G.R. No. 67825. September 04, 1987

ELIAS C. GARCIA, PETITIONER, VS. NATIONAL LABOR RELATIONS COMMISSION, JUANITA FERNANDEZ, JULIAN AGUILA AND TITO PAGLINAWAN, RESPONDENTS.

Decisions / Signed Resolutions September 4, 1987 THIRD DIVISION FERNAN, J.:


FERNAN, J.:


Petitioner Elias C. Garcia,
an executive vice-president of
Filriters Guaranty
Assurance Corporation, challenges in this certiorari proceedings the
resolution[1] of the National Labor
Relations Commission dated March 15, 1984 which affirmed the
decision[2] of the Labor Arbiter dated
November 24, 1982,
find­ing him liable in his
personal capacity, as one of the respondents in NLRC-NCR Case No. 9-6045-82, on
private respondents’ claim for separation pay and/or
retirement benefits,
share
in the profits for the the year 1980, bonus for the year 1981, and accumu­lated
vacation leave in addition to the
retrenchment benefits they received by virtue of their having been retrenched when Filriters Guaranty Assurance Corpo­ration was placed under conservatorship pursuant to Section 248 of the Insurance Code.

The antecedent facts of the
case are undis­puted.

Filriters Guaranty Assurance Corporation [FILRITERS, for short], an insurance company with home office at the 6th
floor, Sterling Life Con­dominium, De la Rosa St., corner Esteban St., Legaspi Village, Makati, Metro
Manila, was placed under conservatorship
as a financially distressed company by the Insurance Commissioner sometime in
September 1981 pursuant to Section 248 of the In­surance Code.

On September
17, 1981
, Insurance
Commissioner Gregoria Cruz-Arnaldo
appointed Mr. Julian J. Locsin as
her representative vested with the powers of a
conservator under Section 248 of the Insurance Code.
[3] In his letter of appointment, Mr. Julian J. Locsin was likewise
informed that he was elected
as member of the Board of Directors and Chairman of the
Executive Committee of Filriters.

At the time Filriters was placed under conservatorship, Mr. Joaquin Rodriguez was the president of the company while Elias C. Garcia, petitioner here­in, was the executive
vice-president.  Private respondents
Julian Aguila and Tito Paglinawan
were the vice-presidents and Juanita Fernandez was the assist­ant vice-president.

In
carrying
out his functions as conservator, Mr. Julian J. Locsin [CONSERVATOR, for short] wrote the president of Filriters on January 11, 1982 ad­vising him that all
officers of the company, particularly the President and Executive
Vice-President, shall in proper cases see to it that the policies, orders and
instructions promulgated by the Insurance Commissioner and/or the legal
conservator are strictly implemented, which policies and orders, shall be con­sidered
to have amended and superseded any standing policy or power granted by the
board or by-laws of the corporation in favor of any officer of the company in
accordance with Section 248 of the Insurance Code.
[4]

A
retrenchment
policy was thereafter
insti­tuted by the CONSERVATOR who, in a
letter dated
January 27, 1982,[5] confirmed the guidelines that the Board of
Directors and the operating officer should consider and follow.  Thus:

“1.  The company may only allow the
retrenched employee or officer
one-half salary for every year of service; and,

”2.  The company may also allow the 13th
month pay for those receiving P1,500.00 below.”

On July 31,
1982
, private
respondents were for­mally notified of their retrenchment and termination from
the service effective as of the close of office hours on
August 6, 1982 in separate letters signed by Elias C. Garcia, executive
vice-president of
FILRITERS acting as operating officer of the CONSERVATOR.

Upon their separation from
the service and after executing identical release and waiver docu­ments,
private respondents were given their retrench­ment benefits equivalent to
fifteen [15]days salary for every year of service in accordance with the
guidelines set by the
CONSERVATOR on January 27, 1982.  Thus, Julian Aguila
received P46,000.00; Tito Pagli­nawan
P40,000.00; and Juanita Fernandez P13,600.00.

Notwithstanding acceptance
of their retrench­ment benefit checks, private respondents wrote
FIL­RITERS on August 20, 1982 demanding payment of their unenjoyed vacation leave, share in the profits for the year
1980 and bonus for the year 1981, stating therein, among others, that the
waivers of claim that they signed were made
under duress and do
not
reflect their voluntary act
and deed.
[6]

Unable to elicit a
favorable response from
FILRITERS, private respondents filed on September 21, 1982
with the then Ministry of Labor and Employment a complaint for payment of
separation pay and/or retirement benefits, share in the profits for the year
1980, bonus for the year 1981, and accumulated vaca­tion leave, naming as
respondents therein, Filriters Guaranty Assurance
Corporation and Elias C. Garcia.
[7] The case was docketed as
NLRC-NCR Case No. 9-6045-82.

