ART.

225

[G.R. No. 120567. March 20, 1998]

PHILIPPINE AIRLINES, INC., petitioner, vs., NATIONAL LABOR RELATIONS COMMISSION, FERDINAND

PINEDA and GODOFREDO CABLING,  respondents.

Facts: Private respondents are flight stewards of the petitioner. Both were dismissed from the service
for their alleged involvement in the currency smuggling in Hong Kong. Aggrieved by said dismissal,
private respondents filed with the NLRC a petition for injunction. The NLRC issued a temporary
mandatory injunction enjoining petitioner to cease and desist from enforcing its Memorandum of
dismissal.

In support of the issuance of the writ of temporary injunction, the NLRC adopted the view that:
(1) private respondents cannot be validly dismissed on the strength of petitioner's Code of Discipline
which was declared illegal by this Court for the reason that it was formulated by the petitioner without
the participation of its employees (2) the whimsical, baseless and premature dismissals of private
respondents which "caused them grave and irreparable injury" is enjoinable as private respondents are
left "with no speedy and adequate remedy at law' except the issuance of a temporary mandatory
injunction; (3) the NLRC is empowered not only to restrain any actual or threatened commission of any
or all prohibited or unlawful acts but also to require the performance of a particular act in any labor
dispute, which, if not restrained or performed forthwith, may cause grave or irreparable damage to any
party; and (4) the temporary mandatory power of the NLRC was recognized by this Court.

Petitioner moved for reconsideration arguing that the NLRC erred in granting a temporary
injunction order when it has no jurisdiction to issue an injunction or restraining order since this may be
issued only under Article 218 of the Labor Code if the case involves or arises from labor disputes.

The NLRC denied petitioner's motion for reconsideration. The now petitioner, for one, cannot
validly claim that NLRC cannot exercise its injunctive power under Article 218 (e) of the Labor Code on
the pretext that what NLRC have here is not a labor dispute as long as it concedes that as defined by
law, Labor Dispute includes any controversy or matter concerning terms or conditions of employment.

Issue: WON the NLRC even without a complaint for illegal dismissal filed before the labor arbiter,
entertain an action for injunction and issue such writ enjoining petitioner Philippine Airlines, Inc. from
enforcing its Orders of dismissal against private respondents, and ordering petitioner to reinstate the
private respondents to their previous positions.

Ruling: No. It is an essential requirement that there must first be a labor dispute between the
contending parties before the labor arbiter. In the present case, there is no labor dispute between the
petitioner and private respondents as there has yet been no complaint for illegal dismissal filed with the
labor arbiter by the private respondents against the petitioner. The petition for injunction directly filed
before the NLRC is in reality an action for illegal dismissal. Thus, the NLRC exceeded its jurisdiction when
it issued the assailed Order granting private respondents' petition for injunction and ordering the
petitioner to reinstate private respondents. Under the Labor Code, the ordinary and proper recourse of
an illegally dismissed employee is to file a complaint for illegal dismissal with the labor arbiter. In the
case at bar, private respondents disregarded this rule and directly went to the NLRC through a petition
for injunction praying that petitioner be enjoined from enforcing its dismissal orders. Furthermore, an
examination of private respondents' petition for injunction reveals that it has no basis since there is no
showing of any urgency or irreparable injury which the private respondents might suffer.

An injunction, as an extraordinary remedy, is not favored in labor law considering that it

generally has not proved to be an effective means of settling labor disputes. It has been the policy of the
State to encourage the parties to use the non-judicial process of negotiation and compromise,
mediation and arbitration. Thus, injunctions may be issued only in cases of extreme necessity based on
legal grounds clearly established, after due consultations or hearing and when all efforts at conciliation
are exhausted which factors, however, are clearly absent in the present case.

Injunction is a preservative remedy for the protection of one's substantive rights or interest. It is
not a cause of action in itself but merely a provisional remedy, an adjunct to a main suit. It is resorted to
only when there is a pressing necessity to avoid injurious consequences which cannot be remedied
under any standard of compensation. The application of the injunctive writ rests upon the existence of
an emergency or of a special reason before the main case be regularly heard. The essential conditions
for granting such temporary injunctive relief are that the complaint alleges facts which appear to be
sufficient to constitute a proper basis for injunction and that on the entire showing from the contending
parties, the injunction is reasonably necessary to protect the legal rights of the plaintiff pending the
litigation. Injunction is also a special equitable relief granted only in cases where there is no plain,
adequate and complete remedy at law
LAND BANK OF THE PHILIPPINES, petitioner, 
vs.
SEVERINO LISTANA, SR., respondent.

G.R. No. 152611 August 5, 2003

Facts of the case:

Private respondent Listana voluntarily offered to sell his land of 246.0561 ha. in Sorsogon to the government,
through the Department of Agrarian Reform (DAR) under the Comprehensive Agrarian Reform Program
(CARP). DAR valued the property at P5,871,689.03 but Listana refused to sell at that price, so the
Department of Agrarian Reform Adjudication Board (DARAB), in an administrative proceeding determined the
just compensation of the land at P10,956,963.25 and ordered the Land Bank of the Philippines to pay the
same to Listana. A writ of execution was issued by PARAD to that effect but it was apparently not complied
with by LBP so a Motion for Contempt was filed by Listana with the PARAD against petitioner LBP. PARAD
granted the Motion for Contempt and cited for indirect contempt and ordered the arrest of ALEX A.
LORAYES, the Manager of LBP. LBP obtained a preliminary injunction from the Regional Trial Court of
Sorsogon enjoining DARAB from enforcing the arrest order against Lorayes. Listana filed a special civil action
for certiorari with the Court of Appeals. CA nullified the order of the RTC. Consequently, petitioner LBP filed
a petition for review with the Supreme Court.

Issue:

Whether the order for the arrest of petitioner's manager, Mr. Alex Lorayes by the PARAD, was valid.

Ruling:
The arrest order issued by PARAD against Lorayes was not valid because the contempt proceedings initiated
through an unverified "Motion for Contempt" filed by the respondent with the PARAD were themselves
invalid. Said proceedings were invalid for the following reasons:

First, the Rules of Court clearly require the filing of a verified petition with the Regional Trial Court, which
was not complied with in this case. The charge was not initiated by the PARAD motu proprio; rather, it was
by a motion filed by respondent. 

Second, neither the PARAD nor the DARAB have jurisdiction to decide the contempt charge filed by the
respondent. The issuance of a warrant of arrest was beyond the power of the PARAD and the DARAB.
Consequently, all the proceedings that stemmed from respondent?s "Motion for Contempt," specifically the
Orders of the PARAD dated August 20, 2000 and January 3, 2001 for the arrest of Alex A. Lorayes, are null
and void.

FEDERICO S. ROBOSA vs. NATIONAL L
ABOR RELATIONS COMMISSION 
G.R. No. 176085, February 8, 2012
 FACTS:

The NLRC issued a TRO and  directed CTMI, De Luzuriaga and other company executiv
es to cease and desist from dismissing any member of the union and from implementing 
memorandum terminating the services of the sales drivers, and to immediately reinstate 
them if the dismissals have been effected.

Allegedly, the respondents did not comply with the NLRC’s resolution. They instead mo
ved to dissolve the TRO and opposed the union’s petition for preliminary injunction. Th
en, the NLRC upgraded the TRO to a writ of preliminary injunction.The respondents mo
ved for reconsideration. The union opposed the motion and urgently moved to cite the r
esponsible CTMI officers in contempt of court.

Meanwhile, the NLRC heard the contempt charge and issued a resolution dismissing the 
charge. It ordered the labor arbiter to proceed hearing the main case on the merits.

 ISSUE:

Whether or not the NLRC has contempt powers.

HELD:
Yes. Under Article 218 the Labor Code, the NLRC (and the labor arbiters) may hold any 
offending party in contempt, directly or indirectly, and impose appropriate penalties in 
accordance with law. The penalty for direct contempt consists of either imprisonment or 
fine, the degree or amount depends on whether the contempt is against the Commission 
or the labor arbiter. The Labor Code, however, requires the labor arbiter or the Commiss
ion to deal with indirect contempt in the manner prescribed under Rule 71 of the Rules o
f Court. Rule 71 of the Rules of Court does not require the labor arbiter or the NLRC to i
nitiate indirect contempt proceedings before the trial court.  This mode is to be observed 
only when there is no law granting them contempt powers.  As is clear under Article 218
(d) of the Labor Code, the labor arbiter or the Commission is empowered or has jurisdict
ion to hold the offending party or parties in direct or indirect contempt. Robosa, et al., t
herefore, have not improperly brought the indirect contempt charges against the respon
dents before the NLRC.

SECOND DIVISION

[G.R. No. 230682. November 29, 2017]

JOLO'S KIDDIE CARTS/FUN4KIDS/MARLO U.

CABILI, petitioners, vs. EVELYN A. CABALLA and ANTHONY
M. BAUTISTA,respondents.

