SECOND DIVISION
[G.R. No. 118216. March 9, 2000]
DELTAVENTURES
RESOURCES, INC., petitioner, vs. HON. FERNANDO P. CABATO, Presiding
Judge Regional Trial Court, La Trinidad, Benguet, Branch 62; HON. GELACIO L.
RIVERA, JR., Executive Labor Arbiter, NLRC-CAR, Baguio City, ADAM P. VENTURA,
Deputy-Sheriff, NLRC-CAR, Baguio City; ALEJANDRO BERNARDINO, AUGUSTO GRANADOS,
PILANDO TANGAY, NESTOR RABANG, RAY DAYAP, MYRA BAYAONA, VIOLY LIBAO, AIDA
LIBAO, JESUS GATCHO and GREGORIO DULAY, respondents. Manikanä
D E C I S I O N
QUISUMBING, J.:
This special civil action for certiorari
seeks to annul the Order dated November 7, 1994,[1] of respondent Judge Fernando P. Cabato of the
Regional Trial Court of La Trinidad, Benguet, Branch 62, in Civil Case No. 94-CV-0948,
dismissing petitioner's amended third-party complaint, as well as the Order
dated December 14, 1994,[2] denying motion for reconsideration.
On July 15, 1992, a Decision[3] was rendered by Executive Labor Arbiter Norma
Olegario, National Labor Relations Commission - Regional Arbitration Board,
Cordillera Autonomous Region (Commission), in NLRC Case No. 01-08-0165-89
entitled "Alejandro Bernardino, et al. vs. Green Mountain Farm, Roberto
Ongpin and Almus Alabe", the dispositive portion of which reads as follows:
"WHEREFORE,
judgment is hereby rendered declaring the respondents guilty of Illegal
Dismissal and Unfair Labor Practice and ordering them to pay the complainants, in
solidum, in the amounts herein below listed:
1. Violy Libao P131,368.07
2. Myra Bayaona
121,470.23
3. Gregorio Dulay 128,362.17
4. Jesus Gatcho
126,475.17Oldmisâ o
5. Alejandro Bernardino 110,158.20
6. Pilando Tangay 107,802.66
7. Aida Libao 129,967.34
8. Rey Dayap
123,289.21
9. Nestor Rabang
90,611.69
10. Augusto
Granados
108,106.03
plus attorney's
fees in the amount of P10,000.00.
Respondent Almus
Alabe is also ordered to answer in exemplary damages in the amount of P5,000.00
each to all the complainants.
x x x x x x x
x x
SO ORDERED."[4]
On May 19, 1994, complainants in the
abovementioned labor case, filed before the Commission a motion for the
issuance of a writ of execution as respondent's appeal to the Commission and
this Court[5] were respectively denied. Ncmâ
On June 16, 1994, Executive Labor Arbiter
Gelacio C. Rivera, Jr. to whom the case was reassigned in view of Labor Arbiter
Olegario's transfer, issued a writ of execution[6] directing NLRC Deputy Sheriff Adam Ventura to
execute the judgment against respondents, Green Mountain Farm, Roberto Ongpin
and Almus Alabe. Sheriff Ventura then proceeded to enforce the writ by
garnishing certain personal properties of respondents. Finding that said
judgment debtors do not have sufficient personal properties to satisfy the
monetary award, Sheriff Ventura proceeded to levy upon a real property covered
by Tax Declaration No. 9697, registered in the name of Roberto Ongpin, one of
the respondents in the labor case. Thereafter, Sheriff Ventura caused the
publication on the July 17, 1994 edition of the Baguio Midland Courier the date
of the public auction of said real property.
On July 27, 1994, a month before the
scheduled auction sale, herein petitioner filed before the Commission a
third-party claim[7] asserting ownership over the property levied upon
and subject of the Sheriff’s notice of sale. Labor Arbiter Rivera thus issued
an order directing the suspension of the auction sale until the merits of
petitioner's claim has been resolved.[8]
However, on August 16, 1994, petitioner
filed with the Regional Trial Court of La Trinidad, Benguet a complaint for
injunction and damages, with a prayer for the issuance of a temporary
restraining order against Sheriff Ventura, reiterating the same allegations it
raised in the third party claim it filed with the Commission. The petition was
docketed as Civil Case No. 94-CV-0948, entitled "Deltaventures Resources,
Inc., petitioner vs. Adam P. Ventura, et. al., defendants." The next day,
August 17, 1994, respondent Judge Cabato issued a temporary restraining order,
enjoining respondents in the civil case before him to hold in abeyance any
action relative to the enforcement of the decision in the labor case.[9]NcmmisÓ
Petitioner likewise filed on August 30,
1994, an amended complaint[10] to implead Labor Arbiter Rivera and herein private respondent-laborers.
