )o -rove ) ) re -o+ e+) omm

) bre *+; ) e )r6 ) + o+3* e+ e re-o e o+ *m b8 P"A. I+ 3 ), re -o+ e+) +ever 6e )*o+e ) eev* e+)* r8 v 6e o3 ) e 33* v*) ) +8 ) ;e o3 ) e -ro ee *+; .F * e ) e r*; ) o3 + em- o8er )o 3ree 8 e e ) or * r;e * em- o8ee * 6b>e ) )o re;6 )*o+ b8 ) e S) )e *+) e e=er * e o3 *) - r mo6+) -o * e -o er, ) ere * o + e 6 8 e ) b * e -r*+ *- e ) ) + em- o8er ++o

om-e e )o o+)*+6e *+ em- o8me+) + em- o8ee ;6* )8 o3 ) *+*m* )o ) e *+)ere ) o3 ) e em- o8er + >6 )*38*+; o o3 o+3* e+ e *+ *m.4:

I+ Br* )o &8er S 6*bb !P * .#, I+ . v. B b +,44 ) * (o6r) e=- *+e ) ) ) e 3o o *+; re 6* *)e m6 ) be )* 3*e)o >6 )*38 v * * m* b e o+ o o3 )r6 ) + o+3* e+ e, )o *)+Rob e v*r)6 *br r8

!1# T e em- o8ee o+ er+e m6 ) be o+e o *+; -o *)*o+ o3 )r6 ) + o+3* e+ e45 +

!2# T ere m6 ) be + ) ) ) o6 >6 )*38 ) e o o3 )r6 ) + o+3* e+ e.4 ( +Rob e V*r)6 *br r8r *br r8

T e e ) o re 6* *)e re -re e+) *+ ) * e.

e-o+ * ) e & + ;er@*+@( r;e o3 ) e (eb6 o-er )*o+ + ) e D*re )or o3 ) e V* 8 @&*+ + o o-er )*o+ o3 P* * ) e *; e ) r +C*+; o33* er o3 P"A V* 8 @&*+ + o o-er )*o+ , em + e 6)mo ) )r6 ) + o+3*

Re -o+ e+) bre e ) e )r6 ) re-o e *+ *m b8 omm*))*+; ) e 3o o *+; ) !1# +e;o)* )*+; )o )r + 3er )o

om-e)*+; 3*rm * e )* em- o8e *) P"A !2# e+>o*+*+; +6mber o3 P"A *e+) )o )r + 3er ) e*r 6 *)b6 *+e )o om-e)*+; 3*rm !:# *+v*)*+; P"A ) 33 )o >o*+ *m *+ * )r + 3er )o om-e)*+; 3*rm + !4#e+>o*+*+; P"A ) 33 )o e+; ;e *+ 8m- ) 8 )r*Ce 6r*+; * -reve+)*ve 6 -e+ *o+.

II. Re -o+ e+) +o) e-r*ve o3 6e -ro e

Ar)* e 292!b#, o3 ) e bor (o e, me+ e , *+ re )*o+ )o ) e ) e+ -- * b e Se )*o+ 2! #, R6 e I o3 ) eIm- eme+)*+; R6 e o3 BooC VI o3 ) e bor (o e, me+ e b8 De- r)me+) Or er No. 10, er*e o3 1997,re 6*re ) e em- o8er )o ;*ve ) e em- o8ee ) o r*))e+ +o)* e -r*or )o * )erm*+ )*o+ 3or >6 ) 6 e. P"A

om- *e *) ) e ) o +o)* e ) e 3*r ) o+e * ) e & 8 :0, 2002 re 6*r*+; e=- + )*o+ 3rom e-o+ + ) e e o+* ) e %6+e 17, 2002 +o)* e o3 )erm*+ )*o+.De -*)e ) e C o3 3orm e r*+; or *+ve )*; )*o+, re -o+ e+) ;*ve+ m- e o--or)6+*)8 )o be e r . He ;*ve+ ) e o--or)6+*)8 )o re36)e ) e r;e ; *+ ) *m. I+ 3 ), * re- 8 )e %6+e , 2002 ) oro6; 8 * 6 e

* >6 )*3* )*o+ + e3e+ e )o ) e 6 )*o+ *m-6)e o+ *m. He ++o) r;6e ) ) ) e b e+ e o3 3orme r*+; or *+ve )*; )*o+, e -*)e * e+* )o ) e 6 )*o+ , o+ )*)6)e e3e ) o+ * * m* 3romem- o8me+).

I+ v*e o3 ) e 3ore;o*+;, re -o+ e+) * m* 3rom em- o8me+) * v * . T 6 , re -o+ e+) mo+e) r8 *m; *+ ) P"A + -e)*)*o+er ve +o e; + 3 )6 b * .

THIRD DIVISION

G.R. No. 194 ? , Se-)ember 2:, 2015


13/26

TRI@( G$N$RA S$RVI($S, Pe)*)*o+er, v. NO AS(O B. &ATUTO, RO&$O $. &AGNO AND $ VIRA B.AVI A, Re -o+ e+) .

D $ ( I S I O N

P$RA TA, %.

