G.R. No. 159333 - Mendiola vs. Court of Appeals

Pacific Forest Resources Philippines, Inc. (Pacfor)
Cellmark AB (parent corporation of Pacfor)
Court of Appeals and National Labor Relations Commission (NLRC) as intervening bodies

Labor Arbiter issued a Decision on July 30, 2001 ordering Cellmark AB and Pacfor, jointly and severally, to pay separation pay, moral and exemplary damages, and attorney’s fees to petitioner Arsenio T. Mendiola.
National Labor Relations Commission decided on December 20, 2001.
Court of Appeals rendered decisions on January 30, 2003, and July 30, 2003 affirming the NLRC's ruling.
Supreme Court, in a decision dated July 31, 2006, granted petitioner’s petition, annulled and set aside Court of Appeals decisions, and reinstated the Labor Arbiter’s July 30, 2001 Decision with modification, deducting P250,000.00 from separation pay for lack of evidence regarding alleged salary increase.

Whether Cellmark AB could be held solidarily liable with Pacfor for separation pay and damages.
Jurisdiction over Cellmark AB, a foreign parent corporation with principal office in Sweden, questioned due to absence of service of summons or voluntary submission to jurisdiction.

Pacfor argued that courts never acquired jurisdiction over Cellmark AB, and hence, Labor Arbiter’s holding of joint and solidary liability was improper.
No substantial issues were raised concerning other matters previously discussed by the Court.

Whether the Court acquired jurisdiction over respondent Cellmark AB, a foreign corporation.
Whether Cellmark AB can be held jointly and solidarily liable with Pacfor for the separation pay and damages awarded to petitioner.
Whether the amount of P250,000.00 alleged as increased salary should be deducted from the separation pay.