Source: http://lawlibrary.chanrobles.com/index.php?option=com_content&view=article&id=82603:gr-183860-2014&catid=1579&Itemid=566
Timestamp: 2019-04-19 10:37:14+00:00

Document:
G.R. No. 183860, January 15, 2014 - RODOLFO LABORTE and PHILIPPINE TOURISM AUTHORITY, Petitioners, v. PAGSANJAN TOURISM CONSUMERS COOPERATIVE and LELIZA S. FABRICIO, WILLIAM BASCO, FELICIANO BASCO, FREDIE BASCO, ROGER MORAL NIDA ABARQUEZ, FLORANTE MUNAR, MARY JAVIER, MARIANO PELAGIO ALEX EQUIZ, ALEX PELAGIO ARNOLD OBIEN, EDELMIRO ABAQUIN, ARCEDO MUNAR, LIBRADO MALIWANAG, OSCAR LIWAG, OSCAR ABARQUEZ, JOEL BALAGUER, LIZARDO MUNAR, ARMANDO PANCHACOLA, MANUEL SAYCO, EDWIN MATIBAG, ARNEL VILLAGRACIA, RODOLFO LERON, ALFONSO ABANILLA, SONNY LAVA, AND DENNIS BASCO, Respondents.
RODOLFO LABORTE and PHILIPPINE TOURISM AUTHORITY, Petitioners, v. PAGSANJAN TOURISM CONSUMERS COOPERATIVE and LELIZA S. FABRICIO, WILLIAM BASCO, FELICIANO BASCO, FREDIE BASCO, ROGER MORAL NIDA ABARQUEZ, FLORANTE MUNAR, MARY JAVIER, MARIANO PELAGIO ALEX EQUIZ, ALEX PELAGIO ARNOLD OBIEN, EDELMIRO ABAQUIN, ARCEDO MUNAR, LIBRADO MALIWANAG, OSCAR LIWAG, OSCAR ABARQUEZ, JOEL BALAGUER, LIZARDO MUNAR, ARMANDO PANCHACOLA, MANUEL SAYCO, EDWIN MATIBAG, ARNEL VILLAGRACIA, RODOLFO LERON, ALFONSO ABANILLA, SONNY LAVA, AND DENNIS BASCO, Respondents.
(b) the CA Resolution4 dated July 23, 2008, denying the subsequent Motion for Reconsideration5 thereof.
Petitioner Philippine Tourism Authority (PTA) is a government-owned and controlled corporation that administers tourism zones as mandated by Presidential Decree (P.D.) No. 564 and later amended by P.D. No. 1400. PTA used to operate the Philippine Gorge Tourist Zone (PGTZ) Administration Complex (PTA Complex), a declared tourist zone in Pagsanjan, Laguna.
Respondent Pagsanjan Tourism Consumers’ Cooperative (PTCC) is a cooperative organized since 1988 under Republic Act No. 6938, or the "Cooperative Code of the Philippines." The other individual respondents are PTCC employees, consisting of restaurant staff and boatmen at the PTA Complex.
In 1993, the PTA implemented a reorganization and reshuffling in its top level management. Herein petitioner Rodolfo Laborte (Laborte) was designated as Area Manager, CALABARZON area with direct supervision over the PTA Complex and other entities at the Southern Luzon.
3. The sum of P25,000.00 as attorney's fees.
Attorney’s fees in the amount of P992,940.00 or 25% of the total claim of the intervenors.
THE HONORABLE COURT OF APPEALS GRAVELY ERRED IN NOT GIVING DUE COURSE [TO] THE PETITIONERS APPEAL AND IN NOT SETTING ASIDE AND REVERSING THE DECISION OF THE TRIAL COURT.
THE HONORABLE COURT OF APPEALS GRAVELY ERRED IN FINDING THAT THE CLOSURE OF PTCC'S RESTAURANT AND BOAT RIDE BUSINESS WAS NOT A VALID AND LAWFUL EXERCISE OF PTA'S MANAGEMENT PREROGATIVE.
A) PETITIONER LABORTE, IN HIS CAPACITY AS ACTING RESIDENT MANAGER OF PGTZ, MERELY COMPLIED IN GOOD FAITH, WITH THE VALID AND LAWFUL ORDERS OF THE TOP MANAGEMENT OF PTA TO NOTIFY RESPONDENT PTCC TO CEASE BUSINESS OPERATIONS AT THE COMPLEX IN VIEW OF THE INTENDED RENOVATION AND REPAIR OF THE RESTAURANT FACILITY AT THE COMPLEX.
Anent the procedural issue raised, both the trial court and the CA faulted the petitioners for their failure to formally offer their evidence inspite of the ample opportunity granted to do so.28 Thus, such lapse allegedly militated against the petitioners whose assertions were otherwise supported by sufficient evidence on record.
Sec. 34. Offer of Evidence.–The Court shall consider no evidence which has not been formally offered. The purpose for which the evidence is offered must be specified.
