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Philippine Supreme Court Jurisprudence > Year 2012 > September 2012 Decisions > G.R. No. 197528 - Pert/CPM
Manpower Exponent Co., Inc. v. Amando A. Vinuya, et al.:

G.R. No. 197528 - Pert/CPM Manpower Exponent Co., Inc. v. Amando A. Vinuya, et al.

ChanRobles On-Line Bar Review

SECOND DIVISION

[G.R. NO. 197528 - September 5, 2012]

PERT/CPM MANPOWER EXPONENT CO., INC., Petitioner, v. ARMANDO A. VINUY A, LOUIE M.


ORDOVEZ, ARSENIO S. LUMANTA,. JR., ROBELITO S. ANIPAN, VIRGILIO R. ALCANTARA,
MARINO M. ERA, SANDY 0. ENJAMBRE and NOEL T. LADEA, Respondents.

DECISION

BRION, J.:

We resolve the present Petition for Review on Certiorari 1 assailing the decision2 dated May 9, 2011
ςrνl l ςrνl l

and the resolution3dated June 23, 2011 of the Court of Appeals (CA) in CA-G.R. SP No. 114353.

The Antecedents

On March 5, 2008, respondents Armando A. Vinuya, Louie M. Ordovez, Arsenio S. Lumanta, Jr., Robelito
S. Anipan, Virgilio R. Alcantara, Marino M. Era, Sandy O. Enjambre and Noel T. Ladea (respondents) filed
a complaint for illegal dismissal against the petitioner Pert/CPM Manpower Exponent Co., Inc. (agency),
and its President Romeo P. Nacino.

The respondents alleged that the agency deployed them between March 29, 2007 and May 12, 2007 to
work as aluminum fabricator/installer for the agency s principal, Modern Metal Solution LLC/MMS Modern
Metal Solution LLC (Modern Metal) in Dubai, United Arab Emirates.
DebtKollect Company, Inc.
The respondents employment contracts,4 which were approved by the Philippine Overseas Employment
ς rνl l

Administration (POEA), provided for a two-year employment, nine hours a day, salary of 1,350 AED with
overtime pay, food allowance, free and suitable housing (four to a room), free transportation, free
laundry, and free medical and dental services. They each paid a P 15,000.00 processing fee.5 ς rνl l ς rνl l

On April 2, 2007, Modern Metal gave the respondents, except Era, appointment letters6 with terms ς rνl l

different from those in the employment contracts which they signed at the agency s office in the
Philippines. Under the letters of appointment, their employment was increased to three years at 1,000 to
1,200 AED and food allowance of 200 AED.

The respondents claimed that they were shocked to find out what their working and living conditions
were in Dubai. They were required to work from 6:30 a.m. to 6:30 p.m., with a break of only one hour to
one and a half hours. When they rendered overtime work, they were most of the time either underpaid
or not paid at all. Their housing accommodations were cramped and were shared with 27 other
occupants. The lodging house was in Sharjah, which was far from their jobsite in Dubai, leaving them
only three to four hours of sleep a day because of the long hours of travel to and from their place of
work; there was no potable water and the air was polluted.

When the respondents received their first salaries (at the rates provided in their appointment letters and
with deductions for placement fees) and because of their difficult living and working conditions, they
ChanRobles Intellectual Property called up the agency and complained about their predicament. The agency assured them that their
Division concerns would be promptly addressed, but nothing happened.

On May 5, 2007, Modern Metal required the respondents to sign new employment contracts,7 except for ς rνl l

Era who was made to sign later. The contracts reflected the terms of their appointment letters. Burdened

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by all the expenses and financial obligations they incurred for their deployment, they were left with no
choice but to sign the contracts. They raised the matter with the agency, which again took no action.

On August 5, 2007, despondent over their unbearable living and working conditions and by the agency s
inaction, the respondents expressed to Modern Metal their desire to resign. Out of fear, as they put it,
that Modern Metal would not give them their salaries and release papers, the respondents, except Era,
cited personal/family problems for their resignation.8 Era mentioned the real reason "because I dont ς rνl l

(sic) want the company policy"9 for his resignation. ς rνl l

It took the agency several weeks to repatriate the respondents to the Philippines. They all returned to
Manila in September 2007. Except for Ordovez and Enjambre, all the respondents shouldered their own
airfare.

For its part, the agency countered that the respondents were not illegally dismissed; they voluntarily
resigned from their employment to seek a better paying job. It claimed that the respondents, while still
working for Modern Metal, applied with another company which offered them a higher pay. Unfortunately,
their supposed employment failed to materialize and they had to go home because they had already
resigned from Modern Metal.

The agency further alleged that the respondents even voluntarily signed affidavits of quitclaim and
release after they resigned. It thus argued that their claim for benefits, under Section 10 of Republic Act
No. (R.A.) 8042, damages and attorney s fees is unfounded.

The Compulsory Arbitration Rulings

On April 30, 2008, Labor Arbiter Ligerio V. Ancheta rendered a Decision10 dismissing the complaint, ς rνl l

finding that the respondents voluntarily resigned from their jobs. He also found that four of them
Alcantara, Era, Anipan and Lumanta even executed a compromise agreement (with quitclaim and
release) before the POEA. He considered the POEA recourse a case of forum shopping.

The respondents appealed to the National Labor Relations Commission (NLRC). They argued that the
labor arbiter committed serious errors in (1) admitting in evidence the quitclaims and releases they
executed in Dubai, which were mere photocopies of the originals and which failed to explain the
circumstances behind their execution; (2) failing to consider that the compromise agreements they
September-2012 Jurisprudence signed before the POEA covered only the refund of their airfare and not all their money claims; and (3)
ruling that they violated the rule on non-forum shopping.

