Title
Baliwag Transit, Inc. vs. Court of Appeals
Case
G.R. No. L-57493
Decision Date
Jan 7, 1987
Two bus lines, Baliwag Transit and BTI, operated separately under distinct franchises. Roman Martinez claimed BTI owed his SSS contributions, but the Supreme Court ruled Martinez was employed by Baliwag Transit, not BTI, and his claim was time-barred after 17 years.
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Case Digest (G.R. No. L-57493)

Facts:

Background of the Case

  • The case involves two passenger bus lines operating under the names "Baliwag Transit" and "Baliwag Transit, Inc." (BTI).
  • "Baliwag Transit" was owned by the late Pascual Tuazon, who operated it until his death on January 26, 1972.
  • "Baliwag Transit, Inc." (BTI), the petitioner, was incorporated in 1968 and is still in operation.
  • Both bus lines operated under separate franchises granted by the Public Service Commission but were issued a single ID Number (03-22151) by the Social Security System (SSS).

Private Respondent's Claim

  • Roman Martinez, the private respondent, claimed to be an employee of both bus lines under the same SSS ID Number.
  • He filed a petition with the Social Security Commission (SSC) on August 14, 1975, seeking to compel BTI to remit his SSS premium contributions for the periods 1958 to May 1963 and 1967 to March 1971.
  • Martinez alleged that he was employed by BTI from 1947 to 1971 as a conductor and later as an inspector, with salary increases. He claimed that BTI deducted SSS contributions from his salary but only remitted contributions for June 1963 to 1966.

BTI's Defense

  • BTI denied employing Martinez, asserting that he was employed by Pascual Tuazon, who operated "Baliwag Transit."
  • BTI argued that the two bus lines were separate entities with different offices, maintenance shops, garages, books of account, and managers.
  • BTI claimed that Martinez’s employment ended in 1971 when Tuazon became bankrupt.
  • BTI also argued that Martinez waited 17 years to file his claim, by which time Tuazon had already passed away.

Social Security Commission's Decision

  • The SSC dismissed Martinez’s petition, finding no employer-employee relationship between Martinez and BTI.

Court of Appeals' Decision

  • The Court of Appeals reversed the SSC’s decision, ruling that Tuazon operated his buses under the "Kabit System" and ordered BTI to remit Martinez’s SSS contributions plus penalties.

Supreme Court Petition

  • BTI filed a petition for review with the Supreme Court, challenging the Court of Appeals' decision.

Issue:

  1. Whether the Court of Appeals erred in finding that Pascual Tuazon operated his buses under the "Kabit System."
  2. Whether BTI, as the holder of the certificate of public convenience, is liable for the SSS contributions of Martinez, who was allegedly employed by Tuazon.
  3. Whether Martinez’s claim had already prescribed due to the lapse of 17 years before filing his petition.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Conclusion:

The Supreme Court ruled in favor of Baliwag Transit, Inc., holding that it was not liable for the SSS contributions of Roman Martinez. The Court emphasized that the employer-employee relationship existed between Martinez and Tuazon, and Martinez’s claim had prescribed due to the lapse of time.


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