' *r ev* e+)* r8 r6 e * ) )e ) ) be3ore em- o8er re b6r e+e )o -rove ) ) ) e8 * +o) omm*) * e;* m* , *) * *+ 6mbe+) 6-o+ ) e em- o8ee )o 3*r ) e ) b * b8 6b ) +)* ev* e+ e ) e 3 ) o3 * or er* m* .1

'or re o 6)*o+ o3 ) * (o6r) * -e)*)*o+ 3or rev*e o+ er)*or r*, )e De ember 2:, 2010 o3 -e)*)*o+er Tr*@(Ge+er Serv* e , eeC*+; ) e rever o3 ) e De * *o+2 )e %6+e 17, 2010 + Re o 6)*o+: )e De ember 9,2010 o3 ) e (o6r) o3 A--e !(A# *+ ([email protected]. SP No. 111 44 rever *+; ) e De * *o+4 + Re o 6)*o+5 )e %6+e:0, 2009 + Se-)ember 22, 2009, re -e )*ve 8, o3 ) e N )*o+ bor Re )*o+ (omm* *o+ !N R(# Se o+D*v* *o+, K6e +*)or L> +*)re *;+e ) ) e P DT B6 *+e O33* e *+ ( mb (*)8. & ;+o *re o+ A6;6 ) 1, 199:* e & )6)o *re o+ %6+e 5, 1995 + v*M o+ 'ebr6 r8 4, 199 .?

O+ November :, 2004, & )6)o + v*M ere b rre 3rom ) e*r orC - e *+ P DT@( mb , * e & ;+o e+*e e+)r8 o+ November 2 , 2004. 9

T 6 , re -o+ e+) 3* e + * e; * m* e ; *+ ) -e)*)*o+er o+ De ember 15, 2004.10 ( rme K6*o;6e, ) eo +er o3 Tr*@( Ge+er Serv* e , I+ ., *m- e e *+ ) e om- *+).11

'or ) e*r - r), re -o+ e+) verre ) ) ome)*me *+ % +6 r8 1997, ) e8 -e r e e ) e 3*r ) om- *+) o3 ever > +*)or ; *+ ) -e)*)*o+er 3or 6+ er- 8me+) o3 ;e + v*o )*o+ o3 bor ) + r be3ore ) e De- r)me+) o3

bor + $m- o8me+). T e A e * e o+ Se-)ember 1, 200: *+ ) e*r 3 vor + or ere ) e -e)*)*o+er )o - 8 ) e*r6+ er- * r*e . Ho ever, -e)*)*o+er * +o) - 8 ) e re -o+ e+) *) ) e m + )e m*+*m6m ;e b6) mere 8*+ re e ) e*r r*e b8 P5.00 ever8 8e r. T e8 e;e ) ) *+ e ) e+, ) e8 e r+e ) e *re o3 -e)*)*o+er +e=-er*e+ e r me+) + *+)*m* )*o+.12

Re -o+ e+) 36r) er e;e ) ) 6m*+; ) ) -e)*)*o+er v * ;ro6+ )o )erm*+ )e ) em, ) e*r )erm*+ )*o+ )* eeme * e; *+ e -e)*)*o+er 3 * e )o 36r+* ) em *) ) e ) o +o)* e re 6*re b8 . T e8 o+ 8

re e*ve +o)* e *+3orm*+; ) em ) ) ) e*r erv* e re 8 bee+ )erm*+ )e e33e )*ve o+ ) e me )e o3 )+o)* e.1:

I+ *) e3e+ e, -e)*)*o+er e+*e * m* *+; re -o+ e+) . Some)*me *+ O )ober 2004, P DT@ ;6+ *+3orme-e)*)*o+er ) ) *) o6 *m- eme+) o )@ 6))*+; me 6re + ) ) *) o6 * o+)*+6e, 3)er re36 e me) e erv* e o3 re -o+ e+) .14 Pe)*)*o+er 36r) er *me ) ) *) +o o) er re o6r e b6) )o )em-or r* 8 -6) ) ere -o+ e+) o+ 3 o )*+; ) )6 6-o+ )erm*+ )*o+ o3 *e+) o+)r ) *+ e ) e*r orC e+)*re 8 e-e+ e+) o) e +ee 3or > +*)or* erv* e o3 *) *e+) . I) e;e ) ) ) e om- *+) 3or * e; * m* -rem )6


14/26

) e *= mo+) e; -er*o 3or - *+; + em- o8ee o+ 3 o )*+; ) )6 +o) 8e) - e .15 I) *+ * )e ) ) *) e;*)*m )e e=er * e o3 *) m + ;eme+) -rero; )*ve.

I+ *) re- 8 )o re -o+ e+) -o *)*o+ - -er, -e)*)*o+er *+ * )e ) ) re -o+ e+) b + o+e ) e*r -o ) . I) verre) ) *) Per o++e De- r)me+) e+) er*e o3 e))er )o ) e re -o+ e+) 3rom O )ober 2004 )o November2004. 1 O+ O )ober 14, 2004, & )6)o + v* re e*ve *m* r e))er , re *+; 3o or *br r8

'rom P&I Per o++e De- r)me+)S6b>e ) Re 6e )e )o Re-or) ) ) e O33* e

Yo6 re ereb8 re 6e )e )o re-or) o+ S )6r 8, O )ober 1 , 2004, ? 00 A& ) o6r o33* e 45 /orrS)., S + 'r + * o De &o+)e, K6e


15/26

o6 +o) be o+ * ere o+ )r6 )*ve 8 * m* e .22

Re -o+ e+) e ev )e ) e m ))er )o ) e N R(, ** 6 ) *+e ) e e * *o+ o3 ) e A ) ) ) e8 ere +o) * e;* m* e . T e e- r )*o+ - 8, o ever, e e)e . T e * -o *)*ve -or)*o+ o3 ) e e * *o+ ) )er *br r8

FH$R$'OR$, -rem* e o+ * ere , ) e --e e De * *o+ * ereb8 A''IR&$D *) &ODI'I(ATIONo+ 8 *+ o3 r O6r or er 3or ) e mo+e) r8 r o3 e- r )*o+ - 8 )o be D$ $T$D 3rom ) e 6b>e )De * *o+, 3or C o3 b * .

