Title
American Express Philippines Local Employees Association vs. Leogardo, Jr.
Case
G.R. No. 75906
Decision Date
May 18, 1993
Employees dismissed due to office closure accepted separation pay, signed quitclaims; SC ruled their reinstatement claim barred, affirmed termination clearance.
employee termination
sale
separation pay
A

Case Digest (G.R. No. 75906)

Facts:

  • Parties and Employment Background
    • Petitioners:
      • American Express Philippines Local Employees Association (AMEXPLEA)
      • Individual employees Ella Blanco and Elizabeth Zingalaoa
    • Respondents:
      • Public respondent – then Deputy Minister of Labor, Vicente Leogardo, Jr.
      • American Express International, Inc. (AMEXCO)
      • PCI Travel Corporation
    • Employment Details:
      • Petitioners were employed by AMEXCO and assigned to the Clark Air Force Base Tour Extension Office, Travel Division.
      • They worked under the terms and conditions prevailing at the time of their hiring, with specific benefits regarding separation pay.
  • Termination and Initial Notices
    • On May 12, 1981, petitioners received separate letters from Cresencio Datu, Personnel Manager of AMEXCO, notifying them of their termination due to the closure of the Tour Extension Office.
      • The letters advised that petitioners could collect their separation pay even before the clearance application was officially approved.
    • A week later, petitioners received their separation pay as indicated in the letters.
  • Filing of Applications and Complaints
    • On May 28, 1981, AMEXCO filed a clearance application with the Ministry of Labor and Employment (MOLE) to terminate the petitioners-employees.
    • On August 5, 1981, AMEXPLEA along with petitioners filed a complaint with the MOLE accusing AMEXCO and its Personnel Manager of:
      • Illegal dismissal
      • Unfair labor practice
    • Subsequent MOLE Action:
      • On July 28, 1982, Regional Director Severo M. Pucan issued an Order denying AMEXCO’s clearance application.
      • Instead, AMEXCO was found guilty of illegal dismissal and was directed to reinstate petitioners with full backwages and restoration of seniority rights.
  • Motions, Appeals, and Procedural Developments
    • AMEXCO’s Responses:
      • Filed a Motion for Extension of Time on August 18, 1982, to file a motion for reconsideration.
      • Subsequently, on August 25, 1982, submitted an Urgent Motion for Reconsideration.
    • Additional Motions:
      • On December 29, 1982, petitioners filed a Motion to Implead PCI Travel Corporation based on a Sales and Purchase Agreement, wherein PCI was set to become the owner and operator effective January 1, 1983.
      • On January 26, 1983, Director Pucan’s Order treated AMEXCO’s motion as an appeal while simultaneously directing the issuance of a writ of execution due to non-posting of a supersedeas bond.
      • A Writ of Execution was issued on March 26, 1984, though its immediate execution was delayed—presumably due to the change in ownership and pending motions.
      • On April 11, 1984, AMEXCO filed a Motion to Lift the Writ of Execution while posting the requisite supersedeas bond, which petitioners opposed on May 11, 1984.
    • Petitioners’ Subsequent Arguments:
      • They reiterated that AMEXCO’s failure to file its appeal or motion for reconsideration within ten (10) calendar days (or alternatively, within five (5) days per Policy Instructions No. 21) rendered the Order of July 28, 1982 final and executory.
      • They further argued that the late posting of the supersedeas bond (nearly two years later) should not forestall the finality of the dismissal order.
  • Jurisdictional and Procedural Disputes
    • Petitioners contended that the public respondent had no jurisdiction since the contested Order had become final and executory due to:
      • AMEXCO’s failure to file a motion for reconsideration or appeal within the prescribed ten (10) calendar days (as per Section 8, Rule XIV, Book V of the Implementing Rules before Batas Pambansa Blg. 130).
      • Failure to post a supersedeas bond in a timely manner pursuant to Policy Instructions No. 38, S. of 1978.
    • AMEXCO and its counsel countered these claims by:
      • Relying on the Vir-Jen Shipping decision, which provided that the appeal period is computed in calendar days and, under the circumstances, its filing was timely.
      • Asserting that the RJL Martinez ruling, promulgated in 1984, could not be anticipated in 1982.
    • Separate Issue on Impleader:
      • PCI contested being impleaded, arguing that it was denied due process.
      • Petitioners maintained that the NLRC’s earlier directive in a similar case bound PCI as the successor-in-interest of AMEXCO.
  • Final Order and Resolution
    • On August 12, 1986, the public respondent issued an Order:
      • Setting aside the Order of July 28, 1982.
      • Entering a new judgment that granted clearance to terminate petitioners.
      • Directing that petitioners be paid separation pay computed as one month’s salary for every year of service, less any amounts already received.
    • The controversy henceforth became the subject of the present petition challenging the public respondent’s jurisdiction and the procedures followed.

Issues:

  • Jurisdictional Authority and Timeliness
    • Whether the public respondent acquired jurisdiction over the case given that AMEXCO allegedly failed to file its motion for reconsideration or appeal within the prescribed ten (10) calendar days.
    • Whether the alternative requirement under Policy Instructions No. 21, which stipulates a five (5) day period for filing a motion for reconsideration, should have applied instead.
  • The Relevance of the Supersedeas Bond
    • Whether the posting of a supersedeas bond nearly two (2) years after the issuance of the writ of execution is relevant in determining the finality and executory nature of the Order of July 28, 1982.
  • Acceptance of Separation Pay
    • Whether petitioners’ acceptance of separation pay constitutes a bar to their claim for reinstatement despite an allegedly illegal dismissal.
  • Impleader of PCI Travel Corporation
    • Whether PCI Travel Corporation should be held liable as the successor-in-interest in view of the Sales and Purchase Agreement, particularly concerning the obligation to absorb petitioners as regular employees.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)
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