THE COMMISSIONER OF PUBLIC HIGHWAYS AND THE CEBU 3RD ENGINEERING DISTRICT (NOW DEFUNCT), PETITIONERS-APPELLANTS, VS. HON. GUILLERMO P. VILLASOR, JUDGE OF THE COURT OF FIRST INST…

On June 14, 1979,
this Court received a pleading entitled Compromise Agreement.  It was filed with this Court.  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 existing 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.

On June 20, 1979, Acting Solicitor General Vicente V. Mendoza,
Assistant Solicitor General Nathaniel P. de Pano,
Jr., and Atty. Ramon B. Ceniza filed the following
manifestation: “The Commissioner of Public Highways and the private
respondents, by the undersigned counsel, unto this Honorable Court respectfully
manifest:  1. That as manifested by Cebu Governor Eduardo Gullas by
telegram dated April 19, 1979, which was noted in this Court’s resolution dated
May 28, 1979, a compromise agreement had been negotiated, signed and concluded
by the parties in the above-entitled case; 2. That the compromise agreement
filed with this Honorable Court on June 14, 1979 is the same agreement referred
to in the aforesaid telegram of Governor Gullas; 3.
That the said compromise agreement is undated; 4. That the parties based in Cebu signed the same in Cebu City
on April 19, 1979, while the Commissioner of Public Highways and the
undersigned counsel signed it in Manila on June 8, 1979.  This is the reason why the said compromise
agreement does not bear a date. 
[Wherefore], it is respectfully reiterated that the said compromise
agreement filed June 14, 1979
be approved by this Honorable Court.”^[2]

WHEREFORE, let the parties observe strictly the terms of
the above compromise, embodied in this judgment of the Court.

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

Aquino, J., see concurrence.

^[1]
Compromise Agreement, 1-5.

^[2]
Manifestation dated June 20, 1979.

Clean
Clean

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