Title
Apodaca vs. National Labor Relations Commission
Case
G.R. No. 80039
Decision Date
Apr 18, 1989
Employee's unpaid wages cannot be offset against unpaid stock subscriptions; NLRC lacks jurisdiction over intra-corporate disputes, per Supreme Court ruling.

Case Digest (G.R. No. 154130)

Facts:

  • Background of the case
    • Petitioner, Ernesto M. Apodaca, was employed by respondent corporation, Intrans Phils., Inc.
    • On August 28, 1985, respondent Jose M. Mirasol persuaded petitioner to subscribe to 1,500 shares of the corporation at P100.00 per share, with a total subscription price of P150,000.00.
    • Petitioner made an initial payment of P37,500.00 for the subscribed shares.
    • On September 1, 1975, petitioner was appointed President and General Manager of the respondent corporation.
    • Petitioner resigned from his position on January 2, 1986.
  • Labor complaint and payments dispute
    • On December 19, 1986, petitioner filed a complaint with the National Labor Relations Commission (NLRC) against respondents for:
      • Non-payment of wages.
      • Non-payment of cost of living allowance.
      • Non-payment of balance of gasoline and representation expenses.
      • Non-payment of bonus compensation for 1986.
    • Private respondents admitted owing the amount of P17,060.07 but deducted this amount from the unpaid balance of petitioner’s stock subscription amounting to P95,439.93.
    • Petitioner objected to the set-off, claiming there was no call or notice for payment of the unpaid subscription fees and thus the obligation was not enforceable.
  • Decisions below
    • The labor arbiter ruled on April 28, 1987, in favor of petitioner, ordering payment of P17,060.07 for earned wages under Article 103 of the Labor Code, disallowing set-off against the subscription balance.
    • Upon appeal, the NLRC reversed the decision on September 18, 1987, holding:
      • A stockholder who fails to pay unpaid subscriptions upon call becomes a debtor of the corporation.
      • The set-off of the unpaid subscription obligation against wages was lawful and not contrary to law, morals, or public policy.
  • Petition for review
    • Petitioner filed a petition for review questioning the NLRC’s jurisdiction to resolve the dispute.
    • Petitioner further argued the unpaid subscription amount was not due and payable as no formal call or notice was made by the corporation.
    • Petitioner maintained the set-off was premature and without lawful basis.

Issues:

  • Does the NLRC have jurisdiction to resolve a claim involving non-payment of stock subscriptions of a corporation?
  • If the NLRC has jurisdiction, can an obligation arising from unpaid stock subscriptions be set off against an employee’s money claims such as wages?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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