G.R. No. 148433. September 30, 2008.
Zamboanga Barter Traders Kilusang Bayan, Inc., represented by its President, Atty. Hasan G. Alam, Petitioner, versus Hon. Julius Rhett J. Plagata, in his capacity as Executive Labor Arbiter of NLRC-RAB No. IX, Sheriff Danilo P. Tejada of NLRC-RAB No. IX and Teopisto Mendoza, Respondents.

FACTS

On January 9, 1973, Presidential Decree No. 934 legalized barter trading. On June 17, 1981, petitioner Zamboanga Barter Traders Kilusang Bayan, Inc. (ZBTKBI) donated a parcel of land to the Republic of the Philippines, subject to conditions including the construction of a P5 Million Barter Trade market building and a reversion clause if barter trading was phased out. The Republic accepted, and a new title was issued in its name. The building was completed on March 30, 1983. Prior to the donation, private respondent Teopisto Mendoza was hired by ZBTKBI as a clerk on March 16, 1977. On April 1, 1981, ZBTKBI terminated Mendoza’s services for alleged abandonment. Mendoza filed a complaint for illegal dismissal. On May 31, 1983, Executive Labor Arbiter Hakim S. Abdulwahid rendered a decision finding the dismissal illegal and ordering Mendoza’s reinstatement with backwages. ZBTKBI appealed to the NLRC. On November 15, 1983, the NLRC dismissed the appeal for lack of merit. The decision became final and executory on January 18, 1984. A Writ of Execution was issued on July 2, 1984, but was returned unsatisfied. An Alias Writ of Execution issued on November 19, 1984, also remained unsatisfied. On June 17, 1988, the Office of the President issued Memorandum Circular No. 1 phasing out the Zamboanga City barter trade area effective October 1, 1988. On December 18, 1989, Mendoza filed a Motion for Issuance of a (Second) Alias Writ of Execution, which was issued on January 2, 1990. The sheriff levied upon the subject property (the donated land) on February 28, 1990. A public auction was held on April 26, 1990, where Mendoza was the highest bidder. A certificate of sale was issued. After the redemption period expired, a final deed of sale was issued on May 27, 1991. On May 5, 2000, public respondent Executive Labor Arbiter Julius Rhett J. Plagata granted Mendoza’s petition for a writ of possession over the property. The writ was issued on May 23, 2000. ZBTKBI’s motion for reconsideration was denied on June 7, 2000. ZBTKBI filed a petition for certiorari with the Court of Appeals, which was dismissed on November 20, 2000. The motion for reconsideration was denied on May 31, 2001. Hence, this Petition for Review on Certiorari.

ISSUE

The core issue is whether the public respondent Executive Labor Arbiter committed grave abuse of discretion in issuing the orders dated May 5, 2000 and June 7, 2000, and the writ of possession dated May 23, 2000, concerning the execution of the final and executory labor decision against ZBTKBI, particularly involving property that had been donated to the Republic.

RULING

The Supreme Court denied the petition. The Court held that the labor decision had become final and executory. The execution of the judgment by levy upon the subject property was proper. The Court found that the property, although donated to the Republic, had reverted to ZBTKBI by operation of the condition in the Deed of Donation when barter trading was phased out in 1988. Therefore, at the time of the levy in 1990, ZBTKBI was the owner of the property, and it was rightfully levied to satisfy the judgment obligation. The Court also ruled that ZBTKBI’s failure to timely assert its claim of ownership or to redeem the property constituted laches. The issuance of the writ of possession by the Labor Arbiter was a ministerial duty following the expiration of the redemption period. The Court of Appeals did not err in dismissing ZBTKBI’s petition for certiorari.