G.R. No. 179469 - C.F. Sharp and Co. Inc. and John J. Rocha vs. Pioneer Insurance and Surety Corporation, et al.

Respondents Wilfredo C. Agustin and Hernando G. Minimo applied with C.F. Sharp Co. Inc. (C.F. Sharp) in August 1990 after responding to a newspaper advertisement for sandblasters and painters in Libya.
Upon passing the interview, they submitted mandatory documents including passports, seamanas book, NBI clearance, employment certificates, seminar certificates, and medical exam results.
A Contract of Employment was executed between respondents and C.F. Sharp.
They attended seminars, opened bank accounts with allotment slips, and underwent pre-departure orientation.
They were advised to prepare for immediate deployment and to regularly check for deployment scheduling.

After a month without deployment, respondents requested the return of their documents.
C.F. Sharp allegedly refused to release the documents unless respondents signed a quitclaim.
Respondents filed a complaint with the POEA on 21 January 1991.
On 30 October 1991, POEA found C.F. Sharp guilty of violating Article 34(k) of the Labor Code, suspending its license until documents were returned.
POEA declared it had no jurisdiction over monetary claims.

Respondents filed a breach of contract and damages complaint on 10 March 1995 before the RTC of Pasay City against C.F. Sharp and Pioneer Insurance, the surety.
Claim for breach based on false assurance of deployment and refusal to release documents denying employment opportunities and income.
Pioneer Insurance filed a cross-claim against C.F. Sharp and John J. Rocha (executive vice-president) based on an indemnity agreement.
RTC ruled in favor of respondents on 27 June 1996, declaring breach of contract, awarding compensatory damages, moral and exemplary damages, attorney's fees, litigation expenses, and costs.
RTC found a perfected contract and failure of performance by C.F. Sharp.

C.F. Sharp and Rocha argued RTC lacked jurisdiction under Executive Order No. 797 vesting POEA with jurisdiction on overseas employment contracts.
Court of Appeals held trial court had jurisdiction, rejecting petitioners’ estoppel claim.
Court found no perfected employment contract due to non-fulfillment of deployment condition; hence, no breach of contract.
Despite no contract perfection, found C.F. Sharp and Rocha liable for damages under Article 21 of the Civil Code for unlawful withholding of documents.
Reduced damages: temperate damages P100,000 each, moral damages increased to P100,000 each, exemplary damages and attorney's fees P50,000 each.
Limited Pioneer Insurance's liability to P150,000 per surety contract.

Rocha contested liability, arguing intention to release documents, no basis for moral damages, improper exemplary damages, and inappropriate temperate damages.
Pioneer Insurance's liability not assailed and thus final.
Rocha later claimed he should not be held liable personally as company is a separate personality and no participation in malice.
Petition found raising new defenses at the reply stage too late and unfair to respondents.
Supreme Court revisited legal issues including contract perfection, effects of non-deployment, and justification for damages.

Whether a local private employment agency may be held liable for breach of contract for failure to deploy a seafarer;
Whether the Contract of Employment between respondents and C.F. Sharp was perfected despite non-deployment;
Whether respondents are entitled to damages for withholding of their documents by C.F. Sharp;
Whether damages, including moral and exemplary, are properly awarded;
Whether John J. Rocha is personally liable for damages.