G.R. No. 150910 - Gonzaludo vs. People

Petitioners Manila Hotel Corporation (MHC) and Manila Hotel International Company, Limited (MHICL) filed a petition for certiorari under Rule 65 seeking to annul NLRC orders dated May 31, 1993; December 15, 1994; and March 30, 1995, on grounds of lack or excess of jurisdiction and grave abuse of discretion.
Private respondent Marcelo G. Santos filed a complaint for illegal dismissal before the NLRC’s Arbitration Branch, naming MHC, MHICL, Palace Hotel (Beijing) and its General Manager Gerhard R. Schmidt as respondents; only MHC and MHICL were served and participated.

In May 1988, Santos was employed as a printer in Oman. He received an offer letter dated May 2, 1988 from Mr. Schmidt of Palace Hotel, Beijing, China, for a two-year contract commencing September 1, 1988, at US$900 net monthly payable 14 times a year. He signified acceptance on May 8 and returned signed contracts on June 4, 1988.
Santos resigned from his Oman employment effective June 30, 1988, arrived in Manila on July 1, 1988, departed for Beijing on November 5, 1988, and entered into an amended employment agreement effective November 5, 1988, noted by MHICL’s Vice-President.

On August 10, 1989, Palace Hotel informed Santos of termination due to business reverses from the Tiananmen Square incidents; effective September 5, 1989, with payment of benefits and repatriation on October 3, 1989.
Santos, through counsel, demanded full contractual compensation on October 24, 1989; Mr. Schmidt replied on November 11, 1989, asserting proper notice and claiming Santos’s performance was below average.

Santos filed his complaint on February 20, 1990. Labor Arbiter Ceferina J. Diosana rendered a decision on June 27, 1991 ordering joint and several payment of US$20,820 unearned salaries, P50,000 moral damages, P40,000 exemplary damages, and 10% attorney’s fees.
On appeal, the NLRC issued an August 28, 1992 resolution declaring lack of jurisdiction and directing Santos to file with the POEA. On Santos’s motion, the NLRC reversed on May 31, 1993 and resumed jurisdiction, referring the case to Labor Arbiter Emerson Tumanon and later Jose G. de Vera.
On December 15, 1994, the NLRC rendered a decision directing petitioners to pay US$19,800 plus 10% attorney’s fees. A motion for reconsideration was denied on March 30, 1995.

Petitioners filed their certiorari petition on May 22, 1995; an urgent motion for TRO was denied on November 20, 1995. The Solicitor General later manifested inability to defend the NLRC’s position, and the NLRC filed its comment on January 7, 1997.

Whether the NLRC had jurisdiction over Santos’s complaint instead of the POEA.
Whether MHC and MHICL can be held liable for Santos’s alleged illegal dismissal.
Whether the NLRC committed grave abuse of discretion in assuming jurisdiction and rendering the contested awards.