On May 12, 2009, the NLRC granted the appeal.11 It ruled that the respondents had been illegally ς rνll

A.C. No. 6753 - Mila Virtusio v. Atty. Grenalyn V. dismissed. It anchored its ruling on the new employment contracts they were made to sign in Dubai. It
Virtusio stressed that it is illegal for an employer to require its employees to execute new employment papers,
especially those which provide benefits that are inferior to the POEA-approved contracts.
A.M. No. RTJ-09-2182 Formerly A.M. No. 08-3007-RTJ
- Government Service Insurance System by Atty. Lucio The NLRC rejected the quitclaim and release executed by the respondents in Dubai. It believed that the
L. Yu, Jr. v. Executive Judge Maria Cancino-Erum, respondents executed the quitclaim documents under duress as they were afraid that they would not be
Regional Trial Court, Br. 210, Mandaluyong City and
allowed to return to the Philippines if they did not sign the documents. Further, the labor tribunal
Presiding Judge Carlos A. Valenzuela, Regional Trial
court, Branch 213, Mandaluyong City
disagreed with the labor arbiter s opinion that the compromise agreement they executed before the POEA
had effectively foreclosed the illegal dismissal complaint before the NLRC and that the respondents had
G.R. No. 148607, G.R. NO. 167202, G.R. NO. 167223 been guilty of forum shopping. It pointed out that the POEA case involved pre-deployment issues;
and G.R. NO. 167271 - Elsa B. Reyes v. Sandiganbayan whereas, the complaint before the NLRC is one for illegal dismissal and money claims arising from
and People of the Philippines/Artemio C. Mendoza v. employment.
Sandiganbayan and People of the Philippines/Elsa B.
Reyes v. People of the Philippines/Caridad A. Miranda Consequently, the NLRC ordered the agency, Nacino and Modern Metal to pay, jointly and severally, the
v. People of the Philippines respondents, as follows: ς η α ñ rοbl εš νιr†υ α l l α ω lιbrα rÿ

G.R. No. 153799, G.R. NO. 157169, G.R. NO. 157327 WHEREFORE, the Decision dated 30 April 2008 is hereby REVERSED and SET ASIDE, a new
and G.R. NO. 157506 - Solidbank Union, et al. v. Decision is hereby issued ordering the respondents PERT/CPM MANPOWER EXPONENTS
Metropolitan Bank and Trust Company; Metropolitan
CO., INC., ROMEO NACINO, and MODERN METAL SOLUTIONS, INC. to jointly and severally,
Bank and Trust Company v. Solidbank Union, et al.;
pay the complainants the following:
Solidbank Corporation, etc., et al. v. Solidbank Union, et
al.; Solidbank Union, et al. v. Metropolitan Bank and
Trust Company Salary for
the
G.R. No. 171107 - Anita C. Vianzon, Heirs of the late unexpired
Lucila Candelaria Gonzales v. Minople Macaraeg Underpaid Placement Exemplary
Employee portion of
Salary fee Damages
G.R. No. 173425 - Fort Bonifacio Develoment the contract
Corporation v. Commissioner of Internal Revenue and (1350 x 6
Revenue District Officer, etc. months)

G.R. No. 175170 - Misamis Oriental II Electric Service Vinuya,


150 x 6 = 900 AED USD 400 8100 AED P 20,000.00
Cooperative (MORESCO II) v. Virgilio M. Cagalawan ARMANDO

G.R. No. 176343 - Trade and Investment Development Alcantara


Corporation of the Phil. v. Rosario S. Manalang- 150 X 4 = 600 AED USD 400 8100 AED P 20,000.00
VIRGILIO
Demigillo
Era,
G.R. No. 184606 - People of the Philippines v. Calexto 350 x 4 = 1400 AED USD 400 8100 AED P 20,000.00
MARINO
D. Fundales

G.R. No. 188979 - People of the Philippines v. Ladea,


150 x 5 = 750 AED USD 400 8100 AED P 20,000.00
Christopher Pareja y Velasco NOEL

G.R. No. 189486 and G.R. NO. 189699 - Simny G. Guy, Ordovez,
250 X 3 = 750 AED USD 400 8100 AED P 20,000.00
Geraldine G. Guy, Gladys G. Yao and the Heirs of the LOUIE
late Grace G. Cheu v. Gilbert Guy/Simny G. Guy,
Geraldine G. Guy, Gladys G. Yao and the heirs of the Anipan,
late Grace G. Cheu v. The Hon. Ofelia C. Calo, in her
150 x 4 = 600 AED USD 400 8100 AED P 20,000.00
ROBELITO
capacity as Presiding Judge of the RTC-Mandaluyong
City-Branch 211 and Gilbert Guy Enjambre,
150 x 4 = 600 AED USD 400 8100 AED P 20,000.00
SANDY
G.R. No. 191062 - People of the Philippine v. Mohamad
Angkob y Milang
Lumanta,
250 x 5 = 1250 AED USD 400 8100 AED P 20,000.00
G.R. No. 191753 - People of the Philippines v. Ronald ARSENIO
De Jesus y Apacible and Amelito Dela Cruz y Pua
TOTAL: 6,850 AED US$3,200 64,800 AED P 400,000.00
G.R. No. 191837 - Maria Consolacion Rivera-Pascual v.
Spouses Marilyn Lim and George Lim and The Registry
of Deeds of Valenzuela City
or their peso equivalent at the time of actual payment plus attorney s fees equivalent to
G.R. No. 192117 and G.R. NO. 192118 - Association of 10% of the judgment award.12 ς rνl l ς rνl l

Southern Tagalog Electric Cooperatives, Inc., et al. v.


Energy Regulatory Commission/Central Luzon Electric chanrobl es vi rt ual l aw l i brary

Cooperatives Association, Inc., et al. v. Energy


Regulatory Commission The agency moved for reconsideration, contending that the appeal was never perfected and that the
NLRC gravely abused its discretion in reversing the labor arbiter s decision.The respondents, on the other
G.R. No. 192945 - City of Iriga v. Camarines Sur III hand, moved for partial reconsideration, maintaining that their salaries should have covered the
Electric Cooperative Inc.
unexpired portion of their employment contracts, pursuant to the Court s ruling in Serrano v. Gallant

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G.R. No. 194014 - Philippine National Bank v. Spouses Maritime Services, Inc.13 ςrνl l ς rνl l

Alejandro and Myrna Reblando


The NLRC denied the agency s motion for reconsideration, but granted the respondents motion.14 It
G.R. No. 195592 - Magdiwang Realty Corporation,
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sustained the respondents argument that the award needed to be adjusted, particularly in relation to the
Renato P. Dragon and Esperanza Tolentino v. The
Manila Banking Corporation, substituted by First payment of their salaries, consistent with the Court s ruling in Serrano. The ruling declared
Sovereign Asset Management [SPV-AMC], Inc. unconstitutional the clause, "or for three (3) months for every year of the unexpired term, whichever is
less," in Section 10, paragraph 5, of R.A. 8042, limiting the entitlement of illegally dismissed overseas
G.R. No. 195619 - Planters Development Bank v. Julie Filipino workers to their salaries for the unexpired term of their contract or three months, whichever is
Chandumal less. Accordingly, it modified its earlier decision and adjusted the respondents salary entitlement based
on the following matrix:
G.R. No. 196355 - Bienvenido William D. Lloren v. The
Commission on Elections, et al.

