Wednesday, April 1, 2015

Due process is satisfied when the parties are afforded fair and reasonable opportunity to explain their respective sides of the controversy.



G.R. No. 188753               October 1, 2014

AM-PHIL FOOD CONCEPTS, INC., Petitioner,
vs. PAOLO JESUS T. PADILLA, Respondent
.



"x x x.
Am-Phil’s right to due process was not violated.

Am-Phil faults Labor Arbiter Chuanico for not having allowed its motion for leave to file supplemental rejoinder that included its 2001 to 2004 audited financial statements as annexes. These statements supposedly show that Am-Phil suffered serious business losses. Thus, it claims that its right to due process was violated.

Am-Phil’s motion for leave to file supplemental rejoinder,33 dated May 20, 2005,34 was filed on May 31, 2005,35 well after Labor Arbiter Chuanico promulgated his May 9, 2005 decision. Common sense dictates that as the motion for leave to file supplemental rejoinder was filed after the rendition of the decision, the decision could not have possibly taken into consideration the motion. Giving consideration to a motion filed after the promulgation of the decision is not only unreasonable, it is impossible. It follows that it is completely absurd to fault Labor Arbiter Chuanico for not considering a May 31 motion in his May 9 decision

Even if we were to ignore the curious fact that the motion was filed after the rendition of the decision, Labor Arbiter Chuanico was under no obligation to admit the supplemental rejoinder.
Rule V of the 2002 National Labor Relations Commission Rules of Procedure (2002 Rules), which were in effect when Labor Arbiter Chuanico promulgated his decision on May 9, 2005,36 provides:

SECTION 4. SUBMISSION OF POSITION PAPERS / MEMORANDA. Without prejudice to the provisions of the last paragraph, SECTION 2 of this Rule, the Labor Arbiter shall direct both parties to submit simultaneously their position papers with supporting documents and affidavits within an inextendible period of ten (10) days from notice of termination of the mandatory conference.

These verified position papers to be submitted shall cover only those claims and causes of action raised in the complaint excluding those that may have been amicably settled, and shall be accompanied by all supporting documents including the affidavits of their respective witnesses which shall take the place of the latter’s direct testimony. The parties shall thereafter not be allowed to allege facts, or present evidence to prove facts, not referred to and any cause or causes of action not included in the complaint or position papers, affidavits and other documents.37 (Emphasis supplied)
. . . .
SECTION 11. ISSUANCE OF AN ORDER SUBMITTING THE CASE FOR DECISION. After the parties have submitted their position papers and supporting documents, and upon evaluation of the case the Labor Arbiter finds no necessity of further hearing, he shall issue an order expressly declaring the submission of the case for decision.38

From the provisions of the 2002 Rules, it is clear that a supplemental rejoinder, as correctly ruled by the National Labor Relations Commission,39 is not a pleading which a labor arbiter is duty-bound to accept.40 Even following changes to the National Labor Relations Commission Rules of Procedure in 2005 and 2011, a rejoinder has not been recognized as a pleading that labor arbiters must necessarily admit. The 2005 and 2011 National Labor Relations Commission Rules of Procedure only go so far as to recognize that a reply "may" be filed by the parties.41

Thus, Labor Arbiter Chuanico was under no obligation to grant Am- Phil’s motion for leave to admit supplemental rejoinder and, thereby, consider the supplemental rejoinder’s averments and annexes. That Am- Phil had to file a motion seeking permission to file its supplemental rejoinder (i.e., motion for leave to file) is proof of its own recognition that the labor arbiter is under no compulsion to accept any such pleading and that the supplemental rejoinder’s admission rests on the labor arbiter’s discretion.

The standard of due process in labor cases was explained by this court in Sy v. ALC Industries, Inc.:42

Due process is satisfied when the parties are afforded fair and reasonable opportunity to explain their respective sides of the controversy. In Mariveles Shipyard Corp. v. CA, we held:

The requirements of due process in labor cases before a Labor Arbiter is satisfied when the parties are given the opportunity to submit their position papers to which they are supposed to attach all the supporting documents or documentary evidence that would prove their respective claims, in the event that the Labor Arbiter determines that no formal hearing would be conducted or that such hearing was not necessary.43 (Emphasis in the original)
Am-Phil filed three (3) pleadings with Labor Arbiter Chuanico: first, its position paper44 on September 9, 2004; second, its reply45 on September 30, 2004; and third, its rejoinder46 on October 11, 2004. It was more than six (6) months after it had filed its rejoinder that it filed its motion for leave to admit supplemental rejoinder on May 31, 2005.

Its three (3) pleadings having been allowed, Am-Phil had no shortage of opportunities to plead its claims and to adduce its evidence. It has no basis for claiming that it was not "afforded [a] fair and reasonable opportunity to explain [its side] of the controversy."47 The filing of its motion for leave to admit supplemental rejoinder represents nothing more than a belated and procedurally inutile attempt at resuscitating its case.

x x x."