Records show that FILRITERS and petitioner Elias C. Garcia did not appear
during the three [3] scheduled hearings and, as a consequence thereof, both
were deemed by the Labor Arbiter to have waived their right to present evidence
in sup­port of their stand.  On motion of
private respondents upon submission of their position paper, the case was
submitted for resolution by the Labor Arbiter on
November 22, 1982 on the basis of the documents on record.[8]

On November
24, 1982
, the Labor
Arbiter ren­dered his decision directing
FILRITERS and petitioner Elias C.
Garcia to pay the claims of private respon­dents, the dispositive
portion of which reads:

“WHEREFORE, respondents [Filriters
and E.C. Garcia] are hereby
ordered to pay herein complainants, as
follows:

“1. Julian B. Aguila …………    P30,422.15

 2. Tito
O. Paglinawan ……. 
      25,768.50

 3.
Juanita T. Fernandez…..          9,307.44

TOTAL……….       P 64,498.09

representing the
latter’s share in profits for 1980, money equivalent of accumulated vacation
leave for the last three [3] years and 13th month pay or bonus for 1981.

“SO ORDERED.” [Words in parenthesis supplied]

FILRITERS and petitioner Elias C.
Garcia filed on
December 16, 1982 a motion to re-open the case and to admit the
attached position paper and to reset the case for hearing with proper
notice.  Treated as a mo­tion for reconsideration, the
motion to re-open the case was denied by the Labor Arbiter on
December
23, 1982
.

On separate appeals, FILRITERS and petitioner Elias C. Garcia elevated the case to the National
Labor Relations Commission.

In the meantime, while the
case was pending appeal before the NLRC, the Insurance Commissioner suspended
on January 30, 1983 FILRITERS’ certificate of authority effective
February 1, 1983 in view of its consistent inability to maintain an unimpaired
paid-up capital and required margin of solvency.  A cease and desist order was issued on the
same day en­joining the company from taking any risk of any kind or character
until such time its certificate of authority is restored by the Insurance
Commission.
[9]

Following
the suspension of
FILRITERS’ certi­ficate of authority,
the services of all senior offi­cers, including that of petitioner Elias C.
  Garcia
as executive vice-president and vice-president
for finance were likewise terminated by the end of February 1983.  However, for reasons of necessity, the
CONSERVATOR retained Elias C. Garcia and Mrs. Pilar R. Jacobe on special
arrangements or terms to be deter­mined by the
CONSERVATOR.[10]

In a memorandum addressed
to petitioner Elias C. Garcia dated
February 22, 1983,[11] the CONSER­VATOR laid down the rules and
guidelines to be ob­served following the suspension of the company’s
certificate of authority.  The
CONSERVATOR likewise, formally informed petitioner that the
CONSERVATOR would enter into a new working arrangement with
him and
Mrs. Pilar R. Jacobe to handle the duties and res­ponsibilities
assigned to them by the
CONSERVATOR.

On March 15,
1984
, the National
Labor Relations
Commission issued its resolution denying the appeal and thus affirming the
decision of the Labor Arbiter dated
November 24, 1982 and the order dated December
23, 1982
.

Petitioner Elias C. Garcia
filed a motion for reconsideration
[12] pointing out, among others, that the NLRC only
passed upon the issue of whether or not private respondents are entitled to
additional re­trenchment benefits but did not rule on the issue of whether or
not he, who is neither the employer of private respondents nor
a stockholder of Filriters Guaranty Assurance Corporation, could be held
liable for the latter’s corporate liabilities as an employer of private
respondents.

On June 13,
1984
, petitioner’s
motion for re­consideration was denied for lack of merit by the NLRC.
[13]

Dissatisfied, Elias C.
Garcia instituted the instant petition for certiorari seeking the
reversal of the resolution of the NLRC dated
March 15, 1984 insofar as it holds him personally liable and praying that
he be absolved from liability on the claim of private respondents for
additional retrenchment bene­fits from Filriters
Guaranty Assurance Corporation.

