Title
Supreme Court
Philippine Airlines, Inc. vs. National Labor Relations Commission
Case
G.R. No. 120567
Decision Date
Mar 20, 1998
PAL dismissed flight stewards Pineda and Cabling for alleged currency smuggling; NLRC issued an injunction for reinstatement without prior illegal dismissal complaint. SC ruled NLRC exceeded jurisdiction, emphasizing proper remedy is filing with labor arbiter.

Case Digest (G.R. No. 120567)
Expanded Legal Reasoning Model

Facts:

  • Background and parties
    • Petitioner Philippine Airlines, Inc. (PAL) employs Ferdinand Pineda and Godofredo Cabling as flight stewards.
    • On April 3, 1993, Hong Kong Airport Police intercepted Avionics Mechanic Joseph Abaca carrying ₱2.5 million in Philippine currency. Abaca claimed to have “found” the money in the skybed of PR300/03, on which Pineda and Cabling served.
  • Internal investigation and dismissal
    • April 15, 1993: PAL’s Security and Fraud Prevention Sub-Department summons petitioners for questioning. No formal hearing is held until January 20, 1995, when Abaca identifies petitioners under a “line-up” consisting solely of the two stewards. Abaca’s identification is hesitant; subsequent hearing on January 25, 1995, yields exculpatory statements from Abaca.
    • February 22 and early March 1995: PAL issues memoranda terminating petitioners for violation of its Code of Discipline, effective immediately and backdated for Pineda.
  • Proceedings before the NLRC
    • Private respondents file a direct petition for injunction with the NLRC, praying for:
      • Temporary restraining order prohibiting enforcement of the dismissal;
      • Preliminary mandatory injunction ordering their reinstatement;
      • Permanent injunction with awards of full backwages, moral and exemplary damages (₱500,000 each), attorney’s fees (10 %), and costs.
    • April 3, 1995: NLRC (First Division) issues a temporary mandatory injunction enjoining PAL from enforcing its dismissal orders, relying on:
      • Illegality of PAL’s Code of Discipline (PAL vs. NLRC, G.R. No. 85985);
      • NLRC’s power under Article 218(e) of the Labor Code to grant mandatory injunctions;
      • Alleged “whimsical, baseless and premature” dismissals causing irreparable injury.
    • May 4, 1995: PAL moves for reconsideration, contesting NLRC’s jurisdiction, due process, and the adequacy of injunctive relief.
    • May 31, 1995: NLRC denies reconsideration, holding that:
      • Security of tenure is a “term or condition of employment” warranting injunctive relief;
      • Article 218(e) authorizes both prohibitory and mandatory injunctions;
      • The remedy before the labor arbiter is not “adequate” because illegal dismissal cases may take up to three years;
      • Backwages alone are insufficient when reinstatement is at issue.

Issues:

  • Jurisdiction and proper forum
    • Can the NLRC, in the absence of an illegal dismissal complaint filed with the labor arbiter, entertain a direct petition for injunction and order reinstatement?
    • Does Article 218(e) of the Labor Code grant the NLRC divisions “blanket authority” to issue injunctive writs in employment termination disputes?
  • Requirements for injunctive relief
    • Whether private respondents demonstrated a bona fide labor dispute and the requisite “irreparable injury” to justify extraordinary injunctive relief.
    • Whether the remedy of filing an illegal dismissal complaint before the labor arbiter constitutes a plain, adequate, and complete remedy at law.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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