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Sevilla V CA Case Analysis
Sevilla V CA Case Analysis
Sevilla V CA Case Analysis
SEVILLA, petitioners-appellants,
vs.
THE COURT OF APPEALS, TOURIST WORLD SERVICE, INC., ELISEO S.CANILAO, and
SEGUNDINA NOGUERA, respondents-appellees.
Basic Facts: Lina Sevilla co-signed with Tourist World Service for a lease in a property in
Ermita, Manila. She also had an agreement with TWS that everytime she finds a client, the
proceeds of the ticket sold will be shared by her and the company whereas 4% goes to her,
and 3% goes to TWS. She was also designated by TWS as the “branch manager” who shall
manage the branch office in Ermita. After sometime, when TWS has been incurring losses,
TWS was informed that Sevilla has been connected with its rival company. TWS decided that
it will no longer continue business. Because of such, Sevilla was removed as the branch
manager, and was replaced by the secretary, Canilao, to take care of the properties for the
business closure. Canilao went to the branch office and padlocked the premises to “protect
the interest of the business”. Sevilla filed a complaint alleging that her relationship with TWS
is a joint venture, therefore, she shall be part of the decision making of the company,
however, TWS claimed that Sevilla is only an employee. RTC rendered a decision in favor of
TWS, which was then affirmed by the SC. Hence, this petition.
Issue: Whether Sevilla is an employee of Tourist World Service in order to answer other
issues such as: a) if she has a right in business decision making, and b) if she is entitled to
damages for breach of the contract between them.
Held: No. Sevilla is not an employee. There is no uniform test to determine the evidence of an
employer-employee relation, only tests and consideration of existing economic parameters
or conditions depending on each case.
Analysis: Since it has been established by different jurisprudence that there is no exact way of
determining whether there is an employer-employee relationship, the Supreme Court also
considered economic parameters and conditions to help establish such relationship. The
Supreme Court used the control test in this case whereas it was defined as “Where the
person for whom the services are performed reserves a right to control not only the end
to be achieved but also the means to be used in reaching such end." Sevilla is not
controlled by TWS. She gains her clients through her own efforts and that she only shares
part of its proceeds to the company in lieu of the agreement she made with TWS. The
economic conditions used to help the test in this case is Sevilla's title and mode of income
from the company. It has been evidenced that her title as “branch manager” is only for the
sake of appearance and title of dignity. She is also not receiving any salary from TWS for she is
not part of its payroll. As a matter of fact, she is the one bringing profit for the company from
their agreement in the percentage of tickets sold. Thus, she cannot be considered an
employee of TWS.