Title
Supreme Court
Victory Liner, Inc. vs. Race
Case
G.R. No. 164820
Decision Date
Mar 28, 2007
A bus driver, injured on duty, was deemed resigned by his employer after recovery. He filed for illegal dismissal, with courts ruling in his favor, awarding separation pay instead of reinstatement due to physical limitations.

Case Digest (G.R. No. 164820)
Expanded Legal Reasoning Model

Facts:

  • In June 1993, Pablo M. Race was employed by Victory Liner, Inc. as a bus driver. As a condition of his hiring, he deposited a cash bond of ₱10,000.
  • On the night of August 24, 1994, while driving from Alaminos, Pangasinan to Cubao, Quezon City, Race’s bus was involved in an accident that caused him to fracture his left leg. He was admitted and underwent surgery at the Country Medical and Trauma Center (August–October 1994) and was later confined for additional treatment at the Specialist Group Hospital in Dagupan City. Victory Liner assumed the medical expenses during these confinements.
  • In January 1998, still limping and after his recuperation, Race reported to the petitioner’s office expecting to resume work. Instead, he was informed by the company representative, Yolanda Montes, that he was considered to have resigned. Montes offered a financial “consideration” (initially ₱50,000.00, later increased to ₱100,000.00) in lieu of his reinstatement, which Race rejected.
  • Race, through his counsel, sent a demand letter on June 30, 1999, and subsequently filed a complaint before the Labor Arbiter on September 1, 1999, asserting claims including illegal dismissal, unfair labor practice, nonpayment and underpayment of wages and benefits, among others.
  • The Labor Arbiter ruled that Race’s complaint had prescribed because his alleged dismissal was dated August 24, 1994, and he filed later than the four-year period prescribed by law.
  • The NLRC reversed the Labor Arbiter’s decision, holding that Race’s cause of action accrued only in January 1998 when he was informed that he was deemed to have resigned, thereby falling within the four-year prescriptive period.
  • Victory Liner argued that Race had abandoned his work, that he was not a regular employee (merely field personnel), that his absence was due to incapacity post-accident, and that his claims, including for reinstatement and backwages, were time-barred. They also contended that reinstatement as a bus driver would expose passengers to risks given his lingering physical limitations.

Issues:

  • When did Race’s cause of action for illegal dismissal accrue—August 24, 1994 (the date of accident) or January 1998 (when he was notified of his “resignation”)?
  • Did Victory Liner comply with the requirements of due process in terminating Race’s employment, particularly in terms of providing written notice and affording him a hearing?
  • Is reinstatement as a bus driver proper in view of Race’s expressed reluctance and his physical condition post-accident, especially considering the safety obligations of a common carrier?
  • Whether the computation of full backwages from the alleged illegal dismissal (with the typographical errors notwithstanding) and granting other benefits was justified.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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