SUNACE INTERNATIONAL MANAGEMENT SERVICES, INC. v. NLRC
• !ati%na+ La%r Re+ati%ns C%''issi%n an) C%urt %1 Aea+s a@r'e) t&e +a%r ariterBs )e*isi%n
January 25 2006/CARPIO-MORALES, 2006/CARPIO-MORALES, J. / Digest y Prana Prana
ISSUES & RATIO. . W!et!er W!et!er t!e act of t!e foreign foreigner"# er"#rinc rinci#a i#all in renewi renewing ng t!e contract of $i%ina &e attri&uta&le to Sunace. – '(. "&ere is an im#lied im#lied re%ocation re%ocation of an agenc) agenc) relations!i# relations!i# &en a1ter t&e ter'inati%n %1 t&e %rigina+ e'+%y'ent *%ntra*t, t&e 1%reign 1%reign rin*ia+ rin*ia+ )ire*t+y )ire*t+y neg%tiate) neg%tiate) it& t&e e'+%yee e'+%yee an) entere) int% a ne an) searate e'+%y'ent *%ntra*t. C%ntrary t% t&e C%urt %1 Aea+s 4n)ing, t&e a++ege) *%ntinu%us *%''uni*ati%n as it& t&e "aianese r%er 3ang, n%t it& t&e 1%reign e'+%yer. "&e 4n)ing %1 t&e C%urt %1 Aea+s s%+e+y %n t&e asis %1 t&e te+e te+e1a 1a 'ess 'essag age e rit ritte ten n y 3ang ang t% Suna Suna*e *e,, t&at t&at Suna Suna*e *e *%ntinua+ *%ntinua++y +y *%''uni*at *%''uni*ate) e) it& t&e 1%reign 1%reign >rin*ia+ >rin*ia+>> si* an) t&ere1%re as aare %1 an) &a) *%nsente) t% t&e ee*uti%n %1 t&e etensi%n %1 t&e *%ntra*t is 'is+a*e). "&e 'essage )%es n%t r%$i)e e$i)en*e t&at Suna*e as o ri$y t% t&e ne *%ntra*t ee*ute) a1ter t&e eirati%n %n :eruary , 77< %1 t&e %rigina+ *%ntra*t. "&at Suna*e an) t&e t&e "aia aiane nese se r% r%er er *%'' *%''un uni* i*at ate) e) rega regar) r)in ing g M%nte M%nte&er &er'%( '%(%Bs %Bs a++ege a++ege)+y )+y it&&e it&&e+) +) sa$ing sa$ings s )%es )%es n%t n%t ne*essari+y 'ean t&at Suna*e rati4e) t&e etensi%n %1 t&e *%ntra*t. As *an e seen 1r%' t&at +etter *%''uni*ati%n, it as ust o in1%r'ati%n gi$en t% Suna*e t&at M%nte&er'%(% &a) taen a+rea)y &er sa$ings 1r%' &er 1%reign e'+%yer an) t&at n% )e)u*ti%n as 'a)e %n &er sa+ary. It *%ntai *%ntains ns n%t&i n%t&ing ng a%ut a%ut t&e eten etensi% si%n n %r Suna*e Suna*eBs Bs o *%nsen *%nsentt t&eret t&eret%. %. Paren Parent&e t&eti* ti*a++ a++y, y, sin*e sin*e t&e te+e1a te+e1a 'essage is )ate) :eruary 2, 2000, it is sa1e t% assu'e t&at t&at it as as sent sent t% en+ig en+ig&t &ten en Suna Suna*e *e &% &% &a) &a) een een )ire*te), )ire*te), y Su''%ns Su''%ns issue) %n :erua :eruary ry 5, 2000, t% aear %n :eruary 2<, 