DECISION

PERLAS-BERNABE, J  : p

Assailed in this petition for review on certiorari 1 are the Resolutions

dated July 28, 2016 2 and February 22, 2017 3 of the Court of Appeals (CA) in
CA-G.R. SP No. 146460 which dismissed the petition for certiorari 4 filed by
petitioners Jolo's Kiddie Carts/Fun4Kids/Marlo U. Cabili (petitioners), due to a
technical ground, i.e., non-filing of a motion for reconsideration before filing a
petition for certiorari. 
cSEDTC

The Facts

The instant case stemmed from a complaint 5 for illegal dismissal,

underpayment of salaries/wages and 13th month pay, non-payment of
overtime pay, holiday pay, and separation pay, damages, and attorney's fees
filed by Evelyn A. Caballa (Caballa), Anthony M. Bautista (Bautista;
collectively, respondents), and one Jocelyn 6 S. Colisao (Colisao) against
 petitioners before the National Labor Relations Commission (NLRC).
Respondents and Colisao alleged that petitioners hired them as staff
members in the latter's business; Caballa and Bautista were assigned to man
petitioners' stalls in SM Bacoor and SM Rosario in Cavite, respectively, while
Colisao was assigned in several SM branches, the most recent of which was
in SM North EDSA. 7 They were paid a daily salary that reached P330.00 for a
six (6)-day work week from 9:45 in the morning until 9:00 o'clock in the
evening. 8 They claimed that they were never paid the monetary value of their
unused service incentive leaves, 13th month pay, overtime pay, and premium
pay for work during holidays; and that when petitioners found out that they
inquired from the Department of Labor and Employment about the prevailing
minimum wage rates, they were prohibited from reporting to their work
assignment without any justification. 9
For their part, 10 petitioners denied dismissing respondents and Colisao,
and maintained that they were the ones who abandoned their work. 11 They
likewise maintained that they paid respondents and Colisao their wages and
other benefits in accordance with the law and that their money claims were
bereft of factual and legal bases. 12

The Labor Arbiter's (LA) Ruling

In a Decision 13 dated November 27, 2015, the LA dismissed the case

insofar as Colisao is concerned for failure to prosecute. 14However, the LA
ruled in favor of respondents, and accordingly, ordered petitioners to solidarily
pay them the following, plus attorney's fees equivalent to ten percent (10%) of
the total monetary awards:
  Separatio Backwages Wage 13th Moral Exemplary Total
n Pay Differentia month damages damages
l pay
Caballa 60,580.00 109,870.80 75,156.12 10,608.0010,000.00 5,000.00 P271,214.92
Bautista 60,580.00 112,294.00 74,480.12 10,608.0010,000.00 5,000.00 272,962.12
              –––––––––––
––
              544,177.04
        Plus 10% Attorney's Fees 54,417.70
          –––––––––––
––
        GRAND TOTAL P598,594.7415
 The LA found that respondents' adequate substantiation of their claim
that they were no longer given any work assignment and were not allowed to
go anywhere near their respective workstations, coupled with petitioners'
failure to prove abandonment, justifies the finding that respondents were
indeed dismissed without just cause nor due process. 16
Aggrieved, petitioners appealed 17 to the NLRC.

The NLRC Ruling

In a Decision 18 dated April 28, 2016, the NLRC modified the LA ruling,

finding no illegal dismissal nor abandonment of work. Accordingly, the NLRC
ordered petitioners to reinstate respondents to their former or substantially
equivalent positions without loss of seniority rights and privileges; deleted the
awards for payment of backwages, separation pay, and moral and exemplary
damages; and affirmed the rest of the awards. 19 For this purpose, the NLRC
attached a Computation of Monetary Award 20 detailing the monetary awards
due to respondents, as follows: (a) for Caballa, P15,623.00 as holiday pay,
P109,870.80 as wage differential, and P75,156.12 as 13th month pay; (b) for
Bautista, P15,623.00 as holiday pay, P112,294.00 as wage differential, and
P74,480.12 as 13th month pay; and (c) attorney's fees amounting to ten
percent (10%) of the total monetary value awarded. 21
Anent the procedural matters raised by petitioners, the NLRC ruled
that: (a) petitioners waived the issue of improper venue when they failed to
raise the same before the filing of position papers; and (b) respondents
substantially complied with the requirement of verifying their position papers,
and thus, the same is not fatal to their complaint. 22 As to the merits, while the
NLRC agreed with the LA's finding that there was no abandonment on the
part of respondents, the latter were unable to adduce any proof that
petitioners indeed committed any overt or positive act operative of their
dismissal. 23 In view of the finding that there was neither dismissal on the part
of petitioners nor abandonment on the part of respondents, the NLRC ordered
the latter's reinstatement but without backwages. Finally, the NLRC held that
respondents should be entitled to their holiday pay as it is a statutory benefit
which payment petitioners failed to prove. 24
Dissatisfied, petitioners directly filed a petition for certiorari 25 before the
CA, without moving for reconsideration before the NLRC.  SDAaTC

The CA Ruling
 In a Resolution 26 dated July 28, 2016, the CA denied the petition due
to petitioners' failure to file a motion for reconsideration before the NLRC prior
to the filing of a petition for certiorari before the CA. It held that the prior filing
of such motion before the lower tribunal is an indispensable requisite in
elevating the case to the CA via certiorari, and that petitioners' failure to do so
resulted in the NLRC ruling attaining finality. 27
Petitioners moved for reconsideration, 28 but the same was denied in a
Resolution 29 dated February 22, 2017; hence, this petition. 30

The Issue Before the Court

The issues for the Court's resolution are whether or not the CA was
correct in: (a) dismissing the petition for certiorari before it due to petitioners'
non-filing of a prior motion for reconsideration before the NLRC;
and (b) effectively affirming the NLRC ruling, which not only increased
respondents' awards of wage differential and 13th month pay, but also
awarded an additional monetary award as holiday pay.

The Court's Ruling

The petition is partly meritorious.

I.

As a rule, the filing of a motion for reconsideration is a condition sine

qua non to the filing of a petition for certiorari. 31 The rationale for this
requirement is that "the law intends to afford the tribunal, board or office an
opportunity to rectify the errors and mistakes it may have lapsed into before
resort to the courts of justice can be had." 32 Notably, however, there are
several recognized exceptions to the rule, one of which is when the order is a
patent nullity. 33
In this case, records show that the LA ruled in favor of respondents,
and accordingly, ordered petitioners to pay them the following monetary
awards:
  Separatio Backwage Wage 13th Moral Exemplar Total
n Pay s Differentia month damages y
l pay damages
Caballa 60,580.00 109,870.80 75,156.12 10,608.0 10,000.0 5,000.00 P271,214.9
0 0 2
Bautist 60,580.00 112,294.00 74,480.12 10,608.0 10,000.0 5,000.00 272,962.12
a 0 0
              ––––––––––
–
              544,177.04
        Plus 10% Attorney's Fees 54,417.70
          ––––––––––
–
        GRAND TOTAL P598,594.7
4

Upon petitioners' appeal to the NLRC, the LA ruling was modified,

deleting the awards for separation pay, backwages, moral damages, and
exemplary damages, while affirming the awards for wage differential and 13th
month pay. In the Computation of Monetary Award 34attached to the NLRC
ruling — which according to the NLRC itself, shall form part of its
decision 35 — it was indicated that Caballa's awards for wage differential and
13th month pay are in the amounts of P109,870.80 and P75,156.12,
respectively; while the awards in Bautista's favor were pegged at P112,294.00
and P74,480.12, respectively. However, a simple counterchecking of the
NLRC's computation with the LA ruling readily reveals that: (a) the amounts of
P109,870.80 and P112,294.00 clearly pertain to the awards of backwages,
which were already deleted in the NLRC ruling; (b) the amounts of
P75,156.12 and P74,480.12 pertain to the awards of wage differential;
and (c) the amount of P10,608.00 which pertain to the awards of 13th month
pay for both respondents, were no longer reflected in the NLRC computation.
While this is obviously just an oversight on the part of the NLRC, it is not
without any implications as such oversight resulted in an unwarranted
increase in the monetary awards due to respondents. Clearly, such an
increase is a patent nullity as it is bereft of any factual and/or legal basis.
Verily, the CA erred in dismissing the petition for certiorari filed before it
based on the aforesaid technical ground, as petitioners were justified in
pursuing a direct recourse to the CA even without first moving for
reconsideration before the NLRC. In such instance, court procedure dictates
that the case be remanded to the CA for a resolution on the merits. However,
when there is already enough basis on which a proper evaluation of the merits
may be had, as in this case, the Court may dispense with the time-consuming
procedure of remand in order to prevent further delays in the disposition of the
case and to better serve the ends of justice. 36 In view of the foregoing — as
well as the fact that petitioners pray for a resolution on the merits 37 — the
Court finds it appropriate to exhaustively resolve the instant case.
 II.

It must be stressed that to justify the grant of the extraordinary remedy

of certiorari, petitioners must satisfactorily show that the court or quasi-judicial
authority gravely abused the discretion conferred upon it. Grave abuse of
discretion connotes judgment exercised in a capricious and whimsical manner
that is tantamount to lack of jurisdiction. To be considered "grave," discretion
must be exercised in a despotic manner by reason of passion or personal
hostility, and must be so patent and gross as to amount to an evasion of
positive duty or to a virtual refusal to perform the duty enjoined by or to act at
all in contemplation of law. 38
In labor cases, grave abuse of discretion may be ascribed to the NLRC
when its findings and conclusions are not supported by substantial evidence,
which refers to that amount of relevant evidence that a reasonable mind might
accept as adequate to justify a conclusion. Thus, if the NLRC's ruling has
basis in the evidence and the applicable law and jurisprudence, then no grave
abuse of discretion exists and the CA should so declare and, accordingly,
dismiss the petition. 39
Guided by the foregoing considerations and as will be explained
hereunder, the Court finds that the NLRC did not gravely abuse its discretion
in ruling that: (a) petitioners are barred from raising improper venue and that
the verification requirement in respondents' position paper was substantially
complied with; and (b) respondents were neither dismissed by petitioners nor
considered to have abandoned their jobs. However and as already discussed,
the NLRC committed grave abuse of discretion amounting to lack or excess of
jurisdiction when it awarded respondents increased monetary benefits without
any factual and/or legal bases.  acEHCD

III.

