Case Digest (G.R. No. 159890)
Facts:
Abante v. Lamadrid Bearing & Parts Corp., G.R. No. 159890, May 28, 2004, First Division, Ynares‑Santiago, J., writing for the Court.Petitioner Empermaco B. Abante, Jr. was engaged by Lamadrid Bearing & Parts Corporation in June 1985 as a commission salesman allegedly covering Mindanao and paid a 3% commission; his monthly take averaged about P16,000 and later about P20,269.50. He also collected payments from customers. His duties sometimes included attending conferences in Manila; respondent president Jose Lamadrid directed assignments on occasion. In 1998 petitioner encountered five customers whose accounts aggregated P687,166.62 in purported bad debts. Lamadrid confronted petitioner and demanded that he issue personal checks to cover the shortfalls; petitioner issued personal checks on condition they not be deposited but offset against his commissions. He was later induced to sign a Promissory Note and a Deed of Real Estate Mortgage, documents he later claimed were procured by trickery. Respondents returned the undeposited checks to petitioner, with computations showing offsets against his commissions.
Petitioner discovered he was not enrolled in SSS and learned he lacked coverage when applying for a loan; when he confronted his employer, the company deposited several of the previously issued checks which were then dishonored for "Account Closed." On March 22, 2001 respondents demanded payment; petitioner offered to have his commissions (P33,412.39) applied to the indebtedness and promised to assign 100% of future commissions until payment was completed. He also threatened counterclaims for unfair labor practice and unpaid commissions allegedly representing P90,000,000 in sales over 16 years. Respondents circulated a notice to customers that they no longer recognized petitioner; respondents filed criminal charges under Batas Pambansa Blg. 22 in the City Prosecutor’s Office.
Petitioner filed a complaint for illegal dismissal with money claims before the NLRC Regional Arbitration Branch No. XI, Davao City. The Labor Arbiter found for petitioner and, in a decision dated November 29, 2001, awarded P1,336,729.62 for separation pay, partial back wages, unpaid commissions, refund of deductions, damages and attorneys’ fees. The NLRC, in a Resolution dated April 5, 2002 (Fifth Division, penned by Commissioner Leon G. Gonzaga, Jr.), reversed and dismissed the complaint for lack of cause of action. Petitioner appealed to the Court of Appeals which, in a Decision dated March 7, 2003 (Second Division, penned by Associate Justice Buenaventura J. Guerrero), denied petitioner's a...(Subscriber-Only)
Issues:
- Was there an employer‑employee relationship between Abante and Lamadrid Bearing & Parts Corporation such that petitioner could pursue a claim for illegal dismissal and related money claims?
- Does Article 280 of the Labor Code render petitioner a regular employee despite the disputed facts about the relationship?
- Did petitioner prove coercion or other wrongful conduct by respondents that would warrant setting aside the transactions (checks, promissor...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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