Title
NPC Drivers and Mechanics Association vs. National Power Corp.
Case
G.R. No. 156208
Decision Date
Jun 30, 2014
NPC employees terminated under EPIRA; Court nullified resolutions, ordered reinstatement or separation pay. PSALM, as NPC’s successor, held liable; garnishment enforced. NPC officials cited for contempt.
A

Case Digest (G.R. No. 156208)

Facts:

  • Parties and Petition and Challenged Resolutions
    • Petitioners
      • NPC Drivers and Mechanics Association (NPC DAMA) represented by its President Roger S. San Juan, Sr.
      • NPC Employees & Workers Union (NEWU) – Northern Luzon Regional Center represented by Jimmy D. Salman
      • Individual NPC employees Zol D. Medina, Narciso M. Magante, Vicente B. Cirio, Jr., and Necitas B. Camama
      • They sued in their own capacities and on behalf of all affected officers and rank-and-file employees of the National Power Corporation (NPC).
    • Respondents
      • National Power Corporation (NPC) and its Board of Directors (NPB) and officers
      • Power Sector Assets and Liabilities Management Corporation (PSALM)
  • Proceedings and Key Chronology
    • NPC Board Resolutions No. 2002-124 and No. 2002-125 (Sept. 2002)
      • Directed termination of all NPC personnel on January 31, 2003 under EPIRA restructuring.
    • Petition for Injunction (filed Dec. 8, 2002)
      • Sought to nullify and enjoin implementation of NPB Resolutions 2002-124 & 2002-125.
    • Supreme Court Decision (Sept. 26, 2006)
      • Declared the two NPB resolutions null and without legal effect.
      • Enjoined their implementation.
    • Clarification Resolution (Sept. 17, 2008)
      • Held that all illegally dismissed employees are entitled to reinstatement or separation pay, backwages, wage adjustments and other benefits from Jan. 31, 2003 until reinstatement or payment.
      • Approved 10% charging lien in favor of petitioners’ counsel.
    • Entry of Judgment (Oct. 10, 2008) and Execution Order (Dec. 10, 2008)
      • Ordered NPC officers to prepare an itemized list under oath of all separated employees and amounts due.
      • Directed payment of separation benefits, backwages, interest and attorney’s charging lien.
    • Compliance Difficulties and Show-Cause Orders
      • NPC submitted list of only 16 executives (Mar. 2009) despite SC coverage of all employees.
      • Petitioners moved to cite officers and sheriffs for contempt (Feb. 2009).
      • SC issued Resolution (Dec. 2, 2009) joining PSALM, directing full list and compliance within 10 days.
    • Incidental Motions and Status Quo
      • NPC and PSALM filed motions for reconsideration and for T.R.O. (Dec. 2009–Jan. 2010).
      • Status quo order: no garnishment pending resolution.
      • Oral arguments and memoranda submitted (Jan.–Feb. 2010).
    • Final Resolution (June 30, 2014)
      • Resolved all pending motions, confirmed coverage, execution orders, contempt findings and PSALM’s liability.

Issues:

  • Coverage of the Nullified NPB Resolutions
    • Which NPC personnel—officers and rank-and-file—were separated pursuant to the nullified NPB Resolutions Nos. 2002-124 and 2002-125?
  • Scope of Relief in the Clarification Resolution
    • Did the September 17, 2008 Resolution grant relief not sought or contemplated in the September 26, 2006 Decision?
  • Terms of the Execution Order
    • Did the December 10, 2008 Resolution, which granted the petitioners’ motion for execution, exceed the terms of the September 17, 2008 Resolution?
  • Effect of Subsequent NPB Resolution No. 2007-55
    • What was the effect of NPB Resolution No. 2007-55 (Sept. 14, 2007) on the nullified NPB Resolutions Nos. 2002-124 and 2002-125?
  • PSALM’s Liability for NPC’s Obligations
    • To what extent is PSALM liable for the financial obligations of NPC arising from the separation of employees?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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