Title
Finman General Assurance Corp. vs. Salik
Case
G.R. No. 84084
Decision Date
Aug 20, 1990
Recruitment agency Pan Pacific and bonding firm Finman held jointly liable for failing to employ applicants despite collecting fees, affirmed by SC.
Font Size:

Case Digest (G.R. No. 84084)

Facts:

  1. Application for Employment: Abdulgani Salik et al. (private respondents) applied with Pan Pacific Overseas Recruiting Services, Inc. on April 22, 1987, and were assured employment abroad by Mrs. Normita Egil. They paid fees totaling P30,000.00.
  2. Failure to Employ: Despite assurances by Celia Arandia and Mrs. Egil, the private respondents were not employed.
  3. Complaint Filed: They filed a joint complaint with the Philippine Overseas Employment Administration (POEA) against Pan Pacific for violations of Articles 32 and 34(a) of the Labor Code, seeking a refund of P30,000.00.
  4. Summons and Hearing: POEA impleaded Finman General Assurance Corporation (petitioner), Pan Pacific's bonding company. Both Pan Pacific and Finman failed to answer summons and appear at the hearing, leading to ex-parte proceedings.
  5. Testimonies: Private respondents testified that they paid P20,000.00 through Hadji Usop Kabagani, with a receipt signed by Engineer Arandia and countersigned by Mrs. Egil and Imelda. They also paid P10,000.00 to Engr. Arandia, who did not issue a receipt.
  6. Finman's Defense: Finman, in an untimely filed answer, argued that private respondents had no valid cause of action against it, that it was not privy to Pan Pacific's transactions, and that the claims were barred by the statute of frauds and a waiver.
  7. POEA Order: On March 18, 1988, the Secretary of Labor and Employment ordered both Pan Pacific and Finman to pay jointly and severally the claims of the private respondents, totaling P25,000.00, and cancelled Pan Pacific's license.
  8. Motion for Reconsideration: Finman's motion for reconsideration was denied, prompting the petition for certiorari.

Issue:

  • (Unlock)

Ruling:

  • (Unlock)

Ratio:

  1. Suretyship Obligation: Finman, as the bonding company, is bound by the suretyship agreement to answer for valid claims arising from Pan Pacific's recruitment violations. The agreement makes Finman privy to the proceedings against Pan Pacific.
  2. Jurisdiction: POEA and the Secretary of Labor acted within their jurisdiction in impleading Finman and directing it to pay jointly and severally with Pan Pacific. Finman's failure to timely challenge jurisdiction estops it from raising the issue later.
  3. Findings of Fact: The findings of fact by the Secretary of Labor are supported by substantial evidence, given the ex-parte proceedings and the absence of controverting evidence. The findings are accorded great weight due to the expertise of administrative agencies.


Jur is an AI-powered legal research platform in the Philippines for case digests, summaries, and jurisprudence. AI-generated content may contain inaccuracies; please verify independently.