Warlito Dumalaog filed a complaint against J-Phil Marine and others for unpaid wages and damages from injuries sustained while working as a cook aboard vessels. The labor arbiter dismissed the complaint for lack of merit but the NLRC awarded Dumalaog $50,000 for disability benefits. During the pending case, Dumalaog entered into a compromise agreement with the defendants against the advice of his counsel, signing a quitclaim release for P450,000. The Court upheld the validity of the compromise as Dumalaog had the right to settle without his lawyer's consent.
Warlito Dumalaog filed a complaint against J-Phil Marine and others for unpaid wages and damages from injuries sustained while working as a cook aboard vessels. The labor arbiter dismissed the complaint for lack of merit but the NLRC awarded Dumalaog $50,000 for disability benefits. During the pending case, Dumalaog entered into a compromise agreement with the defendants against the advice of his counsel, signing a quitclaim release for P450,000. The Court upheld the validity of the compromise as Dumalaog had the right to settle without his lawyer's consent.
Warlito Dumalaog filed a complaint against J-Phil Marine and others for unpaid wages and damages from injuries sustained while working as a cook aboard vessels. The labor arbiter dismissed the complaint for lack of merit but the NLRC awarded Dumalaog $50,000 for disability benefits. During the pending case, Dumalaog entered into a compromise agreement with the defendants against the advice of his counsel, signing a quitclaim release for P450,000. The Court upheld the validity of the compromise as Dumalaog had the right to settle without his lawyer's consent.
Warlito Dumalaog filed a complaint against J-Phil Marine and others for unpaid wages and damages from injuries sustained while working as a cook aboard vessels. The labor arbiter dismissed the complaint for lack of merit but the NLRC awarded Dumalaog $50,000 for disability benefits. During the pending case, Dumalaog entered into a compromise agreement with the defendants against the advice of his counsel, signing a quitclaim release for P450,000. The Court upheld the validity of the compromise as Dumalaog had the right to settle without his lawyer's consent.
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J-PHIL MARINE VS.
NLRC
FACTS: Warlito E. Dumalaog (respondent), who served as cook aboard vessels
plying overseas, filed on before the NLRC a pro-forma complaint against petitioners manning agency J-Phil Marine, Inc. (J-Phil), its then president Jesus Candava, and its foreign principal Norman Shipping Services for unpaid money claims, moral and exemplary damages, and attorneys fees. Respondent thereafter filed two amended pro forma complaints praying for the award of overtime pay, vacation leave pay, sick leave pay, and disability/medical benefits, he having, by his claim, contracted enlargement of the heart and severe thyroid enlargement in the discharge of his duties as cook which rendered him disabled. Respondents total claim against petitioners was P864,343.30 plus P117,557.60 representing interest and P195,928.66 representing attorneys fees Labor Arbiter Fe Superiaso-Cellan dismissed respondents complaint for lack of merit. the NLRC, by Decision of September 27, 2004, reversed the Labor Arbiters decision and awarded US$50,000.00 disability benefit to respondent. It dismissed respondents other claims, however, for lack of basis or jurisdiction. During the pendency of the case before this Court, respondent, against the advice of his counsel, entered into a compromise agreement with petitioners. He thereupon signed a Quitclaim and Release subscribed and sworn to before the Labor Arbiter. The parties having forged a compromise agreement as respondent in fact has executed a Quitclaim and Release, the Court dismisses the petition. ISSUE: W/N the compromise was validly effected? HELD: Yes! bears noting that, as reflected earlier, the Quitclaim and Waiver was subscribed and sworn to before the Labor Arbiter. Respondents counsel nevertheless argues that [t]he amount of Four Hundred Fifty Thousand Pesos (P450,000.00) given to respondent on April 4, 2007, as full and final settlement of judgment award, is unconscionably low, and un-[C]hristian, to say the least. Only respondent, however, can impugn the consideration of the compromise as being unconscionable. The relation of attorney and client is in many respects one of agency, and the general rules of agency apply to such relation.The acts of an agent are deemed the acts of the principal only if the agent acts within the scope of his authority. The circumstances of this case indicate that respondents counsel is acting beyond the scope of his authority in questioning the compromise agreement. That a client has undoubtedly the right to compromise a suit without the intervention of his lawyer cannot be gainsaid, the only qualification being that if such compromise is entered into with the intent of defrauding the lawyer of the fees justly due him, the compromise must be subject to the said fees.