Case Digest (G.R. No. 194137)
Facts:
In Ambassador Hotel, Inc. v. Social Security System, G.R. No. 194137 decided on June 21, 2017, the SSS lodged a complaint in September 2001 with the Quezon City Prosecutor against Ambassador Hotel, Inc. (“the Hotel”) and its officers for non-remittance of SSS contributions and penalties from June 1999 to March 2001, aggregating ₱769,575.48. An Information was filed on January 28, 2004 in RTC Branch 218, Quezon City, charging Yolanda Chan, as President and Chairman of the Board, and Alvin Louie Rivera, as Treasurer, with violation of Section 22(a), in relation to Sections 22(d) and 28(e) of RA No. 1161, as amended by RA No. 8282. Only Yolanda was arrested, arraigned, and pleaded not guilty. At trial, Accounts Officer Maria Rezell C. De Ocampo testified that the Hotel’s last remittance was May 1999 and that, despite repeated assessments, billing letters, demand letters (both registered and personal), and visits, no settlement or post-dated checks were provided. She assessed unpaidCase Digest (G.R. No. 194137)
Facts:
- Complaint and Information
- In September 2001, SSS filed a complaint with the Quezon City City Prosecutor’s Office against Ambassador Hotel, Inc. and its officers for non-remittance of SSS contributions and penalties amounting to ₱769,575.48 covering June 1999 to March 2001.
- On January 28, 2004, an Information was filed in RTC Branch 218, Quezon City, charging Yolanda Chan (President) and Alvin Louie Rivera (Treasurer) with violation of Section 22(a), in relation to Section 22(d) and Section 28(e) of R.A. No. 1161, as amended by R.A. No. 8282.
- Prosecution’s Evidence
- Maria Rezell C. De Ocampo (SSS Accounts Officer) testified she:
- Discovered hotel delinquency after reviewing records (last payment May 1999).
- Prepared delinquency assessment and billing letter; issued final demand letter via registered mail and personal service.
- Noted unpaid contributions of ₱303,459.00 and penalties of ₱531,341.44 as of January 2, 2005.
- Simeon Nicolas Chan (former President) confirmed he served until April 1998, when Yolanda was elected but prevented from assuming office until April 10, 2001.
- Defense’s Evidence
- Yolanda Chan argued she was impeded from performing presidential duties from April 25, 1998 to April 10, 2001 by Simeon’s internal suit; thus, she bore no liability for delinquencies occurring during that period.
- Norman D. Cordon (COO) testified that despite attempts, hotel SSS records could not be located and that SSS failed to respond to requests, prompting the filing of the criminal case.
- Lower Court Decisions
- RTC (Dec. 20, 2005): Acquitted Yolanda for lack of evidence she performed presidential functions during delinquency period; nevertheless held Ambassador Hotel civilly liable for ₱584,804.00 in contributions plus 3% penalties.
- CA (July 29, 2010 Decision; Oct. 18, 2010 Resolution): Affirmed RTC in toto, ruling that criminal liability entails civil liability, deemed instituted with the criminal case, and that Ambassador Hotel received due process.
Issues:
- Whether the RTC acquired jurisdiction over the person of Ambassador Hotel, Inc.
- Whether Ambassador Hotel was deprived of due process when declared liable despite not being a formal party.
- Whether the lower courts’ decision holding Ambassador Hotel civilly liable for unpaid SSS contributions is valid.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)