Further, on September 20, 1994, petitioner
filed with the Commission a manifestation[11] questioning the latter's authority to hear the case,
the matter being within the jurisdiction of the regular courts. The
manifestation, however, was dismissed by Labor Arbiter Rivera on October 3,
1994.[12]
Meanwhile, on September 20, 1994, private
respondent-laborers, moved for the dismissal of the civil case on the ground of
the court's lack of jurisdiction.[13] Petitioner filed its opposition to said motion on
October 4, 1994.[14]
On November 7, 1994, after both parties had
submitted their respective briefs, respondent court rendered its assailed
decision premised on the following grounds:
"First, this
Court is of equal rank with the NLRC, hence, has no jurisdiction to issue an
injunction against the execution of the NLRC decision. x x x.
Second, the NLRC
retains authority over all proceedings anent the execution of its decision.
This power carries with it the right to determine every question which may be
involved in the execution of its decision. x x x.
Third,
Deltaventures Resources, Inc. should rely on and comply with the Rules
of the NLRC because it is the principal procedure to be followed, the Rules of
Court being merely suppletory in application, x x x. Scncä m
Fourth, the
invocation of estoppel by the plaintiffs is misplaced. x x x. [B]efore the
defendants have filed their formal answer to the amended complaint, they moved
to dismiss it for lack of jurisdiction.
Lastly, the
plaintiff, having in the first place addressed to the jurisdiction of the NLRC
by filing with it a Third Party Claim may not at the same time pursue the
present amended Complaint under the forum shopping rule."[15]
Their motion for reconsideration having been
denied by respondent Judge,[16] petitioner promptly filed this petition now before
us.
In spite of the many errors assigned by
petitioner,[17] we find that here the core issue is whether or not
the trial court may take cognizance of the complaint filed by petitioner and
consequently provide the injunctive relief sought. Such cognizance, in turn,
would depend on whether the acts complained of are related to, connected or
interwoven with the cases falling under the exclusive jurisdiction of the Labor
Arbiter or of the NLRC.
Petitioner avers that court a quo
erred in dismissing the third-party claim on the ground of lack of
jurisdiction. Further, it contends that the NLRC-CAR did not acquire
jurisdiction over the claim for it did not impugn the decision of the NLRC-CAR
but merely questioned the propriety of the levy made by Sheriff Ventura. In
support of its claim, petitioner asserts that the instant case does not involve
a labor dispute, as no employer-employee relationship exist between the parties.
Nor is the petitioner's case related in any way to either parties' case before
the NLRC-CAR hence, not within the jurisdiction of the Commission. SdaaÓ miso
Basic as a hornbook principle, jurisdiction
over the subject matter of a case is conferred by law and determined by the
allegations in the complaint[18] which comprise a concise statement of the ultimate
facts constituting the petitioner's cause of action.[19] Thus we have held that:
"Jurisdiction
over the subject-matter is determined upon the allegations made in the
complaint, irrespective of whether the plaintiff is entitled or not entitled to
recover upon the claim asserted therein - a matter resolved only after and as a
result of the trial."[20]
Petitioner filed the third-party claim
before the court a quo by reason of a writ of execution issued by the
NLRC-CAR Sheriff against a property to which it claims ownership. The writ was
issued to enforce and execute the commission's decision in NLRC Case No.
01-08-0165-89 (Illegal Dismissal and Unfair Labor Practice) against Green
Mountain Farm, Roberto Ongpin and Almus Alabe.
Ostensibly the complaint before the trial
court was for the recovery of possession and injunction, but in essence it was
an action challenging the legality or propriety of the levy vis-a-vis
the alias writ of execution, including the acts performed by the Labor Arbiter
and the Deputy Sheriff implementing the writ. The complaint was in effect a
motion to quash the writ of execution of a decision rendered on a case properly
within the jurisdiction of the Labor Arbiter, to wit: Illegal Dismissal and
Unfair Labor Practice. Considering the factual setting, it is then logical to
conclude that the subject matter of the third party claim is but an incident of
the labor case, a matter beyond the jurisdiction of regional trial courts. Sdaad
Precedent abound confirming the rule that
said courts have no jurisdiction to act on labor cases or various incidents
arising therefrom, including the execution of decisions, awards or orders.[21] Jurisdiction to try and adjudicate such cases
pertains exclusively to the proper labor official concerned under the
Department of Labor and Employment. To hold otherwise is to sanction split
jurisdiction which is obnoxious to the orderly administration of justice.[22]
Petitioner failed to realize that by filing
its third-party claim with the deputy sheriff, it submitted itself to the
jurisdiction of the Commission acting through the Labor Arbiter. It failed to
perceive the fact that what it is really controverting is the decision of the
Labor Arbiter and not the act of the deputy sheriff in executing said order
issued as a consequence of said decision rendered.
Jurisdiction once acquired is not lost upon
the instance of the parties but continues until the case is terminated.[23] Whatever irregularities attended the issuance an
execution of the alias writ of execution should be referred to the same
administrative tribunal which rendered the decision.[24] This is because any court which issued a writ of
execution has the inherent power, for the advancement of justice, to correct
errors of its ministerial officers and to control its own processes.[25]Scsä daad
The broad powers granted to the Labor
Arbiter and to the National Labor Relations Commission by Articles 217, 218 and
224 of the Labor Code can only be interpreted as vesting in them jurisdiction
over incidents arising from, in connection with or relating to labor disputes,
as the controversy under consideration, to the exclusion of the regular courts.
