G.R. No. 171673 ; May 30, 2011
BANAHAW BROADCASTING CORPORATION, Petitioner, vs. CAYETANO PACANA III, NOE U. DACER, JOHNNY B. RACAZA, LEONARDO S. OREVILLO, ARACELI T. LIBRE, GENOVEVO E. ROMITMAN, PORFERIA M. VALMORES, MENELEO G. LACTUAN, DIONISIO G. BANGGA, FRANCISCO D. MANGA, NESTOR A. AMPLAYO, LEILANI B. GASATAYA, LORETA G. LACTUAN, RICARDO B. PIDO, RESIGOLO M. NACUA and ANACLETO C. REMEDIO, Respondents.

FACTS

Respondents are supervisory and rank-and-file employees of the DXWG-Iligan City radio station owned by petitioner Banahaw Broadcasting Corporation (BBC), a corporation managed by Intercontinental Broadcasting Corporation (IBC). On August 29, 1995, respondents filed a complaint for illegal dismissal, unfair labor practice, and reimbursement of unpaid Collective Bargaining Agreement (CBA) benefits against IBC and BBC. On June 21, 1996, Labor Arbiter Abdullah L. Alug awarded respondents a total of ₱12,002,157.28 as unpaid CBA benefits. Both parties appealed to the National Labor Relations Commission (NLRC). On May 15, 1997, IBC and respondents jointly filed a Motion to Dismiss, Release, Waiver and Quitclaim based on respondents’ admission that IBC was not their employer. The NLRC granted the motion and dismissed the case against IBC. BBC filed a Motion for Reconsideration, raising issues including lack of service of summons and the extinguishment of its liability by the quitclaim in favor of IBC. On December 12, 1997, the NLRC vacated the Labor Arbiter’s Decision and remanded the case due to lack of proper service on BBC.
On October 15, 1998, Labor Arbiter Nicodemus G. Palangan rendered a Decision holding BBC liable for the same amount of ₱12,002,157.28, plus 10% attorney’s fees. Both parties appealed to the NLRC. In its Memorandum of Appeal, BBC incorporated a Motion for Recomputation of the Monetary Award to reduce the appeal bond. On September 16, 1999, the NLRC denied the motion for recomputation and ordered BBC to post the required appeal bond within ten days, warning that non-compliance would cause dismissal of the appeal for non-perfection. Instead of posting the bond, BBC filed a Motion for Reconsideration, alleging it was exempt from posting an appeal bond because it was wholly owned by the Republic of the Philippines. On November 22, 1999, the NLRC denied BBC’s motion and dismissed its appeal for non-perfection. The NLRC also dismissed respondents’ appeal for lack of merit. BBC’s subsequent Motion for Reconsideration was denied on January 13, 2000.
BBC filed a Petition for Certiorari with the Court of Appeals. On April 15, 2005, the Court of Appeals denied the petition, holding that BBC, though government-owned, had a personality distinct from the Republic and was not exempt from posting an appeal bond. The Court of Appeals affirmed the NLRC’s decision and declared the Labor Arbiter’s October 15, 1998 Decision final and executory. The Court of Appeals denied BBC’s Motion for Reconsideration on January 27, 2006. Hence, this Petition for Review.

ISSUE

Whether the National Labor Relations Commission (NLRC) committed grave abuse of discretion in dismissing BBC’s appeal for its failure to post the required appeal bond, specifically on the ground that BBC, as a government-owned corporation, is exempt from such requirement.

RULING

The Supreme Court DENIED the petition and AFFIRMED the Decision and Resolution of the Court of Appeals. The NLRC did not commit grave abuse of discretion.
The Court held that BBC, although a government-owned or controlled corporation, possesses a juridical personality separate and distinct from the government. As such, it does not partake of the Republic’s exemption from posting an appeal bond in labor cases. The requirement to post an appeal bond under Article 223 of the Labor Code is mandatory and jurisdictional for the perfection of an appeal. The Court cited precedent establishing that government-owned or controlled corporations, when endowed with a corporate personality separate from the state, are not exempt from this requirement. The Court rejected BBC’s argument that its sequestered status or its ownership by the Republic conferred such exemption. The NLRC’s order for BBC to post the bond was proper, and its dismissal of BBC’s appeal for non-compliance was a valid exercise of discretion. Consequently, the Labor Arbiter’s Decision dated October 15, 1998, awarding monetary benefits to respondents, became final and executory.