G.R. No. 97945 October 8, 1998
PRIME MARINE SERVICES, INC., petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION, PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION, R & R MANAGEMENT SERVICES INTERNATIONAL, and NAPOLEON CANUT, respondents.

FACTS

Private respondent Napoleon Canut was recruited to work as a Tug Master for Arabian Gulf Mechanical Services and Contracting Co., Ltd. by R & R Management Services International for an 18-month contract commencing June 15, 1988. His employment was preterminated on the ground of alleged incompetence, and he was repatriated on September 26, 1988. Upon review of his employment papers, Canut discovered that while R & R Management acted as the recruitment agency, it was petitioner Prime Marine Services, Inc. that acted as the deployment agent which processed his papers and facilitated his deployment abroad. Further investigation revealed that R & R Management was not licensed to recruit workers for overseas employment. Canut filed a complaint before the POEA for illegal dismissal, underpayment of salaries, and recruitment violations against petitioner, R & R Management, and Arabian Gulf. Petitioner denied any employer-employee relationship with Canut, pointing out that Canut applied with and paid his placement fee to R & R Management. Petitioner also denied any part in processing Canut’s papers and argued that only Arabian Gulf and R & R Management should be held liable. Petitioner filed a cross-claim against R & R Management seeking reimbursement for any amount it may be held liable for. R & R Management averred that it referred Canut to petitioner to facilitate his employment and that both worked in conjunction in processing his deployment. The POEA Deputy Administrator rendered a decision holding petitioner, R & R Management, and Arabian Gulf jointly and severally liable to pay Canut his salaries for the unexpired portion of the contract, a salary differential, and attorney’s fees. The POEA also referred R & R Management to its Anti-illegal Recruitment Branch and dismissed petitioner’s cross-claim. The NLRC affirmed the POEA decision in toto and denied petitioner’s motion for reconsideration.

ISSUE

Whether the National Labor Relations Commission committed grave abuse of discretion in affirming the POEA decision holding petitioner Prime Marine Services, Inc. jointly and severally liable with R & R Management Services International and Arabian Gulf for the claims of private respondent Napoleon Canut, and in dismissing petitioner’s cross-claim against R & R Management.

RULING

The Supreme Court dismissed the petition. The factual findings of the POEA and NLRC, which are supported by substantial evidence, are binding and final. Both agencies found that petitioner and R & R Management acted jointly in recruiting and deploying Canut abroad. R & R Management admitted it facilitated efforts in conjunction with petitioner in sending Canut abroad, and petitioner failed to rebut this allegation or explain why it appeared as the deploying agent in the Crew Agreement. This leads to the conclusion of collusion between the two with respect to Canut’s application and deployment. The Court distinguished the cited case of Ilas v. NLRC, as the factual circumstances there were different; in Ilas, the recruitment agency was not held liable because the workers were recruited by its agent without its knowledge and consent. In contrast, here, the findings establish joint action. Petitioner’s solidary liability is also founded on POEA Rules and Regulations, which require a private manning agency to submit a verified undertaking stating it shall assume joint and solidary liability with the employer for all claims arising from the employment contract. Consequently, the dismissal of petitioner’s cross-claim against R & R Management was proper due to their joint and solidary liability.