SO ORD$R$D.2:+rob e

T e N R( r6 e ) ) ) e 3* *+; o3 ) e om- *+) -rem )6re *+ e -e)*)*o+er -roo3 ) ) *) o6 o+ 8 be 6e*3 +o +e -o ) or *;+me+) ;*ve+ )o re -o+ e+) 3)er ) e - e o3 -er*o o3 *= mo+) . T e r o3

e- r )*o+ - 8 )o re -o+ e+) ere e e)e 3or be*+; m* - e b e+) +8 o *+; ) ) re -o+ e+) ere * e; 8* m* e .24

A3)er ) e*r &o)*o+ 3or Re o+ * er )*o+ e+*e , re -o+ e+) 3* e be3ore ) e (A -e)*)*o+ 3or er)*or r* 6+ er 5. T e (A rever e ) e 3*+ *+; o3 ) e A + ) e N R( + r6 e 3or ) e re -o+ e+) , ) e 3 o o3 ) e e * *o+

re r *br r8

FH$R$'OR$, ) e *+ ) +) -e)*)*o+ 3or er)*or r* * GRANT$D. T e * e De * *o+ + Re o 6)*o+ o3) e -6b * re -o+ e+) N )*o+ bor Re )*o+ (omm* *o+ re ANNU $D + S$T ASID$. %6 ;me+)* ereb8 re+ ere e r*+; ) e -e)*)*o+er No o B. & )6)o, Romeo $. & ;+o + $ v*r B. v*3*

ere * e; 8 * m* e 3rom ) e*r em- o8me+) b8 -r*v )e re -o+ e+) Tr*@( Ge+er Serv* e + ,or *+; 8, or er*+; * -r*v )e re -o+ e+) )o re*+ ) )e ) e -e)*)*o+er )o ) e*r 3ormer -o *)*o+

*) o6) o o3 e+*or*)8 r*; ) + *) - 8me+) o3 36 b C ;e 3rom ) e )*me o3 ) e*r * e;* m* o+ 0: November 2004 !3or -e)*)*o+er & )6)o + v*3* # + o+ 2 November 2004 !3or

-e)*)*o+er & ;+o#.

Pr*v )e re -o+ e+) * 36r) er or ere )o - 8 -e)*)*o+er ) e mo6+) e 6*v e+) )o )e+ -er e+) !10J#o3 ) e mo+e) r8 r + 3or ))or+e8 3ee .

T * e * ) 6 R$&AND$D )o ) e bor Arb*)er 3or ) e om-6) )*o+, *) *+ :0 8 3rom re e*-)ereo3, o3 ) e b C ;e , *+ 6 *ve o3 o + e + o) er be+e3*) 6e )o -e)*)*o+er , om-6)e 3rom

) e )*me ) e*r om-e+ )*o+ *) e 6- )o ) e )*me o3 ) e*r )6 re*+ ) )eme+), e ) er o3 ))or+e8 3ee *+ ) e*r 3 vor.

SO ORD$R$D.25+rob e

T e (A e ) ) ) e - r mo6+) o+ * er )*o+ * ) e *re e=*;e+ 8 o3 ) e b6 *+e o3 ) e em- o8er * om-e*) )o -6) ome o3 *) em- o8ee )em-or r* 8 o6) o3 orC. I) 3o6+ ) ) ) ere +o) *+; )o 6--or) -e)*)*o+er

e; )*o+ * e 3rom *) b re er)*o+ ) ) *) *e+) P DT@ ;6+ re 6e )e 3or * o+)*+6 + e o3 *) erv*T ere o +o o *+; ) ) ) ere C o3 v * b e -o ) )o * ) e re -o+ e+) m*; ) be *;+e 3)) e8 ere re *eve 3rom ) e*r ) *;+me+).2

T e (A e+*e -e)*)*o+er &o)*o+ 3or Re o+ * er )*o+. He+ e, ) e -e)*)*o+er r * e be3ore ) * (o6r) ) e 3o o *+* 6e r *br r8

1. FH$TH$R TH$ HONORAB $ (OURT O' APP$A S GRAV$ Y $RR$D IN ANNU ING ANDS$TTING ASID$ TH$ D$(ISION ISSU$D BY TH$ NATIONA ABOR R$ ATIONS (O&&ISSION@S$(OND DIVISION.

2. FH$TH$R TH$ HONORAB $ (OURT O' APP$A S GRAV$ Y $RR$D IN D$NYING TH$ &OTION'OR R$(ONSID$RATION 'I $D BY TRI@( $V$R ASTING 'OR TH$ R$VI$F O' ITS D$(ISIONISSU$D ON %UN$ 17, 2010.


16/26

:. FH$TH$R TH$ HONORAB $ (OURT O' APP$A S $RR$D IN D$( ARING &ATUTO, &AGNO ANDAVI A AS I $GA Y DIS&ISS$D BY TRI@(.

4. FH$TH$R TH$ HONORAB $,(OURT O' APP$A S $RR$D IN ORD$RING TH$ R$INSTAT$&$NTO' &ATUTO, &AGNO AND AVI A AND TO PAY TH$ ATT$R S BA(EFAG$S IN( USIV$ O'A OFAN($S AND OTH$R B$N$'ITS DU$ TH$& AS F$ AS ATTORN$Y S '$$S.27

+rob e

Fe 3*+ ) e *+ ) +) -e)*)*o+ mer*)or*o6 .

I+ -e)*)*o+ 3or rev*e o+ er)*or r* 6+ er R6 e 45, e rev*e ) e e; error ) ) ) e (A m 8 ve omm*))e *+) e * e e * *o+, *+ o+)r ) *) ) e rev*e 3or >6r* * )*o+ error 6+ er) Ce+ *+ + or*;*+ er)*or r* I+ rev*e *+; ) e e; orre )+e o3 ) e (A e * *o+ *+ bor e m e 6+ er R6 e 5 o3 ) e R6 e o3 (o6r), ) *(o6r) e= m*+e ) e e * *o+ *+ ) e o+)e=) ) ) ) e (A e)erm*+e ) e -re e+ e or ) e b e+ e o3 ;r ve b6 e o3

* re)*o+ *+ ) e N R( e * *o+ be3ore *) + +o) o+ ) e b * o3 e) er ) e N R( e * *o+, o+ ) e mer*) o3 ) ee, orre ).2?