Having established that jurisdiction over the
case rests with the Commission, we find no grave abuse of discretion on the
part of respondent Judge Cabato in denying petitioner's motion for the issuance
of an injunction against the execution of the decision of the National Labor
Relations Commission.
Moreover, it must be noted that the Labor
Code in Article 254 explicitly prohibits issuance of a temporary or permanent
injunction or restraining order in any case involving or growing out of labor
disputes by any court or other entity (except as otherwise provided in Arts.
218 and 264). As correctly observed by court a quo, the main issue and
the subject of the amended complaint for injunction are questions interwoven
with the execution of the Commission's decision. No doubt the aforecited
prohibition in Article 254 is applicable. SupÓ rema
Petitioner should have filed its third-party
claim before the Labor Arbiter, from whom the writ of execution originated,
before instituting said civil case. The NLRC's Manual on Execution of Judgment,[26] issued pursuant to Article 218 of the Labor Code,
provides the mechanism for a third-party claimant to assert his claim over a
property levied upon by the sheriff pursuant to an order or decision of the
Commission or of the Labor Arbiter. The power of the Labor Arbiter to issue a
writ of execution carries with it the power to inquire into the correctness of
the execution of his decision and to consider whatever supervening events might
transpire during such execution.
Moreover, in denying petitioner's petition
for injunction, the court a quo is merely upholding the time-honored
principle that a Regional Trial Court, being a co-equal body of the National
Labor Relations Commission, has no jurisdiction to issue any restraining order
or injunction to enjoin the execution of any decision of the latter.[27]Jurisä
WHEREFORE, the petition for certiorari and prohibition
is DENIED. The assailed Orders of respondent Judge Fernando P. Cabato dated
November 7, 1994 and December 14, 1994, respectively are AFFIRMED. The records of
this case are hereby REMANDED to the National Labor Relations Commission for
further proceedings.
Costs against petitioner.
SO ORDERED. Scä juris
Bellosillo, (Chairman), Mendoza, Buena, and De Leon, Jr., JJ., concur.
[1] Rollo, pp. 7 - 14.
[2] Id. at 15.
[3] Id. at 63-76.
[4] Id. at 75-76.
[5] Id. at 185.
[6] Id. at 219 - 223.
[7] Id. at 83 - 85.
[8] Id. at 147.
[9] Id. at 90 - 91.
[10] Id. at 51-61.
[11] Id. at 113 - 118.
[12] Id. at 124 - 128.
[13] Id. at 92- 101.
[14] Id. at 102 - 112.
[15] Id. at 11 - 12.
[16] Id. at 15.
[17] Id. at 24 - 25.
[18] Bernardo, Sr. v. CA, 263 SCRA 660, 671 (1996); Sandel v. CA, 262 SCRA 101, 110 (1996); San Miguel Corporation v. NLRC, 255 SCRA 133, 143 (1996); Amigo v. CA, 253 SCRA 382, 389 (1996).
[19] Sec. 3, Rule 6, Revised Rules of Court.
[20] Multinational Village Homeowners Ass., Inc. v. CA, et. al., 203 SCRA 104, 107 (1991).
[21] Tipait v. Reyes, 218 SCRA 592, 595 (1993); Velasco v. Ople, 191 SCRA 636, 641-642 (1990).
[22] Balais v. Velasco, 252 SCRA 707, 721 (1996); Associated Labor Unions (ALU-TUCP) v. Borromeo, 166 SCRA 99, 102 (1988).
[23] Gimenez v. Nazareno, 160 SCRA 1, 5 (1988).
[24] Pucan v. Bengzon, 155 SCRA 692, 700 (1987).
[25] Balais v. Velasco, 252 SCRA 707, 720 (1996).
[26] Rule VI of the NLRC's Manual on Execution of Judgment,
Section 2. Proceedings. - If property levied upon be claimed by any person
other than the losing party or his agent, such person shall make an affidavit
of his title thereto or right to the possession thereof, stating the grounds of
such right or title and shall file the same with the sheriff and copies thereof
served upon the Labor Arbiter or proper officer issuing the writ and upon the
prevailing party. Upon receipt of the third party claim, all proceedings with
respect to the execution of the property subject of the third party claim shall
automatically be suspended and the Labor Arbiter or proper officer issuing the
writ shall conduct a hearing with due notice to all parties concerned and
resolve the validity of the claim within ten (10) working days from receipt
thereof and his decision is appealable to the Commission within 10 working days
from notice, and the Commission shall resolve the appeal within the same
period.
However, should the prevailing party put up an indemnity bond in a sum not less than the value of the property levied, the execution shall proceed. In case of disagreement as to such value, the same shall be determined by the Commission or Labor Arbiter who issued the writ."
[27] New Pangasinan Review, Inc. v. NLRC, 196 SCRA 56, 66 (1991).