Title
Tabang vs. National Labor Relations Commission
Case
G.R. No. 121143
Decision Date
Jan 21, 1997
A corporate officer's dismissal as Medical Director and Hospital Administrator was deemed an intra-corporate controversy, falling under SEC jurisdiction, not labor tribunals.

Case Digest (G.R. No. 168550)
Expanded Legal Reasoning Model

Facts:

  • Background of the Parties and Appointment
    • Petitioner Purificacion Tabang was a founding member, member of the Board of Trustees, and corporate secretary of respondent Pamana Golden Care Medical Center Foundation, Inc. (a non-stock corporation providing medical and surgical services).
    • On October 30, 1990, the Board of Trustees appointed petitioner as Medical Director and Hospital Administrator of the medical center through a memorandum. The memorandum did not specify remuneration.
    • Petitioner claimed that she received a monthly retainer fee of ₱5,000 from the respondent but alleged that payment stopped in November 1991.
    • Her duties included running the affairs of the medical center and performing administrative acts relative to its daily operations.
  • Removal and Subsequent Complaint
    • On May 1, 1993, petitioner was allegedly informed by Dr. Ernesto Naval that the Board of Trustees, in a special meeting held on April 30, 1993, passed a resolution relieving her from her positions. Dr. Naval and Dr. Donasco were appointed acting Medical Director and acting Hospital Administrator, respectively.
    • Petitioner received a copy of this board resolution.
    • On June 6, 1993, petitioner filed a complaint before the labor arbiter for illegal dismissal and non-payment of wages, allowances, and 13th month pay.
  • Motions and Jurisdictional Challenge
    • Respondent moved to dismiss for lack of jurisdiction, asserting that petitioner's position was interlinked with her role as Board Trustee, thus making her dismissal an intra-corporate controversy under the exclusive jurisdiction of the Securities and Exchange Commission (SEC).
    • Petitioner opposed, claiming that her position as Medical Director and Hospital Administrator was distinct from her trustee role and that the complaint was filed in her capacity as employee.
  • Labor Arbiter and NLRC Decisions
    • On April 26, 1994, the labor arbiter dismissed the complaint for lack of jurisdiction, ruling that the SEC had jurisdiction under Section 5 of Presidential Decree No. 902-A.
    • Petitioner’s motion for reconsideration was treated as an appeal and forwarded to the National Labor Relations Commission (NLRC).
    • NLRC affirmed the dismissal, stating that petitioner’s position was akin to an executive officer and thus her removal was an intra-corporate controversy under the SEC’s jurisdiction.
  • Petition for Certiorari
    • Aggrieved, petitioner filed the present petition for certiorari seeking to annul the NLRC resolution.
    • The Supreme Court found the petition without merit and affirmed the NLRC decision.

Issues:

  • Whether the Labor Arbiter and the NLRC had jurisdiction to entertain petitioner’s complaint for illegal dismissal and non-payment of wages.
  • Whether petitioner’s position as Medical Director and Hospital Administrator is considered an employment relationship subject to labor law jurisdiction or an intra-corporate controversy under the jurisdiction of the SEC.
  • Whether the payments received by petitioner constituted compensation as an employee or professional fees as an independent retained physician.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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