T e o+3 * )*+; 3 )6 3*+ *+; o3 ) e A, ) e N R( + ) e (A re +o) b*+ *+; o+ 6 , + e re) *+ ) e 6) or*)8- o+ ) e ev* e+ e -re e+)e + r o+ 6 *o+ ) ere3rom. I+ ) e e=er * e o3 *) e 6*)8 >6r* * )*o+, ) * (

o6 re@ev 6 )e + re@e= m*+e ) e re ev +) 3*+ *+; .29

'or ) e 3*r ) ) o * 6e , -e)*)*o+er e;e ) ) ) e (A erre e+ *) ++6 e + e) * e ) e e * *o+ o3 ) e N+ e+*e *) mo)*o+ 3or re o+ * er )*o+. I) -o *)e ) ) e+ ) e 3*+ *+; o3 3 ) o3 ) e A * 33*rme b8 ) e

N R(, * 3*+ *+; * o+ * ere 3*+ + * v*e e *) re -e ) b8 ) e *; er )r*b6+ .

I) bee+ e)) e ) ) >6 * * rev*e o3 bor e oe +o) ;o be8o+ ) e ev 6 )*o+ o3 ) e 633* *e+ 8 o3 )ev* e+ e 6-o+ * *) bor o33* * 3*+ *+; re ). He+ e, ) e 3*+ *+; o3 3 ) + o+ 6 *o+ o3 ) e N;e+er 8 or e +o) o+ 8 ;re ) e*; ) + re -e ) b6) eve+ o) e *) 3*+ *)8 + eeme b*+ *+; o+ ) *(o6r) o+; ) e8 re 6--or)e b8 6b ) +)* ev* e+ e.:0

I) e ) ) *+ bor e e ev )e )o *) v* -e)*)*o+ 3or er)*or r*, ) e (A * em-o ere )o ev 6 )e ) em )er* *)8 + *;+*3* + e o3 ) e ev* e+ e e;e )o ve bee+ -r* *o6 8, *m * 8, or rb*)r r* 8 *b8 ) e N R( *+ re )*o+ )o o) er ev* e+ e o+ re or .:1 To m Ce ) * 3*+ *+;, ) e (A +e e r* 8 )o v*e ) eev* e+ e *3 o+ 8 )o e)erm*+e *3 ) e N R( r6 *+; b * *+ ev* e+ e.:2

A3)er >6 * *o6 )6 8 o3 ) e re or o3 ) e e, ) * (o6r) eem *) -ro-er )o * re; r ) e 3*+ *+; o3 ) e (A.

T e (o6r) * +o) 6+m*+ 36 o3 ) e r6 e *+ bor e ) ) ) e em- o8er ) e b6r e+ o3 -rov*+; ) ) ) e)erm*+ )*o+ 3or v * or 6) or*o*+) 33* v*), re -o+ e+) 3 * e )o 6 e orrobor )*v

+ om-e)e+) ev* e+ e )o 6b ) +)* )e ) e*r o+ 6 *o+ ) ) ) e8 ere * m* e 3rom em- o8me+). Re -o+ e+)* +o) eve+ -re e+) ) e e;e +o)* e o3 )erm*+ )*o+ o3 ) e*r em- o8me+). T ere3ore, *+ ) e b e+ e o3 +8

o *+; o3 + over) or -o *)*ve ) -rov*+; ) ) -e)*)*o+er * m* e re -o+ e+) , ) e ))er *m o3 * e;* m* ++o) be 6 ) *+e ) e me o6 be e 3@ erv*+;, o+>e )6r + o3 +o -rob )*ve v 6e.:


17/26

T e re or re evo* o3 +8 *+ * )*o+ ) ) ) e8 ere b rre 3rom -e)*)*o+er -rem* e or ere o) er * ee-r*ve o3 +8 orC *;+me+) 3)er ) e * o+)*+6 + e o3 ) e*r orC *+ P DT@( mb . I) o +o) o +

) ) re -o+ e+) re-or)e or eve+ )r*e )o re-or) )o -e)*)*o+er o33* e + re 6e )e 3or +o) er orC *;+me+)3)er be*+; * m* e 3rom P DT@( mb . O+ ) e o+)r r8, ) e ev* e+ e -re e+)e b8 -e)*)*o+er o e ) ) ) e8ere re-e )e 8 6mmo+e )o re-or) )o *) m *+ o33* e + * +o) eve+ bo) er )o o e -*)e ever +o)* e .

&oreover, ) e r6 e ) ) ) e em- o8er be r ) e b6r e+ o3 -roo3 *+ * e; * m* e 3*+ +o -- * )*o+ *e, *Ce ) e -re e+) -e)*)*o+, ere ) e em- o8er e+*e v*+; * m* e ) e em- o8ee .:7

Pe)*)*o+er e;e ) ) ) e (A erre *+ r6 *+; ) ) re -o+ e+) ere e+)*) e )o re*+ ) )eme+), - 8me+) o3b C ;e + o) er mo+e) r8 be+e3*) . Pe)*)*o+er be *eve ) ) re -o+ e+) re +o) e+)*) e )o ) e r *+ e) e8 ere +o) * e; 8 * m* e .

