Case Digest: Espino v. NLRC & PAL, G.R. Nos. 109642-43, January 5, 1995

 Labor Law | NLRC

  • Leslie W. Espino, an Executive Vice President-Chief Operating Officer of Philippine Airlines (PAL), was terminated in December 1990 by PAL's Board of Directors due to findings related to four cases allegedly prejudicing PAL and the Philippine Government.
  • Espino began employment in 1960, progressively promoted, and last elected in October 1989 for a one-year term.
  • Administrative charges were filed against Espino in July 1990, leading to suspension pending investigation by panels created by then-President Corazon C. Aquino.
  • PAL deferred the election of certain senior officers during an organizational meeting on October 19, 1990.
  • Board resolutions on January 19, 1991, and August 9, 1991, deemed Espino resigned for loss of confidence and acts inimical to PAL's interests.
  • Espino filed an illegal dismissal complaint with the National Labor Relations Commission (NLRC) seeking reinstatement and damages.
  • PAL challenged NLRC jurisdiction, claiming the Aquino panels turned PAL into a "parallel arbitration unit," and appealed the Labor Arbiter's decision favorable to Espino.
  • NLRC: Dismissed the complaint stating lack of jurisdiction and nullifying the writ of execution.
  • Espino filed for certiorari, arguing NLRC's jurisdiction under Article 217(2) of the Labor Code.
WoN NLRC has jurisdiction over the case. NO

The court asserts that SEC, not NLRC, has original and exclusive jurisdiction over cases involving the removal of corporate officers, citing Presidential Decree No. 902-A.

The Executive Vice President-Chief Operating Officer position, from which Espino claims dismissal, is an elective corporate office, and the SEC has jurisdiction over intra-corporate matters.

The court rejects Espino's reliance on estoppel, emphasizing that jurisdiction issues can be raised at any time.

NLRC's dismissal of the complaint is upheld, finding no grave abuse of discretion.
The decision is affirmed, allowing Espino to seek relief in the appropriate forum without prejudice.

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