Anent the first procedural issue, petitioners insist that since

respondents worked in Cavite, they should have filed their complaint before
the Regional Arbitration Branch IV of the NLRC and not in Manila, pursuant to
Section 1, Rule IV of the 2011 NLRC Rules of Procedure. As such, the LA in
Manila where the complaint was filed had no jurisdiction to rule on the
same. 40 However, such insistence is misplaced as the aforesaid provision of
the 2011 Rules of Procedure clearly speaks of venue and not jurisdiction.
Moreover, paragraph (c) of the same provision explicitly provides that "[w]hen
venue is not objected to before the first scheduled mandatory conference,
such issue shall be deemed waived." Here, the NLRC aptly pointed out that
petitioners only raised improper venue for the first time in their position
paper, 41and as such, they are deemed to have waived the same.
In this relation, Article 224 (formerly Article 217) 42 of the Labor Code,
as amended, clearly provides that the LAs shall have exclusive and original
jurisdiction to hear and decide, inter alia, termination disputes and money
claims arising from employer-employee relations, as in this case. As such, the
LA clearly had jurisdiction to resolve respondents' complaint.
Another procedural issue raised by petitioners is that respondents
signed the Verification and Affidavit of Non-Forum Shopping attached to their
Position Paper a day earlier than the date such pleading was filed by their
counsel. In this regard, petitioners assert that such is a fatal infirmity that
necessitates the dismissal of respondents' complaint. 43 However, the NLRC
correctly ruled that respondents' substantial compliance with the requirement,
coupled with their meritorious claims against petitioners, necessitates
dispensation with the strict compliance with the rules on verification and
certification against forum shopping in order to better serve the ends of
justice. InFernandez v. Villegas, 44 the Court held:
The Court laid down the following guidelines with respect to
non-compliance with the requirements on or submission of a defective
verification and certification against forum shopping, viz.:
1) A distinction must be made between non-compliance with the
requirement on or submission of defective verification, and non-
compliance with the requirement on or submission of defective
certification against forum shopping.
2) As to verification, non-compliance therewith or a defect
therein does not necessarily render the pleading fatally defective.
The court may order its submission or correction or act on the
pleading if the attending circumstances are such that strict
compliance with the Rule may be dispensed with in order that the
ends of justice may be served thereby.
3) Verification is deemed substantially complied with when one
who has ample knowledge to swear to the truth of the allegations in the
complaint or petition signs the verification, and when matters alleged in
the petition have been made in good faith or are true and correct.
4) As to certification against forum shopping, non-
compliance therewith or a defect therein, unlike in verification, is
generally not curable by its subsequent submission or correction
thereof, unless there is a need to relax the Rule on the ground of
"substantial compliance" or presence of "special circumstances
or compelling reasons."
5) The certification against forum shopping must be signed by
all the plaintiffs or petitioners in a case; otherwise, those who did not
 sign will be dropped as parties to the case. Under reasonable or
justifiable circumstances, however, as when all the plaintiffs or
petitioners share a common interest and involve a common cause of
action or defense, the signature of only one of them in the certification
against forum shopping substantially complies with the Rule.
6) Finally, the certification against forum shopping must be
executed by the party-pleader, not by his counsel. If, however, for
reasonable or justifiable reasons, the party-pleader is unable to sign,
he must execute a Special Power of Attorney designating his counsel
of record to sign on his behalf.
xxx xxx xxx
Besides, it is settled that the verification of a pleading is only
a formal, not a jurisdictional requirement intended to secure the
assurance that the matters alleged in a pleading are true and
correct. Therefore, the courts may simply order the correction of
the pleadings or act on them and waive strict compliance with the
rules, as in this case.
xxx xxx xxx
Similar to the rules on verification, the rules on forum
shopping are designed to promote and facilitate the orderly
administration of justice; hence, it should not be interpreted with
such absolute literalness as to subvert its own ultimate and
legitimate objectives. The requirement of strict compliance with
the provisions on certification against forum shopping merely
underscores its mandatory nature to the effect that the
certification cannot altogether be dispensed with or its
requirements completely disregarded. It does not prohibit
substantial compliance with the rules under justifiable
circumstances, as also in this case. 45 (Emphases and underscoring
supplied)

IV.

In Claudia's Kitchen, Inc. v. Tanguin, 46 the Court was faced with a

situation where, on the one hand, the employee claimed she was illegally
dismissed by her employer; on the other, the employer denied ever dismissing
such employee and even accused the latter of abandoning her job, as in this
case. In resolving the matter, the Court extensively discussed:
In cases of illegal dismissal, the employer bears the burden of
proof to prove that the termination was for a valid or authorized
cause.But before the employer must bear the burden of proving
that the dismissal was legal, the employees must first establish
 by substantial evidence that indeed they were dismissed. If there
is no dismissal, then there can be no question as to the legality or
illegality thereof. In Machica v. Roosevelt Services Center, Inc., the
Court enunciated:
The rule is that one who alleges a fact has the
burden of proving it; thus, petitioners were burdened
to prove their allegation that respondents dismissed
them from their employment. It must be stressed that
the evidence to prove this fact must be clear, positive and
convincing. The rule that the employer bears the burden
of proof in illegal dismissal cases finds no application
here because the respondents deny having dismissed
the petitioners. 
SDHTEC

xxx xxx xxx

The Court further agrees with the findings of the LA, the NLRC[,]
and the CA that Tanguin was not guilty of abandonment. Tan Brothers
Corporation of Basilan City v. Escudero extensively discussed
abandonment in labor cases:
As defined under established jurisprudence,
abandonment is the deliberate and unjustified refusal of
an employee to resume his employment. It constitutes
neglect of duty and is a just cause for termination of
employment under paragraph (b) of Article 282 [now
Article 296] of the Labor Code. To constitute
abandonment, however, there must be a clear and
deliberate intent to discontinue one's employment
without any intention of returning. In this regard, two
elements must concur: (1) failure to report for work
or absence without valid or justifiable reason; and
(2) a clear intention to sever the employer-employee
relationship, with the second element as the more
determinative factor and being manifested by some
overt acts. Otherwise stated, absence must be
accompanied by overt acts unerringly pointing to the fact
that the employee simply does not want to work
anymore. It has been ruled that the employer has the
burden of proof to show a deliberate and unjustified
refusal of the employee to resume his employment
without any intention of returning. 47(Emphases and
underscoring supplied)
As aptly ruled by the NLRC, respondents failed to prove their allegation
that petitioners dismissed them from work, as there was no indication as to
how the latter prevented them from reporting to their work stations; or that the
petitioners made any overt act that would suggest that they indeed terminated
respondents' employment. 48 In the same vein, petitioners failed to prove that
respondents committed unequivocal acts that would clearly constitute intent to
abandon their employment. It may even be said that respondents' failure to
report for work may have been a direct result of their belief, albeit misplaced,
that they had already been dismissed by petitioners. Such mistaken belief on
the part of the employee should not lead to a drastic conclusion that he has
chosen to abandon his work. 49 More importantly, respondents' filing of a
complaint for illegal dismissal negates any intention on their part to sever their
employment relations with petitioners. 50 To reiterate, abandonment of
position is a matter of intention and cannot be lightly inferred, much less
legally presumed, from certain equivocal acts. 51
In light of the finding that respondents neither abandoned their
employment nor were illegally dismissed by petitioners, it is only proper for the
former to report back to work and for the latter to reinstate them to their former
positions or a substantially-equivalent one in their stead. In this regard,
jurisprudence provides that in instances where there was neither dismissal by
the employer nor abandonment by the employee, the proper remedy is to
reinstate the employee to his former position but without the award of
backwages. 52
As for respondents' money claims for holiday pay, wage differential, and
13th month pay, the NLRC properly observed that petitioners failed to show
that payment has been made. As such, they must be held liable for the same.
It is well-settled that "with respect to labor cases, the burden of proving
payment of monetary claims rests on the employer, the rationale being that
the pertinent personnel files, payrolls, records, remittances and other similar
documents — which will show that overtime, differentials, service incentive
leave and other claims of workers have been paid — are not in the
possession of the worker but in the custody and absolute control of the
employer." 53 However and as already adverted to earlier, the awards of wage
differential and 13th month pay due to respondents must be adjusted to
properly reflect the computation made by the LA, in that: (a) Caballa is entitled
to wage differential and 13th month pay in the amounts of P75,156.12 and
P10,608.00, respectively; while (b) Bautista's entitlement to such claims are in
the amounts of P74,480.12 and P10,608.00, respectively.
In the same manner, the NLRC correctly awarded attorney's fees to
respondents, in light of Article 111 (a) of the Labor Code which states that:
"[i]n cases of unlawful withholding of wages, the culpable party may be
assessed attorney's fees equivalent to ten percent (10%) of the amount of
wages recovered," as in this case.  AScHCD
 Finally, all monetary awards due to respondents shall earn legal interest
at the rate of six percent (6%) per annum from the finality of this Decision until
fully paid, pursuant to prevailing jurisprudence. 54
WHEREFORE, the petition is PARTLY GRANTED. The Resolutions
dated July 28, 2016 and February 22, 2017 of the Court of Appeals in CA-
G.R. SP No. 146460 are hereby SET ASIDE. Accordingly, the Decision dated
April 28, 2016 of the National Labor Relations Commission
isAFFIRMED with MODIFICATION, ordering petitioners Jolo's Kiddie
Carts/Fun4Kids/Marlo U. Cabili to pay:
a) Respondent Evelyn A. Caballa the amounts of P15,623.00 as holiday
pay, P75,156.12 as wage differential, and P10,608.00 as 13th
month pay, plus attorney's fees amounting to ten percent (10%)
of the aforesaid monetary awards. Further, said amounts shall
then earn legal interest at the rate of six percent (6%) per annum
from the finality of the Decision until fully paid; and
b) Respondent Anthony M. Bautista the amounts of P15,623.00 as
holiday pay, P74,480.12 as wage differential, and P10,608.00 as
13th month pay, plus attorney's fees amounting to ten percent
(10%) of the aforesaid monetary awards. Further, said amounts
shall then earn legal interest at the rate of six percent (6%) per
annum from the finality of the Decision until fully paid.
Finally, the Temporary Restraining Order dated May 26, 2017 issued in
relation to this case is hereby LIFTED. The Decision dated April 28, 2016 of
the National Labor Relations Commission in NLRC NCR Case No. 03-03168-
15 (NLRC LAC No. 02-000701-16), as modified, shall be implemented in
accordance with this Decision.
SO ORDERED.
|||  (Jolo's Kiddie Carts v. Caballa, G.R. No. 230682, [November 29, 2017])
[G.R. No. 178379. August 22, 2017.]

CRISPIN S. FRONDOZO, * DANILO M. PEREZ, JOSE A. ZAFRA,

ARTURO B. VITO, CESAR S. CRUZ, NAZARIO C. DELA CRUZ,
and LUISITO R. DILOY, petitioners, vs. MANILA ELECTRIC
COMPANY, respondent.

