Title
Ferrazzini vs. Gsell
Case
G.R. No. 10712
Decision Date
Aug 10, 1916
Anselmo Ferrazzini was discharged by Carlos Gsell for alleged breaches of loyalty and obedience, including absences and undermining authority. The court ruled the discharge justified but invalidated a restrictive clause barring Ferrazzini from other employment as unreasonable and against public policy.

Case Digest (G.R. No. 135382)
Expanded Legal Reasoning Model

Facts:

  • Nature of the Contract
    • Anselmo Ferrazzini (“plaintiff”) was employed by Carlos Gsell (“defendant”) for an indefinite term at a fixed monthly salary to render skilled services exclusively in the defendant’s industrial enterprises in Manila.
    • The written contract required the master to provide six months’ written notice before discharge, and obliged the servant to devote full time, loyalty, discretion, and obedience to reasonable orders.
  • Circumstances Leading to Discharge
    • Defendant discharged plaintiff without six months’ notice, alleging just cause based on:
      • Plaintiff’s habit of leaving the factory during work hours to take alcoholic drinks, despite being ordered to stop.
      • Plaintiff’s remarks at a communal mess accusing the defendant of lacking confidence in his employees and disparaging a fellow foreman’s salary.
    • Plaintiff claimed informal permission to take brief drink breaks; defendant and factory manager Bender testified that such permission had been revoked and orders were repeatedly disobeyed.
  • Trial Court Proceedings and Counterclaim
    • Trial court found the discharge unjustified, awarded damages to plaintiff, and refused to consider defendant’s counterclaim.
    • Defendant had amended his answer at trial to allege plaintiff breached a post‐employment non‐compete clause by entering the service of another Philippine employer without written consent, seeking P10,000 liquidated damages. Trial court disregarded the counterclaim on procedural grounds.

Issues:

  • Was the plaintiff’s discharge justified under the express and implied terms of the employment contract?
  • Was the defendant’s counterclaim based on the post‐employment restraint clause properly received and enforceable?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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