Monday, March 19, 2012

Facilities Management Corporation vs. Dela Rosa [G.R. No. L-38649 March 26, 1979]

Facts: Leonardo dela Rosa sought his reinstatement. with full backwages, as well as the recovery of his overtime compensation, swing shift and graveyard shift differentials. Petitioner alleged that he was employed by respondents as, painter, houseboy and cashier. He further averred that from December, 1965 to August, 1966, inclusive, he rendered overtime services daily and that this entire period was divided into swing and graveyard shifts to which he was assigned, but he was not paid both overtime and night shift premiums despite his repeated demands from respondents. 

The petitioner, a foreign corporation domiciled outside the Philippines was ordered by CIR then to pay the unpaid overtime and premium pay. However, on certiorari, the petitioner contended that because it was domiciled outside and not doing business in Philippines, it could not be sued in the country. 

Issue: Whether or not petitioner has been doing business in the Philippines so that the service of summons upon its agent in the Philippines vested the Court of First Instance of Manila with jurisdiction. 

Held: Yes, the object of Sections 68 and 69 of the Corporation Law was not to prevent the foreign corporation from performing single acts, but to prevent it from acquiring a domicile for the purpose of business without taking the steps necessary to render it amenable to suit in the local courts. It was never the purpose of the Legislature to exclude a foreign corporation which happens to obtain an isolated order for business from the Philippines, from securing redress in the Philippine courts. 

Indeed, if a foreign corporation, not engaged in business in the Philippines, is not banned from seeking redress from courts in the Philippines, a fortiori, that same corporation cannot claim exemption from being sued in Philippine courts for acts done against a person or persons in the Philippines. 




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