Case Summary (G.R. No. 106483)
Petitioner
Ernesto L. Callado, employed by IRRI from April 11, 1983 to December 14, 1990, contested his termination and sought backwages, indemnity pay, moral and exemplary damages, and attorney’s fees for alleged illegal dismissal and suspension.
Respondent
International Rice Research Institute (IRRI), an international agricultural research organization enjoying immunity from legal process under Article 3 of P.D. 1620, which may only be waived expressly by its Director-General or authorized representatives.
Key Dates
• April 11, 1983 – Callado’s employment with IRRI begins.
• February 11, 1990 – Vehicle accident during official trip.
• March 5, 1990 – IRRI preliminary investigation memorandum charging Callado with misconduct.
• March 9, 1990 – Callado’s written answer and defenses submitted.
• December 7, 1990 – IRRI issues Notice of Termination.
• December 19, 1990 – Callado files complaint before the Labor Arbiter.
• January 2, 1991 – IRRI invokes immunity under P.D. 1620 in correspondence to the Labor Arbiter and DOLE Regional Director.
• August 13, 1991 – IRRI issues an order stating it “waives its immunity” in all termination cases.
• October 31, 1991 – Labor Arbiter orders reinstatement and backwages.
• March 20, 1992 – NLRC sets aside the Labor Arbiter’s decision and dismisses the complaint.
Applicable Law
• 1987 Philippine Constitution (given decision date post-1990)
• Presidential Decree No. 1620, Article 3 – grants IRRI immunity from penal, civil, and administrative proceedings, waivable only by an express act of its Director-General or authorized representative.
Facts
- Callado was involved in an accident while driving an IRRI vehicle on official duty.
- IRRI’s Human Resource Development Department investigated and charged him with driving under the influence, serious misconduct for failing to report vehicle trouble, and gross neglect of duties.
- After considering his defenses, IRRI terminated his employment on December 7, 1990.
- Callado filed for illegal dismissal and related reliefs on December 19, 1990.
- IRRI’s counsel informed the Labor Arbiter it enjoyed immunity under P.D. 1620 and had not waived it.
- The Labor Arbiter, citing an August 13, 1991 IRRI order waiving immunity in termination cases, proceeded to rule on the merits, ordering reinstatement and payment of backwages.
- The NLRC reversed, holding IRRI’s immunity intact and dismissing the complaint.
Issue
Whether IRRI effectively waived its immunity from suit when an internal memorandum and subsequent order purported to permit waiver in termination cases.
Ruling
The petition is dismissed. IRRI did not waive its immunity; the Labor Arbiter and NLRC decisions in favor of Callado are set aside.
Reasoning
- P.D. 1620, Article 3 expressly requires an “express waiver by the Director-General or authorized representative” for immunity to be relinquished.
- IRRI’s internal 1983 memorandum merely stated that the Institute “may” waive immunity in certain cases; this permissive language did not constitute an express, binding waiver by the Director-General.
- The 1991 letter by IRR
Case Syllabus (G.R. No. 106483)
Facts of the Case
- Ernesto L. Callado was employed by IRRI as a driver from April 11, 1983 until his termination on December 14, 1990.
- On February 11, 1990, while on an official trip to Ninoy Aquino International Airport and back, Callado was involved in a vehicular accident driving an IRRI vehicle.
- A preliminary investigation was conducted by the IRRI Human Resource Development Department Manager; its findings were communicated to Callado in a Memorandum dated March 5, 1990.
- Based on those findings, IRRI formally charged Callado with:
- Driving an institute vehicle under the influence of liquor during official duty;
- Serious misconduct for failing to report a vehicle battery problem and unnecessarily overstaying in Manila;
- Gross and habitual neglect of duties.
- Callado submitted his written answer and defenses by Memorandum dated March 9, 1990.
- After evaluating all defenses and evidence, IRRI issued a Notice of Termination on December 7, 1990.
- Callado filed a complaint on December 19, 1990 before the Labor Arbiter alleging illegal dismissal, illegal suspension, and claiming indemnity with moral and exemplary damages plus attorney’s fees.
- On January 2, 1991, IRRI, through counsel, informed the Labor Arbiter and the DOLE Regional Director that it enjoyed immunity from suit under Article 3 of P.D. 1620 and had not waived such immunity.
- The Labor Arbiter, relying on an IRRI Order dated August 13, 1991 stating that IRRI waived immunity in termination cases, proceeded to adjudicate the complaint.
- In his decision of October 31, 1991, the Labor Arbiter ordered Callado’s reinstatement without loss of seniority and the payment of full backwages amounting to ₱83,048.75.
- On appeal, the NLRC held that IRRI did not waive its immunity, set aside the Labor Arbiter’s decision, and dismissed Callado’s complaint.
- Callado then filed a petition for certiorari before the Supreme Court, contesting IRRI’s asserted immunity and alleging denial of due process and lack of CIEM referral.
Legal Issue Presented
- Whether IRRI waived its immunity from suit under Presidential Decree No. 1620, Article 3, and thereby subjected itself to the jurisdiction of Philippine labor authorities.
- Whether Callado was denied his