Case Digest: Banahaw Broadcasting vs. Pacana III
G.R. No.171673: May 30, 2011
BANAHAW BROADCASTING CORPORATION, Petitioner, v. 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, Respondents.
LEONARDO-DE CASTRO, J.:
Respondents in the case at bar (the DXWG personnel), are 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 a complaint for illegal dismissal, unfair labor practice, reimbursement of unpaid Collective Bargaining Agreement (CBA) benefits, and attorneys fees against IBC and BBC.
On June 21, 1996, Labor Arbiter (LA) decided in favour of the DXWG personnel.
Both, parties, however, appealed to the National Labor Relations Commission (NLRC).
On May 15, 1997, a Motion to Dismiss, Release, Waiver and Quitclaim, 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.The NLRC granted the Motion with respect to IBC.
BBC filed an MR.
On December 12, 1997, the NLRC issued a Resolution vacating the Decision of LA 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.
On October 15, 1998, the new LA rendered a Decision adjudging BBC to be liable for the same amount discussed in the vacated original Decision of the previous LA.
Both BBC and respondents appealed to the NLRC.BBC challenged the monetary award itself. In the same Memorandum of Appeal, BBC incorporated a Motion for the Recomputation of the Monetary Award (of the Labor Arbiter),in order that the appeal bond may be reduced.
On September 16, 1999, the NLRC issued an Order Denying the Motion for the Recomputation of the Monetary Award. The NLRC ordered BBC to post the required bond within 10 days from receipt of said Order, with a warning that noncompliance will cause the dismissal of the appeal for non-perfection.Instead of complying with the Order to post the required bond, BBC filed a Motion for Reconsideration,alleging this time that since it is wholly owned by the Republic of the Philippines, it need not post an appeal bond.
On November 22, 1999, the NLRC rendered its Decision. In said Decision, the NLRC denied the MR of BBC and accordingly dismissed the appeal of BBC for non-perfection.
BBC filed an MR which was denied by the NLRC.
BBC filed with the CA a Petition for Certiorari under Rule 65.
On April 15, 2005, the CA rendered the assailed Decision denying BBCs Petition forCertiorari.The CA held that BBC, though owned by the government, is a corporation with a personality distinct from the Republic or any of its agencies or instrumentalities, and therefore do not partake in the latter's exemption from the posting of appeal bonds.
The Court of Appeals denied the MR.Hence, this Petition for Review.
ISSUE: Whether BBC is exempt from posting an appeal bond.
HELD: Petition denied.
GOCCs NOT EXEMPT FROM POSTING BOND
Generally, the government and all the attached agencies with no legal personality distinct from the former are exempt from posting appeal bonds, whereas government-owned and controlled corporations (GOCCs) are not similarly exempted except if it is sued in relation to its governmental functions. Here, BBC was organized as a private corporation, sequestered in the 1980s and the ownership of which was subsequently transferred to the government. Its primary function is to engage in commercial radio and television broadcasting. It is therefore clear that BBCs function is commercial or proprietary and not governmental.As such, BBC is not entitled to an exemption from the posting of an appeal bond.
FAILURE TO POST BOND CONSTITUTED NON-PERFECTION OF APPEAL
In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Commission in the amount equivalent to the monetary award in the judgment appealed from.The posting of the appeal bond within the period provided by law is not merely mandatory but jurisdictional.The failure on the part of BBC to perfect the appeal thus had the effect of rendering the judgment final and executory.
BANAHAW BROADCASTING CORPORATION, Petitioner, v. 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, Respondents.
LEONARDO-DE CASTRO, J.:
Respondents in the case at bar (the DXWG personnel), are 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 a complaint for illegal dismissal, unfair labor practice, reimbursement of unpaid Collective Bargaining Agreement (CBA) benefits, and attorneys fees against IBC and BBC.
On June 21, 1996, Labor Arbiter (LA) decided in favour of the DXWG personnel.
Both, parties, however, appealed to the National Labor Relations Commission (NLRC).
On May 15, 1997, a Motion to Dismiss, Release, Waiver and Quitclaim, 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.The NLRC granted the Motion with respect to IBC.
BBC filed an MR.
On December 12, 1997, the NLRC issued a Resolution vacating the Decision of LA 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.
On October 15, 1998, the new LA rendered a Decision adjudging BBC to be liable for the same amount discussed in the vacated original Decision of the previous LA.
Both BBC and respondents appealed to the NLRC.BBC challenged the monetary award itself. In the same Memorandum of Appeal, BBC incorporated a Motion for the Recomputation of the Monetary Award (of the Labor Arbiter),in order that the appeal bond may be reduced.
On September 16, 1999, the NLRC issued an Order Denying the Motion for the Recomputation of the Monetary Award. The NLRC ordered BBC to post the required bond within 10 days from receipt of said Order, with a warning that noncompliance will cause the dismissal of the appeal for non-perfection.Instead of complying with the Order to post the required bond, BBC filed a Motion for Reconsideration,alleging this time that since it is wholly owned by the Republic of the Philippines, it need not post an appeal bond.
On November 22, 1999, the NLRC rendered its Decision. In said Decision, the NLRC denied the MR of BBC and accordingly dismissed the appeal of BBC for non-perfection.
BBC filed an MR which was denied by the NLRC.
BBC filed with the CA a Petition for Certiorari under Rule 65.
On April 15, 2005, the CA rendered the assailed Decision denying BBCs Petition forCertiorari.The CA held that BBC, though owned by the government, is a corporation with a personality distinct from the Republic or any of its agencies or instrumentalities, and therefore do not partake in the latter's exemption from the posting of appeal bonds.
The Court of Appeals denied the MR.Hence, this Petition for Review.
ISSUE: Whether BBC is exempt from posting an appeal bond.
HELD: Petition denied.
GOCCs NOT EXEMPT FROM POSTING BOND
Generally, the government and all the attached agencies with no legal personality distinct from the former are exempt from posting appeal bonds, whereas government-owned and controlled corporations (GOCCs) are not similarly exempted except if it is sued in relation to its governmental functions. Here, BBC was organized as a private corporation, sequestered in the 1980s and the ownership of which was subsequently transferred to the government. Its primary function is to engage in commercial radio and television broadcasting. It is therefore clear that BBCs function is commercial or proprietary and not governmental.As such, BBC is not entitled to an exemption from the posting of an appeal bond.
FAILURE TO POST BOND CONSTITUTED NON-PERFECTION OF APPEAL
In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Commission in the amount equivalent to the monetary award in the judgment appealed from.The posting of the appeal bond within the period provided by law is not merely mandatory but jurisdictional.The failure on the part of BBC to perfect the appeal thus had the effect of rendering the judgment final and executory.