After due consideration, a
temporary restraining order was issued, as prayed for, on July 9, 1984
restraining respondent National Labor Relations Commission and
its officers, agents, representatives and/or any
person or persons acting upon its orders or in its place or stead from
enforcing and executing the decision dated March 15, 1984 rendered in NLRC­-NCR
Case No. 9-6045-82 entitled “Juanita Fernandez, et. al., Complainants-Appellees, versus Filriters
Guaranty Assurance Corporation, et. al.,
Respondents-Appellants.”
[14]

Records show that Filriters Guaranty Assurance Corporation did not appeal the
NLRC decision of
March 15, 1984 to this Court. 
A party who did not appeal the decision of the NLRC is bound by its
findings of facts and cannot impugn the correctness of its judg­ment.
[15] Insofar therefore as the liability of FILRITERS is concerned, the same has
now become final although the nature and extent of
FILRITERS’ liability depend on the
resolution of the issue raised in the instant petition, i.e.:  whether or not petitioner Elias C. Garcia is
jointly and severally liable with Filriters Guaranty
Assurance Corporation for the pay­ment of private respondents’ claims for
profit sharing in 1980, bonus for 1981, and accrued vacation leave when
petitioner, as executive vice-president of FIL­
RITERS at the time it was placed under conservator­ship pursuant to Section 248 of the Insurance
Code, formally informed private respondents of their ter­mination pursuant to
the retrenchment policy undertaken by the
CONSERVATOR.

In asserting his theory of
non-liability for the corporate obligations of
FILRITERS to its re­trenched employees
as
a result
of its having been placed under conservatorship
proceedings by the Insurance Commissioner, petitioner Elias C. Garcia relies on
Section 248 of the Insurance Code
[16] which provides:

“SEC.
248.
  If at any
time
before, or after, the suspension or revocation of the certificate
of authority of an insurance company as
provided in the preceding title, the Commissioner finds that such
company is in a state of con­tinuing inability or unwillingness to maintain a
condition of solvency or li­quidity deemed adequate to protect the interest of
policyholders and creditors, he may appoint a conservator to take charge of the
assets, liabilities, and the management of such company, collect all moneys and
debts due said company and exercise all powers necessary to preserve the assets
of said company, re­organize the management thereof, and restore
viability.  The said conservator shall
have the power to overrule or revoke the actions of the previous management and
board of directors of the said company, any provision of law, or of the
articles of incorporation or by-laws of the company, to the contrary
notwithstanding, and such other powers as the Commissioner shall deem necessary.

“The
conservator may be another insurance company doing business in the
Philippines, any officer or
officers
of such company, or any other
competent and qualified person, firm or corporation.  The remuneration of the conser­vator and other expenses attendant to
the conservation shall be borne by the insurance company concerned.

“The conservator shall
not be subject to any action, claim or demand by, or liability to, any person
in respect of anything done or omitted to be done in good faith in the exercise or in connection
with the exercise, of the powers conferred on the
conservator.

“The conservator appointed shall report and be responsible to the Com­missioner until
such time as the Com­missioner
is satisfied
that the insu­rance company can continue to operate on
its own and the conservatorship
shall likewise be terminated should the Commissioner, on the basis of the report of the conservator or
of his own findings, determine that the con­
tinuance in business of the insurance company would be hazardous to policyholders and
creditors, in which case the provisions of Title 15 shall apply.”

Referring to the aforequoted Section 248 of the Insurance Code, petitioner
maintains that when FIL­RITERS
was placed
under conservatorship proceedings, the CONSERVATOR appointed by the Insurance Commis­sioner virtually
took over the management of FILRITERS, took charge of
its assets and liabilities and was authorized to collect all moneys and debts due
said company, exercise all powers necessary to preserve the assets of said company, reorganize the management
thereof, restore its viability, and over­rule or revoke the actions of the
previous manage­ment and board of directors of the said company.

Since retrenchment of
personnel
was
under­taken by the CONSERVATOR as early as January 1982, petitioner argues that he cannot be
held liable in his personal capacity for the payment of additional retrenchment benefits to the retrenched
employees benefits because he merely implemented the CONSERVATOR’S retrenchment
program and has no discretion or
choice on the matter; that the reso­lution of the NLRC results in an unjust and in­equitous
situation that
while the CONSERVATOR can­not be liable under Section 248 of the
Insurance Code,
petitioner was made liable in his personal capacity to the retrenched personnel
by the mere accident that
he was the one who formally notified them of the CONSERVATOR’S order of retrenchment; that
there is no factual nor legal
basis to hold p
etitioner personally liable as he is
neither an
employer
of
private respondents nor a stockholder of Filriters Guaranty Assurance Corporation is
himself an employee who was also retrenched but subsequently
appointed as manager-in-charge by the CONSERVATOR from March 1, 1983 to
handle duties and responsibi­lities assigned to him; that private respondents
actually received retrenchment benefits in accordance with the guidelines fixed
by the
CONSERVATOR and had executed release and waiver deeds fully
and completely releasing Filriters Guaranty Assurance
Corporation from all claims of whatever nature re­sulting from their
retrenchment.

We sustain petitioner.

At the outset, mention must
be made of the fact that in the resolution of October 1, 1984
[17] We granted the motion of the
Solicitor General
that he be excused from filing the required comment because he is unable to agree
with the decision of public respondent NLRC.

Business reverses or losses
are recognized by law
as a just cause for terminating employment.[18] Under Article 284 of the Labor Code, as amended, re­trenchment
of personnel to prevent losses can only be availed of by management if the
company is losing or meeting financial reverses.
[19] But it is essential­ly required that the
alleged losses in business ope­rations must be proved.
[20] Otherwise, said ground for termination would
be susceptible to abuse by scheming employers who might be merely feigning busi­ness
losses or reverses in their business ventures in order to ease out employees.

Conservatorship proceedings against a financially distressed
insurance company are statutory in nature and are resorted to only if and when
the Insurance Commissioner finds that such company is in a state of continuing
inability or unwillingness to maintain a condition of solvency or liquidity
deemed adequate to protect the interest of policyholders and
creditors.  In other
words, the insurance company placed under conservatorship is facing
financial dif­ficulties which require the appointment of a con­servator to take
charge of its assets, liabilities, and management aimed at preserving its
assets and restoring its viability
as a going business enter­prise.

The retrenchment of
personnel
as a consequence
of conservatorship proceedings against an insurance
company in financial difficulties is, understandably, a cost-saving measure
resorted to by the
CONSERVATOR to preserve the assets of
the company for the pro­tection not only of the policy-holders and creditors
but also of the investors and the public in gener
al.  Rightly so, for conservatorship
proceedings con­template, not the liquidation of the insurance company
involved, but a conservation of company assets and business during the period
of stress by the Commissioner of Insurance, who thereafter yields control
to the regular officers of the company.[21] The power of the Insurance Commissioner with
respect to the statutory proceedings against insolvent or delinquent insurer is
of general public concern, to which contract and property rights must yield.
[22]

Essentially, conservatorship under Section 248 of the Insurance Code is in the nature of reha­bilitation
proceedings.  As such, the
CONSERVATOR may only act with the
approval of the Insurance Commis­sioner with respect to the major aspects of re­habilitation.  With respect to the ordinary details of
administration, the
CONSERVATOR has implied authority by virtue of his appointment to proceed without the approval of the Insurance Commissioner.  He is clothed with such discretion in
conducting and managing the affairs of
the insurance company placed under his control.
[23]

It is within that sphere of
authority that a program of retrenchment was undertaken by the
CON­SERVATOR as early as January 1982.  The authority con­ferred by law upon the CONSERVATOR to reorganize the management of the insurance
company under his control embraces, among others, the authority to carry out
a retrenchment program to
prevent the further dissipation of company funds.  The general rules of agency as to the binding
effect of the acts of the company’s executive vice-president, petitioner
herein, as the operating officer of the
CONSERVATOR, would apply to the
implementation of the retrenchment program delegated to
him by the CONSERVATOR.  It was well within the scope of his delegated
authority for petitioner to formally inform private respondents of their
termination from FILRITERS. 
Thus,
merely being im­pleaded in the
complaint is no justifiable reason at all to hold petitioner personally and
severally liable with FILRITERS for the latter’s corporate
obligations to private respondents.

Verily, it is a reversible error for the NLRC to affirm the resolution of the Labor
Arbiter holding petitioner Elias C. Garcia personally and severally liable with
FILRITERS for the payment of additional retrenchment benefits to private
res­pondents.  The Labor Arbiter
inexplicably failed to disclose the reasons why petitioner Elias C. Garcia, as
one of the named respondents in NLRC-NCR-Case No. 9-6045-82, was made
personally and severally liable with FILRITERS.  Except
for the allegations of private respondents in their com­plaint that
petitioner’s act of terminating them was ULTRA VIRES in nature as
it was done without the authority and approval of the FILRITERS’ Board of
Directors, there is nothing in the decision which reasonably justify
the liability of petitioner in his
personal capacity.  Instead of correcting
said error, the
NLRC, on the other hand, did not at all touch on the
issue.

