Title
Meralco Workers Union vs. Yatco
Case
G.R. No. L-19785
Decision Date
Jan 30, 1967
A labor dispute between Meralco Workers Union and Manila Electric Company escalated into violence, prompting a court-issued injunction. The strike ended with a settlement, rendering the case moot. The Court upheld the injunction, citing unlawful acts, and dismissed the Union’s damage claims.

Case Digest (G.R. No. 10735)
Expanded Legal Reasoning Model

Facts:

  • Background of the Case
    • The Meralco Workers Union (referred to as the Union) filed a petition for certiorari with a prayer for a preliminary injunction.
    • The petition was directed against the Honorable Nicasio Yatco, Presiding Judge of the Court of First Instance of Quezon City, and the Manila Electric Company (the Company).
    • The underlying dispute revolved around labor relations and a collective bargaining agreement between the parties.
  • Proceedings Initiated by the Company
    • On May 15, 1962, the Company initiated a complaint in the Court of First Instance of Quezon City.
    • The complaint sought a writ of preliminary injunction to restrain the Union and its affiliates from:
      • Obstructing, stopping, blocking, or intimidating the Company’s employees.
      • Preventing secured access to its main office, power plants (Rockwell and Blaisdell), and other operational stations.
    • The Company contended that such actions were interfering with its ability to deliver essential services.
  • Summary Hearing and Testimony
    • During the summary hearing on May 17, 1962, the Company’s witness, Mr. H. B. Reyes (Vice President and legal counsel), testified regarding:
      • His role in handling all labor-related matters including negotiations and resolving disputes.
      • His responsibility in implementing the collective bargaining agreement effective January 1, 1957, which expired on December 31, 1961.
    • Mr. Reyes detailed that in October 1961, prior to the expiration of the agreement, the Union demanded a renegotiation and transmitted its demands.
      • Subsequent negotiations took place on December 13, 1961, with further meetings held on February 19 (or 23), March 1, and March 7, 1962.
      • A written reply from the Company and the corresponding union reply were recorded as exhibits (Exh. A and Exh. A-1).
  • Declaration of Strike and Escalation of Violence
    • The Union served a notice of strike on April 2, 1962 (dated March 26, 1962), leading to:
      • The official declaration of strike on May 3, 1962, at 7:15 p.m.
    • During the strike, multiple incidents occurred:
      • The picket lines established by the Union blocked non-striking employees from performing their duties at various Company sites.
      • At the Rockwell station, employees were effectively detained, compromising service delivery to several major cities and provinces.
      • Additional disruptive measures included:
        • Harassment and threats against non-striking employees.
ii. Interference with food supply operations, with the Company resorting to unconventional methods (airdropping food and using tugboats) which were thwarted by Union picketing.
  • Specific incidents of violence and sabotage were noted:
    • In Quezon City, a non-striking employee (Loreto Baetiong) was assaulted after attempting to repair a transformer.
    • On May 12, 1962, a vital transmission line suffered sabotage when a steel tower was sawed off, as evidenced by photographic exhibits and a newspaper report.
  • Litigatory Developments and Settlement
    • The Union moved to reconsider the preliminary injunction order, though it later withdrew this motion.
    • Concurrently, on May 30, 1962—a day when the petition was duly noted by the Court—a “Return to Work Agreement” was executed.
      • This agreement effectively settled the labor dispute.
      • The settlement resulted in the cessation of the strike and picketing, with the Union agreeing to no-strike and no-lockout stipulations.
    • With the labor dispute resolved and the injurious acts ended, the issues necessitating the injunction became moot.

Issues:

  • Jurisdiction and Appropriateness of the Injunction
    • Whether the Court of First Instance had jurisdiction to issue a preliminary injunction in a matter primarily involving a labor dispute.
    • Whether the preliminary injunction, aimed at curbing obstructive and violent acts, was proper given that it did not restrain the lawful exercise of striking and picketing.
  • Mootness of the Case
    • Whether the execution of the “Return to Work Agreement” rendered the subject matter and the injunction moot.
    • Whether the cessation of the strike and related incidents precluded further judicial intervention.
  • Claim for Damages Against the Issuance of the Injunction
    • Whether the Union’s claim for damages, alleging improper issuance of the injunction, warrants separate adjudication.
    • The appropriateness of continuing litigation on issues that have been settled by an amicable labor agreement.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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