Professional Documents
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10-Sameer Overseas Placement Agency, Inc. vs. Cabiles
10-Sameer Overseas Placement Agency, Inc. vs. Cabiles
10-Sameer Overseas Placement Agency, Inc. vs. Cabiles
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* EN BANC.
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barely a month from her first workday. She was also repatriated on
the same day that she was informed of her termination. The
abruptness of the termination negated any finding that she was
properly notified and given the opportunity to be heard. Her
constitutional right to due process of law was violated.
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Act No. 8042 upon promulgation of Republic Act No. 10022 in 2010.
Statutory Construction; Statutes; When a law or a provision of
law is null because it is inconsistent with the Constitution, the
nullity cannot be cured by reincorporation or reenactment of the
same or a similar law or provision.·In the hierarchy of laws, the
Constitution is supreme. No branch or office of the government may
exercise its powers in any manner inconsistent with the
Constitution, regardless
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within the class and those who do not fall within the class.·In
creating laws, the legislature has the power „to make distinctions
and classifications.‰ In exercising such power, it has a wide
discretion. The equal protection clause does not infringe on this
legislative power. A law is void on this basis, only if classifications
are made arbitrarily. There is no violation of the equal protection
clause if the law applies equally to persons within the same class
and if there are reasonable grounds for distinguishing between
those falling within the class and those who do not fall within the
class. A law that does
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June 21, 2013, which revised the interest rate for loan or
forbearance from 12% to 6% in the absence of stipulation, applies in
this case. The pertinent portions of Circular No. 799, Series of 2013,
read: The Monetary Board, in its Resolution No. 796 dated 16 May
2013, approved the following revisions governing the rate of interest
in the absence of stipulation in loan contracts, thereby amending
Section 2 of Circular No. 905, Series of 1982: Section 1. The rate of
interest for the loan or forbearance of any money, goods or credits
and the rate allowed in judgments, in the absence of an express
contract as to such rate of interest, shall be six percent (6%) per
annum. Section 2. In view of the above, Subsection X305.1 of the
Manual of Regulations for Banks and Sections 4305Q.1, 4305S.3
and 4303P.1 of the Manual of Regulations for Non-Bank Financial
Institutions are hereby amended accordingly. This Circular shall
take effect on 1 July 2013.
Same; Same; Loans; Circular No. 799 is applicable only in
loans and forbearance of money, goods, or credits, and in judgments
when there is no stipulation on the applicable interest rate; Circular
No. 799 is not applicable when there is a law that states otherwise.·
Circular No. 799 is applicable only in loans and forbearance of
money, goods, or credits, and in judgments when there is no
stipulation on the applicable interest rate. Further, it is only
applicable if the judgment did not become final and executory before
July 1, 2013. We add that Circular No. 799 is not applicable when
there is a law that states otherwise. While the Bangko Sentral ng
Pilipinas has the power to set or limit interest rates, these interest
rates do not apply when the law provides that a different interest
rate shall be applied. „[A] Central Bank Circular cannot repeal a
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that tend to violate labor law. Lest they risk their reputation or
finances, local agencies must already have mechanisms for
guarding against unscrupulous foreign employers even at the level
prior to overseas employment applications.
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LEONEN, J.:
This case involves an overseas Filipino worker with
shattered dreams. It is our duty, given the facts and the
law, to approximate justice for her.
We are asked to decide a petition for review1 on
certiorari assailing the Court of AppealsÊ decision2 dated
June 27, 2005. This decision partially affirmed the
National Labor Relations CommissionÊs resolution dated
March 31, 2004,3 declaring respondentÊs dismissal illegal,
directing petitioner to pay respondentÊs three-month salary
equivalent to New Taiwan Dollar (NT$) 46,080.00, and
ordering it to reimburse the NT$3,000.00 withheld from
respondent, and pay her NT$300.00 attorneyÊs fees.4
Petitioner, Sameer Overseas Placement Agency, Inc., is a
recruitment and placement agency.5 Responding to an ad it
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Rollo, pp. 3-29.
1
Id., at pp. 32-44.
2
Id., at pp. 125-131.
3
Id., at p. 131.
4
Id., at p. 3.
5
Id., at p. 126.
6
Id., at p. 102.
7
Id.
8
Id.
9
10 Id., at pp. 54 and 102.
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11 Id., at pp. 6-7 and 195-196.
12 Id., at p. 36.
13 Id.
14 Id.
15 Id., at p. 127.
16 Id.
17 Id., at p. 53.
18 Id.
19 Id., at pp. 33, 53 and 54.
20 Id.
21 Id., at p. 11.
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22 Id., at p. 56.
