Title
Cordova vs. Keysa's Boutique
Case
G.R. No. 156379
Decision Date
Sep 16, 2005
Former employees of Keysa's Boutique filed for illegal dismissal and unpaid wages; Supreme Court ruled in their favor, reinstating the labor arbiter's decision due to respondents' failure to post the required appeal bond.
Font Size:

Case Digest (G.R. No. 156379)

Facts:

    Background of Employment and Claims

    • Petitioners were former employees of Keysa’s Boutique, located at G. Flores Ave., Butuan City.
    • The employment records presented by petitioners detailed:
    • Employment start dates, job designations, working hours (8 a.m. to 7 p.m.), and monthly salaries.
    • Specific names and corresponding dates:
- Emma Cordova – started August 1, 1992; Salesgirl; P2,500/month. - Lerma Plazon – started July 1, 1996; Salesgirl; P1,200/month. - Teresita Torion – started August 1, 1996; Salesgirl; P1,200/month. - Joann Gamil – started November 6, 1995; Salesgirl; P1,200/month. - Ginaly Arnuza – started July 1, 1997; Salesgirl; P1,200/month. - Nene Janiola – started June 1, 1997; Salesgirl; P1,000/month.

    Sequence of Dismissals and Filing of Complaints

    • Dismissals occurred on distinct dates:
    • November 15, 1997 – Nene Janiola was dismissed.
    • November 25, 1997 – Ginaly Arnuza and Joann Gamil were dismissed.
    • November 28, 1997 – Emma Cordova, Lerma Plazon, and Teresita Torion were terminated.
    • Petitioners filed complaints before the Regional Arbitration Branch of the Department of Labor and Employment in Butuan City asserting:
    • Illegal dismissal.
    • Non-payment/underpayment of wages, overtime pay, 13th month pay, and service incentive leave pay.
    • That as regular employees, they were entitled to security of tenure and could be terminated only for just or authorized causes.

    Adjudicatory Proceedings and Bond Issues

    • Procedural history:
    • The Labor Arbiter, on April 14, 1998, ruled in favor of the petitioners, declaring their dismissal illegal and awarding a total monetary compensation of P384,352.15.
    • Respondents failed to submit their position paper and instead later appealed the Labor Arbiter’s decision.
    • Bond posting issues:
    • Respondents sought to reduce the appeal bond on the basis of financial distress.
- They submitted a bank certification from RCBC indicating a savings account balance of P23,008.19. - Dismissing the illegal dismissal claim for three of the petitioners while declaring the dismissal illegal for the remaining petitioners. - Awarding different monetary amounts as shown in the attached annex of the decision. - Petitioners contended that respondents failed to post the required appeal bond. - Respondents, appealing the Labor Arbiter’s monetary award, submitted a “Most Urgent Plea To Reduce Cash Bond” citing financial difficulties, and executed a Deed of Assignment to secure a P50,000 bond. - It accepted the reduction of the bond to P50,000. - It ruled that the Labor Arbiter’s April 14, 1998 decision did not become final due to respondents’ failure to post a proper appeal bond.

Issue:

    Compliance with Bond Requirements

    • Whether the submission of a bank certification by the respondents, in lieu of a cash or surety bond, satisfies the mandatory requirement under Art. 223 of the Labor Code for perfecting an appeal involving a monetary award.
    • Whether such certification is sufficient to ensure the payment of the adjudged award if the appeal fails.

    Finality and Jurisdictional Implications

    • Whether the failure of respondents to post the required cash or surety bond renders the April 14, 1998 decision of the Labor Arbiter final and executory.
    • Whether the NLRC and the Court of Appeals had jurisdiction to review or revise the Labor Arbiter’s decision in light of the bond posting deficiency.

    Adequacy and Purpose of the Supersedeas Bond

    • Whether the proper purpose of the appeal bond—to safeguard the payment of the monetary award—was undermined by the respondents’ submission of only a bank certification.
    • Whether the financial limitations of the respondents justify a deviation from the strict bond requirement.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

Analyze Cases Smarter, Faster
Jur is an AI-powered legal research tool in the Philippines with case digests and full jurisprudence. AI summaries highlight key points but might skip important details or context. Always check the full text for accuracy.