NAME: Michelle C.

Llaneta-Villamora YEAR/COURSE/SECTION: JD-2A

Case No. 29.

Asia Steel Corporation v. WCC, G.R. No. L-7636, June 27, 1955

ISSUE: Is the act of Mr. Kim of hiring Carbajosa binding upon Asia Steel Corporation on the
payment of compensation demanded by the private respondent.

ARGUMENT OF THE PETITIONER (Asia Steel Corporation): Kim’s act could not bind
the corporation because only President Yu Kong Tiong was authorized to hire
employees for its manufacturing establishment as provided in its by-laws.

ARGUMENT OF THE RESPONDENT (WCC/Carbajosa): Yu Kong Tiong was the

President of Asia Steel Corporation and was remotely managing it from his office in
Manila thru Mr. Kim who was in charge of the factory in Caloocan. Carbajosa was
officially an employee of the petitioner from the time Yu Kong Tiong gave approval to
Mr. Kim to hire Carbajosa as an apprentice. Insofar as Mr. Kim who is the person
actually in charge of the factory represented himself to the private respondent that he
was given authority by the manager to engage the services of the latter it is sufficiently
enough to establish an employer-employee relationship.

SC RULING: Yes, Asia Steel Corporation is bound to pay compensation demanded by the
private respondent.

RATIO: The existence of employer-employee relationship is the legal basis of jurisdiction to

qualify for an indemnity. Its determination is often difficult that is why an apparent
authority was considered enough by the Workmen’s Compensation Law. The contract of
employment should be sustained the moment Mr. Kim, the person-in-charge of the
factory hired Carbajosa

INSTRUCTION LEARNED: