Lozon vs NLRC GR No. 107660, January 2, 1995, 240 SCRA 1

 

Facts:

Petitioner Ramon C. Lozon, a certified public accountant, was a Senior Vice-President-Finance of Private respondent Philippine Airlines, Inc. (“PAL”), when his services were terminated  in the aftermath of the much-publicized “two-billion-peso PAL scam.” Aggrieved, petitioner, filed with the National Labor Relations Commission (“NLRC”) in Manila for illegal dismissal and for reinstatement, with back wages and “fringe benefits such as Vacation leave, Sick leave, 13th month pay, Christmas Bonus, Medical Expenses, car expenses, trip pass entitlement, etc., plus moral damages of P40 Million, exemplary damages of P10 Million and reasonable attorney’s fees.”

  

Issue:

Whether or not the NLRC has jurisdiction over the illegal dismissal case in a corporation.

 

Held:

No. Labor Arbiters have no jurisdiction over termination of corporate officers and stockholders which, under the law, is considered intra-corporate dispute. It must be emphasized that a corporate officer’s dismissal is always a corporate act and/or intra-corporate controversy and that nature is not altered by the reason or wisdom which the Board of Directors may have in taking such action. The Regional Trial Courts now have jurisdiction under RA 8799(Securities Regulation Act of 2000). Jurisdiction of RTC includes adjudication of monetary claims of the corporate officer who was dismissed, such as unpaid salaries, leaves, 13th month pay, damages and attorney’s fee.