G.R. No. 138305; September 22, 2004
MANILA MIDTOWN HOTEL, Petitioner, vs. VOLUNTARY ARBITRATOR DR. REY A. BORROMEO, THE MANILA MIDTOWN HOTEL EMPLOYEES LABOR UNION, ET AL., Respondents.

FACTS

The Manila Midtown Hotel Employees Labor Union filed a complaint for illegal dismissal against the petitioner hotel before the Office of the Voluntary Arbitrator. The petitioner initially contested the jurisdiction of the Voluntary Arbitrator, arguing that the Labor Arbiter had exclusive jurisdiction. This jurisdictional challenge was elevated to the Court of Appeals and eventually to the Supreme Court, which denied the petitioner’s petition, making the ruling final and executory on August 17, 1998. Subsequently, the Voluntary Arbitrator proceeded and rendered a Decision on January 15, 1998, finding four employees illegally dismissed and ordering their reinstatement with backwages and damages.
Upon receipt of the Voluntary Arbitrator’s Decision, the petitioner filed a petition for certiorari with the Court of Appeals, instead of filing a petition for review under Rule 43. Meanwhile, the respondent union moved for execution of the decision. The Voluntary Arbitrator issued a writ of execution. The Court of Appeals affirmed the Voluntary Arbitrator’s decision, prompting the petitioner to elevate the case to the Supreme Court, ascribing error in the appellate court’s affirmation of the execution order.

ISSUE

Whether the Court of Appeals erred in sustaining the Voluntary Arbitrator’s issuance of a writ of execution.

RULING

The Supreme Court denied the petition and affirmed the Court of Appeals. The legal logic is anchored on the finality of judgments and the proper mode of appeal. Under Article 262-A of the Labor Code and Rule 43 of the Rules of Court, a decision of a Voluntary Arbitator becomes final and executory after ten calendar days from receipt by the parties. The proper remedy to challenge such a decision is a petition for review filed with the Court of Appeals within a 15-day reglementary period.
The petitioner availed of the wrong remedy by filing a petition for certiorari, which is not a substitute for a lapsed appeal. Since no timely petition for review was filed, the Voluntary Arbitrator’s Decision became final and executory. Consequently, the issuance of the writ of execution was a ministerial duty. The finality of a decision is a jurisdictional event; the court or tribunal loses jurisdiction over the case except to order its execution. The Court also noted that the petitioner did not substantively question the finding of illegal dismissal. Thus, the appellate court correctly sustained the execution order.