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    Sergio Naguiat Vs National Labor Relations Commission

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    Abdulateef Sahibuddin
    Sergio Naguiat was the president of Clark Field Taxi, Inc. (CFTI) which supplied taxi services to Clark Air Base until it had to close in 1991 due to financial losses from the base's closure. Some taxi drivers sued CFTI for separation pay. The National Labor Relations Commission ruled that CFTI, its president Sergio Naguiat, and its vice president were jointly liable to pay the drivers. However, the Supreme Court partially affirmed this ruling, finding that only Sergio Naguiat as president was liable, but that Sergio F. Naguiat Enterprises, Inc., the family corporation, was not as there was no evidence it managed CFTI.

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    Sergio Naguiat Vs National Labor Relations Commission

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    Abdulateef Sahibuddin
    86 views2 pages
    Sergio Naguiat was the president of Clark Field Taxi, Inc. (CFTI) which supplied taxi services to Clark Air Base until it had to close in 1991 due to financial losses from the base's closure. Some taxi drivers sued CFTI for separation pay. The National Labor Relations Commission ruled that CFTI, its president Sergio Naguiat, and its vice president were jointly liable to pay the drivers. However, the Supreme Court partially affirmed this ruling, finding that only Sergio Naguiat as president was liable, but that Sergio F. Naguiat Enterprises, Inc., the family corporation, was not as there was no evidence it managed CFTI.

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    Commercial Law

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    Sergio Naguiat vs National Labor Relations Commission

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    Sergio Naguiat was the president of Clark Field Taxi, Inc. (CFTI) which supplied taxi services to Clark Air Base until it had to close in 1991 due to financial losses from the base's closure. Some taxi drivers sued CFTI for separation pay. The National Labor Relations Commission ruled that CFTI, its president Sergio Naguiat, and its vice president were jointly liable to pay the drivers. However, the Supreme Court partially affirmed this ruling, finding that only Sergio Naguiat as president was liable, but that Sergio F. Naguiat Enterprises, Inc., the family corporation, was not as there was no evidence it managed CFTI.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    86 views2 pages

    Sergio Naguiat Vs National Labor Relations Commission

    Uploaded by

    Abdulateef Sahibuddin
    Sergio Naguiat was the president of Clark Field Taxi, Inc. (CFTI) which supplied taxi services to Clark Air Base until it had to close in 1991 due to financial losses from the base's closure. Some taxi drivers sued CFTI for separation pay. The National Labor Relations Commission ruled that CFTI, its president Sergio Naguiat, and its vice president were jointly liable to pay the drivers. However, the Supreme Court partially affirmed this ruling, finding that only Sergio Naguiat as president was liable, but that Sergio F. Naguiat Enterprises, Inc., the family corporation, was not as there was no evidence it managed CFTI.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Sergio Naguiat vs National Labor Relations Commission

    G.R. No. 116123 – 269 SCRA 564 – Mercantile Law – Business Organization – Corporation Law –
    Close Corporation – Liability for Tort

    Sergio Naguiat was the president of Clark Field Taxi, Inc. (CFTI) which supplied taxi services to
    Clark Air Base. At the same time, Naguiat was a director of the Sergio F. Naguiat Enterprises, Inc.
    (SFNEI), their family-owned corporation along with CFTI.

    In 1991, CFTI had to close due to “great financial losses and lost business opportunity” resulting
    from the phase-out of Clark Air Base brought about by the Mt. Pinatubo eruption and the expiration
    of the RP-US military bases agreement.

    CFTI then came up with an agreement with the drivers that the latter be entitled to a separation pay in
    the amount of P500.00 per every year of service. Most of the drivers accepted this but some drivers
    did not. The drivers who refused to accept the separation pay offered by CFTI instead sued the latter
    before the labor arbiter.

    The labor arbiter ruled in favor of the taxi drivers. The National Labor Relations Commission
    affirmed the labor arbiter. It was established that when CFTI closed, it was in profitable standing and
    was not incurring losses. It ruled that the drivers are entitled to $120.00 (or its peso equivalent) per
    every year of service subject to exchange rates prevailing that time.

    The NLRC likewise ruled that SFNEI as well as CFTI’s president and vice president Sergio Naguiat
    and Antolin Naguiat should be held jointly and severally liable to pay the drivers. The NLRC ruled
    that SFNEI actively managed CFTI and its business affairs hence it acted as the employer of the
    drivers.

    ISSUE: Whether or not the ruling of the NLRC is correct.

    HELD: It is only partially correct.

    1. NLRC is correct when it ruled that Sergio Naguiat is jointly and severally liable to pay the drivers the
    award of separation pay in the amount so determined. As president of CFTI, Sergio Naguiat is
    considered an “employer”• of the dismissed employees who is therefore liable for the obligations of
    the corporation to its dismissed employees. Moreover, CFTI, being a close family corporation, is
    liable for corporate torts and stockholders thereof shall be personally liable for corporate torts unless
    the corporation has obtained reasonably adequate liability insurance (par. 5, Section 100, “Close
    Corporations”•, Corporation Code). Antolin Naguiat is absolved because there was insufficient
    evidence as against him.
    2. SFNEI is not liable jointly or severally with CFTI. SFNEI has nothing to do with CFTI. There is no
    sufficient evidence to prove that it actively managed CFTI especially so when even the drivers
    testified that their employer is CFTI and that their payroll comes from CFTI. Further, SFNEI was
    into trading business while CFTI was into taxi services.

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