G.R. No.

189871 August 13, 2013

DARIO NACAR, PETITIONER, vs.
GALLERY FRAMES AND/OR FELIPE ORDEY, !R., RESPONDENTS.
D E C I S I O N
PERAL"A, J.:
This is a petition for review on certiorari assailing the Decision
1
dated Septe!er "#, "$$% of the
Co&rt of 'ppeals (C') in C'*+.R. SP No. ,%-,1, and the Resol&tion
"
dated Octo!er ,, "$$, den.ing
petitioner/s otion for reconsideration.
The fact&al antecedents are &ndisp&ted.
Petitioner Dario Nacar filed a coplaint for constr&ctive disissal !efore the 'r!itration 0ranch of the
National 1a!or Relations Coission (N1RC) against respondents +aller. 2raes (+2) and3or
2elipe 0orde., 4r., doc5eted as N1RC NCR Case No. $1*$$-1,*,6.
On Octo!er 1-, 1,,%, the 1a!or 'r!iter rendered a Decision
#
in favor of petitioner and fo&nd that he
was disissed fro eplo.ent witho&t a valid or 7&st ca&se. Th&s, petitioner was awarded
!ac5wages and separation pa. in lie& of reinstateent in the ao&nt of P1-%,,1,.,". The dispositive
portion of the decision, reads8
9ith the foregoing, we find and so r&le that respondents failed to discharge the !&rden of showing
that coplainant was disissed fro eplo.ent for a 7&st or valid ca&se. 'll the ore, it is clear
fro the records that coplainant was never afforded d&e process !efore he was terinated. 's
s&ch, we are perforce constrained to grant coplainant/s pra.er for the pa.ents of separation pa.
in lie& of reinstateent to his forer position, considering the strained relationship !etween the
parties, and his apparent rel&ctance to !e reinstated, cop&ted onl. &p to pro&lgation of this
decision as follows8
SEP'R'TION P':
Date ;ired < '&g&st 1,,$
Rate < P1,%3da.
Date of Decision < '&g. 1%, 1,,%
1ength of Service < % .rs. = 1 onth
P1,%.$$ > "? da.s > % onths < P@1,1%@.$$
0'CA9'+ES
Date Disissed < 4an&ar. "@, 1,,6
Rate per da. < P1,?.$$
Date of Decisions < '&g. 1%, 1,,%
a) 13"@3,6 to "3-3,% < 1".#? os.
P1,?.$$3da. > 1".#? os. < P?",,%?.-?
!) "3?3,% to %31%3,% < ?.@ onths
Prevailing Rate per da. < P?",,%?.$$
P1,%.$$ > "? da.s > ?.@ os. < P#",,@6."$
T O T ' 1 < P,-.,##.6?
> > > >
9;ERE2ORE, preises considered, 7&dgent is here!. rendered finding respondents g&ilt. of
constr&ctive disissal and are therefore, ordered8
To pa. 7ointl. and severall. the coplainant the ao&nt of si>t.*two tho&sand nine h&ndred eight.*
si> pesos and -?31$$ (P?",,%?.-?) Pesos representing his separation pa.B
To pa. 7ointl. and severall. the coplainant the ao&nt of nine (sic) five tho&sand nine h&ndred
thirt.*three and #?31$$ (P,-,,##.#?) representing his !ac5wagesB and
'll other clais are here!. disissed for lac5 of erit.
SO ORDERED.
@
Respondents appealed to the N1RC, !&t it was disissed for lac5 of erit in the Resol&tion
-
dated
2e!r&ar. ",, "$$$. 'ccordingl., the N1RC s&stained the decision of the 1a!or 'r!iter. Respondents
filed a otion for reconsideration, !&t it was denied.
?
Dissatisfied, respondents filed a Petition for Review on Certiorari !efore the C'. On '&g&st "@, "$$$,
the C' iss&ed a Resol&tion disissing the petition. Respondents filed a Cotion for Reconsideration,
!&t it was li5ewise denied in a Resol&tion dated Ca. %, "$$1.
6
Respondents then so&ght relief !efore the S&pree Co&rt, doc5eted as +.R. No. 1-1##". 2inding no
reversi!le error on the part of the C', this Co&rt denied the petition in the Resol&tion dated 'pril 16,
"$$".
