Labor 1 – Atty.

Daguinod | Digest | 2CLM - Camariño

Case No. 2-2: Continental Marble vs. NLRC and Nasayao

G.R. No. L- 43825 | May 9, 1988
PADILLA, J.

TOPIC:
DOCTRINE:

FACTS:

Sometime in May 1974, private respondent Rodito Nasayao claims that he was
appointed as the plant manager of the petitioner’s corporation with the
alleged compensation of PHP 3,000/month or 25% of the monthly net income of
the company or whichever is greater and when the company failed to pay his
salary for the months of May, June, and July, Nasayao filed a complaint with
the NLRC, Branch IV for the recovery of the said unpaid varies. In response,
the petitioners denied that Nasayao was employed as the plant manager with
the salary claims and that both parties agreed to a sort of partnership
wherein Nasayo was to keep the machinery in good working condition and in
return, Nasayao would get the contracts from end-users for the installation
of marble products, in which the company would not interfere. Moreover,
Nasayao was only to receive an amount of 25% of the net profits if the
company profited to that amount, in which the latter have not, hence,
respondent is not entitled to any amount.

The case was submitted for the voluntary arbiter, Jose T. Collado which
rendered judgement in favor of the complainant, ordering the petitioners to
pay Nasayao PHP 9,000 within 10 days from notice. The petitioners appealed in
the NLRC, saying that the decision was not supported by evidence. Nasayao
filed a motion to dismiss the appeal on the ground that the decision was
final, unappealable, and immediately executory based on Art. 262 of the LC.

RTC RULING:

CTA RULING:

ISSUE:

W/not the decision of the voluntary arbiter is final, uappealable, and

immediately executory based on Art. 262.
ARGUMENTS
PETITIONER (SURNAME): RESPONDENT (SURNAME):

The petitioners argued that “where Art. 262. We need to respect the
there is patent and manifest abuse of judgement of the Voluntary Arbiter.
discretion, the rule on

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unappealability of awards of a
voluntary arbitrator becomes flexible [Answers the ruling of SC]
and it is the inherent power of the The case is premature for non-
Courts to maintain the people's faith exhaustion of administrative remedies.
in the administration of justice.”
SC RULING:

While it’s true that the decisions of voluntary arbitrators must be given the
highest respect as a general rule, it is not correct to interpret that this
respect precludes the exercise of judicial review over their decisions.

Art. 262 of LC: Voluntary Arbitration is final, except the when the money
claims exceeds PHP 100,000 or 40% of paid up capital of the employer and when
there is abuse of discretion or gross incompetence.

A voluntary arbiter by the nature of her functions acts in quasi-judicial

capacity. There is no reason why her interpretation of law should be beyond
this Court’s review.

BASE:

[Answer to the response of Nasayao to the SC ruling]

The doctrine of administrative affairs cannot be invoked in this case because
in this case, it appears that the Commission has acted w/o jurisdiction and
with grave abuse of discretion in taking cognizance of a belated appeal
sought to be taken from a decision of Labor Arbiter and thereafter reversing
it, the writ of certiorari will issue to under those acts, and do justice to
the aggrieved party.

The finding of the fact of the voluntary arbitrator that Nasayao was an
employee of the petitioner is not supported by the evidence of law. Moreover,
it was illogical for the petitioners to hire Nasayao as the plant manager
with a monthly salary of PHP 3,000 wherein the petitioners aren’t even
capable of paying considering that the time he was hired, the shop was about
to close in months’ time. Besides, there weren’t any record which supports
the claims of Nasayao because he want even included in the company payroll
nor the list of employees furnished for SSS.

ON THE FOUR FOLD-TEST:

Nsayao decides on himself on what was to be done and worked at his own
pleasure. He was not subject to definite hours nor conditions of work, hence,
the petitioners doesn’t have control over the conduct of Nasayao.

Hence, the decision was reversed and set aside, dismissing the case of Nasaya
and there is no basis for the unpaid salaries of the same.

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