G.R. No. 196231 and G.R. NO. 196232 - Emilio A. Unexpired


Duration of
Gonzales III v. Office of the President of the Employee Departure date Date dismissed portion of
Contract
Philippines, acting through and represented by contract
Executive Secretary Paquito N. Ochoa, Jr., et
al./Wendell Barreras-Sulit v. Atty. Paquito N. Ochoa,
Jr., in his capacity as Executive Secretary, Office of the
President, Atty. Dennis F. Ortiz, et al. Vinuya, 19 months
2 years 29 March 2007 8 August 2007
ARMANDO and 21 days
G.R. No. 197528 - Pert/CPM Manpower Exponent Co.,
Inc. v. Amando A. Vinuya, et al.

G.R. No. 198662 - Radio Mindanao Network, Inc. and


Alcantara, 20 months
2 years 3 April 2007 8 August 2007
Eric S. Canoy v. Domingo Z. Ybarola, et al. VIRGILIO and 5 days

G.R. No. 199084 - Antonia P. Ceron v. Commission on


Elections, et al.
Era, 21 months
2 years 12 May 2007 8 August 2007
MARINO and 4 days
G.R. No. 200951 - People of the Philippines v. Jose
Almodiel alias "Dodong Astrobal"

A.M. OCA IPI No. 04-1606-MTJ : Atty. Arturo Juanito Ladea, 19 months
T. Maturan v. Judge Lizabeth Gutierrez-Torres, 2 years 29 March 2007 8 August 2007
NOEL and 21 days
Metropolitan Trial Court, Branch 60, Mandaluyong City

A.C. No. 6753 - Mila Virtusio v. Atty. Grenalyn V.


Virtusio Ordovez, 21 months
2 years 3 April 2007 26 July 2007
LOUIE and 23 days
A.M. No. MTJ-07-1666 : Gerlie M. Uy and Ma.
Consolacion T. Bascug v. Judge Erwin B. Javellana,
Municipal Trial Court, La Castellana, Negros Occidental
Anipan, 20 months
A.M. No. P-06-2161 : Atty. Dennis A. Velasco v. Myra 2 years 3 April 2007 8 August 2007
ROBELITO and 5 days
L. Baterbonia/In Re: Report on the financial audit
conducted in the RTC, Branch 38, Alabel etc.

A.M. No. P-11-2920 : Lucia Nazar Vda. De Feliciano v. Enjambre, 20 months


2 years 29 March 2007 26 July 2007
Romeo L. Rivera, Sheriff IV, Regional Trial Court, Office SANDY and 3 days
of the Clerk of Court, Valenzuela City

A.M. No. P-12-3086 : Office of the Court Administrator


v. Susana R. Fontanilla, Clerk of Court, MCTC, San Lumanta, 19 months
2 years 29 March 2007 8 August 2007
Narciso-Buenavista, San Narciso, Quezon ARSENIO and 21 days15 ς rνl l

A.M. No. P-12-3087 : Dionisio P. Pilot v. Renato B.


Baron, Sheriff IV, Regional Trial Court, Br. 264, Pasig
City
Again, the agency moved for reconsideration, reiterating its earlier arguments and, additionally,
questioning the application of the Serrano ruling in the case because it was not yet final and executory.
A.M. No. RTJ-09-2182 Formerly A.M. No. 08-3007-RTJ The NLRC denied the motion, prompting the agency to seek recourse from the CA through a Petition for
- Government Service Insurance System by Atty. Lucio Certiorari.
L. Yu, Jr. v. Executive Judge Maria Cancino-Erum,
Regional Trial Court, Br. 210, Mandaluyong City and The CA Decision
Presiding Judge Carlos A. Valenzuela, Regional Trial
court, Branch 213, Mandaluyong City The CA dismissed the petition for lack of merit.16 It upheld the NLRC ruling that the respondents were ς rνl l

illegally dismissed. It found no grave abuse of discretion in the NLRC s rejection of the respondents
A.M. No. RTJ-11-2271 : Lucio O. Magtibay v. Judge resignation letters, and the accompanying quitclaim and release affidavits, as proof of their voluntary
Cader P. Indar, Al Haj., RTC, Branch 14 Cotabato City
termination of employment.
G.R. No. 148607, G.R. NO. 167202, G.R. NO. 167223
The CA stressed that the filing of a complaint for illegal dismissal is inconsistent with resignation.
and G.R. NO. 167271 - Elsa B. Reyes v. Sandiganbayan
and People of the Philippines/Artemio C. Mendoza v. Moreover, it found nothing in the records to substantiate the agency s contention that the respondents
Sandiganbayan and People of the Philippines/Elsa B. resignation was of their own accord; on the contrary, it considered the resignation letters "dubious for
Reyes v. People of the Philippines/Caridad A. Miranda having been lopsidedly-worded to ensure that the petitioners (employers) are free from any liability."17 ς rνl l ςrνl l

v. People of the Philippines


The appellate court likewise refused to give credit to the compromise agreements that the respondents
G.R. No. 148843 : Antioquia Development Corporation, executed before the POEA. It agreed with the NLRC s conclusion that the agreements pertain to the
et al. v. Benjamin P. Rabacal, et al. respondents charge of recruitment violations against the agency distinct from their illegal dismissal
complaint, thus negating forum shopping by the respondents.
G.R. No. 153799, G.R. NO. 157169, G.R. NO. 157327
and G.R. NO. 157506 - Solidbank Union, et al. v. Lastly, the CA found nothing legally wrong in the NLRC correcting itself (upon being reminded by the
Metropolitan Bank and Trust Company; Metropolitan
respondents), by adjusting the respondents salary award on the basis of the unexpired portion of their
Bank and Trust Company v. Solidbank Union, et al.;
Solidbank Corporation, etc., et al. v. Solidbank Union, et
contracts, as enunciated in the Serrano case.
al.; Solidbank Union, et al. v. Metropolitan Bank and
Trust Company The agency moved for, but failed to secure, a reconsideration of the CA decision.18 ς rνll ς rνl l

G.R. Nos. 154470-71 : Bank of Commerce v. Planters The Petition


Development Bank, et al./Bangko Sentral ng Pilipinas
v. Planters Develoment Bank The agency is now before the Court seeking a reversal of the CA dispositions, contending that the CA
erred in: ς ηα ñ rοbl εš νιr†υ α l l α ω l ιbrα rÿ

G.R. No. 161122 : Dare Adventure Farm Corporation v.


