Title
Pepsi Cola Distributors of the Philippines, Inc. vs. Gal-lang
Case
G.R. No. 89621
Decision Date
Sep 24, 1991
Employees dismissed by Pepsi Cola filed a civil complaint for damages due to alleged malicious prosecution, claiming it was independent of their employment. The Supreme Court ruled the case fell under regular court jurisdiction, not labor arbiter, as it involved tort, not labor relations.

Case Summary (G.R. No. 89621)

Factual Background

The respondents, who were employees of Pepsi Cola, were suspected of involvement in the irregular disposal of empty bottles. On July 16, 1987, the company filed a criminal complaint for theft against them, which was later withdrawn in favor of a complaint for falsification of private documents. Following a preliminary investigation, this second complaint was dismissed on November 26, 1987. Subsequently, on November 23, 1987, the company dismissed the employees, who later filed a complaint for illegal dismissal with the NLRC on December 1, 1987, seeking reinstatement and damages.

Procedural History

Additionally, on April 4, 1988, the respondents initiated a separate civil lawsuit against the petitioners for damages, alleging malicious prosecution. The petitioners sought to dismiss this civil suit, asserting that it fell under the labor arbiter’s jurisdiction due to the employment relationship. Initially, the Regional Trial Court granted the motion to dismiss the civil suit on February 6, 1989, but later reinstated it on July 6, 1989, ruling that it involved distinct issues from the labor dispute.

Jurisdictional Issues

The petitioners based their arguments on Article 217 of the Labor Code, asserting that the respondents' civil complaint should be resolved by a labor arbiter. They referred to the precedent set in Getz Corporation v. Court of Appeals, where the court ruled that a complaint from a terminated employee regarding unpaid salaries was strictly within the purview of labor arbitration. However, the current case does not align with Getz Corporation, as the nature of the claims is fundamentally different from those arising directly from employment disputes.

Nature of Claims

The differentiation between labor claims and civil claims was emphasized by citing several precedents, including Medina v. Castro-Bartolome and Singapore Airlines Ltd. v. Pano, which established that claims of tortious acts or contractual disputes not arising directly from employment relations fall under the jurisdiction of regular courts rather than labor arbiters. The essence of the claim for malicious prosecution, in this case, centers around allegations of bad faith in the filing of criminal charges, which are neither connected to the employment relationship nor typical labor disputes.

Court's Conclusion

The Supreme Court ruled to affirm the order reinstating the complaints in the context of civil jurisdiction, specify

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