Title
Telephone Engineering and Service Co., Inc. vs. Workmen's Compensation Commission
Case
G.R. No. L-28694
Decision Date
May 13, 1981
TESCO contested liability for a deceased employee's death benefits, denied employer-employee relationship, but was estopped due to prior admission and failure to exhaust remedies.

Case Summary (G.R. No. L-28694)

Factual Background

Pacifico L. Gatus was employed by UMACOR as a Purchasing Agent and was detailed to TESCO from May 16, 1965, until his return to UMACOR on August 1, 1965. He contracted an illness on January 13, 1967, returning to work briefly before his death on July 14, 1967, from liver cirrhosis with malignant degeneration. His widow, Leonila S. Gatus, filed a claim for compensation alleging that the illness was work-related while he was employed at TESCO.

Procedural History

The Workmen’s Compensation Section of the Quezon City office rendered an award in favor of the Gatus heirs on October 6, 1967, ordering TESCO to pay death benefits and burial expenses. TESCO's appeal process began with a notification indicating non-conformity to the award by asserting a lack of employer-employee relationship, contending that Gatus was employed by UMACOR, not TESCO.

Key Issues Raised

TESCO raised several critical arguments:

  1. The Workmen’s Compensation Commission lacked jurisdiction to make an award since there was no employer-employee relationship.
  2. The claim of jurisdictional absence should be upheld since jurisdiction cannot be conferred by the parties' actions.
  3. The Supreme Court has jurisdiction to annul the award made by the Commission.

Jurisdictional Concerns

The legal foundation for any compensation claim is the existence of an employer-employee relationship. TESCO's assertion that no such relationship existed with Gatus is viewed as a defense that should have been raised during the proceedings before the Commission. The question of whether Gatus was an employee of TESCO is primarily factual and binding, thereby limiting the Supreme Court's scope of review.

Admission of Employer-Employee Relationship

In prior communications and requests for extensions, TESCO represented itself as the employer of the deceased Gatus. The change in TESCO's position during the petition was recognized as an afterthought, undermining its credibility. Courts maintain the principle that the corporate veil may be pierced when it is used to obstruct justice or evade obligations.

Remedies Available

The petition for Certiorari was deemed prematurely filed as TESCO did not exhaust all procedural remedies available under the Workmen's Compensation rules, namely an appeal to the Commission or a

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