Case Digest (G.R. No. 220978)
Facts:
In Century Properties, Inc. (“CPI”) vs. Edwin J. Babiano and Emma B. Concepcion (G.R. No. 220978, July 5, 2016), Babiano was engaged by CPI on October 2, 2002 as Director of Sales and promoted to Vice President for Sales on September 1, 2007, with a monthly salary of ₱70,000, an allowance of ₱50,000, and a 0.5% override commission. His written contract contained a Confidentiality of Documents and Non-Compete Clause expressly forfeiting “forms of compensation, including commissions and incentives” upon breach. Concepcion joined CPI as a Sales Agent, was successively promoted to Sales Director and Project Director (effective September 1, 2007), and entered into agency-styled agreements providing her a monthly subsidy, 0.5% commission, and cash incentives, with a disclaimer of employer-employee relationship. In February 2009, CPI charged Babiano with disloyalty, conflict of interest, and unauthorized recruitment of personnel to a competitor; he resigned on February 25, 2009 and admCase Digest (G.R. No. 220978)
Facts:
- Edwin J. Babiano
- Hired by Century Properties, Inc. (CPI) on October 2, 2002 as Director of Sales; promoted to Vice President for Sales effective September 1, 2007. Remuneration included a monthly salary of ₱70,000, an allowance of ₱50,000, and a 0.5% override commission. His employment contract contained a “Confidentiality of Documents and Non-Compete Clause” providing that breach of any term would result in forfeiture of commissions and incentives.
- In February 2009, CPI accused him of disloyalty (AWOL, disclosure of marketing strategies to a competitor, spreading false information, and recruiting CPI personnel). He tendered his resignation on February 25, 2009 and acknowledged acceptance as Vice President of competitor First Global while still employed by CPI. CPI served him a Notice of Termination on March 3, 2009 for just causes.
- Emma B. Concepcion
- Joined CPI as Sales Agent; promoted to Project Director on September 1, 2007 under a “Contract of Agency for Project Director.” She received a monthly “subsidy” of ₱60,000 (later ₱50,000), 0.5% commission, and cash incentives. Both her contracts expressly disclaimed an employer-employee relationship.
- Resigned effective immediately by letter dated February 23, 2009.
- Case Proceedings
- On August 8, 2011, respondents filed a complaint for unpaid commissions and damages before the NLRC (NLRC LAC No. 05-001615-12). CPI maintained Babiano was an agent and that his commissions were forfeited; it also challenged NLRC’s jurisdiction over Concepcion’s claim.
- The Labor Arbiter dismissed the complaint (March 19, 2012); NLRC reversed and ordered CPI to pay Babiano ₱685,211.76 and Concepcion ₱470,754.62 plus attorney’s fees (June 25, 2013). The Court of Appeals affirmed with increased awards (₱889,932.42 for Babiano; ₱591,953.05 for Concepcion) and 6% interest (April 8, 2015). CPI’s motion for reconsideration was denied (October 12, 2015).
Issues:
- Whether the Court of Appeals erred in denying CPI’s petition for certiorari and in holding CPI liable for respondents’ unpaid commissions.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)