Banahaw Broadcasting Corporation v. Iii

LEONARDO-DE CASTRO, J.:

This is a Petition for Review on Certiorari under Rule 45 of the 1997 Rules of Civil Procedure assailing the Decision1 dated April 15, 2005 of the Court of Appeals in CA-G.R. SP No. 57847, and its Resolution2 dated January 27, 2006 denying petitioner's Motion for Reconsideration. The factual and procedural antecedents of this case are as follows: Respondents in the case at bar, Cayetano Pacana III, Noe U. Dacer, Johnny B. Racaza, Leonardo S. Orevillo, Araceli T. Libre, Genovevo E. Romitman, Porferia M. Valmores, Meneleo G. Lactuan, Dionisio G. Bangga, Francisco D. Manga, Nestor A. Amplayo, Leilani B. Gasataya, Loreta G. Lactuan, Ricardo B. Pido, Resigolo M. Nacua and Anacleto C. Remedio (collectively, the DXWG personnel), are supervisory and rank and file employees of the DXWG-Iligan City radio station which is owned by petitioner Banahaw Broadcasting Corporation (BBC), a corporation managed by Intercontinental Broadcasting Corporation (IBC).

On August 29, 1995, the DXWG personnel filed with the Sub-regional Arbitration Branch No. XI, Iligan City a complaint for illegal dismissal, unfair labor practice, reimbursement of unpaid Collective Bargaining Agreement (CBA) benefits, and attorney's fees against IBC and BBC. On June 21, 1996, Labor Arbiter Abdullah L. Alug rendered his Decision3 awarding the DXWG personnel a total of ₱12,002,157.28 as unpaid CBA benefits consisting of unpaid wages and increases, 13th month pay, longevity pay, sick leave cash conversion, rice and sugar subsidy, retirement pay, loyalty reward and separation pay.4 The Labor Arbiter denied the other claims of the DXWG personnel for Christmas bonus, educational assistance, medical check-up and optical expenses. Both sets of parties appealed to the National Labor Relations Commission (NLRC).

On May 15, 1997, a Motion to Dismiss, Release, Waiver and Quitclaim,5 was jointly filed by IBC and the DXWG personnel based on the latter's admission that IBC is not their employer as it does not own DXWG-Iligan City. On April 21, 1997, the NLRC granted the Motion and dismissed the case with respect to IBC.6 BBC filed a Motion for Reconsideration alleging that (1) neither BBC nor its duly authorized representatives or officers were served with summons and/or a copy of the complaint when the case was pending before the Labor Arbiter or a copy of the Decision therein; (2) since the liability of IBC and BBC is solidary, the release and quitclaim issued by the DXWG personnel in favor of IBC totally extinguished BBC's liability; (3) it was IBC that effected the termination of the DXWG personnel's employment; (4) the DXWG personnel are members of the IBC union and are not employees of BBC; and (5) the sequestered properties of BBC cannot be levied upon.

On December 12, 1997, the NLRC issued a Resolution vacating the Decision of Labor Arbiter Alug and remanding the case to the arbitration branch of origin on the ground that while the complaint was filed against both IBC and BBC, only IBC was served with summons, ordered to submit a position paper, and furnished a copy of the assailed decision.7 On October 15, 1998, Labor Arbiter Nicodemus G. Palangan rendered a Decision adjudging BBC to be liable for the same amount discussed in the vacated Decision of Labor Arbiter Alug:

WHEREFORE, premises considered, judgment is hereby rendered ordering the respondent Banahaw Broadcasting Corporation to pay complainants the following: 1. Cayetano Pacana III ₱ 1,730,535.75 2. Noe U. Dacer 886,776.43 3. Johnny B. Racaza 1,271,739.34 4. Leonardo S. Orevillo 1,097,752.70 5. Araceli T. Libre 543,467.22 6. Genovevo E. Romitman 716,455.72 7. Porferia M. Valmores 562,564.78 8. Meneleo G. Lactuan 678,995.91 9. Dionisio G. Bangga 580,873.78 10. Francisco D. Manga 29,286.65 11. Nestor A. Amplayo 583,798.51 12. Leilani B. Gasataya 42,669.75 13. Loreta G. Lactuan 757,252.52 14. Ricardo B. Pido 756,835.64 15. Resigolo M. Nacua 887,344.75 16. Anacleto C. Remedio 887,345.39