G.R. No. 169158, July 1, 2015.
Pentagon International Shipping Services, Inc., Petitioner, vs. The Court of Appeals, Filomeno V. Madrio, Luisito G. Rubiano, JDA Inter-Phil. Maritime Services Corporation, Respondent.

FACTS

Petitioner Pentagon International Shipping Services, Inc. (Pentagon) and respondent JDA Inter-Phil Maritime Services Corporation (JDA Inter-Phil) are both domestic manning agencies. On March 27, 1998, Pentagon hired respondents Filomeno V. Madrio and Luisito G. Rubiano as chief officer and second engineer, respectively, on behalf of its foreign principal, Baleen Marine Pte. Ltd. After their contract expired, they were repatriated. Madrio and Rubiano filed money claims against Pentagon and Baleen Marine for alleged non-payment and underpayment of wages. Pentagon denied liability, claiming it had ceased to be Baleen Marine’s manning agency effective October 1, 1998, and that Baleen Marine had appointed JDA Inter-Phil as its new local agent on October 9, 1998. JDA Inter-Phil countered that although it applied with the POEA for transfer of accreditation, it withdrew the application and did not execute the required affidavit of assumption and responsibility, thus Pentagon remained liable. The Labor Arbiter initially ruled in favor of Pentagon, but the NLRC reversed this. Upon Pentagon’s motion, the NLRC reversed itself and held JDA Inter-Phil liable. The Court of Appeals annulled the NLRC resolutions, absolving JDA Inter-Phil from liability.

ISSUE

Whether there was a valid substitution or transfer of the manning agency from Pentagon to JDA Inter-Phil, thereby transferring the liability for the seafarers’ money claims to JDA Inter-Phil.

RULING

No, there was no valid transfer of agency. The Supreme Court affirmed the decision of the Court of Appeals. Under the Rules and Regulations Governing Overseas Employment, for a transfer of accreditation to be effective, the transferee agency must comply with all accreditation requirements, foremost of which is the submission of an authenticated special power of attorney and manning agreement. The POEA can only act on the transfer after all requirements are submitted. JDA Inter-Phil did not submit the required authenticated documents and eventually withdrew its application. The minutes of the October 9, 1998 meeting, wherein JDA Inter-Phil undertook to assume responsibility, could not supplant these mandatory requirements. Since no valid transfer was effected, Pentagon remained the recognized manning agent of Baleen Marine under the law and was thus jointly and severally liable with the principal for the money claims of the seafarers. The petition was denied for lack of merit.