Case Digest (G.R. No. 197728) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
On October 4, 2002, Andrew James McBurnie, an Australian national, filed a complaint for illegal dismissal and other monetary claims against Eulalio Ganzon, EGI-Managers, Inc. and E. Ganzon, Inc. He alleged that on May 11, 1999, he signed a five-year employment agreement as Executive Vice-President to oversee hotel projects, worked until an accident in November 1999 forced him to return to Australia, and was then informed by Ganzon that his services were no longer needed. McBurnie never obtained an Alien Employment Permit. On September 30, 2004, the Labor Arbiter ruled he was illegally dismissed and awarded US$985,162.00 for unexpired salary, P2,000,000.00 in moral and exemplary damages, and attorney’s fees equivalent to 10% of the award. The respondents appealed to the National Labor Relations Commission (NLRC) on November 5, 2004, posting an initial bond of P100,000.00 and moving to reduce the bond; the NLRC denied the motion on March 31, 2005 and again on reconsideration, and Case Digest (G.R. No. 197728) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Origin of Dispute
- May 11, 1999: Andrew James McBurnie, an Australian national, signs a five-year “employment agreement” as Executive Vice-President with EGI-Managers, Inc.; respondents later claim it was an investment pact to facilitate his work permit.
- November 1999: McBurnie suffers an accident, returns to Australia; told by respondent Ganzon that his services are no longer needed; he files a complaint for illegal dismissal and monetary claims on October 4, 2002.
- Proceedings Below
- Labor Arbiter Decision (Sept 30, 2004): Declares McBurnie illegally dismissed; awards US$985,162 (unexpired salary), ₱2,000,000 (moral/exemplary damages), and 10% of total award as attorney’s fees.
- NLRC Actions: Respondents post a ₱100,000 bond but move to reduce the required full bond (≈₱54,083,910); NLRC denies motion (Mar 31, 2005), requires full bond; dismisses appeal for failure to post additional bond (Mar 8, 2006; reconsideration denied Jun 30, 2006).
- Court of Appeals (CA): Grants preliminary injunction (Feb 16, 2007) on ₱10,000,000 bond; on merits (Oct 27, 2008) grants motion to reduce bond to ₱10,000,000, directs NLRC to give due course to respondents’ appeal; denies further motions (Mar 3, 2009).
- Supreme Court Third Division
- Petition for Review: McBurnie’s petition denied for technical defects (July 4 & Oct 8, 2007); his supplemental motion denied as prohibited pleading (Nov 26, 2007).
- Third Division Decision (Sept 18, 2009): Reverses CA, reinstates NLRC’s dismissal for failure to post full bond; holds that bond equal to full award is the exclusive means to perfect appeal. Respondents’ first motion for reconsideration denied (Dec 14, 2009).
- Finality and Further Motions: Decision becomes final March 14, 2012; respondents file third motion for reconsideration (Mar 27, 2012); en banc accepts the case and issues TRO (Sept 4, 2012); McBurnie files motion for reconsideration (Sept 26, 2012).
Issues:
- Procedural Issues
- May the Court en banc entertain second or subsequent motions for reconsideration to recall a final and executory decision?
- Is failure to post the full appeal bond within the 10-day reglementary period fatal despite a pending motion to reduce bond?
- Appeal Bond Issues
- Does filing a motion to reduce bond, coupled with a partial bond posting, suspend the 10-day period to perfect an appeal?
- What constitutes a “reasonable amount” of bond in relation to the monetary award?
- Merits of Illegal Dismissal
- Was there an employer-employee relationship between McBurnie and respondents?
- Does absence of an Alien Employment Permit render the contract void and bar an illegal dismissal claim?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)