Borra v. CA
Borra v. CA
Borra v. CA
SUPREME COURT
Manila
THIRD DIVISION
G.R. No. 167484
September 9, 2013
The Court of Appeals committed no reversible error. The two cases in question indeed
involved different causes of action. The previous case of "Humphrey Perez vs. Hawaiian
Philippine Company" concerned a money claim and pertained to the years 1987 up until
1995. During that period, private respondents were engaged by contractor Jose
Castillon to work for petitioner at its warehouse. It would appear that the finding of the
Labor Arbiter, to the effect that no employer-employee relationship existed between
petitioner and private respondents, was largely predicated on the absence of privity
between them. The complaint for confirmation of employment, however, was filed by
private respondents on 12 September 1997, by which time, Jose Castillon was no
longer the contractor. The Court of Appeals came out with these findings; viz.:
At first glance, it would appear that the case at bench is indeed barred by Labor Arbiter
Drilons findings since both petitioner and private respondents are parties in Perez and
the issue of employer-employee relationship was finally resolved therein.
However, the factual milieu of the Perez case covered the period November 1987 to
April 6, 1995 (date of filing of the complaint), during which time private respondents, by
their own admission, were engaged by Castillon to work at petitioners warehouse.
In contrast, the instant case was filed on September 12, 1997, by which time, the
contractor involved was Fela Contractor; and private respondents prayer is for
confirmation of their status as regular employees of petitioner.
Stated differently, Perez pertains to private respondents employment from 1987 to
1995, while the instant case covers a different (subsequent) period. Moreover, in Perez,
the finding that no employer-employee relationship existed between petitioner and
private respondents was premised on absence of privity between Castillon and
petitioner. Consequently, Perez and the instant case involve different subject matters
and causes of action.
On the other hand, resolution of the case at bench would hinge on the nature of the
relationship between petitioner and Fela Contractor. In other words, private
respondents action for declaration as regular employees of petitioner will not succeed
unless it is established that Fela Contractor is merely a "labor-only" contractor and that
petitioner is their real employer.
Indeed, it is pure conjecture to conclude that the circumstances obtaining in Perez
subsisted until the filing of the case at bench as there is no evidence supporting such
conclusion. There is, as yet, no showing that Fela Contractor merely stepped into the
shoes of Castillon. Neither has Fela Contractors real principal been shown: petitioner or
the sugar traders/planters?
Private respondent then filed a petition for certiorari and prohibition with the CA
assailing the August 12, 2003 Order of the Labor Arbiter.
On June 22, 2004, the CA rendered its questioned Decision, the dispositive portion of
which reads, thus:
WHEREFORE, foregoing premises considered, the petition is GRANTED. Accordingly,
the Order dated August 12, 2003 of public respondent is hereby ANNULLED and SET
ASIDE. RAB Case No. 09-10698-97 is ordered DISMISSED.
SO ORDERED.15
Petitioners filed a Motion for Reconsideration, but the CA denied it in its
Resolution16 dated January 14, 2005.
Hence, the present petition for certiorari based on the following grounds:
I. THE COURT OF APPEALS ACTED ABSOLUTELY WITHOUTANY
JURISDICTION WHEN IT TOOK COGNIZANCE OF THE 2nd PETITION OF
HPCO DESPITE THE ABSOLUTE LACK OF ANYINTERVENING OR
SUPERVENING EVENT THAT WOULD RENDER THE ORDERS OF THE
SUPREME COURT AND COURT OFAPPEALS INAPPLICABLE AND THE
CLEAR AND ESTABLISHEDDECISION LAID DOWN BY THE FIRST DIVISION
OF THE SUPREME COURT UNDER CHIEF JUSTICE HILARIO G. DAVIDE,JR.,
ASSOCIATE JUSTICES JOSE C. VITUG, CONSUELO YNARES-SANTIAGO,
ANTONIO T. CARPIO, AND ADOLFO S. AZCUNA ANDBY THE COURT OF
APPEALS UNDER JUSTICES EDGARDO P.CRUZ, RAMON MABUTAS, JR.,
ROBERTO A. BARRIOS, MA.ALICIA AUSTRIA-MARTINEZ AND HILARION L.
AQUINO,RULING THAT FURTHER HEARINGS AND TRIAL MUST
BECONDUCTED BY THE LABOR ARBITER WHICH SIGNIFICANTLYFOUND
THE EXISTENCE OF EMPLOYER-EMPLOYEERELATIONSHIP IN HIS
DECISION DATED SEPTEMBER 25, 2003.
