Thursday, January 22, 2009

Lapanday Agricultural Development Corporation v. Court of Appeals [324 SCRA 39, January 31, 2000]



FACTS:
Commando Security Service Agency provided security guards to Lapanday Agricultural Development Corporation under a contract of service. Subsequently, a wage order was issued, with the stipulation that the increase in wages for security services would be borne by the client/principal, in this case Lapanday. The latter refused to amend the contract to conform to the wage order, and the said contract ran through its natural life and expired, without the required adjustments having been made. The security agency then filed a case for the collection of a sum of money with the regional Trial Court that had jurisdiction over the case. Lapanday opposed, stating the NLRC was the proper forum for the case.



ISSUE:
Where is the proper venue of the case, the RTC or the NLRC?



HELD:
The RTC. There was no employer-employee relationship in this case, since Commando simply sought to collect a sum of money and damages for breach of contract. The service contract had long since expired. Hence, reference must be made to the Civil, not Labor Code.

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