Title
Supreme Court
Guagua National Colleges vs. Court of Appeals
Case
G.R. No. 188492
Decision Date
Aug 28, 2018
Conflict over appeal period for Voluntary Arbitrator decisions: 10 days under Labor Code vs. 15 days under Rules of Court. SC ruled 10 days for reconsideration, 15 days for CA review, favoring labor.

Case Digest (G.R. No. 123686)
Expanded Legal Reasoning Model

Facts:

  • Statutory and institutional background
    • Republic Act No. 6728, Section 5(2) mandates that 70% of any tuition‐fee increase in private basic education go to the salaries, wages, allowances and other benefits of teaching and non-teaching personnel.
    • Guagua National Colleges (GNC) imposed a 7% tuition increase for School Year 2006–2007 and allotted the 70% net incremental proceeds to fund its retirement plan.
  • Voluntary arbitration proceeding
    • The GNC–Faculty Labor Union and GNC Non-Teaching Maintenance Labor Union challenged the funding of the retirement program as a misuse of the 70% proceeds and submitted the dispute to voluntary arbitration.
    • Voluntary Arbitrator Froilan M. Bacungan rendered a decision on June 16, 2008 holding that retirement benefits are “other benefits” chargeable to the 70% incremental proceeds.
  • Post-arbitration and appellate steps
    • The arbitral decision became effective upon receipt on June 16, 2008; respondents moved the Court of Appeals (CA) for a 15-day extension to file their petition for review, which the CA granted to July 16, 2008.
    • Respondents filed a petition for review under Rule 43 on July 16, 2008. GNC moved to dismiss on the ground that the arbitral award became final and executory after ten days under Article 276 of the Labor Code.
    • The CA denied the Motion to Dismiss on December 15, 2008 and likewise denied reconsideration on January 30, 2009. GNC then filed a petition for certiorari in the Supreme Court.

Issues:

  • Whether the Court of Appeals, in denying GNC’s Motion to Dismiss and entertaining the petition for review beyond ten days, acted without or in excess of its jurisdiction given the ten-day finality rule of Article 276 versus the fifteen-day period under Rule 43 of the Rules of Court.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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