G.R. No. 163512 - Tiu vs. Platinum Plans Phil., Inc.

Respondent is Platinum Plans Philippines, Inc., a domestic corporation engaged in the pre-need industry.
Petitioner is Daisy B. Tiu, who served as Division Marketing Director of respondent from 1987 to 1989, and was re-hired on January 1, 1993 as Senior Assistant Vice-President and Territorial Operations Head for respondent’s Hong Kong and ASEAN operations.

The parties executed a five-year employment contract (1993–1998) containing, inter alia, a non-involvement clause penalizing any engagement “directly or indirectly” in a competing pre-need business within two years after separation with liquidated damages of ₱100,000.
On September 16, 1995, petitioner ceased reporting for work and by November 1995 accepted a Vice-President for Sales position with Professional Pension Plans, Inc., also a pre-need company.
Respondent sued petitioner in the Regional Trial Court (RTC) of Pasig City, Branch 261, praying for:

The RTC rendered judgment ordering payment of ₱100,000 as liquidated damages and denied attorney’s fees for lack of evidence.
The Court of Appeals affirmed the RTC decision (January 20, 2004) and denied reconsideration (May 4, 2004). Petitioner filed the present petition for certiorari before the Supreme Court.

Whether the two-year, industry-wide non-involvement clause constitutes an unreasonable restraint of trade or is otherwise contrary to public order or public policy.

Whether the agreed ₱100,000 as liquidated damages is excessive, iniquitous, or constitutes a penalty subject to equitable reduction under Article 2227 of the Civil Code.