U+ er Ar)* e 279:? o3 ) e bor (o e + e)) e *+ >6r* -r6 e+ e, + em- o8ee o * * m* e *) o6) >6 )6 e + *) o6) 6e -ro e * e+)*) e )o b C ;e + re*+ ) )eme+) or - 8me+) o3 e- r )*o+ - 8 *+ *e6

) ereo3. F * e e ;ree *) ) e r6 *+; o3 ) e A + ) e N R( ) ) re -o+ e+) ere +o) * e; 8 * m* e ++o) ;6* )8 o3 b + o+me+), e o +o) ;ree *) ) e*r e * *o+ )o * m* ) e e 3or C o3 mer*). I+ )e , e3*+ ) ) re -o+ e+) re e+)*) e )o re*+ ) )eme+) *) o6) - 8me+) o3 b C ;e + o) er mo+e) r8 be+e3*) .

A+e+) ) e * 6e o+ ) e r o3 ))or+e8 3ee , Ar)* e 111 o3 ) e bor (o e -rov* e ) ) *+ e o3 6+ 36

*) o *+; o3 ;e , ) e 6 - b e - r)8 m 8 be e e ))or+e8 3ee , e 6*v e+) )o )e+ -er e+) !10J# o3 ) emo6+) o3 ;e re overe . *Ce * e, e ve re o;+*6 )*3* b e.:9 Fe ve *m* r 8 o r6 e *+ RTG (o+ )r6 )*o+, I+ ., e) ). v. ' )o40 *+

* e -e *3* 8 ) )er *br r8

=== Se)) e * ) e r6 e ) ) *+ )*o+ 3or re over8 o3 ;e , or ere + em- o8ee 3or e )o*)*; )e + , ) 6 , *+ 6r e=-e+ e )o -ro)e ) * r*; ) + *+)ere ) , mo+e) r8 r b8 8 o3))or+e8 3ee * >6 )*3* b e 6+ er Ar)* e 111 o3 ) e bor (o e Se )*o+ ?, R6 e VIII, BooC III o3 *)

Im- eme+)*+; R6 e + - r ;r - 7, Ar)* e 220? o3 ) e (*v* (o e. T e r o3 ))or+e8 3ee *-ro-er, + ) ere +ee , +o) be +8 o *+; ) ) ) e em- o8er )e m * *o6 8 or *+ b 3 *) e+ *)

*) e ) e ;e . T ere +ee o+ 8 be o *+; ) ) ) e 36 ;e ere +o) - * or *+; 8.41+rob e

I+ ) e -re e+) e, o ever, *) e)) e ) ) re -o+ e+) ere +o) * e; 8 * m* e 3rom em- o8me+) +) e*r ;e ere +o) *) e *) o6) v * + e; b * . T ereL3ore, ) e8 re +o) e+)*) e )o re e*ve ))or+e83ee .

A *r 6m ) + e 6rro6+ *+; ) e e;e )erm*+ )*o+ re ) Ce+ *+)o o6+), -e)*)*o+er o6 e-)re -o+ e+) b C + re*+ ) )e ) em )o ) e*r 3ormer -o *)*o+ . Ho ever, 6+ er ) e -r*+ *- e o3 +o orC, +o - 8,) ere o6 be +o - 8me+) o3 b C ;e .42 I+ e ere ) e em- o8ee 3 * 6re )o orC o *o+e+e*) er b8 * b + o+me+) +or b8 )erm*+ )*o+, ) e b6r e+ o3 e o+om* o * +o) r*; )36 8 *3)e )o ) eem- o8er e - r)8 m6 ) be r * o + o .4:

Ab e+) +8 o *+; ) ) ) ere * )r *+e re )*o+ *- be) ee+ -e)*)*o+er + re -o+ e+) , ) e or er o3re*+ ) )eme+) ) + . T e o )r*+e o3 )r *+e re )*o+ * +o) -- *e *+ * r*m*+ )e 8 )o b r re*+ )e -e * 8 e+ ) e em- o8ee +o) *+ * )e + ver *o+ )o re)6r+*+; )o orC or oe +o) o 6-8 -o *)*o+ o3)r6 ) + o+3* e+ e *+ or +o 8 *+ ) e o-er )*o+ o3 ) e em- o8er b6 *+e .44I+ ) * e, ) ere +oev* e+ e ) ) re -o+ e+) * *Ce re)6r+*+; )o ) e*r 3ormer -o ) + ) ) ) e8 o 6-8 -o *)*o+ o3 )r6 ) +

o+3* e+ e.

FH$R$'OR$, -rem* e o+ * ere , ) e *+ ) +) -e)*)*o+ * ereb8 GRANT$D. A or *+; 8, ) e De * *o+ )e %6+e17, 2010 + Re o 6)*o+ )e De ember 9, 2010 o3 ) e (o6r) o3 A--e *+ ([email protected]. SP No. 111 44 re

ereb8 R$V$RS$D + S$T ASID$.


18/26

Pe)*)*o+er Tr*@( Ge+er Serv* e , o ever * ereb8 ORD$R$D )o R$INSTAT$ re -o+ e+) )o ) e*r 3ormer -o *)*o+b6) *) o6) - 8me+) o3 b C ;e *) *+ -er*o o3 ) *r)8 !:0# 8 3rom 3*+ *)8 o3 >6 ;me+). Re -o+ e+)No o B. & )6)o, Romeo $. & ;+o + $ v*r B. v*M re ORD$R$D )o re-or) 3or orC *) *+ )e+ !10# 8 3rom+o)* e 3rom -e)*)*o+er, o) er * e, ) e8 be eeme )o ve b + o+e ) e*r em- o8me+) *) -e)*)*o+er.

