Luzon Development Bank versus Association of Luzon Development Bank

Employees, Et. Al. – G. R. No. 120319. October 6, 1995.

Facts:
From a submission agreement of the LDB and the ALDBE arose an arbitration case to resolve
the following issue on whether or not there is a violation of their CBE. The Voluntary Arbitrator
rendered a decision finding that the bank did not adhere to the CBE. Hence, the bank filed a
petition for certiorari and prohibition to the SC seeking to set aside the decision of the
Voluntary Arbitrator and to prohibit her from enforcing the same.
Issue:
Is the referral to the SC without going to CA correct?
Ruling:
No. The jurisdiction of the CA as stated in Sec. 9 of B.P. 129 purposely included the broader
term of ‘instrumentalities’. An “instrumentality” is anything used as a means or agency.   Thus,
the terms governmental “agency” or “instrumentality” are synonymous in the sense that either
of them is a means by which a government acts, or by which a certain government act or
function is performed.  The word “instrumentality,” with respect to a state, contemplates an
authority to which the state delegates governmental power for the performance of a state
function.  An individual person, like an administrator or executor, is a judicial instrumentality in
the settling of an estate,   in the same manner that a sub-agent appointed by a bankruptcy court
is an instrumentality of the court,   and a trustee in bankruptcy of a defunct corporation is an
instrumentality of the state.