Realizing that the
appointment of a
CONSERVATOR by
the Insurance Commissioner as early as September 17, 1981 pursuant to Section
248 of the Insurance Code militates against their argument
before the Labor
Arbiter, private respondents w
ould now change their
posture and alleged that petitioner was not vested with direct or delegated
authority from the
CONSERVATOR relative
to the ter­mination of their emplo
yment.[24] This belated ar­gument
is belied by the letter
[25] dated July 24, 1982
of the
CONSERVATOR, Mr.
Julian
J. Locsin, addressed to the President of the
Filriters, Mr. Joaquin C. Rodriguez,
confirming the retrench­ment of Julian B. Aguila,
Virginia B. Aluquin, Tito O. Paglinawan
and Juanita T. Fernandez, as well
as
the
report
[26] of
the
CONSERVATOR dated July 14, 1983 to the Ministry of Labor and Employment [MOLE]
listing private respondents in No. 32 [AGUILA], No. 34, [PAGLINAWAN] and No. 35
[FERNANDEZ] among the retrenched
employees of
FILRITERS.

Even
the repeated reference by the Labor Arbiter and the NLRC to the fact that
FILRITERS and pe­titioner
waived their right to present evidence in support of their stand by virtue of
their having failed to appear during the three [3] scheduled hear­
ings[27] will
not legally sustain the conclusion that petitioner is personally and severally
liable
with
FILRITERS for the payment of the latter’s cor­porate
obligations to its retrenched employees. 
Administrative agencies exercising quasi-judicial functions are not
bound by the rigidities of tech­nical rules of procedure
[28] precisely to allow them every opportunity to
arrive at the truth of the matter in controversy.  More often than not, such policy
has given rise to abuses
on the part of the labor arbiter resulting in the deprivation of the parties’
right to due process.  The case at bar,
on the other hand, presents
a study in contrast.  In denying FILRITERS’ and petitioner’s motion to
re-open the case and to admit their position paper despite the proferred reason for their failure to appear at the
scheduled hearings, the labor arbiter relied too much on techni­calities,
thereby resulting in herein petitioner being deprived of his right to property
without due process of law
as well as of his right to the equal protection of
the law afforded to similarly situated corporate officers found acting within
the scope of their autho­rity.  It would
have been more in keeping with the mandate of Article 221 of the Labor Code had
the Labor Arbiter granted petitioner’s motion to re-open the case and admit his
position paper as no full-blown hearing was conducted by the Labor Arbiter.

Liability of corporate
officers in their personal capacities to corporate employees who were
terminated from their employment depends on whether or not the act of
termination was tainted with evident malice and bad faith.
[29] In the instant case, there is no evidence on
record which sufficiently shows that petitioner Elias C. Garcia acted in bad
faith or with malice in carrying out the retrenchment program of the
CONSERVATOR.  In
fact, the retrenchment of private respondents was confirmed in the letter dated
July 24, 1982
of the
CONSERVATOR addressed to the President of Filriters and in the report submitted by the CONSERVATOR to the Ministry of Labor and Employment on July 14,
1983
.[30]

We do not, however, quite
agree with the general proposition of petitioner that
the CONSERVA­TOR cannot be held liable as he is not subject to
any action, claim or demand by, or liability to any person under Section 248 of
the Insurance Code.  In inter­preting a
similar provision
[31] of the Insurance Code relating to the receiver
or liquidator of the insur­ance company, We held in PIONEER INSURANCE AND
SURETY CORPORATION vs. HON. FORTUN, et. al., G.R. L-44959 [April 15, 1987],
that said provision cannot be construed to prohibit suits being brought against
a receiver in his or its representative capacity, as custodian and manager of the funds and property of the person
or firm under receivership.  The Court
stated, thus:

“To do so would work
inequity and injustice upon parties with just claims against the latter and
leave them with­out remedy to pursue and recover on the claims.  Correctly read, the exempt­
ion applies only with reference to acts done or
left undone in
good faith by the receiver
in the discharge of the receivership.  It
does not apply to actions brought
upon claims against the person or property under receivership and not,
in any event, upon claim which matured before the receivership was established
.” [Underscoring supplied]

