G.R. No. 200434 - Tiangco vs. ABS-CBN Broadcasting Corp.

Petitioner Carmela C. Tiangco (“petitioner”) first hired by respondent ABS-CBN Broadcasting Corporation (“ABS-CBN”) as exclusive Talent Newscaster on 22 July 1986 for one year at a PHP 8,000 monthly fee.
Contracts renewed in 1987, 1988, 1989 and 1990 with increasing fees (up to PHP 50,000/mo) and continuing exclusivity clauses; additional engagements included the Mel & Jay show.
On 27 April 1991, a three-year contract granted petitioner PHP 240,000/year plus PHP 250,000 worth of ABS-CBN stocks, exclusive services, and standard benefits.
Effective 1 March 1994 to 30 April 1997, ABS-CBN entered into an Agreement with Mel & Jay Management and Development Corporation (“MJMDC”) for petitioner’s exclusive radio/TV services, prescribing duties (TV Patrol co-anchor, Mel & Jay co-host, Lingkod Bayan executive director), benefits (SSS, Medicare, insurance, 13th month pay), exclusivity in programs and commercials, and termination remedies.

On 8 February 1995, ABS-CBN issued a Memorandum forbidding News & Public Affairs talents from commercial appearances to protect program integrity.
Petitioner appeared in a Tide commercial in December 1995; on 16 January 1996, ABS-CBN suspended her for three months without pay from TV Patrol and Mel & Jay.
Petitioner claimed verbal approval was given; ABS-CBN denied it and upheld suspension as company rule violation.

On 11 March 1996, petitioner filed a complaint for illegal suspension, illegal dismissal, backwages, separation pay, 13th month pay, travel and vacation benefits (PHP 150,000), stocks, moral damages, attorney’s fees.
On 29 April 1999, Labor Arbiter Jose De Vera found the suspension and constructive dismissal illegal and awarded approximately PHP 11 million in backwages, separation pay, 13th month pay, bonus, ESOP refund, travel benefits, moral damages, and attorney’s fees.
ABS-CBN appealed to the NLRC for lack of jurisdiction, citing Sonza v. ABS-CBN (2004) which held that broadcast talents are independent contractors.
On 31 July 2006, the NLRC set aside the Labor Arbiter’s decision, dismissed the case for lack of jurisdiction, and applied the Sonza doctrine by stare decisis.
Petitioner filed a Petition for Certiorari at the CA; after referral to mediation, parties signed a Partial Settlement Agreement (15 December 2011) covering specific monetary claims (salaries during suspension, 13th month pay, travel allowance, ESOP refund, signing bonus), waived those claims, reserved other issues for adjudication, and secured CA approval on 27 January 2012, rendering remaining issues moot.
Petitioner elevated the case to the Supreme Court under Rule 45, challenging (a) completeness of the Partial Settlement Agreement and (b) her status as employee versus independent contractor.

Whether the Partial Settlement Agreement finally settled all of petitioner’s monetary claims (including separation pay, moral damages, attorney’s fees).

Whether petitioner is an ABS-CBN employee entitled to statutory labor benefits or an independent contractor.