Case Digest (G.R. No. 160236)
Facts:
In G Holdings, Inc. v. National Mines and Allied Workers Union Local 103, the petitioner G Holdings, Inc. (GHI), a domestic corporation registered in 1992 to hold shares of various companies, acquired 90% of the shares and financial claims of Maricalum Mining Corporation (MMC) on October 2, 1992 from the government’s Asset Privatization Trust (APT). These financial claims were evidenced by three promissory notes totaling ₱500 million, each stipulating the establishment of mortgages over MMC’s real and personal properties. Upon down-payment, GHI took possession and management of the mine in Sipalay, Negros Occidental. On August 23, 1996, the National Mines and Allied Workers Union Local 103 (NAMAWU) filed a notice of strike against MMC. Labor Secretary Quisumbing declared the layoffs illegal in 1997 and ordered reinstatement with backwages; his order was affirmed by this Court in two separate cases and became final in January 2000. A partial writ of execution (Brion Writ) issuedCase Digest (G.R. No. 160236)
Facts:
- Parties and Corporate Relationships
- “G” Holdings, Inc. (GHI) – domestic corporation registered August 3, 1992, engaged in holding shares of various companies.
- Maricalum Mining Corporation (MMC) – operates copper mine and mill in Sipalay, Negros Occidental; originally foreclosed by DBP and PNB, transferred to national government for privatization.
- National Mines and Allied Workers Union Local 103 (NAMAWU) – exclusive bargaining agent of MMC rank-and-file employees.
- Privatization Sale and Mortgage Instruments
- October 2, 1992 Purchase and Sale Agreement – GHI acquired 90% of MMC shares and financial claims from Asset Privatization Trust (APT).
- Three Promissory Notes (totaling ₱550M) issued by MMC to GHI, each “establishing and constituting” mortgages on real and personal properties described in attached sheriff’s certificates and APT catalogue.
- GHI took physical possession and management control of MMC immediately upon closing.
- Labor Dispute and Enforcement Orders
- August 23, 1996 – NAMAWU filed notice of strike against MMC for refusal to bargain and unfair labor practice.
- July 30, 1997 Quisumbing Order – Secretary of Labor ruled MMC’s layoffs illegal, ordered reinstatement with backwages and new CBA; Supreme Court affirmed in G.R. Nos. 133519 and 138996 (final January 26, 2000).
- May 11, 2001 Brion Writ – DOLE issued partial writ of execution; Sheriffs’ resistance led to 2002 Alias Writ of Execution and Break-Open Order (Sto. Tomas Writ).
- Judicial Proceedings on Injunctive Relief
- October 11, 2002 – Sheriffs, union members, armed men levied MMA properties under Sto. Tomas Writ; GHI filed SCA No. 1127 for contempt, TRO, preliminary injunction, nullification of levy.
- October 17–18, 2002 – RTC granted TRO and injunction enjoining DOLE sheriffs from enforcing Sto. Tomas Writ, conditioned on GHI posting bond.
- December 4, 2002 Omnibus Order – RTC denied NAMAWU’s motions, ordered return of firearms upon bond, warned counsel.
- October 14, 2003 – Court of Appeals set aside RTC orders, lifted injunction, directed immediate enforcement of Sto. Tomas Writ, questioning mortgage’s validity and foreclosure irregularity; pierced corporate veil of MMC and GHI.
Issues:
- Core Issue
- Whether the RTC properly issued a writ of preliminary injunction to restrain enforcement of the Sto. Tomas Writ against GHI’s claimed properties.
- Subsidiary Questions
- Whether the mortgage over MMC’s properties in favor of GHI was sham, fictitious or fraudulent.
- Whether an effective levy by DOLE sheriffs occurred on MMC’s mortgaged real and personal properties.
- Whether it was proper to pierce the corporate veil separating MMC and GHI.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)