G.R. No. 165881 - Villamaria, Jr. vs. Court of Appeals

Oscar Villamaria, Jr. — owner of Villamaria Motors, a sole proprietorship engaged in assembling passenger jeepneys and holder of a public utility franchise for the Baclaran-Sucat route.
Jerry V. Bustamante — driver who operated jeepney Plate No. PVU-660 under Villamaria Motors.

By 1995, Villamaria ceased assembling jeepneys and retained nine units, four of which he operated by employing drivers on a *boundary* basis.
Bustamante initially remitted P450.00 per day as *boundary* and kept the surplus as his compensation.

Parties executed a contract titled “Kasunduan ng Bilihan ng Sasakyan sa Pamamagitan ng Boundary-Hulog” over jeepney PVU-660 (Chassis EVER95-38168-C; Motor SL-26647).
Agreed terms included:

Daily remittance of P550.00 for four years; after full payment Bustamante to become owner while continuing to operate under Villamaria’s franchise.
Downpayment of P10,000.00.
If Bustamante failed to pay boundary-hulog for three days, Villamaria Motors could hold the vehicle until arrears plus P50.00 daily penalty were paid.
Failure to remit daily boundary-hulog for one week would render the Kasunduan void and require return of vehicle to Villamaria Motors.
Restrictions and controls: prior authority required to drive, vehicle use limited to transporting passengers, display of ID card on windshield, fines for noncompliance charged to driver, repair/parts responsibilities for negligence, requirement to notify Villamaria before repairs or provincial leases, dress and conduct standards, attendance at meetings.
Additional obligations: payment of annual registration and comprehensive insurance premiums; upkeep and maintenance rules.

Bustamante continued remitting P550.00 daily and driving under Villamaria’s supervision.
Bustamante allegedly failed to pay annual registration fees; Villamaria allowed continued operation.
In 1999 several drivers, including Bustamante, allegedly defaulted on boundary-hulog; Villamaria issued a “Paalala” warning enforcement of paragraph 13 (one-week default leads to automatic return of vehicle).
On July 24, 2000, Villamaria took back the jeepney and barred Bustamante from driving it.
Bustamante alleged events including an engine replacement involving a seized engine, arrest and confiscation of his driver’s license, police negotiations preventing impoundment, and that Villamaria demanded P70,000.00 to return the jeepney.

August 15, 2000 — Bustamante filed a Complaint for Illegal Dismissal against Petitioner and his wife.
Bustamante’s claims sought: reinstatement and execution of Deed of Sale for PUJ PVU-660; backwages at P400.00 per day from July 24, 2000 until actual reinstatement; return of P10,000.00 and P180,000.00 for repairs; refund of P100.00 per day from August 7, 1997 to June 2000 (P91,200.00); moral and exemplary damages; attorney’s fees.
Petitioners’ Position Paper admitted the Kasunduan but alleged Bustamante failed to pay the P10,000.00 downpayment, yearly registration fees, and later stopped remitting P550.00; alleged unauthorized provincial trip, accident, confiscation of plate, abandonment at a gasoline station, and damage to vehicle.

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Whether petitioner’s recourse to a special civil action of certiorari under Rule 65, Rules of Court, was proper instead of a petition for review under Rule 45, Rules of Court.
Whether the Court should dismiss the petition for procedural lapse or treat the Rule 65 petition as one under Rule 45 and proceed to the merits.

Whether the Kasunduan implementing a *boundary-hulog* scheme transformed the employer-employee relationship into a pure vendor-vendee relationship, thereby ousting the Labor Arbiter’s jurisdiction.
Whether the Labor Arbiter and the NLRC had exclusive jurisdiction under Article 217, Labo...(Subscriber-Only)

Ruling:

(Subscriber-Only)

Ratio:

(Subscriber-Only)

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