SO ORD$R$D.+rob e v*r)6 *br r8

Ve o, %r., !( *r-er o+#, V* r m , %r., Pere


19/26

The Labor &rbiter dismissed the complaint, observing that they were onfloating status and the legal period for placing them under such status hadnot yet lapsed% Thus they could not be considered constructively dismissed%The L!C affirmed the L& ruling% .n petition for certiorari with the C&, the

latter reversed the L!C decision% (t held that the paramount consideration isthe dire e2igency of the business of the employer which compelled it to putsome of its employees temporarily out of wor % (t found that there was nothingto support petitioner1s allegation aside from its bare assertion that its clientPLDT-Laguna re uested for discontinuance of its services% There was also noshowing that there was lac of available posts to which the respondentsmight be assigned after they were relieved from their last assignment%

Petitoner is now before the Supreme Court assailing the C& decision%The Issue:3hether the respondents were constructively dismissed%The Ruling:3e find the instant petition meritorious%(n a petition for review on certiorari under !ule +4, we review the legal errorsthat the C& may have committed in the assailed decision, in contrast with thereview for #urisdictional error underta en in an original certiorari action% (n

reviewing the legal correctness of the C& decision in a labor case madeunder !ule 54 of the !ules of Court, this Court e2amines the decision in theconte2t that the C& determined the presence or the absence of grave abuseof discretion in the L!C decision before it and not on the basis of whetherthe L!C decision, on the merits of the case, was correct%6 1 7The conflicting factual findings of the L&, the L!C and the C& are notbinding on us, and we retain the authority to pass on the evidence presented

and draw conclusions therefrom% (n the e2ercise of its e uity #urisdiction, thisCourt would re-evaluate and re-e2amine the relevant findings%6 2 78or the first two issues, petitioner alleged that the C& erred when it annulledand set aside the decision of the L!C and denied its motion forreconsideration% (t posited that when the findings of fact of the L& is affirmed


20/26

by the L!C, said finding is considered as final and is viewed with respect bythe higher tribunals%(t has been settled that #udicial review of labor cases does not go beyond theevaluation of the sufficiency of the evidence upon which its labor officials1

findings rest% 9ence, the findings of facts and conclusion of the L!C aregenerally accorded not only great weight and respect but even clothed withfinality and deemed binding on this Court as long as they are supported bysubstantial evidence%6 3 7(t was held that in labor cases elevated to it via petition for certiorari, the C& isempowered to evaluate the materiality and significance of the evidencealleged to have been capriciously, whimsically, or arbitrarily disregarded by

the L!C in relation to all other evidence on record%6 4 7 To ma e this finding,the C& necessarily has to view the evidence if only to determine if the L!Cruling had basis in evidence%6 5 7

&fter a #udicious study of the records of the case, this Court deems it properto disregard the findings of the C&%The Court is not unmindful of the rule in labor cases that the employer hasthe burden of proving that the termination was for a valid or authori:ed cause%9owever, it is li ewise incumbent upon the employees that they should firstestablish by competent evidence the fact of their dismissal from employment%66 7 &s an allegation is not evidence, it is elementary that a party alleging acritical fact must support his allegation with substantial evidence%6 7 7 (t wasalso stressed that the evidence to prove the fact of dismissal must be clear,positive and convincing%6 8 7(n the present case, the facts and the evidence do not establish a prima faciecase that respondents were dismissed from employment% &side from their

mere assertion and #oint affidavit, respondents failed to adduce corroborativeand competent evidence to substantiate their conclusion that they weredismissed from employment% !espondents did not even present the allegednotice of termination of their employment% Therefore, in the absence of anyshowing of an overt or positive act proving that petitioner had dismissed


21/26

respondents, the latter1s claim of illegal dismissal cannot be sustained as thesame would be self-serving, con#ectural and of no probative value%6 9 7The records are devoid of any indication that they were barred frompetitioner1s premises or were otherwise deprived of any wor assignment

after the discontinuance of their wor in PLDT-Calamba% (t was also notshown that respondents reported or even tried to report to petitioner1s officeand re uested for another wor assignment after being dismissed fromPLDT-Calamba% .n the contrary, the evidence presented by petitionershowed that they were repeatedly summoned to report to its main office anddid not even bother to show despite several notices% ;oreover, the rule ?6 11 7 of the Labor Code and as settled in #urisprudence, anemployee who is dismissed without #ust cause and without due process isentitled to bac wages and reinstatement or payment of separation pay in lieuthereof% 3hile we agree with the rulings of the L& and the L!C thatrespondents were not illegally dismissed and not guilty of abandonment, wedo not agree with their decisions to dismiss the case for lac of merit% (nstead,we find that respondents are entitled to reinstatement without payment ofbac wages and other monetary benefits%

&nent the issue on the award of attorney1s fees, &rticle @@@ of the Labor Code

provides that in cases of unlawful withholding of wages, the culpable partymay be assessed attorney1s fees, e uivalent to ten percent A@*B of theamount of wages recovered% Li ewise, we have recogni:ed that /in actionsfor recovery of wages or where an employee was forced to litigate and, thus,incur e2penses to protect his rights and interest, the award of attorney1s fees


22/26

is legally and morally #ustifiable%06 12 7 3e have similarly so ruled in !TGConstruction, (nc%, et at% v% 8acto6 13 7 in which we specifically stated222 Settled is the rule that in actions for recovery of wages, or where anemployee was forced to litigate and, thus, incur e2penses to protect his rights

and interests, a monetary award by way of attorney1s fees is #ustifiable under &rticle @@@ of the Labor CodeE Section F, !ule (((, 'oo ((( of its(mplementing !ulesE and paragraph >, &rticle ))*F of the Civil Code% Theaward of attorney1s fees is proper, and there need, not be any showing thatthe employer acted maliciously or in bad faith when it withheld the wages%There need only be a showing that the lawful wages were not paidaccordingly%614 7

(n the present case, however, it was settled that respondents were notillegally dismissed from employment and their wages were not withheldwithout valid and legal basis% There$fore, they are not entitled to receiveattorney1s fees%

