Title
Jimmy S. Gallego vs. Wallem Maritime Services, Inc., Reginaldo Oben and/or Scandic Ship Management, Ltd.
Case
G.R. No. 216440
Decision Date
Feb 19, 2020
Seafarer Jimmy Gallego was illegally dismissed after premature repatriation and failure to redeploy, with the Supreme Court ruling in his favor, awarding damages and unpaid wages.

Case Summary (G.R. No. 216440)

Factual Background

Jimmy S. Gallego, a Marine Engineer, was contracted by Wallem Maritime Services, Inc. starting in 1981, with a specific contract for the M/V Eastern Falcon from December 1999 to December 10, 2000. He was repatriated on August 4, 2000, before the contract's end, ostensibly due to the vessel's sale to another shipping company. After his repatriation, Gallego sought re-engagement multiple times, but the assurances from WALLEM led him to file a complaint for illegal dismissal and non-payment of salaries and benefits on July 1, 2004.

Claims and Defenses

Gallego contended that his termination was void due to a lack of valid cause and failure of WALLEM to comply with procedural requirements under labor law. In contrast, WALLEM argued that the termination was valid due to the sale of the M/V Eastern Falcon and maintained that Gallego's claims had lapsed since he filed the complaint beyond the three-year prescriptive period established by the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC).

NLRC and Court of Appeals Decisions

Initially, the Labor Arbiter ruled in Gallego's favor, declaring his dismissal illegal and ordering reinstatement plus payment of wages and damages. However, upon appeal, the NLRC reversed this decision, citing prescription of the complaint. Gallego then sought a remedy via a petition for certiorari to the Court of Appeals (CA), which initially ruled in his favor, but the CA later issued an Amended Decision dismissing Gallego's petition due to procedural deficiencies, such as the alleged lack of jurisdiction over the respondents.

Supreme Court Ruling on Jurisdiction and Procedural Errors

The Supreme Court ruled that the procedural lapses cited by the CA regarding lack of jurisdiction over the respondents were unfounded. The Court asserted that Gallego had complied with the necessary procedural requirements and that there was no evidence to support the claim that the respondents had not been properly notified. Under the principles of equity, it was determined that procedural rules should not impede justice, recognizing Gallego's efforts in pursuing his claims.

Employment Contract Validity and Dismissal

The Supreme Court clarified that for dismissal to be valid under the POEA-SEC, proper procedures and notifications must be followed. Respondents purportedly failed to notify Gallego of the termination due to the vessel's sale and did not fulfill their obligations regarding his rights to monetary benefits or re-employment on another vessel, leading the Court to affirm that Gallego was illegally dismissed.

Monetary Awards and Damages

While the Labor Arbiter had awarded Gallego extensive back wages and damages, the Supreme Court modified this awar

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