Title
Supreme Court
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.

Case Digest (G.R. No. 189871)
Expanded Legal Reasoning Model

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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