G.R. No. 216635. June 03, 2019 (Case Brief / Digest)

### Title:
**Loreche-Amit v. Cagayan De Oro Medical Center, Inc. et al.**

### Facts:
Dr. Mary Jean P. Loreche-Amit, the petitioner, began working with Cagayan De Oro Medical Center, Inc. (CDMC) in May 1996 as Associate Pathologist and was subsequently appointed as Chief Pathologist by CDMC’s Board of Directors after the death of her predecessor. This appointment was set to last until May 15, 2011. On June 13, 2007, CDMC rescinded her appointment as Chief Pathologist, leading Dr. Loreche-Amit to file a complaint for illegal dismissal, attributing the action to professional rivalry and disagreements with other doctors at the hospital.

The Labor Arbiter dismissed the complaint for lack of jurisdiction, citing Dr. Loreche-Amit’s role as a corporate officer, thus placing the matter outside the labor tribunal’s jurisdiction. This decision was affirmed by the National Labor Relations Commission (NLRC) and subsequently by the Court of Appeals (CA), both ruling that the dispute constituted an intra-corporate matter.

Dr. Loreche-Amit elevated the case to the Supreme Court via a Petition for Review on Certiorari, challenging the lower courts’ jurisdictional findings and asserting that her dismissal was illegal.

### Issues:
The core issue revolves around whether the labor tribunals have jurisdiction over Dr. Loreche-Amit’s complaint for illegal dismissal.

### Court’s Decision:
The Supreme Court partly granted Dr. Loreche-Amit’s petition, finding that she was not a corporate officer because her position was not enumerated in CDMC’s by-laws or in the Corporation Code, thus disputing the lower courts’ jurisdictional basis. However, it further examined whether an employer-employee relationship existed by applying a four-fold test and an economic reality test. The Court concluded that Dr. Loreche-Amit had significant control over her work and was not economically dependent on CDMC, thus no employer-employee relationship existed. Consequently, her dismissal complaint was not considered viable under labor law jurisdictions.

### Doctrine:
The case clarified that for an individual to be classified as a corporate officer, the position must be explicitly defined in the corporation’s by-laws or in the Corporation Code. Moreover, it reiterated the importance of the four-fold and economic reality tests in determining the existence of an employer-employee relationship.

### Class Notes:
Key elements for consideration include:
– **Corporate Officer Definition**: A position must be explicitly provided for in the by-laws of the corporation or in the Corporation Code to be considered a corporate officer role.
– **Employer-Employee Relationship Tests**: The four-fold test (covering the selection and engagement of the employee, the payment of wages, the power of dismissal, and the power of control over the employee’s conduct) and the economic reality test (examining the economic dependency of the worker on the employer) are crucial in determining the existence of such a relationship.
– **Jurisdiction over Employment Disputes**: The determination of whether a dispute falls within the jurisdiction of labor tribunals hinges on the presence of an employer-employee relationship and the classification of the positions involved.

### Historical Background:
The case highlights the complex interface between corporate governance and labor law in determining jurisdiction over disputes involving high-ranking corporate positions. It illustrates the evolving legal interpretations in the Philippines on matters of corporate office and employment, particularly in specialized professional roles within corporate structures.


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Post
Filter
Apply Filters