Ramos, Dianne Nicole L.

Claim for Death and Funeral Benefits

Agrarian Law and Social Legislation / 2C SSS Law
Case Digest SSS v. AG&P and SEMIRARA
---------------------------------------------------------------------------------------------------------------------------

SOCIAL SECUTIRY SYSTEM v.

ATLANTIC GULF AND PACIFIC COMPANY OF MANILA, INC and SEMIRARA COAL
CORPORATION
G.R. No. 175952, 30 April 2008

FACTS:

Atlantic Gulf and Pacific Company (AG&P) and Semirara Coal Corporation filed a complaint for
specific performance and damages against the SSS. This is because AG&P proposed to pay for
its arrears by installment through dacion en pago. The SSS agreed and appraised the value of a
certain property in Baguio. However, AG&P was not amenable to this. They then made another
proposal, offering as payment a portion of land in Batangas. The SSS then informed the AG&P
that they will be including other companies under the DMCI with the arrears. Hence the payment
of the land was only able to pay for the outstanding delinquencies of SEMRARA. After such
payment, the member-employees of both companies were restored.

However, when AG&P submitted its Deed of Assignment with the SSS, it took the latter over a
year to approve the same. And once approved, the deed had ballooned to a higher amount due
to additional interests and penalty charges on the outstanding obligations. The AG&P then
sought that they should not be made to pay such additional charges, given that it was the
approval of the deed, which amounted to them. The SSS filed for the dismissal of AG&P’s
complaint for lack of jurisdiction. The SSC ruled in favor of the SSS, sating that the commission
had no jurisdiction over the case. The case was brought up to the CA, which reversed the
decision. Hence, this appeal.

ISSUE:

Whether or not the SSC has jurisdiction over the issue in the case at bar.

RULING:

No. What determines the nature of the action as well as the tribunal or body, which has
jurisdiction over the case, are the allegations in the complaint. The SSC has jurisdiction over
“disputes arising under this Act with respect to coverage, benefits, contribution, and penalties
thereon or ay matter related thereto”. A dispute is a conflict or a controversy.
In the case at bar, there is no longer any dispute with respect to respondent’s accountability to
the SSS. The respondents filed a suit to obtain its enforcement, which is doubtless, a suit for
specific performance and one incapable of pecuniary estimation beyond the competence of the
commission. Hence, the case must be tried at the trial courts.

DISPOSITION:

In fine, the Court finds the decision of the Court of Appeals in accord with law and
jurisprudence. WHEREFORE, the petition is DENIED.