DECISION
CARPIO, J  :p

The Case
Before the Court is a petition for review on certiorari 1 assailing the 6
March 2007 Decision 2 and the 14 June 2007 Resolution 3 of the Court of
Appeals in CA-G.R. SP No. 95747. The Court of Appeals affirmed the 28
February 2006 Resolution 4 and the 26 May 2006 Resolution 5 of the National
Labor Relations Commission (NLRC) which granted the prayer for preliminary
injunction of respondent Manila Electric Company (MERALCO) and denied
therein petitioners' motion for reconsideration. 
HTcADC

The Antecedent Facts

The case originated from a Notice of Strike (first strike) filed on 16 May
1991 by the MERALCO Employees and Workers Association (MEWA),
composed of MERALCO's rank-and-file employees, on the ground of Unfair
Labor Practice (ULP). Conciliation conferences conducted by the National
Conciliation and Mediation Board (NCMB) failed to settle the dispute and
resulted to a strike staged by MEWA on 6 June 1991. In an Order dated 6
June 1991, 6 then Acting Secretary Nieves R. Confesor of the Department of
Labor and Employment (DOLE) certified the labor dispute to the NLRC for
compulsory arbitration, ordered all the striking workers to return to work, and
directed MERALCO to accept the striking workers back to work under the
same terms and conditions existing prior to the work stoppage.
On 26 July 1991, MERALCO terminated the services of Crispin
S. Frondozo (Frondozo), Danilo M. Perez (Perez), Jose A. Zafra (Zafra),
Arturo B. Vito (Vito), 7 Cesar S. Cruz (Cruz), Nazario C. dela Cruz (N. dela
Cruz), Luisito R. Diloy (Diloy), and Danilo D. Dizon (Dizon) for having
committed unlawful acts and violence during the strike.
On 25 July 1991, MEWA filed a second Notice of Strike (second strike)
on the ground of discrimination and union busting that resulted to the
dismissal from employment of 25 union officers and workers. Then DOLE
Secretary Ruben D. Torres issued an Order dated 8 August 1991 8 that
certified the issues raised in the second strike to the NLRC for consolidation
with the first strike and strictly enjoined any strike or lockout pending
resolution of the labor dispute. The Order also directed MERALCO to suspend
the effects of termination of the employees and re-admit the employees under
the same terms and conditions without loss of seniority rights.
The labor dispute resulted to the filing of two complaints for illegal
dismissal:
(1) NLRC NCR Case No. 00-08-04146-92 filed by Dizon, Diloy, Patricio
Maniacop, Wilfredo Lagason, Venancio Arguzon, Jr., Rogelio
 Antonio, Lauro Garcia, Alfredo Badilla, Jr., and Reynaldo Javier;
and
(2) NLRC NCR Case No. 00-12-06878-92 filed by MEWA, Reynaldo M.
Caberte (Caberte), Alfredo dela Cruz (A. dela Cruz), Nataner F.
Pingol (Pingol), Vincent G. Rallos, Enrique T. Barrientos
(Barrientos), Melchor E. Banaga (Banaga), Zafra, Perez, Vito, N.
dela Cruz, Cruz, and Frondozo.
The NLRC consolidated the two illegal dismissal cases with NLRC NCR
CC No. 000021-91 (In the Matter of the Labor Dispute at the Manila Electric
Company) and NLRC NCR Case No. 00-05-03381-93 (MEWA v. MERALCO).
On 23 January 1998, the NLRC's First Division rendered a Decision, 9 the
dispositive portion of which reads:
WHEREFORE, judgment is hereby rendered:
1. denying the motion for reconsideration of Patricio Maniacop, et al.
[the nine (9) quitclaiming complainants] in NLRC Case No. 00-08-
04146-92;
2. upholding Meralco's dismissal of Jose A. Zafra, Alfredo dela Cruz,
Reynaldo M. Caberte, Nataner F. Pingol, Vincent G. Rallos, Enrique
Barrientos, Danilo M. Perez, Arturo B. Vito, Nazario C. dela Cruz,
Melchor E. Banaga, Cesar S. Cruz, and Crispin S. Frondozo in view of
the illegal acts they committed during the subject strike;
3. directing complainants Danilo Dizon and Luisito Diloy as well as
respondent Meralco to submit a memorandum of arguments relative to
NLRC NCR Case No. 00-08-04146-92; and
4. directing MEWA and Meralco to submit memorandum of arguments
in support of their respective position in NLRC NCR CC No. 000021-
91.
Labor Arbiter Adolfo C. Babiano is directed to continue handling
this case and to submit periodic report[s] thereon.
SO ORDERED. 10
However, in a Decision promulgated on 14 December 2001, 11 the
NLRC First Division modified the 23 January 1998 Decision and ruled:
WHEREFORE, premises considered, the Decision of January
23, 1998 is hereby MODIFIED:  aScITE

1. Declaring the illegality of the strike of June 6-8, 1991 on the basis of
the uncontested facts and allegations of the respondent;
2. As a matter of consequence, the officers and members who
participated therein and who committed the illegal acts perforce are
hereby deemed to have lost their employment status;
 3. The dismissal of complainants Jose Zafra, Vicente G. Rallos,
Enrique T. Barrientos, Reynaldo M. Caberte, Cesar S. Cruz, Nazario
C. dela Cruz, Arturo B. Vito, Melchor E. Banaga, Alfredo dela Cruz,
Nataner F. Pingol, Danilo M. Perez, and Crispin S. Frondozo [is]
hereby declared unjustified, their participation in the commission of the
prohibited and illegal acts not having been proved;
4. Accordingly, respondent is hereby ordered to reinstate the twelve
(12) complainants, without however, payment of backwages,
complainants themselves having admitted participation in the strike.
SO ORDERED. 12
In an Order dated 29 May 2002, 13 the NLRC ruled on the motions for
reconsideration filed by MERALCO, Dizon and Diloy, and the 12 respondents
in NLRC NCR Case No. 00-12-06878-92, as follows:
WHEREFORE, premises considered, the Decision appealed
from is, as it is hereby MODIFIED: ordering respondent MANILA
ELECTRIC COMPANY to reinstate to their former or equivalent
positions DANILO DIZON and LUISITO DILOY, without loss of
seniority rights and payment of backwages computed from the time of
their dismissal.
The rest of the decretal portion of the Decision of December 14,
2001 stays.
SO ORDERED. 14
From the 14 December 2001 Decision and 29 May 2002 Order of the
NLRC, two petitions for certiorari were filed before the Court of Appeals:
1. CA-G.R. SP No. 72480 filed by MERALCO; and
2. CA-G.R. SP No. 72509 filed by Frondozo, Barrientos, Pingol,
Caberte, Zafra, Perez, Cruz, A. dela Cruz, and Banaga.
MERALCO moved for the consolidation of the two cases but the motion
was denied.
On 31 July 2002, the NLRC issued an Entry of Judgment 15 stating that
the 29 May 2002 NLRC Order became final and executory on 19 July 2002.
On 3 October 2002, Labor Arbiter Veneranda C. Guerrero (Labor Arbiter
Guerrero) issued a Writ of Execution 16 directing the reinstatement of the
14 17respondents. In a Manifestation dated 24 January 2003, 18 MERALCO
informed the NLRC of the payroll reinstatement of the 14 respondents.
On 30 May 2003, the Court of Appeals' Special Second Division
promulgated its Decision in CA-G.R. SP No. 72480 19 in favor of MERALCO.
The Court of Appeals found that the strike of 6-8 June 1991 was illegal
because it occurred despite an assumption order by the DOLE Secretary and
because of the commission of illegal acts marred with violence and coercion.
The dispositive portion of the Decision reads:
WHEREFORE, premises considered, petition is hereby granted.
The decision of the Labor Arbiter dated 16 January 1998 and ruling of
the NLRC dated 23 January 1998 are reinstated. Private respondents
Jose Zafra, Vincent G. Rallos, Enrique T. Barrientos, Reynaldo M.
Caberte, Cesar S. Cruz, Nazario C. [d]ela Cruz, Arturo B. Vito, Melchor
E. Banaga, Alfredo dela Cruz, Nataner F. Pingol, Danilo M. Perez,
Crispin S. Frondozo, Danilo Dizon and Luisito Diloy are dismissed from
service.
SO ORDERED. 20
In view of the 30 May 2003 Decision of the Court of Appeals' Special
Second Division dismissing the 14 respondents from the service, MERALCO
stopped their payroll reinstatement.
On 11 June 2003, Labor Arbiter Guerrero approved the computation of
backwages and ordered the issuance of a Writ of Execution for the
satisfaction of the judgment award. MERALCO filed a Manifestation calling
the attention of Labor Arbiter Guerrero to the 30 May 2003 Decision of the
Court of Appeals' Special Second Division in CA-G.R. SP No. 72480. In an
Order dated 7 October 2003, Labor Arbiter Guerrero ruled that the Court of
Appeals' 30 May 2003 Decision had not attained finality and as such,
respondents should be reinstated from the time they were removed from the
payroll until their actual/payroll reinstatement based on their latest salary prior
to their dismissal. An Alias Writ of Execution 21 was issued on 10 October
2003 for the satisfaction of the judgment award which resulted to the
garnishment of MERALCO's funds deposited with Equitable-PCI Bank.
Dizon, Diloy, and the other respondents filed their respective motions
for reconsideration in CA-G.R. SP No. 72480, which the Court of Appeals'
(Former) Special Second Division denied in its 18 December 2003 Resolution.
On 27 January 2004, the Court of Appeals' Fourteenth Division
promulgated its Decision in CA-G.R. SP No. 72509 22 as follows:
WHEREFORE, in view of the foregoing, the petition is
PARTIALLY GIVEN DUE COURSE. The assailed Decision of
December 14, 2001 and the Order of May 29, 2002 of public
respondent National Labor Relations Commission are hereby
MODIFIED in that respondent MERALCO is ordered to pay the
petitioners full backwages computed from July 26, 1991, when they
were illegally dismissed, up to the date of their actual reinstatement in
the service. 
HEITAD