II. THE COURT OF APPEALS HAD SERIOUSLY ERRED, IF NOTGRAVELY
ABUSED ITS DISCRETION WHEN IT CHOSE TODELIBERATELY IGNORE
AND/OR ENTIRELY DISREGARD THECLEAR AND ESTABLISHED FACTS ON
x x x The NLRC rule proscribing appeal from a denial of a motion to dismiss is similar to
the general rule observed in civil procedure that an order denying a motion to dismiss is
interlocutory and, hence, not appealable until final judgment or order is rendered. The
remedy of the aggrieved party in case of denial of the motion to dismiss is to file an
answer and interpose, as a defense or defenses, the ground or grounds relied upon in
the motion to dismiss, proceed to trial and, in case of adverse judgment, to elevate the
entire case by appeal in due course. In order to avail of the extraordinary writ of
certiorari, it is incumbent upon petitioner to establish that the denial of the motion to
dismiss was tainted with grave abuse of discretion. 21
In this regard, Rule 41 of the Rules of Court, which is applied in a suppletory character
to cases covered by the NLRC Rules, provides that in all the instances enumerated
under the said Rule, where the judgment or final order is not appealable, the aggrieved
party may file an appropriate special civil action under Rule 65. 22 Thus, this Court has
held that when the denial of a motion to dismiss is tainted with grave abuse of
discretion, the grant of the extraordinary remedy of certiorari may be justified. 23 On the
basis of the foregoing, it is clear that the CA has jurisdiction over the special civil action
for certiorari filed by private respondent as the latter was able to allege and establish
that the denial of its motion to dismiss was tainted with grave abuse of discretion.
Petitioners are wrong to argue that this Court's directive in G.R. No. 151801 to remand
RAB Case No. 06-09-10698-97 to the Labor Arbiter for further proceedings deprives the
CA of its jurisdiction over private respondent's petition for certiorari. The essence of this
Court's ruling in G.R. No. 151801 is simply to require resolution of the factual issue of
whether or not Fela Contractor has stepped into the shoes of Castillon and, thus, has
taken petitioners in its employ. In other words, this Court called for a prior determination
as to who is the real employer of petitioners. This issue, however, was already settled
as will be discussed below.
At the outset, the underlying question which has to be resolved in both RAB Case Nos.
06-09-10698-97 and 06-09-10699-97, before any other issue in these cases could be
determined, is the matter of determining petitioners' real employer. Is it Fela Contractor,
or is it private respondent? Indeed, the tribunals and courts cannot proceed to decide
whether or not petitioners should be considered regular employees, and are thus
entitled to the benefits they claim, if there is a prior finding that they are, in the first
place, not employees of private respondent. Stated differently, and as correctly held by
the CA, petitioners' prayer for regularization in RAB Case No. 06-09-10698-97 is
essentially dependent on the existence of employer-employee relations between them
and private respondent, because one cannot be made a regular employee of one who is
not his employer. In the same vein, petitioners' prayer in RAB Case No. 06-09-10699-97
for the recovery of backwages,13th month pay, holiday pay and service incentive leave
pay from private respondent likewise rests on the determination of whether or not the
former are, indeed, employees of the latter.
As earlier mentioned, this issue has already been settled. In the already final and
executory decision of the Labor Arbiter in RAB Case No.06-09-10699-97, it was ruled
therein that no employer-employee relationship exists between private respondent and
petitioners because the latter's real employer is Fela Contractor. Thus, insofar as the
question of employer and employee relations between private respondent and
petitioners is concerned, the final judgment in RAB Case No. 06-09-10699-97 has the
effect and authority of res judicata by conclusiveness of judgment.
Discussing the concept of res judicata, this Court held in Antonio v.Sayman Vda. de
Monje24
that:
x x x Res judicata is defined as "a matter adjudged; a thing judicially acted upon or
decided; a thing or matter settled by judgment." According to the doctrine of res judicata,
an existing final judgment or decree rendered on the merits, and without fraud or
collusion, by a court of competent jurisdiction, upon any matter within its jurisdiction, is
conclusive of the rights of the parties or their privies, in all other actions or suits in the
same or any other judicial tribunal of concurrent jurisdiction on the points and matters in
issue in the first suit. To state simply, a final judgment or decree on the merits by a court
of competent jurisdiction is conclusive of the rights of the parties or their privies in all
later suits on all points and matters determined in the former suit.