Spouses Felix and Nenita Ng, Spouses Martin and 1. affirming the NLRC s finding that the respondents were illegally dismissed;
Azucena Ng and Agripina R. Goc-ong, et al.
2. holding that the compromise agreements before the POEA pertain only to the
G.R. No. 162372 : Government Service Insurane respondents charge of recruitment violations against the agency; and cral aw l i brary

System (GSIS), et al. v. Commission on Audit (COA),


et al. 3. affirming the NLRC s award to the respondents of their salaries for the unexpired portion
of their employment contracts, pursuant to the Serrano ruling.
G.R. No. 162809 : Pacific Ocean Manning Inc., et al. v.
Benjamin D. Penales chanrobl es vi rt ual l aw l i brary

G.R. No. 165355 : Tomas T. Teodoro, et al. v. The agency insists that it is not liable for illegal dismissal, actual or constructive. It submits that as
Continental Cement Corporation correctly found by the labor arbiter, the respondents voluntarily resigned from their jobs, and even
executed affidavits of quitclaim and release; the respondents stated family concerns for their resignation.
G.R. No. 166467 : Danilo R. Querijero, Johnny P. Lilang
and Ivene D. Reyes v. Lina Palmes-Limitar, Isagani G. The agency posits that the letters were duly proven as they were written unconditionally by the
Palmes and the Court of Appeals respondents. It, therefore, assails the conclusion that the respondents resigned under duress or that the
resignation letters were dubious.
G.R. No. 167366 : Dr. Pedro Dennis Cereno and Dr.
Santos Zafe v. Court of Appeals, et al. The agency raises the same argument with respect to the compromise agreements, with quitclaim and

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release, it entered into with Vinuya, Era, Ladea, Enjambre, Ordovez, Alcantara, Anipan and Lumanta
G.R. No. 170787 : Crispino Pangilinan v. Jocelyn N. before the POEA, although it submitted evidence only for six of them. Anipan, Lumanta, Vinuya and
Balatbat substituted by her heirs, namely, Vicente
Ladea signing one document;19 Era20 and Alcantara21 signing a document each. It points out that the
Balatbat, Ana Lucia N. Balatbat, et al.
ς rνl l ς rνl l ς rνl l

agreement was prepared with the assistance of POEA Conciliator Judy Santillan, and was duly and freely
G.R. No. 171107 - Anita C. Vianzon, Heirs of the late signed by the respondents; moreover, the agreement is not conditional as it pertains to all issues
Lucila Candelaria Gonzales v. Minople Macaraeg involved in the dispute between the parties.

G.R. No. 171118 : Park Hotel, J's Playhouse Burgos On the third issue, the agency posits that the Serrano ruling has no application in the present case for
Corp., Inc., and/or Gregg Harbutt, General Manager, three reasons. First, the respondents were not illegally dismissed and, therefore, were not entitled to
Atty. Roberto Enriquez, President, and Bill Percy v. their money claims. Second, the respondents filed the complaint in 2007, while the Serrano ruling came
Manolo Soriano, Lester Gonzales, and Yolanda Badilla out on March 24, 2009. The ruling cannot be given retroactive application. Third, R.A. 10022, which was
enacted on March 8, 2010 and which amended R.A. 8042, restored the subject clause in Section 10 of
G.R. No. 171219 : Atty. Fe Q. Palmiano-Salvador v. R.A. 8042, declared unconstitutional by the Court.
Constantino Angeles substituted by Luz G. Angeles
The Respondents Position
G.R. No. 173036 : Agoo Rice Mill corporation, etc. v.
Land Bank of the Philippines
In their Comment (to the Petition) dated September 28, 2011,22 the respondents ask the Court to deny ς rνl l

G.R. No. 173425 - Fort Bonifacio Develoment the petition for lack of merit. They dispute the agency s insistence that they resigned voluntarily. They
Corporation v. Commissioner of Internal Revenue and stand firm on their submission that because of their unbearable living and working conditions in Dubai,
Revenue District Officer, etc. they were left with no choice but to resign. Also, the agency never refuted their detailed narration of the
reasons for giving up their employment.
G.R. No. 174376 : Zosima Incorporated v. Lilia
Salimbagat and all persons claiming rights under her The respondents maintain that the quitclaim and release affidavits,23 which the agency presented, ς rνl l

betray its desperate attempt to escape its liability to them. They point out that, as found by the NLRC,
G.R. No. 174669 : Belle Corporation v. Erlinda De Leon-
Banks, Rhodora De Leon Tiatco, et al. the affidavits are ready-made documents; for instance, in Lumanta s24 and Era s25 affidavits, they ς rνl l ς rνl l

mentioned a certain G & A International Manpower as the agency which recruited them a fact totally
G.R. No. 174982 : Jose Vicente Atilano II, Heirs of inapplicable to all the respondents. They contend that they had no choice but to sign the documents;
Carlos V. Tan, represented by Conrad K. Tan, Carlos K. otherwise, their release papers and remaining salaries would not be given to them, a submission which
Tan, Camilo Karl Tan, Carisa Rosenda T. Go, Nelida F. the agency never refuted.
Atilano and Isidra K. Tan v. Hon. Judge Tibing A. Asaali,
Presiding Judge of the Regional Trial Court of On the agency s second line of defense, the compromise agreement (with quitclaim and release) between
Zamboanga City and Atlantic Merchandising, Inc. the respondents and the agency before the POEA, the respondents argue that the agreements pertain
only to their charge of recruitment violations against the agency. They add that based on the
G.R. No. 175170 - Misamis Oriental II Electric Service agreements, read and considered entirely, the agency was discharged only with respect to the
Cooperative (MORESCO II) v. Virgilio M. Cagalawan
recruitment and pre-deployment issues such as excessive placement fees, non-issuance of receipts and
G.R. No. 175284 : BP Philippines, Inc. (formerly placement misrepresentation, but not with respect to post-deployment issues such as illegal dismissal,
Burmah Castrol Philippines, Inc.) v. Clark Trading breach of contract, underpayment of salaries and underpayment and nonpayment of overtime pay. The
Corporation respondents stress that the agency failed to controvert their contention that the agreements came about
only to settle their claim for refund of their airfare which they paid for when they were repatriated.
G.R. No. 176343 - Trade and Investment Development
Corporation of the Phil. v. Rosario S. Manalang- Lastly, the respondents maintain that since they were illegally dismissed, the CA was correct in upholding
Demigillo the NLRC s award of their salaries for the unexpired portion of their employment contracts, as enunciated
in Serrano. They point out that the Serrano ruling is curative and remedial in nature and, as such, should
G.R. No. 177438 : Amada Resterio v. People of the
be given retroactive application as the Court declared in Yap v. Thenamaris Ship s Management.26
Philippines
ς rνl l