23 Id., at pp. 56 and 62.
24 Id., at p. 57.
25 Id.
26 Id., at p. 107.
27 Id.
28 Id.
29 Id., at p. 108.
30 Id.
31 Id., at pp. 101-112.
32 Id., at pp. 108-110.
33 Id., at p. 110.
34 Id., at pp. 111-112.
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35 Id.
36 Id., at pp. 113-123.
37 Id., at pp. 125-131.
38 Id., at p. 131.
39 Id., at p. 129.
40 Id.
41 Id.
42 Id., at p. 130.
43 Id.
44 Id., at p. 131.
45 Id.
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thus:
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46 Id.
47 Id., at pp. 132-137.
48 Id., at pp. 139-141.
49 Id., at pp. 142-153.
50 Thirteenth Division, decision penned by Associate Justice Renato C.
Dacudao with Associate Justices Edgardo F. Sundiam and Japar B.
Dimaampao, concurring.
51 Rollo, pp. 43-44.
52 Id.
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53 Id.
54 Id., at pp. 3-29.
55 Id., at p. 11.
56 Id.
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57 Id., at pp. 9-11.
58 Leonardo v. National Labor Relations Commission, 389 Phil. 118,
126-127; 333 SCRA 589, 598 (2000) [Per J. De Leon, Jr., Second
Division].
59 Id.
60 Id.
61 San Miguel Corporation v. Ubaldo, G.R. No. 92859, February 1,
1993, 218 SCRA 293, 301 [Per J. Campos, Jr., Second Division].
62 Id.
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First, established is the rule that lex loci contractus (the law of
the place where the contract is made) governs in this
jurisdiction. There is no question that the contract of
employment in this case was perfected here in the
Philippines. Therefore, the Labor Code, its implementing
rules and regulations, and other laws affecting labor apply
in this case. Furthermore, settled is the rule that the courts of
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63 Bascon v. Court of Appeals, 466 Phil. 719, 732; 422 SCRA 122, 133 (2004)
[Per J. Quisumbing, Second Division].
64 Const., Art. XIII, Sec. 3.
65 359 Phil. 955; 299 SCRA 608 (1998) [Per J. Romero, Third Division].
43
the forum will not enforce any foreign claim obnoxious to the
forumÊs public policy. Here in the Philippines, employment
agreements are more than contractual in nature. The Constitution
itself, in Article XIII, Section 3, guarantees the special protection of
workers, to wit:
The State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment and
equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate in policy and
decision-making processes affecting their rights and benefits as
may be provided by law.
....
This public policy should be borne in mind in this case because to
allow foreign employers to determine for and by themselves
whether an overseas contract worker may be dismissed on the
ground of illness would encourage illegal or arbitrary
pretermination of employment contracts.66 (Emphasis supplied,
citation omitted)
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66 Id., at pp. 968-969; pp. 618-619.
67 540 Phil. 65; 511 SCRA 44 (2006) [Per J. Austria-Martinez, First
Division].
44
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68 Id., at pp. 80-81; pp. 60-61.
45
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69 Rollo, p. 11.
70 Hilton Heavy Equipment Corporation v. Dy, G.R. No. 164860,
February 2, 2010, 611 SCRA 329, 338 [Per J. Carpio, Second Division],
citing Dizon v. NLRC, 259 Phil. 523, 529; 180 SCRA 52, 57-58 (1989) [Per
J. Feliciano, Third Division].
71 Skippers United Pacific, Inc. v. National Labor Relations
Commission, 527 Phil. 248, 257; 494 SCRA 661, 667 (2006) [Per J.
Austria-Martinez, First Division].
46
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72 Labor Code, Art. 281; See also TamsonÊs Enterprises, Inc. v. Court
of Appeals, G.R. No. 192881, November 16, 2011, 660 SCRA 374, 383 [Per
J. Mendoza, Third Division].
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73 See Dissenting Opinion of J. Brion in Abbott Laboratories
Philippines v. Alcaraz, G.R. No. 192571, July 23, 2013, 701 SCRA 682,
752 [Per J. Perlas-Bernabe, En Banc]. This ponencia joined J. Brion.
74 Rollo, p. 129.
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II
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75 Skippers United Pacific, Inc. v. Doza, et al., G.R. No. 175558,
February 8, 2012, 665 SCRA 412, 426 [Per J. Carpio, Second Division].
76 Id.
77 Id.
78 Id.
79 Id.
49
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this section shall be paid within four (4) months from the approval
of the settlement by the appropriate authority.
In case of termination of overseas employment without just, valid or
authorized cause as defined by law or contract, the workers shall be
entitled to the full reimbursement of his placement fee with interest
of twelve (12%) per annum, plus his salaries for the unexpired
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portion of his employment contract or for three (3) months for every
year of the unexpired term, whichever is less.
