Case Digest (G.R. No. 167614) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Antonio M. Serrano v. Gallant Maritime Services, Inc. (G.R. No. 167614, March 24, 2009), the petitioner, a Filipino seafarer, entered a POEA-approved 12-month contract on March 19, 1998 as Chief Officer at a basic monthly salary of US$1,400 plus US$700 fixed overtime and leave pay, but was compelled to accept a downgrade to Second Officer at US$1,000 with respondents’ assurance of promotion by April. When respondents failed to promote him, Serrano refused to continue and was repatriated on May 26, 1998 after serving two months and seven days, leaving nine months and 23 days unserved. He filed before the Labor Arbiter (LA) a complaint for illegal constructive dismissal and claimed US$26,442.73 for unexpired wages, moral damages, and attorney’s fees. In July 1999, the LA declared his dismissal illegal but, applying the subject clause of Section 10, Republic Act No. 8042, awarded three months’ salary at US$2,590 per month. On appeal, the NLRC reduced the monthly rate to US$1,400 Case Digest (G.R. No. 167614) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Contract and employment
- Antonio M. Serrano, a Filipino seafarer, was hired by Gallant Maritime Services, Inc. and Marlow Navigation Co., Ltd. under a 12-month POEA-approved contract as Chief Officer at US$1,400 basic pay, US$700 fixed overtime, and 7 days’ vacation leave per month.
- On departure (March 19, 1998) he was downgraded to Second Officer at US$1,000 with promise of promotion by end of April.
- Respondents failed to promote him; he refused to continue and was repatriated on May 26, 1998, after 2 months 7 days of service, leaving 9 months 23 days unexpired.
- Money-claims and Labor Arbiter decision
- Serrano filed for constructive dismissal, back wages (US$26,442.73), moral/exemplary damages, and attorney’s fees.
- The Labor Arbiter (July 15, 1999) declared illegal dismissal and awarded US$8,770 (3-month salary at US$2,590/month), US$45 salary differential, and 10% attorney’s fees; moral/exemplary damages were denied.
- NLRC and Court of Appeals rulings
- NLRC (June 15, 2000) modified award to US$4,669.50 (3 months at US$1,400/month, US$45 differential, 10% fees), excluding overtime and leave pay.
- CA (Dec. 8, 2004; April 1, 2005 Resolution) affirmed NLRC, reduced computation but refused to rule on constitutional challenge to the “three-month cap” clause.
- Supreme Court proceedings
- Serrano filed a Rule 45 petition challenging constitutionality of the cap in R.A. 8042 § 10(5).
- He later sought withdrawal for medical reasons but urged resolution of the constitutional issue and partial execution of undisputed awards.
- SC directed full merits briefing and took up the constitutionality of the “three months for every year…whichever is less” clause.
Issues:
- Does the last clause of Section 10(5), R.A. No. 8042—limiting illegally dismissed OFWs’ money claims to salaries for the unexpired contract or “three months for every year of the unexpired term, whichever is less”—violate:
- The impairment-of-contracts clause (Art. III, Sec. 10)?
- The equal protection clause (Art. III, Sec. 1) and labor special protection (Art. II, Sec. 18; Art. XIII, Sec. 3)?
- The substantive due process guarantee (Art. III, Sec. 1)?
- Should overtime and vacation leave pay stipulated in a seafarer’s contract form part of the “salaries” for computing the money claims under R.A. 8042 § 10(5)?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)