SO ORDERED. 23
 MERALCO filed a motion for reconsideration but it was denied in the
Resolution of 17 August 2004.
The respondents moved for the issuance of an Alias Writ of Execution
for the satisfaction of their accrued wages arising from the recall of their
payroll reinstatement. On 10 June 2004, Labor Arbiter Guerrero granted the
motion. On 14 June 2004, a Second Alias Writ of Execution 24 was issued
directing the Sheriff to cause the reinstatement of the respondents and to
collect the amount of P2,851,453 representing backwages from 14 December
2001 to 15 January 2003 and from 1 June 2003 to 1 June 2004. 25 MERALCO
filed a motion to quash the Second Alias Writ of Execution but it was denied
on 2 July 2004. On 20 July 2004, the Sheriff reported that the amount of
P2,879,967.53 garnished funds had been delivered to and deposited with the
NLRC Cashier for the satisfaction of the monetary award. 26 However, the
reinstatement portion of the judgment remained unimplemented due to the
failure of MERALCO to reinstate the respondents.
On 6 February 2004, Dizon and Diloy filed a petition before this Court
assailing the 30 May 2003 Decision and 18 December 2003 Resolution of the
Court of Appeals' Special Second Division in CA-G.R. SP No. 72480. The
case was docketed as G.R. No. 161159.
On 12 February 2004, Frondozo, Barrientos, Pingol, Caberte, Perez,
Cruz, A. dela Cruz, and Banaga filed a petition before this Court assailing the
same 30 May 2003 Decision and 18 December 2003 Resolution of the Court
of Appeals' Special Second Division in CA-G.R. SP No. 72480. The case was
docketed as G.R. No. 161311.
On 11 October 2004, MERALCO filed a petition before this Court
questioning the 27 January 2004 and 17 August 2004 Decision of the Court of
Appeals' Fourteenth Division promulgated in CA-G.R. SP No. 72509. The
case was docketed as G.R. No. 164998.
In a Resolution dated 23 February 2004, 27 this Court's Third Division
denied the petition in G.R. No. 161159 on the ground that the petitioners
failed to show that a reversible error had been committed by the Court of
Appeals in rendering its Decision.
In a Resolution dated 3 March 2004, the Court's Second Division
referred G.R. No. 161311 for consolidation with G.R. No. 161159. 28
In a Resolution dated 24 May 2004, 29 the Court's Third Division denied
with finality the petitioners' motion for reconsideration of the 23 February 2004
Resolution denying the petition in G.R. No. 161159 on the ground that no
substantial arguments were raised to warrant a reconsideration of the Court's
Resolution. In the same Resolution, the Court denied the petition in G.R. No.
161311 for failure of petitioners therein to show that a reversible error had
been committed by the appellate court.
Petitioners in G.R. No. 161311 filed a motion for reconsideration of the
24 May 2004 Resolution denying their petition. In its 28 July 2004
Resolution, 30the Court's Third Division denied the motion with finality as no
substantial arguments were raised to warrant a reconsideration of the
Resolution.
The 23 February 2004 Resolution became final and executory on 15
July 2004. 31 The 24 May 2004 Resolution became final and executory on 2
September 2004. 32
In a Resolution dated 15 June 2005, 33 the Court's First Division denied
the petition in G.R. No. 164998 for MERALCO's failure to file a reply,
amounting to failure to prosecute. MERALCO filed a motion for
reconsideration but it was denied in the Resolution of 22 August 2005. The 15
June 2005 Resolution became final and executory on 4 October 2005. 34
Meanwhile, MERALCO filed two motions before the NLRC: (1) a motion
for reconsideration and/or appeal filed on 5 July 2004 assailing the 10 June
2004 Order of Labor Arbiter Guerrero granting the issuance of the Second
Alias Writ of Execution and directing the payment of backwages of
P2,851,453 to respondents and ordering their reinstatement actually or in the
payroll, which was accompanied by a bond equivalent to the amount of the
accrued backwages; and (2) an urgent motion for the issuance of a temporary
restraining order and/or preliminary injunction filed on 13 July 2004 directed
against the Second Alias Writ of Execution pending the resolution of its first
motion.
The Resolutions of the NLRC
In a Resolution dated 28 February 2006, 35 the NLRC granted the
prayer for preliminary injunction of MERALCO. The NLRC considered the
difficulty in proceeding with the execution given the conflicting decisions of the
Court of Appeals' Special Second Division in CA-G.R. SP No. 72480 and the
Court of Appeals' Fourteenth Division in CA-G.R. SP No. 72509 that were
also passed upon by this Court, respectively, in G.R. Nos. 161159 and
161311 and in G.R. No. 164998. The NLRC ruled:
At the outset, it must be stated that while this Commission has
broad powers within its sphere of jurisdiction, it cannot encroach on
judicial power which is the exclusive domain of the courts. The Court of
Appeals has two contrasting rulings, one upholding the legality of
complainants' dismissal, and the other declaring such dismissal illegal.
This Commission has no power to overrule what has been decided by
the courts. This is especially true with respect to judgments that have
 become final and executory not only at the level of the Court of
Appeals, but also of the Supreme Court.
Indeed, there is an insurmountable obstacle in the execution of
the decision favoring complainants. If We let execution proceed, We
will disregard the Court of Appeals' ruling in the MERALCO petition. On
the other hand, We cannot declare complainants to have been legally
dismissed as this will contravene the Court of Appeals' ruling in
the Frondozo petition.
Confronted with this dilemma, and in deference to the exercise
of the judicial power as the courts may find appropriate, this
Commission has no recourse but to enjoin all proceedings until the
parties would have exhausted all available judicial remedies toward the
possible reconciliation of the contrasting decisions.
WHEREFORE, there being no speedy or adequate remedy in
the ordinary course of law, MERALCO's prayer for preliminary
injunction is GRANTED. All proceedings with this Commission as well
as with the Labor Arbiter are hereby enjoined and suspended until
further orders from the appropriate court. 
ATICcS