%
'n Entr. of 4&dgent was later iss&ed certif.ing that the resol&tion !ecae final and e>ec&tor. on
Ca. "6, "$$".
,
The case was, thereafter, referred !ac5 to the 1a!or 'r!iter. ' pre*e>ec&tion
conference was conseD&entl. sched&led, !&t respondents failed to appear.
1$
On Nove!er -, "$$", petitioner filed a Cotion for Correct Cop&tation, pra.ing that his !ac5wages
!e cop&ted fro the date of his disissal on 4an&ar. "@, 1,,6 &p to the finalit. of the Resol&tion of
the S&pree Co&rt on Ca. "6, "$$".
11
Epon recop&tation, the Cop&tation and E>aination Enit
of the N1RC arrived at an &pdated ao&nt in the s& of P@61,#"$.#1.
1"
On Dece!er ", "$$", a 9rit of E>ec&tion
1#
was iss&ed !. the 1a!or 'r!iter ordering the Sheriff to
collect fro respondents the total ao&nt of P@61,#"$.#1. Respondents filed a Cotion to F&ash 9rit
of E>ec&tion, arg&ing, aong other things, that since the 1a!or 'r!iter awarded separation pa.
of P?",,%?.-? and liited !ac5wages ofP,-,,##.#?, no ore recop&tation is reD&ired to !e ade
of the said awards. The. claied that after the decision !ecoes final and e>ec&tor., the sae
cannot !e altered or aended an.ore.
1@
On 4an&ar. 1#, "$$#, the 1a!or 'r!iter iss&ed an
Order
1-
den.ing the otion. Th&s, an 'lias 9rit of E>ec&tion
1?
was iss&ed on 4an&ar. 1@, "$$#.
Respondents again appealed !efore the N1RC, which on 4&ne #$, "$$# iss&ed a
Resol&tion
16
granting the appeal in favor of the respondents and ordered the recop&tation of the
7&dgent award.
On '&g&st "$, "$$#, an Entr. of 4&dgent was iss&ed declaring the Resol&tion of the N1RC to !e
final and e>ec&tor.. ConseD&entl., another pre*e>ec&tion conference was held, !&t respondents
failed to appear on tie. Ceanwhile, petitioner oved that an 'lias 9rit of E>ec&tion !e iss&ed to
enforce the earlier recop&ted 7&dgent award in the s& of P@61,#"$.#1.
1%
The records of the case were again forwarded to the Cop&tation and E>aination Enit for
recop&tation, where the 7&dgent award of petitioner was reassessed to !e in the total ao&nt of
onl. P1@6,-?$.1,.
Petitioner then oved that a writ of e>ec&tion !e iss&ed ordering respondents to pa. hi the original
ao&nt as deterined !. the 1a!or 'r!iter in his Decision dated Octo!er 1-, 1,,%, pending the final
cop&tation of his !ac5wages and separation pa..
On 4an&ar. 1@, "$$#, the 1a!or 'r!iter iss&ed an 'lias 9rit of E>ec&tion to satisf. the 7&dgent
award that was d&e to petitioner in the ao&nt of P1@6,-?$.1,, which petitioner event&all. received.
Petitioner then filed a Canifestation and Cotion pra.ing for the re*cop&tation of the onetar. award
to incl&de the appropriate interests.
1,
On Ca. 1$, "$$-, the 1a!or 'r!iter iss&ed an Order
"$
granting the otion, !&t onl. &p to the ao&nt
ofP11,@-,.6#. The 1a!or 'r!iter reasoned that it is the Octo!er 1-, 1,,% Decision that sho&ld !e
enforced considering that it was the one that !ecae final and e>ec&tor.. ;owever, the 1a!or 'r!iter
reasoned that since the decision states that the separation pa. and !ac5wages are cop&ted onl.
&p to the pro&lgation of the said decision, it is the ao&nt of P1-%,,1,.," that sho&ld !e e>ec&ted.
Th&s, since petitioner alread. receivedP1@6,-?$.1,, he is onl. entitled to the !alance of P11,@-,.6#.
Petitioner then appealed !efore the N1RC,
"1
which appeal was denied !. the N1RC in its
Resol&tion
""
dated Septe!er "6, "$$?. Petitioner filed a Cotion for Reconsideration, !&t it was
li5ewise denied in the Resol&tion
"#
dated 4an&ar. #1, "$$6.
