G.R. No. 129566 - People vs. Navarro

On August 11, 1952, Compania Maritima and Allied Free Workers Union (AFWU) executed a one-month written contract (Exh. J) for arrastre and stevedoring services at Iligan City, renewable by agreement.
Paragraph 2 of Exh. J stipulated that compensation for both arrastre (hauling on wharf) and stevedoring (handling in ship’s holds) be paid by shippers and consignees, not by the company, as “practice in Iligan City.”

Upon expiration, the contract was verbally renewed. On July 23, 1954, AFWU sought exclusive bargaining‐unit recognition; Compania Maritima ignored it. On August 6, 1954, AFWU filed a certification petition and, on August 26, 1954, an unfair labor practice (ULP) charge in the Court of Industrial Relations (CIR).
On August 24, 1954, the company gave notice of contract termination effective August 31, 1954. On September 1, 1954, the company contracted Iligan Stevedoring Association; AFWU picketed the wharf for nine days.

On September 8, 1954, Compania Maritima sued in the Court of First Instance (CFI) for contract rescission, damages, and preliminary injunction. A writ was issued ex parte September 9, 1954, later lifted when AFWU filed counterbond.
The CFI rendered judgment (Dec. 5, 1960; amended Jan. 11, 1961):

Declared contract terminated Aug. 31, 1954.
Dismissed AFWU’s counterclaim.
Awarded P520,000 damages plus 6% interest from filing.
Permanently enjoined AFWU from arrastre and stevedoring for Compania Maritima at Iligan.
Required supersedeas bond P520,000 to stay execution.

AFWU appealed, CIR and Supreme Court issued conflicting injunctions and certiorari decisions. In 1966 (17 SCRA 513), SC held AFWU’s appeal meritorious. AFWU later filed restitution motion for lost earnings (P1,620,000).
Company filed motions to execute lower court judgment (P520,000) and compel injunction; SC dissolved and later set aside unauthorized municipal court injunction.
In 1967, lower court denied restitution, required P50,000 bond. AFWU appealed directly to SC.

Whether the CFI properly awarded P450,000–P520,000 actual damages, moral damages (P50,000), and attorney’s fees (P20,000) based on auditors’ reports and accountants’ estimates.
Whether the CFI erred in holding AFWU officers jointly liable for damages.
Whether AFWU’s counterclaims for stevedoring fees (P700,000 total) and damages were valid and should have been granted.
Whether the permanent injunction barring AFWU from performing arrastre and stevedoring work and the execution pending appeal complied with applicable labor‐law procedure (R.A. 875 §9(d)).