Further, the respondents take exception to the agency s contention that the Serrano ruling cannot, in any
G.R. No. 177711 : Suico Industrial Corporation and event, be applied in the present case in view of the enactment of R.A. 10022 on March 8, 2010,
Spouses Esmeraldo and Elizabeth Suico v. Hon. Marilyn amending Section 10 of R.A. 8042. The amendment restored the subject clause in paragraph 5, Section
Lagura-Yap, Presiding Judge Regional Trial Court of 10 of R.A. 8042 which was struck down as unconstitutional in Serrano.
Mandaue City, Branch 28, Private Development
Corporation of the Philippines (PDCP), Now First The respondents maintain that the agency cannot raise the issue for the first time before this Court when
E-Bank, and Antonio Agro Development Corporation it could have raised it before the CA with its Petition for Certiorari which it filed on June 8, 2010;27 ς rνl l

otherwise, their right to due process will be violated. The agency, on the other hand, would later claim
G.R. Nos. 177857-58 : Philippine Coconut Producers that it is not barred by estoppel with respect to its reliance on R.A. 10022 as it raised it before the CA in
Federation, Inc. (COCOFED), et al. v. Republic of the
Philippines CA-G.R. SP No. 114353.28 They further argue that RA 10022 cannot be applied in their case, as the law
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is an amendatory statute which is, as a rule, prospective in application, unless the contrary is
G.R. No. 179115 : Asia International Auctioneers, Inc. provided.29 To put the issue to rest, the respondents ask the Court to also declare unconstitutional
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v. Commissioner of Internal Revenue Section 7 of R.A. 10022.

G.R. No. 182045 : Gulf Air Company, Philippines Branch Finally, the respondents submit that the petition should be dismissed outright for raising only questions of
v. Commissioner of Internal Revenue fact, rather than of law.
G.R. No. 182230 : People of the Philippines v. Edgardo The Court s Ruling
Lupac y Flores
The procedural question
G.R. No. 183097 : People of the Philippines v. Antonio
Venturina We deem it proper to examine the facts of the case on account of the divergence in the factual
G.R. No. 183533 : In the Matter of the Petition for the conclusions of the labor arbiter on the one hand, and, of the NLRC and the CA, on the other.30 The ς rνll

Writ of Amparo and the Writ of Habeas Data in favor of arbiter found no illegal dismissal in the respondents loss of employment in Dubai because they
Francis Saez, Francis Saez, petitioner versus Gloria voluntarily resigned; whereas, the NLRC and the CA adjudged them to have been illegally dismissed
Macapagal Arroyo, et al., respondents because they were virtually forced to resign.

G.R. No. 184500 : People of the Philippines v. The merits of the case
Wenceslao Nelmida, et al.
We find no merit in the petition. The CA committed no reversible error and neither did it
G.R. No. 184606 - People of the Philippines v. Calexto commit grave abuse of discretion in affirming the NLRC s illegal dismissal ruling.
D. Fundales
The agency and its principal, Modern Metal, committed flagrant violations of the law on overseas
G.R. No. 185282 : People of the Philippines v. employment, as well as basic norms of decency and fair play in an employment relationship, pushing the
Benjamin Bravo y Estabillo respondents to look for a better employment and, ultimately, to resign from their jobs.
G.R. No. 186002 : Apo Chemical Manufacturing and First. The agency and Modern Metal are guilty of contract substitution. The respondents entered into a
Michael Cheng v. Ronaldo A. Bides
POEA-approved two-year employment contract,31 with Modern Metal providing among others, as earlier
ς rνl l

Gr_187052_2012 discussed, for a monthly salary of 1350 AED. On April 2, 2007, Modern Metal issued to them appointment
letters32 whereby the respondents were hired for a longer three-year period and a reduced salary, from
ς rνl l

G.R. No. 187801 : Heirs of Leonardo Banaag, namely: 1,100 AED to 1,200 AED, among other provisions. Then, on May 5, 2007, they were required to sign new
Marta R. Banaag, et al. v. AMS Farming Corporation employment contracts33 reflecting the same terms contained in their appointment letters, except that
ςrνl l

and Land Bank of the Philippines this time, they were hired as "ordinary laborer," no longer aluminum fabricator/installer. The respondents
complained with the agency about the contract substitution, but the agency refused or failed to act on
G.R. No. 188417 : Milagros De Belen Vda. De Cabalu,
Meliton Cabali, Sps. Angela Cabalu and Rodolfo
the matter.
Talavera and Patricio Abus v. Sps. Renato Tabu and
dolores Laxamana, MTCC, Tarlac city, Branch II The fact that the respondents contracts were altered or substituted at the workplace had never been
denied by the agency. On the contrary, it admitted that the contract substitution did happen when it
G.R. No. 188979 - People of the Philippines v. argued, "as to their claim for underpayment of salary, their original contract mentioned 1350 AED
Christopher Pareja y Velasco monthly salary, which includes allowance while in their Appointment Letters, they were supposed to
receive 1,300 AED. While there was a difference of 50 AED monthly, the same could no longer be claimed
G.R. No. 189486 and G.R. NO. 189699 - Simny G. Guy, by virtue of their Affidavits of Quitclaims and Desistance."34
Geraldine G. Guy, Gladys G. Yao and the Heirs of the
ς rνl l ς rνl l

late Grace G. Cheu v. Gilbert Guy/Simny G. Guy, Clearly, the agency and Modern Metal committed a prohibited practice and engaged in illegal recruitment
Geraldine G. Guy, Gladys G. Yao and the heirs of the
under the law. Article 34 of the Labor Code provides:
late Grace G. Cheu v. The Hon. Ofelia C. Calo, in her
ς η αñ rοbl εš νιr†υ α l lα ω l ιbrαrÿ

capacity as Presiding Judge of the RTC-Mandaluyong


Art. 34. Prohibited Practices. It shall be unlawful for any individual, entity, licensee, or
City-Branch 211 and Gilbert Guy
holder of authority:
G.R. No. 190680 : Commissioner of Internal Revenue

