Title
Delfin vs. Inciong
Case
G.R. No. 50661
Decision Date
Dec 10, 1990
Former Atlantic employees alleged unfair labor practices, striking in 1966. CIR ruled in their favor, but Atlantic ceased operations. Petitioners later sued Inland, claiming it was Atlantic's alter ego. SC dismissed the case due to res judicata but allowed piercing the corporate veil to enforce prior judgment.

Case Summary (G.R. No. 50661)

Applicable Law

This case is governed by the Constitution of the Philippines, particularly the provisions concerning labor rights, as well as relevant laws such as Republic Act No. 875, which addresses collective bargaining agreements and unfair labor practices.

Background

In February 1964, a collective bargaining agreement was entered into by Atlantic Container Corporation and the Atlantic Container Employees Organization, which was later amended. Following the alleged refusal by Atlantic and its management to implement the provisions of the agreement, including salary increases and union shop arrangements, the employees organized a strike on February 16, 1966. A complaint was subsequently filed with the Court of Industrial Relations (CIR) alleging unfair labor practices against Atlantic, leading to a decision in 1972 that found the company guilty and ordered the reinstatement of only a limited number of complainants with back wages.

Proceedings and Decisions

After the CIR rendered its decision, the petitioners, believing they were entitled to reinstatement and back wages, filed a second case when they learned that Atlantic Container Corporation had ceased operations. This second complaint alleged that the newly established Inland Industries, Inc. was merely a continuation of Atlantic Container Corporation, organized to evade its labor obligations. However, the National Labor Relations Commission (NLRC) dismissed the petitioners' complaint, citing res judicata, the prescriptive period for claims, and the separate corporate identity of Atlantic and Inland.

Grounds for Dismissal

The NLRC found that the first case resolved issues of unfair labor practice against Atlantic Container Corporation, thus barring the subsequent action for similar claims concerning the same conduct due to the principle of res judicata. This legal principle states that when a final judgment has been rendered on a matter, it cannot be re-litigated. The dismissal also took into consideration that the second case involved a different set of corporate entities, and the petitioners failed to demonstrate that the separate legal status of Inland could be disregarded.

Court's Analysis

The Supreme Court affirmed the NLRC's decision, ruling that the two cases involved identical causes of action, namely the unfair labor practices committed by Atlantic Container Corporation. The Court emphasized that the proper interests of justice required upholding the prior decision for stability and finality in legal proceedings. It reiterated that splitting a cause of act

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