It was likewise an error
for petitioner to claim that the execution of release and waiver deeds after
private respondents actually received their re­trenchment benefits in the total
amount of P99,600.00 completely released
FILRITERS from all claims of whatever nature resulting
from their retrenchment.  The rule as
held in
MERCURY
DRUG CO., INC. vs. COURT OF INDUSTRIAL RELATIONS, 56 SCRA 694 and DE LEON
vs. NLRC, 100 SCRA 691 [1980] is that employees
who received their separation pay are not barred from contesting the legality
of their dismissal and that the acceptance of those benefits
would not amount to estoppel.  In AFPMBA, INC. vs.
AFPMBI EMPLOYEES UNION,
97 SCRA
715, this Court ruled that quitclaims and/or complete releases executed by the
employees do not estop them from pursuing their claim
arising from the unfair labor practice of the employer.

There
is then no reason to absolve FILRITERS of
its corporate
obligations to private respondents which may be satisfied from any available
funds or assets of the company under the custody and control of the
CONSERVATOR if it is still under conservatorship,
or of the Receiver/Liquidator if
it
is under receivership or liquidation.

While FILRITERS is liable for its corporate obligations to
private respondents, We rule, as earlier discussed,
that petitioner Elias C. Garcia is not liable in his personal capacity for the
payment to private respondents of their additional retrenchment benefits.

WHEREFORE, modified as above indicated, the decision of the National
Labor Relations Commission dated March 15, 1984 is affirmed with respect to the
sole liability of Filriters Guaranty Assurance
Corporation to private respondents. 
Petitioner is absolved from
liability
to private respondents. 
No costs.

SO
ORDERED.

Gutierrez, Jr.,
Feliciano, Bidin,
and
Cortes, JJ.,
concur.


[1]
Annex “J”, Petition, pp. 37-41, Rollo.

[2]
Annex “H”, Petition, pp. 25-30,
Rollo.

[3]
Annex “A”, Petition, p. 18, Rollo.

[4]
Annex “B”, Petition, p. 19, Rollo.

[5]
Annex “C”, Petition, p. 19-A, Rollo.

[6]
Annex “5”, Comment, p. 75, Rollo.

[7]
Annex “D”, Petition, p. 19-B, Rollo.

[8]
See Decision of Labor Arbiter, p. 28, Rollo.

[9]
Annex “E”, Petition, p. 20-21, Rollo.

[10]
Annex “F”, Petition, pp. 22-23,
Rollo.

[11]
Annex “G”, Petition, p. 24, Rollo.

[12]
Annex “K”, Petition, p. 42-46, Rollo.

[13]
Annex “L”, Petition, p. 47, Rollo.

[14]
pp. 50-51, Rollo.

[15]
Itogon-Suyoc Mines vs. NLRC, 117
SCRA 523 (1982).

[16]
Presidential Decree No. 612 (December 18, 1974).

[17]
p. 121, Rollo.

[18]
Columbia Development Corporation vs. Minister of Labor and Employment, 146 SCRA 421 (1986);
LVN Pictures and Workers Association vs. LVN Pictures, INC., 35 SCRA
147.

[19]
People’s Bank & Trust
Company vs. People’s Bank & Trust Company
Union, 69 SCRA 10 (1976).

[20]
National Federation of
Labor Unions (NAFLU) vs. Ople, 143 SCRA 124
(1986).

[21]
Caminetti vs. Superior Court in
and for City and
County of San Francisco, 108 P 2d 911, 914, 16 Cal
2d 838, cited in 8-A Words and Phrases 229.

[22]
Caminetti vs. Pacific Mutual Life Insur­ance Co.,
22 Cal 2d 334, 139 P 2d 908, cert den 320
US 802, 88 L ed 484, 64
S CT 428.

[23]
Lucas vs. Mfg.
Lumbermen’s Underwriters, 349 Mo 835, 163
SW 2d 750.

[24]
p. 10,
Memorandum for Private Respondents pp. 152-162, Rollo.

[25]
p. 106, Rollo.

[26]
pp.
107-110,
Rollo.

[27]
pp.
37, 39,
Rollo.

[28]
Tajonera vs. Lamoroza,
110 SCRA 438 (1981); Magdalena Estate, Inc. vs. Kapisanan
ng Manggagawa sa Magdalena
Estate, 8 SCRA 237 (1966).

[29]
Sunio vs. NLRC, 127 SCRA
390 (1984); Gene­ral Bank and Trust Co. vs. Court of Appeals, 135 SCRA
569 (1985).

[30]
See Footnote 26 and 27.

[31]
Section 251, Insurance Code.