Case No. 4

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Case No.

4
EASTERN SHIPPING LINES, INC vs PHILIPPINE OVERSEAS
EMPLOYMENT ADMINISTRATION (POEA), MINISTER OF LABOR AND
EMPLOYMENT.
G.R. No. 76633 October 18, 1988

Facts:

 The Supreme Court acknowledged or defined Mr. Victaliano Saco as an Overseas


Contract Worker (OCW), he was the Chief Officer of the M/V Eastern Polaris and was
killed in an accident in Tokyo, Japan in the past March 15, 1985. His widow sued for
damages under Executive Order No. 797 and Memorandum Circular No. 2 of the POEA.
 The petitioner on the other hand argued that the complaint should not be directed from
them because the POEA doesn’t recognize the complaint but the Social Security System
does, and they should complain in the State Fund Insurance.
 Still, the POEA assumed jurisdiction and after considering the position papers of the
parties ruled in favor of the complainant. That’s why the petitioner decided to bring the
case on the court, prompting the Solicitor General to move the dismissal because of
non-exhaustion of administrative bodies.

Issues:

 Whether or not the POEA (Philippine Overseas Employment Administration) had


jurisdiction over the case as the husband was not an overseas worker.
 Whether or not the validity of Memorandum Circular No. 2 itself as violative of the
principle of non-delegation of legislative power.
 Whether or not has the petitioner been denied due process because the same POEA
that issued Memorandum Circular No. 2

Decision:

 The private respondent (Kathleen D. Saco) in this case was awarded the sum of
192,000.00 pesos (180,000 pesos for death benefits and 12,000 pesos for burial
expenses) by the POEA (Philippine Overseas Employment Administration) for the death
of her husband. These expenses were made by the POEA pursuant to its Memorandum
Circular No. 2, which became effective on February 1, 1984. This circular prescribed a
standard contract to be adopted by both foreign and domestic shipping companies in the
hiring of Filipino seamen for overseas employment.
 The claim of the POEA that Mr. Sato is not an overseas employee was not accepted due
to the fact that, according to the1985 Rules and regulations on Overseas Employment:

o “Overseas employment is defined as "employment of a worker outside the


Philippines, including employment on board vessels plying international waters,
covered by a valid contract."
o Any person working or who has worked overseas under a valid employment
contract and shall include seamen.
o Any person working overseas or who has been employed by another which may
be a local employer, foreign employer, principal or partner under a valid
employment contract and shall include seamen.
And these qualifications apply to Mr. Sato because he died while under a contract of
employment with the petitioner and alongside petitioner’s vessel while in a foreign country.

 Memorandum Circular No. 2 is cardinal rights that was laid down was observed and an
administrative regulation, which has the force and effect of law. The power of the POEA
in requiring the model contract is not unlimited as there is a sufficient standard guiding
the delegated in the exercise of the said authority. It was stated in the Executive Order
No. 797, the creation of POEA is also to protect the rights of overseas Filipino workers
into fair and equitable employment practices.
 Denial of Due Process is not evident as the cardinal rights laid down by Justice Laurel is
Observed there is no administrative agencies that are vested with two basic powers,
these administrative agencies are the quasi-legislative and the quasi-judicial. Quasi-
Legislative promulgates implementing rules and regulations and the Quasi-Judicial
enables them to interpret and apply such regulations.

Name of Case Presenters: Oral Presentation (30) Written (30)


Abelon, Carlo
Laus,Christian P.

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