Eloisa Regencia

BSAIS – J301

CASE DIGEST
GR no. 97212 Benjamin Yu vs. national Labor Relations Commission June 30, 1993

Facts:
Yu was appointed by Jade Mountain Products Company Limited to be the assistant
general manager. With a monthly salary of P4,000.00, he was hired in 1985 as a result of a
Partnership Resolution. However, Willy Co and Emmanuel Zapanta were given the General
Partners' and one Limited Partner's shares in 1988 without his knowledge. The main office of the
company will be moved, as chosen by the new partners. All of the former partnership's employees
and workers, with the exception of the petitioner, will continue to work for them as they always
have, under the old firm name. In order to see the new partners and request payment of his
salaries, the petitioner went to the newly opened main office. The previous owner declined to pay
him, and since he acquired the company from the founding partners, he must now determine
whether or not to do so. He was in charge of the previous partnership, which included petitioners
and unpaid wages. As a result, the petitioner was fired from the partnership.

Issue:

 However, the petitioner could use his rights under his employment agreement with the previous
firm against the new partnership.
 The business that had employed the petitioner as an assistant. A new partnership made up of Co
and Zapanta had taken the position of Gen. Manager, which had been put out of business.

Ruling:

 The previous partnership's debts are truly owed by the new partnership.
 Yes, the partnership that employed the petitioner was terminated as a result of the changes in the
membership, and a new partnership made up of Co and Zapanta was formed in its place.