Mainland Construction, Co., Inc., VS. Movilla: G.R. No. 118088, November
Mainland Construction, Co., Inc., VS. Movilla: G.R. No. 118088, November
Mainland Construction, Co., Inc., VS. Movilla: G.R. No. 118088, November
,
VS.
MOVILLA
◦ Whether the NLRC or the SEC has jurisdiction over the controversy
RULING
◦ The NLRC, replied the Supreme Court. In order that the SEC can take cognizance of
a case, the controversy must pertain to any of the following relationships: a) between
the corporation, partnership or association and the public; b) between the corporation,
partnership or association and its stockholders, partners, members or officers; c)
between the corporation, partnership or association and the State as far as its
franchise, permit or license to operate is concerned; and d) among the stockholders,
partners or associates themselves. The fact that the parties involved in the controversy
are all stockholders or that the parties involved are the stockholders and the
corporation does not necessarily place the dispute -within the ambit of the jurisdiction
of SEC.
Things to note!
◦ The better policy to be followed in determining jurisdiction over a case should
be to consider concurrent factors such as the status or relationship of the
parties or the nature of the question that is the subject of their controversy. In
the absence of any one of these factors, the SEC will not have jurisdiction.
Furthermore, it does not necessarily follow that every conflict between
the corporation and its stockholders would involve such corporate matters as
only the SEC can resolve in the exercise of its adjudicatory or quasi-judicial
powers.