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v. Court of Tax Appeals and Ayala Land, Inc. x x x

G.R. No. 191062 - People of the Philippine v. Mohamad (i) To substitute or alter employment contracts approved and verified by the Department of
Angkob y Milang Labor from the time of actual signing thereof by the parties up to and including the periods
of expiration of the same without the approval of the Secretary of Labor.
G.R. No. 191128 : Carmencita Guizano, substituted by
her heirs namely, Eugenio M. Guizano, Jr., Emmanuel
M. Guizano, et al. v. Reynaldo S. Veneracion
chanrobl es vi rt ual l aw l i brary

G.R. No. 191753 - People of the Philippines v. Ronald


Further, Article 38 of the Labor Code, as amended by R.A. 8042,35 ς rνl l defined "illegal recruitment" to
De Jesus y Apacible and Amelito Dela Cruz y Pua include the following act: ςη α ñ rοbl εš νιr†υ αl l α ω l ιbrα rÿ

G.R. No. 191837 - Maria Consolacion Rivera-Pascual v. (i) To substitute or alter to the prejudice of the worker, employment contracts approved
Spouses Marilyn Lim and George Lim and The Registry and verified by the Department of Labor and Employment from the time of actual signing
of Deeds of Valenzuela City thereof by the parties up to and including the period of the expiration of the same without
the approval of the Department of Labor and Employment.
G.R. No. 192117 and G.R. NO. 192118 - Association of
Southern Tagalog Electric Cooperatives, Inc., et al. v. chanrobl es vi rt ual l aw l i brary

Energy Regulatory Commission/Central Luzon Electric


Cooperatives Association, Inc., et al. v. Energy Second. The agency and Modern Metal committed breach of contract. Aggravating the contract
Regulatory Commission substitution imposed upon them by their employer, the respondents were made to suffer substandard
(shocking, as they put it) working and living arrangements. Both the original contracts the respondents
G.R. No. 192945 - City of Iriga v. Camarines Sur III
signed in the Philippines and the appointment letters issued to them by Modern Metal in Dubai provided
Electric Cooperative Inc.
for free housing and transportation to and from the jobsite. The original contract mentioned free and
G.R. No. 193753 : Living @ Sense, Inc. v. Malayan suitable housing.36 Although no description of the housing was made in the letters of appointment
ς rνl l

Insurance Company, Inc. except: "Accommodation: Provided by the company," it is but reasonable to think that the housing or
accommodation would be "suitable."
G.R. No. 193789 : Alex Q. Naranjo. Donnalyn De
Guzman, Ronald V. Cruz, Rosemarie P. Pimentel and As earlier pointed out, the respondents were made to work from 6:30 a.m. to 6:30 p.m., with a meal
Rowena B. Bardaje v. Biomedica Health Care, Inc. and break of one to one and a half hours, and their overtime work was mostly not paid or underpaid. Their
Carina "Karen" J. Motol living quarters were cramped as they shared them with 27 other workers. The lodging house was in
Sharjah, far from the jobsite in Dubai, leaving them only three to four hours of sleep every workday
G.R. No. 193854 : People of the Philippines v. Dina
because of the long hours of travel to and from their place of work, not to mention that there was no
Dulay y Pascual
potable water in the lodging house which was located in an area where the air was polluted. The
G.R. No. 194014 - Philippine National Bank v. Spouses respondents complained with the agency about the hardships that they were suffering, but the agency
Alejandro and Myrna Reblando failed to act on their reports. Significantly, the agency failed to refute their claim, anchored on the ordeal
that they went through while in Modern Metal s employ.
G.R. No. 195592 - Magdiwang Realty Corporation,
Renato P. Dragon and Esperanza Tolentino v. The Third. With their original contracts substituted and their oppressive working and living conditions
Manila Banking Corporation, substituted by First unmitigated or unresolved, the respondents decision to resign is not surprising. They were compelled by
Sovereign Asset Management [SPV-AMC], Inc. the dismal state of their employment to give up their jobs; effectively, they were constructively
dismissed. A constructive dismissal or discharge is "a quitting because continued employment is rendered
G.R. No. 195619 - Planters Development Bank v. Julie impossible, unreasonable or unlikely, as, an offer involving a demotion in rank and a diminution in
Chandumal
pay."37 ς rνl l ςrνl l

G.R. No. 195909 : Commissioner of Internal Revenue


v. St. Luke'sj Medical Center, Inc./St. Luke's Medical Without doubt, the respondents continued employment with Modern Metal had become unreasonable. A
Center, Inc. v. Commissioner of Internal Revenue reasonable mind would not approve of a substituted contract that pays a diminished salary from 1350
AED a month in the original contract to 1,000 AED to 1,200 AED in the appointment letters, a difference
G.R. No. 196161 : Cyril Calpito Qui v. People of the of 150 AED to 250 AED (not just 50 AED as the agency claimed) or an extended employment (from 2 to
Philippines 3 years) at such inferior terms, or a "free and suitable" housing which is hours away from the job site,
cramped and crowded, without potable water and exposed to air pollution.
G.R. No. 196355 - Bienvenido William D. Lloren v. The
Commission on Elections, et al. We thus cannot accept the agency s insistence that the respondents voluntarily resigned since they
personally prepared their resignation letters38 in their own handwriting, citing family problems as their
G.R. No. 196231 and G.R. NO. 196232 - Emilio A.
ς rνl l

Gonzales III v. Office of the President of the common ground for resigning. As the CA did, we find the resignation letters "dubious,"39 not only for ς rνl l

