Title
Dumapis vs. Lepanto Consolidated Mining Co.
Case
G.R. No. 204060
Decision Date
Sep 15, 2020
Employees illegally dismissed sought recomputation of backwages and separation pay, including CBA salary increases until Supreme Court decision finality, with 12% interest.
A

Case Digest (G.R. No. 38773)

Facts:

  • Parties and context
    • Petitioners Moreno Dumapis, Francisco Liagao and Elmo Tundagui were lead miners, muckers and LHD operators employed by Lepanto Consolidated Mining Company.
    • They were accused of “highgrading” (washing and segregating ore) based on the affidavits of supervisors Pablo Damoslog and Pablo Daguio.
  • Labor tribunal and NLRC proceedings
    • Labor Arbiter Monroe C. Tabingan, in NLRC Case No. RAB-CAR-11-0607-00, dismissed their illegal dismissal complaint on August 21, 2001 for lack of merit.
    • On August 30, 2002, the NLRC reversed dismissal insofar as Dumapis, Liagao and Tundagui were concerned, declaring their dismissal illegal and awarding backwages (P480,182.63) and separation pay (P417,230.32); it affirmed dismissal of the nine other complainants.
  • Court of Appeals and Supreme Court decisions
    • On November 7, 2003, the Court of Appeals in CA-G.R. SP No. 75860 affirmed the NLRC decision, holding that petitioners’ dismissal was illegal and that they were entitled to separation pay and full backwages.
    • This Court, in G.R. No. 163210, affirmed the CA decision on August 13, 2008; the decision became final and executory on November 25, 2008.
  • Execution and recomputation disputes
    • Labor Arbiter issued a writ of execution for P897,412.95 covering petitioners’ backwages and separation pay.
    • Petitioners sought recomputation to include CBA-mandated salary increases, which the Arbiter granted (P2.6 M) then modified (P1.3 M).
    • Lepanto appealed to the NLRC, which ordered computation up to SC finality (including CBA increases, less P75,000 deposit).
    • On Rule 65, the Court of Appeals nullified the NLRC order and reinstated the original NLRC decision and writ of execution, provoking the present petition.

Issues:

  • Computation period
    • Should backwages and separation pay accrue only until the NLRC decision (August 30, 2002) or until the SC decision became final (November 25, 2008)?
  • Components of award
    • Are salary increases under the Collective Bargaining Agreement and other guaranteed benefits to be included in the computation?
    • Are performance- or merit-based (contingent) increases to be excluded?
  • Interest and offsets
    • What legal interest rate applies and from what date?
    • How should the P75,000 deposit be credited against the final award?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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