Title Garcia v. KJ Commercial: G. R. No. 196830

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TITLE G. R. No.

196830

Garcia v. KJ Commercial

PONENTE: Carpio, J. DATE:

February 29, 2012

DOCTRINE:

Section 2, Article I of the Rules of Procedure of the NLRC states: These Rules shall be liberally
construed to carry out the objectives of the Constitution, the Labor Code of the Philippines and
other relevant legislations, and to assist the parties in obtaining just, expeditious and
inexpensive resolution and settlement of labor disputes. In order to give full effect to the
provisions on motion to reduce bond, the appellant must be allowed to wait for the ruling of the
NLRC on the motion even beyond the 10-day period to perfect an appeal. If the NLRC grants
the motion and rules that there is indeed meritorious ground and that the amount of the bond
posted is reasonable, then the appeal is perfected. If the NLRC denies the motion, the
appellant may still file a motion for reconsideration as provided under Section 15, Rule VII of the
Rules. If the NLRC grants the motion for reconsideration and rules that there is indeed
meritorious ground and that the amount of the bond posted is reasonable, then the appeal is
perfected. If the NLRC denies the motion, then the decision of the labor arbiter becomes final
and executory.

FACTS:

KJ Commercial (KJC) is a sole proprietorship which owns trucks and engages in the business
of distributing cement products. On different dates, KJC employed as truck drivers and truck
helpers herein petitioners Cesar Garcia, Carlos Razon, Alberto De Guzman, Tomas Razon,
Omer Palo, Rizalde Valencia, Allan Bbasa, Jessie Gacia, Juanito Paras, Alejandro Orag,
Rommel Pangan, Ruel Soliman, and Cenen Canlapan.

On Jan. 2, 2006, Garcia, et al. demanded for a P40 daily salary increase. To pressure KJC to
grant their demand, they stopped working and abandoned their trucks at Northern Cement Plan
Station in Sison, Pangasinan.

On Feb. 3, 2006, Garcia, et al. filed with the LA a complaint for illegal dismissal, underpayment
of salary, and non-payment of SIL and 13th month pay.

LA held that KJC illegally dismissed Garcia, et al. KJC appealed to the NLRC. It filed a motion
to reduce bond and posted a P50,000 cash bond.

NLRC ruled on March 9, 2009, the NLRC dismissed the appeal. KJC filed an MR and posted a
P2,562,930 surety bond.

On Feb. 8, 2010, the NLRC granted the motion and set aside the LA’s decision. Garcia, et al.
filed an MR which was denied on June 25, 2010.

CA ruled on April 21, 2011, the CA affirmed the NLRC’s decision. Hence, this petition for review
on certiorari.

ISSUE/S

Whether or not the motion to reduce bond stop the running of the period to appeal?

RULING

Yes. KJC’s filing of a motion to reduce bond and delayed posting of the P2,562,930 surety bond
did not render the LA’s decision final and executory.

The Rules of Procedure of the NLRC allows the filing of a motion to reduce bond subject to two
conditions:

1. There is meritorious ground; and

2. A bond in a reasonable amount is posted.

The filing of a motion to reduce bond and compliance with the two conditions stop the running
of the period to perfect an appeal. The NLRC has full discretion to grant or deny the motion to
reduce bond,21 and it may rule on the motion beyond the 10-day period within which to perfect
an appeal. Obviously, at the time of the filing of the motion to reduce bond and posting of a
bond in a reasonable amount, there is no assurance whether the appellants motion is indeed
based on meritorious ground and whether the bond he or she posted is of a reasonable
amount. Thus, the appellant always runs the risk of failing to perfect an appeal.

Section 2, Article I of the Rules of Procedure of the NLRC states: These Rules shall be liberally
construed to carry out the objectives of the Constitution, the Labor Code of the Philippines and
other relevant legislations, and to assist the parties in obtaining just, expeditious and
inexpensive resolution and settlement of labor disputes. In order to give full effect to the
provisions on motion to reduce bond, the appellant must be allowed to wait for the ruling of the
NLRC on the motion even beyond the 10-day period to perfect an appeal. If the NLRC grants
the motion and rules that there is indeed meritorious ground and that the amount of the bond
posted is reasonable, then the appeal is perfected. If the NLRC denies the motion, the
appellant may still file a motion for reconsideration as provided under Section 15, Rule VII of the
Rules. If the NLRC grants the motion for reconsideration and rules that there is indeed
meritorious ground and that the amount of the bond posted is reasonable, then the appeal is
perfected. If the NLRC denies the motion, then the decision of the labor arbiter becomes final
and executory.

KJ Commercial filed a motion to reduce bond and posted a P50,000 cash bond. When the
NLRC denied its motion, KJ Commercial filed a motion for reconsideration and posted the full
P2,562,930 surety bond. The NLRC then granted the motion for reconsideration.

Furthermore, KJ Commercial showed willingness to post a partial bond. In fact, it posted a


P50,000 cash bond. Also, KJ Commercial immediately posted the full amount of the bond when
it filed its motion for reconsideration of the NLRC’s decision.

The petition was denied. CA decision was affirmed.

DISPOSITIVE PORTION:

WHEREFORE, the Court DENIES the petition and AFFIRMS the 29 April 2011 Decision of the Court of Appeals
in CA-G.R. SP No. 115851.|||

ROCHELLE

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