TOPIC: Separate Juridical Personality

CONCEPT BUILDERS Inc. v NLRC

Facts:

Concept Builders is a construction business company while private respondents are employees by the former as laborers, carpenters and riggers. However, private respondents were terminated by the company on the ground that their contract had already expired. NLRC found that the project for which they were hired was not yet even finished. In addition to this, Concept had to hire subcontractors whose works are the same as private respondents. A writ of execution was issued which was partially satisfied through the garnishment of money from MWSS which is a debtor of Concept and the balance was to be collected from Concept directly. But the sheriff reported that when the writ was to be served the guard on duty refused to acknowledge it on the ground that Concept no longer owned the premises and was now occupied by Hydro Pipes, which had the same Board of Directors as Concept builders. Hence this petition.

Issue:

1. Whether or not concept builders is liable to its employees.

Held:

The veil may be pierced when it its just the alter ego of a person of another corporation. The conditions under which the juridical entity may be disregarded vary according to the peculiar facts and circumstances of each case. No hard and fast rule can be laid down, but there are some probative factors of identity that will justify the application of the doctrine. Summary probative factors: (1) stock membership by one or common ownership of both (2) identity of directors and officers (management) (3) manner of keeping corporate books and records (management) (4) methods of conducting business (management). The same corporate secretary of the petitioners who filed an Information Sheet with the SEC in 1987 stating that its office address is their old

address. Both information sheets were filed by Virgilio Casino. They had the same President, Board of Directors and substantially the same subscribers. Therefore, concept builders is liable to its employees.