Title
Martos vs. New San Jose Builders, Inc.
Case
G.R. No. 192650
Decision Date
Oct 24, 2012
NSJBI workers claimed illegal dismissal; most complaints dismissed due to unverified position papers. Felix Martos, a regular employee, awarded separation pay and backwages in lieu of reinstatement.

Case Digest (G.R. No. 72841)
Expanded Legal Reasoning Model

Facts:

  • Parties and Project
    • Petitioners: Ninety‐two (92) individuals who worked for New San Jose Builders, Inc. (NSJBI) on the San Jose Plains Project (SJPP), a low‐cost housing development in Montalban, Rizal.
    • Respondent: NSJBI, a Philippine construction company engaged in government infrastructure and housing projects, including SJPP.
  • Employment and Layoffs
    • Hiring Period: Private respondents were engaged between 1986 and 2002 in various positions; Felix Martos first employed October 5, 1998.
    • Project Suspension: In 2000, due to National Housing Authority’s funding shortfall, work on SJPP was suspended. Some workers were laid off; others offered “project employee” status, which they refused.
  • Judicial Proceedings
    • Labor Arbiter (LA): Three consolidated complaints for illegal dismissal and money claims filed March–July 2002 before NLRC; LA Decision (May 23, 2003) held only Martos illegally dismissed (awarded separation pay, backwages, benefits) and dismissed other complaints without prejudice.
    • NLRC: On appeal, dismissed NSJBI’s appeal and partially granted workers’ appeal (July 30, 2008), ordering reinstatement of all complainants with full backwages and benefits; Motion for Reconsideration denied.
    • Court of Appeals (CA): Petitions for certiorari filed; CA Decision (July 31, 2009) reversed NLRC, reinstated LA Decision, dismissing other complaints for failure to verify position papers and recognizing only Martos as illegally dismissed.
    • Supreme Court: Petition for review under Rule 45 questioning CA’s dismissal of unverified claims and denial of reinstatement.

Issues:

  • Verification Requirement
    • Whether the CA correctly dismissed the complaints of those petitioners who failed to verify their position papers under the Rules of Court and NLRC Rules.
  • Reinstatement vs. Separation Pay
    • Whether Felix Martos should be reinstated or, given strained industrial relations, should receive separation pay in lieu of reinstatement.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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