G.R. No. 164772 - Equitable Banking Corp. vs Sadac

Equitable Banking Corporation (now known as Equitable-PCI Bank) — petitioner bank and employer.
Ricardo Sadac — respondent; appointed Vice President of the Legal Department effective 1 August 1981 and General Counsel on 8 December 1981.

On 26 June 1989, nine lawyers of petitioner’s Legal Department sent a letter-petition accusing respondent Sadac of abusive conduct and petitioning for change in leadership.
Petitioner instructed respondent to deliver all case materials on ground of lack of confidence; respondent requested a full hearing and formal investigation which was not accorded.
Respondent filed a complaint for illegal dismissal with damages on 9 November 1989.
Petitioner terminated respondent’s services and, on 10 August 1989, removed him from office and disentitled him to compensation and benefits.

Labor Arbiter Jovencio Ll. Mayor, Jr. dismissed the complaint for lack of merit in a Decision dated 2 October 1990.
The NLRC reversed in a Resolution promulgated 24 September 1991, declaring the dismissal illegal and ordering reinstatement or separation pay, plus backwages, moral damages of P100,000, exemplary damages of P50,000, and attorney’s fees equal to ten percent of the monetary award.

Petitioner filed a Special Civil Action for Certiorari (G.R. No. 102467) assailing the NLRC Resolution.
The Supreme Court in a Decision dated 13 June 1997 held respondent’s dismissal illegal, affirmed the NLRC Resolution with modifications: backwages until age sixty (1995) then retirement benefits, additional P5,000, deletion of moral and exemplary damages, and made liability chargeable to petitioner bank alone.
The 13 June 1997 Decision became final and executory on 28 July 1997.

Respondent filed a Motion for Execution; respondent computed total monetary award at P6,030,456.59 inclusive of general salary increases, check-up benefit, clothing allowance, and cash conversion of vacation leaves.
Petitioner computed monetary award at P2,981,442.98, excluding general increases and the other claimed benefits.

Labor Arbiter rendered an Order on 2 August 1999 adopting respondent’s computation and awarded P6,030,456.59 plus 12% interest per annum (P1,367,590.89 as of 30 June 1999), totaling P7,398,047.48.
Considering an earlier writ of execution payment of P1,055,740.48, the Labor Arbiter directed payment of P6,342,307.00; awarded attorney’s fees equal to ten percent of monetary awards and imposed 12% interest from finality until satisfaction.

NLRC, in a Resolution promulgated 28 March 2001, reversed the Labor Arbiter and ordered petitioner’s computation of P2,981,442.98; NLRC disallowed general increases and certain benefits for lack of proof and deleted attorney’s fees.
NLRC denied respondent’s Motion for Reconsideration on 24 September 2002.
Respondent filed before the Court of Appeals a Petition for Certiorari challenging the NLRC Resolutions and seeking revival of the Labor Arbiter’s 2 August 1999 Order.

Whether periodic general salary increases, check-up benefit, clothing allowance, and cash conversion of vacation leave are included in the computation of full backwages for illegally dismissed employees.
Whether respondent is entitled to attorney’s fees.
Whether respondent is entitled to twelve percent per annum interest on all outstanding amounts from the date the prior Supreme Court Decision became final.