Title
Var-Orient Shipping Co., Inc. vs. Achacoso
Case
G.R. No. 81805
Decision Date
May 31, 1988
Petitioners alleged crew contract violations, leading to vessel interdiction. POEA dismissed case, awarded damages; Supreme Court upheld decision, citing due process fulfillment.

Case Summary (G.R. No. 81805)

Factual Background and Procedural History

The petitioners filed a complaint with the POEA Workers Assistance and Adjudication Office against the private respondents, accusing them of breaching their contracts and causing damage. A hearing was held on March 4, 1987, where the parties agreed to submit position papers and then consider the case submitted for decision. Only the respondents submitted their position papers. On September 9, 1987, the POEA Administrator issued a decision dismissing the case with reprimands and ordering various payments from the petitioners to respondents.

Contents of the POEA Administrator’s Decision

The decision dismissed the case against most respondents with warnings, excluded one individual (Ricardo Llanes), reprimanded the complainant (Var-Orient Shipping Co.) for non-compliance with POEA rules, archived the names of some respondents and placed them on a POEA watchlist, and ordered joint and several payments to the respondents for deductions and attorney’s fees. Specifically, Edgar T. Bunyog was awarded payment for unserved salaries and attorney’s fees.

Service of Decision and Petitioners’ Knowledge

The decision was purportedly served by registered mail to petitioners' former counsel, Attorney Francisco B. Figura, on September 21, 1987. However, Attorney Figura contended he never received the decision. Petitioners reportedly only learned about the decision when the writ of execution was served on November 20, 1987. Subsequently, through new counsel, they filed a motion to recall the writ of execution on the ground that the decision was not yet final and executory as it had not been received.

Issues Raised by the Petitioners

Petitioners argued: (1) that the issuance of the writ of execution was premature without formal receipt of the decision; (2) denial of due process because the decision was rendered without a formal hearing; (3) the denial of their right to appeal; and (4) the award of damages was excessive and unfounded.

Court’s Ruling on Service and Finality of Decision

The Court found petitioners’ claim that they did not receive the decision unconvincing, as the registered mail was delivered to the counsel’s office receptionist and no affidavit was submitted from the receptionist to clarify the handling of the decision. The Court held that service was proper and the decision therefore final and executory. The denial of their urgent motion to recall the writ of execution was justified.

Court’s Analysis on Due Process

The Court emphasized that due process in administrative proceedings requires only an opportunity to be heard or to explain one’s side, or an opportunity to seek reconsideration. The parties agreed at hearing to submit memoranda and then consider the case submitted. While only respondents filed memoranda, petitioners did not oppose motions for resolution and ex

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