7/24/2019 Rubberworld [Phils.], Inc., And Julie Yao Ong vs. National Labor Relations Commission (2000)

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[G.R. No. 128003. July 26, 2000]

RUBBERWORLD [PHILS.], INC., !" JULIE #$O ONG,petitioner, vs.

N$%ION$L L$BOR REL$%IONS CO&&ISSION, $'UINO &$GS$LIN,

PEDRO &$IBO, RIC$RDO BORJ$, $LICI$ &. S$N PEDRO $ND

(ELO&EN$ B. %OLIN, respondents.

D E C I S I O N

P$RDO, J.)

What is before the Court for resolution is a petition to annul the resolution of the

National Labor Relations Commission (NLRC), affirming the labor-arbiter's award

but deleting the moral and exemplary damages

!he fa"ts are as follows#

$etitioner Rubberworld ($hils), %n" &hereinafter Rubberworld, a "orporation

established in *+, was engaged in manufa"turing footwear, bags and

garments

uilino .agsalin, $edro .anibo, Ri"ardo /or0a, /en0amin Camitan, li"ia .

1an $edro, and 2elomena !olin were employed as dispat"her, warehouseman,

issue monitor, foreman, 0a"3s "ementer and outer sole atta"her, respe"ti4ely

5n ugust 6*, 7, Rubberworld filed with the 8epartment of Labor and

9mployment a noti"e of temporary shutdown of operations to ta3e effe"t on

1eptember 6*, 7 /efore the effe"ti4ity date, howe4er, Rubberworld was

for"ed to prematurely shutdown its operations

5n No4ember , 7, pri4ate respondents filed with the National Labor

Relations Commission a "omplaint against petitioner for illegal dismissal and

non-payment of separation pay

5n No4ember 66, 7, Rubberworld filed with the 1e"urities and 9x"hange

Commission (19C) a petition for de"laration of suspension of payments with a

proposed rehabilitation plan

5n 8e"ember 6:, 7, 19C issued the following order#

;""ordingly, with the "reation of the .anagement Committee, all a"tions

for "laims against Rubberworld $hilippines, %n" pending before any "ourt,

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tribunal, offi"e, board, body, Commission or sheriff are hereby deemed

1"omplainants their separation pay eui4alent to one () month pay for

e4ery year of ser4i"e

Considering the mali"ious a"t of "losing the business pre"ipitately without

due regard to the rights of "omplainants, moral damages and exemplary

damage in the sum of $ +>,>>>>> and $ A>,>>>>> respe"ti4ely is hereby

awarded for ea"h of the "omplainants

2inally > B of all sums owing to "omplainants is hereby ad0udged asattorney's fees

15 5R89R98;

5n 2ebruary +, *, petitioners appealed to the National Labor Relations

Commission (NLRC) alleging abuse of dis"retion and serious errors in the

findings of fa"ts of the labor arbiter

5n ugust A>, *, NLRC issued a resolution, the dispositi4e portion of whi"h

reads#

;$R9.%191 C5N1%89R98, the de"ision appealed from is hereby,

22%R.98 with .58%2%C!%5N in that the award of moral and

exemplary damages is hereby, 89L9!98

15 5R89R98;

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5n No4ember 6>, *, NLRC denied petitioners' motion for re"onsideration

@en"e, this petition

!he issue is whether or not the 8epartment of Labor and 9mployment, the Labor

rbiter and the National Labor Relations Commission may legally a"t on the"laims of respondents despite the order of the 1e"urities and 9x"hange

Commission suspending all a"tions against a "ompany under rehabilitation by a

management "ommittee "reated by the 1e"urities and 9x"hange Commission

$residential 8e"ree No >6- is "lear that ;all a"tions for "laims against

"orporations, partnerships or asso"iations under management or re"ei4ership

pending before any "ourt, tribunal, board or body shall be suspended

a""ordingly; !he law did not ma3e any ex"eption in fa4or of labor "laims

;!he 0ustifi"ation for the automati" stay of all pending a"tions for "laims is to

enable the management "ommittee or the rehabilitation re"ei4er to effe"ti4ely

exer"ise itshis powers free from any 0udi"ial or extra 0udi"ial interferen"e that

might unduly hinder or pre4ent the 'res"ue' of the debtor "ompany !o allow su"h

other a"tions to "ontinue would only add to the burden of the management

"ommittee or rehabilitation re"ei4er, whose time, effort and resour"es would be

wasted in defending "laims against the "orporation instead of being dire"ted

toward its restru"turing and rehabilitation;

!hus, the labor "ase would defeat the purpose of an automati" stay !o rule

otherwise would open the floodgates to numerous "laims and would defeat the

res"ue efforts of the management "ommittee

/esides, e4en if an award is gi4en to pri4ate respondents, the ruling "ould not be

enfor"ed as long as petitioner is under management "ommittee

!his finds ratio"ination in that the power to hear and de"ide labor disputes is

deemed suspended when the 1e"urities and 9x"hange Commission puts the

"orporation under rehabilitation

!hus, when NLRC pro"eeded to de"ide the "ase despite the 19C suspension

order, the NLRC a"ted without or in ex"ess of its 0urisdi"tion to hear and de"ide

"ases s a "onseuen"e, any resolution, de"ision or order that it rendered or

issued without 0urisdi"tion is a nullity

WHERE(ORE, the petition is hereby ?RN!98 !he de"ision of the labor

arbiter dated 8e"ember >, + and the NLRC resolution dated ugust A>,

*, are 19! 1%89

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No "osts

SO ORDERED.

Davide, Jr., C.J., (Chairman), Puno, Kapunan, and Ynares-Santiago, JJ., "on"ur