Case Summary (G.R. No. 146641-43)
Background of the Case
On November 7, 1963, the Labor Arbiter of Iloilo City issued a resolution ordering Panay Railways, Inc., as the successor in interest of FIVIDEC Railways, Inc., to reinstate Berty Paluay to his former position, with full back wages from his dismissal on January 1, 1977, at a monthly rate of P1,000. Since no appeal was made against this order, a writ of execution was issued at the request of Paluay. Following this, the sheriff garnished P83,000.00 from Panay Railways deposited at Traders Royal Bank.
Procedural Developments
Subsequently, Paluay filed a motion to compel Traders Royal Bank to deliver the garnished funds to the sheriff. In response, Panay Railways sought to suspend the execution of the judgment and requested a hearing to compute the due amount or to limit the back wages to three years without qualifications. On March 8, 1984, the Labor Arbiter denied this motion. The NLRC upheld this denial on appeal, and the petition escalated to the Supreme Court.
Legal Principles Invoked
The Supreme Court referenced the established principle articulated in Insular Life Assurance Co., Ltd. Employees Association v. Insular Life Assurance Co., Ltd., emphasizing that the amount of back wages awarded to employees should be fixed to a reasonable level without deductions or qualifications, limited to a maximum of three years. The rationale behind this policy is to streamline the process for awarding back wages, safeguarding against the employer's potential dilatory tactics that could deprive employees of their rightful earnings.
Conclusion and Final Ruling
The Supreme Court deter
...continue readingCase Syllabus (G.R. No. 146641-43)
Case Background
- This case concerns a petition for certiorari filed by Panay Railways, Inc. against the National Labor Relations Commission (NLRC) and others.
- The dispute centers around the execution of a judgment that was rendered in favor of Berty Paluay, the private respondent, by the Labor Arbiter of Iloilo City.
- The Labor Arbiter's resolution ordered the reinstatement of Paluay with full back wages from the date of his dismissal on January 1, 1977, amounting to P1,000.00 per month.
Procedural History
- On November 7, 1963, the Labor Arbiter issued a resolution for Paluay's reinstatement and back wages.
- Panay Railways did not appeal this order, after which the Labor Arbiter issued a writ of execution at Paluay's request.
- The sheriff garnished P83,000.00 from a deposit made by Panay Railways with Traders Royal Bank.
- Paluay filed a motion for the bank to release the garnished amount, prompting Panay Railways to seek a halt in the execution of the judgment a