&s all circumstances surrounding the alleged termination are ta en intoaccount, petitioner should accept respondents bac and reinstate them totheir former positions% 9owever, under the principle of /no wor , no pay,0there should be no payment of bac wages%6 15 7 (n a case where theemployee1s failure to wor was occasioned neither by his abandonment norby a termination, the burden of economic loss is not rightfully shifted to theemployerE each party must bear his own loss%6 16 7

&bsent any showing that there is strained relationship between petitioner andrespondents, the order of reinstatement shall stand% The doctrine of strainedrelations is not applied indiscriminately as to bar reinstatement, especiallywhen the employee has not indicated an aversion to returning to wor or

does not occupy a position of trust and confidence in or has no say in theoperation of the employer1s business%6@>7 (n this case, there was no evidencethat respondents disli ed returning to their former posts and that they occupya position of trust and confidence%39"!"8.!", premises considered, the instant petition is herebyG!& T"D% &ccordingly, the Decision dated Hune @>, )*@* and !esolution


23/26

dated December ?, )*@* of the Court of &ppeals in C&-G%!% SP o% @@@5++are hereby !" "!S"D and S"T &S(D"%Petitioner Tri-C General Services, however is hereby .!D"!"D to!"( ST&T" respondents to their former positions but without payment of

bac wages within a period of thirty AI* days from finality of #udgment%!espondents olasco '% ;atuto, !omeo "% ;agno and "lvira '% LaviJa are.!D"!"D to report for wor within ten A@* days from notice from petitioner,otherwise, they shall be deemed to have abandoned their employment withpetitioner%

6@@7 &rt% )>?% Security of tenure% K (n cases of regular employment, theemployer shall not terminate the services of an employee e2cept for a #ustcause or when authori:ed by this Title% &n employee who is un#ustlydismissed from wor shall be entitled to reinstatement without loss ofseniority rights and other privileges and to his full bac wages, inclusive ofallowances, and to his other benefits or their monetary e uivalent computedfrom the time his compensation was withheld from him up to the time of hisactual reinstatement%

&lmirante !einstatement without bac wages

!"SP. D" TS olasco ;atuto, !omeo "% ;agno and "lvira '% LaviJawere hired by petitioner Tri-C General Services as #anitors$#anitress assignedat the PLDT 'usiness .ffice in Calamba City% They alleged that in ov% I,)**+, ;atuto and LaviJa were barred from their wor place while ;agno wasdenied entry in ov% )5, )**+% Conse uently, they filed a complaint for illegaldismissal against petitioner%

In its defense, petitioner alleged that sometime in October 2004, PLDT-Lagunainformed it that it would implement cost-cutting measures and that it woulddiscontinue the ser ices of respondents! It further claimed that it had no otherrecourse but to temporaril" put respondents on #$oating status% upon termination ofthe client&s contract! It alleged that the complaint for illegal dismissal was prematuresince the si'-month legal period for placing an emplo"ee on a #$oating status% hasnot "et lapsed!

The (ourt of )ppeals *()+ re ersed the decision of the ational Labor elations(ommission * L (+! It found that respondents were illegall" dismissed and ordered


24/26

their reinstatement with full bac.wages from the date of dismissal and awardedattorne"&s fees! Did the () commit a re ersible error/Ruling: Yes.)fter a udicious stud" of the records of the case, this (ourt deems it proper todisregard the 1ndings of the ()!

The (ourt is not unmindful of the rule in labor cases that the emplo"er has theburden of pro ing that the termination was for a alid or authori ed cause! 3owe er,it is li.ewise incumbent upon the emplo"ees that the" should 1rst establish b"competent e idence the fact of their dismissal from emplo"ment! )s an allegation isnot e idence, it is elementar" that a part" alleging a critical fact must support hisallegation with substantial e idence! It was also stressed that the e idence to pro ethe fact of dismissal must be clear, positi e and con incing!In the present case, the facts and the e idence do not establish a prima facie casethat respondents were dismissed from emplo"ment! )side from their mere assertionand oint a da it, respondents failed to adduce corroborati e and competent

e idence to substantiate their conclusion that the" were dismissed from emplo"ment!espondents did not e en present the alleged notice of termination of theiremplo"ment! Therefore, in the absence of an" showing of an o ert or positi e actpro ing that petitioner had dismissed respondents, the latter&s claim of illegaldismissal cannot be sustained as the same would be self-ser ing, con ectural and ofno probati e alue!

The records are de oid of an" indication that the" were barred from petitioner&spremises or were otherwise depri ed of an" wor. assignment after thediscontinuance of their wor. in PLDT-(alamba! It was also not shown that respondentsreported or e en tried to report to petitioner&s o ce and re5uested for another wor.

assignment after being dismissed from PLDT-(alamba!On the contrar", the e idence presented b" petitioner showed that the" wererepeatedl" summoned to report to its main o ce and did not e en bother to showdespite se eral notices! 6oreo er, the rule that the emplo"er bears the burden ofproof in illegal dismissal cases 1nds no application in a case, li.e the present petition,where the emplo"er denied ha ing dismissed the emplo"ees!Petitioner alleged that the () erred in ruling that respondents were entitled toreinstatement, pa"ment of bac.wages and other monetar" bene1ts! Petitionerbelie ed that respondents are not entitled to the awards since the" were not illegall"dismissed!' ' ')s all circumstances surrounding the alleged termination are ta.en into account,petitioner should accept respondents bac. and reinstate them to their formerpositions! 3owe er, under the principle of #no wor., no pa",% there should be nopa"ment of bac.wages! In a case where the emplo"ee&s failure to wor. wasoccasioned neither b" his abandonment nor b" a termination, the burden of economicloss is not rightfull" shifted to the emplo"er7 each part" must bear his own loss!


25/26

*Peralta, 8, 9( Third Di ision, T I-( :eneral 9er ices s! olasco ;! 6atuto, omeo ?4@A@, 9eptember 2B, 20>C+!

