G.R. No. 64374 - Custodio vs. Ministry of Labor and Employment

Petition for review on certiorari under Rule 45 was filed by South Cotabato Communications Corporation and Gauvain J. Benzonan against orders and resolutions issued by the Department of Labor and Employment (DOLE) and the Court of Appeals.
The petition sought to set aside:

The DOLE administrative orders and resolutions directing DXCP Radio Station and its president to pay affected employees for various wage-related violations.
The Court of Appeals’ Resolution dismissing the petition due to procedural infirmities.

An inspection was conducted on January 13, 2004 at the premises of DXCP Radio Station after a complaint was filed.
The inspection revealed several labor standard violations, including:

Tony Ladorna (initial receipt).
Felipe S. Galindo, Technical Supervisor (subsequent receipt on January 16, 2004).

The Notice required the appellants to effect restitution or correction of the violations within five (5) calendar days and to submit any inquiries on the findings within five (5) working days.

A summary investigation was conducted on March 3, 2004 where only appellees appeared; appellants failed to appear despite due notice.
A subsequent hearing on April 1, 2004 saw the appearance of appellees and representation for appellants by Nona Gido on behalf of Atty. Thomas Jacobo; however, the request to reschedule the hearing was denied.
On May 20, 2004, the Regional Director of DOLE Regional XII Office issued an Order directing DXCP Radio Station and/or its president to pay the affected workers a total of Php759,752.00, covering wage differential, 13th month pay differential, service incentive leave pay, rest day premium, and holiday premium.
Appellants appealed to then DOLE Secretary Patricia A. Sto. Tomas, who in an Order dated November 8, 2004 affirmed the payment order and dismissed the appeal on the ground of having been given a reasonable opportunity to present their defense.
Petitioners further elevated the issue to the Court of Appeals:

Their petition was dismissed in a Resolution dated July 20, 2005 due to several procedural errors, namely:

The petition was not properly verified.
The Certification of Non-Forum Shopping was not executed by the principal party.
Certain annexes (A, B, C, E and its attachments, and F) were not certified as true copies.
Their counsel failed to indicate the date of issue on the IBP Official Receipt.

The Court of Appeals Resolution dated May 22, 2006 noted that the subsequent submission remedied the second and third procedural errors.
However, the justification for the first procedural error was found insufficient as petitioner Benzonan, acting on behalf of the corporation, should have been supported by a board resolution authorizing him to institute the petition.

Whether the Court of Appeals committed grave abuse of discretion by dismissing the Petition for Certiorari and denying the Motion for Reconsideration due to alleged noncompliance with Sections 4 and 5, Rule 7 of the 1997 Rules of Civil Procedure.
Whether petitioners were denied due process in the administrative proceedings before the DOLE Regional Director and Secretary.
Whether the Order issued by the Regional Director on May 20, 2004 was sufficiently supported by evidence.

The case was further complicated by discussions on whether certain procedural requirements—such as the verification and the certification against forum shopping—required strict compliance or could be deemed substantially complied with.

Whether the Court of Appeals abused its discretion by dismissing the petition and Motion for Reconsideration due to alleged procedural deficiencies concerning:

Whether petitioners were denied due process of law during the administrative proceedings before:

Whether there was sufficient basis in the Order issued by the Regional Director of DOLE Regional XII Office dated May 20, 2004 to compel the payment of Php759,752.00 for the wage-related claims.