SO ORDERED. 36
Two sets of respondents filed their respective motions for
reconsideration. In its Resolution promulgated on 26 May 2006, 37 the NLRC
denied the motions.
Frondozo, Perez, Zafra, Vito, Cruz, N. dela Cruz, and Diloy filed a
petition for certiorari before the Court of Appeals assailing the 28 February
2006 and 26 May 2006 Resolutions of the NLRC.
The Decision of the Court of Appeals
In its 6 March 2007 Decision, the Court of Appeals affirmed the 28
February 2006 and 26 May 2006 Resolutions of the NLRC. According to the
Court of Appeals, MERALCO's recourse was due to the two separate petitions
before it (CA-G.R. SP No. 72480 and CA-G.R. SP No. 72509) that resulted in
two contradictory rulings on the matter of petitioners' dismissal. The Court of
Appeals acknowledged that the execution of a final judgment is a matter of
right on the part of the prevailing party and is mandatory and ministerial on the
part of the court or tribunal issuing the judgment. However, the Court of
Appeals stated that a suspension or refusal of execution of judgment or order
on equitable grounds can be justified when there are facts or events
transpiring after the judgment or order had become final and executory, thus
materially affecting the judgment obligation.
The Court of Appeals stated:
 In the case at bar, finality of the CA Decision in SP No. 72480
on May 24, 2004, is a supervening event which transpired after the CA
Decision in SP 72509 (which was in favor of petitioners) had become
final and executory, and which decision directly contradicts the ruling in
the said case. It may also be noted that the Resolution of the Supreme
Court's Third Division in G.R. No. 161311 categorically declared that
the petition filed by herein petitioners is being denied for their failure to
show that a reversible error has been committed by the appellate court
in rendering the decision in CA-G.R. SP No. 72480. Hence, with the
denial with finality of the petition for review in G.R. No. 161159
(161311) the CA Decision in SP 72480 upholding the dismissal of
petitionershas clearly become a legal obstacle to the enforcement of
the final and executory decision in SP 72509 which in effect declared
petitioners to have been illegally dismissed and upheld their right to
back wages computed from December 14, 2001 and up to the date of
their actual reinstatement.
In fine, no grave abuse of discretion was committed by the
NLRC in granting preliminary injunction to private respondent
MERALCO and enjoining or suspending all proceedings for the
implementation of the 2nd alias writ of execution earlier issued by
Labor Arbiter Guerrero with respect to the back wages/monetary award
and reinstatement of petitioners pursuant to the May 29, 2002 Decision
of the NLRC as affirmed/modified by the CA Decision in SP No. 72509.
As to the contention of petitioners that the NLRC should have
instead proceeded to reconcile or harmonize the conflicting decisions
rendered by the two (2) divisions of the Court, We find the same
untenable and runs against established principles of immutability of
final judgments in this jurisdiction. In fact, nothing is more settled in law
than that once a judgment attains finality it thereby becomes
immutable and unalterable. It may no longer be modified in any
respect, even if modification is meant to correct what is perceived to be
an erroneous conclusion of fact or law, and regardless of whether the
modification is attempted to be made by the court rendering it or by the
highest court of the land.
We cannot but concur with the NLRC's pronouncement that
MERALCO has no speedy and adequate remedy in the ordinary
course of law for the preservation of its rights and interests, at least
insofar only and solely as to avoid the injurious consequences of
the 2nd alias writ of execution relative to the reinstatement aspect of
the final decision in CA-G.R. No. SP 72509. 38
The dispositive portion of the Court of Appeals' Decision reads:
WHEREFORE, premises considered, the present petition is
hereby DENIED DUE COURSE and accordingly DISMISSED for lack
of merit. The challenged Resolutions dated February 28, 2006 and
 May 26, 2006 of the National Labor Relations Commission are hereby
AFFIRMED.
No pronouncement as to costs.
SO ORDERED. 39 (Italicization in the original)
The petitioners in CA-G.R. SP No. 95747 filed a motion for
reconsideration. In its 14 June 2007 Resolution, the Court of Appeals denied
the motion for lack of merit.
Hence, the petition for review filed before this Court by Frondozo,
Perez, Zafra, Vito, Cruz, N. dela Cruz, and Diloy. 40
Petitioners alleged that the Court of Appeals committed grave abuse of
discretion in upholding the 28 February 2006 and 26 May 2006 Resolutions of
the NLRC, in not passing upon the issues of reinstatement and release of the
garnished amount against MERALCO, and in ruling that the Decision in CA-
G.R. SP No. 72480 is considered a bar in the implementation of the Decision
in CA-G.R. SP No. 72509.
The Issue
Whether the Court of Appeals committed a reversible error in upholding
the NLRC in issuing the writ of preliminary injunction prayed for by
MERALCO.
The Ruling of this Court
The petition has no merit.
The Court of Appeals cited the 2005 Revised Rules of Procedure of the
NLRC which provides that "[u]pon issuance of the entry of judgment, the
Commission, motu proprio or upon motion by the proper party, may cause the
execution of the judgment in the certified case." According to the Court of
Appeals, the 2005 Revised Rules of Procedure of the NLRC did not make a
distinction between decisions or resolutions decided by the Labor Arbiter and
those decided by the Commission in certified cases when an order of
reinstatement is involved. Thus, even when the employer had perfected an
appeal, the Labor Arbiter must issue a writ of execution for actual or payroll
reinstatement of the employees illegally dismissed from the service. The
Court of Appeals also cited Article 223 of the Labor Code which provides that
the reinstatement aspect of the Labor Arbiter's Decision is immediately
executory.
In this case, the applicable rule is Article 263 of the Labor Code and the
NLRC Manual on Execution of Judgment, as amended by Resolution No. 02-
02, series of 2002. Section 1, Rule III of the NLRC Manual on Execution of
Judgment provides:  TIADCc
 Section 1. Execution Upon Final Judgment or Order. Execution
shall issue only upon a judgment or order that finally disposes of an
action or proceeding, except in specific instances where the law
provides for execution pending appeal.
Article 263 (i) of the Labor Code, on the other hand, provides:
(i) The Secretary of Labor and Employment, the Commission or the
voluntary arbitrator shall decide or resolve the dispute within thirty (30)
calendar days from the date of the assumption of jurisdiction or the
certification or submission of the dispute, as the case may be. The
decision of the President, the Secretary of Labor and Employment, the
Commission or the voluntary arbitrator shall be final and executory ten
(10) calendar days after receipt thereof by the parties.
A judicial review of the decisions of the NLRC may be filed before the Court of
Appeals via a petition for certiorari under Rule 65 of the Rules of Court but the
petition shall not stay the execution of the assailed decision unless a
restraining order is issued by the Court of Appeals. 41
In this case, the NLRC issued an Entry of Judgment stating that the 29
May 2002 NLRC Order became final and executory on 19 June 2002; a Writ
of Execution was issued; and MERALCO complied with the payroll
reinstatement of petitioners. However, with the promulgation of the 30 May
2003 Decision of the Court of Appeals' Special Second Division, finding that
the 6-8 June 1991 strike was illegal, illegal acts marred with violence and
coercion were committed, and dismissing petitioners from the service,
MERALCO stopped the payroll reinstatement. This prompted petitioners to
move for the issuance of an Alias Writ of Execution for the satisfaction of their
accrued wages arising from the recall of their payroll reinstatement which
Labor Arbiter Guerrero granted on 10 June 2004. Later, a second Alias Writ of
Execution was issued.
As both the NLRC and the Court of Appeals stated, they were
confronted with two contradictory Decisions of two different Divisions of the
Court of Appeals. The petitions questioning these two Decisions of the Court
of Appeals were both denied by this Court and the denial attained finality. The
Court of Appeals sustained the NLRC that the 30 May 2003 Decision of the
Court of Appeals' Special Second Division is a subsequent development that
justified the suspension of the Alias Writs of Execution.
There are instances when writs of execution may be assailed. They are:
(1) the writ of execution varies the judgment;
(2) there has been a change in the situation of the parties making
execution inequitable or unjust;
(3) execution is sought to be enforced against property exempt from
execution;
 (4) it appears that the controversy has been submitted to the judgment
of the court;
(5) the terms of the judgment are not clear enough and there remains
room for interpretation thereof; or
(6) it appears that the writ of execution has been improvidently issued,
or that it is defective in substance, or issued against the wrong party,
or that the judgment debt has been paid or otherwise satisfied, or the
writ was issued without authority. 42
The situation in this case is analogous to a change in the situation of
the parties making execution unjust or inequitable. MERALCO's refusal to
reinstate petitioners and to pay their backwages is justified by the 30 May
2003 Decision in CA-G.R. SP No. 72480. On the other hand, petitioners'
insistence on the execution of judgment is anchored on the 27 January 2004
Decision of the Court of Appeals' Fourteenth Division in CA-G.R. SP No.
72509. Given this situation, we see no reversible error on the part of the Court
of Appeals in holding that the NLRC did not commit grave abuse of discretion
in suspending the proceedings. Grave abuse of discretion implies that the
respondent court or tribunal acted in a capricious, whimsical, arbitrary or
despotic manner in the exercise of its jurisdiction as to be equivalent to lack of
jurisdiction. 43 Thus, this Court declared:
The term "grave abuse of discretion" has a specific meaning. An
act of a court or tribunal can only be considered as with grave abuse of
discretion when such act is done in a "capricious or whimsical exercise
of judgment as is equivalent to lack of jurisdiction." The abuse of
discretion must be so patent and gross as to amount to an "evasion of
a positive duty or to a virtual refusal to perform a duty enjoined by law,
or to act at all in contemplation of law, as where the power is exercised
in an arbitrary and despotic manner by reason of passion and hostility."
Furthermore, the use of a petition for certiorari is restricted only to
"truly extraordinary cases wherein the act of the lower court or quasi-
judicial body is wholly void." From the foregoing definition, it is clear
that the special civil action of certiorari under Rule 65 can only strike
an act down for having been done with grave abuse of discretion if the
petitioner could manifestly show that such act was patent and gross. x
x x. 44
Clearly, the NLRC did not act in a capricious, whimsical, arbitrary, or
despotic manner. It suspended the proceedings because it cannot revise or
modify the conflicting Decisions of the Court of Appeals.
However, we need to resolve the issue on the conflicting Decisions in
order to put an end to this litigation.
The Court of Appeals stated that "the finality of the CA Decision in SP
No. 72480 on May 24, 2004, is a supervening event which transpired after the
CA Decision in SP No. 72509 (which was in favor of petitioners) had become
final and executory." 45 This is not accurate. The Decision in CA-G.R. SP No.
72480 was promulgated on 30 May 2003. The Decision in CA-G.R. SP No.
72509 was promulgated on 27 January 2004. Even when the cases were
elevated to this Court, G.R. No. 161159 and G.R. No. 161311 were resolved
first before G.R. No. 164998. The Court's 23 February 2004 Resolution and
the 24 May 2004 Resolution, both favoring MERALCO, became final and
executory on 15 July 2004 and 2 September 2004, respectively, while the
Resolution of 15 June 2005 which denied MERALCO's petition for review
became final and executory on 4 October 2005, over a year after the final
resolutions in G.R. Nos. 161159 and 161311.  AIDSTE

Further, contrary to the finding of the Court of Appeals that CA-G.R. SP

Nos. 72480 and 72509 attained finality without this Court actually passing
upon the merits of the illegal dismissal aspect, this Court actually ruled on the
merits of CA-G.R. SP No. 72480. The Court's Third Division denied the
petition in G.R. No. 161159 in its 23 February 2004 Resolution on the ground
that the petitioners failed to show that a reversible error had been committed
by the Court of Appeals in rendering its Decision in CA-G.R. SP No. 72480.
The Court's Third Division also denied the petition in G.R. No. 161311 in its 24
May 2004 Resolution for failure of the petitioners to show that a reversible
error had been committed by the appellate court in the same case, CA-G.R.
SP No. 72480.
In Agoy v. Araneta Center, Inc., 46 this Court explained that "[w]hen the
Court does not find any reversible error in the decision of the CA and denies
the petition, there is no need for the Court to fully explain its denial, since it
already means that it agrees with and adopts the findings and conclusions of
the CA. The decision sought to be reviewed and set aside is correct." Hence,
the Court's Third Division adopted the findings and conclusions reached by
the Court of Appeals in CA-G.R. SP No. 72480 which dismissed petitioners
from the service. The finality of the denial of the petitions in G.R. Nos. 161159
and 161311 should be given greater weight than the denial of the petition in
G.R. No. 164998 on technicality. It can also be interpreted that, in effect, the
finality of the denial of the petitions in G.R. Nos. 161159 and 161311 also
removed the jurisdiction of the Court's First Division and bound it to the final
resolution in G.R. Nos. 161159 and 161311. The Court's First Division denied
MERALCO's petition for failure to prosecute only on 15 June 2005, long after
the denial of the petitions in G.R. Nos. 161159 and 161311 became final and
executory on 15 July 2004 and 2 September 2004, respectively.
WHEREFORE, we DENY the petition. We REMAND this case to the
National Labor Relations Commission for the execution of the 23 February
2004 and the 24 May 2004 Resolutions of this Court's Third Division in G.R.
Nos. 161159 and 161311 in accordance with this Decision.
 SO ORDERED.
|||  (Frondozo v. Manila Electric Co., G.R. No. 178379, [August 22, 2017])
ARTICLE 227

MANILA ELECTRIC COMPANY, Petitioner, 

vs.
JAN CARLO GALA, Respondent.
We resolve the petition for review on certiorari,1 seeking to annul the decision2 and
the resolution3 of the Court of Appeals (CA) .
FACTS:

Respondent Jan Carlo Gala commenced employment with the petitioner Meralco
Electric Company (Meralco) as a probationary lineman. He was assigned at Meralco’s
Valenzuela Sector. He initially served as member of the crew of Meralco’s Truck No.
1823 supervised by Foreman Narciso Matis. After one month, he joined the crew of
Truck No. 1837 under the supervision of Foreman Raymundo Zuñiga, Sr.
Barely four months on the job, Gala was dismissed for alleged complicity in
pilferages of Meralco’s electrical supplies, particularly, for the incident which took
place on May 25, 2006. On that day, Gala and other Meralco workers were instructed
to replace a worn-out electrical pole at the Pacheco Subdivision in Valenzuela City.
Gala and the other linemen were directed to join Truck No. 1891, under the
supervision of Foreman Nemecio Hipolito.
Despite Gala’s explanation, Meralco proceeded with the investigation and eventually
terminated his employment on July 27, 2006.4 Gala responded by filing an illegal
dismissal complaint against Meralco.5
The Compulsory Arbitration Rulings

Labor Arbiter Teresita D. Castillon-Lora dismissed the complaint for lack of merit.
She held that Gala’s participation in the pilferage of Meralco’s property rendered him
unqualified to become a regular employee.
Gala appealed to the National Labor Relations Commission (NLRC). In its decision of
May 2, 2008,7 the NLRC reversed the labor arbiter’s ruling. It found that Gala had
been illegally dismissed, since there was “no concrete showing of complicity with the
alleged misconduct/dishonesty[.]”8 The NLRC, however, ruled out Gala’s
reinstatement, stating that his tenure lasted only up to the end of his probationary
period. It awarded him backwages and attorney’s fees.
Both parties moved for partial reconsideration; Gala, on the ground that he should
have been reinstated with full backwages, damages and interests; and Meralco, on the
ground that the NLRC erred in finding that Gala had been illegally dismissed. The
NLRC denied the motions. Relying on the same grounds, Gala and Meralco elevated
the case to the CA through a petition for certiorari under Rule 65 of the Rules of
Court.
The CA Decision

The CA denied Meralco’s petition for lack of merit and partially granted Gala’s
petition. It concurred with the NLRC that Gala had been illegally dismissed, a ruling
that was supported by the evidence. It opined that nothing in the records show Gala’s
knowledge of or complicity in the pilferage. It found insufficient the joint
affidavit10 of the members of Meralco’s task force testifying that Gala and two other
linemen knew Llanes.
The CA modified the NLRC decision and ordered Gala’s reinstatement with full
backwages and other benefits. The CA also denied Meralco’s motion for
reconsideration. Hence, the present petition for review on certiorari.12

ISSUE:

Whether Gala’s reinstatement despite his probationary status is proper.