Philippines, acting through and represented by having been lopsidedly worded to ensure that the employer is rendered free from any liability, but also
Executive Secretary Paquito N. Ochoa, Jr., et for the odd coincidence that all the respondents had, at the same time, been confronted with urgent
al./Wendell Barreras-Sulit v. Atty. Paquito N. Ochoa, family problems so that they had to give up their employment and go home. The truth, as the
Jr., in his capacity as Executive Secretary, Office of the respondents maintain, is that they cited family problems as reason out of fear that Modern Metal would
President, Atty. Dennis F. Ortiz, et al. not give them their salaries and their release papers. Only Era was bold enough to say the real reason for
his resignation to protest company policy.
G.R. No. 197205 : Jessie V. David, represented by his
wife, Ma. Theresa S. David, and chinldren, Katherine
and Kristina David v. OSG Shipmanagement Manila, We likewise find the affidavits40 of quitclaim and release which the respondents executed suspect.
Inc. and/or Michaelmar Shipping Services Obviously, the affidavits were prepared as a follow through of the respondents supposed voluntary
resignation. Unlike the resignation letters, the respondents had no hand in the preparation of the
G.R. No. 197528 - Pert/CPM Manpower Exponent Co., affidavits. They must have been prepared by a representative of Modern Metal as they appear to come
Inc. v. Amando A. Vinuya, et al. from a standard form and were apparently introduced for only one purpose to lend credence to the
resignation letters. In Modern Metal s haste, however, to secure the respondents affidavits, they did not
G.R. No. 198662 - Radio Mindanao Network, Inc. and
check on the model they used. Thus, Lumanta s affidavit41 mentioned a G & A International Manpower
Eric S. Canoy v. Domingo Z. Ybarola, et al.
ς rνl l

as his recruiting agency, an entity totally unknown to the respondents; the same thing is true for Era s
G.R. No. 199084 - Antonia P. Ceron v. Commission on affidavit.42 This confusion is an indication of the employer s hurried attempt to avoid liability to the
ς rνl l

Elections, et al. respondents.

G.R. No. 199082 : Jose Miguel T. Arroyo v. Department The respondents position is well-founded. The NLRC itself had the same impression, which we find in
of Justice, et al./Benjamin S. Abalos, Sr. v. Hon. Leila order and hereunder quote: ς η α ñ rοblεš νιr†υα l l α ω l ιbrα rÿ

de Lima, in her capacity as Secretary of Justice, et


al./Gloria Macapagal-Arroyo v. Commission on The acts of respondents of requiring the signing of new contracts upon reaching the place
Elections, etc., et al. of work and requiring employees to sign quitclaims before they are paid and repatriated to
the Philippines are all too familiar stories of despicable labor practices which our employees
G.R. No. 199547 : The New Philippine Skylanders, Inc. are subjected to abroad. While it is true that quitclaims are generally given weight,
and/or Jennifer M. Eñano-Bote v. Francisco N. Dakila
however, given the facts of the case, We are of the opinion that the complainants-
G.R. No. 200529 : People of the Philippines v. Juanito appellants executed the same under duress and fear that they will not be allowed to return
Garcia y Gumay @ Wapog to the Philippines.43 ς rνl l ςrνl l

G.R. No. 200951 - People of the Philippines v. Jose chanrobl es vi rt ual l aw l i brary

Almodiel alias "Dodong Astrobal"


Fourth. The compromise agreements (with quitclaim and release)44 between the respondents and the ς rνl l

G.R. No. 202914 : Government Service Insurance agency before the POEA did not foreclose their employer-employee relationship claims before the NLRC.
System, etc. v. Heidi B. Chua The respondents, except Ordovez and Enjambre, aver in this respect that they all paid for their own
airfare when they returned home45 and that the compromise agreements settled only their claim for ς rνl l

refund of their airfare, but not their other claims.46 Again, this submission has not been refuted or ς rνl l

denied by the agency.

On the surface, the compromise agreements appear to confirm the agency s position, yet a closer
examination of the documents would reveal their true nature. Copy of the compromise agreement is a
standard POEA document, prepared in advance and readily made available to parties who are involved in
disputes before the agency, such as what the respondents filed with the POEA ahead (filed in 2007) of
the illegal dismissal complaint before the NLRC (filed on March 5, 2008).

Under the heading "Post-Deployment," the agency agreed to pay Era47 and Alcantara48 P 12,000.00 ς rνl l ς rνl l

each, purportedly in satisfaction of the respondents claims arising from overseas employment, consisting
of unpaid salaries, salary differentials and other benefits, including money claims with the NLRC. The last
document was signed by (1) Anipan, (2) Lumanta, (3) Ladea, (4) Vinuya, (5) Jonathan Nangolinola, and
(6) Zosimo Gatchalian (the last four signing on the left hand side of the document; the last two were not

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among those who filed the illegal dismissal complaint).49 ς rνl l ς rνl l

The agency agreed to pay them a total of P 72,000.00. Although there was no breakdown of the
entitlement for each of the six, but guided by the compromise agreement signed by Era and Alcantara,
we believe that the agency paid them P 12,000.00 each, just like Era and Alcantara.

The uniform insubstantial amount for each of the signatories to the agreement lends credence to their
contention that the settlement pertained only to their claim for refund of the airfare which they
shouldered when they returned to the Philippines. The compromise agreement, apparently, was intended
by the agency as a settlement with the respondents and others with similar claims, which explains the
inclusion of the two (Nangolinola and Gatchalian) who were not involved in the case with the NLRC.
Under the circumstances, we cannot see how the compromise agreements can be considered to have
fully settled the respondents claims before the NLRC illegal dismissal and monetary benefits arising from
employment. We thus find no reversible error nor grave abuse of discretion in the rejection by the NLRC
and the CA of said agreements.

Fifth. The agency s objection to the application of the Serrano ruling in the present case is of no
moment. Its argument that the ruling cannot be given retroactive effect, because it is curative and
remedial, is untenable. It points out, in this respect, that the respondents filed the complaint in 2007,
while the Serrano ruling was handed down in March 2009. The issue, as the respondents correctly argue,
has been resolved in Yap v. Thenamaris Ship s Management,50 where the Court sustained the ς rνl l

retroactive application of the Serrano ruling which declared unconstitutional the subject clause in Section
10, paragraph 5 of R.A. 8042, limiting to three months the payment of salaries to illegally dismissed
Overseas Filipino Workers.