2000 1%r a 'an)at%ry *%n1eren*e 1%++% 1%++%ing ing M%nte M%nte&er &er'%( '%(%Bs %Bs 4+ing 4+ing %1 t&e *%'+a *%'+aint int %n :eruary 8, 2000. Co'rt Co'rt o* A##ea+ A##ea+s s *o++o*o++o-in in as aent aent o* its *orei *orein n #rinci #rinci#a #a+, +, /S'nac /S'nace0 e0 cannot cannot #ro*es #ro*ess s inora inorance nce o* s'c" s'c" an e1ten e1tensio sion n as o%vio's+$ o%vio's+$,, t"e act o* its #rinci#a+ #rinci#a+ e1tendin e1tendin /Monte"er2o( /Monte"er2o(o3s0 o3s0 e2#+o$2ent contract necessari+$ %o'nd it it t%% is a misa misa## ##li lica cati tion on of t!e t!eor t!eor) ) of im#u im#ute ted d *nowledge. *nowledge. "&e t&e%ry %1 i'ute) n%+e)ge as*ries t&e n%+e)ge o %1 t&e agent, Suna*e, t% t&e rin*ia+, e'+%yer, n%t t&e %t&er ay ar%un). "&e n%+e)ge %1 t&e rin*ia+-1%reign e'+%y e'+%yer er *ann%t *ann%t,, t&ere t&ere1%r 1%re, e, e i'ute i'ute) ) t% its agent agent Suna*e. +!ere &eing no su&stantial #roof t!at Sunace *new of and consent consented ed to &e &ound &ound under under t!e ")ear ")ear em#lo)ment em#lo)ment
!A"#RE Certiorari PE"I"IO!ERS SUNACE INTERNATIONAL MANAGEMENT SERVICES, INC. RESPO!DE!"S NATIONAL LABOR RELATIONS COMMISSION, Second Division; ON. ERNESTO S. DINO!OL, in "is ca#acit$ as La%or A r%iter, r%iter, NLRC; NCR, Ar%itration Branc", &'e(on Cit$ and DIVINA A. MONTEERMO)O, Di$ina M%nte&er'%(% is a )%'esti* &e+er )e+%ye) t% "aian y Suna*e Internati%na+ Manage'ent Ser$i*es Suna*e un)er a 2-'%nt& *%ntra*t. A1ter t&e eirati%n %1 t&e *%ntra*t, M%nte&er'%(% *%ntinue) &er e'+%y'en e'+%y'entt it& &er "aian "aianese ese e'+%yer e'+%yer 1%r an%t&er an%t&er 2 years. years. 3&en M%nte&er'%(% returne) t% t&e P&i+iines, s&e 4+e) a *%'+aint against Suna*e, Suna*e, 3ang, 3ang, an) &er "aianese aianese e'+%yer e1%re t&e !ati%na+ !ati%na+ La%r La%r Re+ati%ns C%''issi%n !LRC. S&e a++eges t&at s&e as un)erai) an) as ai+e) 1%r t&ree '%nt&s in "aian. S&e 1urt&er a++eges t&at t&e 2-year etensi%n %1 &er e'+%y'ent *%ntra*t as it& t&e *%nsent an) n%+e)ge %1 Suna*e. Suna*e, %n t&e %t&er &an), )enie) a++ t&e a++egati%ns. DOCTRINE. Arti*+e 728 %1 t&e !e Ci$i+ C%)e states t&at t&e agen*y is re$%e) re$%e) i1 t&e rin*ia+ rin*ia+ )ire*t+y )ire*t+y 'anages t&e usiness usiness entruste) entruste) t% t&e agent, )ea+ing )ire*t+y it& t&ir) ers%ns. SUMMARY .
FACTS.
