GR No. 138051 - Sonza V Abscbn

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JOSE Y. SONZA, petitioner, vs.

ABS-CBN BROADCASTING CORPORATION, respondent.


G.R. No. 138051 | June 10, 2004

Facts:

ABS-CBN signed an agreement with Mel and Jay Management and Development Corp. on
May 1994, which asserts that the latter agrees to exclusively provide services of the petitioner, Jose
“Jay” Sonza, to the former for a monthly talent fee of P310,000 for the first year and P317,000 for
the second and third year of the agreement.

On April 1996, petitioner wrote a letter to ABS-CBN, stating his irrevocable resignation and
serving his notice of rescission of the said agreement, thus, waiving and renouncing his recovery of
the remaining amount of his due excluding the benefits. Days after, the petitioner, before DOLE,
filed a complaint against the respondent because they allegedly did not pay his salaries, service
incentive leave pay, 13th month pay, signing bonus, travel allowances and several amounts due
under the ESOP or Employee Stock Option Plan.

On July 1996, ABS-CBN filed a Motion to Dismiss on the ground that no employee-employer
relationship existed between the parties, however, still continued to remit petitioner’s monthly
talent fees and other payments through his bank account, Sonza counter filed an Opposition. Labor
Arbiter dismissed the complaint, Sonza appealed to NLRC, however, also affirmed the former
decision. Sonza, in despair, filed a civil action for certiorari to the Court of Appeals, in which CA
rendered a decision of dismissal to the case. Hence, this petition.

Issue/s:

WON an employee-employer relationship existed between the parties.


WON the NLRC has jurisdiction over the case.

Ruling/s:

None. There are requisites for the existence of an employee-employer relationship as


applied to case at bar: (a) selection and engagement of employees – Sonza, in this case, was
specifically chosen due to his unique skills and talent which is not possessed by other employees,
however, this is just a circumstantial evidence, not conclusive of the relationship; (b) payment of
wages – Sonza was paid all the talent fees and benefits because of the negotiations in the
agreement, if he was an employee, there’s no need to stipulate on the benefits such as SSS, Medicare
and more, because this is automatically incorporated in an employee-employer relationship; (c)
power of dismissal – Even if ABS-CBN suffered severe business losses, they could not retrench
Sonza because they remained obligated to pay the latter’s talent fees, this indicates and
independent contractual relationship between the two; (d) power of control – Sonza had a free
hand on what to say or discuss in his shows, had no requirement to comply with rules and standard
prescribed for the employees of ABS-CBN, hence, the corporation’s control was limited only to the
result of Sonza’s work.

Negative. Sonza’s claim that the recovery of allegedly unpaid dues under the ESOP is
anchored on an alleged breach of contract on ABS-CBN’s part can be resolved only to civil and not
labor law. In addition, this case call for an interpretation and implementation of the agreement, not
Labor Code provisions, hence, it is intrinsically a civil dispute cognizable by the regular courts.

Link for the full text of the case:

https://elibrary.judiciary.gov.ph/assets/dtSearch/dtSearch_system_files/dtisapi6.dll?
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