....
(Emphasis supplied)
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80 Rep. Act. No. 8042 (1995), Sec. 15.
51
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81 Article 111. AttorneyÊs Fees.·(a) In cases of unlawful withholding of
wages, the culpable party may be assessed attorneyÊs fees equivalent to
ten percent of the amount of wages recovered.
82 601 Phil. 245; 582 SCRA 254 (2009) [Per J. Austria-Martinez, En
Banc].
83 Rep. Act. No. 8042 (1995), Sec. 10, par. 5.
84 Serrano v. Gallant Maritime Services, Inc., supra at pp. 302 and
304; p. 302.
85 Yap v. Thenamaris ShipÊs Management, G.R. No. 179532, May 30,
2011, 649 SCRA 369, 380 [Per J. Nachura, Second Division].
52
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86 Supra note 75 at p. 430.
55
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87 Const., Art. VIII, Sec. 5(5).
56
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88 Rollo, pp. 266-267.
89 Id., at pp. 309-328.
90 Id., at p. 311.
91 Id.
92 Id.
93 Id., at pp. 364-371.
94 Id., at p. 371.
95 Id., at p. 304.
57
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96 Const., Art. III, Sec. 1. No person shall be deprived of life, liberty,
or property without due process of law, nor shall any person be denied
the equal protection of the laws.
Ichong v. Hernandez, 101 Phil. 1155, 1164 (1957) [Per J. Labrador, En Banc].
97
Id., at p. 1164.
98
Id., at p. 1177.
99
100 Id.
101 Id., at pp. 1164 and 1177.
102 Id., at pp. 1165 and 1177.
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103 Id., at p. 1164.
104 People v. Cayat, 68 Phil. 12, 18 (1939) [Per J. Moran, En Banc].
105 Id., at p. 18.
106 Serrano v. Gallant Maritime Services, Inc., supra note 82 at pp.
294-298; p. 302.
107 Id., at pp. 287-292; p. 283.
108 Id., at pp. 292-294; p. 290.
109 Id., at p. 282; p. 278.
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110 Const., Art. XIII, Sec. 3.
111 Serrano v. Gallant Maritime Services, Inc., supra note 82 at p.
286; p. 302.
112 Id., at pp. 297-298; p. 294.
113 Id., at p. 298; p. 295.
114 Id.
115 Id.
116 Id., at pp. 287-292; p. 292.
117 Id.
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one year: those who are illegally dismissed with less than
one year left in their contracts shall be entitled to their
salaries for the entire unexpired portion thereof, while
those who are illegally dismissed with one year or more
remaining in their contracts shall be covered by the
reinstated clause, and their monetary benefits limited to
their salaries for three months only.‰118
We do not need strict scrutiny to conclude that these
classifications do not rest on any real or substantial
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118 Id., at p. 293; p. 290.
119 Id., at p. 281; p. 308.
120 Id.
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121 Id., at p. 277; p. 272.
122 Id.
123 Id., at pp. 276-277; p. 295.
124 Rep. Act. No. 8042 (1995); See also Rep. Act No. 10022 (2010).
125 Serrano v. Gallant Maritime Services, Inc., supra note 82 at p.
277; p. 316.
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126 See Concurring Opinion of J. Brion in Serrano v. Gallant Maritime
Services, Inc., supra note 82 at pp. 319-321; pp. 319-320.
127 Id., at p. 301; p. 299.
128 Id., at p. 304; p. 302.
64
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129 Supra note 85 at p. 381.
65
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130 G.R. No. 189871, August 13, 2013, 703 SCRA 439 [Per J. Peralta, En
Banc].
66
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131 Id., at pp. 457-458. This court modified the guidelines laid down
in Eastern Shipping Lines v. Court of Appeals, G.R. No. 97412, July 12,
1994, 234 SCRA 78, 97 [Per J. Vitug, En Banc] to embody Bangko
Sentral ng Pilipinas Circular No. 799.
132 Nacar v. Gallery Frames, supra note 130 at p. 457.
133 Id.
67
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134 Palanca v. Court of Appeals, G.R. No. 106685, December 2, 1994,
238 SCRA 593, 601 [Per J. Quiason, En Banc].
135 Maritime Company of the Philippines v. Reparations Commission,
148-B Phil. 65, 70; 40 SCRA 70, 74 (1971) [Per J. Fernando, En Banc].
68
IV
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136 ATCI Overseas Corporation v. Echin, G.R. No. 178551, October 11,
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2010, 632 SCRA 528, 533 [Per J. Carpio-Morales, Third Division], citing
Datuman v. First Cosmopolitan Manpower and Promotion Services, Inc.,
591 Phil. 662, 673; 571 SCRA 41, 52-53 (2008) [Per J. Leonardo-De
Castro, First Division]; Migrant Workers and Overseas Filipinos Act of
1995, Sec. 2(b).
