Title
Cirineo Bowling Plaza, Inc. vs. Sensing
Case
G.R. No. 146572
Decision Date
Jan 14, 2005
A DOLE inspection revealed labor violations by Cirineo Bowling Plaza, Inc., leading to a P377,500.58 compliance order. Petitioner’s procedural lapses and failure to timely contest findings resulted in Supreme Court dismissal, affirming DOLE’s jurisdiction and liability.

Case Digest (G.R. No. 170352)
Expanded Legal Reasoning Model

Facts:

  • Filing of the Complaint and Initial Inspection
    • On November 27, 1995, Eligio Paolo, Jr., an employee of Cirineo Bowling Plaza, Inc., filed a letter complaint with the Department of Labor and Employment (DOLE) at the Dagupan District Office.
    • The complaint alleged various labor law violations including:
      • Underpayment of wages
      • Non-payment of 13th month pay
      • Non-payment of rest day pay
      • Non-payment of overtime and holiday pay
      • Non-payment of service incentive leave pay
    • Pursuant to the visitorial and enforcement powers under Article 128 of the Labor Code, DOLE’s authorized representative, Labor and Employment Officer III Crisanto Rey Dingle, conducted an inspection of the petitioner’s establishment on November 28, 1995.
  • Findings of the Inspection and Subsequent Hearings
    • The inspection report revealed that:
      • The establishment employed thirteen workers.
      • Violations included underpayment of the minimum wage, non-payment and underpayment of 13th month pay, holiday premiums, overtime premiums, and rest day pay.
    • The findings were explained to petitioner's officer-in-charge, Ma. Fe Boquiren, who signed the report.
    • Multiple hearings were scheduled:
      • The initial hearing on December 27, 1995 was reset due to petitioner’s non-appearance.
      • A rescheduled hearing on January 10, 1996 was followed by an appearance of representative Boquiren, who explained that President/General Manager Luisito Cirineo was hospitalized.
      • During the January 19, 1996 hearing, Cirineo appeared and requested additional time to settle with the affected employees, but later missed the January 26, 1996 hearing.
  • Issuance of the DOLE Order and Payment Mandate
    • On April 22, 1996, the DOLE Regional Office issued an Order directing petitioner to:
      • Pay a total of P377,500.58 to thirteen employees, broken down individually (e.g., Gerry Sensing, Belen Fernandez, and others).
      • Adjust the salaries of its employees to comply with the applicable daily minimum wage rates.
    • The order required submission of proof of payment within ten days, failing which a writ of execution would be issued.
  • Developments on Quitclaims, Disputes, and Requests for Reassignment
    • On May 27, 1996, petitioner's representative, Carmen Zapata, submitted quitclaims, waivers, and releases for several employees.
    • Some employees later denied receipt of any payment, prompting DOLE inspector Dingle to verify the authenticity of the quitclaims.
    • On June 19, 1996, petitioner’s representatives (Luisito Cirineo and Fe Cirineo Octaviano) sent a letter to DOLE requesting the endorsement of the case to the National Labor Relations Commission (NLRC) and sought to distinguish their business from Esperanza Seafoods Kitchenette.
    • On September 12, 1996, DOLE issued another Order denying the referral to the NLRC, clarifying that:
      • Petitioner's representative had never effectively raised the issue of separate juridical personalities.
      • The order for payment of monetary claims to the remaining eleven employees was sustained.
  • Execution and Petitioner’s Motions
    • A writ of execution was issued on October 21, 1996, reinforcing the enforcement of the DOLE Order.
    • On November 13, 1996, petitioner filed a motion to quash the writ of execution on several grounds including:
      • Alleged wrongful inclusion of employees not actually employed by Cirineo Bowling Plaza, Inc.
      • Improper inclusion of claims for employees of Fe Esperanza C. Octaviano and those from establishments with less than ten employees.
      • The claim that the award exceeded the jurisdictional limit of P5,000.00, hence should be handled by the Labor Arbiter.
      • An argument that the Order was issued beyond the quasi-judicial authority of the Regional Director.
    • The motion was denied in an Order dated February 7, 1997, and subsequent appeal efforts were dismissed:
      • A Memorandum of Appeal to the Secretary of Labor and Employment was dismissed on timeliness grounds.
      • A motion for reconsideration was later filed and granted, but then dismissed on March 30, 1999, by DOLE Undersecretary Jose Espaňol.
  • The Petition for Certiorari and its Procedural Deficiencies
    • Petitioner elevated the case by filing a petition for certiorari with the Court of Appeals (CA) challenging:
      • The dismissal of its petition for certiorari and its motion for reconsideration on "mere technicalities."
      • The absence of attached required documents (the DOLE letter complaint and the DOLE Regional Director’s Order).
      • The failure to state the material dates when the relevant orders/resolutions were received, as mandated by the Rules of Civil Procedure (Rule 65 and Rule 46).
    • The CA dismissed the petition for failure to include these required details, a decision which was not altered upon a motion for reconsideration on November 10, 2000.
  • Allegations on Jurisdiction and the Separation of Business Entities
    • Petitioner argued that:
      • The monetary awards should not be enforced due to alleged misclassification of employees and improper claims for benefits of employees from a non-impleaded entity (Esperanza Seafoods Kitchenette).
      • The individual claims, particularly those exceeding P5,000.00, fell under the exclusive jurisdiction of the Labor Arbiter rather than the DOLE under Article 128.
    • The Supreme Court, however, noted that:
      • Petitioner's failure to raise substantive evidence about the distinct juridical personalities during the investigation undermined this claim.
      • The powers conferred by Article 128, as amended by R.A. 7730, allow DOLE to issue compliance orders irrespective of the supposed monetary limitations.
  • Final Judicial Determination
    • Petitioner’s petition for certiorari was ultimately dismissed by the Supreme Court.
    • The dismissal was based on:
      • The petitioner’s failure to comply with the mandatory procedural requirements, specifically the omission of critical material dates.
      • The Court’s affirmation of the DOLE Regional Director’s jurisdiction and actions under Article 128, as further empowered by R.A. 7730.

Issues:

  • Whether the CA committed grave abuse of discretion in dismissing petitioner’s petition for certiorari and motion for reconsideration based solely on technical deficiencies in the filing documents.
  • Whether the DOLE Regional Director exceeded his quasi-judicial jurisdiction by issuing a compliance order for monetary awards that allegedly exceeded the jurisdictional amount of P5,000.00 as set under Articles 129 and 217 of the Labor Code.
  • Whether petitioner's claim regarding the separate juridical personalities of Cirineo Bowling Plaza, Inc. and Esperanza Seafoods Kitchenette should have precluded the enforcement of the DOLE Order.
  • Whether the failure to include the material dates of receipt for DOLE’s resolutions, as required by Rule 65 and Rule 46 of the 1997 Rules of Civil Procedure, justifiably warranted the dismissal of the petition.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)
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