Title
Execution on fake surety bonds upheld
Law
Nlrc En Banc No. 05-13
Decision Date
Oct 9, 2013
The NLRC en banc resolution mandates that execution of final judgments in labor cases shall proceed despite claims of spurious surety bonds by bonding companies, prioritizing the welfare of workers and ensuring they receive their monetary awards.

Q&A (NLRC EN BANC Resolution NO. 05-13)

The appeal bond in labor cases is intended to assure the workers that the monetary award will be paid to them if they finally prevail in the case.

No, refusal by a bonding company on the ground that the surety bond is spurious or fake cannot extinguish its solidary liability nor suspend execution proceedings.

The welfare of the workingmen should be the primordial consideration.

Execution of final judgment against the surety bond shall proceed unless enjoined by a higher court.

No, the resolution mandates that execution of final judgment shall proceed despite claims that the bond is fake, unless a higher court issues an injunction.

It was adopted on October 9, 2013, at Tagaytay City, Philippines.

The resolution was signed by the Chairman Gerardo C. Nograles and various Presiding Commissioners, and attested by Executive Clerk of Court IV, La Elenita F. Cruz.

The resolution implies that execution proceedings against the surety bond must continue regardless of allegations that the bond is spurious, ensuring the enforcement of final awards to workers.

The bonding/surety company may seek an injunction from a higher court to suspend execution, but absence of such injunction means execution must proceed.


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