'ggrieved, petitioner then so&ght reco&rse !efore the C', doc5eted as C'*+.R. SP No. ,%-,1.
1
On Septe!er "#, "$$%, the C' rendered a Decision
"@
den.ing the petition. The C' opined that since
petitioner no longer appealed the Octo!er 1-, 1,,% Decision of the 1a!or 'r!iter, which alread.
!ecae final and e>ec&tor., a !elated correction thereof is no longer allowed. The C' stated that
there is nothing left to !e done e>cept to enforce the said 7&dgent. ConseD&entl., it can no longer
!e odified in an. respect, e>cept to correct clerical errors or ista5es.
Petitioner filed a Cotion for Reconsideration, !&t it was denied in the Resol&tion
"-
dated Octo!er ,,
"$$,.
;ence, the petition assigning the lone error8
I 9IT; DEE RESPECT, T;E ;ONOR'01E COERT O2 'PPE'1S SERIOES1: ERRED,
COCCITTED +R'GE '0ESE O2 DISCRETION 'ND DECIDED CONTR'R: TO 1'9 IN
EP;O1DIN+ T;E FEESTIONED RESO1ETIONS O2 T;E N1RC 9;IC;, IN TERN, SEST'INED
T;E C': 1$, "$$- ORDER O2 1'0OR 'R0ITER C'+'T C'AIN+ T;E DISPOSITIGE PORTION
O2 T;E OCTO0ER 1-, 1,,% DECISION O2 1'0OR 'R0ITER 1ESTRI' SE0SERGIENT TO 'N
OPINION EHPRESSED IN T;E 0OD: O2 T;E S'CE DECISION.
"?
Petitioner arg&es that notwithstanding the fact that there was a cop&tation of !ac5wages in the
1a!or 'r!iter/s decision, the sae is not final &ntil reinstateent is ade or &ntil finalit. of the
decision, in case of an award of separation pa.. Petitioner aintains that considering that the
Octo!er 1-, 1,,% decision of the 1a!or 'r!iter did not !ecoe final and e>ec&tor. &ntil the 'pril 16,
"$$" Resol&tion of the S&pree Co&rt in +.R. No. 1-1##" was entered in the 0oo5 of Entries on
Ca. "6, "$$", the rec5oning point for the cop&tation of the !ac5wages and separation pa. sho&ld
!e on Ca. "6, "$$" and not when the decision of the 1a!or 'r!iter was rendered on Octo!er 1-,
1,,%. 2&rther, petitioner posits that he is also entitled to the pa.ent of interest fro the finalit. of
the decision &ntil f&ll pa.ent !. the respondents.
On their part, respondents assert that since onl. separation pa. and liited !ac5wages were
awarded to petitioner !. the Octo!er 1-, 1,,% decision of the 1a!or 'r!iter, no ore recop&tation
is reD&ired to !e ade of said awards. Respondents insist that since the decision clearl. stated that
the separation pa. and !ac5wages are Icop&ted onl. &p to JtheK pro&lgation of this decision,I and
considering that petitioner no longer appealed the decision, petitioner is onl. entitled to the award as
cop&ted !. the 1a!or 'r!iter in the total ao&nt ofP1-%,,1,.,". Respondents added that it was
onl. d&ring the e>ec&tion proceedings that the petitioner D&estioned the award, long after the
decision had !ecoe final and e>ec&tor.. Respondents contend that to allow the f&rther
recop&tation of the !ac5wages to !e awarded to petitioner at this point of the proceedings wo&ld
s&!stantiall. var. the decision of the 1a!or 'r!iter as it violates the r&le on i&ta!ilit. of 7&dgents.
The petition is eritorio&s.