Undeniably, these pertinent evidence were also found in the records of the RTC, i.e. : (a) the letter informing the Chairman of PTCC about the decision of PTA main office regarding the repair works to be conducted;50 (b) Office Order No. 1018-93 from a person named Mr. Anota, relative to the suspension of the boat ride services at the Complex;51 (c) the letter to PTCC informing it of the repair at the Complex;52 (d) the certificates of availability of funds for the guesthouse of the PTC Complex and for the repainting, repair works at the Pagsanjan Administration Complex respectively;53 (e) the program of works dated July 22, 1993 for the renovation of the Pagsanjan Complex and of the swimming pool at the guesthouse respectively;54 (f) the program of works referring to the repainting and repair works at the Complex dated August 6, 1993;55 and (g) a memorandum from Mr. Oscar Anota, Deputy General Manager for Operation of the PTA, dated December 8, 1993 addressed to the security office of the Pagsanjan Administration Complex, instructing the same not to allow the entry of anything without clearance from the main office in Manila into the Pagsanjan Complex.56 In all these, the respondents had all the chance to object to the documents which Laborte properly identified and marked and which are found in the records of the trial court. Considering that no objections were made by the respondents to the foregoing documents, the Court sees no reason why these documents should not be admitted.
The Court notes the CA’s ruling that the closure of the business is a factual matter which need not be reviewed by the Court under Rule 45. The Court has consistently held that as a general rule, a petition for review under Rule 45 of the Rules of Court covers questions of law only. The rule, however, admits of exceptions, subject to the following exceptions, to wit: (1) when the findings are grounded entirely on speculations, surmises, or conjectures; (2) when the inference made is manifestly mistaken, absurd, or impossible; (3) when there is a grave abuse of discretion; (4) when the judgment is based on misappreciation of facts; (5) when the findings of fact are conflicting; (6) when in making its findings, the same are contrary to the admissions of both appellant and appellee; (7) when the findings are contrary to those of the trial court; (8) when the findings are conclusions without citation of specific evidence on which they are based; (9) when the facts set forth in the petition as well as in the petitioner’s main and reply briefs are not disputed by the respondent; and (10) when the findings of fact are premised on the supposed absence of evidence and contradicted by the evidence on record.57 After a careful review and based on the evidence on record, the Court finds cogent reason to deviate from the general rule, warranting a reversal of the decision of the CA.
The PTA is a government owned and controlled corporation which was mandated to administer tourism zones. Based on this mandate, it was the PTA’s obligation to adopt a comprehensive program and project to rehabilitate and upgrade the facilities of the PTA Complex as shown in Annexes "H-2" to "H-4" of the petition. The Court finds that there was indeed a renovation of the Pagsanjan Administration Complex which was sanctioned by the PTA main office; and such renovation was done in good faith in performance of its mandated duties as tourism administrator. In the exercise of its management prerogative to determine what is best for the said agency, the PTA had the right to terminate at any moment the PTCC’s operations of the restaurant and the boat ride services since the PTCC has no contract, concession or franchise from the PTA to operate the above-mentioned businesses. As shown by the records, the operation of the restaurant and the boat ride services was merely tolerated, in order to extend financial assistance to its PTA employee-members who are members of the then fledging PTCC.
Except for receipts for rents paid by the PTCC to the PTA, the respondents failed to show any contract, concession agreement or franchise to operate the restaurant and boat ride services. In fact, the PTCC initially did not implead the PTA in its Complaint since it was well aware that there was no contract executed between the PTCC and the PTA. While the PTCC has been operating the restaurant and boat ride services for almost ten (10) years until its closure, the same was by mere tolerance of the PTA.67 In the consolidated case of Phil. Ports Authority v. Pier 8 Arrastre & Stevedoring Services, Inc.,68 the Court upheld the authority of government agencies to terminate at any time hold-over permits.69 Thus, considering that the PTCC’s operation of the restaurant and the boat ride services was by mere tolerance, the PTA can, at any time, terminate such operation.
The Court disagrees. The records disclose that sufficient notice was given by the PTA for the respondents to vacate the area. The Sheriff’s Report dated January 19, 1994, alleging that there were, in fact, no repairs and rehabilitation undertaken in the area at the time of inspection cannot be given weight. It must be noted that the RTC had issued on November 11, 1993 a TRO enjoining the petitioners from pursuing its actions. Thus, the absence of any business activity in the premises is even proof of the petitioner’s compliance to the order of the trial court. Furthermore, the Sheriff’s Report was executed only about a month after the announced construction or development; thus, it cannot be expected that the petitioners would immediately go full-blast in the implementation of the repair and renovation.
As to the alleged engagement of the services of a new restaurant operator, the Court agrees with the petitioners that the engagement of New Selecta Restaurant was temporary and due only to the requests of the guests who needed catering services for the duration of their stay. The evidence offered by the respondents which were receipts issued to New Selecta Restaurant on different dates even emphasize this point.72 From the foregoing, the Court concludes that the engagement of New Selecta Restaurant is not continuous but on contingency basis only.