• Petit Petiti%n i%ner, er, Suna*e Suna*e Inter Internat nati%n i%na+ a+ Manag Manage'e e'ent nt Ser$i* Ser$i*es es Sunace, Sunace, )e+%ye) t% "aian Di$ina A. M%nte&er'%(% as a )%'esti* &e+er un)er a 2-'%nt& *%ntra*t e9e*ti$e e9e*ti$e :eruary , 77;. "&e )e+%y'ent )e+%y'ent as it& t&e assistan*e %1 a "aianese "aianese r%er, Edmund Wang, President of Jet Crown International Co., Ltd. • A1ter A1ter &er 2-'%n 2-'%nt& t& *%ntra *%ntra*t *t eir eire) e) %n :eruar eruary y , 77<, 77<, Di$ina Di$ina *%ntinue) %ring 1%r &er "aianese e'+%yer, Hang Rui Xiong, Xiong, 1%r t% '%re years, a1ter &i*& s&e returne) t% t&e P&i+iines %n :eruary 8, 2000. • S&%rt+y a1ter &er return %r %n :eruary 8, 2000, Di$ina 4+e) a *%'+aint e1%re t&e !ati%na+ La%r Re+ati%ns C%''issi%n !LRC against Suna*e, %ne A)e+ai)e A)e+ai)e Pere(, Pere(, t&e "aianese aianese r%er, r%er, an) t&e e'+%yer e'+%yer-1%r -1%reign eign rin*ia+ a++eging t&at s&e as ai+e) 1%r t&ree '%nt&s an) t&at s&e as un)erai) • Rea*ting t% Di$ina=s P%siti%n Paer, Paer, Suna*e 4+e) %n Ari+ 25, 2000 an >. . . A!S3ER "O COMPLAI!A!"=S POSI"IO! PAPER> a++eging t&at Di$ina=s 2year etensi%n %1 &er *%ntra*t as it&%ut its n%+e)ge an) *%nsent, &en*e, it &a) n% +iai+ity atta*&ing t% any *+ai' arising t&ere1r%', an) Di$ina in 1a*t ee*ute) a 3ai$er/?uit*+ai' an) Re+ease %1 Res%nsii+ity an) an A@)a$it %1 Desistan*e • La%r Ariter ru+e) in 1a$%r %1 M%nte&er'%(% an) 1%un) Suna*e +ia+e t&ere%1.
contract e-tension, it cannot &e said to &e #ri%) t!ereto. As su*&, it an) its >%ner> *ann%t e &e+) s%+i)ari+y +ia+e 1%r any %1 M%nte&er'%(%Bs *+ai's arising 1r%' t&e 2-year e'+%y'ent etensi%n. As t&e !e Ci$i+ C%)e r%$i)es, C%ntra*ts tae e9e*t %n+y eteen t&e arties, t&eir assigns, an) &eirs, e*et in *ase &ere t&e rig&ts an) %+igati%ns arising 1r%' t&e *%ntra*t are n%t trans'issi+e y t&eir nature, %r y stiu+ati%n %r y r%$isi%n %1 +a. :urt&er'%re, as Suna*e *%rre*t+y %ints %ut, t!ere was an im#lied re%ocation of its agenc) relations!i# wit! its foreign #rinci#al w!en, after t!e termination of t!e original em#lo)ment contract, t!e foreign #rinci#al directl) negotiated wit! onte!ermo/o and entered into a new and se#arate em#lo)ment contr act in +aiwan. 0rticle 12 %1 t&e !e Ci$i+ C%)e states t&at t&e agen*y is re$%e) i1 t&e rin*ia+ )ire*t+y 'anages t&e usiness entruste) t% t&e agent, )ea+ing )ire*t+y it& t&ir) ers%ns. "&ere eing n% sustantia+ r%%1 t&at Suna*e ne %1 an) *%nsente) t% e %un) un)er t&e 2-year e'+%y'ent *%ntra*t etensi%n, it *ann%t e sai) t% e ri$y t&eret%. As su*&, it an) its >%ner> *ann%t e &e+) s%+i)ari+y +ia+e 1%r any %1 Di$ina=s *+ai's arising 1r%' t&e 2-year e'+%y'ent etensi%n.
DECISION.
Petiti%n RA!"ED. CA )e*isi%n re$erse) an) set asi)e. '(+ES. "E "ELE:A "&e :eruary 2, 2000 te+e1a 'essage 1r%' t&e "aianese r%er t% Suna*e, t&e %n+y asis %1 a 4n)ing %1 *%ntinu%us *%''uni*ati%n, rea)s $erati' Regar)ing t% Di$ina, s&e )i) n%t say anyt&ing a%ut &er sa$ing in %+i*e stati%n. As e *%nta*t it& &er e'+%yer, s&e t%% a* &er sa$ing a+rea)y +ast years. An) t&ey )i) n%t )e)u*t any '%ney 1r%' &er sa+ary. Or s&e i++ *a++ a* &er e'+%yer t% *&e* it again. I1 &er e'+%yer sai) yesF e i++ get it a* 1%r &er.
"&an y%u an) est regar)s. sg). E)'un) 3ang Presi)entG7H