The instant case is siilar to the case of Session Delights Ice Crea and 2ast 2oods v. Co&rt of
'ppeals (Si>th Division),
"6
wherein the iss&e s&!itted to the Co&rt for resol&tion was the propriet. of
the cop&tation of the awards ade, and whether this violated the principle of i&ta!ilit. of
7&dgent. 1i5e in the present case, it was a distinct feat&re of the 7&dgent of the 1a!or 'r!iter in the
a!ove*cited case that the decision alread. provided for the cop&tation of the pa.a!le separation
pa. and !ac5wages d&e and did not f&rther order the cop&tation of the onetar. awards &p to the
tie of the finalit. of the 7&dgent. 'lso in Session Delights, the disissed eplo.ee failed to appeal
the decision of the la!or ar!iter. The Co&rt clarified, th&s8
In concrete ters, the D&estion is whether a re*cop&tation in the co&rse of e>ec&tion of the la!or
ar!iterLs original cop&tation of the awards ade, pegged as of the tie the decision was rendered
and confired with odification !. a final C' decision, is legall. proper. The D&estion is posed, given
that the petitioner did not iediatel. pa. the awards stated in the original la!or ar!iterLs decisionB it
dela.ed pa.ent !eca&se it contin&ed with the litigation &ntil final 7&dgent at the C' level.
' so&rce of is&nderstanding in ipleenting the final decision in this case proceeds fro the wa.
the original la!or ar!iter fraed his decision. The decision consists essentiall. of two parts.
The first is that part of the decision that cannot now !e disp&ted !eca&se it has !een confired with
finalit.. This is the finding of the illegalit. of the disissal and the awards of separation pa. in lie& of
reinstateent, !ac5wages, attorne.Ls fees, and legal interests.
The second part is the cop&tation of the awards ade. On its face, the cop&tation the la!or
ar!iter ade shows that it was tie*!o&nd as can !e seen fro the fig&res &sed in the cop&tation.
This part, !eing erel. a cop&tation of what the first part of the decision esta!lished and declared,
can, !. its nat&re, !e re*cop&ted. This is the part, too, that the petitioner now posits sho&ld no
longer !e re*cop&ted !eca&se the cop&tation is alread. in the la!or ar!iterLs decision that the C'
had affired. The p&!lic and private respondents, on the other hand, posit that a re*cop&tation is
necessar. !eca&se the relief in an illegal disissal decision goes all the wa. &p to reinstateent if
reinstateent is to !e ade, or &p to the finalit. of the decision, if separation pa. is to !e given in lie&
reinstateent.
That the la!or ar!iterLs decision, at the sae tie that it fo&nd that an illegal disissal had ta5en
place, also ade a cop&tation of the award, is &nderstanda!le in light of Section #, R&le GIII of the
then N1RC R&les of Proced&re which reD&ires that a cop&tation !e ade. This Section in part
states8
JTKhe 1a!or 'r!iter of origin, in cases involving onetar. awards and at all events, as far as
practica!le, shall e!od. in an. s&ch decision or order the detailed and f&ll ao&nt awarded.
Clearl. iplied fro this original cop&tation is its c&rrenc. &p to the finalit. of the la!or ar!iterLs
decision. 's we noted a!ove, this iplication is apparent fro the ters of the cop&tation itself,
and no D&estion wo&ld have arisen had the parties terinated the case and ipleented the
decision at that point.
;owever, the petitioner disagreed with the la!or ar!iterLs findings on all co&nts * i.e., on the finding of
illegalit. as well as on all the conseD&ent awards ade. ;ence, the petitioner appealed the case to
the N1RC which, in t&rn, affired the la!or ar!iterLs decision. 0. law, the N1RC decision is final,
reviewa!le onl. !. the C' on 7&risdictional gro&nds.
The petitioner appropriatel. so&ght to n&llif. the N1RC decision on 7&risdictional gro&nds thro&gh a
tiel. filed R&le ?- petition for certiorari. The C' decision, finding that N1RC e>ceeded its a&thorit.
in affiring the pa.ent of 1#th onth pa. and indenit., lapsed to finalit. and was s&!seD&entl.
ret&rned to the la!or ar!iter of origin for e>ec&tion.
It was at this point that the present case arose. 2oc&sing on the core illegal disissal portion of the
original la!or ar!iterLs decision, the ipleenting la!or ar!iter ordered the award re*cop&tedB he
apparentl. read the fig&res originall. ordered to !e paid to !e the cop&tation d&e had the case
!een terinated and ipleented at the la!or ar!iterLs level. Th&s, the la!or ar!iter re*cop&ted the
award to incl&de the separation pa. and the !ac5wages d&e &p to the finalit. of the C' decision that
f&ll. terinated the case on the erits. Enfort&natel., the la!or ar!iterLs approved cop&tation went
!e.ond the finalit. of the C' decision (4&l. ",, "$$#) and incl&ded as well the pa.ent for awards
the final C' decision had deleted * specificall., the proportionate 1#th onth pa. and the indenit.
awards. ;ence, the C' iss&ed the decision now D&estioned in the present petition.