Undaunted, the agency posits that in any event, the Serrano ruling has been nullified by R.A. No. 10022,
entitled "An Act Amending Republic Act No. 8042, Otherwise Known as the Migrant Workers and Overseas
Filipinos Act of 1995, As Amended, Further Improving the Standard of Protection and Promotion of the
Welfare of Migrant Workers, Their Families and Overseas Filipinos in Distress, and For Other
Purposes."51 It argues that R.A. 10022, which lapsed into law (without the Signature of the President)
ς rνl l

on March 8, 2010, restored the subject clause in the 5th paragraph, Section 10 of R.A. 8042. The
amendment, contained in Section 7 of R.A. 10022, reads as follows: ς η α ñrοbl εš νιr†υ α l l α ω l ιbrα rÿ

In case of termination of overseas employment without just, valid or authorized cause as


defined by law or contract, or any unauthorized deductions from the migrant worker s
salary, the worker shall be entitled to the full reimbursement "of" his placement fee and
the deductions made with interest at twelve percent (12%) per annum, plus his salaries
for the unexpired portion of his employment contract or for three (3) months for every
year of the unexpired term, whichever is less.52 (emphasis ours) ς rνl l

chanrobl es vi rt ual l aw l i brary

This argument fails to persuade us. Laws shall have no retroactive effect, unless the contrary is
provided.53 By its very nature, the amendment introduced by R.A. 10022 restoring a provision of R.A.
ς rνl l

8042 declared unconstitutional cannot be given retroactive effect, not only because there is no express
declaration of retroactivity in the law, but because retroactive application will result in an impairment of a
right that had accrued to the respondents by virtue of the Serrano ruling - entitlement to their salaries
for the unexpired portion of their employment contracts.

All statutes are to be construed as having only a prospective application, unless the purpose and
intention of the legislature to give them a retrospective effect are expressly declared or are necessarily
implied from the language used.54 We thus see no reason to nullity the application of the Serrano ruling ς rνl l

in the present case. Whether or not R.A. 1 0022 is constitutional is not for us to rule upon in the present
case as this is an issue that is not squarely before us. In other words, this is an issue that awaits its
proper day in court; in the meanwhile, we make no pronouncement on it.

WHEREFORE, premises considered, the petition is DENIED. The assailed Decision dated May 9, 2011
and the Resolution dated June 23, 2011 of the Court of Appeals in CA-G.R. SP No. 114353 are
AFFIRMED. Let this Decision be brought to the attention of the Honorable Secretary of Labor and
Employment and the Administrator of the Philippine Overseas Employment Administration as a black
mark in the deployment record of petitioner Pert/CPM Manpower Exponent Co., Inc., and as a record that
should be considered in any similar future violations.

Costs against the petitioner. ς rα l α ωl ιbrα rÿ

SO ORDERED.

Endnotes:

* Designated Additional Member vice Associate Justice Estela M. Perlas-Bemabe per Raffle
dated September 5, 2012.

1 ς rνl l Rollo, pp. 27-64; filed under Rule 45 ot he Rules of Court.

2 Id. at 107-121; penned by Associate Justice Bienvenido L. Reyes (now a member of this
ς rνl l

Court), and concurred in by Associate Justices Estela M. Perlas- Bernabe (now also a
member of this Court) and Elihu A. Ybanez.
3 ς rνl l Id. at 138-139.
4 ς rνl l Id. at 316-322.
5 ς rνl l Id. at 323-326.
6 ς rνl l Id. at 327-333.
7 ς rνl l Id. at 334, 336-339.
8 ς rνl l Id. at 269, 278, 282 and 296.
9 ς rνl l Id. at 286.
10 ς rνl l Id. at 141-154.
11 ς rνl l Id. at 155-162.
12 ς rνl l Id. at 160.
13 ς rνl l G.R. No. 167614, March 24, 2009, 582 SCRA 254.
14 ς rνl l Rollo, pp. 246-251; resolution dated September 2, 2009.
15 ς rνl l Id. at 250.

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16 ς rνl l Supra note 2.


17 ς rνl l Id. at 118.
18 ς rνl l Supra note 3.
19 ς rνl l Rollo, p. 344.
20 ς rνl l Id. at 345.
21 ς rνl l Id. at 345-A.

22 ς rνl l Id. at 453-465.

23 ς rνl l Id. at 268, 272, 277, 280, 281, 285, 289 and 294.

24 ς rνl l Id. at 277.

25 ς rνl l Id. at 285.

26 ς rνl l G.R. No. 179532, May 30, 2011, 649 SCRA 369.

27 ς rνl l Rollo, p. 205; date when petition was stamped received by the CA.

28 ς rνl l Id. at 469-470.

29 ς rνl l CIVIL CODE, Article 4.

30 Fujitsu Computer Products Corp. of the Phils. v. Court of Appeals, 494 Phil. 697, 716
ς rνl l

(2005).

31 ς rνl l Supra note 4.

32 ς rνl l Supra note 6.

33 ς rνl l Supra note 7.


34 ς rνl l Rollo, p. 342.
35 ς rνl l Migrant Workers and Overseas Filipinos Act of 1995.
36 ς rνl l Supra note 4.
37 C.A. Azucena, Jr., The Labor Code (with Comments and Cases), Volume II, Sixth Ed.,
ς rνl l

2007, p. 889, citing Philippine Japan Active Carbon Corporation v. NLRC, 253 Phil. 149
(1989).

38 ς rνl l Supra note 8.

39 ς rνl l Supra note 2, at 118.

40 ς rνl l Rollo, pp. 268, 271, 272, 277, 280, 281, 285 and 289.

41 ς rνl l Id. at 277.

42 ς rνl l Id. at 285.

43 ς rνl l Id. at 159-160.

44 ς rνl l Supra notes 19, 20 and 21.

45 ς rνl l Rollo, p. 307.

46 ς rνl l Id. at 299.

47 ς rνl l Id.

48 ς rνl l Id. at 300.

49 ς rνl l Id. at 298.

50 ς rνl l Supra note 26.

51 ς rνl l OFFICIAL GAZETTE, Vol. 106, No. 19, May 10, 2010, pp. 2729-2746.

52 ς rνl l Id. at 2734.

54 A.M. Tolentino, Civil Code of the Philippines, Commentaries and Jurisprudence, 1990,
ς rνl l

Vol. 1, p. 28.

chanrobl es vi rt ual l aw l i brary

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