Title
Nacar vs. Gallery Frames
Case
G.R. No. 189871
Decision Date
Aug 13, 2013
Employee illegally dismissed in 1997; Supreme Court ruled backwages and separation pay must cover dismissal to finality (2002), with interest, affirming recomputation does not violate finality of judgment.
A

Case Digest (G.R. No. 189871)

Facts:

  • Labor Arbiter Proceedings
    • Petitioner Dario Nacar filed a complaint for constructive dismissal against Gallery Frames and Felipe Bordey, Jr. before the NLRC Arbitration Branch in January 1997.
    • On October 15, 1998, the Labor Arbiter found the dismissal illegal and awarded separation pay and backwages computed up to promulgation (P158,919.92 total).
  • Appeals and Finality
    • Respondents appealed to the NLRC, which affirmed the Arbiter’s decision on February 29, 2000; subsequent motions for reconsideration were denied.
    • Respondents then sought certiorari relief from the Court of Appeals and the Supreme Court; all petitions and motions were denied, with finality reached on May 27, 2002.
  • Execution and Recomputations
    • Petitioner moved for recomputation of backwages from dismissal up to finality (May 27, 2002); the NLRC Computation Unit arrived at P471,320.31.
    • Labor Arbiter issued writs of execution; respondents successively challenged and secured partial recomputations, reducing awards to P147,560.19, which petitioner received pending further computation.
  • Subsequent Motions and Court of Appeals Decision
    • Petitioner sought re-computation of the full award and legal interest; on May 10, 2005, the Labor Arbiter granted interest only on the balance of P11,459.73.
    • NLRC and the Court of Appeals (September 23, 2008) upheld that the October 15, 1998 decision was final and immutable except for clerical errors; petitioner’s motion for reconsideration was denied on October 9, 2009.

Issues:

  • Whether a recomputation of monetary awards originally computed by the Labor Arbiter may be made up to the finality of the decision despite an initial computation in the decision itself.
  • Whether petitioner is entitled to legal interest on the total monetary awards and which rate applies given subsequent BSP-MB Circular No. 799.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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