The principle of res judicata is applicable by way of (1) "bar by prior judgment" and (2)
"conclusiveness of judgment." This Court had occasion to explain the difference
between these two aspects of res judicata as follows:
There is "bar by prior judgment" when, as between the first case where the judgment
was rendered and the second case that is sought to be barred, there is identity of
parties, subject matter, and causes of action. In this instance, the judgment in the first
case constitutes an absolute bar to the second action. Otherwise put, the judgment or
decree of the court of competent jurisdiction on the merits concludes the litigation
between the parties, as well as their privies, and constitutes a bar to a new action or suit
involving the same cause of action before the same or other tribunal.
But where there is identity of parties in the first and second cases, but no identity of
causes of action, the first judgment is conclusive only as to those matters actually and
directly controverted and determined and not as to matters merely involved therein. This
is the concept of res judicata known as "conclusiveness of judgment." Stated differently,
any right, fact or matter in issue directly adjudicated or necessarily involved in the
determination of an action before a competent court in which judgment is rendered on
the merits is conclusively settled by the judgment therein and cannot again be litigated
between the parties and their privies whether or not the claim, demand, purpose, or
subject matter of the two actions is the same.1wphi1
having been finally resolved (where the ground for dismissal is res judicata); and (3) by
filing multiple cases based on the same cause of action but with different prayers
(splitting of causes of action, where the ground for dismissal is also either litis pendentia
or res judicata).
More particularly, the elements of forum-shopping are: (a) identity of parties or at least
such parties that represent the same interests in both actions; (b) identity of rights
asserted and reliefs prayed for, the relief being founded on the same facts; (c) identity of
the two preceding particulars, such that any judgment rendered in the other action will,
regardless of which party is successful, amount to res judicata in the action under
consideration.27
In the instant case, there can be no forum shopping, because the grounds cited by
private respondent in its motions to dismiss filed in 1998and in the present case are
different. In 1998, the motion to dismiss is based on the argument that the final and
executory decision in the
Perez case serves as res judicata and, thus, bars the re-litigation of the issue of
employer-employee relations between private respondent and petitioners. In the instant
case, private respondent again cites res judicata as a ground for its motion to dismiss.
This time, however, the basis for such ground is not Perez but the final and executory
decision in RAB Case No. 06-09-10699-97. Thus, the relief prayed for in private
respondent's motion to dismiss subject of the instant case is founded on totally different
facts and issues.
As a final note, this Court cannot help but call the attention of the Labor Arbiter
regarding Our observation that the resolution of RAB Case No. 06-09-10698-97 has
been unnecessarily pending for almost sixteen (16)years now. The resulting delay in the
resolution of the instant case could have been avoided had the Labor Arbiter granted
private respondent's Motion to Consolidate RAB Case Nos. 06-09-10698-97 and 06-0910699-97. This Court quotes with approval the contention of private respondent in its
Motion, to wit:
3. That in light of the fact that the question as to whether or not there exists employeremployee relations as between complainants [herein petitioners] and herein respondent
HPCO will indispensably have to be resolved in light of the presence of an independent
contractor (FELA Contractors) in RAB Case No. 06-09-10699-97 which should
otherwise be determinative of the issue involved in the present suit it should only be
logical and proper that for purposes of abating separate and inconsistent verdicts by two
distinct arbitration salas of this Commission that the present suit be accordingly
consolidated for joint hearing and resolution with said RAB Case No. 06-09-10699-97 x
x x.28
Under Section 3, Rule IV of the then prevailing, as well as in the presently existing,
NLRC Rules of Procedure, it is clearly provided that:
Section 3. Consolidation of Cases. Where there are two or more cases pending
before different Labor Arbiters in the same Regional Arbitration Branch involving the
same employer and issues, or the same parties and different issues, whenever
practicable, the subsequent easels shall be consolidated with the first to avoid
unnecessary costs or delay. x x x
In the same manner, Section 1, Rule 31 of the 1997 Rules of Civil Procedure, allows
consolidation, thus:
SECTION 1. Consolidation. When actions involving a common question of law or fact
are pending before the court, it may order a joint hearing or trial of any or all the matters
in issue in the actions; it may order all the actions consolidated; and it may make such
orders concerning
Proceedings therein as may tend to avoid unnecessary costs or delay.
Considering that the above mentioned cases involved essentially the same parties and
the basic issue of employer-employee relations between private respondent and
petitioners, the Labor Arbiter should have been more circumspect and should have
allowed the cases to be consolidated. This would be in consonance with the parties'
constitutional right to a speedy disposition of cases as well as in keeping with the
orderly and efficient disposition of cases.
WHEREFORE, the petition is DISMISSED. The assailed Decision and Resolutions of
the Court of Appeals in CA-G.R. SP No. 78729 are AFFIRMED.
SO ORDERED.