69
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137 Rules of Court, Rule 3, Sec. 7.
138 PH Credit Corporation v. Court of Appeals, 421 Phil. 821, 832; 370
SCRA 155, 165 (2001) [Per J. Panganiban, Third Division].
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139 See also Azucena, Jr., C.A., EveryoneÊs Labor Code, p. 29. (5th ed.,
2007).
70
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140 Id.
71
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141 G.R. No. 93699, September 10, 1993, 226 SCRA 232 [Per J. Cruz,
First Division].
142 Id., at pp. 239-240, also cited in Triple Eight Integrated Services v.
NLRC, 359 Phil. 955, 968; 299 SCRA 608, 618 (1998) [Per J. Romero,
Third Division].
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up and, being so, they remember what their work has cost
them. Twitter accounts, Facetime, and many other gadgets
and online applications will never substitute for their lost
physical presence.
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1 Enacted on June 7, 1995.
2 Enacted on July 8, 2010.
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3 G.R. No. 167614, 601 Phil. 245; 582 SCRA 254 (2009).
4 Id., at pp. 312-324; pp. 321-324.
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particularly the larger public. There is the added reason, too, that
the reverse onus that a strict scrutiny brings directly strikes, in the
most glaring manner, at the regularity of the performance of
functions of a co-equal branch of government; inter-government
harmony and courtesy demand that we reserve this type of
treatment to the worst violations of the Constitution.
Incidentally, I believe that we can arrive at the same
conclusion and similarly strike down the disputed Section 10
by using the lowest level of scrutiny, thereby rendering the use
of the strict scrutiny unnecessary. Given the OSGÊs positions, the
resulting differential treatment the law fosters between Philippine-
based workers and OFWs in illegal dismissal situations does not
rest on substantial distinctions that are germane to the purpose of
the law. No reasonable basis for classification exists since the
distinctions the OSG pointed out do not justify the different
treatment of
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5 Id., at pp. 322-324; pp. 321-324; italics and emphasis supplied, citations
omitted.
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Article XIII
xxxx
Section 18. The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full employment
and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law. They
shall be entitled to security of tenure, humane conditions of work,
and a living wage. They shall also participate in policy and decision-
making processes affecting their rights and benefits as may be
provided by law.
The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation, and
shall enforce their mutual compliance therewith to foster industrial
peace.
The State shall regulate the relations between workers and
employers, recognizing the right of labor to its just share in the
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(b) The State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment and
equality of employment opportunities for all. Towards this end, the
State shall provide adequate and timely social, economic and legal
services to Filipino migrant workers.
xxxx
(e) Free access to the courts and quasi-judicial bodies and adequate
legal assistance shall not be denied to any person by reason of
poverty. In this regard, it is imperative that an effective
mechanism be instituted to ensure that the rights and interests of
distressed overseas Filipinos, in general, and Filipino migrant
workers, in particular, documented or undocumented, are
adequately protected and safeguarded.
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6 The long title of R.A. No. 8042.
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Supra note 3 at pp. 313-314; pp. 312-313.
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original and exclusive jurisdiction to hear and decide, within ninety
(90) calendar days after the filing of the complaint, the claims arising out
of an employer-employee relationship or by virtue of any law or contract
involving Filipino workers for overseas deployment including claims for
actual, moral, exemplary and other forms of damages.
The liability of the principal/employer and the recruitment/placement
agency for any and all claims under this section shall be joint and
several. This provision shall be incorporated in the contract for overseas
employment and shall be a condition precedent for its approval. The
performance bond to be filed by the recruitment/placement agency, as
provided by law, shall be answerable for all money claims or damages
that may be awarded to the workers. If the recruitment/placement
agency is a juridical being, the corporate officers and directors and
partners as the case may be, shall themselves be jointly and solidarily
liable with the corporation or partnership for the aforesaid claims and
damages.
Such liabilities shall continue during the entire period or duration of
the employment contract and shall not be affected by any substitution,
amendment or modification made locally or in a foreign country of the
said contract.
Any compromise/amicable settlement or voluntary agreement on
money claims inclusive of damages under this section shall be paid
within four (4) months from the approval of the settlement by the
appropriate authority.
In case of termination of overseas employment without just, valid or
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13 Supra note 3 at p. 316; p. 315.
14 Id.
15 Id.
16 Id. at p. 317; p. 317.
17 Id.
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23 Id., at p. 320; pp. 319-320.
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24 Id.
25 Id., at p. 320; p. 320.
26 Id., at pp. 320-321; p. 320.
27 Id., at p. 321; p. 320.
28 Id.
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