Title
Supreme Court
Magbanua vs. Uy
Case
G.R. No. 161003
Decision Date
May 6, 2005
Petitioners challenged a CA decision upholding a compromise agreement on wage differentials, claiming partial payment and invalid waiver. SC affirmed CA, ruling the agreement valid, voluntary, and enforceable despite final judgment.

Case Digest (G.R. No. 161003)
Expanded Legal Reasoning Model

Facts:

  • Final Judgment and Execution Proceedings
    • The Supreme Court, in GR No. 117983 (Sept. 6, 1996), affirmed with modification an NLRC decision awarding eight complainants (petitioners) ₱1,487,312.69 in wage differentials.
    • On February 3, 1997, petitioners filed a Motion for Issuance of Writ of Execution.
  • Compromise Agreements and Waivers
    • On May 19, 1997, respondent Rizalino Uy filed a Manifestation (signed by petitioners) stating full satisfaction of the award; accompanied by a Joint Affidavit (May 5, 1997) of petitioners acknowledging receipt of payment and waiving further claims.
    • On June 3, 1997, petitioners filed an Urgent Motion confirming they each received ₱40,000 on May 2; respondent opposed, asserting full satisfaction, while petitioners claimed only partial payments.
    • On October 20, 1997, six petitioners filed another Manifestation (with Joint Affidavit in local dialect) requesting case closure as fully satisfied.
  • Labor Arbiter, NLRC and Court of Appeals Rulings
    • February 27, 1998: Labor Arbiter denied writ of execution and considered the cases closed.
    • NLRC reversed the arbiter, ordered immediate issuance of writ of execution, holding quitclaims are contrary to public policy.
    • May 31, 2000: Court of Appeals (CA) found NLRC in grave abuse of discretion, reinstated arbiter’s closure order; October 30, 2003: CA denied petitioners’ motion for reconsideration as late.

Issues:

  • Can a final and executory Supreme Court judgment be compromised?
  • Is the affidavit/waiver executed by petitioners without their counsel or the labor arbiter valid?
  • Does the CA’s alleged miscounting of the reconsideration period and ignorance of jurisprudence deny petitioners’ due process?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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