SECOND DIVISION
G.R. No. 247702, June 14, 2021
ANTONIO D. ORLANES, Petitioner, v. STELLA MARRIS SHIPMANAGEMENT, INC., FAIRPORT SHIPPING CO., LTD., AND/OR DANILO NAVARRO, Respondents.
D E C I S I O N
PERLAS-BERNABE, J.:
Assailed in this petition for review on certiorari1 are the Decision2 dated September 27, 2018 and the Resolution3 dated March 1, 2019 of the Court of Appeals (CA) in CA-G.R. SP No. 134259, which affirmed the Decision4 dated October 30, 2013 and the Resolution5 dated December 26, 2013 of the National Labor Relations Commission
(NLRC) in LAC No. 07- 000700-13, dismissing petitioner Antonio D.
Orlanes' (Orlanes) money claims.
This must be so, because the obligations covenanted in the recruitment agreement entered into by and between the local agent and its foreign principal are not coterminus with the term of such agreement so that if either or both of the parties decide to end the agreement, the responsibilities of such parties towards the contracted employees under the agreement do not at all end, but the same extends up to and until the expiration of the employment contracts of the employees recruited and employed pursuant to the said recruitment agreement. Otherwise, this will render nugatory the very purpose for which the law governing the employment of workers for foreign jobs abroad was enacted.37Thus, in Powerhouse Staffbuilders International, Inc. v. Rey,38 the Court ruled that even if an Affidavit of Assumption of Responsibility was validly executed by the transferee agent assuming the full and complete responsibility over all contractual obligations of the principal to the seafarers originally recruited and processed by therein original manning agent, the latter's liability to its recruited workers remained intact because the said workers were not privy to such contract of transfer. Further, the Court pointed out that the original manning agent was the recruitment agency of the foreign principal that was stated in the seafarers' POEA-approved employment contracts, and hence, was contractually bound to fulfill its obligations to the seafarer.
In this case, there is no dispute that Skippers was the original manning agent of Fairport which recruited Orlanes and processed his employment with the former. As the accredited local manning agency for Fairport, Skippers assumed joint and solidary liability with the latter under the contract of employment of Orlanes as mandated by law.PART III
PLACEMENT BY THE PRIVATE SECTORRULE I
VERIFICATION OF DOCUMENTS AND REGISTRATION OF FOREIGN PRINCIPALS AND ENROLMENT OF VESSELS
x x x
Section 8. Transfer of Registration of Principal and/or Enrolment of Vessel. The registration of a principal and/or enrolment of vessel may be transferred to another agency provided such transfer shall not involve diminution of wages and benefits of the seafarers hired through the previous agency; and provided further that the transferee agency shall assume full and complete responsibility over all contractual obligations of the principal to the seafarers originally recruited and processed by the former agency. Prior to the transfer of registration, the Administration shall notify the previous agency and principal of such application for transfer.
x x xRULE II
ACCREDITATION OF PRINCIPALS AND ENROLMENT OF SHIPS BY MANNING AGENCIES
x x x
Section 7. Transfer of Accreditation of Principal and/or Enrolment of Vessel. The accreditation of a principal and/or enrolment of vessel may be transferred to another agency provided such transfer shall not involve diminution of wages and benefits of the seafarers hired through the previous agency; and provided further that the transferee agency shall assume full and complete responsibility to all contractual obligations of the principals to its workers originally recruited and processed by the former agency. Prior to the transfer of accreditation, the Administration shall notify the previous agency and principal of such application for transfer." (Emphases supplied)
Endnotes:
* Designated Additional Member per Special Order No. 2822 dated April 7, 2021.
1Rollo, pp. 9-22. While the present petition's title indicates Stella Marris Shipmanagement, Inc., Fairport Shipping Co., Ltd., and/or Danilo Navarro as respondents, petitioner Antonio D. Orlanes also mentioned the following as respondents in the petition's body: Skippers United Pacific, Inc., Danilo Navarro, and Fairport Shipping Limited, Inc. (see rollo, p. 11). From the records, Stella Marris and Skippers are different entities with different addresses; Skippers, however, was not impleaded as a party-respondent in the present complaint (see Orlanes' Position Paper before the CA, May 31, 2013 LA Decision, and NLRC's October 30, 2013 Decision (see CA rollo, pp. 40-44, 59-64, 18-35, respectively), as well as in the proceedings before the CA (see CA's September 27, 2018 Decision).
2 Id. at 27-36. Penned by Associate Justice Nina G. Antonio-Valenzuela with Associate Justices Marlene B. Gonzales-Sison and Germano Francisco D. Legaspi, concurring.
3 Id. at 25-26.
4 CA rollo, pp. 18-25. Penned by Presiding Commissioner Raul T. Aquino with Commissioners Teresita D. Castillon-Lora and Erlinda T. Agus, concurring.
5 Id. at 33-35.
6 Id. at 36-39. See also Complainant's Position Paper, docketed as NLRC Case No. (M)NCR-07-11141-12, id. at 40-44.
7 Id. at 41. With address at 447 Rizal Tower, Singion St. corner Makati Ave., Makati City (see Complainant's Position Paper).
8 Id. at 46. See also rollo, p. 28.
9 Id. at 47-52. See also LA's May 31, 2013 Decision, CA rollo, pp. 61-62; and CA's September 27, 2018 Decision, rollo, pp. 28-29.
10 See id. at 59 and 101. Docketed as NLRC NCR Case No. (M) 03-04763-11.
11 Id. at 136. It pertinently provides:chanroblesvirtualawlibrary2. That FAIRPORT SHIPPING LIMITED, our foreign principal, a company duly organized and existing under the laws of Greece with principal office at 17A, Kondyll St. Glyfada 16675 Greece, has designated our company as its lawful representative in the Philippines;12 Id. at 84. It pertinently provides:chanroblesvirtualawlibrary
3. That as agent of the above principal in the Philippines, our company is willing to assume full and complete responsibility for all contractual obligations to its seafarers originally recruited and processes [sic] by SKIPPERS UNITED PACIFIC, INC. for the vessel M/V ORIONIS.
x x x
5. That this affidavit is being executed in compliance with Section 8 Rule IV Section 7 Rule II Part III of the POEA rules and regulations governing the Recruitment and employment of seafarers.
x x x x (Emphasis and underscoring supplied)2. That Fairport Shipping Ltd., our foreign principal, a company duly organized and existing under the laws of the Republic of Greece with office address at 17 A, Kondyll Str, Glyfada Greece, has designated our company as its lawful representative in the Philippines;13 Id. at 101-102.
3. That as agent of the above principal in the Philippines, our company is willing to assume full and complete responsibility for all contractual obligations to its seafarers originally processed and recruited by Global Gateway Crewing Services Inc, for the following vessels: MV Asahi, MV Orionis, MV Taisetsu and MV Saetta;
x x x
5. That this affidavit is being executed in compliance with Section 8 Rule II/Section 7 Rule II, Part III of the POEA Rules and Regulations Governing the Recruitment and Employment of Seafarers.
x x x x" (Emphasis and underscoring supplied)
14 Id. Penned by Labor Arbiter Arden S. Anni. See also CA rollo, pp. 59-60. Orlanes stated the date as February 3, 2012, see rollo, p. 14.
15 Id. at 151-154. Penned by Commissioner Napoleon M. Menese with Presiding Commissioner Raul T. Aquino and Commissioner Teresita D. Castillon-Lora, concurring.
16 See id. at 60.
17 See id. at 60-61.
18 Id. at 59-64. Penned by Labor Arbiter Arden S. Anni.
19 See id. at 62.
20 Id. at 65-76. See Notice of Appeal with Memorandum of Appeal dated July 5, 2013. See also rollo, p. 29.
21 See rollo, p. 29.
22 CA rollo, pp. 18-25.
23 Section 10 of RA 8042, as amended by RA 10022, pertinently reads:chanroblesvirtualawlibrarySEC. 10. Money Claims. - x x x24 See CA rollo, pp. 22-23.
x x x
The liability of the principal/employer and the recruitment/placement agency for any and all claims under this section shall be joint and several. This provision shall be incorporated in the contract for overseas employment and shall be a condition precedent for its approval. The performance bond to de filed by the recruitment/placement agency, as provided by law, shall be answerable for all money claims or damages that may be awarded to the workers. If the recruitment/placement agency is a juridical being, the corporate officers and directors and partners as the case may be, shall themselves be jointly and solidarily liable with the corporation or partnership for the aforesaid claims and damages. Such liabilities shall continue during the entire period or duration of the employment contract and shall not be affected by any substitution, amendment or modification made locally or in a foreign country of the said contract. (Emphases supplied)
x x x x
25 Id. at 33-35.
26 Id. at 3-17. While the certiorari petition's title indicates Stella Marris Shipmanagement, Inc., Fairport Shipping Co., Ltd., and/or Danilo Navarro as respondents, petitioner Antonio D. Orlanes declared the following as respondents in the said petition's body: Skippers United Pacific, Inc., Jerosalem P. Fernandez, and Fairport Shipping Limited, Inc. (see id. at 5).
