Banahaw Broadcasting Corp. v. Pacana
REITERATIONFacts
The Antecedents: Respondents, DXWG personnel, filed a complaint for illegal dismissal, unfair labor practice, reimbursement of unpaid Collective Bargaining Agreement (CBA) benefits, and attorney's fees against Intercontinental Broadcasting Corporation (IBC) and Banahaw Broadcasting Corporation (BBC). Labor Arbiter Abdullah L. Alug awarded the DXWG personnel a total of ⁜⁜12,002,157.28 as unpaid CBA benefits. Procedural History: IBC and the DXWG personnel filed a Motion to Dismiss, Release, Waiver and Quitclaim, leading to the dismissal of the case against IBC. BBC filed a Motion for Reconsideration, arguing it was not properly served summons and that the quitclaim in favor of IBC extinguished BBC's liability. The National Labor Relations Commission (NLRC) vacated the Labor Arbiter's decision and remanded the case. Labor Arbiter Nicodemus G. Palangan rendered a new decision ordering BBC to pay the DXWG personnel ⁜⁜12,002,157.28 plus attorney's fees. Both parties appealed. The NLRC denied BBC's Motion for Recomputation of the Monetary Award and ordered BBC to post an appeal bond. BBC filed a Motion for Reconsideration, claiming exemption as a government-owned entity. The NLRC denied this motion and dismissed BBC's appeal for non-perfection. The Court of Appeals denied BBC's Petition for Certiorari, affirming the NLRC's dismissal and declaring the Labor Arbiter's decision final and executory. The Petition: BBC filed a Petition for Review on Certiorari assailing the Court of Appeals' Decision and Resolution, primarily arguing its exemption from posting an appeal bond due to its status as a government-owned entity.
Issue(s)
Whether Banahaw Broadcasting Corporation (BBC), as a government-owned and controlled corporation (GOCC), is exempt from posting an appeal bond. Whether the NLRC committed grave abuse of discretion in dismissing BBC's appeal for failure to post an appeal bond.
Ruling
The Supreme Court denied the Petition for Review on Certiorari, affirming the Decision of the Court of Appeals. The Court held that BBC's appeal was correctly dismissed by the NLRC for non-perfection due to failure to post the required appeal bond. Consequently, the Labor Arbiter's decision became final and executory.
Ratio Decidendi
On the issue of exemption from posting an appeal bond: The Court reiterated the general rule that government-owned and controlled corporations (GOCCs) are not exempt from posting appeal bonds, unlike the Republic itself or its agencies without distinct legal personalities. This is because GOCCs have separate legal personalities, and the presumption of solvency of the State does not automatically extend to them. However, an exception exists if the GOCC functions as a "government machinery to carry out a declared government policy" and is sued in relation to these governmental functions. In this case, BBC's primary purpose, as stated in its Amended Articles of Incorporation, is to "engage in commercial radio and television broadcasting," which is purely commercial or proprietary, not governmental. Therefore, BBC is not entitled to an exemption from posting an appeal bond. On whether the NLRC committed grave abuse of discretion: The Court found no grave abuse of discretion on the part of the NLRC. Article 223 of the Labor Code mandates that an appeal by an employer involving a monetary award must be perfected by posting a cash or surety bond equivalent to the monetary award. The posting of this bond is not merely mandatory but jurisdictional. BBC's filing of a Motion for the Recomputation of the Monetary Award, instead of posting the bond, was considered tantamount to a motion for extension to perfect the appeal, which is prohibited by the NLRC Rules. The NLRC's order to post the bond within 10 days, with a warning of dismissal, was an act of leniency. BBC's subsequent failure to comply and its filing of a Motion for Reconsideration on a new ground demonstrated its unwillingness to perfect the appeal. Thus, the NLRC's dismissal of the appeal for non-perfection was in accordance with law and procedure.
Main Doctrine
A government-owned and controlled corporation (GOCC) is generally not exempt from posting an appeal bond, unless it is shown to be a "government machinery to carry out a declared government policy" and is sued in relation to its governmental functions. A purely commercial or proprietary function does not warrant exemption.