Case Digest (G.R. No. 107653)
Facts:
In Benjamin Yu v. National Labor Relations Commission and Jade Mountain Products Company Limited et al. (G.R. No. 97212, June 30, 1993), petitioner Benjamin Yu was engaged as Assistant General Manager of the marble quarry and export operations of the partnership Jade Mountain Products Company Limited, organized on June 28, 1984, by general partners Lea and Rhodora Bendal and limited partners Chiu Shian Jeng, Chen Ho-Fu, and Yu Chang. Hired by Partnership Resolution dated March 14, 1985, Yu received only half of his agreed P4,000 monthly salary, the balance deferred pending additional funds. He managed quarry operations in Bulacan, supervised workers, and handled export documents. In 1988 Lea and Rhodora Bendal and Yu Chang sold their interests to Willy Co and Emmanuel Zapanta, who continued the business under the old name but moved the main office to Mandaluyong. On November 16, 1987, Yu reported for work but was informed by Willy Co that the new partnership would not assume hisCase Digest (G.R. No. 107653)
Facts:
- Formation and nature of employment
- Jade Mountain Products Company Limited (“Jade Mountain”) organized June 28, 1984 as a partnership exploiting a marble deposit in Bulacan, with general partners Lea and Rhodora Bendal and limited partners Chiu Shian Jeng, Chen Ho-Fu, and Yu Chang.
- Partnership office in Makati; entered Memorandum Agreement (June 26, 1984) with landowners Sps. Ricardo and Guillermina Cruz.
- Engagement and duties of petitioner
- By Partnership Resolution (March 14, 1985), Benjamin Yu hired as Assistant General Manager at a P4,000 monthly salary, though received only P2,000 pending additional funds.
- Yu managed quarry operations, supervised workers, prepared export documents, and controlled finances.
- Change of partnership membership and treatment of Yu
- In 1987–1988 original general partners sold interests to Willy Co and Emmanuel Zapanta, transferring 82% of partnership shares and relocating the office to Mandaluyong while retaining the “Jade Mountain” name.
- On November 16, 1987 Yu reported to the new Mandaluyong office; met Willy Co who refused to assume old partnership obligations and barred Yu from work, leaving his unpaid salaries unpaid.
- Administrative proceedings
- December 21, 1988, Yu filed before the Labor Arbiter a complaint for illegal dismissal, recovery of unpaid salaries (Nov 1984–Oct 1988), moral and exemplary damages, and attorney’s fees.
- Labor Arbiter ruled in favor of Yu, ordering reinstatement, backwages, and attorney’s fees.
- On appeal the NLRC (Nov 29, 1990) reversed, finding the new partnership need not absorb old employees and that unpaid wages should be claimed against original partners.
- Petition for certiorari
- Yu elevated the case to the Supreme Court, arguing that partnership’s juridical personality persists despite membership changes and binds successor partnership to employment obligations.
Issues:
- Whether the original partnership was extinguished and replaced by a new partnership consisting of Willy Co and Emmanuel Zapanta.
- If a new partnership exists, whether Yu may enforce his employment contract rights (unpaid salaries, protection against dismissal) against it.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)