9e see no error in the C' decision confiring that a re*cop&tation is necessar. as it essentiall.
considered the la!or ar!iterLs original decision in accordance with its !asic coponent parts as we
disc&ssed a!ove. To reiterate, the first part contains the finding of illegalit. and its onetar.
conseD&encesB the second part is the cop&tation of the awards or onetar. conseD&ences of the
illegal disissal, cop&ted as of the tie of the la!or ar!iterLs original decision.
"%
ConseD&entl., fro the a!ove disD&isitions, &nder the ters of the decision which is so&ght to !e
e>ec&ted !. the petitioner, no essential change is ade !. a recop&tation as this step is a
necessar. conseD&ence that flows fro the nat&re of the illegalit. of disissal declared !. the 1a!or
'r!iter in that decision.
",
' recop&tation (or an original cop&tation, if no previo&s cop&tation has
!een ade) is a part of the law M specificall., 'rticle "6, of the 1a!or Code and the esta!lished
7&rispr&dence on this provision M that is read into the decision. 0. the nat&re of an illegal disissal
case, the reliefs contin&e to add &p &ntil f&ll satisfaction, as e>pressed &nder 'rticle "6, of the 1a!or
Code. The recop&tation of the conseD&ences of illegal disissal &pon e>ec&tion of the decision
does not constit&te an alteration or aendent of the final decision !eing ipleented. The illegal
disissal r&ling standsB onl. the cop&tation of onetar. conseD&ences of this disissal is affected,
and this is not a violation of the principle of i&ta!ilit. of final 7&dgents.
#$
That the ao&nt respondents shall now pa. has greatl. increased is a conseD&ence that it cannot
avoid as it is the ris5 that it ran when it contin&ed to see5 reco&rses against the 1a!or 'r!iterLs
decision. 'rticle "6, provides for the conseD&ences of illegal disissal in no &ncertain ters,
D&alified onl. !. 7&rispr&dence in its interpretation of when separation pa. in lie& of reinstateent is
allowed. 9hen that happens, the finalit. of the illegal disissal decision !ecoes the rec5oning point
instead of the reinstateent that the law decrees. In allowing separation pa., the final decision
effectivel. declares that the eplo.ent relationship ended so that separation pa. and !ac5wages
are to !e cop&ted &p to that point.
#1
2inall., anent the pa.ent of legal interest. In the landar5 case of Eastern Shipping 1ines, Inc. v.
Co&rt of 'ppeals,
#"
the Co&rt laid down the g&idelines regarding the anner of cop&ting legal
interest, to wit8
2
II. 9ith regard partic&larl. to an award of interest in the concept of act&al and copensator.
daages, the rate of interest, as well as the accr&al thereof, is iposed, as follows8
1. 9hen the o!ligation is !reached, and it consists in the pa.ent of a s& of one., i.e., a loan
or for!earance of one., the interest d&e sho&ld !e that which a. have !een stip&lated in
writing. 2&rtherore, the interest d&e shall itself earn legal interest fro the tie it is 7&diciall.
deanded. In the a!sence of stip&lation, the rate of interest shall !e 1"N per ann& to !e
cop&ted fro defa&lt, i.e., fro 7&dicial or e>tra7&dicial deand &nder and s&!7ect to the
provisions of 'rticle 11?, of the Civil Code.
". 9hen an o!ligation, not constit&ting a loan or for!earance of one., is !reached, an interest on
the ao&nt of daages awarded a. !e iposed at the discretion of the co&rt at the rate of ?N
per ann&. No interest, however, shall !e ad7&dged on &nliD&idated clais or daages e>cept
when or &ntil the deand can !e esta!lished with reasona!le certaint.. 'ccordingl., where the
deand is esta!lished with reasona!le certaint., the interest shall !egin to r&n fro the tie the
clai is ade 7&diciall. or e>tra7&diciall. ('rt. 11?,, Civil Code) !&t when s&ch certaint. cannot !e
so reasona!l. esta!lished at the tie the deand is ade, the interest shall !egin to r&n onl.
fro the date the 7&dgent of the co&rt is ade (at which tie the D&antification of daages a.
