Title
Bank of America vs. Court of Industrial Relations
Case
G.R. No. L-16904
Decision Date
Dec 26, 1963
Bank of America contested CIR jurisdiction over unpaid overtime claims by security guards; SC upheld CIR's authority, citing potential labor unrest.

Case Summary (G.R. No. L-16904)

Jurisdiction and Initial Petition

On May 30, 1959, the Philippine Federation of Labor, which represents the five affected employees (the security guards), filed a petition with the Court of Industrial Relations. The petition sought compensation for unpaid overtime wages, alleging grievances against the bank regarding their refusal to discuss these issues. The Federation asserted violations of the Eight-Hour Labor Law and Republic Act No. 875, which pertains to labor relations and working conditions.

Bank's Motion to Dismiss

On June 9, 1959, the Bank of America filed a motion to dismiss the Federation's petition, arguing that the Court of Industrial Relations lacked jurisdiction. The bank referenced prior jurisprudence to support its position, citing a decision from a related case where jurisdiction was questioned based on the number of represented employees (only five out of over 180).

Federation’s Objection and Legal Precedents

In response, on June 20, 1959, the Federation objected to the motion to dismiss, citing legal precedents that affirmed the court's jurisdiction over cases involving unpaid wages and overtime claims even after the enactment of Republic Act No. 875. The Federation relied on the decisions in NASSCO v. Almin and Gomez v. North Camarines Lumber Co., which reinforced that such claims could be addressed by the Court of Industrial Relations.

Dismissal by the Trial Court

On September 10, 1959, the trial court dismissed the Federation’s petition. The dismissal was based on the determination that the court no longer had the jurisdiction to resolve disputes over unpaid overtime wages following the passage of Republic Act No. 875. The ruling also asserted that while the court had the authority to adjudicate unfair labor practices, the Federation's petition failed to meet necessary legal requirements.

Motion for Reconsideration

Following the dismissal, on September 15, 1959, the Federation sought reconsideration, challenging the dismissal as contrary to law. They requested additional time to submit a memorandum, which they later did on September 22, citing additional legal precedents from earlier court decisions that supported their claim of jurisdiction.

Final Resolution and Affirmation of Jurisdiction

On March 12, 1960, the Court of Industrial Relations upheld its previous decision, asserting that it had jurisdiction over the issue o

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