27 See rollo, p. 32.
28 Id. at 27-36.
29 Section 1 (e) (8), Rule II, Part II of the POEA Rules and Regulations Governing the Recruitment and Employment of Seafarers:chanroblesvirtualawlibrarySection 1. Requirements for Licensing. Every applicant for license to operate a manning agency shall submit a written application together with the following requirements:30 CA rollo, pp. 33-35.
x x x
e. A verified undertaking stating that the applicant shall:
x x x
8. Assume joint and solidary liability with the employer for all claims and liabilities which may arise in connection with the implementation of the employment contract, including but not limited to wages, death and disability compensation and their repatriation;
x x x x (Emphasis supplied)
31Rollo, pp. 25-26.
32 Section 1 (e) (8), Rule II, Part II of the POEA Rules and Regulations Governing the Recruitment and Employment of Seafarers:chanroblesvirtualawlibrarySection 1. Requirements for Licensing. Every applicant for license to operate a manning agency shall submit a written application together with the following requirements:33 Section 10 of RA 8042, as amended by RA 10022, pertinently reads:chanroblesvirtualawlibrary
x x x
e. A verified undertaking stating that the applicant shall:
x x x
8. Assume joint and solidary liability with the employer for all claims and liabilities which may arise in connection with the implementation of the employment contract, including but not limited to wages, death and disability compensation and their repatriation;
x x x x (Emphasis supplied)SEC. 10. Money Claims. - x x x34 Entitled "AN ACT TO INSTITUTE THE POLICIES OF OVERSEAS EMPLOYMENT AND ESTABLISH A HIGHER STANDARD OF PROTECTION AND PROMOTION OF THE WELFARE OF MIGRANT WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS IN DISTRESS, AND FOR OTHER PURPOSES," approved on June 7, 1995.
x x x
The liability of the principal/employer and the recruitment/placement agency for any and all claims under this section shall be joint and several. This provision shall be incorporated in the contract for overseas employment and shall be a condition precedent for its approval. The performance bond to de filed by the recruitment/placement agency, as provided by law, shall be answerable for all money claims or damages that may be awarded to the workers. If the recruitment/placement agency is a juridical being, the corporate officers and directors and partners as the case may be, shall themselves be jointly and solidarily liable with the corporation or partnership for the aforesaid claims and damages.
Such liabilities shall continue during the entire period or duration of the employment contract and shall not be affected by any substitution, amendment or modification made locally or in a foreign country of the said contract.
x x x x (Emphases supplied)
35 Entitled "AN ACT AMENDING REPUBLIC ACT No. 8042, OTHERWISE KNOWN AS THE MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT OF 1995, As AMENDED, FURTHER IMPROVING THE STANDARD OF PROTECTION AND PROMOTION OF THE WELFARE OF MIGRANT WORKERS, THEIR FAMILIES AND OVI RSEAS FILIPINOS IN DISTRESS, AND FOR OTHER PURPOSES," approved on March 8, 2010.
36 243 Phil. 858 (1988).
37 Id. at 863.
38 798 Phil. 8 (2016).
39 530 Phil. 367 (2006).
40 747 Phil. 762 (2014).
41 Id. at 771.
42 Note that in a Resolution dated March 9, 2015, the CA ruled that Global was a party to the present case. However, the CA erred as mere participation in the first complaint before the LA should not be considered as participation in the present case. Records show that Global and Skippers were (a) not impleaded in the complaint; (b) not served summons; and, (c) not given an opportunity to be heard before the LA or the NLRC. Further, Global's participation in this case was limited to the filing of the Manifestation and Motion dated March 27, 2014 to the CA's Order to Comment on the Petition, its Comment dated March 15, 2015 to the petition, and its Memorandum dated September 8, 2015 before the CA.
43 SEC. 11. Misjoinder and non-joinder of parties. - Neither misjoinder nor non-joinder of parties is ground for dismissal of an action. Parties may be dropped or added by order of the court on motion of any party or on its own initiative at any stage of the action and on such terms as are just. Any claim against a misjoined party may be severed and proceeded with separately.
44 Section 3, Rule I of the 2011 NLRC Rules of Procedure on Suppletory application of the Rules of Court provides:chanroblesvirtualawlibrarySECTION 3. SUPPLETORY APPLICATION OF THE RULES OF COURT. - In the absence of any applicable provision in these Rules, and in order to effectuate the objectives of the Labor code, as amended, the pertinent provisions of the Rules of Court of the Philippines, as amended, may, in the interest of expeditious dispensation of labor justice and whenever practicable and convenient, be applied by analogy or in a suppletory character and effect.cralawredlibrary