Title
Ortiz vs. San Miguel Corporation
Case
G.R. No. 151983-84
Decision Date
Jul 31, 2008
A lawyer sought additional attorney’s fees based on original NLRC awards after clients settled labor claims with SMC; SC denied, citing reduced settlements and lack of real party interest.

Case Summary (G.R. No. 151983-84)

Case Background

The case arises from two sets of complaints filed in 1992 and 1993 by employees from San Miguel Corporation’s Sales Offices in the provinces over issues such as illegal dismissal, underpayment of salaries, and non-payment of benefits. The complaints were consolidated into two major cases: NLRC Case No. V-0255-94 (Aguirre Cases) and NLRC Case No. V-0068-95 (Toquero Case). Labor Arbiter Reynaldo J. Gulmatico initially found the complainants in the Aguirre Cases to have been illegally dismissed and ordered reinstatement along with specific monetary awards, including attorney's fees.

NLRC Decisions

Both Aguirre and Toquero Cases were appealed to the National Labor Relations Commission (NLRC) after the complainants were unsatisfied with certain aspects of the Labor Arbiter’s decisions. The NLRC upheld the Labor Arbiter’s finding of illegal dismissal in both cases but modified the awards, including additional monetary compensation and adjusting previous amounts awarded based on various factors.

Appeal to the Court of Appeals

San Miguel Corporation subsequently appealed the NLRC’s decisions to the Court of Appeals, which affirmed the NLRC's findings but dismissed claims from complainants who executed Deeds of Release, Waiver, and Quitclaim in favor of the private respondent. The petitioner, Ortiz, represented only the remaining complainant, Alfredo Gadian Jr., who did not sign such a deed.

Petitioner’s Claims

The primary issue brought forward by Ortiz was the failure of the Court of Appeals to award attorney's fees equivalent to 10% of the monetary judgments granted by the NLRC. Ortiz claimed entitlement to these additional fees despite the signed settlements of the other complainants, asserting that these settlements were executed without his conformity.

Legal Considerations on Attorney’s Fees

The Court highlighted that attorney's fees under Article 111 of the Labor Code are typically awarded as indemnity for damages and are connected to the wages recovered by the complainants. The petitioner argued that he deserved fees based on the total awards given by the NLRC; however, the Court ruled otherwise, noting that the fees paid to Ortiz were contingent upon the amounts agreed upon in the Deeds of Release signed by the complainants.

Decision and Rationale

The Court ultimately denied Ortiz’s petition for review, stating that he w

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