Title
Suzara vs. Benipayo
Case
G.R. No. 57999
Decision Date
Aug 15, 1989
Filipino seamen received ITF-mandated wage increases abroad; NSB deemed it a contract breach. SC ruled in their favor, dismissing estafa charges and affirming their entitlement to higher wages.

Case Digest (G.R. No. 57999)
Expanded Legal Reasoning Model

Facts:

  • Parties and Context
    • Petitioners: Resurreccion Suzara, Cesar Dimaandal, Angelito Mendoza, Antonio Tanedo, Amorsolo Cabrera, Dominador Santos, Isidro Bracia, Ramon de Belen, Ernesto Sabado, Martin Malabanan, Romeo Huerto, Vitaliano Pangue, and others — Filipino seamen employed on vessels of Magsaysay Lines, Inc.
    • Respondents: The Honorable Judge Alfredo L. Benipayo, Magsaysay Lines, Inc., the National Labor Relations Commission (NLRC), and the now Philippine Overseas Employment Administration (formerly National Seamen Board, NSB).
  • Employment Contract and Events
    • In 1977-1978, petitioners entered into separate NSB-approved employment contracts with Magsaysay Lines to serve aboard vessels for 12 months, with fixed salary, overtime pay, and allowances.
    • In April 1978, petitioners joined the M/V Grace River; on October 30, 1978, the vessel arrived at Vancouver, Canada.
    • At Vancouver, petitioners received additional wages totalling US$98,261.70, over and above their contracted salaries, according to rates prescribed by the International Transport Workers’ Federation (ITF).
    • On November 10, 1978, the vessel left Vancouver for Yokohama, Japan, where on December 14, 1978, the petitioners were ordered to disembark.
  • Disputes and Proceedings
    • The NSB found petitioners guilty of breach of contract and ordered reimbursement of US$91,348.44 representing the excess wages, and suspended the petitioners from the NSB registry for three years.
    • The National Labor Relations Commission (NLRC) affirmed the NSB’s decision.
    • Due to petitioners’ refusal to return the overpayments, Magsaysay Lines filed estafa (fraud) charges against some petitioners, later consolidated before Judge Alfredo Benipayo.
    • Petitioners filed consolidated petitions for nullification of the NSB and NLRC decisions and dismissal of criminal estafa cases.
  • Allegations and Contentions
    • Petitioners claimed that no illegal acts or strikes were committed; the wage increases were valid and resulted from peaceful negotiations supported by the ITF.
    • Respondents alleged petitioners staged an illegal strike at Vancouver with ITF’s intervention, coercing the shipowner to pay wage differentials; the “special agreement” to pay increased wages was signed under duress;
    • NSB found petitioners’ conduct illegal and outside the lawful scope of labor negotiations.
  • Key Findings and Evidence from NSB and NLRC
    • Pay-Off Clearance Slips showed entries "DEMANDED ITF WAGES..." indicating petitioners requested and received higher wages through the ITF.
    • ITF’s intervention was at petitioners’ behest, applying pressure including interdiction threats to delay vessel departure for non-payment of increased rates.
    • The “special agreement” signed in Vancouver was compelled to avoid further delay.
    • Petitioners signed an “Agreement” in Nagoya, Japan, which included a clause inserted after signing ("amount(s) received and held by CREWMEMBERS in trust for SHIPOWNERS")—allegedly to invalidate their wage claim.
  • Additional Context and Data
    • The NSB’s minimum basic wage at petitioners' contract time was US$130, below the International Labor Organization (ILO) minimum of US$187 set in 1976 but adopted by NSB only in 1979.
    • The ITF had been active internationally pressing for higher third-world seamen wages, particularly in Canada, without Filipino seamen requesting such intervention.
    • Despite allegations of illegal means, petitioners engaged in peaceful expression (e.g., placards) and continued to work.

Issues:

  • Whether petitioner-seamen are entitled to wage differentials based on the ITF rates paid in Vancouver despite their NSB-approved contracts.
  • Whether the means employed by petitioners to obtain the additional wages constituted illegal acts such as an illegal strike or coercion.
  • Whether the NSB and NLRC had jurisdiction and valid basis to order reimbursement of wage differentials and impose suspension.
  • Whether the Philippine courts have jurisdiction over estafa charges against petitioners concerning acts allegedly committed outside the Philippines.
  • Whether the “special agreement” signed in Vancouver under pressure was valid and binding or obtained by duress or fraud.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

Analyze Cases Smarter, Faster
Jur is a legal research platform serving the Philippines with case digests and jurisprudence resources. AI digests are study aids only—use responsibly.