Title
Buenaobra vs. Lim King Guan
Case
G.R. No. 150147
Decision Date
Jan 20, 2004
Supreme Court affirms separate corporate personalities while allowing one corporation an appeal in a labor violations case against two firms.
Font Size

Case Digest (G.R. No. 150147)

Facts:

  • Lydia Buenaobra and other petitioners filed a petition for review against Lim King Guan, Johnny Lim, and associates of Unix International Export Corporation (UNIX) and Fuji Zipper Manufacturing Corporation (FUJI).
  • The case originated from complaints filed in 1991 and 1992 by UNIX employees regarding unfair labor practices, illegal lockouts, and wage underpayment.
  • Labor Arbiter Jose S. de Vera ruled on February 23, 1993, ordering UNIX to pay the petitioners P5,821,838.40 in back wages and P1,484,912.00 in separation pay, among other awards.
  • This decision became final as neither party appealed.
  • Petitioners later claimed UNIX transferred its assets to FUJI, complicating the execution of the labor arbiter's decision.
  • On March 25, 1997, petitioners filed a new complaint against UNIX and FUJI, seeking joint and several liability for the monetary awards.
  • Labor Arbiter Felipe Pati ruled on May 31, 1998, in favor of the petitioners, piercing the corporate veil and ordering both corporations to pay P8,233,880.30 plus damages.
  • Respondents appealed and requested exemption from posting a bond, claiming they were not the employers of the petitioners.
  • The NLRC denied the request and ordered the bond to be posted, which was upheld by the Court of Appeals on May 29, 2001.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court denied the petition, affirming the decisions of the Court of Appeals and the NLRC.
  • The Court held that the NLRC did not commit g...(Unlock)

Ratio:

  • The Supreme Court stated that the bond requirement under Article 223 of the Labor Code is a procedural matter meant to achieve substantial justice.
  • The Court emphasized that while appeals m...continue reading

Jur is an AI-powered legal research platform in the Philippines for case digests, summaries, and jurisprudence. AI-generated content may contain inaccuracies; please verify independently.

© 2024 Jur.ph. All rights reserved.