Title
Supreme Court
Bernarte vs. Philippine Basketball Association
Case
G.R. No. 192084
Decision Date
Sep 14, 2011
Referees Bernarte and Guevarra claimed illegal dismissal by PBA; Supreme Court ruled them independent contractors, upholding non-renewal of contracts as lawful.

Case Digest (G.R. No. 192084)
Expanded Legal Reasoning Model

Facts:

  • Engagement and Contracts of Referees
    • Jose Mel Bernarte
      • Invited to join PBA as referee under Commissioner Bernardino on year-to-year contracts.
      • First conference (Feb–Jun 2003) worked without contract; second conference (Jul 1–Aug 5, 2003) signed a 1½-month retainer.
      • On Jan 15, 2004 received letter of non-renewal citing unsatisfactory performance; alleged actual cause was refusal to fix a game.
    • Renato Guevarra
      • Invited Feb 2001; signed trainee contract Mar 1, 2001; from 2002 onward yearly contract as Regular Class C referee.
      • May 6, 2003 received memorandum of dissatisfaction; from Feb 2004 no further contract offered.
    • Respondents’ Position
      • PBA entered into two fixed-term retainer contracts in 2003 (Jan–Jul and Sep–Dec).
      • Non-renewal at end of contract periods, exercise of prerogative to hire fixed-term contractors.
  • Proceedings Below
    • Labor Arbiter (Mar 31, 2005)
      • Held Bernarte and Guevarra were employees illegally dismissed.
      • Ordered reinstatement, backwages, moral/exemplary damages, attorney’s fees.
    • National Labor Relations Commission (Jan 28, 2008)
      • Affirmed Labor Arbiter’s decision; dismissed PBA’s appeal.
    • Court of Appeals (Dec 17, 2009 Decision; Apr 5, 2010 Resolution)
      • Granted PBA’s petition for certiorari; annulled NLRC and Labor Arbiter rulings.
      • Held referees were independent contractors; dismissed complaint.

Issues:

  • Procedural Issue
    • Whether the Labor Arbiter’s Decision became final and executory by constructive service via unclaimed registered mail.
  • Substantive Issue
    • Whether Jose Mel Bernarte was an employee of the PBA or an independent contractor, and consequently, whether his non-renewal constituted illegal dismissal.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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