THE COMMISSIONER OF PUBLIC HIGHWAYS AND THE DISTRICT ENGINEER OF THE FIRST ENGINEERING DISTRICT OF CEBU, PETITIONERS, VS. HON. FRANCISCO P. BURGOS, IN HIS CAPACITY AS JUDGE OF T…

On June 14, 1979,
this Court received a pleading entitled Compromise Agreement.  It reads as follows: “[Come Now] the
parties in the above-captioned subject case through their respective duly
authorized incumbent officials and attorney-in-fact, assisted by their
respective counsels, and to this Honorable Supreme Court respectfully submit
the following Compromise Agreement; [Whereas], respondents former Governor Rene Espina,
former Vice-Governor and Governor Osmundo G. Rama, and former Provincial Board Members Pablo P. Garcia, Valeriano Carillo and Reynaldo M.
Mendiola, who were sued in their official capacities,
have long ceased to hold office;
[Whereas], Gov. Eduardo R. Gullas, incumbent Provincial Governor of Cebu, has been authorized by the Sangguniang
Panlalawigan to negotiate and conclude an amicable
settlement of this case; [Whereas], after a series of conferences the latest of
which was called upon the initiative of Honorable Eduardo R. Gullas, Provincial Governor of the respondent Province of Cebu, during which Gov. Gullas
pointed out the desirability of settling this case in the interest of all
parties concerned; [Whereas], the
private respondents-employees
who were duly represented by their respective counsels duly subscribe with Gov.
Gullas‘ views of the desirability of settling this
case noting that the deplorable conditions of some roads and bridges in the
Province of Cebu await much-needed funds for their
immediate repair and/or improvement, and considering, on the other hand, the
sad plight of the private respondents-employees who have been out of job since
July 1, 1968 up to the present date; [Whereas], the parties after conferring
together have agreed on all the terms and conditions of the final and complete
settlement of this case.  [Now Therefore], for and in consideration of the foregoing, the parties agree, as they hereby agree,
to enter into a Compromise Agreement in the above-captioned case under the
following terms and conditions: 1.  The
respondent Province of Cebu represented in this act
by Gov. Eduardo R. Gullas, duly authorized by proper
resolution of the Sangguniang Panlalawigan,
hereby agrees to immediately appropriate and pay full back wages and salaries
as awarded by the trial Court in its decision
to all the private respondents-employees from and after July 1, 1968,
the date of their termination, up to the date of the approval of the herein
Compromise Agreement by the Honorable Supreme Court, except for those who are
qualified for compulsory retirement whose back salaries and wages shall be
limited up to the effective date of their retirement; 2.  That
the private respondents-employees waive, as they hereby waive, their demand for
reinstatement; 3.  That private
respondents-employees who are qualified for compulsory retirement as of the
date of approval of this Compromise Agreement shall be allowed to retire in
accordance with the enlisting retirement laws with the private respondent
Province of Cebu appropriating and paying the
Government’s share of the GSIS retirement
and insurance premiums.  For
purposes of this Compromise Agreement, the services of the private
respondents-employees from July 1, 1968
shall be considered continuous and uninterrupted; 4.  That the respondent Province of Cebu agrees to pay gratuity pay and/or optional retirement benefits to private
respondents-employees qualified for optional retirement as of the date of the
approval of this Compromise Agreement, under R.A. 660, as amended, and whose
services shall likewise be deemed continuous and uninterrupted for purposes of
this Compromise Agreement provided that where the law grants an employee the
option to choose under what law he should retire, such option shall be
recognized in respect to the herein private respondents-employees; and provided
that the decision of the GSIS relative to any question of retirement shall be
final and binding; 5.  That private
respondents-employees shall be entitled to collect their accumulated sick leave
and vacation leave pay which shall be paid from JJ funds to be held in trust
for the purpose as well as benefits under the Medicare and Workmens
Compensation Act; 6.  Those private
respondents-employees who have died shall be paid back salaries and wages and
retirement benefits through their heirs up to the time of their death upon
presentation of the corresponding death certificate or other satisfactory
proof.  7.  That the petitioner Commissioner of Public
Highways (now Minister of Public Highways) and his subordinates, as well as
respondent officials and/or former officials of the Province of Cebu, are absolved of any and all personal and other civil
liabilities of whatsoever nature; 8. 
That upon approval by this Honorable Supreme Court of the herein
Compromise Agreement the writ of preliminary injunction issued by the lower
Court is deemed automatically vacated and lifted but the amounts covering the
salaries and back wages as well as those covering the retirement and insurance
premiums of respondent Province of Cebu payable to
the GSIS pertaining to the retirement of private respondents-employees
qualified to retire under paragraphs 3 and 4 hereof shall be earmarked for the
payment of said obligations and shall be held in trust by the Province for said
purposes; 9.  That the amounts payable to
the employees concerned represented by Atty. Ramon B. Ceniza
subject to said lawyer’s charging and retaining liens.  [Whereas], the Honorable Supreme Court is
most respectfully prayed to approve the foregoing Compromise Agreement and to
render judgment which shall be immediately executory in accordance therewith, without costs.  Cebu City (for Manila).”^[1]
It was signed by Provincial Governor Eduardo R. Gullas
for the Province of Cebu, Atty. Justino K. Hermosisima, counsel
for respondents Cebu
Province and its present and former
officials, by Atty. Ramon B. Ceniza, as counsel for
private respondents-employees as well as their attorney-in-fact.  Minister Baltazar Aquino expressed his conformity.  He was assisted by Assistant Solicitor
General Vicente V. Mendoza.

In a supplemental manifestation
and motion filed on June 28, 1979 by the Commissioner of Public Highways and
the Provincial Government and officials of Cebu, it was alleged that in such compromise agreement, Case No. L-49076
was included involving as it did “former laborers in the Cebu Public Highways who were in the same and identical
situation” [and that] as such compromise agreement was signed not only in Manila but in Cebu, what was submitted to this Court was
undated.  It reiterated the prayer for
its approval.

While at first, there was
an opposition to its approval by counsel for respondents, Raul H. Sesbreño, on October 31, 1979, he filed this urgent ex
parte manifestation,
which insofar as pertinent, stated: 
“That they [respondents] are, therefore, withdrawing whatever objections
they have against the approval of the compromise agreement
submitted by the Commissioner of Public Highways, thru the Honorable Solicitor
General.  It may be noted that the
compromise agreement of similar substance submitted in G. R. No. L-34843 with which these cases were ordered consolidated,
was already approved by this Superiority per its judgment dated July
5, 1979.”^[2] As he made clear, he “joins the
Honorable Solicitor General in seeking the approval of the [Compromise
Agreement] by this Superiority.”^[3]

WHEREFORE, the objection to the compromise agreement
having been withdrawn, it is approved by this Court.  Let the parties observe strictly the terms
thereof.  That is the judgment of this
Court.  No costs.

Teehankee, Barredo,
Makasiar, Antonio, Aquino,
Santos, Fernandez, Guerrero, Abad Santos, De Castro, and Melencio-Herrera,
JJ., concur.

Concepcion, Jr., J., no part.

^[1]
Compromise Agreement, 1-5.

^[2]
Urgent Ex Parte Manifestation.

^[3]
Ibid.