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    REnato Real Vs Sangu

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    attycertfiedpublicaccountant
    1. Renato Real filed a complaint for illegal dismissal against Sangu Philippines, Inc. where he worked as Manager. The Labor Arbiter ruled in Real's favor but the NLRC dismissed the case, finding it to be an intra-corporate controversy that fell under the jurisdiction of regular courts. 2. The Supreme Court granted Real's petition and ruled that the case was not an intra-corporate controversy. For a case to be considered intra-corporate, it must involve an intra-corporate relationship between the parties and pertain to matters that are intrinsically connected to regulating the corporation. 3. The Court found that Real was not truly a corporate officer since Sangu failed to prove he was appointed by the board

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    REnato Real Vs Sangu

    Uploaded by

    attycertfiedpublicaccountant
    131 views2 pages
    1. Renato Real filed a complaint for illegal dismissal against Sangu Philippines, Inc. where he worked as Manager. The Labor Arbiter ruled in Real's favor but the NLRC dismissed the case, finding it to be an intra-corporate controversy that fell under the jurisdiction of regular courts. 2. The Supreme Court granted Real's petition and ruled that the case was not an intra-corporate controversy. For a case to be considered intra-corporate, it must involve an intra-corporate relationship between the parties and pertain to matters that are intrinsically connected to regulating the corporation. 3. The Court found that Real was not truly a corporate officer since Sangu failed to prove he was appointed by the board

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    REnato Real vs Sangu

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    1. Renato Real filed a complaint for illegal dismissal against Sangu Philippines, Inc. where he worked as Manager. The Labor Arbiter ruled in Real's favor but the NLRC dismissed the case, finding it to be an intra-corporate controversy that fell under the jurisdiction of regular courts. 2. The Supreme Court granted Real's petition and ruled that the case was not an intra-corporate controversy. For a case to be considered intra-corporate, it must involve an intra-corporate relationship between the parties and pertain to matters that are intrinsically connected to regulating the corporation. 3. The Court found that Real was not truly a corporate officer since Sangu failed to prove he was appointed by the board

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    131 views2 pages

    REnato Real Vs Sangu

    Uploaded by

    attycertfiedpublicaccountant
    1. Renato Real filed a complaint for illegal dismissal against Sangu Philippines, Inc. where he worked as Manager. The Labor Arbiter ruled in Real's favor but the NLRC dismissed the case, finding it to be an intra-corporate controversy that fell under the jurisdiction of regular courts. 2. The Supreme Court granted Real's petition and ruled that the case was not an intra-corporate controversy. For a case to be considered intra-corporate, it must involve an intra-corporate relationship between the parties and pertain to matters that are intrinsically connected to regulating the corporation. 3. The Court found that Real was not truly a corporate officer since Sangu failed to prove he was appointed by the board

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    of 2

    G.R. No.

    168757 January 19, 2011


    Jurisdiction over Corpo controversies

    SEC

    Reorganization

    Decree;

    RENATO REAL,
    Petitioner,vs.
    SANGU PHILIPPINES, INC. and/ or KIICHI ABE,
    Respondents.
    FACTS:
    Renato Real was the Manager of respondent corporation Sangu Philippines, Inc.
    which is engaged inthe business of providing manpower for general services. He
    filed a complaint for illegal dismissalagainst the respondents stating that he was
    neither notified of the Board meeting during which hisremoval was discussed nor
    was he formally charged with any infraction.Respondents, on the other hand, said
    that Real committed gross acts of misconduct detrimental to thecompany since
    2000. The Labor Arbiter (LA) declared petitioner as having been illegally
    dismissed.SANGU
    appealed to National
    petitioners status

    Labor

    Relations

    Commission

    (NLRC)

    and

    established

    as a stockholder and as a corporate officer and hence, his action against respondent
    corporation is anintra-corporate controversy over which the Labor Arbiter has no
    jurisdiction. NLRC modified the LAs decision. On appeal, the Court of Appeals
    affirmed the decision of NLRC.Hence, this petition to the Supreme Court.
    ISSUE:
    Whether or not petitioners complaint for illegal dismissal constitutes an
    intra-corporate controversy.
    RULING: The case is not an intra-corporate controversy.
    The Supreme Court GRANTED the petition. The assailed decision of the Court of
    Appeals insofar as it
    affirmed the National Labor Relations Commissions dismissal of petitioners
    complaint for lack of jurisdiction, was REVERSED and SET ASIDE. The Decision of
    the Labor Arbiter with respect topetitioner Renato Real was AFFIRMED.
    To determine whether a case involves an intra-corporate controversy
    , and is to be heard anddecided by the branches of the RTC specifically designated
    by the Court to try and decide such cases,
    two elements must concur
    : (a) the status or relationship of the parties, and (2) the nature of thequestion that
    is the subject of their controversy.The first element requires that the controversy
    must arise out of intra-corporate or partnership relationsbetween any or all of the
    parties and the corporation x x . The second element requires that the
    disputeamong the parties be intrinsically connected with the regulation of the
    corporation. If the nature of thecontroversy involves matters that are purely civil in
    character, necessarily, the case does not involve anintra-corporate controversy. As
    earlier stated, complainant-appellee Renato Real was
    hired

    as the manager of respondent-appellant Sangu. As such, his position was reposed


    with full trust and confidence.While respondents repeatedly claim that petitioner
    was appointed as Manager pursuant to the
    corporations By
    -Laws and by the fact that
    they failed to produce any documentary evidence toprove that petitioner was
    appointed
    thereto by action or with approval of the board, only leads the Court to believe
    otherwise. It has been consistently held that "[a]n office is created by the charter
    of the corporation and the officer is elected (or appointed) by the directors or
    stockholders." Clearly here,respondents failed to prove that petitioner was
    appointed by the board of directors. Thus, the SupremeCourt cannot subscribe to
    their claim that petitioner is a corporate officer. Having said this, the Court find that
    there is no intra-corporate relationship between the parties insofar as petitioners
    complaint for illegal dismissal is concerned and that same does not satisfy the
    relationship test.The Supreme Court thus find no merit in respondents contention
    that the fact alone that petitioner is a stockholder and director of respondent
    corporation automatically classifies this case as an intra-corporate controversy. To
    reiterate, not all conflicts between the stockholders and the corporation
    areclassified as intra-corporate. There are other factors to consider in determining
    whether the disputeinvolves corporate matters as to consider them as intracorporate controversies.

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