With respect to Laborte's liability in his official and personal capacity, the Court finds that Laborte was simply implementing the lawful order of the PTA Management. As a general rule the officer cannot be held personally liable with the corporation, whether civilly or otherwise, for the consequences of his acts, if acted for and in behalf of the corporation, within the scope of his authority and in good faith.73 Furthermore, the Court also notes that the charges against petitioners Laborte and the PTA for grave coercion and for the violation of R.A. 671374 have all been dismissed.75 Thus, the Court finds no basis to hold petitioner Laborte liable.
Likewise, the award of damages to the respondents and respondents-intervenors is without basis. Absent a contract between the PTCC and the PTA, and considering further that the respondents were adequately notified to properly vacate the PTA Complex, the Court finds no justifiable reason to award any damages. Neither may the respondents-intervenors claim damages since the act directed against the PTCC was a lawful exercise of the PTA's management prerogative. While it is true that the exercise of management prerogative is a recognized right of a corporate entity, it can not be gainsaid that the exercise of such right must be tempered with justice, honesty, good faith76 and a careful regard of other party's rights. In the instant case, there is ample evidence to show that the petitioners were able to observe the same.
WHEREFORE, the petit10n is GRANTED. The Decision dated May 29, 2008 and the Resolution dated July 23, 2008 of the Court of Appeals are VACATED. The Amended Complaint and the Complaint-in-Intervention filed by the Respondents in the Regional Trial Court, Branch 28, Sta. Cruz, Laguna in Civil Case No. SC-3150 are DISMISSED.
2 Penned by Associate Justice Fernanda Lampas Peralta, with Associate Justices Edgardo P. Cruz and Marlene G. Sison, concurring; id. at 42-61.
6 Id. at 43-44, 14-15, 91; TSN, November 25, 1993, pp. 24-26, TSN, June 6, 1996, pp. 12-14, and TSN, October 4, 1996, p. 17.
11 Id. at 45, 114.
14 Id. at 118-119, 122-123.
22 Id. at pp. 184.
29 Westmont Investment Corporation v. Amos P. Francia, Jr., et al., G.R. No. 194128, December 7, 2011, 661 SCRA 787, 800.
30 Ahag v. Cabiling, 18 Phil. 415 (1911); Chua v. Court of Appeals, G.R. No. 88383, February 19, 1992, 206 SCRA 339, 346.
31 258-A Phil. 994 (1989).
32 191 Phil. 72 (1981).
33 G.R. No. 152866, October 6, 2010, 632 SCRA 236.
35 116 Phil. 977 (1962).
37 BLACK’S LAW DICTIONARY, 8th Edition, p. 761.
38 People v. Maximo Ramos y San Diego, 417 Phil. 807, 815 (2001).
39 TSN, August 28, 1998, pp. 45-47; records, pp. 402, 432; Folder of Exhibits, Exhibit "C," p. 13.
40 TSN, August 28, 1998, p. 49; records, pp. 198, 429.
41 TSN, August 28, 1998, p. 54.
42 TSN, November 23, 1998, p. 2; records, pp. 38, 42.
43 TSN, November 23, 1998, pp. 3-4; records, pp. 47, 50.
44 TSN, November 23, 1998, p. 4; records, pp. 44-46.
45 TSN, November 23, 1998, pp. 4-5; records, pp. 48-49.
46 TSN, November 23, 1998, pp. 5-6.
47 TSN, November 23, 1998, pp. 7-8.
48 TSN, November 23, 1998, pp. 8-9; records, pp. 196, 431.
49 TSN, November 23, 1998, pp. 9-10.
50 TSN, August 28, 1998, pp. 45-47; records, pp. 402, 432; Folder of Exhibits, Exhibit "C," p. 13.
51 TSN, August 28, 1998, p. 49; records, pp. 198, 429.
52 TSN, November 23, 1998, p. 2; records, pp. 38, 42.
53 TSN, November 23, 1998, pp. 3-4; records, pp. 47, 50.
54 TSN, November 23, 1998, p. 4; records, pp. 44-46.
55 TSN, November 23, 1998, pp. 4-5; records, pp. 48-49.
56 TSN, November 23, 1998, pp. 8-9; records, pp. 196, 431.
57 Vitarich Corporation v. Losin, G.R. No. 181560, November 15, 2010, 634 SCRA 671, 682.
63 Mendoza v. Rural Bank of Lucban, G.R. No. 155421, July 7, 2004, 433 SCRA 756.
67 Id. at 52-53, 178.
68 512 Phil. 74 (2005).
72 Folder of Exhibits, Exhibits P, P-1 to P-3 , pp. 47-50.
73 Francisco v. Mejia, 415 Phil. 153, 166 (2001).
74 An Act Establishing a Code of Conduct and Ethical Standards for Public Officials and Employees.
75 Rollo, pp. 31-32; 213-220.
76 CIVIL CODE, Article 19.

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