!e deeed to have !een reasona!l. ascertained). The act&al !ase for the cop&tation of legal
interest shall, in an. case, !e on the ao&nt finall. ad7&dged.
#. 9hen the 7&dgent of the co&rt awarding a s& of one. !ecoes final and e>ec&tor., the
rate of legal interest, whether the case falls &nder paragraph 1 or paragraph ", a!ove, shall !e
1"N per ann& fro s&ch finalit. &ntil its satisfaction, this interi period !eing deeed to !e !.
then an eD&ivalent to a for!earance of credit.
##
Recentl., however, the 0ang5o Sentral ng Pilipinas Conetar. 0oard (0SP*C0), in its Resol&tion No.
6,? dated Ca. 1?, "$1#, approved the aendent of Section "
#@
of Circ&lar No. ,$-, Series of 1,%"
and, accordingl., iss&ed Circ&lar No. 6,,,
#-
Series of "$1#, effective 4&l. 1, "$1#, the pertinent
portion of which reads8
The Conetar. 0oard, in its Resol&tion No. 6,? dated 1? Ca. "$1#, approved the following revisions
governing the rate of interest in the a!sence of stip&lation in loan contracts, there!. aending
Section " of Circ&lar No. ,$-, Series of 1,%"8
Section 1. The rate of interest for the loan or for!earance of an. one., goods or credits and the rate
allowed in 7&dgents, in the a!sence of an e>press contract as to s&ch rate of interest, shall !e si>
percent (?N) per ann&.
Section ". In view of the a!ove, S&!section H#$-.1
#?
of the Can&al of Reg&lations for 0an5s and
Sections @#$-F.1,
#6
@#$-S.#
#%
and @#$#P.1
#,
of the Can&al of Reg&lations for Non*0an5 2inancial
Instit&tions are here!. aended accordingl..
This Circ&lar shall ta5e effect on 1 4&l. "$1#.
Th&s, fro the foregoing, in the a!sence of an e>press stip&lation as to the rate of interest that wo&ld
govern the parties, the rate of legal interest for loans or for!earance of an. one., goods or credits
and the rate allowed in 7&dgents shall no longer !e twelve percent (1"N) per ann& * as reflected
in the case of Eastern Shipping 1ines
@$
and S&!section H#$-.1 of the Can&al of Reg&lations for
0an5s and Sections @#$-F.1, @#$-S.# and @#$#P.1 of the Can&al of Reg&lations for Non*0an5
2inancial Instit&tions, !efore its aendent !. 0SP*C0 Circ&lar No. 6,, * !&t will now !e si>
percent (?N) per ann& effective 4&l. 1, "$1#. It sho&ld !e noted, nonetheless, that the new rate
co&ld onl. !e applied prospectivel. and not retroactivel.. ConseD&entl., the twelve percent (1"N) per
ann& legal interest shall appl. onl. &ntil 4&ne #$, "$1#. Coe 4&l. 1, "$1# the new rate of si>
percent (?N) per ann& shall !e the prevailing rate of interest when applica!le.
Corollaril., in the recent case of 'dvocates for Tr&th in 1ending, Inc. and Ed&ardo 0. Olag&er v.
0ang5o Sentral Conetar. 0oard,
@1
this Co&rt affired the a&thorit. of the 0SP*C0 to set interest
rates and to iss&e and enforce Circ&lars when it r&led that Ithe 0SP*C0 a. prescri!e the a>i&
rate or rates of interest for all loans or renewals thereof or the for!earance of an. one., goods or
credits, incl&ding those for loans of low priorit. s&ch as cons&er loans, as well as s&ch loans ade
!. pawnshops, finance copanies and siilar credit instit&tions. It even a&thoriOes the 0SP*C0 to
prescri!e different a>i& rate or rates for different t.pes of !orrowings, incl&ding deposits and
deposit s&!stit&tes, or loans of financial interediaries.I
Nonetheless, with regard to those 7&dgents that have !ecoe final and e>ec&tor. prior to 4&l. 1,
"$1#, said 7&dgents shall not !e dist&r!ed and shall contin&e to !e ipleented appl.ing the rate
of interest fi>ed therein.1awp++i1
To recapit&late and for f&t&re g&idance, the g&idelines laid down in the case of Eastern Shipping
1ines
@"
are accordingl. odified to e!od. 0SP*C0 Circ&lar No. 6,,, as follows8
I. 9hen an o!ligation, regardless of its so&rce, i.e., law, contracts, D&asi*contracts, delicts or
D&asi*delicts is !reached, the contravenor can !e held lia!le for daages. The provisions &nder
Title HGIII on IDaagesI of the Civil Code govern in deterining the eas&re of recovera!le
daages.
