Case Summary (G.R. No. 119903)
Procedural History
On December 12, 1973, Europhil Industries filed Civil Case No. 92744 in the Court of First Instance of Manila for trespass, resulting in a June 28, 1974 judgment awarding P10,000 actual, P5,000 moral, and P5,000 exemplary damages. After that decision became final, a garnishment notice issued August 1, 1975. Gaa’s motion to lift garnishment under Article 1708 of the New Civil Code was denied November 7, 1975, and on reconsideration. On March 30, 1976, the Court of Appeals dismissed her petition for certiorari. Gaa then filed a petition for review on certiorari in the Supreme Court.
Facts
Europhil Industries alleged Gaa cut its electricity supply and removed its name from building directories and gate passes. Once Europhil’s judgment became executory, Gaa’s salary and commissions from El Grande Hotel were garnished. She asserted exemption under Article 1708 of the New Civil Code, which shields a laborer’s wages from attachment.
Applicable Law
1973 Constitution
New Civil Code, Article 1708: “The laborer’s wage shall not be subject to execution or attachment, except for debts incurred for food, shelter, clothing and medical attendance.”
Issue
Do Gaa’s salary, commission, and other remuneration constitute exempt “laborer’s wages” under Article 1708 of the New Civil Code?
Court of Appeals Decision
The appellate court held that Article 1708 protects only the wages of rank-and-file laborers engaged in manual work. It interpreted “wages” (jornal) as pay for manual labor paid at stated intervals, distinguishing it from “salary,” which implies compensation for higher‐grade, nonmanual services, such as managerial duties.
Supreme Court Analysis
The Supreme Court agreed that, although “laborer” broadly covers all who work, exemption statutes employ the term in its popular sense—that is, those performing manual toil and relying on daily wages for immediate support. It surveyed American and foreign cases defining “laborer” and “wages” narrowly
...continue readingCase Syllabus (G.R. No. 119903)
Facts
- Europhil Industries Corporation was a tenant in the Trinity Building, T.M. Kalaw Street, Manila.
- Rosario A. Gaa served as building administrator of Trinity Building.
- On December 12, 1973, Europhil Industries filed Civil Case No. 92744 in the Court of First Instance of Manila for damages, alleging trespass by cutting electricity and removing its name from building directory and gate passes.
- On June 28, 1974, the CFI rendered judgment in favor of Europhil, awarding P10,000.00 actual damages, P5,000.00 moral damages, P5,000.00 exemplary damages, plus costs.
- After finality of judgment, a writ of garnishment was issued; Deputy Sheriff Cesar A. Roxas served notice on August 1, 1975 upon El Grande Hotel garnishing petitioner’s salary, commission, and/or remuneration.
Procedural History
- November 7, 1975: CFI denied petitioner’s motion to lift garnishment, ruling Article 1708 exemption inapplicable.
- Motion for reconsideration before the CFI was likewise denied.
- January 26, 1976: Petitioner filed a petition for certiorari before the Court of Appeals to annul the CFI’s November 7, 1975 order.
- March 30, 1976: Court of Appeals dismissed the certiorari petition, upholding the CFI’s ruling.
Issue
- Whether petitioner’s “salaries, commission and/or remuneration” are exempt from execution or attachment under Article 1708 of the New Civil Code.
Relevant Law (Article 1708, New Civil Code)
- “The laborer’s wage shall not be subject to execution or attachment, except for debts incurred