#I$% '

espondents olasco 6atuto, omeo

In its defense, petitioner alleged that sometime in October 2004, PLDT-Laguna informed it that itwould implement cost-cutting measures and that it would discontinue the ser ices of respondents!It further claimed that it had no other recourse but to temporaril" put respondents on #$oatingstatus% upon termination of the client&s contract! It alleged that the complaint for illegal dismissalwas premature since the si'-month legal period for placing an emplo"ee on a #$oating status% hasnot "et lapsed!

The (ourt of )ppeals *()+ re ersed the decision of the ational Labor elations (ommission* L (+! It found that respondents were illegall" dismissed and ordered their reinstatement with fullbac.wages from the date of dismissal and awarded attorne"&s fees!

The Issue:Ehether or not the (ourt of )ppeals erred when it ruled that the respondents were constructi el"dismissed!

The Ruling:

The 9upreme (ourt held that the (ourt of )ppeals erred!

The (ourt is not unmindful of the rule in labor cases that the emplo"er has the burden of pro ingthat the termination was for a alid or authori ed cause! 3owe er, it is li.ewise incumbent uponthe emplo"ees that the" should 1rst establish b" competent e idence the fact of their dismissalfrom emplo"ment! )s an allegation is not e idence, it is elementar" that a part" alleging a criticalfact must support his allegation with substantial e idence! It was also stressed that the e idenceto pro e the fact of dismissal must be clear, positi e and con incing! In the present case, the factsand the e idence do not establish a prima facie case that respondents were dismissed fromemplo"ment! )side from their mere assertion and oint a da it, respondents failed to adducecorroborati e and competent e idence to substantiate their conclusion that the" were dismissedfrom emplo"ment! espondents did not e en present the alleged notice of termination of theiremplo"ment! Therefore, in the absence of an" showing of an o ert or positi e act pro ing thatpetitioner had dismissed respondents, the latter&s claim of illegal dismissal cannot be sustained asthe same would be self-ser ing, con ectural and of no probati e alue! The records are de oid ofan" indication that the" were barred from petitioner&s premises or were otherwise depri ed of an"wor. assignment after the discontinuance of their wor. in PLDT-(alamba! It was also not shownthat respondents reported or e en tried to report to petitioner&s o ce and re5uested for anotherwor. assignment after being dismissed from PLDT-(alamba! On the contrar", the e idencepresented b" petitioner showed that the" were repeatedl" summoned to report to its main o ceand did not e en bother to show despite se eral notices!

6oreo er, the rule Fthat the emplo"er bears the burden of proof in illegal dismissal cases 1nds noapplication in a case, li.e the present petition, where the emplo"er denied ha ing dismissed theemplo"ees! Petitioner alleged that the () erred in ruling that respondents were entitled toreinstatement, pa"ment of bac.wages and other monetar" bene1ts! Petitioner belie ed that


26/26

respondents are not entitled to the awards since the" were not illegall" dismissed! Gnder )rticle2H? of the Labor (ode and as settled in urisprudence, an emplo"ee who is dismissed without ustcause and without due process is entitled to bac.wages and reinstatement or pa"ment ofseparation pa" in lieu thereof! Ehile we agree with the rulings of the L) and the L ( thatrespondents were not illegall" dismissed and not guilt" of abandonment, we do not agree withtheir decisions to dismiss the case for lac. of merit! Instead, we 1nd that respondents are entitledto reinstatement without pa"ment of bac.wages and other monetar" bene1ts!

)nent the issue on the award of attorne"&s fees, )rticle >>> of the Labor (ode pro ides that incases of unlawful withholding of wages, the culpable part" ma" be assessed attorne"&s fees,e5ui alent to ten percent *>0 + of the amount of wages reco ered! Li.ewise, we ha e recogni edthat #in actions for reco er" of wages or where an emplo"ee was forced to litigate and, thus, incure'penses to protect his rights and interest, the award of attorne"&s fees is legall" and morall"

usti1able!% Ee ha e similarl" so ruled in T: (onstruction, Inc!, et at! ! JactoK 13 in which wespeci1call" statedM

xxx Settled is the rule that in actions for recovery of wages, or where an employeewas forced to litigate and, thus, incur expenses to protect his rights and interests, amonetary award by way of attorney’s fees is justi able under Article 111 of the

abor !ode" Section #, $ule %&&&, 'oo( &&& of its &mplementing $ules" and paragraph ), Article **+# of the !ivil !ode -he award of attorney’s fees is proper, and thereneed, not be any showing that the employer acted maliciously or in bad faith whenit withheld the wages -here need only be a showing that the lawful wages were not

paid accordingly

In the present case, howe er, it was settled that respondents were not illegall" dismissed fromemplo"ment and their wages were not withheld without alid and legal basis! There fore, the" arenot entitled to recei e attorne"&s fees!

)s all circumstances surrounding the alleged termination are ta.en into account, petitioner shouldaccept respondents bac. and reinstate them to their former positions! 3owe er, under theprinciple of #no wor., no pa",% there should be no pa"ment of bac.wages! In a case where theemplo"ee&s failure to wor. was occasioned neither b" his abandonment nor b" a termination, theburden of economic loss is not rightfull" shifted to the emplo"er7 each part" must bear his ownloss!

)bsent an" showing that there is strained relationship between petitioner and respondents, theorder of reinstatement shall stand! The doctrine of strained relations is not applied indiscriminatel"as to bar reinstatement, especiall" when the emplo"ee has not indicated an a ersion to returningto wor. or does not occup" a position of trust and con1dence in or has no sa" in the operation ofthe emplo"er&s business! In this case, there was no e idence that respondents disli.ed returning totheir former posts and that the" occup" a position of trust and con1dence!

Documents

Labor Rev Assigned Cases