The Court’s Ruling

We find merit in the petition.

Contrary to the conclusions of the CA and the NLRC, there is substantial evidence
supporting Meralco’s position that Gala had become unfit to continue his employment
with the company. Gala was found, after an administrative investigation, to have
failed to meet the standards expected of him to become a regular employee and this
failure was mainly due to his “undeniable knowledge, if not participation, in the
pilferage activities done by their group, all to the prejudice of the Company’s
interests.”21
The evidence on record established Gala’s presence in the worksite where the
pilferage of company property happened.1âwphi1 It also established that it was not
only on May 25, 2006 that Llanes, the pilferer, had been seen during a Meralco
operation. He had been previously noticed by Meralco employees, including Gala
(based on his admission),23 in past operations. If Gala had seen Llanes in earlier
projects or operations of the company, it is incredulous for him to say that he did not
know why Llanes was there or what Zuñiga and Llanes were talking about. To our
mind, the Meralco crew (the foremen and the linemen) allowed or could have even
asked Llanes to be there during their operations for one and only purpose — to serve
as their conduit for pilfered company supplies to be sold to ready buyers outside
Meralco worksites.
We consider, too, and we find credible the company submission that the Meralco crew
who worked at the Pacheco Subdivision in Valenzuela City on May 25, 2006 had not
been returning unused supplies and materials, to the prejudice of the company. From
all these, the allegedly hearsay evidence that is not competent in judicial proceedings
(as noted above), takes on special meaning and relevance.
With respect to the video footage of the May 25, 2006 incident, Gala himself admitted
that he viewed the tape during the administrative investigation, particularly in
connection with the accusation against him that he allowed Llanes (binatilyong may
kapansanan sa bibig) to board the Meralco trucks.26 The choice of evidence belongs
to a party and the mere fact that the video was shown to Gala indicates that the video
was not an evidence that Meralco was trying to suppress. Gala could have, if he had
wanted to, served a subpoena for the production of the video footage as evidence. The
fact that he did not does not strengthen his case nor weaken the case of Meralco.
On the whole, the totality of the circumstances obtaining in the case convinces us that
Gala could not but have knowledge of the pilferage of company electrical supplies on
May 25, 2006; he was complicit in its commission, if not by direct participation,
certainly, by his inaction while it was being perpetrated and by not reporting the
incident to company authorities. Thus, we find substantial evidence to support the
conclusion that Gala does not deserve to remain in Meralco’s employ as a regular
employee. He violated his probationary employment agreement, especially the
requirement for him “to observe at all times the highest degree of transparency,
selflessness and integrity in the performance of their duties and
responsibilities[.]”27 He failed to qualify as a regular employee.28
For ignoring the evidence in this case, the NLRC committed grave abuse of discretion
and, in sustaining the NLRC, the CA committed a reversible error.
WHEREFORE, premises considered, the petition is GRANTED. The
assailed decision and resolution of the Court of Appeals are SET
ASIDE. The complaint is DISMISSED for lack of merit.

NATIONWIDE SECURITY AND ALLIED SERVICES,

INC., petitioner, vs. THE COURT OF APPEALS, NATIONAL
LABOR RELATIONS COMMISSION and JOSEPH DIMPAZ,
HIPOLITO LOPEZ, EDWARD ODATO, FELICISIMO PABON and
JOHNNY AGBAY, respondents.

RESOLUTION

QUISUMBING, J  : p
 This petition for certiorari seeks the reversal and setting aside of the
Decision 1 dated January 31, 2002 and the Resolution 2 dated September 12,
2002 of the Court of Appeals in CA-G.R. SP No. 65465. The
appellate court had affirmed the January 30, 2001 3 and April 20, 2001
Resolutions of the National Labor Relations Commission (NLRC).
The factual antecedents of this case are as follows.
Labor Arbiter Manuel M. Manansala found
petitioner Nationwide Security and Allied Services, Inc., a security agency, not
liable for illegal dismissal in NLRC NCR 00-01-00833-96 and 00-02-01129-96
involving eight security guards who were employees of the petitioner.
However, the Labor Arbiter directed the petitioner to pay the
aforementioned security guards P81,750.00 in separation pay, P8,700.00 in
unpaid salaries, P93,795.68 for underpayment and 10% attorney's fees based
on the total monetary award. 4
Dissatisfied with the decision, petitioner appealed to the NLRC which
dismissed its appeal for two reasons — first, for having been filed beyond the
reglementary period within which to perfect the appeal and second, for filing
an insufficient appeal bond. It disposed as follows:
WHEREFORE, in the light of the foregoing, it is hereby ordered
that:
1. the instant appeal be considered DISMISSED; and,
2. the Decision appealed from be deemed FINAL and
EXECUTORY.  aCIHcD

SO ORDERED. 5
Its motion for reconsideration having been denied, petitioner then
appealed to the Court of Appeals to have the appeal resolved on the merits
rather than on pure technicalities in the interest of due process.
The Court of Appeals dismissed the case, holding that in a special
action for certiorari, the burden is on petitioner to prove not merely reversible
error, but grave abuse of discretion amounting to lack of or
excess of jurisdiction on the part of public respondent NLRC. The dispositive
portion of its decision states:
WHEREFORE, in view of the foregoing, the petition is hereby
DISMISSED. The questioned Resolutions dated 30 January 2001 and
20 April 2001 of the National Labor Relations Commission are
accordingly AFFIRMED.
SO ORDERED. 6
The Court of Appeals likewise denied the petitioner's motion for
reconsideration. 7 Hence, this petition which raises the following issues:
 I.
WHETHER OR NOT TECHNICALITIES IN LABOR CASES
MUST PREVAIL OVER THE SPIRIT AND INTENTION OF THE
LABOR CODE UNDER ARTICLE 221 THEREOF WHICH STATES:
"In any proceeding before the Commission or any of the
Labor Arbiters, the rules of evidence prevailing in courts of Law or
equity shall not be controlling and it is the spirit and
[i]ntention of this Code that the Commission and its
members and Labor Arbiters shall use every and all
reasonable means to ascertain the facts in each case
speedily and objectively and without [regard] to
technicalities of law or procedure, all [i]n the interest of due
process." Emphasis added.
II.
WHETHER OR NOT THE DOCTRINE IN THE CASE OF STAR
ANGEL HANDICRAFT vs. NLRC, et al., 236 SCRA 580
AND ROSEWOOD PROCESSING, INC. VS. NLRC, G.R. [No.]
116476, May 21, 1998 FINDS APPLICATION IN THE INSTANT CASE
[;] 
TSacAE

III.
WHETHER OR NOT SEPARATION PAY IS JUSTIFIED AS
AWARD IN CASES WHERE THE EMPLOYEE IS TERMINATED DUE
TO CONTRACT EXPIRATION AS IN THE INSTANT CASE; AND
IV.
WHETHER OR NOT THE REQUIREMENT ON
CERTIFICATION AGAINST FORUM SHOPPING WHICH WAS
RAISED BEFORE THE NLRC IS ENFORCEABLE IN THE INSTANT
CASE. 8
Petitioner contends that the Court of Appeals erred when it dismissed
its case based on technicalities while the private respondents contend that the
appeal to the NLRC had not been perfected, since the appeal was filed
outside the reglementary period, and the bond was insufficient. 9  AECacT

After considering all the circumstances in this case and the submission
by the parties, we are in agreement that the petition lacks merit.
At the outset it must be pointed out here that the petition
for certiorari filed with the Court by petitioner under Rule 65 of the
Rules of Court is inappropriate. The proper remedy is a petition for review
under Rule 45 purely on questions of law. There being a remedy of appeal via
petition for review under Rule 45 of the Rules of Court available to the
petitioner, the filing of a petition for certiorari under Rule 65 is improper.
 But even if we bend our Rules to allow the present petition
for certiorari, still it will not prosper because we do not find any grave
abuse of discretion amounting to lack of or excess of jurisdiction on the
part of the Court of Appeals when it dismissed the
petition of the security agency. We must stress that under Rule 65, the
abuse of discretion must be so patent and gross as to amount to an
evasion of positive duty or to a virtual refusal to perform a duty enjoined by
law, or to act at all in contemplation of law, as where the power is exercised in
an arbitrary and despotic manner by reason of passion or personal
hostility. 10 No such abuse of discretion happened here. The assailed decision
by the Court of Appeals was certainly not capricious nor arbitrary, nor was it a
whimsical exercise of judgment amounting to a lack of jurisdiction. 11  TIEHDC

The Labor Code provides as follows:

ART. 223. Appeal. — Decisions, awards, or orders of the Labor
Arbiter are final and executory unless appealed to the Commission by
any or both parties within ten (10) calendar days from receipt of such
decisions, awards, or orders. Such appeal may be entertained only on
any of the following grounds:
(a) If there is prima facie evidence of abuse of discretion on the
part of the Labor Arbiter;
(b) If the decision, order or award was secured through fraud or
coercion, including graft and corruption;
(c) If made purely on questions of law, and
(d) If serious errors in the findings of facts are raised which
would cause grave or irreparable damage or injury to the appellant.
In case of a judgment involving a monetary award, an appeal by
the employer may be perfected only upon the posting of a cash or
surety bond issued by a reputable bonding company duly accredited
by the Commission in the amount equivalent to the monetary award in
the judgment appealed from.
xxx xxx xxx
The New Rules of Procedure of the NLRC states:
Section 1. Periods of appeal. — Decisions, resolutions or
orders of the Labor Arbiter shall be final and executory unless
appealed to the Commission by any or both parties within ten (10)
calendar days from receipt thereof; and in case of decisions,
resolutions or orders of the Regional Director of the
Department of Labor and Employment pursuant to Article 129 of the
Labor Code, within five (5) calendar days from receipt thereof. If the
10th or 5th day, as the case may be, falls on a Saturday, Sunday or
 holiday, the last day to perfect the appeal shall be the first working day
following such Saturday, Sunday or holiday.
No motion or request for extension of the period within which to
perfect an appeal shall be allowed.
In the instant case, both the NLRC and the Court of Appeals found that
petitioner received the decision of the Labor Arbiter on July 16, 1999. This
factual finding is supported by sufficient evidence, 12 and we take it as binding
on us. Petitioner then simultaneously filed its "Appeal Memorandum",
"Notice of Appeal" and "Motion to Reduce Bond", by registered mail on July
29, 1999, under Registry Receipt No. 003098. 13 These were received by the
NLRC on July 30, 1999. 14 The appeal to the NLRC should have been
perfected, as provided by its Rules, within a period of 10 days from receipt by
petitionerof the decision on July 16, 1999 . Clearly, the filing of the appeal —
three days after July 26, 1999 — was already beyond the reglementary period
and in violation of the NLRC Rules and the pertinent Article on Appeal in the
Labor Code.  CHDAEc

Failure to perfect an appeal renders the decision final and

executory. 15 The right to appeal is a statutory right and one who seeks to
avail of the right must comply with the statute or the rules. The rules,
particularly the requirements for perfecting an appeal within the reglementary
period specified in the law, must be strictly followed as they are considered
indispensable interdictions against needless delays and for the orderly
discharge of judicial business.16 It is only in highly meritorious cases that
this Court will opt not to strictly apply the rules and thus prevent a grave
injustice from being done. 17 The exception does not obtain here. Thus, we
are in agreement that the decision of the Labor Arbiter already became final
and executory because petitioner failed to file the appeal within 10 calendar
days from receipt of the decision.
Clearly, the NLRC committed no grave abuse of discretion in dismissing
the appeal before it. It follows that the Court of Appeals, too, did not err, nor
gravely abuse its discretion, in sustaining the NLRC Order, by dismissing the
petition for certiorari before it. Hence, with the primordial issue resolved, we
find no need to tarry on the other issues raised by petitioner.
WHEREFORE, the Decision dated January 31, 2002 and the
Resolution dated September 12, 2002 of the Court of Appeals in CA-G.R. SP
No. 65465 are AFFIRMED. Costs against petitioner.
SO ORDERED.
 (Nationwide Security and Allied Services, Inc. v. Court of Appeals, G.R. No.
|||

155844 (Resolution), [July 14, 2008], 580 PHIL 135-143)

DIAMOND TAXI and/or BRYAN ONG v. FELIPE LLAMAS, JR.
FACTS: Respondent Llamas, a taxi driver for petitioner Diamond Taxi (owned and operated by Petitioner
Bryan Ong), filed a complaint for illegal dismissal against petitioner before the Labor Arbiter. Denying the
charge against them, petitioners alleged that respondent has been absent without official leave for several days
from July 14, 2005 until August 1, 2005. They submitted a copy of the attendance logbook showing that
respondent has been absent on the said dates. They claimed that respondent has violated several traffic
regulations in the years of 2000-2005 and that they issued to him several memoranda for insubordination and
refusal to heed management instructions. They further claimed that the aforementioned acts constituted as
grounds for the termination of Llamas Employment.

Llamas failed to seasonably file his position paper. Hence, the Labor Arbiter dismissed respondent complaint
for lack of merit. Respondent filed his position paper and claimed that he failed to seasonably file his position
paper because his previous counsel, despite his repeated pleas, had continuously deferred compliance with the
LA orders for its submission. Hence, he was forced to secure the services of another counsel in order to
comply with the LA directive.

In his position paper, Llamas alleged that he had a misunderstanding with Aljuver Ong, Bryan brother and
operations manager of Diamond Taxi, on July 13, 2005. He reported for work on July 14, 2005 but Bryan
refused to give him the key to his assigned taxi cab unless he would sign a prepared resignation letter. He did
not sign the resignation letter. He reported for work again on July 15 and 16, 2005, but Bryan insisted that he
sign the resignation letter prior to the release of the key to his assigned taxi cab. Hence, the filing of the illegal
dismissal complaint.

Llamas filed before the LA a motion for reconsideration of its decision dismissing his complaint. The LA
treated Llamas Motion as an appeal. The NLRC dismissed for non-perfection Llamas Motion. It pointed out
that Llamas failed to attach the required certification of non-forum shopping per Section 4, Rule VI of the 2005
NLRC Rules. Llamas moved to reconsider NLRC resolution and attached the required certification of non-
forum shopping in his motion but the same was denied which impelled Llamas to file a petition for certiorari
before the CA.

The CA reversed and set aside the assailed NLRC resolution and ruled that the NLRC had acted with grave
abuse of discretion when it dismissed Llamas' appeal purely on a technicality. The CA ruled further that
petitioners failed to prove overt acts showing Llamas' clear intention to abandon his job. It was found,
however, that petitioners placed Llamas in a situation where he was forced to quit as his continued
employment has been rendered impossible, unreasonable or unlikely, i.e., making him sign a resignation letter
as a precondition for giving him the key to his assigned taxi cab. These acts amounted to constructive
dismissal. The CA additionally noted that Llamas immediately filed the illegal dismissal case that proved his
desire to return to work and negates the charge of abandonment.
ISSUES: [1] Whether or not the CA encroached on the NLRC exclusive jurisdiction to review the merits
of the LA decision?
[2] Whether or not the NLRC committed grave abuse of discretion in dismissing Llamas' appeal on
mere technicality?
[3] Whether or not Llamas abandoned his work?

HELD: The Court found no error in the course that the CA took in resolving Llamas' petition for certiorari.
The CA may resolve factual issues by express legal mandate and pursuant to its equity jurisdiction.

The CA, in labor cases elevated to it via petition for certiorari, can grant prerogative writs when it finds that
the NLRC acted with grave abuse of discretion in arriving at its factual conclusions. To make this finding, the
CA necessarily has to view the evidence if only to determine if the NLRC ruling had basis in evidence. It is in
the sense and manner that the CA, in a Rule 65 certiorari petition before it, had to determine whether grave
abuse of discretion on factual issues attended the NLRC dismissal of Llamas' appeal.
Dismissal of an appeal based on mere technicalities inconsistent to the constitutional mandate to protect
labor

The Court agreed with the CA in ruling that the NLRC committed grave abuse of discretion in dismissing
Llamas' appeal.

Article 227 of the Labor Code mandates that the Commission and its members and the Labor Arbiters shall use
every and all reasonable means to ascertain the facts in each case speedily and objectively and without regard
to technicalities of law or procedure, all in the interest of due process. A strict and rigid application, which
would result in technicalities that tend to frustrate rather than promote substantial justice, should not be
allowed.

The CA correctly regarded the respondent as constructively dismissed. Constructive dismissal exists when
there is cessation of work because continued employment is rendered impossible, unreasonable or unlikely.

Petitioners failed to establish the alleged abandonment of respondent. Mere absence of the employee does not
constitute abandonment. It was pointed out by the CA that Llamas filed the complaint two days from the third
time he was refused access to his assigned taxi cab. Respondent could not be deemed to have abandoned his
work.

Samarca v. Arc-Men Industries, Inc., 459 Phil. 506 laid down the elements of abandonment: 1) x x x the
employee must have failed to report for work or must have been absent without valid or justifiable reason; and
(2) x x x there must have been a clear intention [on the part of the employee] to sever the employer-employee
relationship manifested by some overt act. DENIED. 

SARA LEE PHILIPPINES v. EMILINDA D. MACATLANG, GR No. 180147, 2015-01-14

Facts:
In the Decision dated 4 June 2014, this Court directed SLPI, Aris, SLC, Cesar Cruz, and
FAPI, collectively known as the Corporations, to post P725 Million, in cash or surety bond,
within 10 days from the receipt of the Decision.
On 30 October 2004, the Labor Arbiter found the dismissal of 5,984 Aris employees illegal
and awarded them monetary benefits amounting to P3,453,664,710.86.
The Corporations filed a Notice of Appeal with Motion to Reduce Appeal Bond.  They
posted a P4.5 Million bond.  The NLRC granted the reduction of the appeal bond and
ordered the Corporations to post an additional P4.5 Million bond.
The 5,984 former Aris employees, represented by Emilinda Macatlang (Macatlang petition),
filed a petition for review before the Court of Appeals insisting that the appeal was not
perfected due to failure of the Corporations to post the correct amount of the bond which
is... equivalent to the judgment award.
The Court of Appeals, on 26 March 2007, ordered the Corporations to post an additional
appeal bond of P1 Billion.
In our Decision dated 4 June 2014, we modified the Court of Appeals' Decision
The Corporations are directed to post P725 Million, in cash or surety bond, within TEN (10)
days from the receipt of this DECISION.
Issues:
The Corporations score this Court for failing to consider the ruling in McBurnie v. Ganzon[4]
which purportedly required only the posting of a bond equivalent to 10% of the monetary
award.
Ruling:
The Corporations gravely misappreciated the ruling in McBurnie.  The 10% requirement
pertains to the reasonable amount which the NLRC would accept as the minimum of the
bond that should accompany the motion to reduce bond in order to suspend the period to
perfect an... appeal under the NLRC rules.  The 10% is based on the judgment award and
should in no case be construed as the minimum amount of bond to be posted in order to
perfect appeal.
McBurnie made it clear that the... percentage of bond set is provisional
The NLRC retains its authority and duty to resolve the motion and determine... the final
amount of bond that shall be posted by the appellant, still in accordance with the standards
of "meritorious grounds" and "reasonable amount." Should the NLRC, after considering the
motion's merit, determine that a greater amount or the full amount of the bond needs to... be
posted by the appellant, then the party shall comply accordingly. The appellant shall be
given a period of 10 days from notice of the NLRC order within which to perfect the appeal
by posting the required appeal bond.