II. 9ith regard partic&larl. to an award of interest in the concept of act&al and copensator.
daages, the rate of interest, as well as the accr&al thereof, is iposed, as follows8
9hen the o!ligation is !reached, and it consists in the pa.ent of a s& of one., i.e., a loan or
for!earance of one., the interest d&e sho&ld !e that which a. have !een stip&lated in writing.
2&rtherore, the interest d&e shall itself earn legal interest fro the tie it is 7&diciall. deanded. In
the a!sence of stip&lation, the rate of interest shall !e ?N per ann& to !e cop&ted fro defa&lt,
i.e., fro 7&dicial or e>tra7&dicial deand &nder and s&!7ect to the provisions of 'rticle 11?, of the
Civil Code.
9hen an o!ligation, not constit&ting a loan or for!earance of one., is !reached, an interest on the
ao&nt of daages awarded a. !e iposed at the discretion of the co&rt at the rate of ?N per
ann&. No interest, however, shall !e ad7&dged on &nliD&idated clais or daages, e>cept when or
&ntil the deand can !e esta!lished with reasona!le certaint.. 'ccordingl., where the deand is
esta!lished with reasona!le certaint., the interest shall !egin to r&n fro the tie the clai is ade
7&diciall. or e>tra7&diciall. ('rt. 11?,, Civil Code), !&t when s&ch certaint. cannot !e so reasona!l.
esta!lished at the tie the deand is ade, the interest shall !egin to r&n onl. fro the date the
7&dgent of the co&rt is ade (at which tie the D&antification of daages a. !e deeed to have
!een reasona!l. ascertained). The act&al !ase for the cop&tation of legal interest shall, in an.
case, !e on the ao&nt finall. ad7&dged.
9hen the 7&dgent of the co&rt awarding a s& of one. !ecoes final and e>ec&tor., the rate of
legal interest, whether the case falls &nder paragraph 1 or paragraph ", a!ove, shall !e ?N per
ann& fro s&ch finalit. &ntil its satisfaction, this interi period !eing deeed to !e !. then an
eD&ivalent to a for!earance of credit.
'nd, in addition to the a!ove, 7&dgents that have !ecoe final and e>ec&tor. prior to 4&l. 1, "$1#,
shall not !e dist&r!ed and shall contin&e to !e ipleented appl.ing the rate of interest fi>ed therein.
9;ERE2ORE, preises considered, the Decision dated Septe!er "#, "$$% of the Co&rt of
'ppeals in C'*+.R. SP No. ,%-,1, and the Resol&tion dated Octo!er ,, "$$, are REGERSED and
SET 'SIDE. Respondents are Ordered to Pa. petitioner8
(1) !ac5wages cop&ted fro the tie petitioner was illegall. disissed on 4an&ar. "@,
1,,6 &p to Ca. "6, "$$", when the Resol&tion of this Co&rt in +.R. No. 1-1##" !ecae
final and e>ec&tor.B
(") separation pa. cop&ted fro '&g&st 1,,$ &p to Ca. "6, "$$" at the rate of one
onth pa. per .ear of serviceB and
(#) interest of twelve percent (1"N) per ann& of the total onetar. awards, cop&ted
fro Ca. "6, "$$" to 4&ne #$, "$1# and si> percent (?N) per ann& fro 4&l. 1, "$1#
&ntil their f&ll satisfaction.
The 1a!or 'r!iter is here!. ORDERED to a5e another recop&tation of the total onetar. !enefits
awarded and d&e to petitioner in accordance with this Decision.
SO ORDERED.
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