G.R. No. 201298 - Cosare vs. Broadcom Asia, Inc.

Raul C. Cosare (Cosare) was employed as a salesman by Dante Arevalo (Arevalo), initially in April 1993, involved in selling broadcast equipment.
In December 2000, Arevalo established Broadcom Asia, Inc. (Broadcom) continuing the broadcast equipment trade; Cosare was an incorporator holding 100 shares at par value.
In October 2001, Cosare was promoted to Assistant Vice President for Sales (AVP for Sales) and Head of Technical Coordination with a monthly basic salary of P18,000 and average commissions of P37,000.
In 2003, Alex F. Abiog was appointed Vice President for Sales, Cosare’s immediate superior.

On March 23, 2009, Cosare sent a confidential memo to Arevalo accusing Abiog of misconduct including absenteeism, diverting sales to competitors, illicit commissions, and complaints about Broadcom’s uncompetitive wages and delayed benefits.
Arevalo did not act on the accusations; instead, on March 25, 2009, Cosare was asked to resign in exchange for P300,000 financial assistance, which he refused.
On March 30, 2009, Arevalo issued a memo for Cosare charging serious misconduct and willful breach of trust, detailing failures such as inducing customers to buy competitor products, misusing a company vehicle, absence without proper reporting, and lack of sales activity for 12 months.
Cosare was given 48 hours to explain and was suspended from access to company files and assets immediately.
On March 31, 2009, Cosare was barred from work premises and denied retrieval of personal belongings; on April 1, 2009, he was totally barred from entry and advised to wait outside indefinitely. He reported this to local barangay officials.
Cosare attempted to deliver a memo denying the charges on April 2, 2009, which was refused; he served it via registered mail.
On April 3, 2009, he filed a complaint for constructive dismissal, illegal suspension, and monetary claims with the NLRC.

Respondents argued Cosare was not dismissed or suspended illegally but committed acts injurious to Broadcom such as failing to sell since 2007, unauthorized transactions, and abandonment of work starting April 1, 2009.
On April 14, 2009, a memorandum accused Cosare of absence without leave starting April 1.

Labor Arbiter (LA) Menese dismissed Cosare’s complaint on January 6, 2010, holding no dismissal was proven and that Cosare prematurely filed the complaint, not awaiting respondent’s action.
NLRC reversed the LA’s dismissal on August 24, 2010, finding the respondents guilty of illegal constructive dismissal; ordered backwages, separation pay, damages totaling P1,915,458.33, plus P100,000 exemplary damages; denied unpaid commissions claim for procedural deficiencies.
Respondents appealed to the Court of Appeals (CA), asserting: no just cause needed since it was constructive dismissal; Cosare resigned; no monetary liability; Arevalo not solidarily liable; and raised for the first time jurisdictional issue that the complaint was an intra-corporate dispute under RTC exclusivity.
CA ruled in favor of respondents on November 24, 2011, holding the case an intra-corporate controversy, thus under RTC jurisdiction, not LA’s; reversed NLRC decision and dismissed complaint for lack of jurisdiction.
CA denied Cosare’s motion for reconsideration on March 26, 2012.
Cosare filed the present petition for review on certiorari before the Supreme Court.

Whether the controversy is an intra-corporate dispute falling within the exclusive jurisdiction of the Regional Trial Court (RTC), or if it is a labor dispute under the jurisdiction of the Labor Arbiter (LA) and the NLRC.

Whether Cosare was constructively and illegally dismissed from employment by Broadcom and Arevalo.