Case Digest (G.R. No. 192105)
Facts:
- Antonio Locsin II was offered the position of Regional Sales Manager by Mekeni Food Corporation in February 2004.
- The offer included a compensation and benefit package with a car plan where Mekeni would cover half the cost of a vehicle, and the other half would be deducted from Locsin's salary.
- Locsin began his employment on March 17, 2004, and was provided with a used Honda Civic valued at PHP 280,000.
- Locsin paid his share through monthly salary deductions of PHP 5,000.
- He resigned effective February 25, 2006, having paid PHP 112,500 towards the car plan.
- Locsin offered to purchase the vehicle by paying the outstanding balance, but negotiations failed, and he returned the vehicle on May 2, 2006.
- Locsin filed a complaint with the National Labor Relations Commission (NLRC) for unpaid salaries, commissions, benefits, and reimbursement of his car plan payments.
- The Labor Arbiter ruled in favor of Locsin, but the NLRC reversed this decision, ordering Mekeni to reimburse Locsin's car plan payments and other monetary claims.
- Mekeni appealed to the Court of Appeals (CA), which modified the NLRC's decision by deleting the reimbursement of the car plan payments.
- Locsin then filed a Petition for Review on Certiorari with the Supreme Court.
Issue:
- (Unlock)
Ruling:
- Yes, the Court of Appeals erred in treating Locsin's car plan payments as rentals.
- Yes, Locsin is enti...(Unlock)
Ratio:
- The Supreme Court found that the car plan agreement did not specify terms allowing Mekeni to treat Locsin's car plan payments as rentals.
- The service vehicle was primarily used for Mekeni's business operations, and any personal benefit to Locsin was incidental.
- Payments made by Locsin could not be considered rentals in the absence of an express stipulation.
- The car plan was deemed necess...continue reading
Case Digest (G.R. No. 192105)
Facts:
In the case of "Locsin II v. Mekeni Food Corp.," the petitioner, Antonio Locsin II, was offered the position of Regional Sales Manager by Mekeni Food Corporation (Mekeni) in February 2004. The offer included a compensation and benefit package, which featured a car plan where Mekeni would cover half the cost of a vehicle, and the other half would be deducted from Locsin's salary. Locsin began his employment on March 17, 2004, and was provided with a used Honda Civic valued at PHP 280,000. He paid his share through monthly salary deductions of PHP 5,000. Locsin resigned effective February 25, 2006, having paid PHP 112,500 towards the car plan. He offered to purchase the vehicle by paying the outstanding balance, but negotiations failed, and he returned the vehicle on May 2, 2006. Locsin then filed a complaint with the National Labor Relations Commission (NLRC) for unpaid salaries, commissions, benefits, and reimbursement of his car plan payments. The Labor Arbiter initially ruled in favor of Locsin, but the NLRC reversed this decision, ordering Mekeni to reimburse Locsin's car plan payments and other monetary claims. Mekeni appe...