Nothing Special   »   [go: up one dir, main page]

Mainland Construction, Co., Inc., VS. Movilla: G.R. No. 118088, November

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 6

MAINLAND CONSTRUCTION, CO., INC.

,
VS.
MOVILLA

G.R. No. 118088, November


23, 1995
FACTS
◦ Movilla was hired as accountant by Mainland Construction in 1977 and as an employee, was
registered with the SSS, Medicare, and ECC. In 1987, the board of directors elected Movilla as
board member and Administrative Manager. Meantime, DOLE had conducted a routine
inspection on the corporation and found several labor law violations. DOLE ordered the
corporation to pay its thirteen employees, including Movilla, the unpaid holiday pay, service
incentive leave, etc. The employer paid all the employees listed in the DOLE'S order, but not
Movilla; hence, he filed a complaint with the NLRC Regional Arbitration Branch XI, Davao
City. On February 29, 1992, Movilla died and was substituted for by his heirs. The Labor
Arbiter rendered judgment on June 26, 1992, dismissing the complaint on the ground of lack
of jurisdiction.
FACTS
◦ The decision said in part:
What Movilla is claiming against respondents are his alleged unpaid salaries and separation
pay as Administrative Manager of the corporation for which position he was appointed by the
Board of Directors. His claims therefore, fall under the jurisdiction of the Securities and
Exchange Commission because this is not a simple labor problem, but a matter that comes
within the area of corporate affairs and management, and is in fact a corporate controversy in
contemplation of the Corporation Code. (Fortune Cement Corporation vs. NLRC, et al, G.R
No. 79762, January 24, 1991.) The heirs appealed to the NLRC which ruled that the issue was
a labor dispute between an employee and petitioner corporation and, thus, the NLRC had
jurisdiction over the case.
ISSUE

◦ 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.

You might also like